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Borrower and tender covenant and agree as follows:
<br />1. That Borrower will pay the indt:btedneaa, as hereiabefore
<br />provided. Privilege is reserved to pay the debt in whole Of in part on
<br />any installment due date.
<br />2. That. together with, and in addition to, Cite monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby, the Borrower will pay to the lender, on 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, if any. next due. plus the
<br />premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next duo on the property (off as estimated by the Lender)
<br />Baas an sums already paid therefor divided by the number of months
<br />to elapse before one (1) month prior to the date when such ground
<br />rents, premiumm taxes and assessments will become deliquent, such
<br />sums to be held by Lender in trust to pay said ground rents,
<br />premiums, taxes and special assessments; and
<br />(b) All payments meatiioned in the preceding subsection of this
<br />paragraph and all paymmis tube trade under the note secured
<br />hereby shall be added together. ar d the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to be
<br />applied by the Lender to the following items in the order set fottti
<br />(1) ground rents, taxes, assessments, fire and other hazard insur.
<br />ante premiums;
<br />(It) interest on the note secured hereby;
<br />(111) amortization of the principal of said note, and
<br />(IV) late charges.
<br />Any deficiency ksi the amount of such aggregate monthly payment
<br />shall, unbess made good by the Borrower prior to the due date of the
<br />next such paymeat, constitute an event of default under this
<br />OkOftga�e. Ire 4endes may wiimi a "
<br />laic tiraifrc" 8vi to cw,n c3 four
<br />ants (40 for each dollar (SI) of each payment more than fifteen
<br />(1S) days in arrears to cover the extra expense involved in handling
<br />rletingpent f ymentt
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the amount of payments
<br />actually made by the Lender for ground rents. texts and assessments
<br />or insurance premium% as the case may be, such excess, if the-Wan is
<br />current, at the option of the Boffdwet;, shall be credited by the,. :
<br />Lender on subsequent 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 assessments or insurance
<br />premiums, as the case may be, when the same shall become. cove and
<br />payable. then the Borrower shall pay to the Lender any ameu )mt
<br />necessary to make up the defkaency, on or befem -the date %hen
<br />payment of such ground rents. taxes, assessmenc& or insurance
<br />premiums shall be due. If at any time the Borrower shall tender to
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby,
<br />the tender shall, in computing the amount of such indebtedness,
<br />credit to the account of the Borrower any balsmce remaining in the
<br />funds accumulated wader the provisions of (a�of paragraph 2 hereof.
<br />N there shall be a default under any of the provisions of this
<br />insbvaii t resulting in a public We of the premises covered Denby.
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<br />or if the Lender acquitm the ttoperty otherwise after default, the
<br />Lender shall apply, at the time of the commencement of such
<br />proceedings, or at the time the property is othetwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said note.
<br />4. That the Borrower will pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefom
<br />and in default tbe-roof the lender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />S. The Borrower will pay all taxes which may be levied upon the
<br />Lender's interest in said real estate and improvements, and which
<br />may be levied upon this instrument orate debt secured hereby (but
<br />only to the extent that such is not peWbited by law and only to the
<br />extent that such will not make this ledt.raffattnous), but excluding any
<br />income tax, State or Federal. impose lem ffkodes, and will file the
<br />official receipt showing such payxhe*t%�ig ft, Lender. Upon
<br />violation of this undertaking, or cEtlnc,lit4mwer is prohibited :by any
<br />law now or hereafter existing (Torn 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 K.
<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 tM
<br />right to give ninety days' wentien notice to the owner of the premises
<br />requiring the payment of die debt. If such notice be given, the said
<br />debt shall become due. payable and collectible at the expiration of
<br />said ninety days.
<br />6. That should the Borrower Fail to pay any sum or keep say
<br />covenant provided (or-in. this irrstturnent�,: then the Lender. at its
<br />option, may pay or rmfc. .. tj - .ss:ne attd all expenditures so made
<br />shall be added to Itee» priitci¢#l-sum owing OR ttte said note, shall
<br />be secured hereby. and shall bear interest at the rate set forth in the
<br />said note, until paid.
<br />7. That the Borrower hereby assigns. transfers and sets over to the
<br />t en&r, 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 agent or agents it may desire for the
<br />purpose of repaiuing said premises and of revtWg the same and
<br />collecting the ants, revenues and income, and it may pay out of said
<br />incuixim all expenses of repairing said premises and necessary
<br />cvtr gii �e is and expenses incurred in renting and man.40t the
<br />same•attd" of collecting rentals therefrom; the balance rew aactng, if
<br />any, to be apo'iai toward the discharge of safil;.indeky�acfitq¢ss.
<br />8. That the 1#ortower wilt beep the improvemtats.now existing or
<br />hereafter erected on the property. insured as may be requLmd from
<br />time to time by the Lender against loss by fire and other hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by the Lender and will pay promptly, when due.
<br />any premiums on such insurance. provision for payment of which
<br />has not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the Lender and the policies and renewals
<br />thereof shall be held by the Lender and have attached thereto loss
<br />payable clauses. in favor of And in form ac tw t J=der. In
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