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<br />10479!::
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<br />For use only with an Adjustable Rate Mortgage, Deed of Trust
<br />or Security Deed insured under section 203(b), 203(k)
<br />(first lien only) or 234(c)of the National Housing Act,
<br />using the MarKin method.
<br />
<br />ADJUSTABLE RATE RIDER
<br />
<br />TlllS ADJUSTABLE RATE RlOER is made this ~ day of August , 19 88,
<br />~nd 15 incorporated into and shall be deemed to amend and supplement the Mortgage:--
<br />D~ed of Trust or Security Deed ("Mortgage"), of even date herewith, given by the
<br />undersigned ("Mortgagor") to secure Mortgagor's Adjustable Rate Note ('INotel'), of
<br />even c~te herewith,to Central Mort~a~e Corporation
<br />(l1~ortgageen), covering the premises described in the Mortgage and located at
<br />916 W. Division, Grand Island, Nebraska 68801
<br />
<br />Notwithstanding anything to the contrary set forth in the Mortgage, Mort~agor
<br />and Mor,tgagee hereby agree to the following:
<br />
<br />1. Under the Note, the initial stated interest rate of Nine
<br />per centum ( 9.00 %) per annum ("Initial Interest Rate") on the unpaid principal
<br />balance is subject to change, as hereinafter described. When the interest rate
<br />changes, the equal monthly installments of principal and interest also will be ad-
<br />justed, as hereinafter provided, so that each installment will be in an amount nec-
<br />~ssary to fully amortize the unpaid principal balance of the Note, at the new ad-
<br />justed interest rate, over the remaining term of the Note.
<br />
<br />2. The first adjustment to the interest rate (if any adjustment is required)
<br />1..'111 be effective on the first day of Januarv , L9~ (which date will
<br />not be less than twelve months nor more than eighteen months from the due date of
<br />tile first installment payment under the Note), and thereafter each adjustment to the
<br />1nt~rest rate will be made effective on that day of each succeeding year during the
<br />t~rm of the Mortgage ("Change Date").
<br />
<br />3. Each adjustment to the interest rate will be made based upon the following
<br />m~thod of employing the weekly average yield on United States Treasury Securities
<br />adjusted to a constant maturity of one year ("Index"; the Index is published in the
<br />Federal Reserve Bulletin and made available by the United States Treasury Department
<br />in Statistical Release H.15(5l9)). As of each Change Date, it will be determined
<br />~11~ther or not an interest rate adjustment must be made, and the amount of the new
<br />.Idjusted interest rate. if any, as follows:
<br />(a) The amount of the Index will be determined, using the most recently
<br />:!v.Jilable figure, thirty (30) days before the Change Date ("Current Index").
<br />(b) Two percentage points ( 2.00 %); the "Margin") will be added
<br />:\) the Current Index iJnd the sum of this addition will be rounded to the nearest
<br />\)llL'-L~ighth of one percentage point (0. L25:t). The rounded sum, of the Margin plus
<br />the Current Index, will be called the "Calculated Interest Rate" for each Change Date.
<br />(c) The Calculated Interest Rate will be compared to the interest rate
<br />being earned immediately prior to the current Change Date (such interest rate being
<br />L..dlled the nExisting Int~re5t RateU). Then, the new adjusted interest rate, if any,
<br />~ill be determined as follows:
<br />(i) If the Calculated Interest Rate is the same as the Existing Interest
<br />Hate, the interest rate will not change.
<br />(ii) If the difference between the Calculated Interest Rate and the
<br />EXlsting Interest Hale is less than or equal to one percentage point, the new adjus-
<br />ted lnterest rate will be equal to the Calculated Interest Rate (subject to the
<br />maximum allowable change over the term of the Mortgage of five percentage points, in
<br />l'ither direction, from the Initial Interest Rate, herein called the "5% CapU).
<br />(iii) If the Calculated Interest Rate exceeds the Existing Interest Rate
<br />by more than one percentage point. the new adjusted interest rate will be equal to
<br />otH:: percentage point higher than the Existing Interest Rate (subject to the 57. Cap).
<br />(tv) If the Calculated Interest Rate is less than the Existing Interest
<br />Kate by more than one percentage point, the new adjusted interest rate will be equal
<br />to one percentage point less than the Existing Interest Rate (subject to the 5% Cap),
<br />(d) Notwithstanding anything contained in this Adjustable Rate Rider, in
<br />::., l~\!t;'nt will any new adjusted interest rate be more than five percentage (5%) points
<br />:11~her or low~r than tile Initial Interest Rate. If any increase or decrease ill tll~
<br />b:isting Interest Hate ...muld cause the ne'W adjusted interest rate to exceed the 57-
<br />1':.1p. the ne.... adjusted interest rate ""ill be limited to five percentage (5%) points
<br />;rt,.:.her or lo1.."L~r. ...hichever is applicable, than the Initial Int~rest ~.:J.te.
<br />(e) Mortgagee will perform the function~ required under Subparagraphs j
<br />.', tb} LInd (c) to determine the Llmount of the new adjusted rate!, if any. Any slIdl
<br />:~t._. adjusted interest rale 1..'111 become effective on the Change Date and thercaftL'r
<br />....:;: be deemed to be the Existing Interest Rate. The new Existing Interest Hatt.'
<br />'6;;; remdin 10 l'ffl'ct until the next Change D,ltt, on ....bi...:b tbt. intl'rl'Sl ratl' is .IJ-
<br />r... t t"d.
<br />(f J The method !-it:l forth in this Paragraph] nf [hit> Adjustable Katl' HideI'.
<br />! .f dt.t,'lm1ning ....11t..th...r l,\f not an adju5tmL'nt mu~t lol' m.ldt;' to ttll' EX1stin~ lntl'rl'!'.,{
<br />. Ilh.orprJr.Jtl'!'; rill' t.ttt'Llp.; llf lh~ provi~ll-Jn~ III :.d~FH ..'O.I.:.4(1.)tl\ ,11\'\ ..'\... ''II.'l
<br />.00il. II II'qU)TI' Ill.ll . !lolllt;t.~; III till' Indl'" 11, t.., t....,.1 1"'1 1'111 .I~~t' j' 1!\1 1'.
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