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<br />D301TOMer and !.ender covenant and agree as follows:
<br />1. That Borrower sill pay the indchtcdness, as hcreinbeforc
<br />provided. Privilege is reserved to pav 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 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 insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development, as follows:
<br />(1) if and so long as said note of even date and 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 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 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 />(1l) If and so long as said note of even date and this instru-
<br />M01311 are held by the Secretary of Housing and Urban Develop -
<br />meni, a monthly charge (in lieu of a mortgage insurance premium)
<br />which shall be in an amount equal to one - twelfth (1/12) of one -
<br />itaif (1/2) per centum of the average outstanding balane-e due on
<br />the note computed without 4king 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 coverinst the property, plus tt__
<br />and assessments next due on the property (all as estimarcvl 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„ Pte,;,ituns. taxes and assessments will become
<br />delittcluent, such sixtrc to be hdi by Lender in trust to P v said
<br />ground rents, prem:'z. -ns. ,axes and special assessments; and
<br />(c) All payments MentiMed in the two preceding subsections of
<br />this paragraph and aR PaM.nts to be made under the note
<br />secured hereby 062f,.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 applied by the Lender 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 may
<br />(11) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(111) -interest on the note secured hereby;
<br />IRV).at mortization of the principal of said note; and
<br />(� late charges.
<br />Any deficient, in the amount of such aggregate monthly pay-
<br />ment shall, eatmss made good by the Borrower prior to the due
<br />date:of,:tlte next such payment, constitute an event of default
<br />under tCi s mortgage. The Lender may collect a "late charge" not
<br />to exceed four cents (49) for each dollar ($1) of each payment
<br />11,1110 than fifteen (IS) days ill arrears it, aver tha extra espense
<br />unohr.l in handling delint(ut:ut )><tyment..
<br />3. `that if the total of the payments made by illp Borrower
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents, taxes and
<br />assessments or insurance premiums, as the case may be. such ".
<br />M-5. 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 made by-the Borrower undtir (b) of paragraph 2
<br />Preceding shall not be sufficient to pay ground rents. taxes and
<br />assessments or• insurance premiums, as the case may be, when the
<br />same shall becomtt•duo turd payable, then the Borrower shalt pay
<br />to the Lender any arpottnt ttwessary to make up the deficiency. on
<br />or before the date when payment of such ground rents. taxes,
<br />assessmentn, or insurance premiums shall be due. If at any time
<br />the BorTOlver shall tender to the Lender, in accordance with the
<br />provisions: of the note secured hereby, full payment of the entire
<br />indebtedness represented thereby. the lender shall, in computing
<br />the amount of such indebtedness, credit to the account of the Ilor-
<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 />Secretary of Housing and Urban Development and any balance re-
<br />maining in the funds accumulated under the provisions of (b) of
<br />paragraph 2 hereof. if there shall be a default under any of the
<br />Provisions of this instrument resulting 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 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 />4. That the Borrower will pay ground rents, taxes, assessments.
<br />water rates, and other governmental or municipal charges, fines,
<br />or impositions, for which provision has not been ulade
<br />hereinbefore, and in default thereof the Lender may pay the same;
<br />and that the Borrower will promptly deliver the official receipts
<br />therefor to "he Lender.
<br />5. The Borrower will tom. all taxes which may be levied upon
<br />the Lender's interest in sa;d real estate and improvements, and
<br />which may be Levied upon this instrument or the debt secured
<br />hereby (but o Z5 to the extent that siirh is not prohibited by law
<br />and only to the extent that such will not make this loan usurious),
<br />.and excluding any income.titv,, State or Federal, imposed on
<br />Lender. and will file the official receipt showing such: payment
<br />with the Len der.• Upon .ti6j4ion of this undertaking., or if the
<br />Borrower i5 Proh ibited b: Ay law now ;off hereafter existing frorn
<br />paying the wrote 0j. any poriion of the aforesaid taxes, or upon
<br />the rendering ef.a �> cue i,,rt.decree prohibiting the payment by the
<br />Borrower of any such Mx0s, or if such law or decree provides that
<br />any amount so paid by the Borrower shall be credited on the debt'.
<br />the Lender shall have the right to give nicety days' written notice
<br />to the owrea Of -the premises, requiring tfn:•payment of the debt,.
<br />If such notice be given, the said debt shad become due, payable
<br />and collectible at the expiration of said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep dny
<br />covenant provided for in this instrument, then the Lender. at its
<br />option, may pay or perform the same. and all expenditures so
<br />- G'.• Yet•
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