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ADJUSTABLE RATE RIDER II Vtar Tr....ry Index-Ra', Caps) 88-105937 THIS ADJUSTABLE RATE RIDER is made this 3rd day of November . 19 88 . and is incorporated into and shall be deemed to amend and supplement the Mortgage. Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note ((he "Note") to Central Mortgage Corporation (the "Lendc,") of the same date and covcring the property described in the Security Instrument and located at: 311 East 22nd, Grand Island, NE 68801 (ProperlY Ac.ldress) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE UMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BOR. ROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLV PAVMENT CHANGES The Note provides for an initial interest ratc of B. 875 %. The Note provides for changes in the intcrcst rate and the monthly payments, as follows: ~. INTEREST RATE AND MONTHLV PAVMENT CHANGES (A) Chang. Dates The interest rate I will pay may change on the first day of December . 1991 ,and on that day every 12th month thereafter. Each date on which my interest ratc could change is called a "Change Date." (B) The Ind.x Beginning with the first Change Date. my interest ratc will be based on an Index. The "Index." is the weekly average yield on United States Treasury securities adjusted to a constant maturity of I year, 85 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 Inde..... Ir the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The NOle Hold.r will give me nolice of this choice. (e) Calculation or Cha_ Bdore 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 Indek.. The Note Holder will then round the result of this addition to the nearcst one.eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(0) below, this rounded amount will be my new interest rate until the next Change Date. The Note 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. (D) Limits on Int.rest Rat. Changes The interest rate I am required to pay at the first Change Date will not be greater than 10.875 % or less than 6.875 %. Thereafter, my intercst rate will never be increased urdecreased on any single Change Date by more than two percenLBge points (2.0%) from the rate of interest I have been paying for the preceding twelve months. My interest rate will never be greater than 14.875 %. (E) Elr..t1,. Dal. of ebonges My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice or Chon,.. The Note Holder will deliver or mail to me a notice of any changes in my intercst rate and the amount of my monthly paymcnt before the effective datc of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 11 of the Security Instrument is amended to read as follows: Traasferoftbe Property or a Beneficiallnternt in Borrower. If all or an)' part of the Properly or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without lender's prior wrinen conSent, lender may. at its option. require immetiiate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by lender if exercise is prohibited by ferlerallaw as of the date of this Security Instrument. lender also shall not cltcrcisc: this option if: fa) Borrower causes to be submitted to lender information required by Lender to evaluate the intended transferee as if a ncw loan were being made to the transferee: and (b) lender reasonably delermin~s that lender's !'ccurily will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement In this Sccuril) Instrumcnt is acceptable to . lendcr. To the extent permitted by appllcuble In"". Lender ma) charge it reasonable fee U!> Ol\.:undllllm 10 Lcnder\ \.:unsenllU the loan assumption Lender ma) al!i.Q require: the trunlofercc 10 "ign an a~sumption agTl:cl1lcnl thaI I" il\.:ceptablc III Lender and 1hal ob1iglJt~ the transferee 10 keep all the proml!tc!t nnd agrcc:mcnh made: 10 the NOI~' .toLlln 11m SCl.'url1~ Inurument. Borrowcr Will contmue 10 be obligated under the Note nnd thl~ SCl:Unl~ In..lruttlCnl unlc~.. lender rdea~c" Borrower In writing IIUlTlSTlTE AOJUSTA8lE RATE AIDER-ARM s..2-5tnyt~ f-.'llTlllv-hnrn..... Fteddle Uac Unilorm Inatrum.nl Form 3111 J B~ cD?.. 112.