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<br />Borrower and Lender covenant and agree as follows:
<br />L That Borrower will pay the indebtedlnm as hereinhefore,
<br />Provided- Privilege is reserved to pay the debt in whole or in pan 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 wirt aglual to the ground rents, if any, next due, plus the
<br />premivaM tlrsit will next become due and payable an policies of fire
<br />and other Ord insurance covering timproperty, plus taxes and
<br />assessments next due on the property'(idt.arestimated by the Lend
<br />er) foss all already paid therefor divi[Iii.by the number of months
<br />to elapse before one (1) month prior in i3ie date when such ground
<br />rents, premiums, taxes and assessmelits will become deliquent. such
<br />sums to be held by bender in trust'tu M__ tafd ground rents,
<br />premiums. taxes and Vaud assessmeiii-_ mid.
<br />k -i. All payments merdviti�d in the tilt sung sub ion of this
<br />paragraph ar_•d all Payfr -',T .!v Pa. be mnar&t dr, -der the note secured
<br />hereby shall fneadded of. a-,'; 0, :;_o egate amount thereof
<br />shall be paiwi4p the Bcr�� aer rwa�; MCCI l in a wrge payment to be
<br />spplied bar- Lender tsi d-m following i,,Lrhs in the-ar-der set forth:
<br />-M gm r1i gents, taxes, assessments, flair. and other hazard insur-
<br />ance preset, x)i s•:
<br />(11) interest on the note secured heresy;
<br />(111) amortization of this plincaipal of said note: and
<br />(IV) late charges.
<br />Any deficiency in Ike QMavn; of s; zl vgregate monthly payrnect:
<br />shall, unless made good bi, Z e. Borro iw= prior to the due date of the
<br />next such payment, co .� vir an event of default under
<br />mortgage. The Lender 74--zollect a "late charge" not cc, roar
<br />cents (40 for each dollar ($I) of each payment more thsa 6:=n
<br />(15)-days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
<br />3. That if the total of tNI Payments made by the Borrower under
<br />;'a) of paragraph 2 preceding shall exceed -the amount of payment'
<br />actually made by the Lender forgroind+ru.ts. taxes and assessment~
<br />or insurance premiums, as the case msg Ise, such excess, if the loan is
<br />current, at the option of the %irower, s. aSJ be credited by the
<br />Lender on subsequent paernra m; to tse Trade by the Borrower. or
<br />n-,`,.nded to tie Borrower. f: however, ,.he monthly payments made
<br />Berm cr under (a) d •paragrapY• 4 preceding shall not be
<br />a.L. pay ground rents, taxes any assessments or insura. c
<br />Gramiu= „s. <s the case may be, when IM SVne shall become due a;,_
<br />X;.zNe, ;y:e!,, the Borrov,•er 0,a1j.pasr to the Lender ar.: amount
<br />Tyme.A .rp ,take up the de6ciertcy, e7 cr before the dse when
<br />pa; c-Ler,; o:' -:.eeh ground rer•ci, taxes, a:s t._er. ;_ ar ;rsurance
<br />prea:-a,.% 4mill be due. If at any lime il*e Borrower %hall tender to
<br />the Lender, rn accordance with the provisions of the not^ secured
<br />Lpreby. full payment of the entire indebtedness reprebcr,r,id.,.hereby,
<br />the Lender shall.-in computing the amount of such inr: , jedress.
<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 safe of the premises covered hereby.
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<br />or if the Lender acquires the property otherwise after default, the
<br />Lender 'hall apply, at the time of the c wrimencei7eri€ of sudt
<br />procec.lrngss or at the time the property is otheru.-ise acquired, the
<br />balaaM 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 rites, 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 />Official receipt showing arch paymcn. with t ;.- Leader. 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 by the Borrower of any such taxes, or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower shall be cr:vir --ed on the 6� the Lender shall have the
<br />right to give ninety dloys yarin'M no; to the awncrr of the premises,
<br />requiring, the paym-_It of the debr. if s�rzit noii�ce be given, the said
<br />debt sha'il become due, pa} a51e and c&'zttible at Zle expiration of
<br />said rinet} days. .
<br />6. That should the Borrower fail 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 made
<br />shall be added to the principal sum owing on the said note, shall
<br />be secured hereby, and shall bear interest at the rate set forth in the
<br />said note, until paid.
<br />7. That the Borrower hereby assigns. t•ansfers =d sets over to the
<br />Lender, to be applied toward the payrmwl of the r:;ote and all sums
<br />secured hereby in case of a default in t;h,: ;_ erforrrtance of any of the
<br />terms ar zonditions of this instrument or *? c sail late, all the rents,
<br />revenues t!A income to be derived from t!,r, s,;,;4Isram ses during
<br />such time 19 the indtftKaess shall remai:, upxl is arm the Lender
<br />shall havW pe ker to am -x—M any agert cr zge�:'s 3; Cony desire f©y the
<br />purpose r�, r,:7 >r3ring said premises ard. d renting the same and
<br />collecting :i`e rents.:,' -r- ties and ins;ire, and it may payout �a"sz; j
<br />incomes all expenses o' i%•7airing sari p.trinises tc i .^.eassary
<br />Commissions and expe -u-_�s incurred in renting and managing the
<br />same and of collecting rentals therefrrsgn. the balance remaining.. if
<br />any, to be applied toward the disc6.wk.e of said indebtedness.
<br />K. That the Borrower w ;'1 .C4 the improvements now existing ar
<br />hereafter erected on the C*; py j y . insured as may b_ . required from
<br />time to time by the Lerft-a azsrrst foss by fire and o ttw Eaaa;ds. .
<br />casualties and contingencies in such amounts and for s�-cf.;,i ric'.ii; as
<br />may be required by the lender and wilil pay promptly, men 4,1LO,
<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 S
<br />HUD•9211307•1
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