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<br />Borrower and !.ender covenant and agree as Wows:
<br />1. That Borrower will pay the indebtedness, as hercinbeforc
<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 under the terms of the note secured
<br />hereby, the Borrower 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 the
<br />Premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (ail as estimated by the Lender)
<br />less, all sums already paid therefor divided by the number of months
<br />to elapse before one (1) month prior to the date when such ground
<br />rents, premiutns,,raAcs and assessmeots will b.ewme deliquent, such
<br />sums to beheld lra Ilmider in trust•tp.pay said ground rents,
<br />premiums Mites anti special asses=er is; and
<br />(b) AJO payments mentioned in, 6c preceding subsection of this
<br />paragraph and all payments to be made under the note secured
<br />hereby'shall be added together, and the aggregate amount thereof
<br />shall be .paid by the Borrower each month in a single payment to be
<br />applied! by the Lender to the following items in the order set forth:
<br />(1) ground rents, taxes, assessments, fire and other hazard insur-
<br />ance premiums;
<br />(11) interest on the mte secured: hereby;
<br />(111) amortization of the principal. irf said note; and
<br />(IV) late charges.,
<br />Aist deficiency im the amount of such aggregate monthly payment
<br />shall. unless. made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default under this
<br />mortgage The Lender may rnliect a ,late ^tsE•g°•• -,_: too ez_e d facer
<br />ants (0) for each dollar (S 11) of each paymeru. more than fifteen
<br />(15) days in arrears to cover the extra expense i:nwQlved in handling
<br />delinquent payments.
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the vv.ount of payments
<br />actually nude by the Lender for ground renm taxies and assessments
<br />or insurance premiums, as the case may be, suc-la excess, if the loan is
<br />current, at the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower. or
<br />refutndsd to the Borrower. If, however, the monthly payments made
<br />by the Borrower under (a) of paragraph 2 priming shall not be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums, as the case may be, when the same shall become due and
<br />payable. then the Borrower shall pay to the Lender any amount
<br />necessary to make up the deficiency. on or before the date when
<br />paymrcat of such ground rents, taxes, assessments. or insurance
<br />premiums shall be due. If at any time the Borrower shall tender to
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby,
<br />the lender shall, in computing the amount of such indebtedness,
<br />credit to the account of the Borrowwr any balance remaining in the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereof.
<br />If there shall be a default under any of the provisions of this
<br />instrument resulting in a pubic sale of the premises covered hereby.
<br />I
<br />or it the l.t:nder acquires the properly otherwise after default, the
<br />Lender .hall 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, taxers, assessments,
<br />water rates, and other governmental or municipal charges, fines, 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 />5. 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 such will not make this loan usurious), but excluding any
<br />income tax. State or Federal, imposed on Lander, 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 existiatg 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 oL any such taxes, or if
<br />such law or de.M. -V provides that any amom so paid by the
<br />Borrower shatk be. credited on: tbq debt, the I ender shall have the
<br />right to give ninety days' writilm notice t6-ft owner ortliepremises,
<br />1`"t sag the payment of the debt. If such notice be given, . the said
<br />debt shall becotrte due, payable and collectrKe.st the expiration of
<br />said ninety days.
<br />6. That should the Borrower fail to pay any sum or keep any
<br />Cnvertmi! provided for i thds.inar4mcm, then tuc i ceder, ai its
<br />option, may pay or perform the same. and all expenditures so made
<br />shall be added to the principal sum owing an, 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 ever to the
<br />Lend,', to be applied toward the payment of the note and all sums
<br />secured hereby, iii case of a default in the perfOrriance of any of the
<br />terms and condrtians of this instrument or the.%% 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 power to appoint any agent or agents it may desire for the
<br />purpose of repairing said premises and of rearing the same 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 and expenses incurred in renting and managing the
<br />same and of collecting rentals therefrom; the balance remaining, if
<br />any, to be applied toward the discharge of said indebtedness.
<br />8, 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 foss by fire and other hazards.
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by the Lender and will pay promptly, when due.
<br />any premiums on such insurance, provision for payment of which
<br />has not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the Lender and the policies and renewals
<br />thereof shall be held by the Lender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. In
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