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<br />Borrower and Lender covenant and agree ax follows:
<br />1. That Borrower will pay the indebtedness, as herembefore
<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 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 payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (elf as estimated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (I )'month prior to the date when such ground
<br />rears, premiums. taxes and assessment.-, will become deliquent. such
<br />sums to be held by Lender in trust to pay said ground rent.-,,
<br />premiums, taxes and special assessments; and
<br />(b) All payment.-, mentioned in the preceding subsection of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall be added together, and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to be
<br />applied by the Leto a to the following items in the order set forth:
<br />M ground rents, taxes, assessments, fire and other hazard imur
<br />ante prcnniums; .
<br />04 (aterest on the note secured hereby.
<br />(111) amortizaWn cif the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall, unless made good by the K- rrower prior to the due date of the
<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 />ants (44) for each dollar (S 1) 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 Ity the Borrower under
<br />(a) of paragraph 2 pmceding shall exceed the amount of payments
<br />actuall�.rnade by .ft. Lender for glut d rents, taxes and assessments
<br />or mWaampruttii m& as the cash may be. such excess, if the loan is
<br />current. at the !4+ .= of the Borroi itr, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower, or
<br />refunded to the g3ui(c er. IL however, the monthly payments made
<br />by Cite Borrower +finder (a) of paragraph 2 preceding shall not be
<br />sufiiCie t. to pay $round rents, taxes and assessments or insgra'ace
<br />premiums, as the case may be, when the same shall become due and
<br />payable, then the $orrower shall pay to the Leader' any amarant
<br />necessary to make up the deficiency, on or beft rethe date'When
<br />payment of such ground rents, taxes, assessments; or insurance
<br />prerttiums shall be due. If at any time the Borrower shall tend er to
<br />the.t ender. in accordance with the prai isibas of the note secured
<br />hereby, full payment of the entire tndeboidness represented thereby,
<br />the Lender shall, in computing the amount of such indebtedness.
<br />credit to the account of the Borrower any balance remaining in the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereof.
<br />Ifthere shall be a default under aces of the provisions of this
<br />insitumcm resulting in a public sale of the premises covered hereby.
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<br />$9-1"050
<br />or if the Lender acyu,res the property otherwise after default, the
<br />Lender %hall apply, at the time of the commencement of such
<br />prnweedings, or at the time the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said note.
<br />4. That the Borrower will pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipal charge% tines, 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 />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />S. The Borrower will pay all 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 instrument or the debt secured hereby (lout
<br />only to the extent that such is not prohibited by law and only to the ,
<br />extent that such will not make this loan usurioush 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 />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or hoce4cr 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 law or decree provides that any amount so paid by tbp...
<br />Borrower shall be credited on the debt, the Lender shglt bgoxe the
<br />right to give ninety days' written notice to the owner ol! tl* premises,
<br />requiring the payment of the debt. If such notice be givent • the said
<br />debt shall become due, payable and collectible at the egpttatfon of
<br />said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep any i
<br />covenant provides for in this instrument., then the Lender, at its
<br />option, may pay or perform the same. and all expenditures so made t'?
<br />shall be added to the principal sum owing on the said note, shall =-
<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 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 iricume to be derived from.the said premises during
<br />such time as.1he indebtedness shall- remain,unpaid. and the Lender
<br />shall have piivysr•to appoint any agent on agents it may desire for the
<br />purpose of repairing said premises and of renting the same and
<br />gOfftding the rents, revenues and income. and it may pay out of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />same and of collecting rentals therefrom; the balance remaining, if
<br />any, to be applied 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 />time to time be the Lender against loss by feee•and other hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by the Lender and will pay promptly, wbw due.
<br />any premiums on such insurance, provision for paymentof.which
<br />has not been made hereinbefore. All insurance shall, be c' arried in
<br />companies approved by the Lender and the policies Audi renewals
<br />thereof shall ire held by the. tender and have attachdf tbeteto loss
<br />payable clauses in favor of and in form acospt" tt1.,t1K Lander. In
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