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<br />Borrower and Lender covenant and agree is follows
<br />I. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the d..-bt in whole or in part
<br />on any instalment due date.
<br />2. That. together with, and in addition to, the monthly
<br />payments of principal and interest payable undcr the team of the
<br />note secured h.--eby, the Borower, 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 ;rovid, the holder hereof with funds
<br />to pay the next mortgage insurance premium if this instrument. and
<br />the note xcuied hereby are : nsured, or a monthly charge (in /icu
<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 tong as said note of nen date and this instru-
<br />ment are insured or are reinsured under he prosuions of the %a-
<br />tional Housing Act, an amount sufficient io uccurnulate in the
<br />hands of the holder one (1) 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 De.clopmeni 1-ursuant to the National lot<sing Act. as
<br />amended, and applicabie Regulations thereu-hder; or
<br />(11) If a,.v' so long as said note of . en dzte and this instru-
<br />ment are held the Secretary of Housia. and Urban Develop-
<br />men(, a monthly charge (in lieu of a rnorf, age insurance prerniunt)
<br />which shall be in an amount c,,s,al to one -i+ elft , (1.`12) of one -
<br />half (lit) per cennum o.f the average outst:u.dirg balance due on
<br />the note computed without taking into acc!,unt delinquencies or
<br />prepayments:
<br />!b) A sum equal to the ground rims, if any, next due, plus the
<br />h;ren,iums that will next become due and nay'a_te on policies of
<br />fire and other hazard insurance covering he property, plus caves
<br />and assessments next due on the prei e-ty ;all as estimated by' the
<br />Lender) less al! sums already paid th;refcr disided by the number
<br />of months to elapse before cue fl) month, prior to the date when
<br />such ground rents, premiums, t.a:xes and .assessments will become
<br />delinquent, such sums to be `eld ^y Le: ,;er in trust to pay said
<br />ground rents, premiums, t;,•xc, and spec .1 assessments; and
<br />(c) All payments mentioned in tl,i two preceding subscctiors of
<br />this paragraph and all payments to be m.ide u.-dcr the note
<br />secured hereby shall be added to'o:ther.. id the aggregate amount
<br />thereof shall be paid by' the L. i wer ca.h month in a single pxv-
<br />ment to be applied by the Lender to the following items is the
<br />otder set forth:
<br />(1) premium charges under the contract of insurance .with
<br />(tie Secretary of Housing and Urban Development, or monthly
<br />charge (in lieu of mortgage insurance premium), as the case may
<br />bc;
<br />(it) ground ients, taxes, assessments, fire and o ther hazard
<br />insurance premiums;
<br />(111) interest on the note secured hereby;
<br />(IV) amortization of the principal of said nose; and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate monthly pay -
<br />mcnt 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 Leader may coilcct a "date charge" not
<br />to exceed iota cents (4C) for each dollar (SD of each payment
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<br />t9-- 10257.9
<br />more than fifteen (M days in arrwars 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 grounoil rents, taxes and
<br />assessments or insurance premiums, as the cast may be, such ex-
<br />cess, if the loan is current, at the option of :he Borrower, shall be
<br />credited by the Lender on subsequent payments to be made by the
<br />Borrower, or refunded to the Borrower. If, however, tac monthly
<br />payments made by the Borrower under (b) of paragraph Z
<br />prect:ding shall not be sufficient to pay ground rents, taxes and
<br />assrs-rents or insurance premiums, as the case may be, when the
<br />sit ,c shall become due and payable. then the Borrower shall pay
<br />to the Lender any amount necessary to snake 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 mote secured hereby, full payment of the entire
<br />indebtedness represcntcd thereby, the Lender shall, in computing
<br />:he amount of such indebtedness, credit to the account of the (tor-
<br />rower all payments made under the provisions of (a) of paragraph
<br />2 hereof which the Lender has not bnYvmc obligated to pay to the
<br />Secretary of Homing and Urban Development and any balance re-
<br />maining in the funid% accumulated under the pr:wisious of (b) of
<br />paragraph 2 hereof. If there sha' be a default wider any of the
<br />provisions of this instrument resulting in a public sale of the
<br />premises covered hereby, or if the Lender acquires the property
<br />otherwise after default, the Lender shail apply, r. the time of the
<br />commencement of such proceedings, or at the• nmc the property is
<br />otherwise acquired. the balance then remaining in the funds ac-
<br />cumulated under (b) of paragraph 2 tireceding, as a credit al;Jnst
<br />the amount !?f principal then remaining unpaid under said note.
<br />and shall properly adjust any payments which shall have been
<br />made under (3) of paragrap% 2.
<br />4. That the Borrower will pay ground rents, tax's, avcssmcnts,
<br />water raco, and other goscrnmcntal or municipal charges, fines,
<br />or impositions, for which provision has not 'lien made
<br />hercinbefore, ants in default thereof the Lends may pay :he %anic;
<br />and that the Borrov%er will promptly deliver the official receipts
<br />therefor to the Lender.
<br />5. The Borrower will pay all is %cs which may be Icvicd ulwn
<br />the Lendcr's interest in said real estate and improvements, and
<br />which ma:: he Icvicd upon this instrument or the debt secure,)
<br />hereby (bat only to the extent that such is not prohibited by law
<br />and only to the extent that such wild not make tests loan usurious),
<br />but exclu,ting any income tax. Stare or Pcderai, imposed on
<br />Lender, and will file it c official receipt showing such paynicnt
<br />with the Lender. Upon violation of -his undertaking, or if the
<br />Borrower is prohibited by any law now or hereafter evsting from
<br />paying the whotc or any portion of :he aforesaid tares, or upon
<br />the rendering of any court decree prolnciting tile payment by the
<br />Borrower of any such taxes, or if such law or decree provides that
<br />any amount so p.:id by the Borrower shall be credited on the debt,
<br />the Lender shall have the right to give ninety days' writicn notice
<br />to the ownri o` the premises, rryuirml; the p:.yment of the debt.
<br />If such no: :c lx ^isen, the sai�'. debt shall becoine due, payable
<br />and collcctihic at aic expiration of said ninety days.
<br />6. That snou'J the 131orrower fail it, pay any aim or keep any
<br />cs%r..aiu provi.:r.1 for in this instrument, then 0., Lender, at its
<br />option. an ay p.:} or pci!orm the same, and all expenditures so
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