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<br />Borrower and Leadrr covetaw aad agee as forows: :: or if the Lender aognires the property otberwise aferdefauh, the
<br />Lender shall apply. at the time of the commumeement of such
<br />1. That Borrower will pay the indebtedness, as hereinbefore proceeding-, or at the time the property is otherwise acquired, the
<br />provided. Privilege is reserved to pay the debt in whole or in pan on bafance then remaining in the funds accumulated under (a) of
<br />any imvatlment due date. paragraph 2 preceding, as a credit against the amount of principal
<br />* then remaining unpaid under said note.
<br />2. That, together with, and in adtlitkm to, the monthly payments
<br />of principal and interest payable under xhc 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 node 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 imurance covering the property. plus taxes and
<br />assessments next due on the property (aY as estimated by the Lender
<br />less all sums already paid therefor divided by the number of months
<br />to elapse beft;re one (1) month prior to the date when such ground
<br />rents, premiums. taxes and assessments will become deliquent. such
<br />sums to be held by Lender in trust to pay said ground rents.
<br />premiums. tares and special assessments: and
<br />(bI AIt payments mentioned in the preceding subsectior, of this
<br />paragraph and all payments to be made unAer 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 />(II) interest on the note secured hereby.
<br />(111) amortization of the principal of said note; and
<br />(!V) late charges.
<br />Anv deficiency in the amount of such aggregate monthly payment
<br />shall, uniess 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 "late charge" not to exceed four
<br />cents (4e) for each dollar (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 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, at 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 the Borrower. If, however, the monthly payments made
<br />by the Rorro. ender (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, iaxes and assessment% 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 the note secured
<br />hereby, full payment of the entire indebtedness represented thereby.
<br />the Lender shall, in computing the amount of such indebtedness,
<br />credit to the account of the Dl rrower any balance remaining in the
<br />funds accumulatcd 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 />4. That the Borrower will pay ground rents, taxes, assessments.
<br />water rates, and other governmental or nivaicipal charges. fines, or
<br />impositions, for which provision has not been mace hereinbefore,
<br />and in default thereof the Lender 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 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 pmhibittA by law and only to the
<br />extent that such will not nuke this ban usurious), but excluding any
<br />income tax. 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 taxes. or upon the rendering of any court decree
<br />prohibitn2 the payment by the Borrower of any such taxes, or if
<br />such lay: 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 due, payable and coilectible at the expiration of
<br />said ninety days.
<br />6. That should thy° Borrower fail to pay any sum or kr:p 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 applied toward the payment of the note and all sums
<br />secured hereby in 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 income 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 />collating 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 expenses incurred 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 />R. That tttc Borrower will keep the improvements now existing or
<br />hereafter erected on the property, imured as may bt: required from
<br />time to time by the Lender against loss 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 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. !n
<br />Page 2 of 5 HUD- 92143DT -1
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