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rate from an adjustable rate to a fixed rate is called the "Conversion Date ". I ca: convert ivy interest rate only once. If I want to exercise the Conversion Option, I must meet certain conditions. Those conditions are that: (i) I meet give the Note Holder notice that I an doing so at least 30 days before the Conversion Date; (it) on the Conversion Hate, I an not in default under the Note or the Security Instrument; (iii) at the ties I give notice to convert, I east pay the Rote Holder a conversion fee of U.S. 9500.00; (iv) I meat sign and give the Note Holder any donfenis the Rote %older requires to effect the conversion; and (v) I meet qualify based on the Federal Rose Loan Mortpge Corporation's converaion guidelines. (B) Calculation of Fixed Rate (1) Lonna Under $153,101 My new, fixed interest rate will be equal to the Federal Hems Loan Mortgage Corporation's required net yield for: (1) if the original term of this Note is greater than 15 years, 30 -year fixed rate mortgages covered by applicable 60 -day mandatory delivery commitments in effect as of the date 30 days before the Conversion Date, plus three- eighths of one percent (0.3751), or (11) if the original term of this Note is 15 years or less, 15 -year fixed rate mortgages covered by applicable 60-day mandatory delivery commitments in effect as of the date 30 days before the Conversion Date, plus three - eighths of one percent (0.3754). If this required net yield cannot be determined because the applicable commitments are not available, the tote Holder will determine my interest rate by using a comparable commitment that is available on such date. The Conversion Rate will be rounded up to the nearest one- eighth percentage point (0.1251). (2) Loans Over $153,100 My new, fixed interest rate will be determined by adding one -half of one percent (1 /21) to the interest rate being offered by Occidental Nebraska Federal Savings Bank on loans in excess of the FHLMC maximum loan amount (Jumbo Loans) on the date the notice to convert is given. (C) Determination of New Payment Amount If I choose to exercise the Conversion Option, the Note Holder will determine the amount of the monthly payment that would be sufficient to repay the unpaid principal I am expected to owe on the Conversion Date in full on the maturity date at my new fixed interest rate in substantially equal payments. The result of this calculations will be the new amount of my monthly payment. Beginning with my first monthly payment after the Conversion Cate, I will pay the new amount as my monthly payment until the maturity date. C. TRANSFER OF THE PROPERLY OR A BENEFICIAL IRTEREST IN BORROWER 1. Until Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate Rider, Uniform Covenant 17 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower Is not a natural person) without Lender's prior written consent, lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender will charge a fee of U.S. $500.00 as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the premises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the note and this Security Instrument unless Lender releases Borrower in writing. If lender exercises the option to require Immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or sailed within which Borrower must pay all sme secured by this Security Instrument. If Borrower fails to pay these sue prior to the expiration of this period. Lehr say invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. If Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable !late Rider, the amendment to Uniform Covenant 17 of the Security Instrument contained in Section Cl above shall then ceaae to be in effect, and the provisions of Uniform Covenant 17 of the Security Instrument shall instead be in effect, as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any Interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower 1s not a natural person) without Lender's prior written consent, Lender may, at Its option, require Immediate payment in full of all ass secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise to prohibited by federal law as of the date of this Security Instrument. If lender exercises this option, Lander shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all era secured by this Security Instrument. If Borrower fails to pay these sea prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Lletreuaer. BY SICm1NC WWW, Borrower acer is and agrees to the terms and covenant¢ contained in this Adjustable Rate i (Seel) apt "1. Schmidt Borrower n f,ltry4sirt K . tor�+t,tjtll rn3w+