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Borrower and I.ettder covenant and aptree as follow%:
<br />1. That Horrower will pay the tndchiednem as hercrnbefore
<br />provided. prcvikge is nservcd to pry the dubs in whole or in put on
<br />any installment due date .
<br />2. That. together with, and in addition to. tht monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby. the Borrower will pay to the lender, oa 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, it any, next due, plus the
<br />premium that will next became due and payable on policies of fire
<br />and odai hazard insurance coveting the property, plus taxes and
<br />ameaswitis next doe on the property NN as estiaa d Ay the i".ert*r'1
<br />Intel all sous already paid therefor divided by the number of months
<br />us clopae before one (1) month p fkg )o the date when such ground
<br />rent& premiums, taxes and assa7tYCrs;3 will het cote deliyuent, such
<br />sun" to he hell by Lender in trust tit pay mid ground rents.
<br />premiums, taxes atad special assesments; and
<br />(b) All payments mentioned in the preceding subsection of this
<br />paragraph and all payments la be made under the noto secured
<br />hereby shall be added together, and the aggregate amount thereat
<br />shall be paid by the Borrower each month in a single payment to he
<br />applied by the Lender to the fallowing items in the order set forth:
<br />(1) snood rent%. taxes, assessmenm lire and other haard rnsur-
<br />am pecauWas:
<br />(III interest on the note secured hereby;
<br />(111) amortization of the principal of said note; and
<br />fIV) late charges.
<br />Any deficiency in the amount of such aggregate monthly, payment
<br />shall, unless mark good by the Borrower prix to the due date of the
<br />atilt sueh paymenk constitute an event of ck ult under this
<br />...nnarr T1w I ~trr May LWIM a "late Charlie" not to CACCCd (our
<br />cents (44) for catch dollar I$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 taade by the Borrower under
<br />fa) of paragraph 2 preceding shall exceed the amount of payments
<br />scu ally made by the lender for ground rents. taxes and assessments
<br />orrnsuralace premiums. as Ike case may be. such excess, of the loan is
<br />current. at the option of the Borrower, shall be credited by the
<br />Lender on ssbcequent payments to be made by the Borrower, or
<br />refunded to the Borrower. If. however. the monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessment. or insurance
<br />premiums. as the case may be. when the same shall became due and
<br />payable, tlhm. t?sre Borrower shall pay to tbe.l ender any amount
<br />necessary to Male .:p the &rKlency. on err before the date when
<br />pay;rneni & suds g}ou 4 rv2L& taxes. assessments, or tnsmrice
<br />pren%m. shall the 4w f.G v any time the Borrower shatU tender to
<br />ft L9114104, CA 0acx11dawx with the provisions of the note secured
<br />hereby. Rift' pxytnent of the entire indebtedness represented thereby.
<br />the Lender shall. in computing the amount of such indebtedness.
<br />aedh to the account of the Borrower any balance remaining in the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereof
<br />If There shall be a default under any of the provisions of this
<br />inure meat restalting in a public sale of the premises covered hereby.
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<br />tvr if the Lender acquires the property otherwise after default, the
<br />I.cnder shall apply, at the time of the commencement of such
<br />p -weedings, or at the time the property is ttherwise acquired, the
<br />balance then remaining in the funds accumulated undet (a) of
<br />gwit raph 2 prritd+ng, as a credit agaittsl the *WM of priibd;W
<br />then fematnrng unpaid under said note.
<br />4. That the Borrower will pay ground rents. taxes, assessnitnts,
<br />water rates. and ether governmental or mtntid"l Cklkq s. fates. or
<br />impositions. for which provision has"been made hereinbefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver the official roaipts therefcx to the
<br />Lender.
<br />5. The Borrower will pay all taxes which may be levied upon the
<br />Lender's interest in said feat estate and itapfovements. sad WWI%
<br />may he levied upon this instrument or the debt secured hereby Out
<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 usurious), but excluding any
<br />income tart, State or Federal, imposed on lender, and will file too
<br />Official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or it the Borrower is prohibited by arty .
<br />law now or hereafter 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 the
<br />Borrower shall be credited on the debt, the Lender shall have the
<br />right to give ninety days' written notice to the owner of the premises,
<br />requiring the payment of the debt. If such notice be given. the said
<br />debt shall become due. payable and collectible at the exp0ation of
<br />said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant promded for in this instrument, then the !.ender, at its
<br />option, may pay or perform the same. and all expenditures so made
<br />shall be added to the priisdpa) sum owing on the said note, shall
<br />he secured hereby, and 00 bear interest at the rate set forth in the
<br />Levi nrue until nand
<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 income to be derived from the said premises during
<br />such time as the indebtedness shall remain unpaid. and the Lender
<br />shall have power to appoint any aglrt: or, agents it may desire for the
<br />purpose of repairing sari, premises ohd.of renting the same and
<br />collecting the rents. revice�ucs and income, and it may pay out of said
<br />it omes all expenses of repairing said premises and necessary
<br />suimm s tvrs and expenses incurred in renting and managing the
<br />sari.% and .o# collecting rentals therefrom; the balance remaining, if "
<br />asy, to be appfted toward the discharge of said indebtedness.
<br />K. That tl*. Borrower wi;l keep the improvements rmw existing or
<br />hereafter created on the property. insured as may be: cequired from
<br />time to time by the Lender against loss liy fire ond.ncher hoards.
<br />casualties and contingencies in such arriounts and forsuch periods as
<br />may be required by the EA-mSer and will pay promp () ;w, when due.
<br />any premiums on such tzwizrance, provision for psymot of which
<br />has nor been made heretn5efore. All insurance shall be carried in
<br />companies approved by he Lender artd the policies and renewals
<br />thereof shall be held b} the Lender and have attached thereto loss
<br />payable clauses in 46,r+iS and in form acceptable to the Lender. In
<br />page 2 of 5 HUD- 92143DT -1
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