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r L ADJUSTABLE RATE RIDER 0 Year Treasury Index - Rate Caps - Fixed Rate Conversion Option) =19 AD.IDSTABLI RATE RIDER is fade this 20th day of November , 19 87 , and is incorporated into and shall be deemed to aend 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 Mote (the "Note") to Occidental /Nebraska Federal Savings Bank (the "Lender ") of the sae date and covering the property described !n— the ISCUrItY Instrument and located at: 4426 Drake Lane Grand Island NE 68801 (Property Address) THE NOTE CONTAINS PR0VISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MINIMUM AND MAXIMUM RATES THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 7.8750 . The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of December , 19 88 , and on that day every 12th month thereafter. Each date on which my interest rate could change is called a "Change Date ". (B) The Index Beginning with the first Change Date, my 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 Hoard. 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 Bolder will calculate my new interest rate by adding two and for —fo rths percentage points ( 2.750 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one - eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(3) 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 a 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) Limits on Interest Rate Changes The interest rate I an required to pay at the first Change Date will not be greater than _9.875 % or less than 5.875 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2%) from the rate of interest I have been paying for the preceding 12 months. My Interest rate will never be greater than 13.875 %. (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 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 a and also the title and telephone number of a person who will answer any question I may have regarding the notice. B- FIXED INTEREST RATE OPTION M18 Note provides for the Borrower's option to convert from an adjustable interest rate to a fixed interest rate, as follow: S. FIXED INTEREST RATE OPTION (A) Option to Convert to Fixed Rate I have a Conversion Option which I can exercise unless I me in default or this Section 5(A) will not permit we to do so. The "Conversion Option" is my option to convert the interest rate I an required to pay by this Note from an adjustable rate to a fixed rate calculated under Section S(B) below. The conversion can only take place anytime on a date specified by the Note Holder during the period beginning on the first Change Date and ending on the fifth Change Date. The date on which I elect to convert my interest •009 -02