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Roreawim mW Leader covenant and svn as Maws:
<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 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 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 licit
<br />of a mortgage insurance premium) if tlr.+ty are held by the
<br />Secretary of Housing and Urban Devr{opment. as follows:
<br />(1) if and so long as said note of even, dale and this instru-
<br />ment are insured or are reinsured under the provinons of the Na-
<br />tional Housing Act. an amount sufficient 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 ptirWani 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 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- twelftl► (1/12) of one -
<br />half (1/2) per centuxms. of the average outstanding. balance due on •
<br />the note computed *Uiout taking, into account delinquencies oc
<br />prepayments;
<br />(b) A sum equal w 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 tares
<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 tv the Safe whelk
<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 assesvrwnts; and
<br />(c) All payments mentioned in thrr two preceding subswtotms of
<br />this paragraph and all payments to• be made under the note
<br />secured hereby shall be added toge^,.bma..and the' aggregate amount
<br />thereof shall be paid by: the Borrower each irtr ash 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 contract of insurance with
<br />the Secretary of Housing and Urban Developm.mt, or monthly
<br />charge (in lieu of mortgage insurance premium), as the case may
<br />be;
<br />(11) ground rents, taxes. a «essments, fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note secured ttereb±:
<br />(iV) amortization of the principal of said note; and
<br />(V) late 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 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 (St) of each payment
<br />1
<br />103908
<br />more than fifteen (13) days io 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 (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by tho Lender for ground rents, taxes and
<br />assessments or insurance premiums, as the case may be. such ex-
<br />cm. 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 />Burrower, or refundtd 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 in <ttrance premiums, as the case may be, when the
<br />same shall' became due and payable, then the Borrower shall pay
<br />to the Lender any :wtount necessary to make up the deficiency, on
<br />or before the date when payment of such gtowd rents, taxes,
<br />assessments, or insurance premiums shall be due. If at any time
<br />the Burrower shall tender to the Lender. in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness represented thereby, the Lender shall. in computing
<br />the amount of such. indebtedness, credit to the account of the Bor.
<br />rower all payments iimade under the provisions of (a) of paragraph
<br />2 hem -of which the Lender has not become obligated to pay to the
<br />Sec-n-+asy of Housing and Urban Development and any balance re-
<br />maining in the funds accumulated under the provisions of (b) 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 a0ply, at the time of the
<br />commencement of such procc%&*f. ,or at the time the property is
<br />othemise acquired. the balance then remai ling in the funds ac-
<br />cumuLated under (b) of paragraph 2 preceding, as a credit against
<br />the amount of pritxv-ipal then remaining unpaid under said note.
<br />and !butt property adjust any payments which shall have been
<br />madi . 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 />ut intpubitions, foi which ptovisloat has nit been ntasle
<br />hereinbefore, and in default thereof the Lender may pay the same;
<br />and-that the Borrower will promptly deliver the official receipts
<br />thctrerma to the Lender.
<br />S:. The Borrower will pay all tares which. may be levied upon
<br />tie Umder's interest in said real estate and improvements, and
<br />wh6-Iz may be levied upon this instrument or the debt secured:
<br />hes&y (but only to the extent that such is not prohibited by 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 />Lender. 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 />paying the whole or any portion; of the aforesaid taxes, or upon
<br />the rendering of any court decree prohibiting 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 haoe the right to give ninety days' written notice
<br />to the owner of the premises, requiring the payment of die-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 />6. That should the Burrower fail to pay any suns 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 expenditure% so
<br />Pig! gatf 6
<br />HUD- 92143DT
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