|
Borrower and Lender covenant and agree as follows:
<br />1. That Narrower will pay the intlehtednem. as hercinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part on
<br />any installment due date.
<br />2. That, together with, and in addition to, the monthly payments
<br />of principal aced interest payable under the terns of the note secured
<br />hereby, the Borrower will pay to the Lender, on the fiat day of each
<br />month until the said mate is fully paid, the following suns:
<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 due on the property (aU as esdatakd Iy the /.ender)
<br />!eta all suns already paid therefor divided by the nwaber of months
<br />to elapse before one (1) month prior to the date when suck. ground
<br />rents, premiums, taxes and assessments will become deliquent. such
<br />gums to be held by Lender in trust to pay said ground rents.
<br />premiums, taxes and special assessments; and
<br />(b) All payments mentioned in the preceding subsection of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall be added together, and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a singe payment to be
<br />applied by the Lender to the following items in the order set forth:
<br />(1) ground rents, taxes, assessments, fire and other hazard insur-
<br />tnce premium;
<br />(11) interest:'m the note secured hereby;
<br />(111) amortization of the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default under this
<br />mortgage. The Lender may collect a "late charge" not to exceed four
<br />=r.to (4S) ; .: each do! W. : ►1; of =c mare tbw. fifteen .
<br />(I5) days in arrears to cover the extra expense involved-in handling
<br />delinquent payments.
<br />s. That if the total of the payments made by the ourruxcr under.
<br />(a) of paragraph 2 preceding shall exceed the amount of payments '
<br />actually made by the Lender for ground rents, taxes and assessments
<br />at insurance premiums, as the case may be, such excess, if the loan is
<br />current. at slue option of the Borrower, shall be credited by the
<br />Lender on sjuent payments to be made by the Borrower. or
<br />refunded to (Mir Borrower. If, however, the monthly payments made
<br />by the Borrower under (a),.yf paragraph 2 precedingsftall etot be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums. ads. xhe case may be, when the same shall biome due and
<br />payable. theft ihjrr Borrower shall pay to the Lender any amount
<br />necessary Wmake up the deficiency, on or before the date: when
<br />payment of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Borrower shsli tender to
<br />the !.ender, in p=rdanee with the provisions of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby.
<br />the lender AWL in computing the amounrof such indebtedness.
<br />credit to-tbriaccount of the Borrower dawbalance remaining in the
<br />funds acairttulated under the provisions a3(• (a) of paragraph 2 hereof.
<br />If these shall be a default under any of the provisions of this
<br />instruitr auresulting in a public sale of the premises coirred hereby.
<br />1
<br />8y--- 203782
<br />or if the Lender acquires the property otherwise after default, the
<br />lender shall apply, at the time of the commencement of such
<br />proceedings, of at the time the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (al of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said nntc.
<br />4. That the Borrower will pay ground rents, taxes, assermtents.,
<br />water, rates, and other governmental or mwticipal charges, Goes, or
<br />impositions, for which provision bas not been mark hereinbef0e,
<br />and in default thereof the Lender may pay the same. and that the
<br />Btxmwer will promptly deliver the official receipts therefor to the
<br />Lender.
<br />S. The Borrower will pay all toes 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 or the debt secured hereby (but
<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 tax, State or Federal, imposed on Lender. and will file the
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<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 expiration of
<br />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. may pay or perform the same. and all expenditures so made
<br />shall be added to the principal sum owing on the 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 />Lender. to be applied toward the payment of the note and all suns
<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, aft 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 repairing said premises and of renting She same and
<br />collecting the tents, rti vicediws and income. and it May pay out of said
<br />incomes 0 cipm%cs of repairing said premises and necessary
<br />commissions, and expenses incurred its renting and managing the
<br />same and of collecting rentals therefrom; the balance remaining, if
<br />any. to be applied toward the discharge of said indebtedness.
<br />8. That the Borrowerwill keep the improvements now existing or
<br />hereafter erected on the property. insa and as may be required from
<br />time to time by the Lender against loss by fire and other hazards,, .
<br />casualtiesaatd contingencies in such amounts and for such periods us
<br />may be required by the! bender and will pay promptly, when due,
<br />any premiums on such: insurance, provision for payment of which
<br />has not been made hercinbefore. All insurance shall be carried in
<br />companies approved by the. 1.endec=4the policies and renewal's,
<br />thereof shall be held by. the Lender and have attached thereto loss
<br />payable clauses in favor rif and in form acceptable to the Lender. In
<br />Page 2 of 5 HUD- 92143DT -1
<br />J
<br />rd
<br />
|