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RR- 105110 ADJUSTABLE RATE "AlDER BA579-1-20 THIS ADJUSTABLE RATE RIDER Is mad.lhls 21st deyof September 19BB, end Is. IncorporatMl Inlo and ~hNl be deemed to Dhtend and supplement ths M0r10age. Deed of Trust or Security Deed f"MDrtgage'1. of even dale hlrlWlth, given b~ thl undersigned ("Mortgagor" to secure MartgBgo(~ Adjustable Rate Note CONDIe". of even dill. herewith, to FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF LINCOLN ("Mortgagee'1, covering the premises described In the Mortgage and located at 126 Bas t Bismark Road Grand Island, Nsbraska 68801 Notwithstanding anything to the contrary set forth In the Mortgage, Mortgagor and Mortgagee hereby agree to the fallowing: 1. Under the Nole, thelnltJa1 staled Inleresl IlIle of Eight and Three fourthe per centum ( B.750 %) per annum r'lnlt1aJ Interest Rate" on the unpaid principal balance Is subject to change. as hereinafter described. When the Interest rate changes. the equal monthly inataUments of principal and Interest also wnl be adjusted, as hereinafter prcvlded. so that each InstaDment will be In IU1 amount necessary to fully amortize the unpaid principal balance of the Note, at the new adjusted Interest rate, over the remaining term of the note. 2. The first adjustment to the! Interest rate (if any adjustment Is required) wlll be effective on the first day 01 November 1989 , (which date wID not be less than tNeNe months nor more than eighteen months from the due date of the first In- 5taI1ment payment under the Note), and thereafter each adjustment to the interest rate wID be made effective on that day of each succeeding year during the term of the Mortgage C'Change Date". 3. Each adjustment to the interest rate wiD be made based upon the following method of employing the weekty average yield on Unit- ed 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 SlallsllcaJ Release H.15 (519)). As of each Change Date. it wiD be detennlned whether or not an interest rate adJustment must be made, and the amount 01 the new adjusted interest mte. if any. 85 follows: (a) The amount of the Index wm be determined. using thB most recently available figure, thirty (30) days before the Change Date r'Current Index". (b) 250 percentage points ~%: the "Margin" wiD be added to the Currentlndex Bnd the sum of this addition wiD be rounded to the nearest one-eighth of one percentage point (0.125%). The rounded sum, 01 the Margin plus the Current Index. will be called the "Calculated Interest Rate" lor each Change Date. (c) The Ciilculated Interest Rals will be compared to the Interest rate being earned Immediately prior to the ament Change Date (such interest rate being called the "ExIsting Interest Rate'1- Then. the new adjusted Interest rate. If any, will be detemlined as foUows: (i) If the Calculated Internt Rate Is the Ame as the existing Interest Rate. the interest rate wiU not change. (ii) II the difference between the Calculated Interest Rate and the existing Interest Rate is less than or equal to ene percent. age point the new adjusted interest ralB will be equal to the Calculated Interest Rate (subject to the maximum aBowable change over the term of the Mortgage of five percentage points. In either direction. from the Initial Interest Rate, herein called the "5% Cap'1. (iii) If the Calculated Interest Rate exceeds the Existing Interest Rate by more than one percentage point. the new adjusted interest me wiD be equal to Dnl!! percentage point hIgher than the ExIsting Interest RBle (subject to the 5% Cap). (Iv) If the Caladated Interest Rate Is less than the existing Interest Rate by more than one percentage pelnt. the new adJust- ed interest rate will be equaJto one percentage point less than the existing Intere$t Rl1e (subject to the 5% Cap). (d) Notwithstanding anything contained in this Adjustable Rate Rider, In no event wW any new adjusted Interest rate be more than live percentage (5%) points higher or lower than the Init.lallnterest Rate. It any increase or decrease in the Existing Interest REe would cause the new adjusted Interest rate to exceed the 5" Cap, thl!l new adjusted Interes! rate wiD be limited to five percentage (5") points higher or lower. whichever Is app6cable. than the Init1al Interest Rate. (e) Mortgagee wiD perform the functions required under Subparagraphs 3(8), (b) and (c) to detennine the amount of the new adJust- ed rate. If an).'. Any such new adjusted Interest rate wW become effective on the Change Date and thereafter will be deemed to be the existing Interest Rate. The new Existing Interest Rate will remain In effect untO the next Change Date on which the Inter. est me Is adjusted. (I) The method set forth in this Paragraph 3 of this Adjusted Rate Rider, for determining whether or not an adjustment must be made to the Existing Interest Rate lncorporetes the etfodS of the previsions of 24 CFR 203.4R (e) (1) and 234.79 (e) (1) whIch rec;ulre that changes In the Index In exce$S of one percentage point must be caniec:t over for inclusion in adjustments to the Existing Interest Rate In subsequent years. (g) If the index Is no longer available, Mortgagee wBI be required to use lU1y Index prescribed by the Department 01 Housing and Urban Development Mortgagee will notttv Mortgagor In writing of any such substitute Index (gMng aB necessary lnIormatlon for Mortgagor to obtakt auch Index) and alter the date of such notice the substitute Index will be deemed to be the IndEX hlftlUnder. 4. (a) If the Existing Interest Rme changeJ. on IIn)' Change Date. Mortgagee wiD recalculate the monthly installment payments 01 princi- pel and _ to _e the ......,1 which wculd be necessal)' 10 ~ In fuD, on \he maturity dot.. the unpaid principal balance (which unpaid principal balance wi be deemed to be the amount due en such Change Date assuming there has been no default In any ~ an thl Note but .. prepayments on the Note have been tak., Into account), at the nllW' Existing Interest Rate, in equal rnonthIr peyIIWItL On at before the Clwlgo Dale, MorlglIg.. wiI glvo Mortgagor wrIlt.. notice ("Adjuslmlotl Notice'1 at any ~ In the Existing interest Rate and or the rewiaed amount of the monthly InstaDment payments of principal and Interest. caJcu. IIaIld .. provided abovL Each AdIusIrMnt Nab d ... forth (I) the date the Adjustment Nollce Is given, (Ii) 1he Change Cate, ~ the MW Exiati1g Int.... RmII u adjusted on thl Change 0a1e, (Iv) the amount of the adjusted monthly Instaltmenl payments. c:aIc:uIIIt8d .. provided aboYa. (v) &he Cunnt IndB, (vi) the method at calculaUng the adjustment to Ihe mon1hty Installment pay. _ ond (vi) _ ath.. Infonnollan which may be ~Inld by law tram lima to time. .,...AAM....,. f~ Pag. 1 or 2