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Borrower and !.ender covenant aced agree as follows:
<br />I. That Borrower will pay the indebtedness. ac hereinbefore
<br />provided. Privilege is tmerved to pay the debt in whole or in part on
<br />any installment due date
<br />2. Thu, 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 />and other hazard insurance covering the property, plus taxes and
<br />assessmeritc next due on the property (all ar estimated by the Lender)
<br />less all sums ayaeady paid therefor divided by the number of months
<br />to elapse befaXQne (1) month prior to the date when such ground
<br />rents. Premiucaii., 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 all payments to be made under the note secured
<br />hereby shall be added together, and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to be
<br />applied by the Lender to the following items in the order set forth:
<br />(1) ground rents. mxgs, assessments, fire and other hazard insur-
<br />ance premiums. '
<br />(11) interest on the note secured hereby,
<br />(111) amortization of the prinapa3 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 />next such payment, constitute an event of default under- this
<br />mortgage. The Lender may collect a "late chargs' not to exceed four
<br />cents (4¢) for each dollar (S1) of each payment more than fifteen
<br />(15) days in arrears to cover the extra expense iri%vNed in handling
<br />delinquent payments.
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 1 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 subset uint 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 shall 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 segued
<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 default under any of the provisions of this
<br />instrument resulting in a public sale of the premises covered hereby,
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<br />or if the lender acquires the property otherwise after default, the
<br />Lender shall apply, at the time of the commeneement 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, 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 />5. 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 the debt secured hereby (but
<br />only to the extent that such is not prohibited by law and only to the
<br />extent that such will not make this loan usurious), but excluding any
<br />income tax, State or Federal, imposed on lender, and will file the
<br />officiai receipt showing such payment with the Lender. Upon
<br />violation of this undertaking. or if the Borrower is profrfbited by any
<br />taw now or hereafter existing from paying the w-bote or any portion
<br />of the aforesaid taxes, or upon the rendering of my court decree
<br />prohibiting the payment by the Borrower of aniv taxes, or if
<br />.such law or decree provides that any aniouca s6• l4 lr the
<br />Iorrower shall be credited on the debt, the Leeaier. . " have the
<br />r4ht to give ninety days' written notice to the c-*Te r'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 />O�venwnt provided wr in thin ingtruinierst, t1wii bite I --.. r, its ..
<br />option, may pay or perform the same, and all expenditures so made
<br />shall be added to the principal sum owing oa the said note, shall
<br />'be secured hereby, and shall bear interest at: t5c rate set forth in the
<br />said note, until paid.
<br />7. That the Borrower hereby assigns, tcamsfers 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 shalt remain unpaid, and the Lender
<br />shall have power to appoint any agent oragents it may desire for the
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rents. revenues and ineomC and it may pay out of said
<br />incomes all expenses of repairing said pxrtrtises and necessary
<br />commissions and expenses incur is renting and managing the
<br />same and of collecting renters therefoa= 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 of 5 MUD- 921430T•1
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