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<br />ADJUST ABLE RATE RIDER
<br />(I Year Treasury Index-Rate Cllps-Fi:Iled Rate Conversion Option)
<br />
<br />88-104163
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<br />THIS ADJUSTABLE RATE RIDER is made this 29th day of August
<br />19 88 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust
<br />or Security Deed (the "Security Instrument ") of the same date given by the undersigned (the "Borrower") to secure
<br />Borrower's Adjustable R~te Note (t~e "Note") to
<br />Central Mortgage Corporation (the "Lender") of the
<br />same date and covering the property described in the Security Instrument and located at:
<br />
<br />4355 Cambridge, Grand Island, Nebraska 68803
<br />
<br />[Property Addr.,,'
<br />
<br />THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE
<br />AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S
<br />ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM
<br />RATE THE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CONVERT
<br />THE ADJUSTABLE RATE TO A FIXED RATE.
<br />
<br />ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument,
<br />Borrower and lender further covenant and agree a~ follows:
<br />
<br />A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES
<br />The Note provides for an initial interest rale of 7.75
<br />in the adjustable interest rate and the monthly payments, as follows:
<br />
<br />4. ADJUSTABI.E INTER..:ST RATE AND MONTHt\' PAYMENT CHAN(jES
<br />
<br />Wo. The Note provides for changes
<br />
<br />(A) Cb.nlle Oatn
<br />The adjustable interesl rate I will pay may change on the first day of August
<br />19 89, and on that day every 12th month thereafter. Each date on which my adjustable interesl rale could change
<br />is caUed a "Change Date."
<br />
<br />(B) The Index
<br />Beginning with the first Change Datt:, my adjustablt: intep:st ratt: will be bast:d on an Index. The "Indt:x" is tht:
<br />weekly average yield on United State~ Treasury set:urities adjustt:d 10 a constant Illaturity of I year, as made available
<br />by the Federal Reserve Board. The mmt recent Index rigurt: available a, of Ihe dalt: 45 days before each Change Date
<br />is called the "Currenl Index."
<br />If the Index is no longer available, the Note Holder will chome a ne" index whidl is based upon comparable
<br />informalion, The Note Holder will give me notice of this choice.
<br />
<br />(C) Calculation of CbaDln
<br />Before each Change Date, the Note Holder will calculate my new inleresl rale by adding two and seventy-
<br />five hundredths percentage points ( 2. 75 qr.lto the Current Index.
<br />The Note Holder will then round the result of this addition 10 the nearest one-eighth of one percentage point (0.125%).
<br />Subject to the limits stated in Section 4(0) below, this rounded amount will be my new interes[ rate until the next
<br />Change Date.
<br />The Note Holder will then determine lhe amount of Ihe monthly payment that would be sufficient to repay the
<br />unpaid principal thai I am expected 10 owe at the Change Date in full 011 the maturily date al my new interest rate
<br />in subslantially equal payments. The result of this calculation will be lhe new amount of my monthly payment.
<br />(0) Limits OD Interest Rate Cbanlles
<br />The interesl rate I am required 10 pa~' al the 11m Change Date willllot be grealer than 9.75 Oh
<br />or less lhan 5.75 %. Thereafter, my adjustable inter<.'sl rme will nc\'cr be increased or decreased
<br />on any single: Change Date by more lhan lwO percentage poims (2.0%) from the rale of interest I have been pa~'in/,!
<br />for rhc preceding 12 months. My imere,( fllle will never be grealer than 13.75 %. which is called
<br />the "Maximum Rate".
<br />(EI Effc:ctivc: Dille: of ChanlCC:s
<br />My new inlerest rale will become effecti\-e on each Change Dale. I will pay thc amoullIof my nc\\ mOlllhly paymclII
<br />beginning on the first monthly paymem dale after Ihl' Change Date untillhe arnounlof my mOlllhly paymcnt dlanl!l"
<br />again.
<br />((0') Notlre of Cbanltes
<br />The Note Holder will deliver or mail 10 me a nlllice of any change, in lilY adju-rahll' 'J1ICrl'" rail' and Ihl' ;1I110llJII
<br />of my monthl)' payment before Ihe dfeclivc datc of any change Thc nOlin' 11111 HlduJl'lllfllllllall'1I1Il'<jUHl'J b\ la\\
<br />10 be given me and also lhe tille and telephone number of a per""l \\ 11\1 \\ ill an-\\l" any <jUl"tlllll I ma\ ha\ l' 'l'garJlI1g
<br />lhe notice.
<br />B. nXEU INn:REST RATE OPTION
<br />
<br />The NOle provides for the Borrower', opliolllO convcrt from an adjuslable tlllerl',t ..lie with illll'Il"t ratl'hlll'!'
<br />III a fixed imeresl rate, as follows:
<br />
<br />~. nXt:[) INn:REST RAn: CONVI-:RSION OPTION
<br />IAI Option to COllvert III "'Iud Ratr
<br />I have a Cmwl'rsion Option Ihat I can exercise IInles, I alll in dl'fauh or 1111, Sl't'lIon 'ic" I \\111 1\0' P<"11\1I Ill\'
<br />to do SQ, The "Con.t:rsion Option" is my "ptlon to n)f1\,ert lhl' inll'reSI lale I al1\ rrljulrrJto pay b\ Ih" """1'- III.m
<br />an aJlu'lahlc ralc wilh illlere" rate limit~ to the fj\eJ rule eakuhueJ IInder S""'I<1I1 ~lnl !>dlm
<br />The l'(ln"~"'lHl ran nlll~ lake pluel' nil a datels) ,pedficJ hy lhl' Nnle HnIJ,,, dllllng flI<' pl'lIn.! ht'~II1llll1~ _'1\
<br />,hl' 11f" Chang~ DUll' Illlt! endlllg 011 I he fifth Chull!ll' Dale. Fadl dull' nIl \\ 111.11 1111 ad 1"'1 ahk III1"'l"1 I all' "Ill ,,'11'1"[
<br />In Ihl' Ill'\\ Il\rJ rate" ,-alkJ thl' "Coll\el,ioll Dale"
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<br />MUl tlSTATf Af)JUSTA8LE RATE RIDER ARM PLAN 51 SIl\UI,. ~ "tll,l~ Fnnnto M.e Uniform In,nunnu\!
<br />~..84!Jt. et,AI't,,'l!1"'.t.I.I',IIf,.",6 "I _"",". _1_,'
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<br />I 111m 1 1 111 '.' f1 ~
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