PROVIDED ALWAYS, and these presents are executed and delivered upon the following conditions, to wit:
<br />The Mortgagor agrees to pay to the Mortgagee, -or order, the principal sum of Twenty=eight Thousand Four
<br />Hundred and no•/1Q0- - - - - - - - - - - - -Dollars (S 28,400.00 ), with interest from
<br />date at the rate of Seven and Three -Quarters per centum ( 7-3/4 %)-per annum _ on
<br />..the unpaid balance until paid. The said principal and'interest shall be payable at the office of First -National
<br />Bank of Council Bluffs, Council Bluffs, Iowa
<br />in Council Bluffs, Iowa or at such other place as the •holderof
<br />the.note may designate in writing, in monthly installments of Two Hundred Three and 63/100 - - -
<br />- - - - - - - - - - - - Dollars •($ 203.63 ), commencing on the first day of
<br />JUNE 1975 and on'the first day of each month thereafter until the principal and in- �
<br />terest are fully paid, except that the final payment of principal and interest, if not sooner paid, shall be due and
<br />payable on the first day of MAY, 2005 all according to the terms of a certain promis-
<br />sory note of even date herewith executed by.the said Mortgagor.
<br />The Mortgagor in order more fully to protect the security of this -Mortgage, agrees:
<br />1. That he will pay the indebtedness, as hereinbefore provided.. Privilege is reserved to pay the debt in whole,
<br />or in an amount equal to one or more monthlypayments on the principal'. that are next due on the note, on the first
<br />day of any month prior to maturity: Provided, however, That written notice of an intention to exercise such privi-
<br />lege is given of least thirty (30) days prior to prepayment; and provided further, That in the event this debt is paid
<br />in full prior to maturity and 'at that time it is insured under the provisions. of the National Housing Act," all parties
<br />liable for the payment of same, whether principal, surety, guarantor or endorser, agree to be jointly and severally
<br />bound to pay to the holder of the note secured hereby an adjusted premium charge of one per centum (17.) of the
<br />original principal amount thereof, except that in no event shall the adjusted premium exceed the aggregate amount i
<br />of premium charges which would have been payable if this mortgage and, -the note secured hereby had continued to
<br />be insured until maturity; such payment to be'applied by the holder thereof upon its obligation to the Secretary of
<br />Housing and Urban Development on account of: mortgage insurance. i
<br />2. That, together with, -.and in addition to, the monthly payments of principal and interest payable under the
<br />terms of the note secured hereby, the Mortgagor will pay to the Mortgagee, on the first day of each month -until the
<br />said note is fully paid, the following sums:
<br />(a) An amount sufficient to provide the holder hereof with funds to pay the next mortgage insurance premium if this instru-
<br />ment and the note secured hereby are insured, 'or u monthly charge (in lieu of a mortgage insurance premium) if they
<br />are held by the Secretary of housing and Urban Development, as follows:
<br />(I) If and so long as said note of even'dalc and this instrument are insured or are reinsured under the provisions of
<br />the National Housing Act, an amount sufficient to accumulate in 'the hands of the holder one (1) month prior to .
<br />its due date the'annual mortgage insurance premium in order to provide such holder with funds to pay such pre-
<br />mium to the Secretary of Housing and Urban Development pursuant to the National Housing Act, as'amendedi and `
<br />applicable Regulations thereunder; or
<br />(II) if and so long as said note of even dale and this instrument are held by the Secretary of }lousing and Urban De- I
<br />velopment, a monthly charge (in lieu of a mortgage insurance premium) which shall be in an amount equal to one -
<br />twelfth (1/12) of one-half (yr) per centum of the `average outstanding balance due on the note computed without
<br />taking into account delinquencies or prepayments;
<br />(b) A sum equal to the ground rents, if any, next due, plus the premiums that will next become due and payable on+policies
<br />of fire andother hazard insurance covering.the mortgaged property, plus taxes and assessments next due on the moit-
<br />gaged property (all as estimated by the Mortgagee) less; all sums already paid therefor divided by the.numbt ro! months
<br />to elapse before one month prior to'the `date when such ground rents, premiums, taxes and assessments will become
<br />delinquent, such sums;to be held by hlortgngee in trust to pay said ground rents, premiums, taxes and special assess-
<br />ments; and
<br />(c) All payments mentioned in the two preceding subsections of this paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggregate amount thereof shall be paid'by the Mortgagor each month in
<br />a single payment to be applied by the Mortgagee to the following items in the order set forth:
<br />(I) premium charges under the contract.ot insurance with the Secretary oFiiousing and Urban Development, or monthly
<br />charge (in lieu of mortgage insurance premium), as the case may be;
<br />(II) ground rents, taxes, assessments, fire and other hazard insurance premiums;
<br />(111) interest on the note sect,red he'reby'; and
<br />(1V) amortization of the principal of said note.
<br />Any deficiency in the amount of any such.nggregate monthly payment shall; unless made good by the Mortgagor prior to j
<br />the due date of the next such payment, constitute an event of default under this mortgage. The Mortgagee may collect
<br />a "late charge" not to _exceed two cents (21) for each dollar ($1) of each, payment more -than fifteen (15) days in arrears
<br />to cover the extra expense involved in handling delinquent payments. I
<br />3. That if the total of the payments made by the Mortgagor under (b) of 'paragraph 2 preceding shall exceed the
<br />amount of payments actually made by the Mortgagee for ground rents, taxes and assessments or insurance premiums,:
<br />as. the case may be, such excess shall be credited by the Mortgagee on' subsequent payments to be' made by the"
<br />Mortgagor. If, however, the monthly payments made by the Mortgagor under (b) of paragraph 2 preceding. shall not
<br />be sufficient to pay ground rents, taxes and assessments or insurance. premiums, as the case-may`be, when the.
<br />same shall become due and payable, then the Mortgagor shall pay to the Mortgagee any amount necessary to make
<br />up the deficiency, on or before the date when payment of such ground rents, taxes, assessments or insurance pre-
<br />miums
<br />re miums shall be due. If at any time the Mortgagor shall tender to the Mortgagee, in accordance with the provisions,.
<br />of the note secured hereby, full payment of the entire indebtedness represented thereby, the Mortgagee shall, in. I i
<br />computing the amount..of such indebtedness, credit to the account of the Mortgagorall payments made under the,
<br />provisions of .(a) of paragraph 2 hereof which the Mortgagee has not become obligated to pay to the Secretaryof
<br />Housing and Urban Development and any balance remaining- in the funds accumulated under the provisions of (b)
<br />of paragraph 2 hereof. If there shall be a default under any of the provisions of this mortgage resulting in a public
<br />sale of the -premises covered hereby, or if the Mortgagee acquires the property otherwise after default, the Mortga-
<br />gee shall apply, at.the time of the commencement of such proceedings, or at the time the property is otherwise ac-
<br />quired, the balance then remaining in the funds accumulated under'(b) of paragraph 2 preceding, as a credit aga.inst'
<br />the -amount of principal, then remaining unpaid under said note, and shallproperly adjust any payments ,which shall
<br />have been made under (aJ of paragraph 2.. +
<br />4.. That the Mortgagor will pay ground rents, taxes; assessments, water rates, and other governmental or mu
<br />nicipai charges,. fines', .or impositions,. for which ,provision has not. been made hereinbefore, and in default thereof '
<br />the -Mortgagee may pay the same; and that the Mortgagor Will promptly delivei.the official receipts therefor to the
<br />Mortgagee
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