|
amore awl t*Od" tvsvetnaal aced am as follows:
<br />1. That Borrower will pay the indebtedness, as hereiribefore
<br />provided. Privilege is reserved to pay the 4* in whole or in part
<br />on any inswthneta due date.
<br />2. That, together with. and in addition to, the t MIlily
<br />payments of priscipd and interest paysb a under the terms of the
<br />note stewed hereby, the Borrower will pay to the Lender, on the
<br />fire day of each month until the said twig is fully paid. the
<br />fodowittg twins:
<br />(a) Attsotmt sufficient to p•Ovide the hMder hereof with funds
<br />to pay The tract mort1W WAurarwe prtmiuto If this itnsttnitnent and
<br />the tote secured hereby are insured, or a monthly charge (in lieu
<br />of a mortpre 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 due and this insuu-
<br />toew we irsumd or are reinsured under the provisions of the Na-
<br />Wad Housing Act, ante amount sufficient to ao umulate in the
<br />bards of the ltoldee oem t month prior to iti due date the annual
<br />tsoctSW irnsttraw premium in order to provide such holder with
<br />funds to pity such premium to the Secretary of Housing and Ur-
<br />ban Development twrsuant to the National Housing Act. as
<br />amended, and appiiRable 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 Develop -
<br />mm. a monthly charge (in lieu of a mortgage imumxner premium)
<br />which shall be in an amount equal to one - twelfth (1/12) of one-
<br />halt (12) per centum of the average outstanding balance due on
<br />the note ccompuled w0out taking into aa�txw.nr dx(inquencies or
<br />(b) A sum equal to the ground rr.;s, if any, next due, plus the
<br />premiums that will next become due• a, ^d payable on policies of
<br />fire and other hazard insurance covering the property. plus taxes
<br />w*A n.—s mnta nni.eruct on qw puonerty tall ws earimaW by the
<br />Larder) 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. taxes anted, assessments will become
<br />delinquent. such sums to be held by Lenda in trust to pay said
<br />ground rents. premiums. taxes and special assdnuments; and
<br />(c) All payments mentioned in the two preceib tg 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 />mat 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 />be;
<br />(11) ground rcau. taxes, assessments, fire and other hazard
<br />insuramv premiums;
<br />(111) interest on the note soured hereby;
<br />(IV) amortization of the rru?:ipal of said note; and
<br />(V) late charges_
<br />Any deficiency in the amount of such aggregate monthly pay-
<br />ment shall, unless made good by the Borrower prior to the due
<br />dste of the next such payment, constitute an event of default
<br />under this mortgage. The Leader may collect a "late charge" not
<br />to exceed four cents 04b for each dollar (St) of each payment
<br />89-1033'7,
<br />more than fifteen (I5) clays h) arrears to cover the extra expense
<br />involved in handling deiit)quent payments.
<br />3. That if the total of the payments made by the Borro%cr
<br />under (b) of paragraph d preceding shall exceed the amount of
<br />payments actulft made by the Lender for ground rents, taxes and
<br />asamments or insurance premiums, as the can 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 made 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 case may be, when the
<br />same shall become due and payable, then the Borrower sball'pay
<br />to tbte Leader any amount necessary to make up the deficit+. o. on
<br />or before the date when payment of such ground rents, take.
<br />assessments. or insurance premiums shall be due. If at any time
<br />the Borrower sdnall tender to the Lender, in amrdance with the
<br />provisions of the eve secured hereby, full payment of the entire
<br />indebte4mms rerwamted thereby. the Lender shall, in eomg+uting
<br />the ammmt of sw:91t indebtedness. credit to the account of Abe, Bor-
<br />rower V rayivwis made under the provisions of (a) of pxirWaph
<br />2 hereof Aich tint` Lender has not become obligated to pair• to the
<br />Secretary of. Housing and Urban Development and any be4oce re-
<br />main. mg iv, the funds accumulated under the provisions off:ffl of
<br />paragraph 2 hereof. if there shall be a default under any. 6t the
<br />provisions of this instrument resulting in a public sale of tie;.
<br />premises covered bereby. or if the Leader acquires the property
<br />otherwise after default, the Lender shall apply. at the time of the
<br />commencenvent o3 such proceedings, or at the time the property is
<br />otherwise acquired, the balance then remaining in the funds, ac-
<br />cur.�uWed under (b) of paragrVh 2 preceding, as a ere& against
<br />the amount of principal then remaining unpaid under si 4 note,
<br />and shall properly adjust any payments which shall have been
<br />made under (a) of paragraph 2.
<br />d. That the Borrower will nav wound rents. taxes. amessments.
<br />water rates. and other governmental or municipal charges; fines.
<br />or impositions, for which provision has not been made
<br />hereinbefore, and in default thereof the Lender may pay the same;
<br />and that the Borrower will promptly deliver the official tmvipts
<br />therefor to the Lender.
<br />S. 1?ne Borrower will pay .1)! taxes which may be levied upon
<br />the Lender's interest in said roil estate and improvements. and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (but only tq the extent that such is nocprohibited by law
<br />and only to the extent that such will not make this ban usurious).
<br />but excluding any income tax. State or federal, imposed on
<br />Lender, and will rile the official receipt showing such piymmnt
<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 aforxaoid taxes, or upon
<br />try. rendering of any court de%xm prohibiting the payment by the
<br />l3 ms ower of any such taxes, arAf such law or decree provides that
<br />a6y amount so paid by the i)crsower shall be credited on the debt,
<br />the. Lender shall have the right to give ninety days' written notice
<br />it) die oµner of the premises, requiring the payment of the debt.
<br />if sutih notice be green, the said debt shall 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 any
<br />covenant provided for in this instrument. ftn the Lender, at its
<br />option, may pay or perform the same: and all expenditures so
<br />Page 2 of 5 '? MM9214301
<br />• L
<br />t
<br />w
<br />Y-
<br />
|