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<br />899 -403791
<br />Narrower and 14nder covenant and agree as Follows:
<br />1. That Murtmcr sill pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part
<br />on any installment due date.
<br />2. That. together 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 Lender. on the
<br />first day of each month until the said note is fully paid, the
<br />following sums:
<br />(a) Amount sufitclent to provide the holder hereof with funds
<br />to pay the treat mortgage insurance premium if this instrument. and
<br />the note secured hereby are insured, or a monthly charge tin llcu
<br />of a mortgage insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development. as follows:
<br />(f) If and so long as said note of even darn and this instru-
<br />ment are insured or are reinsured tinder the provisions of the Na-
<br />tional Housing Act, an amount stifficirnt, to accumulate in the
<br />hands of the holder one (1) month prior to its due date the annual
<br />mortgage insurance premium in order to provide such holder with
<br />funds to pay such premium to the Secretary of Housing and Ur-
<br />ban Development pursuant to the National Housing Act, as
<br />amended. and applicable Regulations thereunder; or
<br />(11) If and so long as said note of even date and this inr.tru-
<br />merit are held by the Secretary of Housing and Urban Develop-
<br />ment, a monthly charge (in lieu of a mortgage insurance premium)
<br />which shall be in an amount equal to one-twelfth (IftZy ref one-
<br />hAf (1/2) per cerium of the average outstanding bu6lrave due on
<br />the note computed without taking into account da`l•.rxluenctes or
<br />prepaymewt .
<br />(b) A stuw 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 property (all as estimated A)• the
<br />Lender) 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 and assessments will become
<br />delinquent, such sums to: be held by Lender in trust to pay said
<br />ground rents. premiums; tsxes and special assessments; and
<br />(c) All payments mentioned in the tw'o preceding subsections of
<br />this paragraph and all payments to be trade 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 />ment to be applied by the Lender to the following items in the
<br />order set forth:
<br />(1) premium charges under the coptract of insurance with .
<br />the Secretary of Housing and Urban Development, or monthly-'..:'
<br />charge (in lieu of mortgage insurance premium), as ibe case mar,
<br />be;
<br />(11) ground rents.',i;�es, asse�mients. fire and other hazarii
<br />insurance premiums;
<br />(111) interest on the,aele secured hereby;
<br />(IV) amortizatioti.Adt.the principal of said nct,t- and
<br />(V) late charges.
<br />Any deficiency in the amount of such- aggregate monthly pay-
<br />ment shall, unless trade good by the Manou;er 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 "late charge" not
<br />to exceed four cents (46) for each dollar (S1) of each payment
<br />inure than fifteen (IS) days in arrears to cover the cmra expense
<br />imoivc -d in handling delinquent paymc»tt.
<br />.1. That if the total of the payments made by the Borrower
<br />under (b) of paragraph 2 prefoing shall exceed lice amount of
<br />payments actually made by the Lender for ground rents, taxes and
<br />assessments or insurance premiums. as the case may be, such eh-
<br />vcss, 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 lite 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 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 Bvrrovver shall tender to the Lender, in accordance with the
<br />provisLrtt,�,of the note secured hereby, full payment of the v.1re
<br />indebte Mess represented thereby, the Lender shall, 1h coputing
<br />the amount of such indebtedness. credit to the itammitttt of the Bor-
<br />rower all payments made under the provisions of W of paragraph
<br />2 here,,-f. which the Lender has not become obligat vd to pit; av the
<br />Swami, of Housing and Urban Development and any balance re-
<br />mainitt,.e fn the funds accumulated under the provisions of (, of
<br />paragraph 2 hereof. If there shall be a default under any of the
<br />provisions of this instrument resulting in a public sale of the
<br />premises covered hereby. or if the Lender acquires the property
<br />otherwise after default, the Lender shall apply, at the time. of the
<br />commencement of such proceedings. or at the time the property is
<br />otherwise acquired. the balance then remaining in the funds ac
<br />cumulated under (b) of paragraph 2 preceding, as a credit against
<br />the amount of principal then remaining unpaid under said note,
<br />and shall properly 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 />water rates, and other governmental or municipal charges, fines.
<br />or impositions, for which provision has not been made
<br />hereinh. ore. ani in de-L -u t thereof the I ender may pay the Fsme;
<br />and that the Borrower will promptly deliver the official receipts
<br />therefor, to the Lender.
<br />5. Tl e &rrower will pay all taxes which may be levied upon
<br />the Le^u';ee s interest; in said real estate and improvements, and
<br />%,hied• a, p.., be levied upon this instrument or the debt secured
<br />hereby, 00 only to the extent that such is not prohibited by law
<br />and'=Oy to the extent that such will not maize this loan umrious).
<br />but excluding any income tax. State or Federal, imposed on
<br />Leader., 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 />;ft },ing, t to whole or any portion of the aforesaid taxes. or uppri
<br />the rer.;ering of any court decree prohibiting the payment by the
<br />:i36rrower 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 tug. ner of the premises, requiring the payment of the debt.
<br />If suede• notice be given, 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, then the I ender. at its
<br />option, may pay or perform the same, and all expenditures so
<br />Pape 2 of 5 HUD- 92143DT
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