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88- 105501 ADJUSTABLE RATE RIDER (I War Tr....ul)' Ind..-Ral. Caps-Fi..d Ra.. Cun.."llIn Opllllll) THIS ADJUSTABLE RATE RIDER is mad. this 12th dsyof October 19 88 . and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed or Trust or Security Deed (the "Security Instrument") of the same dale given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Central Mortgage Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and locOled at: 2830 Ft, Worth Court, Grand Island. Nebraska 68803 (ProperlY Addrc~!>1 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. In addition to Ihe I.:ovcnanl~ and agreements made in the Security Instrument, Horrower and Lender rur1her covenant and agree as follow~: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an inilial interest ralc of 7. 125 in the adjustable interest rate and the monthly payments. as follows: 4. ADJUSTABLE INTEREST RATE ANI) MONTHLY PAYMENT CHAN(;ES %. The Note provides for changes (AI Chang. Da'.s The adjustable interest rate I will pay may change on Ihe first day of November . 19 89 1 and on that day every 12th month thereafter. Each dale on which my adjustable interest rate could change is called a IlChange Date:' (Bl Th. Ind.. Beginning with lhe first Change Dale. my adjustable intcrc!,t rale will be ba!lcu on an Index. The "Index" i!l the weekly average yield on United States Treasury securities adjusted to a consuml maturity or I year, as made available by the Federal Reserve Board. The most recenl Index figure available as of the date 45 days before each Change Date is called the "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 mc notir.::c of this choice. (Cl Calculatllln III Cb.ng.. Before each Change Date, the Note Holder will calculate my new interest rate by adding two and seventy- five hundredths percentage points ( 2.75 %) to the Current Index, The Note Holder will then round the result of this addition to the nearest onc-eighth of one percentage point (0,125%), Subject to the limits slaled in Seclion 4(D) below I this rounded amount will be my new interest rate until the next Change Date. The Nole Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (01 Limits IIn Int..... Ra.. Chang.s The interest rate I am required to pay at the first Change Date will not be greater than 9. 125 % or less than 5..125 %, Thereafter, my adjustable intere!'J1 rate will never be increased or decreased on any single Change Date by more than two percentage points (2'()%) from the rate of inlerest I have been paying for the preceding 12 months. My interest ratc will never be greater Ihan 14.125 /?If), which is called the' 'Maximum Rate", tE) Err.e1I.. Dal. IIi Chang.s My lIew interest rate will become cffL"Clh'c on each Change Dme. I will pay (he amount or my new monthly payment beginning on the first monthly payment dale after Ihe Change Dale until the amounl of my monthly paymenl changes again. (F) Notice of Changes The Note Holder will deliver or maitto me a notice of any changc!'! in my adjmtable iT1lere..t ralc and (he amoulH of my monthly payment before the effeclivc date of .my changc. The nuticc will indueJc information rCljuiretJ by law 10 be given me and also the title and telephone nllmber of a pcp.un "hl! \\ ill amwcr any que~tion I mn) hi.IH regardinl! the notice. B. FIXED INTERt:ST RATE OPTION The Note provides for the Borrower's oplion to convert from an adjustable interest rale with interest ralC limils to a f1Ud interest fate. as follows: 5. FIXED INTEREST RATE CONVERSION OPTION (AI Option 10 Cun..rt In FI..d Ral. I h;J\'c a Conversion Option thai I can exercise unles~ I am in defa.ult or thi', SCl.:tinn Ci(!\, will not pl'unil mc to do so. The "Conversion Option" i!'! my option to cOllver! the iOlere'it ralc I am required III P~l) hy [1m :'\Inll' froTll an adjustable rate with interest rate Iimil~ lo the fixed ratc cilkuhJlcd under Seclion 5(B) hcJO\\ The con...cnioll can unh' ta~e place Oil a date(\l \JlL~cified b).' the Note Holder durin~ thc jlL'Tllhl hl'!!l1ll1l1l~ 011 the rir'll ChangC' Dale and endmg on Ihe rifth Clmngl' Dale:" Em:h dale 011 "hl\:h m) iHljU\tilbll' inll'IC\[ I all' ~".11I dlll\ l'l t lU thC' ne~ r."r:d ralC' I" l"alled tht' "Col1\-cr\iol1 Date." MUl ".TATE AOJUSTA.LE UTE RIDE" - ARM PLAN S7 - S,nU'tl F lI"''''. Flann.. M.. Un.form In_'rum.nt .. ~~!t"'" ......vo".r....I.I.....""... ".....I~". . ~..' I <lOfT' '11" 1} 81