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<br />88-106318
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<br />ADJUSTABLE RATE RIDER
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<br />84750-1-20
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<br />'THIS ADJUSTABLE RATE RIOER Is modi this 28th doy 01 November 19BB , and
<br />III InCOlJlOl1lted Into and shoJI bl deemed to amlllld and supplomllllt the Mo~g.ge, Ooed 01 TNst or Security Oeed ("Mo~gege", of even
<br />date horewfth, glvllll by the und....lgned ("Mo~glgor" to socu'" Mo~g.gor's Adjustable Rete Note ("Note", 01 even dati herewith, to
<br />FIRST FEDERAL SAVINGS AND LOAN ASSOCL-\.TION OF LINCOLN ("Mo~gagee",
<br />covering the promls" d..C1ibed In the MO~~lle end located et 4328 West Capital Avenue
<br />Grand Island, Nebraaka 68803
<br />
<br />~'.,'
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<br />Nolwlthstandlng anything to the contrary set lorth In thl Mortgage, Mo~gagor and Mo~gsgee hereby eg,ee to the following:
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<br />1. Under the Note, the initial steted Interest rate 01 Nine per centum I 9.000 %)
<br />per annum ("Inltlal. Interest Rate" Dn the unpaid principal balanCB Is subject to change, II herelnsfter described. When the Interest
<br />ra1e changes. the equal monthly Instal1ments of pMclpaJ and Interest also wlU be adJusted. as hereinafter provided. so that each
<br />Installment wiD be In an amount neces:wy to fully amortf:ze the unpaid principal balance of the Note. at the new adjusted Interest
<br />rate. over the remainlng term of the note.
<br />
<br />2. The nrat adjustment 10 the Interest rele (ll any edJustment III required) win be effective on the firat day of. January
<br />1990 , (which dall will not be I..s than twelve months nor more than elghteen months from the due date of the first In-
<br />stellment paymllllt under the Note), and thereoner eech edjuslmenllo the Interest rele will be made effective on thet day 01 eech
<br />succeeding year during Ihe tenn of thl Mo~gagl rChangl Oate'1.
<br />
<br />3. Each adjustment to the Interest rate will be made based upon the faUawing method af employing the weekly average yield on Unit-
<br />ed SIal.. Treasury Securities adjusted to a constant maturily 01 one year ("Index"; the Index Is published In the Federal Resel'lle
<br />ID!l!!!!!I and madl ovoJlable by the UnUed Steles Treasury Oepartment In Statistical Release H,15 {51 B)). As 01 each Change Cate,
<br />It wiD be detennined whether af not an Interest rate adjustment must be made, and the amount of the new adjusted Interest rate,
<br />If any, IS follows;
<br />
<br />(a) The amounl 01 thl Index wiD be detennlned. using the most recenlly availa!lle figure, thirty (3D) days before the Change Oate
<br />("Currenl Index'1.
<br />(b) 250 poreentege points I 2.500 %; thl "Margln'1 wiD be added 10 the Current Index and the
<br />lum of this addiUon wW be rounded to the nearest one-eighth of onl3 p'ercentage point (0.125%). The rounded sum, of the
<br />Morgin plus thl Curronllndex, will be called the "Calculated Interest Rate" fo' each Change Oate.
<br />(c) Thl Calculatld Interest Rate will bl compared to thl Interest rate belng earned Immediately prior to the current Change Oate
<br />(Iuch Int","lt rotl being coIed Ihl ''Eldsting Int...., Rate". Then, the now adjusted Interest rate, If any, will be detennlned
<br />II fonows:
<br />(l) II Ihl Calculaled 1nl....1 Rate Is Ihl same .. thl ExlsUng Int","st Ratl, thl Interest rete will nol change.
<br />(11) If tho dlfllllnce botwoen thl Calculated Intfint Rste and thl ExIsting Intereal Ratl Is I..s than or equal to one percent-
<br />age point, the now Id)usled Intfi..t ratl wiQ be squ.lto Ihe Calculated IntentSt Retl (subject tD thl l110ldmum ailowoble
<br />changl ovlI' thl tonn 01 thl MO~glgl 01 flvl percentegl points, In eIIher direction, from thl Inltlallnteresl Rate, herein
<br />coIed the "5% Cop'1.
<br />(Ill) "the Calculated Interesl Rate excseds the ExIsting Interast Ratl by mo", Ihan onl poreentege point, the now adjusted
<br />Int....t rail wlU be squalto onl percentegl polnl higher than thl ExlsUng Intl",st Rite (subject to thl 5% Cap).
<br />(Iv) If the Calculated Interest Rate Is less than the ExIsting Interest Rate by more than one percentage point, 1he new adJust-
<br />ed Interest role wlU be squol to onl percentegl poinl less than the ExIsting Int"",sl Rail (aubJect to the 5% Cap).
<br />(el) Notwithstanding anything contelned In this Adjustabll Rate Rider, In no evllllt will any new ad/usted interesl rate be more than
<br />flvl percentsge (5%) points higher or lower than thl Inil101 Interest Rate. "any Increasl or decreasl In Ihe ExIsting Interest
<br />Rale would caUSI Ihl new adjusted Interest retl to exceed the 5% Cap, the now adjusted Interest rete will be limited to five
<br />percentege (5%) polnto higher or lower, whichever Is applicable, than the Inil101.lnterest Rltl.
<br />(e) Mo~glgee will porlonn the functions required under SUbparagrapha 3(1), (b) and (cJ 10 dotennlnl the amounl of the new adJust-
<br />ed rote, If any. MY auch now Idjusted Interest rete will become effective on the Change Oate and thereafter will be deemed to
<br />bl the Exllllng Interest Ratl. Thl new ExIsting Intoresl Rate wiD remain In effect unIB the next Changl Oate on which the Inter-
<br />esl ratl Is adjusted.
<br />(~ Thl method set fo~h In Ihls Paragraph 3 of this Adjusted Rato Rider, lor dotennlnlng whether 0' not an adjustment musl be
<br />modi to thl Exlsllng Interest Rail Incorporales thl effeclo 01 the provisions 01 24 CFR 203.49 (e) (1) and 234.79 (e) (1) which
<br />require that changes in the Index In l!XC2SS of one percentage point must be carrfed over fOf inclusion in adjustments to the
<br />Exlsllng Inleresl Roll In subssouenl yeoro.
<br />(g) n the Index IS no longer available, Martgllgee wiI be required to use any Index presaibed by the Department of Houling and
<br />Urban Dwolopmenl. Mo~gogee will notlly Mo~glgor in writing of any such lubslltull IndIX (giving all noces""Y Infonnollon
<br />lor MOl1gogor to obleln luch Index) and anII' thl dati 01 IUch notloe thl lubo1ltu\l Index wiU bl deemed to bl thl Index
<br />henunder.
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<br />4. (I) If thl Exlsllng Inl....1 RoIo chong.. on any Changl Olio, Mo~gaDee will rocalculale Iha monthly InsleUmont plymento of princi-
<br />pal and InIontsIlo _I thl omount which would bl nocosaery 10 repoy In full, on the moturily dall, thl unpaid principal balance
<br />(which unpaid pJlnclpal boIonco wiI be deemed to bl thl amounl dul on auch Change Oetl ..sumlng there hla been no dlfautt In
<br />any _I on thl Nolo but d _to on thl Notl hovI been leken Into lceount), 01 thl now Exlsllng Int...1 Rltl, In equal
<br />_IV _to. On ,W bel"", thl Changl Oota, Mo~gagee will give Mo~gogor wriIlen notico {"AdJustmont Notice" 01 any
<br />chongo In thl ExIo1Ing Intorosl Rate and of thl rovIoed amount of thl monthlV InsleUmlllll poymlllltS of principal and InleresL calcu.
<br />_ IS pnwIdod obovo. Each Adjutltmln1 Notice wiI lot torth (l) thl dotl thl Adjustment Notice II given, (11) thl Changl Oatl,
<br />\lIl \he __ ExIIllng _ Roll .. Idjultod on thl Chongl Oltl, (Iv) thl amount .1 thl Id/ualed monthly InsleUment payments,
<br />_ .. __ obovl, (v) thl Curron! Index, (vi) thl method 01 colculallng Ihl IdJuStmllllt to thl monthly Instollment psy-
<br />__ end (vii) any other Infonnotlon which may bl ,oquintd by law from limo 10 1Int1.
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<br />FHA ANI -.... 711A
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<br />Pa;. 1 tit' 2
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<br />.r ~lr!J J ,.
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