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ilorroMK and t.cnder cavtllaal atw rivet as MOMS:
<br />1. That Nutowet will pay the itvjewcdne4s, as hereinbefore
<br />provided. Privilege is resetvcd to pay the debt in whole or in pan
<br />on any installment due date.
<br />2. That, tclMher 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 Leader, on the
<br />first day of each month until the said note is fully paid. the
<br />following sutras:
<br />(a) Amount sufficient to provide the holder hereof with funds
<br />to pay the next mortge insurance premium if this instrument and
<br />the note secured hereby are insured, or a monthly charge (in lieu
<br />of a mrxpp 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 provisiotu of the Na-
<br />tional Housing Act, an amount; sufficient to am- umulate in the
<br />har 4s, �f ;he holdrvr, cmie (f) tttemb. prior to its due date tare annual
<br />mottg.7i((e imirance, preinium in ender to pmviate_soi:tt i eldeT with
<br />fun& 40 )aay such ; pemium to the; Secretary. vl f•] Wings mi4 U'r-
<br />ban 1`1t:rtiopmen4 ostu ant to the National f• ousia(t Act. ass
<br />amended. and agplkisratk Regulations thereundea; or
<br />(11) If and- sn Mng as said note of even date and this emstru-
<br />ment are held I!% Ow Secretary of Housing and Urban D evelx*a-
<br />ment, a monthly, eaarlit (in tiro of a mortgage insurance Erta sturn)
<br />which shall be in an amount equal to one -metf h (1!12) of one.
<br />half (1/2) per centt= gf.the average outstanding balance due on
<br />the note computed, without taking 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 covering the property, plus taxes
<br />and assessments next due on the propeny (all as estimated by fhe
<br />Lmded Tessa ail stints aimaiy paid ritcrefor 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 ttevomc
<br />delinquent, such sums to be held by Lender in !rust to pay said
<br />ground rents. premiums, taxes and special assessntenrv: and
<br />(N All payments mentioned in the two preceding vubacctions 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 />mmt 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 rents. taxes, assessments. fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note s4nured hereby:
<br />(IV) amortirAdon of tite'principal•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 />date of the next such payment, constitute an event of default
<br />under this mortgage. The Lender may collect a "laic chatgc" rut
<br />to exceed four cents (46) for each dollar (SO of each payment
<br />more than fifteen (15) days in artcars to cover the eNtra c-,peose
<br />involved in handling delinquent payments.
<br />3. That if the total of the payments made by the 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 insuramm 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 su.KTquent payments to be n;K,14, by the
<br />Borrower, or tefunded to the Borrower. If, hc�vrcwer, tf ;S:rraiuitlily
<br />payments made by the Borrower under (b?•of paragrap1 Z
<br />preceding shag uqc be sufficient to pay ground rents, taxes end
<br />assessments or insurance premiums, as the case may be. when the
<br />same shall become due and payable, then the Borrower shall 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 be due. If at any time
<br />the borrower shall tender to the Lender, in accordance with the
<br />prna%isiwns of the note secured hereby. full payment of the entire
<br />imii medness represented thereby, the Lender shall, in computing
<br />the amount of, suet indebtedness. credit to the account of the Bor-
<br />rower all payrttOws made under the provisions of (a) of paragraph
<br />2 hereof which ogee" Lender has not become obligated to pay to the .
<br />Scci*,ary of Housing and Urban Development and any balance re-
<br />mainii�v in the funds accumulated under the provisions or (iJ -of
<br />par;.sQ* r h ? l t'ereof. If there shall be a default under aafef t,iie '
<br />pit.* dsiorts Qf.' ibili; instrument resulting in a public sate. N; .Ow
<br />premises co.verw; hereby. or if the Lender acAaizw itrte *Orty
<br />otherwise afrt,,t default, the Lender shalt agj{ Is, at O-e tdrte'df the
<br />cemtne UNment of such pro" "178A pr att the vmi; the pfrit terry is
<br />arfxt,Itwise acquiio, the balw?m then rerttuirt>^, :�i.',ifq frjh&f ac•
<br />cumulated undo (iol.of paragraph 2 prece+d.iagc., a i a credit against
<br />the amount of prrmypal then remaining uttpaiidt under said note,
<br />and shall property 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 />waver rates, and otner 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 receipts
<br />thttefor ►n the Lander.
<br />5. The Borro%vct will pay all taxes which.may be levied upon
<br />the L.cnder's interest in said real estate and improvements, and
<br />which may be levied 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 snake 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 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 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 the premises, requiring the payment of the debt.
<br />If such notice be gtven, the paid 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. then the Lender. at its
<br />option, tnav pay or perform the same. and all expenditures so
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<br />Pape 2 of 5 Nt1D-921430T
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