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<br />&xrower and Leader covenant and agree as follows: or if the Lender acquires the pro' crty otherwise after default, the
<br />Lender shalt apply, at the time of the e=aenccmertt of such
<br />1. That Borrower will pay the indebtedness, as hereinbefore proceeding, or at the tame the property is otherwise acquired, the
<br />provided. Privilege is reserved :o pay the debt in whole or in past balance then remainirg in the funds accumulated under (a) of
<br />any installment •.uc date. naragraph 2 preceding, as a credit against the amount of p6napal
<br />: cn remaining unpaid under said note.
<br />2. That, together with, and in addition to, the monthly payments
<br />of principal and interest payable under the terms cf the note secured
<br />bcreb', , the Borrower will pay to the [snder, on the first day of each
<br />rnonth until the said note is fully pair!, ,he foliowing sums:
<br />(a) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will ncx: become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (a!( as euinta :ed br the Lender)
<br />less all sure already paid therefor divided .i•y the number of months
<br />to clapv_ before one ( I ) month prior to the date when such ground
<br />rents, premiums, taxes and assessments wilt be _rmr deliquent, such
<br />sums to be held by Lender in trust to pay .aid grou.id rents,
<br />premiums, taxes and special assessments; and
<br />,b) All payments mentioned in the preceding subswttion of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall he added together, and the aggregate amount thereof'
<br />shall be raid by the Bob rower each rnonth in a single payment to be
<br />applied b;• the Lend( r to :he following items in the order set forth:
<br />r
<br />(1) ground rcnL,, t rxes, acsc:sments, lire and other hazard insur-
<br />ance prem,:m%;
<br />(11) iwcrt.r.t on the note secured hcrcby;
<br />(lll) aroer!iratv n of the principal of said note; anu
<br />(1�'1 iite charge:.
<br />Arty dclicicnc: in :he amount of swcl! aggregate monthly payment
<br />shall, unless made goon by the Borrower prior to the due date of the
<br />next rich payment, constitute ,,n event of dcfault under this
<br />niortgage. the Lender mac Cv:ICCt a "late charge;,' not to exceed four
<br />cents (JC) for each dollar (SI ) of each payment more than fifteen
<br />(15) Jas% to arrears to coyer the extra expense involved in !candling
<br />delinquent payments
<br />3. That if thr total of the payments made by the Borrower under
<br />(a) of r aragrapi: Z, preceding ,hail exceed the amount of paymcnts,
<br />actually made by the 1prtdcr for ground rents, taxes and assessments
<br />or in,urrrue prCODUrr1,, as the la,C rn1y be, such excess, if the loan is
<br />current, at tke option of the Borrower, shall be credited by the
<br />Lender on %uhseaucru payments to be made by the Bo-rower, or
<br />refunded to the Borrower. H. however. !bc monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pa., ground rents, taxes and assessments or insurance
<br />prenucros, as the car may N,-, when the same shall become due and
<br />payable, then th;: 3orrower :,hall pay to the Lender any amount
<br />ne- :essars to make up the J:ficiency. on or before the date when
<br />p;_,rr,cnt of 1UCh crounJ rent,, taxes- as>cs,%mcnts, or insurance
<br />Ncrr.iinu shell be due. If at any urr;c the Borrower shall tender to
<br />the Lcndcr• in accordance wtth the pro%isions of the note secured
<br />I crcby, full payment of the entire indebtedness represented thereby,
<br />t 1C I Cnder s11311, in computing the amount of such indchtednc%-s,
<br />credit to the ascovnt of the llo,roucr any balance r•.ma,ning in the
<br />fetid, auurrunlateJ under the laoyu:ons of (a) of paragraph 2 hereof.
<br />If there shalt bC a dcfault Under ans of the pruyuions of this
<br />nstrunlcr.t resulting in a public sale of the premises covered hereby,
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<br />4. 11,. • Iic Borrower will pay ground rents, taxes. assessments,
<br />water rate,, a:. ! other governmental or municipal charges, lutes, or
<br />impositions. for w hich provision her not been made hereinbcfore.
<br />and in default thereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts therefor to tl:e
<br />Lender.
<br />5. The Borrower will pay ail 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 irstrunwnt or the debt secured hereby ;but
<br />only to the extent that such is not prohibited by law and only to the
<br />extent That such will not make this loan usurious), but excluding any
<br />income tax. Sude or Federal, imposed m Lender, and will p!e the
<br />official receipt showing such payment %,ith the !.ender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or lit rcafter existing from paying the whole or any portion
<br />of the aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting r °:c payment by the Borrower of any such taxes, or if
<br />such law --)r dctrec 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 Fruyment of the debt. if such notice be given, the said
<br />debt shall become due, payable and collectible at the expiration of
<br />said ninety days.
<br />1). That snouted the Borrower fail to pay any sum er keep any
<br />covenant provided for in this instrument, thee, 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 no!r, until paid.
<br />T'I hat the &,rrowcr 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 dcfault in the performance of any of the
<br />terms and conditions of this instrument or the said note, all the rents,
<br />rcycnues and income to be deriacd from the said premises during
<br />such time as the indebtedness shall remain unpaid, and the Lender
<br />shall have po -.%er to appoint any agent or agenb it may desire for the
<br />purpose of repairing said premises and of renting the sane and
<br />Coll -cong the rents. revenues and income, and it may pay out of said
<br />incomes ali expci:scs of repairing said premises and nccewry
<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 & -harge of said indebtedness.
<br />I
<br />S. That the Borrower will kelp 111c improvements now existing or
<br />hereafter crcacd on the property, insureJ as may be required from
<br />time to tame b;, the Lender against loss b; lire and other hazards,
<br />c:a.ualues and contingencies in such amounts and for such periods as
<br />may be required by the Legdcr and will pay promptly, when due,
<br />any premiums on euch insurance, provision for payment of which
<br />has not Ixen made nercinbefore. All insurance shall be carried in
<br />companies appruscJ by the Le: der and the policies and renc :.ah
<br />thereof shall, N- held by the Lender and hale attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. In
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