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Borrower and Leader covenant and agree 99 follows:
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in
<br />part on any installment due date.
<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable under the terms of
<br />the note secured hereby. the Borrower will pay to the Lender,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<br />(a) A sum equal to the ground rents, if any, next due, plus
<br />the premiums that will next become due and payable on policies
<br />of fire and other hazard insurance covering the property, plus
<br />taxes and assessments next due on the property (all as estimated
<br />by the Lender) less all stuns already paid therefor divided by the
<br />number of months to elapse before one (1) month prior to the
<br />date when such ground rents, premiums. taxes and assessments
<br />will become delinquent, such sums to be held by Lender in trust
<br />to pay said ground rents. premiums, taxes and special
<br />assessments; and
<br />(h) All payments mentioned in the preceding subsection of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggregate
<br />amount thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender to the following
<br />items in the order set forth:
<br />(1) ground rents. taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(11) interest on the note secured hereby;
<br />(III) amortization of the principal of said note; and
<br />(111) late charges.
<br />Any deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by the Borrower prior to the
<br />due date of the next such payment, constitute an event of
<br />default under this mortgage. The Lender may collect a "late
<br />charge" not to exceed four cents (49) for each dollar ($I) of
<br />each payment more than fifteen (15) days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
<br />3. That if the total of the payments made by the Borrower
<br />under (a) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Leader for ground,rents, taxes
<br />and assessments or insurance premiums, as the case may be,
<br />such excess, if the loan is current, at the option of the
<br />Borrowet,. shall be credited by the Lender on subsequent
<br />payments• to be made by the Borrower, or refunded to the
<br />Borrower.. i> however, the monthly payments made by the
<br />Bort-6*er under (a) of paragraph 2 preceding shall not be
<br />sufficiegt to pay ground rents, taxes and assesstents or
<br />insurance premiums, as the case may be. when the same shall
<br />becotm-c due and payable, then the Borrower shall pay to the
<br />Ls atter aay. amount necessary to make up the deficiency, on or
<br />before the date when payment of such ground rents, taxes.
<br />arkssm=tn, or ins w= premiums shall be due. If at any time
<br />the gardewer shall; twder to the Lender, in accordance with the.
<br />ptq`t�isfidns, of the note sersred hereby, full payment of the entire
<br />indebtedness dness represeaed nccreby„ 'the Lender shall; in computing
<br />the amount of such indebtedness. credit to the account of the
<br />Borrower any balance refraining in the funds accumulated under
<br />the provisions of (a) of paragraph Zhereof. If there shall be a
<br />default under any of the provisions of this instramint resulting
<br />in a public sale of the premises. covered hereby,'or if the Lender
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<br />89. 100317
<br />acquires the property otherwise after default. the tender shall
<br />apply, at the time of the commencement of such proceedings. or
<br />at the time the property is otherwise acquired. the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, as a credit against the amount of principal then
<br />remaining unpaid under said note.
<br />4. That the Borrower will pay ground rents. taxes.
<br />assessments, water rates, and other governmental or municipal
<br />charges. fines, or impositions, for which provision has not been
<br />made hereinbefore. and in default thereof the Lender may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts therefor to the Lender.
<br />S. The Borrower will pay all taxes which may be levied upon
<br />the Lender's interest in said real estate and improvements, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (but only to the extent that such Is not prohibited by law
<br />and only, to the extent that such win not make this loan
<br />usurtimii; but excluding any income tax, State or Federal,
<br />impmd (in Lender, and will file the official receipt showing
<br />such payment with Oat Lender. Upon violation of this • .
<br />undertaking, or if the Smower is prohibited by any law ro'W Qr
<br />hereafter existing fselm paging the whole or any portion of tl;;e.
<br />aforesstnd taxes, or upon the repd:ring of any court decree - •
<br />prcehlhi[ang the payment by the Borrower of any such taxes„ ©r
<br />it -w* law or decree provides that any amount so paid by dE e
<br />B, —:wer shall be credited on the debt, the Lender shall have
<br />the right to give ninety days' written notice to the owner of the
<br />premises, requiring the payment of the debt. if such notice be
<br />giveuii, "Oe said debt shall become due, payable and colte&bte at
<br />the a0miation of said ninety days.
<br />6. *t6f should I-Tie Borrower fail to pay any sum or keep any
<br />covenant provideds.for in this instrument, then the Lender. at its
<br />option, may pay or perform the same, and all expenditures so
<br />made t tail be added to the principal 3:: vv,'iiys on the sw;d
<br />note, shall be secured hereby, and shall beau interest at the rate
<br />set forth in the said note, until paid.
<br />7. That the Borrower hereby assigns, transfers and sets over
<br />to the Lender, to be applied toward the payment of the note
<br />and all sums secured hereby in rase of a default in the
<br />performance of any of the terms and conditions of this
<br />instrument or the said note, an the rents, revenues and Income
<br />to be derived from the said premises during such time as the
<br />indebtedness shall remain unpaid, and the Lender shall have
<br />power-to appoint any agent or agents it may desre for the
<br />purpose of repairing said premises and of renM*' the. same and
<br />coliecemS the rents, revenues and income, and it inay. pay out of
<br />said'Em -otnes all expenses of repairing said premises and'
<br />necessary commissions and expenses incurred in tenting and
<br />managing the same and of collecting rentals. therefrom; the
<br />balance remaining, if any, to be applied toward the discharge of
<br />said indebtedness.
<br />g. That the Borrower will keep the improvements now
<br />existing or herea.£fer erected on the property, insured as may be
<br />required from time to time by the Lender against loss by fire
<br />and other hazards, casualties and contingencies in such amounts
<br />and for such periods as may be required by the Lender and will
<br />pay promptly, when due, any premiums on such insurance,
<br />provision for payment of which has not boom made
<br />hereinbefore. All insurance shall be carried. is companies
<br />approved by the Lender and the policies and renewals thereof
<br />slWl be held by the Lender and have attached thereto Iass
<br />payable clauses in favor of and in form acceptable to the
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