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Borrower and Lender covenant and ages as foa"s:
<br />1. That Borrower will pay the indebtedness, as hereiabefore
<br />provided. Privilege is reserved to pay the debt in whole or in part on
<br />any installment dire date.
<br />2. That, together with, and in addition to, the monthly payments
<br />of principal and interest payable under the terns 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 suns
<br />(a) A cunt equal to the ground rents, if any, next due, plus the
<br />premiums that will next 1•ecome due and payable on policies of fire
<br />and other hazard insurance covering the property, putts taxes and
<br />assessments next due on the property (cU as estimated by the Leader)
<br />less all sums already paid therefor divided by tht number of months
<br />to elapse before one (1) month prior to the date when such ground
<br />rents, premiums. taxes and assessments will become deligtrent, such
<br />sums to be held by Lender in trust to W t said ground rents,
<br />premiums, taxes and special assessment,: and
<br />(b) All payments mentioned in the preceding subsection of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall :x added together, and the zggregate 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 />(II) 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 monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an cycnt of default under this
<br />ortgage. The Lender may collect a "late charge" not to exceed four
<br />cents (4e) for each dollaf (S I) 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 harrower under
<br />(a) or paragraph 2 preceding shall exceed the amowrt of payments
<br />actually made by the Lender for ground rents, taxes and assessment`
<br />or insurance premiums, as the case may be. such excess, if the loan is
<br />current, at the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to be madz by the Borrower, or
<br />refunded to the Borrower. If, however, the monthly payments made
<br />by the gorro%%er under (a) of paragraph 2 preceding shall not 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 an 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 he due. If at any time the Borrower shall tender to
<br />the Lender, is accordance with the provisions of the note stcurcd
<br />hereby, full payment of the entire indebtedness represeniec' hereby,
<br />the Lender shall, in computing the arnount of such indebtedness,
<br />.redit to the account of the Borrower an balance remaining in the
<br />funds accumulated under thr- provisions of (a) of paragraph 2 hereof.
<br />If there shall be a default under an of the provisions of this
<br />instrument resulting in a public sale of the premises covered hereby,
<br />1021'72 .
<br />or if the Larder acquires the propertry otherwise after default, the
<br />Lender shall apc ir. at the time of the eommenoeroent of such
<br />proceedings. at at the time the property is otherwise }ogrprtd, 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 />there remaining unpaid under said note.
<br />4. That the Borrower vtnil pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipal charges, fmc or
<br />impositions, for which provision has not been made bercinbefore,
<br />aad in default thereof the (ender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />5. The Borrower will pay s'1 taxes which may be levied upon the \
<br />Lender's interest in said real estate and imnrovedtFrtts, and which
<br />may be levied upon this instrument or the debt sccdi- hereby (but
<br />only to the extent that such is not prohibited by law and omv to the
<br />extent that such will not make this ban usurious), but excluding any
<br />income tax. State or FedrraL imposed on Leander, 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 taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes, or if
<br />st -sh law or deuce provides that any amount so paid by the
<br />Borrower sha l be credited on the debt, the fender 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 due, payable and ccalcctible at the expiration of
<br />said ninety days.
<br />b. That should the Borrower f.il to pay ary sum er 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 w the rate set forth in the
<br />said note, until paid.
<br />7. That t: c Borrower hereby assigns, transfers and sets over to the
<br />Lender, to be applied toward the payment of -he note and all sums
<br />secured hereby to case of a default in the performance of any of the
<br />terms and conditions of this instrument or the said note, all the rents,
<br />revenues and incemc to be derived from the said premises during
<br />such time as the indebtedness shall remain 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 the same and
<br />collecting the rents, revenues and income, ind it may pay out of said
<br />intomes all cx; crises of repairing said premises and necessary
<br />commissions and cx;)cnses incurred in renting and managing the
<br />same and of4collecting rentals therefrom; the balance remaining, if
<br />ear, to be applied toward the discharge of said indebtedness.
<br />8. That the Ikirrower will keep the improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />time to Arne by the Lunde.: against loss by fire and other hazardr„
<br />casualties and contingcncies in such amcunts and for such periods as
<br />may be required by the Lender and will pay promptly, when due,
<br />an- 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 Lender and the policies and renewals
<br />thereof shall be held by the Lender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. in
<br />"age 2 or 5 HUD- 92143D7 -1
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