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Borrower and lender 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 and payable on policies
<br />of fire and other hazard insurance covering the property, plus
<br />taxes and assessments next due on the property (all as estimated
<br />by the Lender) less all sums already paid therefor divided by the
<br />number of months to elapse before one (1) month prior to the
<br />date when such ground rents, premiums, taxes and assessments
<br />will become delinquent, such sums to be held by Lender in trust
<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 MW by the Borrower each month in w. .
<br />sirWe payment to be applio...bg. the Lender to the followtn;
<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 />(iii) amurdaw"on or, tae prYtcipal of said note; and
<br />(I� late cb=ges.
<br />Any deficiency Li the amount of such aggregate monthly
<br />payment shall. unless made jnrad by the Borrower prior to the
<br />due dare of the cext such payment, constitute an event of
<br />dcfrdr.uadir,ttb mortgage. The Lender may collect a "late
<br />chargee' not to exceed four cents (49) fcr each dollar ($I) of
<br />each gaymeat mare than fifteen (15) days-In arrears to cover the
<br />extra expense involved in handling delinquent payments.
<br />.T: That if the total of the payments made by the Borrower
<br />=der (a) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents, taxes
<br />slid 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 .try the Lender on subsequent
<br />payments to be made by die! 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 />insurance premiums, as the_ case may be, when the same shall
<br />become due and payable, th.6 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 preutfses covered hereby. or if the Lender
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<br />acquites the property otherwise after default, the lender shall
<br />apply, at the time of the commenvement of such proceedings, or
<br />at the time the property is otherv+ise 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 willipay 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 saute; and that the Borrower will promptly deliver the
<br />official receipts therefor, to the Lender.
<br />S. 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 instrument or the debt secured
<br />hereby (but only to the extent that such 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. mid will file the uff[ciat fe%6pt showing
<br />such payment with the Lender. Upon %iolation 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 count 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 ft
<br />premises. requiring the payment of the debt. If such noticr be - '
<br />given, the said dtbt: shall become due, payable and collectible at-
<br />the expiration ofisaid ninety days.-
<br />o. That should titer Borrower tail 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 a_csi4as, transfers and sets over
<br />to the Lender4 .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 derivedifrom 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 cad;
<br />coIIecting.the rents, revenues and income, and it may pay our of
<br />said incmmes.! all expenses of repairing said premises and
<br />necessary cornrrrissions 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 discharSF of
<br />said indebtedness.
<br />8. That thr 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 )oss
<br />payable clauses in -favor of and inform acceptable tar the•} -
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