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Borrower and Lestder covrnrat and agree as fobows:
<br />1. That Borrower will pay the indebtedness, as txreinbefore
<br />provided. Privilege is reserve; 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, next due, plus toe
<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 alrmdy 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, taxt< and assessments will become deliquent, such
<br />sums to be held by Lender in trust to pay said ground rents,
<br />premiums, taxes mid special assessments; and
<br />(b) All payments mentioned in the preceding subsecton of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall be added together, and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to be
<br />applied by the Lender to the following items in the order set forth:
<br />(1) ground rents, taxes, assessments, fire and other hazard insur-
<br />ance premiums:
<br />(11) interest on the ro ;r secured hereby;
<br />(111) amortization of the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of suc*i 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 a.)llect a "late charge' not to exceed iour
<br />ants (ac) for etch dollar (S 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 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. it the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower, or
<br />refunded to tht Borrower. If, however, the monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding shall riot be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums, as the case may be, when the same shall become due and
<br />payable. 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':he note s.ccured
<br />hereby, full payment of the entire indebtedness represented thereby,
<br />the Lender shall, in computing the amount of such indebtc:;rca >.
<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,
<br />or if the Lender acquires tlx: property otherwise after default, the
<br />Loader shall apply. at the: time of the oommertcematt of such
<br />proceedings, or at the time the property -r, otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 prece thng, as a credit against the amount of principal
<br />there remaining unpaid under said note.
<br />4. That the Bermwer will pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipal charges. forts, or
<br />impositions, for which provision has not been made hereinb6ore,
<br />and in default thereof the Lender may pay the saute; and that the
<br />Borrower will promptly deliver the offwW receipts therefor to the
<br />Lender.
<br />5. The Borrower will ;pay all axes which may be levied upon"the
<br />Lender's interest in said teal estate and improvements, and which
<br />may be levied upon this i.rlstrurnent 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 ax, 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 axes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such 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 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 dare, payable and collectible at the expiration of
<br />said ninety 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 applieJ toward the payment of the note and all sums
<br />secured hereby in cane of a default in the performance of ar.y of the
<br />terms and conditions of this instrument or the said note, ali the rents,
<br />revenues and income to be derived from the said premises during
<br />such time as the indebtedness shall retrain unpaid, and the Lender
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose of repairing said premises and of renting thy. same and
<br />collecting the rents, revenues and income, and it may pay out of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expensesaincurred 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 fare 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 not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the fender and the policies and renewals
<br />thereof shall be held by the fender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. In
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