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B :rower and Leader covemmil and agree as folilows:
<br />1. That Borrower will pay the indebtediam as hereiabialore
<br />provided. Privilege is reserved to pay the debt in whole ar id 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 ufmkr the terms of the note sectirrrJ
<br />hereby. the Borrower will pay to the tender, on therms 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 esit9wed by the Leader
<br />less all surna 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. taxes and assessments will become deliquent. such
<br />sums to be held by Lender in trust to pay said ground rents,
<br />premiums. taxes and special assessments; and
<br />(b) All payments mentioned in the preceding subseedidnof this"
<br />paragraph and all payments to be malt under the now &=' red
<br />hereby shall be added together, and the aggmgve amoitrt thereof
<br />shall be paid by the Borrower each month in a- single payment to be
<br />applied by the Lender to the following iternasirr- -the order set forth:
<br />(n ground rents, taxes. assessments, fire a� other hazard insur-
<br />ance premiums;
<br />(11) interest on the note secured hereby;
<br />(111) amortization of the principal of said note; and
<br />(1V) 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 />Heart such payment, constitute an event of default under this
<br />m- rtgage. The Lender may collect a "late charge ' not to evi=-d four
<br />ants (4t► for each dollar (S 1) of each payment more than fifteen.
<br />(15) days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the amount of payments
<br />actually made by the lender for ground rents, taxes and assessments
<br />or insurance premiums, as the case may be. such excess, if the loan is
<br />current, at the option of the Borrower. shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower. or
<br />refunded to the Borrower. If, however, the monthly payments .=6-.-
<br />by the Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums, as the case maybe, 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 ddciency. on or before the date when
<br />payment of such ground rent „ taxes, assessments. or insurance
<br />premiums shall be due. Is:t 411y time the Borrower shall tender to
<br />the Lender. in arx:.ordarce : +ftti the provisions of the note secured
<br />hereby, full M,"Ment of the ,entire indebtedness represented thereby,
<br />the Lender shall. in compu:;rl the amount of such indeh�edness.
<br />edit to the account of the fii.rrower any balance remaming in the
<br />funds accurriVred under the provisions of (a) of paragraph 2 hereof.
<br />ifrrere shaft to a default under any of the provisions of this
<br />instrument resulting in a public sale of the premises covered hereby.
<br />o: if thi Lt:vi40: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 wrli pay ground rents, taxes, assessments,
<br />water rates, and other govemmental or municipal charges, mites. or
<br />impositiotit. for which provision has not been made hereinbefore.
<br />and in default thereof the Lender may pay the samC and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />/ 5. The Borrower will pay 411 tuxes which may be levied upon the
<br />Lenders 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), bast excluding any
<br />income tax. State or Federal, imposed on Lender, airs$ will fife the
<br />official recespt showing such payment with the L.eadee= Upon
<br />violation Ofihis undertaking, or if the Borrower is prohibited by any
<br />4w now"er fn•3rsfter existing from paying the whop or any portion
<br />6f the afbidi i i taxes; acre igxm the rendering of any court decree
<br />prohibiting t a payment by- the Borrower of any such taxes, or if
<br />such law or deuce provides that aoyarnount so paid by the
<br />Borrower sha:i be credited on the deht,,tim Lender shall have the
<br />right to give 'ninety nays' written motitx: to the owntrof the premises.
<br />'requiring the payment of the debt. if such notice be given. the said
<br />debt shall become due, payable and collectible at the expiration of
<br />said ninety days.
<br />6. Thai diould the Borrower fail to pay any sum or keep any
<br />covenant pizvided for in ibis instrument, then the Lender, at its
<br />option, may pay or per N m the same, and all expenditures so made
<br />si'±sll 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 him-by assigns. transfers and :ids over to the
<br />Lender, to be applied mwciitl.the payment of Inc note and all sums
<br />secured hereby in case ofn default in the performance of any of the
<br />terms and o3nditions of this instrumem.or the said note, all the rc -ncs.
<br />revenues and income to be derived frog the said premises during
<br />such time as the indebtedireas shall remain unpaid, and the Lender
<br />shall have power to appalnl any agent or agents it mazy desire for the
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rents, revenues and 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 remaining, if
<br />any, to be applied toward the discharge of said indebtedness.
<br />8. Thai the Borrower will keep the improvements now existing or
<br />hereaftrr'cremed on the property. insured as may be required from
<br />rune to time by the lender against loss by fire and outer hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may he required by the lender and will pay promptly, when due.
<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 this Lender and have attached thereto loss
<br />payable clauses in favor ofard in form acceptable to the Lender. In
<br />GpAje2 of 5
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