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r ADJUSTABLE RATE RIPER (I Year Tresionry I x—Rate Caps —Fixed Rate Conversion Option) THIS ADJUSTABLE RATE RIDER, is made this 20th dayof October , 19 ,8S , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Dad 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 (the "Note ") to Superior Mortgage, Inc. (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: 2220 W. Division, Grand Island, Nebraska 68803 (Property Addressl 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 ADJUSTABLE 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 agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES .. The Note provides for an initial interest rate of 7.75 %. The Note provides for changes in the adjustable interest rate and the monthly payments, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) CbmW Dates The adjustable interest rate I will pay may change on the first day of November 19 88 , and on that day every 12th month thereafter. Each date 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 1 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 a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Cakulatba of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding three Percentage points ( 3.0 fie) to the Current Index. The Note Holder wili then round the result of this addition to the nearest one- eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) 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 the: I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially dual payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits an Interesst Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.75 or less than 5.75 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of interest 1 have been paying for the preceding 12 months. My interest rate will never be greater than 13.75 %. The interest rate limits of this Section 4(D) will not apply if I exercise my Conversion Option under Section 5 of this Note. (E) Effective Daft of Changes My new interest rate wilt become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the rim monthly payment date after the Change Date until the amount of my monthly payment changes (F) Nodee of Changes The Note Holder will deliver or mail to me a notice of any changes in my adjustable interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given ae and filso the tick and telephone number of a person who will answer any question I may have regarding the min. B. nxED iNTERigsT RATE OPTION Tint Notice provides for the Borrower's option to convert from an adjustable interest rate with interest rate limits to a fixed interest rate, at follows: S. FIXED INTEREST RATE CONVERSION OPTION (A► Oisdow to Ce/oveat to Fixed Rate I have a Conversion Option which I can exercise unless I am in default or this Section 5(A) will not permit me to do so. The "Conversion Option" is my option to convert the interest rate I am required to pay by this Note from an adjustable rate with interest rate limits to the fixed rate calculated under Section 5(B) below. The conversion can only take place on a date specified by the Note Holder during the period beginning on the first Change a and ending on the fifth Clump Dale, Lach date on which my adjustable interest rate can conkers to the new fixed rate is callied the "Conversion Date." TAT! RATE A.�..ARM PLAN i7..•.Single rarnlly- ..FomW Mae Unita,m inetr„mw+r Farm 3110 7?07 /� r$12AY1 YNPY BGRisr B,3g9Mg • i;41 d�t4:9 ��f"bJ . tk ta71 71E9, n«