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<br />Borrower sad Leader covenant and agree as follows:
<br />1. That Umww will pay the ladebeadsen. as b"abefore provid•
<br />d. Lhtivilep b vowed to pay the debt Its whole or to part on nay In-
<br />stalisaeat dos due.
<br />L That, together with, and la addition to, the monthly payments
<br />of principal aad ,stand payable under the terms of the ante eeottrd
<br />beteby, the Borrower will pay to the Leafier. on the first day of each
<br />moat maw the am am Is WUy paid, the following sum::
<br />(a) .Amount suffickat to pmvWa tU holder hereof with funds to
<br />pay the nest Mortim IMWMoa preadu s If thle instrtameat and the
<br />nw * nousei busby are Iwnd. or a moatbly charp (in has of a
<br />es*rcg w h wtrence prsasium) if they an held by the Secretary of
<br />Housing and U'rbata Development, as follows:
<br />(1) If and so long as sold tote of even date and this Inorumant
<br />are insured or are voloom d under the provisions of the National
<br />Housing Act, an amount adfidaat to accumulate In the heads of the
<br />holder na (1) at=& prior to its dire date the annual mortpp (a•
<br />suraaae premium tb order to provide such holder with funds to pay
<br />such premium to'.tln Secretary of Housing &d Urban Development
<br />pussuaat to the National Housiq Act, as amended, and appl mMo
<br />Rmulatioos tbustunder: or
<br />(II) U and.solong as said note of aim date and this instrument
<br />we held by the Secretary of Houd" and Urban DAvelopmemt, a
<br />monthly Chun (ice, Jim of a w0 4M lwwoe areseiam) which shall
<br />be is an amouavqual to a*4welfth (1112) of one -half (112) pus em-
<br />turn of the average outs, oft belaace due on the note computed
<br />• without taking Utra seoount deliagwades or prepayments.
<br />(b) A sum e4gcsal to the ground rents. 9 any, next due, plus the
<br />premiums that will nest became due and payable on policies of fin
<br />and other haurd Insurance covering the property. plus taxee and
<br />asasaments nowt due oa the Peeganty (elf a exttmeeed by she !.ender)
<br />lest all hint airady paid Maafor divided by the number of months
<br />to okpn before ores (1) month prior to the date when such ground
<br />facts, pcaa usnot taus and assessments will become delinquent, such
<br />sums to be held by Lender Is trust to pay said ground rents.
<br />premiums. tames and special assessments. and
<br />(c) All payments meoUaned in the two preceding subsections of this
<br />paragraph and all payments to be made under the note second
<br />busby shall be added together. and the aggregate amount thereof
<br />sball be paid by the Borrower each mouth in a single payment to be
<br />spOW by the Larder to the &&wing items In the order set forth,
<br />(I) premium charges under the contract of insurance with the
<br />Secretary of Housing and Urban Derve)opmaet. or monthly charge (in
<br />Now of asoragoge insunma prasakim), as the case may bet
<br />(II) ground rents, taxes. assessments, fire and other heard in-
<br />attance premiums;
<br />: (LA) intaesot on the note secured hereby.
<br />(1V) amortization of the principal of said note: sad
<br />M lane charger.
<br />.. Any daficioeay is the & ao m of stub agpagaoe mouddy payment
<br />A4 Udw attend* good by the Borrower prior to the du# fists of do
<br />stmt saich paynost, aoostituts an event of do&& cadet' dds Moet-
<br />pga. The Lander may collect a "late charge' not to exceed kw ants
<br />(10) for each dollar (i1) of eats payment mace than fifteen (13) clays
<br />In arrears to cosec the cam apetse Involvedl.ttn handling delinquent
<br />payments.
<br />3� lbat if the fatal of the payments made by the Borrower under
<br />ft of paragraph 2 pr*oedtag sW erased the amount of payments no-
<br />Nally mad* by the Leader for ground seats, taxes and adeau000ts or
<br />Insurance pntafaaos. a the ar why be, such ewces, if the Lan is
<br />aeries, at dio'eptios of the Dorm", shall be credited by the
<br />Ladder ce sdraquw psymew to be made by the Bwmm. or
<br />"die d*d to as Borrower. U. however, th* monthly payasaats made
<br />by the Barmrtir: under (b) of paragraph ! pig tiltal3 wet be suf .
<br />sloes to pay' Sm usd scab, tarn and asommeats or fassweoee
<br />peeasiums, d tea can may be. wbsa the ssaae d all becme due and
<br />payable. than the llorrowe r shall pay to the Lt esdw say aooust
<br />tseeasasy to make up the dollefeocp. on a before the dabs vAm pay-
<br />Intent of rush ground seals, taxes. aanasmeeb, or Iasurwv $rwdams
<br />shall be due. if at any stmt the Borrower stall tender to glen Lander.
<br />In accordance with the provisions of the note secured hereby. full pay -
<br />meat of the entire indebtedow reprwtsd thereby, the lender shall.
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<br />89-- 100315
<br />In computing the amount of such indebt dncss, credit to the account
<br />of the Borrower a)I payments made under the provisions of (a) of
<br />paragraph 2 hetoof which the Leader has not become obligated to pay
<br />to the Secretary of Housing and Urban Development and any balance
<br />reetatNag in the funds accumulated under the provisions of (b) of
<br />petagrspb 2 bored. U there shall be a default under any of the provi•
<br />sions of this Instrument resulting in a public sale of the premiss
<br />ooverd hereby, or if the Lender acquires the property otherwise after
<br />default. the Lander shall apply. at the time of the commencement of
<br />such proceedings. or at the time the property is otherwise acquired,
<br />the balance then remaining in the funds accumulated under (b) of
<br />paragraph g praceding, as a credit against the amount of principal
<br />than remaining unpaid under said note. and shall properly adjust any
<br />payments which shall have been made under (a) of paragraph 2.
<br />4. That the Borrower will pay ground rents, tarns, assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impoeitiora. for which provision has not been made herelubefore, and
<br />in default thereof the Lender may pay the same. and that the Bor-
<br />rower will promptly deliver the official receipts therefor to the
<br />Leader.
<br />3. The Borrower will par aft taxes which may be levied upon the
<br />Leader's intated in said teal estate and improvements. and which may
<br />be levied up= this IMcument or the debt secured hereby (but only to
<br />the extent than vvh is not profnibited by low and only to the extent
<br />that such will not make this: Doan usurious), but excluding any income
<br />tax, State or Federal. impxad an Lender, and will file the official
<br />receipt showing :tech paymerA with the Lender. Upon violation of this
<br />undestakiag, or if the Borrower Is prohibited by any taw now or
<br />hereafter aisting from paying the whole or any portion of the
<br />afaroaaid taxes, or upon the rendering of any court decree prohibiting
<br />the payment by the Borrower of any such taxes. or if such law or
<br />decree provides that any amount so paid by the Borrower shall be
<br />credited on the debt. the Lender shall have the right to give ninety
<br />dayi writtea ursAor to the owner of the premim, requiring the pay -
<br />mat of' the dAL if such notice be given, the said debt shall become
<br />d4_ pajiable and collectible at the expiration of said ninety days.
<br />8.' That should the Borrower fail to pay any sum or keep any cove•
<br />want provided for in this instrument, then the Lender, at its option.
<br />may pay or perform the same, and all expenditures so made shall be
<br />added to the principal sum owing on the above note. shall be secured
<br />hereby, and shall bear interest at the rate set forth in the said note,
<br />uatit paid.
<br />T. That the Borrower hereby assigns, transfers and sets over to the
<br />Leader; to be applied toward the payment of the note and all sums
<br />secured hereby W ease of a default in the performance of fay.e7f dr'..:
<br />trines and conditions of this instrument or the said note, ail the rents,
<br />revenues and income to be derived from the said promises during such
<br />time as the indebtedness shall remain unpaid. and the Leader shall
<br />have power to appoint any agent or agents it may desire for the put.
<br />pass of repairing said premises and of renting the same and collecting
<br />the rents. revenues and income. and it may pay out of said Incomes
<br />all expanses of repairing said premises and necessary commissions and
<br />apeow incurred In renting and managing the same and of collecting
<br />rentals theref amt the balance remaining, if any. to be applied toward
<br />the discharge of said Indebtedness.
<br />S. That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property, Insured as may be required from
<br />liras to time by the Lender apt'ast loss by fire and other hazards .
<br />essualtis and conitoleacie s in such amounts and for such periods as
<br />may be required by the Leader and will pay promptly, when due,
<br />any premiums on such insurance provtsfam for payment of which itas
<br />not bum made bareinbefore. lUd: insurance shall be carried fn. tom-
<br />pstWis approved by the leader end the policies and renewals thereof
<br />shall be hold by the Lender and have attached thereto loss: payable
<br />clauses in favor of and in form acceptable to the lender. in event of
<br />Icos Borrower will give immediate notice by mail to the Render, who
<br />may make proof of loss if not made promptly by Borrower, and each
<br />insurance company concerned is hereby authorized and directed to
<br />make payment for such Iola directly to the Lender 1wesdi of to the
<br />Borrower and the Leader jointly, and the Insurance protxeds, or any
<br />part thereof, may be applied by the Lender at its option either to the
<br />reduction of the Indebtedness hereby secured or to the restoration or
<br />repels of the property damaged. In event of fore blosure of this instru-
<br />909 or other transfer of titte'to the mortgaged property in extinguish•
<br />meat of the indebtedness secured hereby, all right, title and Interest of
<br />the Borrower In and to any Insurance policies then in force shall pass
<br />to the purchaser or grantee.
<br />Pape 2
<br />9. That as additional and collateral security for the payment of the
<br />note described, and all sums to become due under this instrument, the
<br />Borrower hereby assigns to the Lender all profits. revenues, royalties.
<br />HUD- 921430T
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