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<br />Borrower red bender 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 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 esTrmated 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 />rents, premiums, ta=and assessments will become deliquent, such
<br />sums to be held by %raider in trust,to pay said ground rents,
<br />premiums. taxes ararecial asmfnts; and
<br />(b) All payments metttigyrrfiintlie preceding subsection oftlri<..
<br />paragraph and all pgr}zca s iu` hc- r:tade under the note sewiel
<br />hereby shall be adW tog+k#ts :td the aggn gaMamount thereof,
<br />shall be paid by the Barrewer, h month in a- #n,gle payment to be
<br />applied by the Lender to the fcili "ruing items irr'iLe order set forth:
<br />(1) ground rents, taxes, ,eM. fire ini other hazard insur-
<br />ance premiums; `
<br />(11) interest on the r ate secured hereby
<br />(111) amortization of the pr.indpal 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, constitut: an. c°i!ent of default under this
<br />mct r_z-- The Lender may cobw.. a "late charge" not to exceed four
<br />cents �Cxi for each dollar (SI) of each payment more than fifteen
<br />(15) dris i:7 -a-- ,, Zo cover the extra exptnae involved in handling
<br />detingt,��s psi ^acr:�.
<br />3•. "brat if the total of the prarinxe.nts made by the Borrower unj =.
<br />(a) of paragraph.2 preceding shall exceed the amount of;%�, orvr
<br />actually made b3 tll:e Lender for ground rears, taxes and o. s;Lpc, :z,
<br />or insurance prvmn jms, as the case may be.. excess. of ::tae loan is
<br />currevi. at the option of the Borrower, shad: h t credited by the
<br />Leadwon subsequent payments to be mad: 0i, ;he Borrc-a•er, or
<br />refL-.ided to the Borrower. if, however, ttvL i7.i �A :hly payrcn-ts made
<br />by the Borrower under (a) of paragraph i pmcu�Jing shall not be
<br />sufficient to pay ground rents, taxes and asssn!t. =ts 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 ds: a wflen
<br />payment of such ground rents, taxes. assessments, or inst�rF< ?.:e
<br />premiums shall be due. If at any time the Wnrower shall tender to
<br />the Lendm in accordance with the provision of the note secured
<br />hereby, full payment of the entire indehted. -o-- reprrs med thereby.
<br />The Lender shall, in computing the amount .of such. indeNWness.
<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 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 rent% taxes, assessments,
<br />water rates, and other governmental or municipal charger, Cures, 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 />S. The Borrower will pay all taxes which may be levied upon the
<br />Lenders interest in said real. estate and improvements, and which
<br />may be levied upon this insxt ment or the debt secured hereby (but
<br />only to the extent that suds is rot prohibited by law and only to the
<br />extent that such will not make this loan usurious), but eXduding any
<br />income tax, State or Federal, imposed on Lender. and wi file the
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking. or if the 86-n� -Pr is prohibited by any
<br />Ism 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 deum provides that any amount so paid by the
<br />Borrower shall be credited gn the debt, the Lender shall have the
<br />n #rt :to give ninety days' 4k.en notice to the owner of the premises,
<br />ru4Wi-ing the payment of the di 5t. if such notice be given.- the said
<br />delft shall become due, payat+;- and collectible at the ex P*�rntion of
<br />said ninety days.
<br />6. That should the Borrower fast to Iml aw,a sum or keep any
<br />covenant provided for in this the Lender. at its
<br />option, may pay or perform tli�e tiT► , 65&al l expenditures so made
<br />shall be added to the princip r1k sam awiac ran the said note, shall
<br />be secured hereby, and shall Gear intercom: wt the rate set forth in the
<br />said note, until paid.
<br />7. That the Borrower hemby assigns, transfers and sets over to the
<br />liscnder, to be applied towani, 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 cc the said note, all the renw.
<br />revenues and income to be derived from the said premises during
<br />€uch time as the indebtedners Shall remain unpaid, and cite Lender
<br />shall Have power to appoint 4%N agent or agents it may desire for the
<br />purpose of repairing said pv;mi►�es and of renting the same and
<br />collecting the rents. revenues and income, and it may pay out of uid-
<br />incomes all r )-penses of reruir tg said premises and necessary
<br />o,, ff tmissions and expenses awirred in renting and managing the
<br />swc 2rd of collecting reiralt- therefrom; the balance retraining, if
<br />z: i9. oo be applied towaid the discharge of said indebcalottss.
<br />8. T'aa_ tbc Borrower will keep the improvements now existing ur
<br />he -eafter erected on the property, insured as may be required from
<br />time to time by the Lender against loss by fire and other harards,
<br />casualties and contingeacae5 in such amounts and for such periods m
<br />may be required by the Lrwder and will pay promptly, when due,
<br />any premiums.on sud: in- iL.rance. provision for payment of whkb
<br />has not been made iieroubefore. All insurance shall be carried in
<br />companies approved by bird 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 2o15
<br />HUD- 221430T -1
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