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Borrower and 1AMififer coWuant and agree as follows:
<br />1. That Borrower w,0 pay the indebte iness, as hereinbefore
<br />provided. Privilege is rexrved r -, pay the debt in whole or in part
<br />on any installment due di.r.
<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable undo: the terns of the
<br />note secured hereby, the Borrower will pay to the 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 holder hereof with funds
<br />to pay the next mortgage insurance premium if this instrument and
<br />the note secured hereby are insured, or a monthly charge (in lieu
<br />Ora mortgage insurance premium) if they are held by the
<br />Secretary of Housing arid Urban Development, as follows:
<br />(1) if and so long as said note of even date and this instru-
<br />ment are insured or are reinsured under the provisions of tine Na-
<br />tional Housing Act, an amount sufficient to accumulate in the
<br />hands of the holder one (i) month prior to its due date the annual
<br />mortgage insurance premium in order to provide 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 thereunder; or
<br />(11) If and so long as said note of even date and this instru-
<br />mrnt are held by the Secretary of Housinp and Urban Develop-
<br />ment, a monthly charge (ill lieu of a mortgage insurance premium)
<br />which shall be in an amount equal to one - twelfth (1112) of one -
<br />half (1/2) per centurn 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 du,, plus the
<br />premiums that %sill next become due and payable on policies of
<br />lire arid other hazard insurance covering the property, plus taxes
<br />and assessments next due on the property (all as estimated by the
<br />Len.ier) less all sums already paid therefor divided by the number
<br />of months to elapse before one (1) month prior to the date when
<br />such Ground rents, premiums, tares and assessments will become
<br />delinquent, such sums :o be held by Lender in trust to pay said
<br />ground rents, premiums, taxes and special assessments; arid
<br />(c) All payments mentioned in the r.:o preceding subsections of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added togeG 1-. 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 />orde- set forth:
<br />(1) 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 premium), as the case may
<br />be;
<br />(11) ground rents, taxes, assessments, fire and other hazard
<br />insurance prerniurns;
<br />(111) interest on If ,; note secured herehy;
<br />(IV) amortization of the principal of said note; and
<br />(V) late charges.
<br />Any deficiency in the amount of suol aggregate monthly pay.
<br />ment shall, unless made 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 (4¢) for eac!r follar ($I) of each payment
<br />more than fifteen (I5) days in arrears to cover the extra expense
<br />involved in handling delinquent payments.
<br />3. That if the total of the payments made by the Borrower
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents, taxes and
<br />assessments or insurance premiums, as the case may be, such ex-
<br />cess, if t)te loan is current, at the option of the Borrower, shall be
<br />credited by the Lender .,n subsequent payments to be made by the
<br />Borrower, or refunded to the Borrower. If, however', the monthly
<br />Payments made by tite Borrower under (b) of parag ph 2 `
<br />preceding shall not be sufficient to pay ground rents, xes and
<br />assessments or insurance premiums, as the case may bc, when the
<br />same shall become due and payable, then the Borrower shall pay
<br />to the Lender any amount necessary to make up the deficiency, on
<br />or 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 Bor-
<br />rower all payments made under the provisions of (a) of paragraph
<br />2 hereof which the Lender has not become obligated to pay to the
<br />Secretary of Housing and Urban Development and any balance re-
<br />maining in the funds accumulated 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 ule of the
<br />premises covered hereby, of 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 />CUTIlulated 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 />4. That the Borrower will pay ground rents, taxes, assessments,
<br />water rates, arid other governmental or municipal charges, fines,
<br />or impositions, for which provision has not been made
<br />hereinbeforc, and in default thereof the lender may pay the same;
<br />and that the Borrower will promptly deliver the official receipts
<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 improvernems, and
<br />which may be levied upon this instrument or the deLt secured
<br />hereby (but only to the extent that such is not prohibited by lave
<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 receipt showing such payment
<br />with the Lender. Upon violation of this undertaking, or if the
<br />Borrower is prohibited by any lase now or hereafter existing from
<br />paying the whole or any portion of the aforesaid tares, or upon
<br />the rendering of any court decree prohibiting the payment by the
<br />Borrower of any such tares, or if such la-.v or decree provides that
<br />any amount so paid by the Borrower shall be credited on the debt,
<br />:he Lender shall have the right to give ninety days' written notice
<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 />,fnd collectible at ttte expiration of said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this insn'ument, then the Lender, at its
<br />option, may paY or perform, the same, arid all expenditures so
<br />Paf7 2 !
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