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<br />Borrower gad [.ender covenant ands agree as Mows:
<br />I- That Borrower will pay the indebtedness, as bereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part on
<br />any installment due date.
<br />2. That, 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 />assessments next due on the property (all as estim:W by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (1) month prior to the date when such ground
<br />rent - -,. premiums, taxes and assessments will become deliquent, such
<br />sutras to be held. by Leader in trust to pay said ground rents,
<br />premiums, taxis and special assessments: and
<br />(b) All payments mentioned in the preening same =trop. 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, taxes, assessments, fire and other hazard insur-
<br />xxe premiums;
<br />(11) interest on the note secured hereby;
<br />(111) amortization of the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate monthly p:; merit
<br />shall, unless made good by the Borrower prior to the due dun: rf site
<br />next such ptymetn, constitute an event of default under thin
<br />mere. Ttre Lender may collect a "late charge" not to, c4t=d four
<br />oust-.(40 fi3readi drllar ($I) of each payment more thzn: fitii=
<br />(15) days ii. a;,=j—., to cover the extra expense involved its h4d+lfing
<br />delinquent
<br />3. That iii tAm f;ctal of the payments made by the Borten;r under
<br />(a) of paragrs, :; 2 preceding shall exceed the amount of pgylfri rats
<br />actually medr h.i the Lender for ground rents, taxes and awe ssr*ents
<br />or insurance q t miums, as the case may be, such excess, .t: rite roan is
<br />current, at tfir cNon of the Borrower, s.ufl he credited b_: ljjt �
<br />Lender on s_tJsquent payments to be mrrl-- by the Borc x ix . or
<br />refunded to the Borrower. If, however, the monthly pa;*ixts made
<br />by the Borrower under (a) of paragraph 2 preceding shaft not be
<br />sufficient to psi ground rents, taxes and assessments or insurance
<br />premiums, as rte 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 secured
<br />hereby, full payment of the entire indeb*_ainrss represented thereby.
<br />The Lender sUT, in computing the amo:t:,e o3 such indebtedness,
<br />credit to the account of the Borrower any balance remair irg in the
<br />Nods accumulated under the provisions of (a) of parr4ra.ph 2 hereol
<br />if ibere *.II be a default under any of the pczvfsia:: of t:l.', s
<br />instrument: rtt lrtvirtg in a public sale of the 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 commencement 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 char3m fines, or
<br />impositions, for which provision has WA tan 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 />official receipt showing such payment wida the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or hereafter existing from paying the whole or any portion
<br />of the aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment bytie Borrower of any such taxes. or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the dehf; Me Lender shall have the
<br />right to give ninety days' written rtr tike 0 the owner of the premises,
<br />requiring the payment of the debt. if •stub° notice be given, the said
<br />debt shall become due, payable and coiPectible at the expiration of
<br />said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this instrumem then the Lender, at its
<br />option, may pay er perlern the same, and all expenditures so made
<br />shall be added to tie pnncipal sum owing on the said note, shall
<br />be secured hereby., and shall, bear intere<x at the rate set forth in the
<br />said ncte, until paid.
<br />7. That the Borrc►,ver hereby assigns, transfers and sets over to the
<br />Lender, to he applied'tit.wrtrd the payment of the note and all sums
<br />secured hrrebyin 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 Iticome to be derived from the said premises during
<br />such time av the indebtedness shall remain unpaid, and the Lender
<br />shall have 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. reverrurs ;9rtd income, and it may pay out of said
<br />incomes all•expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />same and of collecting rentals therefrom; the balance remainir, ?, 41
<br />any, to be applied toward the discharge of said indeb; - mlr.,r -; -.
<br />8. That the Borrower will keep the improvements now exinz r.,7 cr -.
<br />hereafter erected on the property. insured as may be required frog.•,
<br />time to tirr -- by the Lender against loss by fire and other hazards.
<br />casualtie ;, zrd contingencies in such amounts and for such periods as
<br />may Ix rt-q, : ;red by the i under and will pay promptly, when due.
<br />any prer,,a.=s,,sn such, r..; ^: znce, provision for payment of which
<br />has not bras r,;L ,; All irAuras:r;e shall be carried in
<br />compamt: Lr.p +ice' _ , ±rc Mr'4 lem and the policies and renewals
<br />thereof shZIU—ae te% i1; On- Lender and have attached thereto loss
<br />payable clauses in fa .cr r•f xsd in form acceptable to the Lender. In
<br />Page 7 of 5 HUD- 92143DT -1
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