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<br />swMwer and I.satler coveaaat god agttie as f0sows:
<br />1. That Borrower will pay the indebtWii" , as hereinbefore
<br />provided. Privilege is reserved to pity the debt in whole ar 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 lieu
<br />of a,mortgape insuratke premium) if they are field 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 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 (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; 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 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 next due on the property (all as estimated by the
<br />Lender) less ail sums ah=dy paid inerctur diviucd by its@ iii;m::,
<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 sums to be held by Lender in trust to pay said
<br />ground rents. premiums. taxes and special assessments; and
<br />(c) Ali payments mentioned in the two preceding subsections of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added together. and the a&V<ute amount
<br />thereof shall be paid by the Borrower each montlt sir :z: single pay-
<br />ment to be applied: by the Lender to the foilfn, ;'rg. iLgm�' in the
<br />order set forth: '
<br />(1) premium charges under the contract of insut'ani a with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge tin lieu of mortgage insurance premium), as the case may
<br />be;
<br />(11) ground rents. taxes, assessrtiersi s -fire and ot!,gr hazard
<br />insurance premiums;
<br />(111) interest on the note secured- l,eigliy
<br />(1V) anrotfization of the principal of sWd note; and
<br />(M late charges.
<br />Anideftciency in the amount of such aggregate monthly, paf-
<br />merit shall. unless made good by the Borrower prior to tbi due
<br />date of the next such payment, constitute an event of default_.•:. ,..
<br />tinder this mortgage. The Lender stay collect a ")ate chatrr °' . stilt
<br />to exceed four cents (449) for each dollar ($I) of each paymenr
<br />F
<br />toll fil
<br />more than fifteen (15) days in arrears to cover the cotta expense
<br />involved in handling delinquent payments.
<br />J. 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 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 under (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 tendei 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 tb) of paragraph 2 preceding, as a credit against
<br />the amount of principal then remaining unpaid under said nods,
<br />and shall properly adjust any payments which. shall have been.
<br />rnade under (a) of paragraph 2.
<br />4. That the Borrower .ill pay ground rents, taxes. assessments,
<br />,eat: ra : =. and ot!»r.govPrnrnefflal or municipal. charm. fines.
<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 />therefor to the Lendet.
<br />5. The Borrower kill 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 tar. 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 sb paid by the Borrower shall be credited on the debt,
<br />the Lender shall have the right to give ninety days' «ritten notice
<br />to the owner of the premises, requiring the payment of the debt.
<br />f:f such notice be given, the said debt shall become due, payable
<br />and collectible. at the expiration of said ninety days.
<br />6. That silo "uld the Borrower 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
<br />Page 2 of 5 HUD- 92143DT
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