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<br />Borrower and !.ender 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. together with, and in addition to. the monthly pavments
<br />of principal and interest payable under the terms of the note secured
<br />herebv, tbe 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 WI estimated by the Lender)
<br />less all sums already paid therefor dig iced by the number of months
<br />to elapse before one (1) tronth prior to the date when such ground
<br />roan premiums. taxes ard assessments will become deliquent. such
<br />m: —, . to be held by Lerdet-Y-C: 'trust to pay said ground rents.
<br />7 ,ors ta.,esard spe--0 ass;ssmenm; and
<br />(b) Ali prig; -n's r -- ;named in the ;jp -=ding subsection of this
<br />paragraph and all to be rnac&-:t der the roic si:cured
<br />hereby shall be added tea oe -;.i�� .: r� igregate ar.;�ant thereof
<br />shall be paid by the Borrower ea It in a single payment to be
<br />applied by the Lender to the folio' 4i� v-rts in the order set forth:
<br />(1) ground rents, taxes, asse4 =.ments, fie and other hazard insur-
<br />ance premiums;
<br />(11) interest on the note secured hemlvy
<br />(111) orn-- ization of the principal of said note; and
<br />(IV) 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 />next such payment, constitute an event of default under this
<br />mortgage. The Lender may collect a "la:: charge" not to exceed four
<br />coots (4¢) for each dollar W) of each payment more than fifteen
<br />! I5) days in arrears to co-ic r the extra expense involved in handling
<br />delinquent payments.
<br />3. That if the total of :te payr pmu made by the Borrower under
<br />(a) of paragraph 2 preco;!irg shat? exceed the amount of payments
<br />actually made by the Len, :5= for ground rents. taxes and assessments
<br />or insurance premiums, as the case may be, such excess, if the loan is
<br />current, at -ttt-z- option of the Borrower_ sh all be credited by the
<br />Lender o- sd:sequent payments to be trade by the Borrower, or
<br />ref.r�nded c ,be Borrower X however, the monthly p3vments made
<br />by the Borrower under (t p�of paragraph 2 preceding st? :' not be
<br />sz: °inert to pay ground rents, taxes and assessments or insurance
<br />premiums. as the case may be, when the same shall become due and
<br />payab�e, then the Borrower shall pay to the Lender any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents, taxes, assessments, or 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 indebtedness represented theret ),
<br />the (..ender shill. in computing the amount of such indebtedness,
<br />credit to the account of the Borrower any balance remaining In the
<br />funds accumulated undea the provisions of (a) of paragraph 2 hereof.
<br />If there shall be a defat;S,: ander any of the provisions of this
<br />instrument resulting in a public sale of the premises co,.cmd hereh•., .
<br />or if the !.ender acgwtes 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 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 saute: and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />5. The Borrower will pay all taxes which may be levied upon the
<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 Fcderal, imposed on Lender. and will file the
<br />official receipt show•Irtg such payment with the Lender. Upon
<br />violation,:.{ rhis undertaking, or if the Borrower is prohibited by any
<br />law ne * 6r•l;tmeafter existing from paying the whole or any portion
<br />of the a2t+:itf taxes. ar upon the rendering of any court decree
<br />prohibiting the payment by the Borrower ofariv s;a taxes, or if
<br />such law or decree provides that any amount.so. paid by the
<br />Borrower shall be credited on the debt., the Lender shall have the
<br />right to give ninety days' written noti'tw to the owner of 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. That should the Borrower fart tit pay any sum on keep env
<br />covenant p- ovided for In this Instrument, then the lender, at its
<br />option, rr.; 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 and all sums
<br />secured hereby in coy of a default in the performance of any of the
<br />terms and conditio-E, cf .,his instrument or the said note, all the rents.
<br />revenues and income- to be derived fro-i the said premises during
<br />such time as the indebtedness shall rem .ain unpaid, and the Lender
<br />shall have power to appoint any agent or agents --nay desire for the
<br />purpose of repairing said premises and of renting -' a same and
<br />collecting the rents. revenues and income. and r. ;may pay out of said
<br />incomes all expenses of repairing sad premises and necessary
<br />commissions and expenses incurred .r, renting and managing the
<br />same and of collecting rentals therefrom; the balance remdining, if
<br />any, to be applied towa-d • ' •e discharge of said i-,y :,tedness.
<br />S. That the Borrower w::f Meep tt:.-.Iproveme:.:s now existing or
<br />hereafter erected on the property. mir,.:d as may be required fret,
<br />time to time by the Lender against by fire and other hazards.
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by the Lender and will pay promptly, when due,
<br />any premiums on such insurance, provision for payment of which
<br />has no: been made herecabefore. All insurance shall be carried un
<br />corrpamies approved by the Lender ar.•d the policies and renewals
<br />thereof s'. ^all be held bti the Lender and have attached thereto loss
<br />payable clauses in fa4or of and in form acceptable to the Lender. In
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