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<br />BorrbMer and txn*r earensnt and agree as foltorrs:
<br />I. That Borrower 'Will pay the indebtedness, as hercinbefore
<br />provided. privilege is reserved to pay the debt in whole or in part
<br />on any installment due date.
<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable under the terms 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 />of a mortgage insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development, as follows:
<br />(1) if and so lung as said note of even date and this instru-
<br />ment are insured or are reinsured under the provisions of the Na-
<br />tional (busing Act. an amount +;rfieient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the annual
<br />mortgage insurance premium is erdcr to provide such holder with
<br />funds to pay such .tae. Secretary of. Housing and Ur-
<br />ban Development r41175tiant �� zin National Mou..sng Act, as
<br />amended, and appli :o�!e Raw :z�=. ns thervt:nder, er
<br />(11) -if and so long a; said note of eve^ 7 :�_•.- t�iru-
<br />ment are held by the Secretary of Housing e.1Z Des. :�ap-
<br />ment, a monthly charge (in lieu of a mortgcge :::rare premium)
<br />which shall be in an amount equal to one- t%4,i.e'h (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 an),, next due. plus the
<br />premiums that will next become due and pay: I-b: on policies of
<br />fire and other haz.:.-d insurance covering the pr :periy, plus taxes
<br />and assessments next due on the propeny (all as olirnatrd by tore
<br />Lender) less all sums already paid therefor divided by the eaalher
<br />of months to elapse before one (1) month prior to the dare when
<br />such ground rents, premiums. taxes and assessments will become
<br />delittqu.nt, such s_wns to be held hv- I ender in trust to pav said
<br />ground rents, prenvwns. tares and special assessments; and
<br />(c) All payments mentioned in Cite two preceding subsections of
<br />this paragraph and all payments to be made under the none
<br />secured hereby shall be added together. and the. aggregate aniount
<br />thereof shall be ,? : :t: by the Borrower eaclr inanth in it single pay-
<br />ment to be app,,oi by the Lender to the fct`lasing items in the
<br />order set forth.
<br />(1) prerri: m charge,. under the contract of insurance with
<br />the Secretary c` Housing and Urban Development, or monthly"
<br />charge (rut [i s a rrtortgage insurance premium). as the case may
<br />be;
<br />(11) ground rents, tares. assessments. fire and `i :jard
<br />insurance premiums;
<br />(111) inte.v i on the note secured here"'%.
<br />(IV) amortisation of the prin:ip,il of -IJ note; and
<br />(Y) late charges.
<br />Ar,y deficiency in the amount of such aggregate morn h.; Pay
<br />meat shall. unless made good by the Horrtswer prior to tLe due
<br />date of the mxv such paynt.nt. constitute all event of detauFc
<br />urder this morigage. The Lender may collect it "late :harg.e" not
<br />to oweed four cents (40) for each dollar ($Il of each payment
<br />more than fifteen (15) days in arrears tcv 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 avt tmlly made by the t Crider for ground rents. taxes and
<br />assess.+nw ;s or, insurance premiums. as the case may be, such ex-
<br />cess. if ooze loan is current, at the option of the Borrower, shall be
<br />credited by the Lender on subsequent payments to be made by the
<br />Borrower, or refunded to the Borrower. (f. however, tite monthly
<br />payments made Ity tite Borrower under (b) of paragraph 2
<br />preceding shall rot be sufficient to pay ground rents, taxes and
<br />assessments or insurance premiums, as the ease may be, when the
<br />same shall become due and payable, then the Borrower shall pay
<br />to the Lender an) amount .necessary to make up the defieicncy, on
<br />or before the date when payment of such grizvad rents, taxes.
<br />assessments, or insurance premiums shall ie If at any time
<br />the Borrower shall tender to tfse Lender, it 1L,..•oidance with the
<br />provisions of the note secures: hereby, full payment of the entire
<br />indebtedness represented thereby, the Lender shall, in computing
<br />the amount ,of such indebtedness, credit to ;'ie account of the Bor-
<br />ro%%cr 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 ales �halance re-
<br />maimng in the funds accumt:zated under the provision, of (h) of
<br />paragraph 2 hereof. If there shall be a default under any of the
<br />provisions of this instrument resulting in a lsublic ,ale of the
<br />premises covered hereby, or it :':e Lender acquires the property
<br />otherwise after default, the Le.7�'zr ,hail aoply. at the time of the
<br />commencement of such procee4 i,_:�s: x'a:' the time the property is
<br />otherwise acquired, the balarci ,'et.,`�. :' ring in the funds ac-
<br />cumulated under (b) of paragrif 9t 2 .gee : % :ng, as a credit agaim[
<br />the amount of principal then rertta-nihg raid under said note,
<br />and shall properly adjust any ptyntents which shall have been
<br />made under (a) of paragraph":
<br />4. "Thal the Borrower coat n,,, ground rents, taxes,.aslas,ntents.
<br />water rates, and other goveraiiemal or TnUtticipal char_* s, fines.
<br />of mtpositions, for which pro%iWon has not been made
<br />`tercinbefore, and in default ?N-zrcof the Lender nia; 74,. the same:
<br />attd that the Burrower will p• -aptly deliver the o1'.-ti -ztcipls
<br />:hsnefor to the Lender.
<br />i. The Borrower will pat a;l ta%0 which may be lccied upon
<br />the I eider's interest in said r:al estate anti improvements, and
<br />which may be levied upon r,,, .nsuunient or the dell ,.:cured
<br />hereby (but only to the cs a :hat such is not protai ! += by law
<br />and only to the extent that iach will not make this usurious).
<br />but excluding any income tax. State or 74,X- -. impored tin
<br />cider, and will file tite official receipt - i:.o.orig such payment
<br />with the Lender. Upevti %iolalit +n of this ., ijertakiiig, it if the
<br />Borrower is prohibited by -: is law now or hereafter %Listing from
<br />paying the whole or any ?_Jr' con of the aforesaid fasces. or upon
<br />the rendering of any cos:v d:crce prohibiting the payment by the
<br />Borrower of any such ta_s% -�, ur if such law or decree provides 111.51
<br />anv amount so paid by :1-,c ilorro %wr shall lie credited till the dc(u,
<br />.for I ender shall have 111 t:, ;ht ttv five ninety day: %%Title" notice
<br />"t the owuw of the prcmra rcquinng the pa►ntent of the debt.
<br />If such notice be given, 4111: •aid debt shall bec.vne duc. payable
<br />antic lilv,11bl, at the ctrirution of said snugly days.
<br />6. 'ihut should the Horttmer fail tr+ pav any stint or keep any
<br />cosenant provided for in this instrunwi t. then the I cider, at its
<br />option, may pay or perform the same. and all cslundiutres so
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