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<br />Borrower and Lender covenant and agree as follows:
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pav the debt in .,whole or in
<br />part on any installment due date.
<br />2. '1<Ytem, together with, and in addition to, the monthly
<br />payzttms 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, phis
<br />taxes and assessments next due on the property fall as esifinated
<br />by the Lender) less all sums already paid therefor divided bIt -the
<br />number of months to elapse before one (1) month prior to, the
<br />date when such ground rents. premiums. taxes and assessntentri
<br />will become delinquent. such sums to be held by Lender in truut
<br />to pay said ground rents. premiums, taxes and special
<br />assessments; 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 ether hazard
<br />insurance premiums;
<br />(11) interest on the note secured hereby;
<br />(III) 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 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 />such excess, if the loan is current, at the opticn 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 a&cessments 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, op
<br />before the date when payment of such ground rents, tax"..
<br />assessments, or insurance premiums shall be due. I? at any- time
<br />the Borrower shall tender to the Lender, in accordance wittlithe
<br />provisions of the note secured hereby, fuIi payment of the entire
<br />indebtedness represented thereby, the Lender shall, in computing
<br />the amount of such indebtedness, credit to the accounti,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 ifs the Lender
<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 acgwmd. the balance then
<br />retm_ainning in the funds accumulaied ender (0 of para,! mph 2
<br />prCzrr4g;, aq a credit against the atr oant og pranri} tl.,t4s �
<br />remaining unpaid under said ta, .e.
<br />4. That the Borrower will pay grc and rents, taxes,
<br />assessments, water rates, and other t,overnmental or municipal
<br />charges, fines, or impositions. for w iieh provision has not been
<br />made hereinbefore, and in default it ereof the Lender may pay
<br />the same; and that the Borrower wil promptly deliver the
<br />official receipts therefor to the Lend -r.
<br />5. 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 instrt went or the debt secured
<br />hereby (but only to the extent that s tch is not prohibited by law
<br />and only to the extent that such will not make this loan
<br />usurious). but excluding any income tax, State or Federal.
<br />imposed on Lender, and will file the official receipt showing
<br />such payment with the Lender. Upoi i violation of this
<br />undertaking, or if the Borrower is pi ohibited by any law now or
<br />hereafter existing from paying the col tole or any portion of the
<br />aforesaid taxes. or upon the renderir g of any court decree
<br />prohibiting the payment by the Born twer of any such taxes, or
<br />if such law or decree provides that aay amount so paid by the
<br />Borrower shall be credited on the de it, the Lender shall have
<br />the right to give ninety days' utiten 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 dui e, payable and collectible at
<br />the expiration of said ninety Clays.
<br />6. That should the Borrower fail t D 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 sh aB bear interest at the rate
<br />set forth in the said note, until paid.
<br />7. That the Borrower hereby assigi ts, transfers and sets over
<br />to the Lender, ,o be applied toward :he 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, an i the Lender shall have
<br />power to appoint any agent. or, agent: i it may desire for the
<br />purpose of repairing said preririses ar d of renting the same and
<br />collecting the rents, revenues and ino )me, and it may pay out of
<br />said incomes all expenses of repairing; said premises and
<br />necessary commissions and expenses ne-arred 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 premiu ns on such insurance,
<br />provision for payment of which has r of been made
<br />hereinbefore. All insurance shall be c uried 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 for in acceptable to the
<br />Page 2 of 6 t HUD- 92143DT -1
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