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Borrower and Lender covenant and vgrre as follows:
<br />1. That Borrower will pay the indebie.lrtess, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in w•i:oic or in part
<br />on any installment due date-
<br />2. 'Brat, together with, and in addition !o, the monthly
<br />payments of principal and interest payable under the terms of the
<br />nose secured hereby, the Borrower will pay to die Lender, on the
<br />first day of each month until the said note is fully paid, the
<br />following sums:
<br />(a) Amount sufficient to provide the molder hereof with funds
<br />to pay the next mortgage insurance premium if this instrument and
<br />the note secured hereby are ir-sured, or a ninatlily charge (in lieu
<br />of a.rnortgage insurance premium) if they are held by the
<br />Secretary of )sousing and Urban Development, as follows:
<br />(t) If and so long as said note of even date and this instru-
<br />ment are insured or are reinsured under the provisions of the Na-
<br />tional Housing Act. an amount sufficient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the annual
<br />mortgage ir- surance premium in order to 1•iovide such holder with
<br />funds to pay such premium to the Secretary of Housing and Ur-
<br />ban Development pursuant to the National Housing Act, as
<br />amended, and applicable Regulations !hercun.icr, or
<br />(II) If and so lone as said note of even date and this instru-
<br />ment are held by the Secretary of Housing and Urban Develop-
<br />ment, a monthly charge (in lieu or a tnorrgaee insurance preiniutn)
<br />which shall be in an amount equal to one - twelfth (1/12) of one -
<br />half (1/2) per centum of the average outstanding balance due on
<br />the note computed without taking into account delinquencies or
<br />prepayments;
<br />(b) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will neat become due and payable on policies of
<br />fire and other hazard insurance covering the property, plus taxes
<br />and assessments next due on the property (all as estimated by the
<br />Lender) less ar sums already paid therefor divided by the number
<br />of m -)nths to clspse tiefore one iI) m:mth prior to the date when
<br />such ground rears, premitints, taxes and assessments will become
<br />delinquent, such sums to be held by Lender in trust to pay said
<br />ground rents, premiums, taxes and special assessments: and
<br />(c) All payments mentioned in the two preceding subsections of
<br />this paragraph and all payments to be made tinder the note
<br />secured hereby shall be added together, and the aggregate amount
<br />thereof shall be paid by the Borrower each month in a single pay-
<br />ment to be applied by the Lender to the following items in the
<br />order set forth:
<br />(I) premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in lieu of mortgage insurance pretnium), as the case may
<br />be;
<br />(11) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(III) interest o„ the note secured hereby;
<br />(IV) amortization of the principal of said note; and
<br />(V) late charges.
<br />Any deficiency in th> ahtount`of'such dggregate rttonthfy "pap= "
<br />ment shall, unless rn ide good by the Borrower prior to the due
<br />date of the next such payment, constitute an event of default
<br />under this mortgage. The Lender may collect a "late charge" not
<br />to exceed four cents (4C) for each dollar ($I) of each payment
<br />C;4 102145
<br />more than fifteen (1S) days in arrears to cover the extra expense
<br />insc:N.1 in handling delinquent payments.
<br />3. 11„ is if the total of the payments made by the Borrower
<br />under (b• of paragraph 2 preceding shall exceed the amount of
<br />paymenu; acnrally made by the Lender for ground rents, taxes and
<br />assessments or insurance premiums, as the case may be, such ex-
<br />cess. if Ill,- loan is current, at the option of the Borrower, shall be
<br />edited by the Lender on subsequent payments to be made by the
<br />Borrower, or refunded to the Borrower. If, however, the monthly
<br />payments made by the Borrower under (b) of paragraph 2
<br />precedinp shall nos be suft c9rtt to pay ground rents, taxes and
<br />assessmc: is or insurance premiums, as ilic case may be, when the
<br />sa:oc sha!I !vconw. chic and payable, then the Borrower shall pay
<br />tc file ' -ender any amour•t necessary to make up the deficiency, on
<br />or t*aoi a ,he elate when payment of such ground rents, taxes,
<br />asscssmce ; :, or insur; nee premiums shall be due. If at any time
<br />the Borrower . :h ill tender :o the Lender, in accordance with the
<br />provisions of .he 7.oic secured hereby, full payment of the entire
<br />indebtedness represented thereby, the Lender shall, in computing
<br />the amount of such indebtedness, ci-dii to the account of the Bor-
<br />rower all payments made under the provisions of (a) of paragraph
<br />2 hereof a hich the Lender has not become obligated to pay to the
<br />Secrclo ry of Hotrsiug and Urban Development and any balance re-
<br />rimming in the funds accurriulated under the provisions of (b) of
<br />paragraph 2 hereof. If there shall be a default under any of the
<br />provisions of this instrument resulting in a public sale of the
<br />premises covered hereby, or if the Lender acquires the property
<br />otherwise after default, the Lender shall apply, at the time of the
<br />commencement of such proceedings. or at the time the property is
<br />otherwise acquired, the balance then remaining in the funds ac-
<br />cumulated under (b) of paragraph 2 preceding, as a credit against
<br />the amount of principal then remaining unpaid under said note,
<br />and shall properly adjust any payments which shall have been
<br />made under (a) of paragraph 2.
<br />3. That the Borrower will pay ground rents, taxes. assrssnients,
<br />water rents, and other gi,nernntental or municipal charges, fines,
<br />or impositions, for which provision has riot been made
<br />hereinbefore, and in default thereof the Lender may pay the same;
<br />and that he Borrower will promptly deliver the official rcceip :s
<br />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 improvcntcnis, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (bu, only to the extent that such is not prohibited by law
<br />and only to the extent that such will not make this loan usurious),
<br />but excluding any income tax. State or Federal, imposed on
<br />Lender, and will file the official rct:cipt showing such paymcm
<br />with the Lende•. Upon violation of this undertaking, or if the
<br />Borrower is prohibited by any law now or hereafter existing front
<br />paying the whole or any portion of the aforesaid taxes, or unon
<br />the rendering of any court decree prohibiting the payment by the
<br />Borrower of any such taxes, or if such law or decree provides chat
<br />any amount so paid by the Borrower shall be credited on the debt.
<br />the Lender shall have the right to give ninety days' "riven noti %e
<br />to the owner of the premises, requiring the payment of the debt.
<br />If such notice be given, the said debt shall become due, payable
<br />and collectible at the expiration of said ninety days.
<br />6. 'chat should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this instrument, then the tender, at its
<br />option, mzy pay or perform the same, and all expenditures so
<br />Pagsl 2 Sfi J t \ HUD- 92143DT
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