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<br />- - -- -- 89-r 101189
<br />Rorrower 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 part on
<br />any installment due date.
<br />2. That, tether 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 estimated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (I ) 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 paymen- ts mentioned in the preceding subwion of this
<br />paragraph and alk payments to be made unire. • the zxc sacured
<br />hereby shall be exied together, and the agg:epte am9znt thereof
<br />shall be paid by the Borrower each monrb in a sing'.: payment to be
<br />applied by the Lender to tie following items in the ordts set forth:
<br />(1) ground rents, taxes. ussessments, fire and other hazard insur-
<br />ance premiums;
<br />(11) interest on the note secured hereby;
<br />M),Ema; lotion of tie Irmcipal of said note;
<br />Any drzF=ncy in the amount of such rWnc.;ate man: aly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default u r�� Ois
<br />mortgage. The Lender may collect a "late charge" not to exceed four
<br />cents (44) for each dollar ($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 t1,e cf ,raymcnts
<br />actually made by the Lender for ground re's. taus at[d.as:�+ Fsnews
<br />or insurance premiums, as the case may Ite, such excesi if t:Yr: ;cGr -:s
<br />current, at tb.- option of the Borrower. shall be creoirsed b} tte
<br />Lender on szbsequent payments to be made by the IB- r,.cwer, or
<br />refunded to tS. Bonower_ 11, however, the TTIOMNJ Pr.YM.-nts me:ie
<br />by the Bormiwv under �, "a paragragln z preceding ant;: not �e
<br />sufficient to lay ground ren:3. taxes znd�sssessments o-
<br />premiums, as the case may be. when die same sha,,
<br />payable, then the Borrower shall pay ioclt. Lender tut: amount
<br />necessary to make up the deficiency. ace �X before +J:t, w�ate when
<br />payment of such ground rents, taxes. awisments, or insurance
<br />premiums shall be due. If at any time r,>!a: torrower shall tender to.
<br />the lender, in accordance with the p:.oiii5ions of the note secureu
<br />hereby. full payment of the entire indebtedness reps sszr%:ed thereby.
<br />the Lender shall. in computing the amount of such AM dness.
<br />credit to the account of tke: Borrower any balance rcffarT.:rg io the
<br />funds accumulated under the provisir,T;:i of (a) of parz&-aph 2 ttercr_f
<br />If there shall be a default under any of 1M. provisions of this
<br />instrument resulting in a public sale of.012 premises T.v.ered here,),
<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 acquiitd, 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 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 />S. The Borrower will pay all taxes which may be levied upon- Oa .
<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 with 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 by the Borrower of any such taxes, or if
<br />such !a;; or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt, the Lender shall have ft ..
<br />right to give ninety days' written notice to the owner of the premises,
<br />requiring the payment of the debt. if such notice be given, the said
<br />debt shall become d= payable and collectible at the expiration of
<br />said nir .ty 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, transfers and sets over to the
<br />Lender, to be applied toward the payment of the note and all sums
<br />secured hereby in case of a default in the performance of any of th.
<br />terms and conditions of this instrument or the said note. all the' rents.
<br />revenues and income to be derived from the said premises during
<br />such time as the indebtedness shall remain unpaid; and the lender
<br />shall have power to appoint any agent or agents it .nay desire for the
<br />p;4 fast of repairing said premises and of renting the same and
<br />wi"�". ag the rents, revenues and income, and it may pay out c4said
<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. That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />time to time by the Lender against loss by fire and other hazards.
<br />casualties and contingencies in such amounts and for such peneds as
<br />may be required by the Lender and will pay promptly, when dad:.
<br />any prier iums on such insurance. provision for payment of wthob
<br />has nt i 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
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