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Rorrower and header covenaat sad agree as Maus:
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. IPrivikge is reserved to pay the 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 principal and interest payable under the terms of the
<br />note secured hereby, the Borrower will pay to the Lender. on the
<br />first day of each month until the said note is fully paid, the
<br />following sums:
<br />(a) Amount sufficient to provide the holder lien rf with funds
<br />to pay the next mortgage itisuratu a •rat ' m,, tip fts;.. instrument• and
<br />the note secured hereby are insu► a 7=;tiW Iy.charge (ig lieu
<br />Of A, Mott W inwils*v premiuttr1%tf they ar; mod• by (he'
<br />Sectrt+t;ut)c of Housing. and Urban DevclopmenS; ace; Mlows:
<br />• "(ii) If and so long as said note of even <Ube* si d this instru-
<br />ment are insured or are reinsured under the provisions of the. Na-
<br />tional Housing Act, an amount sufficient to accumulate in tJlte
<br />hands of the holder one (1) month" Prior to its due date the annual
<br />mortgage insurance premium in ortfer to provide such holder with
<br />funds to pay such premium to the Secretary of Housing and Ur-
<br />ban Development pursuant to the National Housing Act, as
<br />amended. and applicable Regulations thereunder: or
<br />(11) If and so long as said note of even date and this instru-
<br />ment are held by the Secretary of Housing and, Urban Devrldp~
<br />ment. a monthly charge (in Lieu of a morrgagti, ittyltsnoe prcmiUtnl
<br />which shall be in an amount equal to one- twel". -(t °12) of on@-
<br />half (1/2) per centum of the average outstanding balance due on
<br />the note computed without taking into account delinquendes 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 covering the properly. plus taxes
<br />and- aLustments next due on the - n perty tgy ac eeri ai.�j..iJ3, r,,r
<br />Leader) less in sums already paid therefor divided by the number
<br />of months to elapse before one (1) month prior to the date when
<br />such ground rents. premiums. taxes and assessments will become
<br />delinquent, such sums to be held by Lender in trust to pay said
<br />ground rents. premiums, taxes and _special assessments; and
<br />(e) All payments mentioned in 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 />meet to be applied by the Lender to the following items in the
<br />order set forth:
<br />(Q. premium charges under the contract of insurance with
<br />the Secretary of Housing 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.. (he note secured hereby;
<br />(W) amortization of the principal of said.nore-, and
<br />(1 a,we charges.
<br />Any &4ra y iii •floe amount of such aggregate monthly pay-
<br />ment sh"'.• unless Moo good by the Borrower prior to the due
<br />date of the next so Pamtent. constitute an evert of default
<br />under this mortgage: The Lender may collect a "late charge" not
<br />to exoetd' foie ants (49) for each dollar (Sl) of each payment
<br />r �
<br />store than fifteen (15) days in arrears to cover the extra expense
<br />involved in handling delinquent payments.
<br />i. That if the total of the payments made by the Borrower
<br />under (b) of paragraph 2 preceding %hull exceed the amount, of
<br />Payments actually made by the lender for ground rents; taxes and
<br />assessments or insurance premftinh�._ats the case may be.•suCh ex-
<br />cess, it the loan is current, at the option of the Borrower. shall be
<br />credited by the Lender on sub.�tlont paymetts 10 he made by the
<br />Borrower, or refunded to the Borr�)tver. lf.,however. the monthly
<br />payitrd4s made by the Borrower. under, (b) of paragraph 2
<br />prcWog shall not be sufficient to pay ground rents, tog:% and
<br />asscsaravhts or insurance premiums, as the case may be, v►ben the
<br />same, shall become due and payable, then the Borrower shaft pay
<br />to the Lender any amount necessary to make up the deficiency, tsn
<br />or before the date when paymet)t of such ground rents. taxes.
<br />assessments. or insurance premiums shall be due. If at any time
<br />the Borrower shall tender to,Ox Under. in accordance with the
<br />provisions of the nbtr secures ivieby. full . payment of the entire
<br />indebtedness repres ted thereby, the Len�ea shall, in computing
<br />the amount of such indebtedness, credit to the account of the Bor-
<br />rower all payments made under the provisions of (a) of paragraph
<br />2 hereof which the Lender has not become obligated to pay to the
<br />SeyT Lary of Housing and Urban Develooment and any balance re-
<br />maining in the funds accumulated under the provisions of (b) of
<br />paragraph 2 hereoft If there shall be a dcfaub under any of the
<br />provisions of this instrument resulting in a.pvblic sale of the
<br />pretnisas covered hereby, or if the Lender aquires the property
<br />otftemise after default. the Lendea•shall apply. at the time of the
<br />commencement of such proceed5tr^ or at the time the property is
<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 have been
<br />made under (a) of paragraph 2.
<br />That the GotESim- Qt pay ground rem%, tastes, assessments,
<br />water rates, and other governmental or mun3dpal charges, fines,
<br />or impositions, for-which provision hit not been made
<br />htreinbefore, and in default tN%Wff ah .ender may pay the same;
<br />and that the Borrower will promplU.y, &liver the official reoopts
<br />therefor to the Lender.
<br />S. The Borrower will pay all hexes which may be levied upon
<br />the Lender's interest in said re&V state and improvementslw'i d-
<br />which tnay be levied upon this.thsirument or the debt secatsad•
<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 loan usurious).
<br />but excluding any income tax, State or Feder4, imposed on
<br />Lender.,and will file the official tectipt showing such payment
<br />with, the Lender. Upon violation of this undertaking. or if the
<br />Borrower is prohibited by any Utk,now or hereafter existing from
<br />paying the whole or any portico. 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 provides that
<br />any amount so paid by the Borra� ver shall be credited on the debt,
<br />the Lgrnder shall have the right ru•give ninety days' written notice
<br />to .the owner of the premises. requiring the payment of the debt.
<br />If :*— .rah notice be given, the said debt shall become due, payable
<br />sitd :ollectible at the expiration of said ninety days.
<br />6,.•That should the Borrowec- -fail! to pay any sum or keep any
<br />coverra:•t provided for in this tsa ment. then the Lender, at its
<br />optri:rt1, may pay or perform the saint. and all expenditures so
<br />t: r y •'
<br />Page 2 of 5 HUD- 921430T
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