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<br />Borrower and Leader euveeaet and $In* as fttgows:
<br />1. That Borrower will pay the indebtedness. as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part
<br />on any Insaallment due date.
<br />2. That. togethelr 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) Anhxmt sufficient to provide the holder hereof -with funds
<br />to pay the next mortgage insurance premium if this instrument and
<br />the note secured hereby are insured, or a monthly charge (in lieu
<br />of &.mortgage incuranix 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
<br />ment arc insured or are reinsured under the provisions of the N*'
<br />tional Housing Act, an amount sufficient to accumulate in the
<br />htinds 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 11i:rusing and Ur-
<br />ban Development pursuant to the National HouS PS Act. as
<br />amended. and applicable Regulations thereunder; or
<br />(U) If and so tong as said note of even date and this instru-
<br />ment are held by the Secretary of Housing and Uri-van Develop-
<br />ment, a monthly charge (in lieu of a mongace ms t-,mce premium)
<br />which shall- be In an: a &:i .ant equal to one - twelfth W12) of one -
<br />half (1 i2)1. perr txnlum; *f 'the average outstanding balance due on
<br />the note.gvir4med w4#4ut.takin4 ittio account delinquencies or
<br />prepaymehri;
<br />(b) A sum equal tq.ilit:.yround rents. if any. next due. plus the 1
<br />premiums that will ncatt: bi;,trre due and payable on policies of
<br />fire and other hazard insurance covering the property, plus taxes
<br />and --tsessments next due on the property fall ac e5 imated ry 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, pmimums, taxes and assessments will become
<br />delinquent, such sum; lu be held by Lender in trust to pay said
<br />ground rents, premiums, taxes and spcciai assessments; and
<br />(c) Ali p°ayinents mentioned in the two preceding subsection-, of
<br />this paragraph and all Oalyments to be made under the note
<br />secured hereby shall be aged together, and the aggregate amount
<br />thereof shall be paid bt: tlix Borrower each month in a single pay-
<br />ment to be applied by rlra. Lender to the following items in the
<br />order set forth:
<br />(1) premium chI4 s under the contract of insurance with
<br />the Secretary of Housisrg and Urban Development, or monthly
<br />Charge (in lieu of morrj�4 -r insurance premium), as the case may
<br />be;
<br />(TL), Swund rents. taxes, assessments. fire and other hazard
<br />insurance'pttitittiums;• ' .
<br />(111) interest en: rlie note secured hereby;
<br />(IV) amortizaticr, of the principal of said note; and
<br />(V) We 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 neat such payment. constitute an event of default
<br />under this mongage. The Lender may collect a —late charge" not
<br />to exceed four cents (46) for each dollar (Sl) of each payment
<br />M a,
<br />more than fifteen (15) days in arrears to cover the extra expense
<br />involved in handling delinquent payment-,,
<br />1. That if the total of the payments made by the &mower
<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 insurance premiums:; as the rase may bc, such ex-
<br />cess, if the loan is current. at the option of the Borrower, shall he
<br />credited by the Lender on subsequent payments to be made by the
<br />Borrower, or refunded to the Borrower. If. however, the monlhl)t
<br />payments nude 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 Borrrnver 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,'ttixes,
<br />.i5,V�wzeats, or insurance premiums shall be due. If at.any time
<br />the 4 1.wer shall ter<tier to the Lender, in,accordtinlo* tills the
<br />prolisuns of the note secured hereby, full payment of the entire
<br />indebtedness represented thereby. the Lender shall; in computing
<br />the tu)Vt ;,nt of such indebtedness. credit. to the account of IN Bor-
<br />rower' 44 �.aymenis made under the provisions of (a) of paraomph
<br />2 heron which the Lender has not become obligated to pay tq.the
<br />Secret,z, +1f Housing and Urban Development and any halance re-
<br />maining iii the funds accumulated under the provisions of (b) of
<br />paragraph 2 hereof. if there shall be a default under any of the
<br />proviMzis of this instrument resulting in a public sale of the
<br />premise , t,-overed hereby, or if the Lender acquires the propeny
<br />otherro;i:si; after default, the Lender shalt 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,;&,q a credit against
<br />the ampttnt of principal then remaining undid •under said note.
<br />and, sf iii properly adjust any paytrrests irtii :h shall ha%c been
<br />trade. tinder (a) of paragraph 2..
<br />4. Tha, tlx: °w^,rivrr:r will 'pay biiiiitiav i. =,7a 4atcc, assessments.
<br />water rates, and other governmental or municipal charges. fines,
<br />or im"-tions, for which provision has not been made
<br />hercinbe.ore, and in default thereof die Lender may pay the
<br />and that-the Borrower will promptly deliver tt•:. official receipts
<br />therefor to the Lender.
<br />S. The Borrower will pay all taxes which maybe levied upon
<br />the Letter's interest in said real estate and improvements, arixi:
<br />whtch nzay be levied upon this instrument or the debt se►nued,;
<br />hereby (but only to the extent that such is not prohibited 1ty law
<br />and only to the extent that such will not make this loan usurious),
<br />but excluding any income tax, State or Federal, imposed on
<br />I.ender- and will file the official receipt showing such payment
<br />with the Lender. Upon violatioct of this undertaking. or if t?�_-
<br />Borrower is prohibited by any law now or hereafter existing :ray&
<br />paying the %%hole or any portion of the aforesaid taxes, or upon
<br />the rendering of any court decree prohibiting the payment by the
<br />Borra• -cir of any such taxes, or if such law or decree provides. that
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<br />any r.titua• so paid by the Borrower shall be credited on the debt,
<br />the Leadof shall hase the right to give ninety days' written notice
<br />to the oi�-ner of the prerrises, requiring the payment of the debt.
<br />If such notice -be gi%en, 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 Lender, at its
<br />Option, may pay or perform the same. and all expenditures so
<br />Page 2 of 5 HUD- 92143DT
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