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<br />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 sums:
<br />(a) A sum equal to the ground rents, if any, next due, plus
<br />the premiums that will next become due sad payable on pt�]icies
<br />of fire and other hazard insurance covering t'ne property, phis
<br />taxes and assessments next due on the v-vM ty (all as estimared
<br />by the, Lender) less all sums already �4rd 1heziefor divided by tlrr
<br />numW of months to elapse Weld re .me (4? month prior to tht
<br />date, when such gcottmd rents, ra -mr1ams; xiiva.and assessments
<br />will became dellagw ; ni, such sum's as be held- by Lender in trust
<br />to pax; Raid grQuad m-ms, premiums, taxes anti :special
<br />asse§sanetats; anlP
<br />(b) AM )v,,kvwituts mentioned in Che preceding subsection &f
<br />this pw4mph and all payments to be made under the rickm
<br />secured hcrefiy sbaill be added together, and %be aggregate
<br />amount thereof sbali be paid by the BorrowtT each month in a
<br />singke :pk%ment to be applied b}: the Lender to the following
<br />iterras iii the order set forth:
<br />(1) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(1I) interest on the note secured hereby;
<br />(11I) amortization of the principal of said note; and
<br />(IV) 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 ants (44) 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 />such excess. if the loan is current. at the option of the
<br />Borrower, shall be credited by the Lender on subsequent
<br />payments to be made by the Borrower, or refunded to the
<br />Borrower. If. however, the monthly 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 />iasuraaoe premiums, as the case may be, when the same shall
<br />became 4ue 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 premis�:ss'osvered hereby, or if the Lender
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<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 aft principal then
<br />remaining unpaid under said note.
<br />.s, That thtt Mrrower will pavv gttiu-nd vA7q', taxes,
<br />cas:,%ments, crater rates, Vd O'sher'gov"thental or cxugkcipal
<br />M ts, tines, or impositions; for which provision has. ,.not been
<br />made herelrabOme, and in default thereof the Lender may pay
<br />the:iam -e: aaa:l: that the Borrower will promptly deliver the
<br />official rrail+:s therefor to the Leudee.
<br />5, The Borrower will pay all taxes which may be levied upon
<br />"tbr. Y.ender's interest in said real estate and improvements, and .
<br />»hirh may be levied upon this instrument or the debt secured
<br />hhatby (but only to the extent that such is not prohibited by law
<br />w..a only to the extent that such will not make this loan)
<br />uaugtious), but excluding any income tax, State or Federal,
<br />i,snosed on Lender, and will file the official receipt showing
<br />Such payment with the Lender. Upon violation of dais
<br />undertaking. or if the Borrower is prohdr te,, by any iaw now or
<br />hereafter existing from payittg the whote cr any portion of the
<br />a;oresaid taxes, or upon the irensfcrins & any court de &ree
<br />prohibiting the payment by the Borrower of any such •taxes, or
<br />iii such law or decree pi �ovitk"s that are amount so paid by the
<br />Borrower shall be credited i60 khe deb%; stile Lender shall have
<br />the right to give ninety day %' wrdttea Mine 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 be added to the principal sum owing on the 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 out 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 held by the Lender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the
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