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<br />MW Mortgagor to order unore fully to protect the acarity of
<br />Ibk Morilm @area:
<br />1. That he will pay the indebtedness. as hereinbefore provided.
<br />Privilege is reserved to pay the debt in whole or in part on any
<br />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 the
<br />note secured hereby, the Mortgagor will pay to the Mortgagee,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<br />(a) Amount sufficient to provide the holder hereof with funds
<br />to pay the next mortgage insurance premium if this instrument
<br />and the note secured hereby are insured, or a monthly charge (in
<br />MW Of a mortgage insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development, as foliowv
<br />(1) U and so long as said note of even date and this "in-
<br />strument are insured or are reinsured under the provisions of the
<br />National Housing Act. an amount sufficient to accumulate in the
<br />hen 4& of the holder one (1) rponth prior to its duc date the an-
<br />nual mortgage insurance priar um in order to provide such holder
<br />with funds to pay such pr=tr m to the Secretary of Housing and
<br />Urban Development pursuant to the National Housing Act, as '
<br />amended, and applicable Regulations thereunder; or
<br />(11) If and so long as said note of even date and this in-
<br />strument are held by the Secretary of Housing and Urban
<br />Development, a monthly charge (in Geu of a mortgage insurance
<br />premium) which shall be in an amount equal to one- t%-dTbh
<br />(1/12) of one -half (1/2) per centum of the average outstanding
<br />balutce due on the note computed without taking into account
<br />deranquencies or prepayments-
<br />(b) 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
<br />fire and other hazard insurance covering the mortgaged property;'
<br />plus taxes and assessments next due on the mortgaged property.
<br />(all as estimated by the Mortgagee) less all sums already paid
<br />therefor divided by the number of months to elapse before one
<br />(1) month prior to the date when such ground rents, pr emfums,
<br />taxes and assessments will become delinquent, such sums to be
<br />held by Mortgagee in trust to pay said ground rents, premiums.
<br />taxes and special assessments; and
<br />(c) All payments mentioNd in the two preceding subsections
<br />of dais paragraph and all palatents to be made under'the note
<br />secured hereby shall be added together, and the aggregate amount
<br />thereof shall be paid by the Mortgagor each month in a single
<br />payment to be applied by the Mortgagee to the following items in
<br />the order set forth:
<br />(1) premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in Gets of mortgage insurance premium). as the case may
<br />be;
<br />(II) ground rents, taxes. assessments, fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note sectrred hereby;
<br />(M ammrazation of the principal of said note; and
<br />(V) laze charges.
<br />Any deficiency in the amount of such aggregate monthly pay-
<br />ment shall, unless made good by the Mortgagor prior to the due
<br />date of the next such payment, constitute an event of default
<br />under this mortgage. The Mortgagee may collect a "late charge"
<br />not to exceed four cents (49) for each dollar ($I) of each pay-
<br />gg..,140597
<br />ment more than fifteen (13) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
<br />3. That if the total of the paymenu made by the Mortgagor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />Payments actually made by the Mortgagee for ground rents, taxes
<br />and assessments or insurance premiums, as the can may be. such
<br />excess, if the loan is current, at the option of the Mortgagor,
<br />shall be credited by the Mortgagee on subsequent payments to be
<br />made by the Mortgagor, or refunded to the Mortgagor. if,
<br />however, the monthly payments made by the Mortgagor under
<br />(b) of paragraph 2 preceding shall not be sufficient to pay
<br />ground rents, taxes and assessments or insurance premiums, as
<br />the case may be. when the same shall become due and payable,
<br />then the Mortgagor shag pay to the Mortgagee any amount
<br />necessary to make up the deficiency. on or before OM date when
<br />payment of such ground rents, taxes. assessments, or insurance
<br />premiums shall be due. If at any time the, Mortgagor shall tender
<br />to the Mortgagee, in accordance with the provisioni of the note
<br />secured hereby, full payment of the entire indebte4tiitt;ss
<br />represented thereby. the Mortgagee shall. in computing the
<br />amount of such indebtedness, credit to the account of the Mort-
<br />gagor all payments made under the provisions of (a) paragraph 2
<br />hereof which the Mortgagee has not become obligated to pay to
<br />the Secretary of Housing and Urban Development and any
<br />balance remaining in the funds accumulated under the provisions
<br />of (b) of paragraph 2 hereof. If there shall be a default under
<br />any of the provisions of this mortgsge resulting in a public sale
<br />of the premises covered hereby, or if tba.,Mortgagee acquires the
<br />property otherwise after default. the *.^ . agee shall apply, at
<br />the time of the commencement of such'proeeedimp. et at the
<br />time the property is otherwise acquired, the balamae.then remain-
<br />ing in the funds accumulated under a) of paragriph! 2 preceding.
<br />as a credit against the amount of pri&'rvJ then remaining usnpa�d
<br />under said note, and shall properly adjust any payments which
<br />shall have been made under (a) of paragraph 2.
<br />4. That the Mortgagor *W pay ground rents, t�ocs.
<br />assessments, water rates, and other gaxgnmental or municipal
<br />charges. fees. or impositions, for wW- provision has not been
<br />made hereinbefore, and in default thortof the Mortgagee may
<br />pay the same; and that the Mortgagor will promptly deliver the
<br />official receipts therefor to the Mortgagee.
<br />S. The Mortgagor will pay all taxers~ which may be levied upoii;
<br />the Mortgagae''s interest in said real,esttte and improvements,
<br />and which: may be levied upon this niottgage or the debt secured
<br />hereby (but only to the extent that such is not prohibited by law
<br />and only to the extent drat' such will not make this loan
<br />usurious), but excluding any income tax, State or Federal, im-
<br />posed on Mortgagee, and will file the' official receipt showing
<br />such payment with the Mortgagee. irVami violation of this under.
<br />taking, or if the Mortgagor is prohibited by any law. now or
<br />hereafter existing from paying the whale car any pardon of the
<br />aforesaid taxes, or upon the tendering.- of any court-decree pro.
<br />hibiting the payment by the MortgWr of any such- taxes, or if
<br />such law or decree provides that• any amount so paid by the
<br />Mortgagor shall be credited on the mortgage debt, the Mortgav e_
<br />shall have the right to give ninety days, written notice to the
<br />owner of the mortgaged premises, requiring the payment of the
<br />mortgage debt. If such notice be given,, the said debt shall
<br />become due. payable and collectible at the expiration of said
<br />ninety days.
<br />6. That should the Mortgagor fail to pay any sum or keep any
<br />covenant provided for in this mortgage, then the Mortgagee. at
<br />its option, may pay or perform the same. and all expenditures so
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