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The Murtgagor In order more full) tea prorttct the seeutity of
<br />this Mortgage. agrees:
<br />1. That he wdi pay the uidcbtcilrtcrv, a:, httrrinhcfore lNimideks
<br />Privilege is rc.erved to pav the dctt in %holq k)r ut part an ,ens
<br />installment due date.
<br />2. That. together with, and in addition 11% the monthly
<br />payments of principal and interest payable tinder the terms of the
<br />note secured hereby. the Mortgagor wilt. pal to the Mortgagee,
<br />on the first day of each month until the siid note is fully paid,
<br />the following sums:
<br />(a) Amount sufficient to provide the hr^lder hereof gci :h funds
<br />to pay the next mortgage insurance prcmi >am if this instrument
<br />and the note secured hereby are insure& or a monthly charge (in
<br />Lieu oPar mortgage insurance premium. it they are held by the
<br />Sectmary of Housing and Urban Development, as follows:
<br />(1) If and so long as said note oh.even date and this in-
<br />strument are insured or are reinsured under the provisions of the
<br />National Housing Act, an amount. suFt4cm to accumulate in the
<br />hands of the holder one (1) month pritpr to its due date the an-
<br />nual mortgage insurance premium. in. order to provide such holder
<br />with funds to pay such premium v the Secretary of Housing and
<br />Urban Development pursuant i s V4a National Housing Act, as
<br />amended, and applicable 4tegulati011,; thereunder; or
<br />(11) If and so Ionia as said ncmz of even date any this in-
<br />strument are held by the Secretary of, Housing and Urban.
<br />Development. a month!} charge (in liitu of a mortgage tmsurairiv
<br />premium) which shall be to an amount, equal to one - twelfth
<br />0/12) of one -half (1!2) per ceneurn ot, the average outstanding
<br />balance due can. the note computed wtthout taking into account
<br />delinquencies or prepayments.
<br />(b) A sum equal to the gro=4 rents, if any. next due, plus the
<br />premiums that will next some due and payable on policies of
<br />fire and other, hazard insurance covaring the mortgaged property,
<br />plus taxes and assessments next due on the trortgagcd property
<br />OR as estimated by the Morriageeb less a:' sums already paid
<br />therefor divided by the number ofi months to elapse (refore one
<br />(It, month prior to the date when, such ground rents, premiums.
<br />taxes and assessments will become delinquent, such sums to he
<br />held by Mortgagee in trust to pay said ground rents, premiums.
<br />taxes and spe%ial assessment►: and;
<br />(c) All payments mentioned ° °itt, the two preceding suL' Ncctions
<br />of this paragraph and all paymanrs to be made under the note
<br />secured hereby shall be added together. and the aggregate amount
<br />thereof shall be paid by the M11nt3agor each month in a single
<br />payment to be applied by the Mortgagee to the following items in
<br />the order set forth-
<br />11) premium charges unditr the contract of insurance with
<br />the Secretary of Heusmg and Utibarn Development, or months)
<br />charge (:n• lieu. of mortgage insurance prem)arrrl, as the case ma.
<br />be;
<br />(11) ground rent-;, taae5, assessments, fire and other hazard
<br />insurance premiums
<br />(illianteresr. on rhit note %ccured hereby;
<br />(IVs amorzi,iatiou,of the principal of said note; and
<br />(V) late chiirae%
<br />Any deficiency in the amount of .uch aggregate monthly pa)-
<br />rr7ent shall, unless made good by the Mortgagor prior to the due
<br />date of the next such payment, constitute an event of default
<br />under this mortgage. The Mortgagee may collect a "late charge"
<br />not to exceed four cents (49) for eaf. h dollar (S 10 of each pay-
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<br />ment more than fifteen (IS) days in arrears to cover the extra ex.
<br />pence involved in handling delinquent payments.
<br />3. 1 hat if the total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Mortgagee for ground rents, taxes
<br />and assessments or insurance premiums. as the case may be, such
<br />excess. if the loan is current, at the option of the Mortgagor,
<br />shall be credited by the Mortgagee on subset cent payments to be
<br />made by the Mortgagor, or refunded to the Mortgagor. if.
<br />however, the monthly payments made by the Mortgagor under
<br />(b) of paragraph 2 preceding shall not be sufficient to pay
<br />ground rents, taxes and assessments or insurance premiums, as
<br />the case may be. when the same shall become due and payable,
<br />then the Mortgagor shall pay to the Mortgagee any amount .
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents. taxes. assessments. or- insurance
<br />premiums shall be due. if at any time the Mortgagor shall tender
<br />to the Mortgagee. in accordance with the provisions of the note
<br />secured hereby. full payment of the entire indebtedness
<br />represented thereby, the Mortgagee shall. in computing the
<br />amount of such indebtedness. credit to the account of the Mort-
<br />gagor all payments made under the provisions of (a) paragraph 2
<br />hereof which the Mortgagee has not become obligated to pay to
<br />the Secretary- of Housing and Urban Development and any
<br />balance remaining in the funds accumulated under the provisions
<br />of Ib) of paragraph : his -ev,4. if there shall be a default under
<br />any of the provisions Of this mortgage resulting in a public sale
<br />of the premises covered hereby, or if the Mortgagee acquires the
<br />property otherwise after default, the Mortgagee shall apply, at
<br />the time of the commencement of such proceedings, or at the
<br />time the prnrwrty is otherwise acquired. the balance then iemain-
<br />ing in the funds accumulated under (b) of paragraph 2 preceding.
<br />?.4 3 t!e!{.• *. °e�i :.St ih: «rrsuni 3f prin,;i}rai incft icii3eii:iitg unpairi
<br />under said mote, and shall properly adjust any payments which
<br />shall have been made under (a) of paragraph Z.
<br />4. That the Mortgagor will pay ground rents, taxes,
<br />assessments, water rates. and other governmental or municipal:
<br />charges, fines. or impositions, for which provision has not beer.
<br />made herea thefore, and in default thereof the Mortgagee may
<br />pay the sansei and that the Mortgagor will promptly deliver the
<br />official receipts therefor to the Mortgagee.
<br />S. The Mortgagor will pay all taxes which may be levied upon
<br />the Mortgagee's interest in said real estate and improvements.
<br />and which may be levied upon this mortgage or the debt secured
<br />hereby (but only to the extent that such is not prohibited by law
<br />and only to the extent that such will not make this than
<br />usurious), but excluding any income tax, State or Federal. im-
<br />posed on Mortgagee, and will file the official receipt showing
<br />such payment with the Mortgagee - Upon violation of this under-
<br />taking, or if the Mortgagor is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree pro-
<br />hibiting the payment by the Mortgagor of any such taxes. or if
<br />such law or decree provides that any amount so paid by the
<br />Mortgagor shat, be credited on the mortgage debt. the Mortgagee
<br />shall have the right ro give ninety days' written notice to the
<br />owner of the mortgaged premises, requiring the p yment of the
<br />mortgage debt. If su_h notice be given, the said debt shall
<br />become due, payable and collectible at the expiration of said
<br />ninety days.
<br />e. That should the Mortgagor fail to pay any sum or keep any
<br />covenant provided for in this mortgage, then the Mortgagee, at
<br />its option, may pay or perform the same, and all expenditures so
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