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85-- 004786 ADJUSTABLE RATE RIDER (I Year Treasury Index -Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 25th _dayof _ September 19 85 NO is incorporated into and shall be deemed to amend 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 Note (the "Note") to HOME FEDERAL SAYINGS i LOAN ASSOCIATION OF GRAND ISLAND, NEBRASKA (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: 4223 Manchester, Grand Island, Nebraska 68803 (Property Address) Thin note contains provisions allowing for changes In my Interest rate and my monthly payments. Tbk sale also limits the amount my interest rate can change at any one time and Man the mi slmsm and the maximum rate 1 meet 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 .__ 10 ,5 —Va. Section 4 of the Note provides for changes in the interest rate and the monthly payments, as follows: , 4. LNTEREST RATE AND MONTHLY PAYMENT CHANGES (A) CbmW Data The interest rate 1 will pay may change on the first day of Oc tOber_ .1986 and on that day every 12 months thereafter. Each date on which my interest rate could change is called a "Change Date." (S) 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 I year, as made available by the Federal Reserve Board. 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) Cakohmi" of Chemins Before each Change Date, the Note Holder will calculate my new interest rate by adding three percentage points ( 3.0 Not) to the Current Index and rounding to the nearest I; Sth of I %e, subject to the limits stated in Section 4(D) 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 in full the principal 1 am 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 will be the new amount of my monthly payment. (D) Limits w Interest Rate Chasm 12.5 The interest rate 1 am required to pay at the first Change Date will not he greater than .___—__''a or less than 9.5 els. Thereafter, my interest rate will never he increased or decreased on any single Change Date by more than two 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 less than and the maximum interest rate will never he greater than . _l4_ (E) Effective Date of Chemins My new interest rate will become effmtive on each Change Date. I swill pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of niy monthly payment changes again. (F) Notice of Chemins The Note Holder will mail or deliver to me a notice W, ore each Change Date. The not ice will advise me of: (I) the new interest rate on my loan as of the Change Date; (ii) the amount of my monthly payment following the Change Date; (iii) any additional matters which the Note Holder is required to disclose; and (iv) the address of the association you could contact regarding any questions about the adjustment notice. B. CHARGES; LIENS Uniform Covenant 4 of the Security Instrument m amended to read as follows: 4. ClmrW likes. Borrower shall pay all taxes, assessments, and other charges, lines, 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 manner 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 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 obilgation secured by such lien in the manner acceptable to Lender; (b) shall in good faith contest such lien by, or defend against enforcement of such Ilan in, legal proceedings which in the opinion of tender operate to prevent the enforcement of the lien or forfeiture of the Propeny or any part thereof; or (c) shall secure from the holder of such lien an agreement in a form satisfactory to l.endcr subordinating such lieu to this Security Instrument. If lender determines that all it( any part of the Property is subject to a hen which may attain a priority over this Security Instrument, Lender shall give Borrower a notice identifying such lien. Borrower shall salisf, .mh lien or take one or more of the actions set forth above within ten days of thr giving of the notice. L C. NOTICE Uniform Covenant 14 of the Security Instrument is amended to read its follows: 14. NoYse. Except for any notice required under applicable law to he given in another manner, tat any nonce to Borrower prosuted urn m thl, Security Instrument shall be given by delivering it or by mailing it by first class mail to Itorrowcr at the I'rop.rus :`iddic,, or al such ocher addre„ as Borrower may designate by notice to fender as provided herein, and (b) any notice m I ender shall he arse Dy not eta„ mall 'o ; ender , address stated heroin or to such other address as Lender may designate by notice to Ifunowrr is prnctdcd lwtrm \ny noose pro. idol !,'i m urt. Security Instrument ,hall he deemed ro have horn given to Btnowrr or I ender when gnus m :hc manna dr"gnawd hrrr:n .—J