87106617 - Laserfiche WebLink

Browse

a ADJUSTABLE RATE RIDER 87® 106617 (1 Year Treasury Index —Rate Caps —Fixed Rate Conversion Option) 10th November tg 87 andlS THIS ADJUSTABLE RATE RIDER is made this day of 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 (the "Note ") to Norwest Bank Nebraska, National Association (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: 206 Lakeside Drive, Grand Island, Nebraska 68801 lP,oaenY nuoro,a, 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 8-25 %. 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 December tg 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) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding two and five eighths percentage points( 2.625 %) to the Current Index. The Note Holder will then round the result of this ad- dition 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 that I am expected to owe at the Change Date in full on the maturity date at my new in- terest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate 1 am required to pay at the first Change Date will not be greater than 9.25 % or less than 7.25 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one ( 1 %) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 14.25 %. 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. 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 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 ques- tion 1 may have regarding the notice. B. FIXED INTEREST RATE OPTION The Notice provides for the Borrower's option to convert from an adjustable interest rate with interest rate limits to a Lfixed interest rate, as follows: S. FIXED INTEREST RATE CONVERSION OPTION (A) Option to Convert to Fixed Ram 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 i. 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 the first. second or third Change Date. Each date on which my ad- justable ingest rate can convert to the new fixed rate is called the "Conversion Date."