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<br />89-- 103100
<br />Ilotrower and Leader covenant and agree as Wows: more than fifteen (15) days in arrears h► cover the extra expense
<br />involved in handline delinquent navments.
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part
<br />on any installment duc date.
<br />2. That. together with. and in addition to, the monthly
<br />payments of principal and interest payab!c 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 hereof with funds
<br />to pay the next mortgage insurance premium if this instrument and
<br />the note secured hereby are insured, or a monthly charge (in lieu
<br />of a.mortgage insuraucv premium) if they are held by the
<br />Secretary of Housing and Urban Development, as follows:
<br />(1) .ii and so long as said note of even date and this instru-
<br />ment are-Insured or,'am,-reinsured under the provisions of the Na-
<br />tional Housing Act,, ;ar• amount sufficient to accumulate in the
<br />hands ! the holdet ikme (1) month prior to its due date the annual
<br />mortgate4risurance pre.mium in order 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 !dreg as said note of even date and this instru-
<br />ment are held by the.Sr,%,retary of Housing and Urban Develop-,
<br />ment. a monthly ehars< tin lieu of a mortgage insurance prenzrum)
<br />which. sbtll be in an; anaqurgt ege:d to one - twelfth (1/12) of vrs-
<br />}tatf r<1'2) per centum Lis the axi rT ;e outstanding balance due on
<br />j1br -mxz,computed vtiiftut takiki$ in:o.account delinquencies or
<br />prepay.titents;
<br />(b) i 'sum equal to the ground. wits. if any, next due, plus the
<br />premiums that will next become due and payable on policies of
<br />fire and other hazard insurance cowering the property, plus taxes
<br />and assessments next due on the property (all as estimated by the
<br />Lender) less all 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, tares 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 />(c) 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 shalt be paid by the Borrower each month in a single p*�
<br />ment to be applied by the Gender to the following items in the
<br />order set forth:
<br />(1) 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 art~ r
<br />be;
<br />(II) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note secured hereby;
<br />(I4') amortization of the principal of said note; and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate monthly pay -
<br />ment shall, unless trade good by the Borrower prior to the vw..
<br />date of-the next such payment, coaastitute an event of defatrs�
<br />tinder tbfs mortgage. The Lender vna5 collect a. ".late charg; '" srot
<br />to exceed four cents.(44) for each dollar (SI).:oE;'each payment
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<br />3. That if the ttaal of the palrrtu:nts made by the Horrower
<br />under (b) of paragraph 2 preceditty shall exceed the amount of
<br />payments actually made by the Lender for ground rents, titres and
<br />assessments or insurance premiums, as the case may be. such ex-
<br />cess. if the loan is current, at the option of the Borrower, shall be
<br />credited by the Lender on subsequent payments to be made by the
<br />Borrower, or refunded to the Borrower. If, however, the monthly
<br />payments mach by the Borrower under (b) of paragraph, 2
<br />preceding shall not be sufficient to pay ground rents, taxes and
<br />assessments or insurance premiums, as the ca-.e ntar -he - when the
<br />same- shall become due and payable, then -the Borrower shnll pay
<br />to the Lender any amount, necessary to make up the deficiency, on
<br />or before the date when payment of such ground rents, taxes,
<br />assessments, or insurance premiums shall -bc due. If at any time
<br />the Borrower shall tender to the Lender, id ac;cordanee with the
<br />provisions of the note secured f grOy, full payment of the entire
<br />indebledness represented thetdtn , the Lender shall, in computing
<br />the amount of such indebtednemi, credit to the account of the Bor-
<br />rower all payments made under the provisions of (a) of uark;raph• •
<br />2 hrtcef which the Lender has not become obligated to pay to the
<br />Sec�eltary of Housing and Urban Development and any balance re-
<br />ntainiAG in the funds accumulated under ifie provisions of (b) of
<br />Pw- ae,caph 2 hereof. If there shX1 be a default under any of the
<br />proxkslons of this instrument mkulting in a public sale of the
<br />premises covered hereby. or if the Lender acquires the property
<br />otherwise after default. the Lender shall apply, at the time of the
<br />commencement of such proceedings, or at the time the property is
<br />otherwise acquired, the balan %� then remaining in the funds ac-
<br />curitukted under (b) of paragssph 2 preceding, as a credit against
<br />the'4:mount of principal their Tg'maining unpaid under said note.
<br />and shall properly, adjust any payments which shall have been
<br />made under (a) of ypragraph 2.
<br />S_ Mat the Borrower ►►ill C.ai ground rents, taxes, assessments,
<br />watcv raxcc_ anti Other govern. —tal or- muni:ipal Lharger. fin: ,
<br />or impositions, for %%hich provision has not been made
<br />hereinbefore: and In default thereof the Lender may pay the same;
<br />any ;.hat the Dbrrm%er will proulptly deii%cc the official receipts
<br />therefor to the Lender.
<br />5. The Borrower will pay all taxes .which may be levied upon
<br />the Lender's interes; in said real estate and improvements, and
<br />which may be IewEed' upon this instrument or the debt secured
<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 Federal, imposed on
<br />Lender, and will file the official receipt showing such payment
<br />with the Lender. Upon violation of this undertaking. or if the
<br />Borrower is prohibited by any law now or hereafter existing from
<br />paying the whole or any portion of the aformJ taxes, or upon
<br />the rendering of any court decree prohibiting et:e pTaymeatr, by the
<br />Borrower of any such taxes. or if such law oe.derree pLo►ides that
<br />any amount so paid by the Borrower shall be credited'on the debt.
<br />the Lender shall have the right to give ninety days' written notice
<br />to the owner of,rhe premises, requiring the payment of the debt.
<br />if such notice be given, the said debt shall become due. payable
<br />and,caltectible at the expirauen of said ninety days.
<br />6,1hiat should the Borrouer.fail to pay any sum or keep any
<br />covenant provided for in this 6%krument, then the Lender, at its
<br />optic -_ may pay or perform s.hc came. and all expenditures so
<br />Pagr 2 yt s • : HUD- 92143DT
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