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<br />Illorrower sad leader coveaaet tad agree as follows:
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />Provided. Privik(te is reserved to pay the debt in whole or in part
<br />on any installment due due.
<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 scatted 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 morishly charge (in lieu
<br />Of a•nwrtgagr insurance 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 are insured•vr tit,: reinsured under the provisions of the Na-
<br />tional Housing AO, in amount sufficient to accumulate in the
<br />hands of the holder (tote (1) month. prior to its due date the annual
<br />mortgage insurance premium ifs order to provide such holder with
<br />funds to pay such premium to the Secretary of Housing and Ur-
<br />ban Development pursuant 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 - twelfth (1/12) of one-
<br />half (1 /2) per centum of the average outstanding balance due on
<br />the note computed• wt?.Ytout taking into account delinquencies or
<br />prepayments;
<br />(b) A sutn.equal.`tw'the ground rents. if any, next due, plus the
<br />premiums that• will: next become, due and payable on policies of
<br />'o a—u aiiree ii�il=& fiisurance:cm-ering the property, plus taxes
<br />and assessments ncxt due on the property (a11 as estimated by the
<br />Lender) less all sums already paid therefor divided by the number
<br />of months to elapse before one-11) month prior to the date when
<br />such ground rents. nremiumc, rates and 2-V.— s -smenn will brcomc
<br />delinquent; such sums to be held by Lender in trust to pay said
<br />ground rents, premiums , taxes and special assessments; and
<br />(c) All payrrterit:s trwrtioned in the two preceding subsections of
<br />this paragraph and!•2:I payments to be made under the note:
<br />secured hereby shall'be added together. and the aggregate amount
<br />theredUsball be p4a by the Borrower each month in a single pay-
<br />ment to be applied by the Lender to the following items in the
<br />order set forth:
<br />Q) premium charges under the contract of insurance with
<br />the Sic mtary of Housing and Urban Development, or monthly
<br />charge (in lieu of mortgage insurance premium). as the case may
<br />be;
<br />(11) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(111). interest on the note se4vred hereby;
<br />(1h amortization of the principal of said note; and
<br />(V) late charger;
<br />Any deficiency in the amount of such aggregate monthly pa).
<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 (49) for each dollar (SI) of each payment
<br />"tore than fifteen (15) days in arrears to cover the cxU•a 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 Lender 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 he
<br />cre$iW by the Lender on subsequent payments to be made by the
<br />Bor..vwcr. or befio44W to the Borrower. M. however, the monthly
<br />P•aYmcof-v, a-We the Borrower under (b). of paragraph 2
<br />prcce(�tik. it; be suf Wieui, to pay gt%,vwJ, rents. taxes and
<br />a�vc st ,�ts'ur insurance pecan :,,u. *s. as the yin may be. when the
<br />s;into s. Wl become due and. ta4.73t1e; then•. rth a Borrower shall pay
<br />to the Lender any amount up the deficiency, on
<br />or before the date when payment of such. $.. mound rents, taxes,
<br />assessments, or, fixs:trance premiums shall 1)L due. If at any time
<br />the Borrower shall tender to the Lender. in accordance with the
<br />ptunisions of the note secured hereby, full payment of the entire
<br />hVEerm dness represented thereby. the Lender shall. in computing
<br />tl* amount of stivb, indebtedness. credit to the account of the Bor-
<br />rower all paymenis.made under the provisions of (a) of paragraph
<br />2 hereof which, t)tw.lender has not become obligated to pay to the
<br />Secretary of Housing and ur'ran Development and any balance re-
<br />maining in the funds accurinAtled under the provisions of (b) of
<br />paragraph 2 hereof. If there.:4'iall be a default under any of the
<br />provisions of this instrumenk tl.Nsuhing in a public sale of the
<br />Premises covered hereby, or• if the Lender acquires the property
<br />otherwise after default, the Le:zdtir shall apply, at the time of the
<br />commencement of such probpedtitgs, or at the time the property is
<br />uth eeavise acquired. the balance then remaining in the funds ac-
<br />Luinalated under (b) of paragraph 2 preceding, as a credit against
<br />the, amount of principal then remaining unpaid under said note,
<br />and shall properly adjust any payments which shall have been
<br />made 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 />or impositions, for which provision has not been made
<br />hereinbeforc, and in default ilirtrvf dic Lcuu:r may pay the same;
<br />and that the Borrower sill promptly deliver the official receipts
<br />therefor to the Lender.
<br />S. The Borrower will pay all taxes which.may be levied upon
<br />the Lender's it>tem-st in said real estate avd'IMProvements, and
<br />which may be le?sW upon this instrumetni or the debt secured
<br />hereby (but only to the extent. that such is not prohibited by law
<br />aad'ccly to the extent that sud� will not make this loan usurious).
<br />but e.ccluding 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 taxc'<,. 6r upon
<br />the- rendering of any court decree prohibiting the payrnttrt; by the
<br />Borrower of any such taxes, or if such law or, ,ire provides that
<br />any amount so paid by the Borrower shall be cr Led on the debt,
<br />the Lender shall have the right to give nines}•, days" nrittgn notice
<br />to.the owner of the premises, requiring the payment of. the..debt.
<br />If such notice be given. tbe -said debt shall• become due. payable
<br />and-collectible at the expirafiun of said ninety days.
<br />6. That should the Itorro%cr fail to pay any sum 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 expenditures so
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<br />HUD- 92143DT
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