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<br />Borrower and Lender covenant and agree as follows:
<br />1 That Borrower well pay the indebtedness, as heretnbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part on
<br />any installment due date.
<br />2, That. together with, and in addition to, the monthly payments
<br />of principal and interest payable under the terms of tbz note secured
<br />fiereby, the Borrower will pay to the Lender, on The first day of each
<br />month until the said note is fully paid, the following sum%
<br />(a) A sum equal tts the ground rents. if any, not due, plus the
<br />premiums that will atex( become due and payahle on policies of fire
<br />and other hazard insurance covering the property, plus taxes any .
<br />assersttiaents next due on the prOperry (alias estimated by the Lt- ArferA
<br />less all st. as already paid therefsit divided by the number of rmM lths
<br />to elapse before one ( i) month prior to the date when such ground
<br />rents, premiums. taxes and assessments will become deliquent, such
<br />sums to be held b% Lender in trust to pay said grsiund tents.
<br />premiums, taxes and special assessments. and
<br />(b) all payments mentioned in the preceding %ubseciwaq»
<br />paragraph and all payments t s be made under the note secured
<br />hereby shall be added together, and the aggregate amount theteof
<br />shall be paid by the Borrower each month in a single payment to he
<br />applied by the Lender to the folli*•st sng items in the order set forth
<br />ell ground rents, taxes, assessments. fire and other hazard insur-
<br />ance premiums,
<br />(11) interest an the note % ecured hereby.
<br />11111 amonization of the prinupal of said note. and
<br />tIV I late charges
<br />Any defictencv in the amount of such aggregate monthly payment
<br />shall. unless made good by the Borrower prior to the due date of Inc
<br />next such payment, constitute an event of default under this
<br />mortgage. The Lender may collect a "late charge" not to exceed four
<br />cents (44) for each dollar (f f I of each payment more than fifteen
<br />(IS) days in arrears to cover the extra expense inwilved in handling
<br />delinquent payments.
<br />3. That if the total of the payments made by the Borrower under
<br />lal of paragraph 2 preceding shall exceed the amount of payment%
<br />actually made by the Lender for ground rents. cues and assessments
<br />or insurance premiums, as the case may be. such excess. if the loan i%
<br />current, at the option of the Borrower. shall he credited by the
<br />Lender on subsequent payments to he made by the Borrower, or
<br />refunded to the Borrower If, howe, er. the monthly payment% made
<br />by the Borrower under la I of paragraph ' preceding shall not be
<br />sufficient to pay ground rents. taxes and assessments or insurance
<br />premiums, as the case may be. when the same shall become due and
<br />payable, then the Borrower shall pay to the Lender 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 Borrower %hall tende• a,
<br />the Lr_nder, in accordance with the provisions of the note %ecured
<br />hereby. full payment of the entire indehtedness represented thereby_
<br />the Leridet shall, in computing the amount of such mdebtednes%.
<br />credit to the account of the Borrower any balance remaining in the
<br />funds accumulated under the prousions of tail of paragraph 2 hereof
<br />If there shall be a default under am of the prce -wons of this
<br />instrument resulting in a public sale of the p:rmise% covered hereb%
<br />• ra a a, .
<br />Mat i s
<br />or if the Lender acquires the property otherwise after default, the
<br />Lender %hall apply, at the time of the commencement of such
<br />proceedings, or at the time the property t% otherwise acquired, the
<br />balance then remaining in the funds accumulated under tai of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said note.
<br />4 Thal the Borrower will pay ground rents, taxes, a7 —wK;- z:nu,
<br />water rates, and other govetnrntma.l or municipal charges, fines, or
<br />impositions, for which provision b:as not been made herembefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />BoTtower will promptly deliser the official receipts therefor t0 the
<br />Lender
<br />5 The Borrower will pay all taxes which %may be levied upon the
<br />Lender'% interest in said real estate and imprea%ements, and which
<br />may he levied upon this instrument or the debt secured hereby (but
<br />only to the extent that such is nox prohibited by law and only to the
<br />extent that such will not make tfti5 loan usurtous), but excluding any
<br />income tax. State or Federal, imposed on Lender, and will file the
<br />official receipt showing such payment with the Lender. Upon
<br />%tolation of this undertaking, oT if the Borrower is prohibited by any
<br />I&% cow or hereafter existing fte-m paying the whole or am. portion
<br />of the aforesaid taxes, or upon the rendering of any Cklurt $C Te
<br />prohibiting the payment by the Borrower of any %uch taxes, or if
<br />such law or decree provides that any amount so paid by the
<br />&irrower shall be credited on the debt. the Lender shall have the
<br />fight 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 %hall become due, payable and collectible at the expiration of
<br />card ninety da%s
<br />6 That should the Borrower fail to pay any sum to keep any
<br />i.oryenant provided for in this instrument, then the Lender. at its
<br />option. may pay or perform the same. and all expenditures so made
<br />shall he added to the principal sum owing on the said note, shall
<br />he se :ured hereby. and shall hear interest at the rate set lorlh in the
<br />said note. until paid
<br />7 That the Borrower hereby assigns, transfers and sets over to the
<br />Lender. to be applied toward the payment of the note and all sums
<br />secured heregy in case of a default in the performance of any of the
<br />term% and condition% of this instrument or the said note, all the rents.
<br />revenues and income to be derived from the said premises during
<br />such time as the indebtedness shall remain unpaid, and the Lender
<br />shall have power to appoint any agent er agents it may desire for the
<br />Purpose of repairing said premises and of re,.r,,ng the same and
<br />collecting the recrws. revenues and income. anrt it may pay out of said
<br />incomes all expec�es of repairing said premises and necessary
<br />commrssion% and expen%e% incurred in renttag and managing the
<br />same and of collecting rentals therefrom: the balance remaining, if
<br />any to be applocd toward the discharge of said indebtedness
<br />fs That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property. insured as may be required from
<br />time to time by the Lender against loss by-fire and other hazards,
<br />casualties and contingencies in such amounts and for such periods a%
<br />may be required by the Lender and will pay promptly. when due,
<br />any premiums on such insurance. provision for payment of which
<br />has not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the Lender and the policies and renewals
<br />thereof shall be held by the Leader and have attached thereto loss
<br />payable clauses in favor of and in' form acceptable to the Lender In
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