|
c
<br />Borrower and Leader covenant and agree as follows:
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Ptivikew 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 />fiat day of each month until the said note is fully paid, the
<br />following sums:
<br />(a) Amount 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 arc ij wed, or a monthly charge (in lieu
<br />of a mortgage insurance pi*ttlitm) if they are held by the
<br />Secretary of Housing and Urbart Development, as follows:
<br />(1) If and so long as said note of even date anal, this instru-
<br />ment are insured or are relosttrrxi under the provisions of the Na-
<br />tional Housing Act. an ampW sufficient, to accumW41r- Iii. the
<br />hands of the holder one (1) month prior tot.' its due ghtb'ltie annelid
<br />ttaortgttge insttmm premium in order to pimMde- such ile.Mter with
<br />funds to pay such premium to the Secretary of Housing, and Ur.
<br />ban Development pursuant td the National Housing Ad,; as
<br />amended. and applicable Regulations thereunder; or
<br />(11) If and so long as said note of even date and this instru-
<br />ment 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 (1/1.2) of one-
<br />half (1/2) per centum of 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 arty. 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 by 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, taxes and special assessments; and
<br />(c) All payments mentioned in the two preceding subsections of S The Borrower will a all taxes which may be levied upon
<br />this paragraph and all payments to be made under the note pay y po
<br />secured hereby.slr.,11 be added together, and the aggregate amount the Lender's interest in said -real estate and improvements. and
<br />thereof shall be'paid by the Borrower each month in a single pay- which may be levied upon this instrument or the debt secured
<br />treat to be applied by the Latider to the following items in the hereby (but only to the extent than 44L� is not prohibited by law
<br />arcUr set forth: and only to the extent that such wiM pus make this loan usurious),
<br />but excluding any income tans. State or Federal. imposed on
<br />Lender, and will file the offrr3dal receipt showing such payment
<br />with the Lender. Upon. %$66,zion of this undertaking, or if the
<br />Borrower is prohibited by any law now or hereafter existing from
<br />paying the whole of any portion of t itiforesaid taxes. or upon
<br />the rendering of; any court decree proiilbiting 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 given, the said debt shall become due, payable
<br />and collectible at the expiration of said ninety days.
<br />I
<br />89-- 143886
<br />snore than fifteen (15) days in arrears to cover the extra expense
<br />involved in handling delinquent payments,
<br />3. That if the total of the payments made by the Borrower
<br />under ib) 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 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 subsequent payments to be made by the
<br />Borrower, or refunded to the 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 />were 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 pa-vment 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 />provisions of tAe note secured hereby, tail payment of the entire
<br />indebtedness represented 'thereby. the'i:arder shall, in computing
<br />the amount of such indebtedness. credit to the account of the Bor-
<br />rower all payments madr3- under the provisions. of (;n). of paragraph
<br />2 hereof which the [.endec•iiss not becorftc abti aW- to pay to the
<br />Secretary of Housing and`?lrtian Dcrdopment and any balance re-
<br />maining in the funds accumulated urr m' iite, provisions of (b) of
<br />paragraph 2 hereof. if there shall .be.� default under any of the
<br />provisions of this instru nczt resulting in a public sale of the
<br />premises covered hereby.-,er if the Lender acquires the property
<br />otherwise after default; r1m.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 rent-; taxes, assessments,
<br />water rates. and other governmental or municipal charges, fines.
<br />or impositions, for which provision has not been made
<br />hercinbefore, and in default thereof the Lender may pay the same;
<br />and that the Borrower will promptly deliver the official receipts
<br />therefor to the Lender.
<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 secured here(r3;
<br />(M amortization of the principal of said note; and
<br />M late charges.
<br />Any deficiency in the amount of such. aggregate monthly pay-
<br />ment shall, unless made good by the Borrov�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 ants (46) for each dollar (Sl) of each payment
<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 p1,�
<br />L
<br />HUD - 92143DT
<br />__J1_
<br />
|