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Borrower and Leader covenant and agree as 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 sutras:
<br />(a) A snm 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 ias. Wince covering the property, plus
<br />taxes and assessments nest? -luz on the property fall as esdinared
<br />by tae Lenders less all sums ahead.} paid therefor divided by the
<br />number• of months to elapse before oce (r) u onth prior to the
<br />date when such ground rents, preriums, taxes and assessments
<br />will become delinquent, Stich sums to be held by Lender in trust
<br />mpay said ground rents, premiums, taxes and spedz%
<br />mtxsrt:enu; and
<br />(b) 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 />(Ill) amortization of the principal of said note; and
<br />(IV) late charges.
<br />!L^.y deficient -; in the amount. of such ag cgate -Alortilily
<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 (4¢) 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 Lender for ground rents, taxes
<br />and assessments or insurance premiums, as the case may be,
<br />0kh excess, if the loan is c 4irent, at the option of the
<br />.Borrower, shall be credited by the Leader on subsequent
<br />payments to be made by the Borrower p or refunded to the
<br />Borrower. If, however, the moo ly payments made by the
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or
<br />insurance premiums, as the case may be, when the same shall
<br />become due and payable, then the Borrower shall pay to the
<br />Lender any amount necessary to make up the deficiency, on or
<br />before the date when payment of such ground rents, taxes,
<br />assessments, or insurance premiums shall be due. If at any time
<br />the Borrower shall tender to the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness represented thereby, the lender shall, in computing
<br />the amount of such indebtedness, credit to the account of the
<br />Borrower any balance remaining in the funds accumulated under
<br />the provisions of (a) of paragraph 2 hereof. If there shall be a
<br />default under any of the provisions of this instrument resulting
<br />in a public sale of the premises covered hereby, or if the Lender
<br />I
<br />use :2v
<br />acquires the property otherwise after default, the Lender 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 reeipts therefor to the Lender.
<br />$, The 13orroner'wM pay au tames which may be levied upon
<br />the Lvr4er's interest in said real estate and improvements. and
<br />which may 'N levied won this installment oT the debt secured
<br />hereby (but or.Iy to the extent that suczh. is. toot prohibited bylaw
<br />and oriy to t.Ne oigew that such v►ills not make this loan
<br />usurious), but excluding any income aax, Stat.. or Federal;
<br />imposed gait Lender, and will file Cite• officiat receipt showing
<br />such payment with the Lender. upon violation of this
<br />undertaking, or if the Borrower is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes, or
<br />if such law or decree provides that any amount so paid by the
<br />Borrower 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 />given, the said debt shall become due, payable and collectible at
<br />the expiration of 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 the Lender, at its
<br />option, may pay or perform the same, and all expenditures so
<br />made shall-;. added to the prin.:;pal sum Owing-on• i.ra said
<br />note, shall be secured hereby, and shall bear 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 case of a default in the
<br />performance of any of the terms and conditions of this
<br />instrument or the said note, all 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 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 ow. of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and expenses incurred in renting 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 />8. That the Borrower will keep the improvements now
<br />existing or hereafter 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 been made
<br />hereinbefore. All insurance shall be carried in companies
<br />approved by the Lender and the policies and renewals thereof
<br />shall be lield by the Lender and have attached Vkr��'tto loss
<br />payable clauses in favor of and in form acceptable To the
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