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<br />Borrower and Lender covenant and agree as follows:
<br />1. That Borrower will pay the indebtedness.s.ikreinbefore
<br />provided. Privilege is reserved to pay the debt iz x -er in
<br />. 1Faa on any iastallment due date.
<br />:2. That, together with, and in addition to, the
<br />payments of principal and interest payable under tF terms of
<br />the note secured hereby. the Borrower will pay to t'ze Lender,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<br />(a) A sum equal to the ground rents, if any. next due, plus
<br />the premiums that will next become due and payable on policies
<br />of fire and other hazard insurance covering the property, plus
<br />taxes and assessments next due on the property (all as estimated
<br />by the Lender) less all sums already paid therefor divided Ey the
<br />number of months to elapse before one (1) month prior to the
<br />date when such ground rents, premiums, taxes and assessmenti
<br />will become delinquent, such sums to be held by Lender in trust
<br />to pay said ground rents, premiums, taxes and special
<br />assessments; and
<br />(b) All payments mentioned in the preceding subsection of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggregate
<br />amount thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender to the fallowing
<br />terns in the order set forth:
<br />(I) ground rents, taxes. assessments, fire a:rd. cter hazard
<br />insurance premiums;
<br />(11) interest on the note secured hereby;
<br />(111) amortization of the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate rnarinly
<br />payment shall, unless made good by the Borrower pe ."_'T to the
<br />due date of the next such payment. constitute an er e_n: of
<br />default under this mortgage. The Lender may colle.t, a elate
<br />charge" not to exceed four cents (4¢) for each dollar ($I) of
<br />each payment more than fifteen (15) days in arr=s to cover the
<br />extra expense involved in handling delinquent payments.
<br />3. That if the total of the payments mace 17y t' a Borrower
<br />under (a) of paragraph 2 preceding shalt eAf the amount of
<br />payments actually made by the Lender for ground rents, taxes
<br />a;.-!d assessments or insurance premiums, as the case may be.
<br />V 5 excess, if the loan is current. at the option of the
<br />shall be credited by the Lender on subsequent
<br />p k:�y- mrn.ts to be made by the Borrower, or refunded to the
<br />giarrower. If, however, the monthly payments made by the
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or
<br />insurance premiums, as the case may be, when the same shall
<br />become due and payable, then the Borrower shall pay to the
<br />Lender any amount necessary to make tip the deficiency, on or
<br />before the date when payment of such ground rents, taxes,
<br />assessments, or insurance premiums shall be due. If at any time
<br />the Borrower shall tender to the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness represented thereby, the Lender shall, in computing
<br />the amount of such indebtedness, credit to the account of the
<br />Borrower any balance remaining in the funds accumulated under
<br />the provisions of (a) of paragraph 2 hereof. If there shall be a
<br />default under any of the provisions of this instrument resulting
<br />in a public sale of the premises coverers hereby. or if the Lender
<br />acquires the property otherwise .after default,. the Lender shall:
<br />apply, at the time of the co4'm�ttxment of' such proceedings,, or
<br />at the time the property is athe-%i1se a.:4atit+ea ;,the balances clien
<br />remaining in the funds accumulaY.a't?j4t:r,(g1 of paragrap4--y
<br />preceding, as a credit against the amount of principal then
<br />remaining unpaid under said note..
<br />4. That the Borrower will pay ground rents, taxes,
<br />assessments, water rates, and other governmental or municipal
<br />charges, fines, or impositions, for which provision has not been
<br />made hereinbefore, and in default thereof the Lender may pay
<br />the same, and that the Borrower will promptly deliver the
<br />official receipts therefor to the Lender.
<br />5. The Borrower will pay all taxes which may be levied upon
<br />the Lender's interest in said real estate and improvements, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (but only to the extent that such is not prohibited by law
<br />and only to the extent that such will not make this loan
<br />usurious), but excluding any income tax, State or Federal,
<br />imposed on Lender, and will file the official receipt showing
<br />such payment with the Lender. Upon violation of this
<br />undertaking, or if the Borrower is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes. or
<br />if such law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt, the Lender shall have
<br />the right to give ninety days' written notice to the owner of the
<br />premises, requiring the paymem of the debt. If such notice be
<br />given, •t6<:e said debt shall become due, payable and collectible at
<br />the expiration of said ninety days'.
<br />6. That should the Bcrrewer fail to pay any sum or keep any
<br />covenant provided for in this inrimiment, then the Lender, at its
<br />option, may pay or perform the -Y=- e, and all expenditures so
<br />made shall be added to the prindpal sum owing on the said
<br />note, shall be secured hereby, and s' a:l bets interest at the rate
<br />set forth in the said note, until pzl,
<br />7. That the Borrower hereby ars•gns, transfers and sets over
<br />to the Eder, to be applied fc,:H, rd the payment of the now
<br />and all sums secured ti:reb ;, nt t;:ase of a default in the
<br />performance of any c. ' .r: wnns and conditions of this
<br />instrument or the s:.i{ -::e, all the rents, revenues and income
<br />to be derived from Os,, said premises during such time as the
<br />indebtedness shall remain unpaid. and the Lender shall have
<br />power to appoint any agent or a�,:c:s it may desire for the
<br />purpose of repairing said premise: and of renting the same and
<br />collecting the rents, revenues and : ncome, and it may pay out of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and experowas incurred in renting and.
<br />managing the same and of collt�ztjng rentals therefrom; the
<br />balance remaining, if any, to be applied toward the discharge of
<br />said indebtedness.
<br />8. That the BOrrC%Ver will keep the improvem:nts now
<br />existing or hereafter erected on the property. insured as may be
<br />required from time to time by the Lender against loss by fire
<br />and other hazards. casualties and contingencies in such amounts
<br />and for such periods as may be required by the Lender and will
<br />Pay promptly. when due, any premiums on such insurance,
<br />provision for payment of which has not been made
<br />hcreinbeforc. All insurance shall be carried in companies
<br />approves) by the Lender and the policies and renewals thereof
<br />shall be held by the Lender and have attached thereto loss
<br />Payable clauses in favor of and in form acceptable to the
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