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Borrower and Lender covenant and agree as follows:
<br />1. That Borrower will pay the indebtedness. as hereinbcforc
<br />provided. Privilege is reserved to pay the debt in whole or in part on
<br />any installment due date.
<br />2. That, together with, and in addition to, the monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby, the Borrower will pay to the Lender, an the first day of each
<br />month until the said note is fully paid, the following sums:
<br />(a) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will next become due and payable on policits d fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (all as esdmated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (1) month prior to the date when r ground
<br />renm premiums, taxes and assessments will (become dergwat. sunk
<br />sums to be Wd by Lender in trust to pavf sWicl groundr.wio&
<br />premiums. gees and special a smemteZ.,w'd
<br />(b) All pawm!xe'hr,�wli!JW01ib Lt-- p�-? ng subsoctit3rn��J`lftis
<br />paragraph aiod 14 g,*,> € Y:s }W 16e mom: w4kx the note tt uretl
<br />hereby shalt kii sYgea 2t*Wgf., and titre. aL*P4 ste amount thereof
<br />shall be paid, by t:ke &-c rc war =&. t'ram'k•txa-a single payment ta-be
<br />applied by ft i:. coder tii. 6. Eolowi.ag q2erz m the order W. Z fix-r.'.
<br />6U) grou.ttd rents, taxes, assessments, ffremnd other hazard insur-
<br />ance premiums;
<br />(11) interest on the note secured hereby;
<br />(111) amortization of the principal of said note; and
<br />(iV) late charges.
<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />a-- may: :twe an evrnt of default under this
<br />mortgage. The Lender may collect a "late charge" not to exceed four
<br />ants (46) for each dollar (S1) of each payment more than fifteen
<br />(I5) days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the amount of payments
<br />actually made by the Lender for ground rents, taxes and assessments
<br />or insurance premiums, as the case may be, such excess. if the loan is
<br />current, at the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower, or
<br />refunded to the Borrower. If, however. the monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents. taxes and assessments or insurance
<br />premiums, as the case may be, when the same shalt become due and
<br />payable, then the Borrower shall pay to the Lender any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. if at any time the Borrower shall tender to
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby,
<br />the Lender shall, in computing the amount of such indebtedness.
<br />credit to the account of the Borrower any balance remaining in-the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereof.
<br />if there shall be a defauh under any of the provisions of this
<br />instrument resulting in a public sale of the premises covered hereby,
<br />89- 100325
<br />or if the Lender acquires the property otherwise after default, the
<br />l.xnder shall apply, at the time of the commencement of such
<br />proceedings, or at the timt the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said note.
<br />4. That the Borrower will pay ground rents, taxes. assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />S. The Borrower will pay all taxes which may be levied upon the
<br />Lender's interest in said real estate and improvements, and which .
<br />may be levied upon this instrument or, film debt secured 1bereby (ba
<br />only to the extent that such. is trot gr,RIrJ iced by lave bid rrndy W,
<br />extent that such will rkm imsRe• tJiis l "I gsuriwsh d z 8WF
<br />income tax, State or Fed tmh.i:arr.I owl 0i`U nfet ;• sumo wr TK f&-- vite
<br />official tuxipt showing-such l;?aXnsOW-rvitbr= fhk 11MUMe ., l ee
<br />*itflaritrttt (if this under kiri$, or i ,dw 13tnrrawer i� p�h> 1=^jY ata9F
<br />lkvw rninvcti ceaftee a erg from 3raying the ti>Ffisrslk: ins aiip potiiivm,
<br />c f ate eiip_ iai; taxes„ or, aMn the rendering of amy, wiirt decree
<br />prfhibif: Lv,"PJie-paymcnt;f3e *)he Borrower of any sut_z,taxes -br if
<br />such law. or decree providif s that any amount so paid l?y the
<br />Borrower shall be credited: on the debt, the Lender shall have the'
<br />right to give ninety days Written notice to the owner of the premises,
<br />requiring the payment of the debt. If such notice be given, the said
<br />debt shall become due. payable and collectible at the expiration of
<br />said ninety days.;
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this instrument, then ttte Lender, at its
<br />option, may pay or perform the same. and all expenditures so made
<br />shall be added to the principal sum owing on the said note, shall
<br />be secwed hereby; and shall bear interest at the rate set forth in the
<br />said note, until paid.
<br />7. That the Borrower hereby assigns, transfers and sets over to the
<br />Lender, to be applied toward the payment of the note and all sums
<br />secured hereby in case of a default in the performance of any of the
<br />terms and conditions of this instrument or the said note. all the rents,
<br />revenues and income to be derived from the said premises during
<br />such time as the indebtedness shall remain unpaid, and the Lender
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rents, revenues and income. and it may pay out of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />same and of olectuag rentals therefrom; the balance remaining, if
<br />any. to be applied toward the discharge of said indebtedness.
<br />8. That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />time to time by the Lender against loss by fire and other hazards.
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by the Lender and will pay promptly. when due,
<br />any premiums on such insurance, provision for payment of which
<br />has not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the Lender and the policies and renewals
<br />thereof shall be held by the Lender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. in
<br />Page 2 or 5 HUD- 9214 3UJ -1
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