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Borrower r,ad Leader covenant 2nr5 agree as Wows:
<br />1. That Parrower will pay the indebtedness, as hereinbefore,
<br />provided. Pri.i :rge is reserved to pay the debt in whole or in part
<br />on any irtstallravrit due date.
<br />2. That, together with, and in addition to, the monthly
<br />pa)mcn(s of principal and interest gable under the terms of Cite
<br />note secured hereby, the Borrower Kill pay to the Lender, on the
<br />first day of each month urail d;c said note is fully paid, the
<br />following sums:
<br />(a) Amount sufitcient to'pro%ide the holder hereof with funds
<br />to ra) the next mortgage insurance premium if this instrument and
<br />the note secured hereby arr .nsured. or a inorlthly charge (in lieu
<br />of a mortgage insurance premium) if they are heid by the
<br />Secretary of Mousing and Urban Development, as follows:
<br />(i) tf and so long as said note of even date and this instru-
<br />ment are insurc,i or are reinsured under the provisions of the Na-
<br />tional Housing Act, an au:ount sufficient to accumulate in the
<br />hands of the holder cne (1) month ;.rior to its due date the annual
<br />mortgage insurance premium in order to pro :io.e such holder with
<br />funds to pay such premium to the Secretary of Mousing and Ur-
<br />ban Development pursuant to the National ifou%ing Act, as
<br />an,crled, and applicable Rczulation, thereunder; or
<br />(ll) If and ;o iong.as ,aid note of c%cn date and this instru-
<br />ment are held b) the Sec-c;_-!y of Mousing and Urban Lk\clop-
<br />nient, a monthl) charge (in ;(eu of a :mortgage insurance Premium)
<br />which still! tom, in an ameumtt equal to one - twelfth (I, 12) of one -
<br />half (I, Z) per centunl of the a%ciace outstanding balance due on
<br />the note conmpu(ed m1hout taking into account delinquencies or
<br />plepayltients;
<br />(h) A sum equal to the ground rents, if any, next due, plus the
<br />Neli:iiInis that will next become due and payable on policies of
<br />fire and otnyr hazard insurance co %ering the property, phis taxes
<br />and assessments next Jac on (lie property (all as or6rlared by the
<br />l_c;;Jer) less all sums already paid therefor di%iJcd by the number
<br />of months to elapse before one (1) nrontil prior to the date when
<br />such ground rents, premium!,, taxes and assessments will become
<br />delinquent, such suns to be held by Lender in ;rust to pay said
<br />ground rents, premiums, taxes and sMial assessments; and
<br />(c) All pa)nients mentioned in the two preceding %ubse bons of
<br />this paragraph and all pa)nicnts to be made under the note
<br />secun•d hereby shali be added together, and the aggregate amount
<br />thereof shall paid by the Burrower each month in a single pay-
<br />ment to be applied by he Lender to the following items in the
<br />order set forth:
<br />(1) premium charges under the contract of insurance %ith
<br />the Secretary of Mousing and Urban De%elopinem, or monthly
<br />charge (in lieu of morteace instirante prerniurn), 3% the case may
<br />)x;
<br />(11) ground rents, to -xes, assessments, fire and oth, izard
<br />insurance premiums;
<br />(111) Interest on the note secured hereby;
<br />(IV) amortization of the principal of said note; a.
<br />IV) late c`iargc,.
<br />Any deficiency in the amount of such aggregate monthl. pay-
<br />ment shall, nriless made good b\ the Borrower prior to the due
<br />date of :he next such payment, constitute an c%cnt of default
<br />under this niortga -;e. The Lender may collect a "late charge" not
<br />ro exceed four cents (,Cl for each dollar (SI) of each payment
<br />tr'S a.-_:_ .-
<br />89= 102577
<br />more than fifteen (15) days in arrears to cover rh- 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 ex,,ctd the �, mrtount of
<br />payments actually made by the Lrnd-r for grourvJ rents, taxes :.nd
<br />assessments or insurance premiums, as the case may be,, uch ex-
<br />cess, if the loan is current, at the option of the Borrov.cr, shall 'k-
<br />credited by the Lender en subsequent payments to be rna,ic by t ie
<br />Borrower, or refunded to the Borrower. If, bowcver, the monthl:
<br />payments made by the Borrower under (b) of panagrapt: 2
<br />preceding shall not he suffkient to pay ground rents, tau-% and
<br />assessments or imsurance premiums, as the case may Ile, when tht
<br />same %hal become due and payable, then the Borrower shall pa,
<br />to the Lender any amount necessary to male up the deficiency, on
<br />or before tfc date whca payment of such ground rents, taxes,
<br />assessments, or insurance premiums shall be due. 11' at any tittle
<br />the Borrower shall tender to the Lender, ir•. accordant with the
<br />pro•,isioll, of d:: 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 provision% of (a) of paragraph
<br />2 hereof which The Leerier has not bcome obligated to pay to the
<br />Secretary of Housing and Urban Development and in, balanc•: re-
<br />mairing in the funds accurnulated under the pms:,ion, of (b) of
<br />paragraph 2 `icreof. If there shall be a default under an% of tl:e
<br />provisions of tills in,trument resulting in a public wile of the
<br />pre li,ses covered hereby, or if the Lender acquire tiir property
<br />otnemisc after default, the Lender shall appl%. at the time of the
<br />cormnencemcni of such procstdings, or a: the time the property 1,
<br />other-.%i%c acquired. the balance then remaining in cite funds ac
<br />cumulated under (b) of paragraph 2 preceding, a, a crWit arJUt!
<br />The amount of-principal then remaining unpaid tndcl said nolo,
<br />and shat! properly adjust any payments which shall have byes
<br />made under TO of paragraph 2.
<br />J. That the Borrower will pay ground rent,, taxes, a„e +.nter,h,
<br />uater rates, and other governmental or municipal charges, fine,,
<br />or impositions, for which pru %i%ion has :rot been made
<br />hcreintvtfore, and in default thereof the Lender ma) pay the ,ante:
<br />and that the Borrower will prompil: deliver the otfic :.il rc,:cipts
<br />, herefor to the Lender.
<br />5. The liorro%%er will pay all taxes %%I :iclt 111.1% be ic%icd upon
<br />the Lender'% intercom: in said real estate and inipro%cmcnts, and
<br />which may be leicd upon this instr a icn, or ate debt ,ccurL-
<br />hereby (but only to The extent that such a nut
<br />and on!s to the extent that such will not make Hit% loan u,uriou,),
<br />but excluding any insane W, State or I edera% inip o,; I on
<br />Lender, and sill file the official Ittieipt showing +,rely p.i)tncn;
<br />with the Lender. Upon violation of this undertaking, or it the
<br />Borrower is prohibited by any law no%% or hereafter e\i,Iing Lam
<br />paying the \%hole or any portion of the aforeaid ta\e, or upon
<br />the rendering of any court decree prohibiting the payment b) the
<br />Borrouer of any such taxes, or if such law or decree pro%iJ. :\ that
<br />any amount %o paid by the Borrower ^,hall toe credited on tLc debt,
<br />the Lender shall ha%c the right to gi%c ninety days* %%rirten nonce
<br />to the owner of the prcnii,e%. requiring the payment of the dr.•ht.
<br />It well notice be gi%en, the ,aiJ debt shall tleconie due, payable
<br />0"d collectible at the expiration of said ninety
<br />6. That should the Burruv\rr" tail to pay any wen or keep any
<br />covenant pio%idcd for in chi% imirun:ent, then the I cndem. at it%
<br />option. Ilia\ pa) or perform the same, and all c\pcuJnures so
<br />Paget f•$ •_ J
<br />HUD•92143DT
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