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<br />Bwro%er and Lender covenant and agree as fulluwst
<br />1. That Borrower %till pay tilt nnlebtedncss. as heteinbefore
<br />provided. PrNiege is reserved to pay file debt in whole or in part
<br />on any installment due date.
<br />2. That, together with, and in addition to, the monthly
<br />payments of prindriet and interest payable under the terns,. or ;hc
<br />note secured heavby, [Rr ttorreswer will pay to 1Re Lenwes,. t.in tiso
<br />first dal- of each nlalnllt to ul the said note is futiy paid, Qbz
<br />following sums:
<br />(a) - -%Maunt su: fx lent to provide the holder hereof with funds
<br />to pay rte next mortgage insurance premium if this instrument and
<br />the nozo secured; hereby are insured, or a monthly c h t: ge ; •n licit
<br />of a mortgage insurancr premiurn► if they are t:e!d by the
<br />Secretary of Housing and Urban De%clopnieut, as follows:
<br />(1) if and so long as %aid note of e%en date and this instru-
<br />ment are insured of are reinsured under the pro%isions of the 'Ja-
<br />tional Housing Act, an amount sufficient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the annual
<br />mortgage insurance premium in order to provide such holdei %%uh
<br />funds to pay such premiurn To ills Secretan of Housing and Vr-
<br />ban Development pursuant to the Vanonal Hou,mg list, is
<br />amended, and applicable Regulations thereunder: or
<br />(11) If and so long as satd note tut e%en date and this instnr
<br />ment are held by the Secretary of Housing and Urban Dc%clop-
<br />mait, a monthly charge (in lieu of a mortgage imirrance premium
<br />which shall be in an amount equal To one - twelfth (I 12) of one -
<br />half (1,'2) per cenrum of the a%erage outstanding balance due on
<br />the note computed without taking into account delinquencies or
<br />prepayments;
<br />(b) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will next become due and payable on policies of
<br />fire and other hazard insurance co%erinu the property. plits razes
<br />and assessments next due on the property tall as esrirriated h} the
<br />Lender) less all sums already paid therefor dh.ided by the number
<br />of months to elapse before o: e t:l .Ton1h prior ro tlrr date when
<br />such ground rents, premiums, taxes, anfl assessments will become
<br />delinquent. such sums to be herd , 1 -y Lender in trust to pay said
<br />ground rents, premiums, taxes a. s special as+.assments; and
<br />(c) All payments mentioned eri the two preceding subsections of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggregate amount
<br />thereof shall be paid by the Borrower each month in a single pay-
<br />ment to be appt�ad Its the Lender to the following items in the
<br />order set forth;
<br />(l) premiarn charges untter the contract of insurance with
<br />the Secretary of Miming and Urban Development, or monthly
<br />charge (in lieu Of mortgage insurance premium), as the case may
<br />be;
<br />(11) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note secured hereby;
<br />(IV) amortization of the principal of said note; and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate monthly pa)-
<br />ment shall, unless made good by the Borrower prior to the due
<br />date of the next such payment, constitute an event of default
<br />under this mortgage. The Lender may collect a "late charge" not
<br />to exceed four cents (4R) for each dollar (SI) of each payment
<br />more than fifteen (ly1 day,, tit arnarc to coyer t9e cars exrettse
<br />imohed to handling delirtquenr payot%nt%.
<br />3. That if the total of tine paytnent.., made by the Borrower
<br />under M of paragraph 2 preceding shall Cassel the antount of
<br />payments actually made by the Lender for ground rents. takes and
<br />assessments or insurance prcmiurns, as the case may 1 -.. %uch ex-
<br />if the loan is current, at the option of the Borz��aaet;, Shall be
<br />sXQNARed by the lender on subsequent payment.: cs� h: rw . t%r the
<br />&vrklwer., or r.:f:uldcd to the Horn%wer. 1�, hltoe,ac. r; r^s,4 %11.11
<br />P45menls t.;aJtc by the Borrower under (,1.a ,i:F paragra,�h, 2
<br />pr' O'Wing: shaEQ tuv be sufficient to pay groyjcd rents, w%i`+ and
<br />ass4.,sments or insurance premimns, as the case may be, when the
<br />same shall become due and payable, then the Borrower shall pay
<br />to the tender any amount necessary to make up the deficiency. on
<br />or before the date when payment of such ground rents, taxes,
<br />a%%c%sncnis, Of inswance premiums shall he due. If au ,tm• tittle
<br />the Horrower %halt tender to the 1 ender, tit accordance mlh the
<br />litimm ms of the note secured hereby, full pa%ntent of the cnlre
<br />nidehtednc%% represented thereby. the 1 ender ,hall. tit consptilntg
<br />the amount at such nidehteducss. credo to Cite account of the Hor-
<br />towcr ill payments nt,tde under the pro%mon% of (s,1 0l patilgtaph
<br />2 (teirol %%11101 the I endet 11;11. M%t hecontc obligated to pay ti, the
<br />hctetar% of Itou,int! and t'rhan (h%elopment and any balance to
<br />maunnits m the load, actunntlated under the pro%t,wn, of (h) of
<br />pa"191"ph 2 hercol 11 there shall he a dclatilt under ,tit% of the
<br />pro%mon% of this m,trument ic%ulturg m it public sale of the
<br />prcnuscs co%crcd hereby, or if the tender acquires the property
<br />othcmise after dctault, the I ender shall apply, at the time of the
<br />0011imcncentenr of such proceedings. or at the tittle the properly 1%
<br />otherwise acquired, the balance then remaining in the funds ac-
<br />cumulated under (b) of paragraph 2 preceding, as a credit against
<br />the amount of principal then remaining unpaid under said note,
<br />and shall properly adjust any payments which shall ha%c ti en
<br />made under (a) of paragraph 2.
<br />4. Thai Cite Rarrower will. pay ground rein,, taxes, assessments,
<br />%%ater rates, an%i: ether go%vrp,=xntal or nz;trt ipal charges, tines,
<br />or imro%iu.ons, fer which rrootsion has nor been made
<br />hr.4srl;� f re. and in default tole ;cc %f the 1 ender may pay the same;
<br />ur,,w r! ter. rbe Horrower will rrompt.y deliver the offi,taf receipts
<br />flum. -fcr to The Lender.
<br />5 Tire Borrower will pay all taxes which may be le%ied•upon
<br />the - - Icndc;'s interest to said real estate and improvements, and
<br />%vh`,t: may be levied upon this instrument or the debt w.ured
<br />hvt4e y (but only to the extent that such is not prohibited by law .
<br />and only to the extent that such will not make this loan usurious),
<br />but excluding any income tax. State or Fcieral, imposed on
<br />Lender, and will file the official receipt showing such payment
<br />%Wh..the Lender. Upon %cola- ion of this undertaking, or if the
<br />Borr9ncr is prohibited by any lax now or hereafter existing from
<br />paying the whole or any portion of the aforesaid taxes, or upon
<br />the rendering of any court decree prohibiting the payment by the
<br />Borrower of any such taxes, or if such law or decree pro%ides that
<br />any amount so paid by the Borrower shall be credited on the debt,
<br />The Lender %hall ha%c the right to gi%c ninety days' written notice
<br />to the owner of The prcmi%cs, requiring the payment of the debt.
<br />If such notice be green, the %aid debt shall become due, payable
<br />and collectible at the expiration of %aid ninety days.
<br />6. That should the liorro%tcr fail to pay any %um or keep any
<br />co%cnant provided for to this instrument, then the I ender, at its
<br />option, may pay or perform the ,ame, and all expenditures so
<br />Page 2 o! 5 title 92103194
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