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ADJUSTABLE RATE RIDER
<br />(I Year Treasury Index -Rate Caps) 85-006 16011
<br />THIS ADJUSTABLE RATE RIDER is made this 11th� day of DPCamhPr iq gr__
<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 & 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 />612 W. 11th St., Grand Island, NE 68801
<br />(Property Address)
<br />Thin note coatalas provisions allowing for changes In my interest rate and my monthly
<br />paymenu. This note also limits the amount my interest rate can change at any one time and
<br />aleo the minimum and the maximum rate f most pay.
<br />ADDITIONAL COVENANTS. In addition to the covenants and agreements 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 1f1 5 _%. Section 4 of the Note provides for changes in Cite interest rate and the
<br />monthly payments, as follows:.,
<br />4. INTEREST RATE AND MONTHL Y PA YMENT CHANGES
<br />(A) Change Dates
<br />The interest rate I will pay may change on the first day of January _ , 19 87 and on that day every
<br />twelve months thereafter. Each date on which my interest rate could change is called a "Change Date."
<br />(S) 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 1 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 />Hokfer will give me notice of this choice.
<br />(C) Calcokttlen of CYaages
<br />Before each Change Date, the Note Holder will calculate my new interest rate by adding thr-ee & one / ha! � percenta$e
<br />points (3 - 5 %) to the Current Index and rounding to the nearest 1/8th of I %s, 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 amount 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) Limns •• Interest Rate Changes
<br />The interest rate I am required to pay at the first Change Date will not be greater than 12•��u or less than
<br />Q %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than twn er-ce t
<br />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 9 —__% and the maximum interest rate will never be greater than 15 ..3]
<br />W Effesclive Date of Changes
<br />My nest interest rate will become effective on each Change Date. 1 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► Nadir of Changes
<br />The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me tit:
<br />(i) the new interest rate on my loan 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 4ucsnon% about the ad(ust ment notice.
<br />Ill. CHARGES, LIENS
<br />Uniform Covenant 4 of the Security Instrument is amended to read as follows:
<br />4. C7aegest ILas. 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 rent 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 he required to discharge any such lien so long its 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 contest 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 ttwg0f; or 10 shall secure from the holder 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 />Lender shall give Borrower a notice identifying such Iten. Borrower shall satisfy such lien or take one or more of the actions set forth above
<br />within ten days of the giving of the notce.
<br />C. NOTICE
<br />Uniform Covenant 14 of the Security hhstrumew is amended m read ;u tallow,
<br />14, %*"- Pxcept (of any notice required under Applicable law m he pvvn m +urolhrr manner. tai am nolwe I,, Borrower ptovrded form till,
<br />Security Instrument shall tee given by delivetnhg it or by madinµ It by first ,.lass mail it, Hon „suer a1 Ihv I'ngk•rty Mldress or Ill such other address
<br />as 8sxrewet may designate by nollce to Lender as provafed he•rrm, and btu ..I'S I tract, ,hall be µnon h, fast class marl n: I endvt's
<br />oddreAS State(f herem of I. oich littler address 1t% 1 ender may dr'nµmoc hs non, e' !,, ji,_ ....... ,. I.n,... I.rosnled 1 „1 .n !h”
<br />Securty Instrument shall he deefiled to havr liven µ,von I” B %u n,wr, m I , nd, r wh(l :. . „nnn, • Ir.yn,�, -,I „•,n
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