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<br />0908425-5
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<br />CAPPED ONE-YEAR AIM RIDER TO THE
<br />MORTGAGE/DEED OF TRUST/TRUST INDENTURE
<br />
<br />84c-1 002436
<br />
<br />r
<br />
<br />NOTICE:
<br />ALLOWING
<br />RESULT IN
<br />PAYMENTS.
<br />
<br />THIS SECURITY INSTRUMENT SECURES A NOTE WHICH CONTAINS A PROVISION
<br />FOR CHANGES IN THE INTEREST RATE. INCRF:ASES IN THE INTEREST RATE MAY
<br />HIGHER PAYMENTS. DEcREAStS IN THE INTEREST RATE M.>\Y RESULT IN LOWER
<br />
<br />This Rider is made this --ll!L day of Mar 1984 . ....' . . . and is
<br />incorporated into and shsll be dee~d to amend and supplement the MOrtgage/Deed of
<br />Trust/Trust Indenture (the "Security InstrulIK!nt") of the same date given: bY'the
<br />undersigned (the "Borrower") to secure Borrower's Note to Tower Financial; Inc.
<br />(the "Lender") of the sallie date (the "Note") and covering the property"dtlscribed
<br />in the Security Instrulllent and located at:
<br />
<br />116 ViA Como, Grand Island. NebrasKa 68801
<br />(Property Address)
<br />
<br />MODIFICATIONS. In addition to the covenants and agreements made'in the:', SiocurHy
<br />Instrument. Borrower and Lender further covenant and agre:eas follows:
<br />
<br />
<br />A. INTEREST RATE AND !oI)NTHLY PAYMENT CHANGES
<br />
<br />The Note has an initial interest rate of 10.87.5 %. Theintereatr",te:maX',be
<br />increased or decreased every 12th month on each .'Change Date", as; desc:ribid*~~,th.'
<br />Note. Changes in the interest rate are governed by the level ,of . the, Index: as:
<br />defined in the Note. The Index is the weekly average yie1donUid,t;eli/,~t..t~s:
<br />Treasury securities adjusted to a constant maturity of one year, as pub1ilibed:..l)y ,.
<br />the Federal Reserve Board. The maxilllUlll change in the interest rate., at any' o\1e,,,,,
<br />time is 2 percentage points. The maximum interest rate is 14.990 %.
<br />
<br />The monthly payment amount may be adjus.ted every 12th month to. talr.e...effeet on
<br />the month following each Change Date as described in the Note. The new: monthly'
<br />pa:y1llent a_unt is based en the interest rate in effect on the Change Date; and will,
<br />remain in effect until the month fellowing the next succeeding Change Date',
<br />
<br />B . LOAN CHARGES
<br />
<br />If the lean secured by the Security Instrument is. subject. to a laww~cb's.l.It~"
<br />maxi_ interest rates and loan charges and that law is fin.:lly interpretejll~;
<br />tha,t the intereat or other lean charges collected or to be collect~d:in>cqJ1t\l!iC1;t:i9,n\'
<br />with the loan would eJ!:ceed penutted limits. then; (i) the interestrate'ol:'a~J"
<br />such loan charge shall be reduced to. the pemitted limi.t; and (iital\)"'s~:
<br />already cellected fro.. Borrower which exceeded permitted. HlIlits will ~:refL\ln<ied.
<br />to Borrower. Lender may choese to make this refund by reducing the principal:qr.
<br />the Note or by making a direct payment to. Borrower.
<br />
<br />C. CONVERSION FEATURE. The Note contains tbe fo.Uowing prov1.sio!\fl.permitting
<br />conversion to a fixed interest rate and payments:
<br />
<br />(i) Provided Borrower is current with re,spect to all pllymenLsdlleon. t~,..Note
<br />for twelve 1II9ntha prio.r to the flrs.t, second, third, orfourthChanliil:.,DAte..
<br />Rot'rowe.r lSay, at RorrClwer's eption, lIIOliify the repa,.nt ter'll!l;:('of\:tbll,
<br />indeb.tedneas secured hereby on the first, second, thi,rd, or, fQurtb,Ctt.ngll
<br />Date (definlild in paragraph 4 of the Note). At that. time. Bor:rowar'may
<br />convert the adjustable rate loan evidenced by the Note. into a filted
<br />interest rate loan to be fully repaid in """,,1 1II9nthly payaentll of
<br />princip~ and interest over the remaining term of this lean (i.e., 29, 28,
<br />27, er Z& years, depending en the conversien date selected).
<br />
<br />
<br />(ii) Exercise of Fixed Rate Option.
<br />
<br />(a) Re!luest for Quotation. If Borrower is interested in converting this
<br />loan, BorrOWer llluSt notify the Lender, in writing, that Borrower
<br />wishes to have a fixed rate and payment quoted.. Borrowe,r lllUSt send
<br />this requeSt for quotati"" aiter receiving a Notice. of Periodic
<br />Alijustment un4er Section 4 of the Note and at least 30 days before the
<br />Change Date.
<br />
<br />(b) Qu;:>tation. When the Lend.er rece.J.ves Borrower's request for quotation.
<br />t~~ Len@r wt11 send 'Borrr.-,,,r .. noti"e quoting the fixed r.te and
<br />P4YMnt being offered lInd the conversion fee ",hJ.~h 8orrower will have
<br />to pa, J.f 80rro,..r d4l'cidea to cOnvert. The Conversion fee will not
<br />exceed 2.000 % of th_ unpaJ.d princip.l balan.ce of this loan on the
<br />Chanae .~ 'the Lender will send thia quotatJ.OIl at lea$t 20 but no
<br />w.o~e than 30 day. before the Change Date.
<br />
<br />TMC-OZ9 (q~) (Page I)
<br />Rev 2/84 (CAP 5)
<br />
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