88104565 - Laserfiche WebLink

Browse

BB- 104565 For use only with an Adjustable Rate Hortgage, Deed of Trust or Security Deed insured under section 203(b), 203(k) (first lien only) or 234(c)of the National Housing Act, using the Hargin method. ADJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIDER is made this ~ day of AURust , 1988 , and is incorporated into and shall be deemed to amend and supplement the Hortgage:-- Deed of Trust or Security Deed ("Hortgage"), of even date herewith, given by the undersigned ("Hortgagor") to secure Hortgagor's Adjustable Rate Note ("Note"), of eVen date herewith,to Central Mart2a2e Corooration ("Mortgagee"), covering the premises described in the Mortgage and located at 217 Holcomb. Grand Island. Nebraska 68801 Notwithstanding anything to the contrary set forth in the Mortgage, Mort~gor and Ho~tgagee her.eby agree to the following: I. Under the Note, the initial stated interest rate of Eight and one-half per centum ( 8.50 %) per annum ("Initial Interest Rate") on the unpaid principal balance is subject to change, as hereinafter described. When the interest rate changes, the equal monthly installments of principal and interest also will be ad- justed, as hereinafter provided, so that each installment will be in an amount nec- essary to fully amortize the unpaid principal balance of the Note, at the new ad- jlJsted interest rate, over the remaining term of the Note. 2. The first adjustment to the interest rate (if any adjustment is required) ",j II be effective on the first day of January , 19.J!Q.... (which date will not be less than twelve months nor more than eighteen months from the due date of the first installment payment under the Note), and thereafter 2ach adjustment to the interest rate will be made effective on that day of each succeeding year during the term of the Hortgage ("Change Date"). 3. Each adjustment to the interest rate will be made based upon the following method of employing the weekly average yield on United States Treasury Securities adjusted to a constant maturity of one year ("Index"; the Index is published in the Federal Reserve Bulletin and made available by the United States Treasury Department in Statistical Release H.15(519)). As of each Change Date, it will be determined whether or not an interest rate adjustment must be made, and the amount of the new adjusted interest rate, if any. as follows: (a) The amount of the Index will be determined, using the most recently .vailable figure, thirty (30) days before the Change Date ("Current Index"). (b) Two percentage points (2.00 I); the "Margin") will be lidded to the Current Index and the sum of this addition will be rounded to the nearest one-eighth of one percentage point (0.125%). The rounded sum, of the Hargin plus the Current Index, will be called the "Calculated Interest Rate" for each Change Date. (c) The Caiculated Interest Rate will be compared to the interest rate being earned immediately prior to the current Change Date (such interest rate being called the "Existing Interest Rate"). Then, the new adjusted interest rate, if any, will be determined as follows: (i) If the Calculated Interest Rate is the same as the Existing Interest Hate, the interest rate will not change. (ii) If the difference between the Calculated Interest Rate and the Existing Interest Rate is less than or equal to one percentage point, the new adjus- ted interest rate will be equal to the Calculated Int~rest Rate (subject to the maXimum allowable change over the term of the Mortgage of five percentage points, in dther direction, from the Initial Interest Rate, herein called the "5% Cap"). (iii) If the Calculated Interest Rate exceeds the Existing Interest Rate by more than one percentage point. the new adjusted interest rate will be equal to pne percentage point higher than the Existing Interest Rate (subject to the 5% Cap). (iv) If the Calculated Interest Rate is less than the Existing Interest Kate by more than one percentage point, the new adjusted interest rate will be equal to one percentage point less than the Existing Interest Rate (subject to the 5% Cap). (d) Notwithstanding anything contained in this Adjustable Rate Rider, in no event will any new adjusted interest rate be more than five percentage (5%) points higher or lower than the Initial Interest Rate. If any increase or decrease in the Existing Interest Rate would cause the new adjusted interest rate to exceed the 5~ Cap, the new adjusted interest rate will be limited to five percentage (5%) points higher or lower, whichever is applicable, thall the Initial Interest Rate. (e) Hortgagee will perform the functions required under Subparagraphs 3 1.1, [b) and (e) to determine the amount of the new adjusted rate, if any. Any such n~~ ildju5ted interest rate will become effective on the Change Date and thereafter will be deemed to be the Existing Interest Rate. The new Existing Interest Rate ~~ll ~emilin in effec! until the next Change Date on which tile intereet rate Is ad- iusted. (fl The method set forth in this Paragraph] of thia Adjustable Rate Rider. ((If determining whether or not an adjustment must be miJde to the Existing Interest Hote incorporates the effects of the proviaion" uf 24CFK 20J.4~(e)[ll and 2]4.79(01 (Il ......hlch requirl' that challges 1n tilt, Index If! l'X(CIiU {If l)!ll! per\,'l'nt,lgl' pll11lt mu~;t