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ADJUST ABLE RATE RIDER (1 Year Treasury Index-Rite Caps-Fixed Rate Conversion Opllon) ~ 88-.105807 THIS ADJUSTABLE RATE RIDER is made this 27th day of October , 19 88 . and is incorporated into and shall be deemed to amend and supplement lhe Mortgage, Deed or Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") 10 Central Mortgage Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 3108 Brentwood Circle, Grand Island, Nebraska 68803 IPropeny 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. In addition to the covenants and agreemenls made in the Security InstrumenL. Borrower and Lender rurther covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate or 8. 125 in the adjustable interest rate and the monthly payments. as follows: %. The Note provides ror changes 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (Al Chooge Dot.. The adjustable interest rate I will pay may change on the First day of November , 19 89 , and on that day every 12th month thereafter. Each dale on which my adjustable interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date. my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of ) year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose n new index which is based upon comparable information. The Note Holder will givc me notice of this choice. (Cl Cllcnlatlon of Cbaog.. Before each Change Date, the Note Holder will calculate my new interest rate by adding two and seventy- five hundredths percentage points ( 2.75 4"D) to the Current Index. The Nole Holder will then round the result of Ihis addilion to the ntarest one-cighth of one percentage point (0.12S %). Subject to the limits stated in Section 4(0) below, this rounded amount will be my new interest rate until the next Change Dale. The Note Holder will then determine the amount or the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in rull 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. (D) Limils OD Int....1 Ra.e Cbong.. The interest rate I am required to pay at the first Change Datc will not be greater than 10. 125 % or less than 6.125 %. Thereafter, my adjustable interest rate will nevcr be increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 14.125 %. which is called the "Maximum Rate". (El Effe<lh. Do.e of Chang.. My new interest rate will become effectivc on each Change Dalc. I will pay the amount of m~ new monlhly paymenl beginning on the first monthly payment date after the Change Date until the amount of my monthly pa~'mcnt changc!<t again. (F) Noli"" of Ch.og.. The NOIe Holder will delh'cr or mail to me a nOlice of any changes in my adju!<tlablc inlercSI nJle am! Ihe amount of my monthly payment before the effective date of any change. The nOlicc will includc information rcquired by 1m\- to be given me and also the title and telephone number of a person who will an~wcr any quc!<ttion J I1lU~ ha\'c regarding the notice. B. FIXED INTEREST RATE OPTION Tht: Note: provides for the Borrower's option to convert from an adjustable interest rale with inlerc!!t rate limits to a fIXed interest rate, as Follows: 5. FIXED INTEREST RATE CONVERSION OPTION (AI Optloo 10 Coo.m to Fi..d Hal. I have a Conversion Option that I can exercise unless I am in defauh or this Seclion 5(A' will 1101 permit me , 10 do so. The "Conversion Option" is my option to conven the interest rate I am required to JUlY h)' lhio. Notc from an adjustable rale with interest rate limits to the fixed ratc calculatcd under Seclion ~nu hellm. The con'w'ersion can only take place on a dale(s) speciried by the NOle Holder during Ihl' PL'liIlU hcginning on the fir~t ChangC' Date and ending on the fifth Chunge Dale. Each dale on which my adJu!twhle interc'Il laiC ,:an Cllll\L'rl 10 the new Il'\ed rale is called the "Con\'crslon Dale."' MULn5TATE ADJUSTABlE RATE RIDER-ARM PLAN 51-SlnUII! falnll" FannIe Mee Uniform In.trumenl 1lI:I?... 845""1'1' ",",I'MQItHjAI;lfUOlt"lS' 1'I'J!I.l..."..,. ~,",,:, f"'lII J1 t" 12'87