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Botrowet and Gender coveaaat and agree as ftrllows:
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<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 and interest payable, un4 v the terms of the note secured
<br />hereby, the 111orruwer 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 die
<br />premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus axes and
<br />amessraents next due on the property (all as estimated b), the l enderi
<br />hiss all sums already paid therefor divided by the ntimbor of momhs
<br />to elapse before one (1) month prior to the date who gush gtoubd+
<br />rents, premiums, taxes and assessments will become deliquent, such
<br />,rums to he held by Lender in trust to pay said ground rents,
<br />premiums, taxes and special assessments; and
<br />(b) All payment% mentioned in the preceding subsection of this
<br />paragtaph ano all payments to be made undec the note secured
<br />hereby shall fu added together, and the aggregate amount thereof
<br />shall Ice paid by the Borrower each month in a single payment to be
<br />applied by the Lender to the following items in�he order set forth:
<br />(1) ground rents, taxes, issessments, Fire and other hazard insur-
<br />ance premiums;
<br />(11) interest on 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 6te of the
<br />next such payment, constitute an event of default under this
<br />tnong3gc. The Lender mity collect a elate charge" not to exceed four
<br />cents (49) for each dollar IS l ) of crch payment more than fifteen
<br />(1 5) days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
<br />3. That if the total of the payments made by the Bonowty 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 />or insurance premiums, as the case may be, such excess. if the loam is
<br />current, at the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to he 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 he. when the same shall become due and
<br />payable, then the Borrower %hall pay to the Lender any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents, tare•, assessments, or tnsurancee
<br />premiums shall be due. If at any time the Burrower shall tender to
<br />the Lender, in accordance with the provisn►ns of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby.
<br />the Lender shall. to computing the amount of such indebtedness.
<br />credit to the account of the Wrrower any balance remaining in the
<br />funds accumulated under the provisuom of tat of paragraph .2 hereof.
<br />If there shall be a default under any of the provisions of this
<br />instrument resulting in a public sale of the premises covered hereby.
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<br />gg,�t 1AOW
<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, or at the time the property is otherwise 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, fine& or
<br />impositions, for which provision has not been made hereinbefore,
<br />and in default thereof 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 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 %uch 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 coedited 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 paythent 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 shoutd'the Borraivr fail to pay any sum or keep any
<br />rnynnang � �uv3gA nr iR ettia inneitmprit, then the Lender. at i
<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 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 poxvog to appoint any agent at agents it may desire for the
<br />purpose of repairing said premises and of renting the some and
<br />collecting the rents, revenues and income. and it may pay out of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions s, rd expenses incurred in renting and managing the
<br />same and of colkaing rentals therefrom; the balance remaining, if
<br />any, to be applied toward the discharge of said indebtedness.
<br />E. That the Borrower will. keep the improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />time to time by the Lender against lo—ca by fire and other hazards,
<br />cases, l es aed contingencies in such amounts and for such periods as
<br />mat be tai Wred by the Lender and will pay promptly, when due.
<br />anjp FtenrIurrs an such insurance, provision for payment of wbich
<br />has twt: been; made hereinbefore. All insurance shall be carried in
<br />comps noes approved by the Lender_ and the policies and renewals
<br />themet'shO be held by the Lender and have attached thereto loss
<br />payaNe daums in favor of and in form acceptable to the Lender. In
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<br />HUD- 92143DT -1
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