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88- 104449 ADJUSTABLE RATE RIDER (1 Year Treasury Index-Rale Caps-Fixed Rale Conversion Oplion) -' THIS ADJUSTABLE RATE RIDER is made this 12th day of August 19 89 , and is incorporated into and shall be deemed to amend and supplemenl the Mortgage, Deed of Trust or Security Deed (Ihe "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Central Mortgage Corporation (lhe "Lender") of the same date and covering Ihe property described in the Security Instrumenl and located at: 4222 Lariat Court, Grand Island, NE 68803 (ProperlY Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE RATE TO A FIXED RATE. ADDITIONAL COVENANTS. ]n addition to Ihe covenants and agreemems made in the Security Inslrumem. Borrower and Lender further covenam and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 6. 75 in the adjustable imerest rate and the momhly payments. as follows: %. The NOIe provides for changes 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES IA) Change Dales The !!djustable interest rale I will pay may change on the firsl day of September 19 89 ,and on that day every 12th month thereafter. Each date on which my adjuslable imerest rate could change is called a "Change Dale." IB) Tbe Index Beginning with the first Change Date. my adjustable inlerest rate will be based on an Index. The "Index" is the weekly average yield on United Slales Treasury securilies adjusted to a constant maturity of I year. as made available by the Federal Reserve Board. The most recem Index figure available as of the dale 45 days before each Change Date is called Ihe "Currem Index." If the Index is no longer available. the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me nOlice of this choice. (C) Cakulallon of Chanlel Before each Change Date. the NOIe Holder will calculate my new inleresl rale by adding Two and Seventy- five hundredths percemage poimsl 2.75 'lO) to the Currenllndex. The Note Ho]der will then round the result of this addition to the nearesl one-cighlh of one percenlage poinl (0.] 2S 'lO). Subject to the limits Slated in Section 4(0) below. this rounded amounl will be my new interest rate until lhe nexl Change Date. The Note Holder willlhen delermine the amoum of the monthly paymem Ihat would be sufficient 10 repay the unpaid principal thaI I am expected to owe allhe Change Date in full on the malurilY date al my new imerest rate in substantially equal payments. The result of this calculation will be lhe new amoum of my monthly paymenl. (D) UmUs on Inlerest Rale Cba"les The imerest rate I am required 10 pay at the first Change Dale will nol be grealer Ihan 8.75 % or less than 4.75 %. Thereafter, my adjuslable interesl rate will never be increased or decreased on any single Change Dale by more than two percemage poims 12.0%) from the rale of imerest ] have been paying for Ihe preceding 12 monlhs. My interest rale will never be gfealer than 13.75 %. which is called the "Maximum Rate". IE) Eff..,llve Dale of Changes My new interesl rale will become effective on each Change Dale. I will pay Ihe amount of my new monthly payment beginning on Ihe firS! monthly payment date after the Change Date untillhe amount of my monthly paymem changes again. (F) Nolice of Changes The NOle Holder will deliver or mail to me a notiee of any changes in my adjustable interest rate and the amount army monthly payment before the effective date of any change, The nmice \\'ill include information required by law to be given me and also the title and telephone number of a per..on \\'ho "'ill an!oo\ltcr any question I may have regarding lhe notice. B. FIXED INTEREST RATE OPTION The Note provides for the Borrower's option to convert from an adjustable interest rale with interest rate limits to a fixed imerest rate. as follows: 5. FIXED INTEREST RATE CONVERSION OPTION IA) Option to Converl 10 Fixed Rate I have a Conversion Oplion Ihat I can exercise unless I am in default or Ihis Seclion 5(A) will not permil me io do so. The ltConversion Option" is my option to convert the interest rate I am required to pay by lhis NOLe from an adjustable rate with interest ratC' limits 1'0 the fi1.;cd rate calculated under Section 5(B) belo\\', The conversion can only take place on a datc(sJ spc:cificd by the NOH: Holder during Ihr prriod hrginning nn Ihe first Change Dale and ending on the fifth Change Date. Each date on which my adjustable mlcrC!.1 rail.' l',H1 L'nO\crt to the new fixed rate is called the "Conversion Dale:' MULTISTATE ADJUSTABLE RATE RIDER-ARM PLAN 57-Sjngt~ Family Fannie Mae Unlformlnstrumenl CCI?... .84SA 11l71]1 liMP Mo~nGAGI ~ORMS . ,JI.!,}!!] HIO(,. IiDO'~:'l 1;'4 Form 3119 12/87