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► t t U6584 _ ADWSTABLE RATE RIDE U Year Treasury I x—Rate Caps —Fixed Rate t(°ORM410a fiR00") ` THIS ADJUSTABLE RATE RIDER is made this 20th day of t)ctober , 19 87, and is incorporated into and shall be deemed to amend and suppletnent the Mortgage, Ivied of Trust or Security Dead (the "Security Instrument ") of the same date given by the undersigned (the "Borrower") to secure Sorroweir's Adjustable Rate Note (the "Note") to Superior Kortgage, Inc. (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: 2220 W. Division, Grand Inland, Nebraska 68803 lProlwrty 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) Change 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 calf 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 I 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." r 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) Cation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding three percentage points ( 3.0 90) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.12590). 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 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) UmW on Interest Rate Changes The interest rate 1 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 (2.090) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.75 90. 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 Date of Changes My new interest rate will become effective on each Change Date. 1 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. (i) Notice 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 me and Also the title and telephone number of a person who will answer any question I may have regarding the notice. S. FIXED INTEREST RATE OPTION The Ice provides for the grower's option to convert from an adjustable interest rate with interest rate limits to a fixed interim rate, as follows: S. nXED INTEREST RATE CONVERSION OPTION (A) 00so to Convert to Fixed Rote I have a Conversion Option which I can exercise uniess t am in default or this Section 5(A) will not Iwrtnit tire to do so. The "Conversion Option" is my option to convert the interest rate I stn 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 convcr. ion can only take place on a date specifled by the Note Holder during, the period heguming on the first ('harnge Date and ending on the fifth Change Date. Lach dale on which my adjostahlc intcre,,t True can com era to the rww fixed rate is balled the "Conversion Date." WATNIATI ADMIAKI aAn Oftis- AIM PLAN 67- 8mutw family r Mua Unllrorrer tnatrtsment ream 3118 11197 A, iwm, YMP YQAfa# a OM% , ,31 14107 9r t _� Mir ,r„ s ru i, t