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<br />Mmower and Lender covenant and agree as follows,
<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 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 />assesmients next due on the property (all 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 />rtntst, premiums. taxes and assessments wilt become deliquent. such
<br />slams to be held by Lender in !east to pay said ground rents`
<br />premiums. taxes and special assessments; and
<br />(b) All payments mentioned in the preoedutg. subsection ef this
<br />paragraph and all payments to be made under the note sm".
<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 tem taxm assessments, fire and: other hazard insur,
<br />ancevprcmium
<br />OR interest on the note secured hereby;
<br />(111) amortization of the principal of said. note; and
<br />(IV) late charges.
<br />A t.c t en <.h..e•pa ra t 1 navm�nt
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<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 collect a "late charge" not to exceed four,
<br />ants (4t) for each dollar (31) of each payment more than fifteen
<br />(15) 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 Borrower under
<br />(a) of paragraph 2 preceding shall exceed.the ainount of payments
<br />actually made by the Lender for ground r&L%:Wcs and assessments
<br />or insurance premiums, as the. vv a may be; Witch 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 madle -bxx the Borrower. or
<br />refunded to tL^e-& irower. If, however, the monthly payments made
<br />by Abe Borroacr under (a) of paragraph 2 pre ceding shall not be
<br />suf dent to pay ground rents, taxes and assessments or insurance
<br />pmmiums, as the Case may be, when the same shall become date and
<br />payable, then the Borrower shall pay to the teener any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment 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 at7c aunt of the Borrower 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 public sale of the premises covered hereby.
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<br />-89-40.3-924.-
<br />or if the Lender acquires the property otherwise after default, the
<br />txntkr .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, taxes, 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 caly to the
<br />extent that such 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 undertakin& 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 credited obi the debt, the Lender shall have the
<br />right to give ninety days' written notice to the owner of the premises,
<br />requiring the payment 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 should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this instrument, then the lender, at its
<br />vptivn, r8aj p.} 8r Pilo n- tl:e w::ae, and rn expend iit�f� so teuutr
<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 paymcttt•of the note and all sums
<br />secured hereby in caw 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'baderived from the said premises during
<br />such time as the rrdebeedhm 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 renting the same and
<br />collecting the rents. revenues and it cRmj , and it may pay out of said
<br />incomes all expenses of mpnfrirtgsau, premises and nomssary
<br />commissions and expenses kiu:uired iivreiting and managing the
<br />same and of collecting rentals therefrom; the balance remaining, if
<br />any. to be applied toward the dischargtr 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 loss 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 prerrsivats on such insurance. provision for payment of which
<br />has not been made. berdabefore. All insurance shall. be carried in
<br />companies approved by the Lender and the policrea and renewals
<br />thereof shall be held by the Lender and have attached thereto loss
<br />payable clauses in favor of and in form:ar.cepttabk to the Leader. In
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