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Borrower and Lender covenant and agree as follows:
<br />L That Borrower will pat the indebtedness, as hcrcinbefore
<br />provided. Privilege is resefwii 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. on 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 policies of fire
<br />hazard and other insurance covering the property, plus taxes and
<br />assessments next due on the property (all as esrimared by Ike Lender)
<br />ICU all sums already paid therefor divided by the numbcr of months
<br />to elapse before one (1) month prior to the date when such ground
<br />rents, premiums, taxes and assessments will become deliquent. such
<br />sums. to be held by lender in trust to pay said ground rents,
<br />premiums, taxes and special assessments; and
<br />(b) All payments mentioned in the preceding subsection:of this
<br />paragraph and. aJ4 payments to be made under the note secured
<br />hereby shall be added tided together, and the savregate amount thereof
<br />shag be Paid by the Borrower each month in a single payment to be
<br />Wlh.Ad by the Lender to the ftillsaving items in the order set firrth:
<br />(1) ground rents, taxes, assessments, fire and other hazard'insur-
<br />ance premiums;
<br />(if j.ioter0!4:i3mthe note secuivii hereby;
<br />(�11Y i=ftization of the principal of said note; and
<br />(iv) late chat !s.
<br />Any deficiency in the amount of such aggregate monthly pa) rnent
<br />shall, unless made good by the. Borrower prior to the dire d,:tc cf t„c
<br />OW such Payment, constitute as event of default under this
<br />mortgage. The Lender may COW a,'late charge" not to exceed four
<br />cents (44) for each dollar M) of each payment more than fifteen
<br />(15) 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 can may be, such excess, if the loan is
<br />current, at the option of the 6'orrower, shali be credited by the
<br />Lerder on subsequent payments to be made by the Borrower, or
<br />refunded to the Borrower. If, however, the monthly payments made
<br />blf the Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />pr=cums, as the case may be, when the same shall become due and
<br />pgablie. 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 timp 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 [bier shall: in computing (he 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 default under any Of-the provisions of this
<br />instrument resulting in a public sale of the premises covered hereby,
<br />Of if the ! ender acquires the pft)Nrty otherwise after default, the
<br />Lender shall apply, at the time of the commencement of such
<br />proceedings, or at the time 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, fixes, or
<br />impositions, for which provision has not been -made hereinbefore,
<br />and in default thereof the Lender may p>iy:llra seine. and that the
<br />Borrower will promptly deliver the offieinl.rrarrip(salrrrefor to the
<br />Lender.
<br />5. The Borrower will pay all taxes %Vhii Wmay be levied upon the
<br />Lender's interest in said. real-estate and improvements, and which
<br />may be levied upon this instrument or the debt secured hereby (but
<br />only to the extent thatsuclt:is not prohibited by law and only to the
<br />extent that such Will nat,make this loan usurious), but excluding any
<br />income tax, State or FedaWi imposed on Lender, and will file the
<br />official receipt showing;such.payment with the Lender. Upon
<br />Violation of this undertaking, or if the Borrower is probri.+ated by ate),
<br />lacy now or hereafter existing From paying the whole ;ca aoy purdoz
<br />of the aforesaid taxes,.ar upon the rendering of any court decree
<br />"prohibiting the payment by the Borrowee oQany such taxes, or if
<br />such law or decree provides that any auuennmi so paid by the
<br />Borrower shall be credited do the deck: t:`p Under shall have the
<br />right to give ninety days' written notice va tote 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 colfectible at the expiration of
<br />said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep any
<br />cm -enant provided for in this instrument, then the Lender, at its
<br />option, may pay or Derfornz the same, and all excrnditu= so made
<br />shall be added to the principal sum owing on-the said note, shall
<br />be secured hereby, and shatt 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 ind.ineome, and it may pay out of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses imcurred.in renting and managing the
<br />same and of collecting rentals therefrom; the balance remaining, if
<br />any. to be applied toward the discharge of said indebtedness.
<br />S. That the Borrower wilt 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 hereinbet°are. All insurance shall be carried in
<br />companies approved by rbe Fender and the policies and renewals
<br />thereof shall be held by ,cite !:ender and have attached thereto loss
<br />payable clauses in favor afand in form acceptable to the Lender. In
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