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ADJUSTABLE RATE RIDER 86- 102172
<br />(1 Year Treasury Index -Rate Caps)
<br />THIS ADJUSTABLE RATE RIDER is made this --I.St _ day of flay 19 _.86__,
<br />and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security
<br />Instrument ") of the same date given by the undersigned (the "Borrower ") to secure Borrower's Adjustable Rate Note (the "Note ") to HOME
<br />FEDERAL SAVINGS i LOAN ASSOCIATION OF GRAND ISLAND NEBRASKA (the "Lender ") of the same date and covering the
<br />property described in the Security Instrument and located at:
<br />2505 E. Seedling 11ile; 408 N. Grace; 907 W. Oklahoma; 417 -419 S. Vine, Grand Island, NE 68801
<br />(Property Address)
<br />This note contains provisions allowing for changes in my Interest rate and my monthly
<br />payments. This note also limits the amount my Interest rate can change at any one time and
<br />Man the adainsum and the maximum rate I must pay.
<br />ADDITIONAL COVENANTS. In addition to the covenants and agreement, made in the Security Instrument, Borrower and Lender
<br />further covenant and agree as follows:
<br />A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />The Note provides for an initial interest rate of A _ 75 %n. Section 4 of the Note provides for changes in the interest rate and the
<br />monthly payments, as follows:
<br />4. INTEREST RA T£ AND MO.NTHL Y PA Y,NENT CHANGES
<br />(A) Cluintle Dates
<br />The interest rate I will pay may change on the first day of may 19 87 __ , and on that day every
<br />�. _ months thereafter. Each date on which my interest rate could change is called a "Change Date."
<br />(B) The Index
<br />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
<br />Treasury securities adjusted to a constant maturity of I year, as made available by the Federal Reserve Board. The most recent Index Figure
<br />available as of the date 45 days before each Change Date is called the "Current Index."
<br />If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note
<br />Holder will give me notice of this choice.
<br />(C) Calculation of changes
<br />Before each Change Date, the Note Holder will calculate my new interest rate by adding tulo & one —ha I f percentage
<br />points ( 2 -.5 %s) to the Current Index and rounding to the nearest 1/8th of I Q'o, subject to the limits stated in Section 4(D) below.
<br />This rounded amount will be my new interest rate until the next Change Date.
<br />The Note Holder will then determine the smount of the monthly payment that would be sufficient to repay in full the principal I am
<br />expected to owe on that Change Date in substantially equal payments by the maturity date at my new interest rate. The result of this calculation
<br />will be the new amount of my monthly payment.
<br />(D) Limits on Interest Role Changes
<br />The interest rate I am required to pay at the first Change Date will not be greater than _10.75 % or less than
<br />R _ 2S e1o. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two _
<br />(2%) from the rate of interest I have been paying for the preceding twelve months. The minimum interest rate on this loan will never be
<br />less than R _ 2S % and the maximum interest rate will never be greater than
<br />(E) Effective Date of Changes
<br />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
<br />monthly payment date after the Change Date until the amount of my monthly payment changes again.
<br />(F) Notice of Changes
<br />The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of:
<br />(i) the new interest rate on my loac as of the Change Date;
<br />(ii) the amount of my monthly payment following the Change Date;
<br />(iii) any additional matters which the Note Holder is required to disclose; and
<br />(iv) the address of the association you could contact regarding any questions about the adjustment notice.
<br />B. CHARGES; LIENS
<br />Uniform Covenant 4 of the Security Instrument is amended to read as follows:
<br />4. Charger Liens. Borrower shall pay all taxes, assessments, and other charges, fines, and impositions attributable to the Property which may
<br />attain a priority over this Security Instrument, and leasehold payments of ground rents, if any, in the manner provided under paragraph 2 hereof
<br />or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish Lender
<br />all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
<br />Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument;
<br />however, Borrower shall not be required to discharge any such lien so long as Borrower: (a) shall agree in writing to the payment of the
<br />obligation secured by such lien in the manner acceptable to Lender; (b) shall in good faith conic �t such lien by, or defend against enforcement of
<br />such lien in, legal proceedings which in the opinion of Lender operate to prevent the enforcement of the lien or forfeiture of the Property or any
<br />pan thereof; or (c) shall secure from the holdet of such lien an agreement in a form satisfactory to Lender Subordinating such lien to this
<br />Security Instrument.
<br />If Lender determines that all or any part of the Property is subject to a lien which may attain a priority over this Security Instrument,
<br />Leader shall give Borrower a notice identifying such lien. Borrower shall sausly stich hen or take one m more of the actions set forth above
<br />within ten days of the giving of the notice.
<br />C. NOTICE
<br />Uniform t :ovettant 14 of the Security IflStrnDIC111 Is amended to read us tutkrw s:
<br />14. Notice. Except for any notice required under applicable law In hr green m onrnhcr manner, (a) any nonce lu Borrower ptuvlded fur in Ihn
<br />Sc :urtty Instrurnenl shall he given by delievong it of by mailing a by hat loss nrul t, Bonowr, at the I't q,ene ,Wdrecs a, ar uirh „Ihci yddre..
<br />as Bonuwer may aeultnatr by rn.>lire to l ender ay prodded itc•reiu, :and (hl ;u,y mm,e I„ 1 eadc, .hall N. Xlcen Lt fin! lay. Iliad a, I vndvt
<br />addtess'late.! heart m rv, 01 .011r. a:ldrev� a +..ea<ic, muy (Irstgnaw t" rn Ilm-'er a !,• ,. i,.lyd hrrnn 111y non•.r 111 " "de,! 1- m :hi,.
<br />'W'to w, lnstnrnrcnt ,hall tx• deemed ,u 1,4- heer', gi. en t., liurrr,wer - I cnde, 'he., u.,. en ui Ihr manner druFnawd h«•rm
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