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<br />!Borrower and lender covenant and agree as folfbws:
<br />I. That Borrower will pay the indebtedness, as hereinbe)orc
<br />provided. Privilege is reserved to pay the debt in whole or in pan on
<br />any installment due date.
<br />2. That, together with, and in addition to, the monthly payments
<br />of 1xincipal 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, nnxtdue, plus the
<br />premiums that will next become due and payable on policies of fire
<br />and other hoard insurance covering the property. plus taxes and
<br />ataessments next due on the property (ofl at estimated by dw Lender)
<br />le» all sums already paid therefor divided by the number of months
<br />to elope before one.(1,) month prior to the date wben such ground.
<br />rents, premiums, taxes clod assessments will becottic deliquent. such,
<br />sums to be held by Lerner in trust to pay said grvmd rents,
<br />premiums, taxes and special assessments; and
<br />(b) Alt p4ytneni Intentioned in the preceding subsection of this
<br />parag *nd,al l payments to be made under tht cote secured
<br />hereby shalt be added together, and the aggregate. amount thereof
<br />shall be paid by the Borrower each month in a si%le 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 irtsur-
<br />ance premiums;
<br />(11) interest on the note secured hereby; .
<br />(111),amortir:ation of the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate monthly payment
<br />sh*i1, - lets'rna. -re :am— by the Borrower Prior - the due date of the
<br />neat such paynratt, constitute an event of default under this
<br />mortgage. The Lender may collect a 'late charge" not to exceed four
<br />cents (49) for each dollar ($1) 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 @v. ibe Borrower ceder
<br />(a) of pu!�graph 2 preceding shall excel: the a=unt of paymen,v
<br />actually made by the Lender for ground rent% taamand assessments
<br />or insurance premiums, as the case may be, such; ev=ss, 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 />refunded to the Borrower. if, however, the monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding 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 />necessatry 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 d.. the note secured
<br />hereby, full payment of the entire indebtedness eepresented thereby,
<br />the Leader shall, in computing the amouar df<s ich indebtedness,
<br />credit to the account of the Borrower arty 6ttince 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 />imstrukient resulting in a public sale of the premises covered hereby,
<br />or if the Lender acquires the property otherwise after dcfaull, the
<br />Lender shall apply, at the time of the commencement of such
<br />prcx:ee Imp, or at the time the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 prrceding, 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 chUges, fifes, 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 ohlN to the
<br />extent that such will not make this loan usurious), but excl ading any
<br />income tax, State or Federal,' kinpxstd on Under; and will fife the
<br />official receipt showi4 such payment with tk Lender. Upon
<br />violation of this ctrtdertaking, or if the !)urrt wer is prohibited by any
<br />law now or hereafter existing from pay(ng the whole or amt 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 on 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 ar4 collectible at the expkawfl 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 tender, at its
<br />option, may pay or perform the same, and all expenditures so made
<br />shall be added to the principal suds 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 payment of the note and all sums
<br />secured hereby in lase of a default in the peifeemance of any of the
<br />terms and conditions of this instrument or the said note, all the rents,
<br />revenues and incotite 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 repairiM said premises and of renting 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 tbrr T. from; the balance remaining, if
<br />any, to be applied toward the Wiarge of said indebtedness.
<br />8. That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property, insured as rray be required from
<br />time to time by the Lender against loss by fire and other hazards,
<br />casualties and contingencies im such amounts and for such periods as
<br />may be required by the Lert&r, and will pay promptly, when due.
<br />any premiums on such ifturaaue, provision for payment of which
<br />has not been made hereinbeforc All insurance shall be carried in
<br />companies approved by the tcm kr 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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