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<br />dorrowet and lender eovenanl and ague as faMaws:
<br />I. That Borrower win 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 sutras:
<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 lieu
<br />of a.mortSW imurancie premium) if they are held by the
<br />Secretary of Housing and Urban Development. as follows:
<br />(1) if and so long as said note of even date and this instru-
<br />ment we insured or are reinsured under the provisions of the Na-
<br />tional Housing Act. an amount sufficient to accumulate in the
<br />hands of the holder one (I) 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 Houting.and Ur-
<br />ban Development pursuant to the National Housing Art. as
<br />amended, and applicable Regulations thereunder;.or
<br />(11) if and so long as said note of e+ :ett, &-tQ lead this instnt-
<br />matt are held by the Secretary of Housing ,;:d V'iban Develop-
<br />ment, a monthly charge (in lieu of a morr": insurance premium)
<br />which shall be in an amount equal to one - twelfth (1/ 12) 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 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 taxes
<br />and assessments text due on the property faY,as estimated by the
<br />Lender) less all sums already paid therefor swirled by the nuuYbct
<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 stuns to be held by Lender lib trust to pay said
<br />ground rents, premiums, taxes and special wAsessments: and
<br />(c) All payments mentioned: in the two preceding subsections of
<br />this pgagraph and all payn=:s to, be made under the note
<br />secured hereby shall be added together, and the aggregate amount
<br />thereof shall be (staid by the Borrower eadi month in a single pay-
<br />ment to be ap¢li'ed'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 Development, or monthly
<br />charge (in 6eu of mortgage insurance premium), as the case may
<br />be;
<br />(11) grournA'.rents, taxes, assessments. fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note secured hereby;
<br />(IV) amortization of the principal of said note; and
<br />(M late charges.
<br />Any deficiency in the arn:cuttc .of'such aggregate monthly: pay-
<br />ment shall, unless made glad" by. ti.lie Borrower prior to the due
<br />date of the next such payment. constitute an event of default
<br />under this mortgage. The Lender may collw a ")ate charge" not
<br />to exceed four ants (49) for each dollar ($I) of each payment
<br />,
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<br />mare than fifteen (IS) 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 (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Leader 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 ureter (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 />same 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 payment 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 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 made under the provisions of (a) of paragraph
<br />2 hereof which the Lender has not become obligated to pay to the
<br />Secretary 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 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 pr-cceding, as a credit against
<br />the amount of principal then remaining unpaid under said note.
<br />and shall properly adjust any payments which shall base been
<br />made under (a) of paragraph 2.
<br />a. That the Borrower will pay ground rents, taxes. assessments,
<br />:atei iaFCa, :is yJ :—.A:terta lLS municiral 'harges Inec,
<br />or impositions. for which provision has not been made
<br />hereinbefore, and in default thereof the Lender may pay the same;
<br />and that the Borrower will promptly deliver the official receipts
<br />thcrefor to the Lcrkdee.
<br />S. The Borrower µill pay all taxes which may be levied upon .
<br />the Lender's interest in said real estate and improvements. and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (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 prohiliidng the payment by the
<br />Borrower of•any such taxes. or if such law or decree provides that
<br />any atraum sn paid by the Borrower sh:Sl be credited on the debt,
<br />the Leader shall have the right to give ninety days' written notice
<br />to: the owner of the premises. requiring the payment of the debt.
<br />fF such nafjce be given, dur said debt shall become d6e, payable
<br />and collmi:ibf at the enhration of said ninety days:
<br />6. That should the Borrower fail to pay any sum or keep any,,
<br />covenant provided for its "ibis instrument, then the. Lender. at its
<br />9ption. may pay or peforml -the same. and all expenditures so
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