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Borrower and Lender covenant and agree as foffo-
<br />1. That Borrower wilt pay the indebtedness, as hereinbefore
<br />provided. Privilege is reservttl to pay the debt in whole or in part on
<br />anv in <tallment due bate.
<br />? That, together with. and in addition to, the monody payaxnts
<br />of principal and interest payable under the terms of tlu note secur,:d
<br />hseby. the Borrower will spay to the Lender, on the first day of each
<br />.ronth unto the said note is fully paid, the following sums:
<br />(a) A sum equal to the ground rents. if any, next duc, plus the
<br />premiums !hra will next become due and payable on policies of fire
<br />and other hozaid insurance cover,ng the , toperly, plus taxes and
<br />assessments riot: due on the property (ab as esrimated by the Lender)
<br />Icss all sums air ady paid therefor d;sided by the number cf months
<br />to elapse befoic cioc (1 ) month prior to the date when such around
<br />rents, premiums, taxes and assessmerts v ill become dcliquent such
<br />sums to be held by Lender in trust to pa, said ground tents,
<br />premiums, taxes and special assessments: acrd
<br />(h) All payments mentioned in the preceding subsection of this
<br />paragraph anal all payments to be made under the note secured
<br />heathy shall Fe added together, and the aggregate am-)unt thereof
<br />stall be pa;d b•, the Borrower each month in a single payment to be
<br />applied by the Lender to t.ic follvwing hens in th.c order set forth:
<br />(1) ground rents. taxes, assessments, f.re and other S,azard msur-
<br />accc premiums;
<br />(11) interest on the note wowed hr-rch,,-.
<br />(111) aniuruzation of the prmapal of :aid note; and
<br />i I V) late charges.
<br />Any deficiency in the amount of suc" aggregate morthl ;, payrient
<br />shall, unless made good by the 1. .rower pno. to the dun, date of the
<br />next such payment, constitute an event Df defauL uncle: this
<br />mortgage. The finder may i.ol ;ect a "late charge" not tc exceed four
<br />cents (C:) for e-ch dollar (51 ) 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 rarag:aph 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 Lorrower. shall be credited by he
<br />Lender on subsequent pays ruts to :,e made by the Borrower, or
<br />refuadcd to ;he Borrower. !f. ho..c:cr, the monthly payments made
<br />by etc Bcr,owcr under (al of paragraph 2 preceding slialf net 'x
<br />sufficient to pay ground rents, taxes and assessments u. insurance
<br />premiums, as the case may be, when the same shall tccome dui' c
<br />payable, ,!icn the Borrower shall pa: to the Lender any amount
<br />necessary to mal.c up the deficiency, on or before the date when
<br />payment of such ground rents. ta-cs, assessments. or insurance
<br />premiums shall t)c duc. if at any time tile Borrower shall tender to
<br />the Lender, in accordance ;l; the pruynions of the note secured
<br />hereby, full payment of the entire indebtc mess represented thereby,
<br />the Lender shall, in computing the amount of such indebtedness,
<br />credit to the account of the Bu :r.>wer any halance remaining in the
<br />funds alcurnJlaled ur.dc the pro im cis of ;a) of paiagraph 2 hereof
<br />If there shay be a dcl: ult under any tai the proyisrons of this
<br />uritrurnent icsulting in a public sale of the premises coscrcd hereby.
<br />89--10426-V -1
<br />or if the Ler+C'er acgtures the property otherwise after default. the
<br />Lender shait apply. at the time of the corrm- xcrneut of such
<br />proceedings, or at the time the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 prcct..ing, as a credit against the amouat of principal
<br />then remaining unpaid Lander said note.
<br />4. That the Borrower will per ground rents, :axes, asscss�mcnts,
<br />water rates, and olher governmental or munic,pal charges. fines. or
<br />impositions, for which provisior hots not berr•made hereinbefore.
<br />and in default thereof the Lender miiny 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 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 irhstrumen: or the debt segued hereby (but
<br />only to the extent that such is not prohibited by law and only to tF.e
<br />extent that such will not nuke this loan usurious), but excluding any
<br />income tax. State or Fedora:, imposed on Lender, and will file he
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the &, i rower 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 />prohibiting the payment by the Borrower of any such taxes, or if
<br />such taw or decree provides that any amount so paid by the
<br />Borrower shall be credited on th; 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 hecome due, payable end collectible at the expiration of
<br />said ninety dais.
<br />6. That should the Borrower fat. to pay an; sum or keep any
<br />covenant provided for in this instrument then the Lender, at its
<br />op!ton, may pay o: 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 bc applied toward the payment of tl;t note and all sums
<br />secured hereby in case of a default in the perforr.iance of any of the
<br />terms and conditions of this instrument or the said note, all the rents,
<br />revenues and income to be dtrivcd from the said premises during
<br />such time as the indebtedness shall remain unpaid, and the (.ender
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose of. cpairing said premises and of renting the same and
<br />collecting the rents. reverues and income, and it may fay out cf said
<br />incomes a!! cx, erses of repairing said premises and ntcnvr11
<br />cortmtz.rans ant: cxrenscs incurred in rcntrrg and maragin,; the
<br />same and of coi!ccting rentals therefrom, the balance remaining, if
<br />am, to be applied toward the dr :charge of said indebtedness.
<br />E That the &uruwer will keep the improvements now existing or
<br />hereafter erected or, the property, insured as may be required from
<br />time a umc by the Lender against loss by fire and other hazards.
<br />casuakics and contingencies in such amounts ana ;or such periods as
<br />may be required by the Lender and will pay promptly, when due.
<br />any premiums on such insurance, provision for pa ±mcnt of which
<br />has put been made hercinbefore. All insurance shall he carried in
<br />companies approvcl by the Lender and the jiolhctes and renewals
<br />thercuf shall be held by the Lender and have attached thereto loss
<br />payabic clauses in favor of and in form acceptable to t!v Lc,)de` In
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