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<br />RERECORDED
<br />89..r 102982 89-- 101538
<br />Borrower and lender covenant and agree a% follows: or if the Lender acquires the property othenviw after default, the
<br />indebtedness, as herembe(ure Lender %hall apply, at the time of the commencement of such
<br />I. That Borrower will pay the indebtedness,
<br />provided. privilege is reset ved a► pay the debt in whole or In part tun balance the cat the time the und% rcc is otherwise acquired, the
<br />anv Installment due data balance then remaining in the funds accumulated under (af of
<br />paragraph 2 preceding, as a credit against the amount of nn 1
<br />2. That, together with, and in addition to, the monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby, the Borrower will pay to the Lender, on the first day of each
<br />month until the said note is fully paid, the following sums:
<br />(a) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will next become due and pkwabte on policies of fire
<br />and other hazard insurance covering the pringesoy, plus taxes and
<br />assessmems; next due on the property (a /1 os c,a7matetd by the Lender)
<br />lCkc all sums already paid therefor dividedkv the number of months
<br />to elapse before one (1) month prior to Ov ails,e when such ground
<br />rents, prema43tm5, ezxes and assessments %*V *,- me deliquent, such
<br />sums to be held! b., Mender in trust to pay said ground rents,
<br />Premiums, taxes and special assk -mments; and
<br />(h) All payments mentionexf m the preceding subsection of this
<br />Paragraph and all payments to he made undea the note secured
<br />hereby shall be added together, and the aggtc$ ate amount thereof
<br />shall be paid by the Borrower each month in a single payment to he
<br />applied by the Lender to the following items in the order set forth
<br />(I) ground rents, taxes, assessments, fire and other hazard insur-
<br />ance premiums;
<br />(11) interest on ttte note secured hereby:
<br />(111) an"35tizatioft afthe pnD;,ziral of said note, and
<br />(IVf lata: s,ttarpcs.
<br />Any deficienc%.in the amount of such aggregate monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default under this
<br />mertasee, The Lcttdef tnay Collect a "fate charge— not to exceed lour
<br />cents (4) for each dollar (SI) 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 payrr4rits made by the Borrower under
<br />(a) of paragraph 2 preceding shaft 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 Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower, or
<br />refunded to the Borrower. If holv:eser, the monthly payments made
<br />by the Borrower under (a) of paragraph 2 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 136"ower shatt flay to the Lender any amount
<br />necessary to make up the deficiency. on or before the date when
<br />payrnent of such ground rents, 143Wy. assessments, or Insurance
<br />Premiums shall be d:'ae If at any time the Borrower shalt tender to
<br />the Lender, in acw.d'ance with the provisions of the note secured
<br />herab),, full payment of the entire. indebtedness represented thereby,
<br />the Leader shall, in computing; Cf,p:amount of such indebteditess.,
<br />cr&,,:r to the account of the Ifoc IAer any balance remaining in the
<br />funds•accumulated under ite provisions of (a) of paragraph 2 hereof
<br />if there shall be 2 ikfautt uirderany of the provisions of this
<br />instrument results,-.'g' in a p 3iv'ale of the premises coffered hereby.
<br />then remaining unpaid under said note. r cipa
<br />4. That the Bortower will pay ground rents, taxcw, assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />Burrower will promptly deliver the official receipts therefor to the
<br />Lendei.
<br />S. The Rssrrower will pay all taxes which may be levied upon the
<br />Iriisirr's interest in said real estate and improvements, and which
<br />tray be levied upon this instrument or the debt secused Weby (but
<br />only to the extent that such is not prohibited by law anti x)nly to the
<br />extent that such will not make this loan usurious), but excluding anv
<br />income tax. State or Federal, imposed on Lender. and will file the
<br />official receirt showing such payment with the Lender. Upon
<br />violation cif this undertaking, or if the Burrower is prohibited by any
<br />law now ar hereafter exiwlikg from payidg'the whole or any portion
<br />of the aforesaid taxes, or ups,n the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes, or if
<br />such law tit decree 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 mntty days' written notice to the owner of the premises,
<br />m4uiring the payment of the debt. if such notice be given, the said
<br />t&bt shall become due, payable and collectible at the expiration of
<br />said ninety days.
<br />6. That should the Borrower fall to pay any sum ar keep any
<br />covenant provided for in this instrument, then the Lender, at its
<br />option, may pay cif perform the same, and all expenditures so made
<br />shall be added to the principal sum owing on the said note, shall
<br />I-- wcurcd iCfcby, and shall 'bear interest at the rate set forth in the
<br />said note, until paid.
<br />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 hereby in case of a default in the performance of any of the
<br />terms and conditions of this instrument or the said note, all the rents,
<br />revenues and income to he derived from (he ;aid premises during
<br />such time as the indebtedness shall remain unpaid, and the Lender
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rents, revenues and income, and it may pay out of said
<br />incomes all expenses of repairing said premises and necessary
<br />s-amrnusions and expenses incurred in renting and managing the
<br />same and of collecting renta;s therefrom; the balance remaining. if
<br />any. to be applies} toward the discharge of said indebtedness.
<br />8 That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />tare ro time by the Lender against loss by fire and other hazards,
<br />C&kt!411ties and contingencies in such amouria and for such periods as
<br />nt:•as he requrred by the Lender and will {eta promptly, when due.
<br />art premiums on such insurance, provision for payment of which
<br />N; not been :11• -45 hercinbefore All insurance shall be carried in
<br />u �mpantes approt+ed by the Umder and the policies and renewals
<br />thereof shall be b,eld by.the- f.,6der and have attached thereto loss
<br />payable clauses.rn f4vor of and in form acceptable to the Lender In
<br />Page 2 or 5
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