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Borrower and Lender covenant and agree as follows:
<br />I. That Borrower will pay the indebtednm 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, nexr� due.. phis
<br />premiums that will next become due and payable an policies-of hie
<br />and other hazard insurance covering: the property, plus taxes and
<br />assessments next due on the property (,all as estimated by the i'.endEy)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (1) month prior to the date ivban such ground
<br />rents, premiums, taxes and assessments will became d0liquent. such
<br />sums to be held by Lender in trust to pay said grvurirt rents.
<br />premiums. taxes and special assessment. and
<br />(b) All payments mentioned in the preceding s-iinguon of tits
<br />paragraph and all payments to be made under ilti� lit.-[~ worts .
<br />hereby shall be added together. and the aggregaw irmiant th 9
<br />shall bgpaid by the Burrower each month in a single payment: to be
<br />applied by. the Lender to the following items in the order set-ti rsh:
<br />(1) ground rents, taxe�_ assessments, fire and other hazard insur-
<br />ance premiums;
<br />(11) interest on ifte note secured. hm-by:
<br />(111) amonization eE (hnprtacip�l•rt`oa2•rrat>' :.a7d
<br />(IV) late charges. :
<br />Any deficiency in the amount o,P uch aggregate monthly payment
<br />shall. units made good by the Burrower prior to the due date of the
<br />next such payment. constitute an event of default under this
<br />mortgage. The Lender may collect a "late charge' not to exceed four
<br />cents MC) for each dollar ($1) of each payment more than fifteen
<br />(IS) 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 Ern subsequent payments to be made by the Borrower, or
<br />refunded to the Borrower. If, however, the monthly payments made
<br />by the Borrower under (,a i of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums. as the case may be, when die same shall become due and
<br />payable, then the Borrower shall pay to the Lender any amount
<br />necessary to make up the deficiency. an or before the date when
<br />payment of such ground rents, taxes, assessments, o r insurance
<br />premiums shall be due. If at any time the Borrower shall tender to
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby, full payment of the entire inch :btedness represented thereby.
<br />the Lender shall, in computing the amount of such indebtedness.
<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
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<br />Or if the Lender acquires the property otherwise after default, the
<br />tender 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 />therisemaining unpaid under said note.
<br />4. That the Borrower will pay ground rents, taxes:, _ssessments.
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions. for which provission has not been made hereinbefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver Me official receipts therefor to the
<br />Lc�rdtr.
<br />The Borrower will pay all taxes which may be levied upon the
<br />Leader s interest in said real estate and improvements, and which
<br />may be levied upon this instrument or the debt secured hereby Mut
<br />only to the extent that such is not prohibited by law and only t& the
<br />extent that su ^h will not make this loan usurious), but excluding any
<br />income tax. State or Federal, imposed on Lender, and will fife the
<br />official receipt showing such payment with the Lender. Upoii .
<br />violation of this undenaking.nr-ifdie Borrower is prohiStelby any
<br />law now or hereahi:x- existing fimm dying the whole or a:n portion
<br />of the aforesaid t&,)—mor uponi!,-erendering ofaqy court decree
<br />prohibiting the paip-7nd by the Borrower of any such taxes, or if
<br />such law or decn,*: i,, ovides that-any amount so paid by the
<br />Borrower shall be credited on ths;.debt, the Lender shall have the
<br />right to give ninety days' wrimm- r:otice to the owner of the premises,
<br />requiring the paym6w of the d'e[!!2 if such notice be given, the said
<br />debt shall becomedd4 payable and collectible at the expiration of
<br />said ninety days.'
<br />6. That should the gorrowrx fail to pay any sum or keep any-
<br />covenant provided for in this ih-- mment, then the Lender. at Us
<br />option, may pay or perform the same, and all ev.penditures so rnaie-
<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 ruse of a default in the performance of any of the
<br />terms and conditici;s of this instrument or the said note. all the rents,
<br />revenues and income to be daivcd from the said premises during
<br />such time as the indebtednete Oall remain unpaid, and the Lender
<br />shall have power ro appoint an agent or agt cs it may desire for the
<br />purpose of repairing said premises and of rc.-ating the same and
<br />collecting the reatu :. 17evenues and incoer f,.•sra it may pay Ous of said
<br />incomes all expends of repairing said premises and necessary
<br />commissions and rxVenses incurred in renrng and managing the
<br />same and of ccfkt:ting rentals therefrom; the ha :ance remaining, if
<br />any, to be apphW to%vard the discharge of set-It 6.tdebtedness.
<br />8. That the &rro wer will keep the improvements now existing or
<br />hereafter erected cn the property, insured as may be required from
<br />time to nme by the Mender against loss by fire and other hazards,
<br />casuals:( :•.ard c-mlirgencies in such amounts and for such periods as
<br />may ba rojim-al by the Lender and will pay promptly. when due,
<br />any premiums ca such insurance. provision for payment of which
<br />has no been made hereinbefore. All insurance shall Ix; ranied to
<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 accepilblcltgitigLender. In
<br />Page 2 of 5 HUD- 92143DT -1
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