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ADJUSTABLE RATE RIDER 86-- 107251 ' rH IS ADJUSTABLE RATE RIDER is made this 18th day of Deceml,er , 19_._gra_. and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument ") of the same date givenn by the usdersigned'(the "Borrower ") to secure Borrower's Adjustable Rate Note to HOME FEDERAL SAVINGS A LOAN'ANOCIATION OF GRAND HKAND, NESRMIKA (the " Lender ") of the same date (the "Note ") and covering the property described in the Security Instrument and located at: 716 S Elm Street Grand Tcland, i_ E SRAn1 (Property Address) The Net eooWn prat Wess; @low* for is the irttaat rate. H the hine"t rue iseresea, rho lnrower's nwa t)y paymems will he higher. If the isterat rase doeresoes, the Borrower's meNitly Mymesift wE be ltivw. ADDITIONAL COVENANTS. In addition to the covenant 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 S •0 9s. Section 4 of the Note provides for changes in the interest rate and the monthly payments. as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Choir Dues The interest rate I will pay may change on the 1st day of Tani eery 19 88 and on that day of the month every 12 months thereafter. Each date on which my interest rate could change is called a "Change Date." (a) The lltrla 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 one years, as made available by the Federal Reserve Board. The most recent Index figure available as of 45 days before each Change Due 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 its choice. (C) Caestlad" of Chown Before each Change Due, the Note Holder will calculate my new interest rate by adding Three & one —half percentage points r j r5 %) to the Current Index, and rounding to the nearest 1/8%. The sum will be my new interest rate. The minimum interest rate on this loan will be no less that R , n %. The maximum interest rue on this loan will be no more than 14.0 %. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay in full the principal 1 am expected to owe on the Change Date in substantially equal payments by the maturity date at my new interest rate. The result of this calculation will be the new amount of my monthly payment. (D) Effective Due of Chown My new interest rate will become effective on each Change Date. 1 will pay the amount of my new monthly payment beginning on the r rst monthly payment date after the Change Date until the amount of my monthly payment changes again. (E) Notice of Clasges The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of: (i) the new interest rue on my loan as of the Change Date; (ii) the amount army monthly payment following the Change Date; (iii) any additional matters which the Note Holder is required to disclose; and (iv) the title and telephone number of a person who will answer any question 1 may have regarding the notice. 19. CHARGES; LIENS Uniform Covenant 4 of the Security Instrument is amended to read as follows: 4. Charges; [An. Borrower shall pay all taxes, assessments, and other charges, fines and impositions attributable to the Property which may attain a priority over this Security Instrument, and leasehold payments of ground rents, if any, in the manna provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower, shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument; 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 obligation secured by such lien in a manner acceptable to Lender; (b) shall in good faith contest such lien by, or defend against enforcement of 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 part thereof; or (c) shall secure from the holder of such lien an agreement in a form satisfactory to Lender subordinating such lien to this Security Instrument. 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, Lender shall give Borrower a notice identifying such lien. Borrower shall satisfy such lien or take one or more of the actions set forth above within ten days of the giving of the notice. C. NOTICE LUniform Covenant 14 of the Security Instrument is amended to read as follows: 14. Notles. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Security Instrument shalt be given by delivering it or by mailing it by rust class mail to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by first class mail to Lender's address slated herein or to such other address as Leader may designate by notice to Borrower as provided herein. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Linde when given in the manner designated herein.