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~'or us~ only with an Adjustable Rate Mortgage, Deed of Trust or SecurIty Deed insured under section 203(b), 203(k) (first lien only) or 2341c)of the National Housing Act, using the Mlrgin method. ADJUSTABLE RATE RIDER 88- 106191 THIS ADJUSTABLE RATE RIDER is made this .1.ZE.!!- day of November , 19 BB and is incorporated into end shall be deemed to amend and supplement the Mortgag~ Deed of Trust or Security Deed ("Mortgage"), of even date herewith, given by the undersigned ("Mortgagor") to secure Mortgagor's Adjustable Rate Note ("Note"), of even date herewith,to Central Mort2a~e CorDoration ("Mortgagee"), covering the premises described in the Mortgage and located at 312 N. Custer. Grand Island. NE 6B803 Notwithstanding anything to the contrary set forth in the Mortgage, Mort~gor and Mo~tgagee hereby agre~ to the following: 1. Under the Note, the initial stated interest rate of Eight per centum ( 8.0 %) per annum ("Initial Interest Rate") on the unpaid principal balance is subject to change, as hereinafter described. When the interest rate changes, the equal monthly installments of principal and interest also will be ad- justed, as hereinafter provided, 50 that each installment will be in an amount nec- essary to fully amortize the unpaid principal balance of the Note, at the new ad- justed interest rate, over the remaining term of the Note. 2. The first adjustment to the interest rate (if any adjustment is required) will be effective on the first day of April , 19~ (which date will not be less than twelve months nor more than eighteen months from the due date of the first installment payment under the Note), and thereafter each adjustment to the interest rate will be made effective on that day of each succeeding year during the term of the Mortgage ("Change Date"). J. Each adjustment to the interest rate will.be made based upon the following method of employing the weekly average yield on United 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 Statistical Release H,i5(519)). As of each Change Date, it will be determined whether or not an interest rate adjustment must be made. and the amount of the new adjusted interest rate, if any, as follows: (a) The amount of the Index will be determined, using the most recently available figure, thirty (30) days before the Change Date ("Current Index"). (b) Two percentage points (2.0 X); the "Margin") will be added to th~ Current Index and the sum of this addition will be rounded to the nearest one-eighth of one percentage point (0.125%). The rounded sum, of the Margin plus the Current Index, will be called the "Calculated Interest Rate" for each Change Dat"_ (c) The Calculated Interest Rate will be compared to the interest rate being earned immediately prior to the current Change Date (such interest rate being called the "Existing Interest Rate"). Then, the new adjusted interest rate, if any, will be determined as follows. (i) If the Calculated Interest Rate is the same as the Existing Interest Rate. the interest rate will not change. (ii) If the difference between the Calculated Interest Rate and the Existing Interest Rate is less than or equal to one percerttage point, the new adjus- ted interest rate will be equal to the Calculated Interest Rate (subject to the maximum allowable change over the term of the Mortgage of five percentage points, in either direction, from the Initial Interest Rate, herein called the tiS? Cap"). (iii) If the Calculated Interest Rate exceeds the Existing Interest Rate by more than one percentage point, the new adjusted interest rate will be equal to one percentage point higher than the EKisting Interest Rate (subject to the 5X Cap). (iv) If the Calculated Interest Rate is less than the Existing Int~rest Kate by more than one percentage poLnt, the new adjusted interest rate will be equal to one percentage point less than the Existing Interest Rate (subject to the 5% Cap), (d) Notwithstanding anything contained in this Adjustable Rate Rider, in no event will any new adjusted interest rate be more than five percentage (5X) points higher or lowl!r than the Initla1 Interest Rate. If any increase or decrease in t.he Existing Interest Rate .....ould cause the new adjusted int.erest rate to exceed the 5% Cap, the new adjusted interest rate will be limited to five percentage (57.) points higher or lower, whichever Is applicable, than the Initial Interest Rate. (e) Mortgagee will perform the functions required under Subparagraphs 3 (a), (b) and (c) to determine the amount of the new adjusted rate, if any. Any such ne~ adjusted interest rate .....ill 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 until the next Change Date on which the interest rate is ad- , justed. (f) The method set forth in this Paragraph 3 of thie Adjustable Rate Rider, for determining whether or not an adjustment must be made to the Existing Interest Rete incorporates the effects of the provisions of 24CFR 203.49(.)(1) and 234.79(e) (I) which require that changea in the Index in excess of one p~rcentage pulnt must