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<br />For use only with an Adjustable Rate Mortgage, Deed of Trust
<br />or Security Deed insured under section 203(b), 203(k)
<br />(first lien only) or 234(c)of the National Housing Act,
<br />using the Margin method.
<br />ADJUSTABLE RATE RIDER
<br />THIS ADJUSTABLE RATE RIDER is made this 18th day of November , 1987 ,
<br />and is incorporated into and shall be deemed Co amend and supplement the Mortgage,
<br />Deed of Trust or Security Deed ( "Mortgage "), of even date herewith, given by the
<br />undersigned ( "Mortgagor ") to secure Mortgagor's Adjustable Rate Note ( "Note "), of
<br />even date herewith,to Superior Mortgage, Inc.
<br />( "Mortgagee "), covering the premises described in the Mortgage and located at
<br />1212 N. Hancock, Grand Island, NE 68803
<br />Notwithstanding anything to the contrary set forth in the Mortgage, Mortgagor
<br />and Mortgagee hereby agree to the following:
<br />1. Under the Note, the initial stated interest rate of Nine
<br />per centum (_ cy4_X) per annum ( "Initial Interest Rate ") on the unpaid principal
<br />balance is subject to change, as hereinafter described. When the interest rate
<br />changes, the equal monthly installments of principal and interest also will be ad-
<br />justed, as hereinafter provided, so that each installment will be in an amount nec-
<br />essary to fully amortize the unpaid principal balance of the Note, at the new ad-
<br />justed interest rate, over the remaining term of the Note.
<br />2. 1he first adjustment to the interest rate (if any adjustment is required)
<br />will be effective on the first day of January , 1989 (which date will
<br />not be less than twelve months nor more than eighteen months from the due date of
<br />the first installment payment under the Note),.and thereafter each adjustment to the
<br />interest rate will be made effective on that day of each succeeding year during the
<br />term of the Mortgage ( "Change Date ").
<br />3. Each adjustment to the interest rate will be made based upon the following
<br />method of employing the weekly average yield on United States Treasury Securities
<br />adjusted to a constant maturity of one year ( "Index "; the Index is published in the
<br />Federal Reserve Bulletin and made available by the United States Treasury Department
<br />in Statistical Release H.15(519)). As of each Change Date, it will be determined
<br />whether or not an interest rate adjustment must be made, and the amount of the new
<br />adjusted interest rate, if any, as follows:
<br />(a) The amount of the Index will be determined, using the most recently
<br />available figure, thirty (30) days before the Change Date ( "Current Index ").
<br />(b) Two percentage points ( 2,0 X); the "Margin ") will be added
<br />to the Current Index and the sum of this addition will be rounded to the nearest
<br />one- eighth of one percentage point (0.125X). The rounded sum, of the Margin plus
<br />the Current Index, will be called the "Calculated Interest Rate" for each Change Date.
<br />(c) The Calculated Interest Rate will be compared to the interest rate
<br />being earned immediately prior to the current Change Date (such interest rate being
<br />called the "Existing Interest Rate "). Then, the new adjusted interest rate, if any,
<br />will be determined as follows:
<br />(i) If the Calculated Interest Rate is the same as the Existing Interest
<br />Rate, the interest rate will not change.
<br />(ii) If the difference between the Calculated Interest Rate and the
<br />Existing interest Rate is less than or equal to one percentage point, the new adjus-
<br />ted interest rate will be equal to the Calculated Interest Rate (subject to the
<br />maximum allowable change over the term of the Mortgage of five percentage points, in
<br />eitLo-r direction, from the Initial Interest Rate, herein called the "5X Cap ").
<br />(iii) If the Calculated Interest Rate exceeds the Existing Interest Rate
<br />by more than one percentage point, the new adjusted interest rate will be equal to
<br />one percentage point higher than the Existing Interest Rate (subject to the 5% Cap).
<br />(iv) if the Calculated Interest Rate is less than the Existing Interest
<br />Rate by more than one percentage point, the new adjusted interest rate will be equal
<br />to one percentage point less than the Existing Interest Rate (subject to the 5% Cap).
<br />(d) Notwithstanding anything contained in this Adjustable Rate Rider, in
<br />no event will any new adjusted interest rate be more than five percentage (5X) points
<br />higher or lower than the Initial interest Rate. if any increase or decrease in the
<br />i:xistiog interest Rate would cause the new adjusted interest rate to exceed the 5X
<br />Cap, the new adjusted interest rate will be limited to five percentage (57,) points
<br />high, -r or lower, whichever is applicable, than the Initial Interest Rate.
<br />(e) Mortgagee will perform the functions required under Subparagraphs 3
<br />(a), (b) and (c) to determine the amount of the new adjusted rate, if any. Any such
<br />new adjusted interest rate will become effective on the Change Date and thereafter
<br />will be deemed to be the Existing Interest Rate. The new Existing Interest Rate
<br />will remain in effect until the next Change Date on which the interest rate is ad-
<br />justed.
<br />4f) The method set forth in this Paragraph 3 of this Adjustable Rate Rider,
<br />for determining whether or not an adjustment must be made to the Existing Interest
<br />Rate incorporates the effects of the provisions of 24CFR 203.49(e)(1) and 234.79(e)
<br />(1) which require that changes in the Index in excess of one percentage point must
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