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5 00260! ADDENDUM TO ADJUSTABLE RATE /GRADUATED PAYMENT RIDER ( Fixed Rate Conversion Option I 1 THIS ADDENDUM TO ADJUSTABLE RATE RIDER OR GRADUATED PAYMENT RIDER is made this .301,11.. day of .........May ................. 19 ..85., and is incorporated into and shall be deemed to amend and supplement the Adjustable Rate Rider or Graduated Payment Rider (the "Rider ") to the Mortgage, Deed of Trust or Security Deed (the "Security Instrument "), each dated the same date as this Addendum and given by the undersigned (the "Bor- rower") to secure Borrower's Adjustable Rate Note or Graduated Payment Note, with Addend m T Adjustable Rate /Graduated Payment Note, to ... Six per. J. RX...No�tgage,,.Inc,......i'.0. Box 168, Gran Is ..and', Diebrask�.. b88A3 ................... ............................... ......... ........I...... ( the "Lender") and dated the same date as this Addendum ( the "Note "), covering the property described in the Security Instrument and located at: _.. _....910.....Er...Phoenix.,. Grand Island NE..�?�.$Q� .............. ............................................. ............................... .... I .......................,.. ,. IProperty Address ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument and the Rider. Borrower and Lender further covenant and agree as follows: A. FIXED INTEREST RATE OPTION The Note provides for the Borrower's option to convert from an adjustable interest rate to a fixed interest rate, as follows: Optima to Convert to Fixed Rate 1 have a Conversion Option which 1 can exercise unless I am in default or this Section A I or Section A3 below will not permit me to do so. The "Conversion Option" is my option to convert the interest rate I am required to pay by the Note from an adjustable rate to a fixed rate. The conversion can only take place on the third, fourth or fifth Change Date. Each Change Date on which my interest rate can convert from an adjustable rate to a fixed rate also is called a "Conversion Date." I can convert my interest rate only on one of these three Conversion Dates. If 1 want to exercise the Conversion Option, I must first meet certain conditions. Those conditions are that: (a) I must give the Note Holder notice that 1 am doing so at least 15 days before the next Conversion Date, (b) on the Conversion Date, 1 am not in default under the Note or the Security Instrument; (c) by the Conversion Date, I must pay the Note Holder a conversion fee equal to one percent (1.0%) of the unpaid principal I am expected to owe on that Conversion Date plus U.S. S ....... 10-Q- 00 ...... .... .......... : (d) by the Conversion Date, if an appraisal report is required by Section A3 below, the Note Holder has received the report and I have paid the appraisal fee and any amount necessary to reduce unpaid principal; and (e) 1 must sign and give the Note Holder any documents the Note Holder requires to effect the conversion. 2. Calculation of Fixed Rate My new, fixed interest rate will be equal to the Federal National M1lortgagc Association's required net yield for 30- year, fixed rate mortgages covered by 30-day mandatory delivery commitments in effect as of the date 45 days before the Conversion Date, plus five - eighths of one percent (0.6250. If this required net yield is not available, the Note Holder will determine my interest rate by using a comparable figure. 3. Reduction of Principal Balaace Before Conversion; Appraisal If the unpaid principal I am expected to owe on the Conversion Date will be greater than the original principal amount of my loan, the Note Holder may require an appraisal report on the value of the property described in the Security Instrument. The appraisal report must be prepared by a qualified appraiser chosen by the Note Holder 1 will pay the Note Holder a reasonable fee for this appraisal report The unpaid principal I am expected to owe on the Conversion Date could be an amount greatti than 95r i of the appraisal. report's stated value of the property securing my loan. If so, I cannot exercise the Conversion Option unless 1 pay the Neu Holder au amowt sief8eient to reduce my unpaid principal to an amount ""1 10 95% of the stated value of ibe property. 4. Detertwination of New Payment Amount If I choose to exercise the Conversion Option, the 'Mute Holder will determine the amount of the monthly payment that wax.,' i be sufficient to repay the unpaid principal I am expected to owc on the Conversion Date in full on the mature± date at my new fixed interest rate in substantially equal payments 'T'he result of this calculation wtII be the new amours of my monthly payment. Beginning with my first monthly payment after the Conversion Date, I will pap the new amount as my monthly payment until the maturity date B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTE:REIST IN BORROWER If Borrower exercises the Conversion Option under the Note as stated in Section A of this Addendum To Adjustable Rate /Graduated Payment Rider, the amendment to Uniform Covenant 17 of the Security Instrument contained in the Rider shall coast to be in effect, and the provisions of Uniform Covenant 17 of the Security Instrument shall instead be in effect. as follows. Trsmftr of the Prolit"yor a Bir" el Interest in Borrower, If ail or any pan of the 11ropert% or any rttereo in it i, sold or transferred (of if a beneficial interest In Borrower is sold or transferred and lioitoAef i� not a 0131ural tVtWll ) without Lender's prior written consent, Lender rTtYy, at its option, require Immediate rm4nlcilt it) !fill 01 all sums wt wiled by this Security Instrument. However, this option shall not be Cec161Scd hs Vender d eketutiv „ pwhibitcd bs tedetal Li" ors of the date of this security Instrument /IAED PAtt 01117" VUCURYY INST NTI- -t Year Tiaaeury imisx - -.... °Fannie valor uniform instrument form 3109 11 84