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<br />mom,*" tad Leader cmetant aed agree as follows:
<br />1. That Bonower will pay the udebtedness, as hercinhefore
<br />provided. privilege is rtscmed 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 prIncipttl 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 />f0dowing stuns:
<br />(a) Atttoun, sufficient to provide the holder hereof with funds
<br />to pay thv; nee mortgage insurance premium if this instrument and
<br />the tote secured hereby art insured, or a monthly charge (in lieu
<br />of a mortgage insuran..c premium) if they are held by the
<br />Secretary of- Housing and Urban Oevclopment, as follows:
<br />(1) If and so long as said note of even date and this instru-
<br />ment are insured or are reinsur;d under the provisions of the Na-
<br />'tiottat Housing Ass, an amount sufficient to accumulate in the
<br />hands of tF'e holder one (1) month prior to its due date the annual
<br />IrAwtj4e itr %«ranee premium in order to provide such holder with
<br />fuvd ::+'p8y suvfi premium to the Sevmary of Housing and Ur-
<br />bars Ose "I t pursuant to the \arronal Housing Act, as
<br />4rd applicable Regulations thereunder; or
<br />t1l) • .f and so lo21 as said note of even dal , and this instru-
<br />ment z:e'ttrM by the Secretary of He° s*.ng and Urban Develop -
<br />rrtent, a t .W.hly charge (in lieu -of a xm—.•t2aFe insurance premium)
<br />which shat! N in an amount equal to o• re- twelfth (1) 12) of One-
<br />half (1/2) per centum of the average outstanding balance due on
<br />the note corrpured without taking into account delinquencies or
<br />prrpaymeoat;
<br />(b) A sys equal to the ground rev; &, 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 o-7 the property (all as vv:Mated by the
<br />Lender) less all sums afro paid therefor divid::dt ttn the number
<br />of months to elapse before one (1) rncn *. prior to, the date when
<br />such around rents, premiums, taxes aar,d` a.wisment." vv ell become
<br />delinquent. such sums to be held by iuiwt.-r in trust to pay said
<br />ground rents, premiums. tares and (re: ai assessments; and
<br />(c) All payments. mentioned in the tv -o preceding subsections of
<br />this paragraph and all payments tr I., - a7ade under the note
<br />secured hereby shall be added rogc!b'm..and the aggregate amount
<br />w
<br />thereof shall be paid by the Florro(.•%t:h month in a single pay-
<br />ment to be applied by t ^;: Lender to fhc following sterns in the
<br />order set forth:
<br />(1) premium :hw3 is under the contract C.)I irr;+a.raiucc with
<br />the Secretary of Housing and Urban rAne!opme- 4,...,ar rnunihly
<br />charge (in lieu of mortgage insur.incc ,: a-rmium). us :ae case may
<br />be;
<br />(1l) ground rents. taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(lilt interest on the note sc0;3,is3 l;ereby;
<br />(IV'#! aruirrtiration of the ptinc +pal of said note. and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate monthly pay -
<br />mcni shall, unless made good by the Borrower prior to the due
<br />date of the next such payment, an event of default
<br />under this mortgage. The lender may collect a "late charge" :ssi"
<br />to exceed four cents (44 far each dollar (Si) of cacti payment
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<br />89-11111,104542
<br />more than fifteat 4111 days in arrears to cover the extra expense
<br />inv olwed in handling delinquent payments.
<br />3. That if the total of the payments made by the Borrower
<br />under (h) of paragraph 2 preceding shalt exceed the amount of
<br />payments actually made by the Lender for ground rents, taxes and
<br />assesmtentu or insuranot premiums. as the case may be, such tx-
<br />eess, 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 forrower. If, however, the monthly
<br />payments.rnadc by the Borrosu under (b) of paragraph 2
<br />prevvding shall not be.suffi6erit to pay ground rents, tastes and
<br />assessrents or insurance premiums. as the case may be, when the
<br />same shail becomic due and ;sayable, then the Borrower ill 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 shalt tender to the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness repwiented 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' tv a default under any of the
<br />provisions of this instrument re&uft;_,g in a public sale of the
<br />premise, covered hereby. or if the Lender acquires the property
<br />otherwise after dcfa•.i<<. the Lender shall apply. at the time of the
<br />commencement o` sjtvhproctedings, or at the time the property is
<br />otherwise acquired, On-. balance then remaining in the funds ac-
<br />cumulated under kb.. Hof paragraph 2 preceding. as a credit against
<br />the amount of priLa ;�W then remaining unpaid under said note,
<br />and shall properly a•3�,, any payments whidt shall have been
<br />made under (a) of rx:sagraph 2.
<br />4. That the Borrower will pay gu.vi^d rents:. raves. assessments,
<br />water rates, and other govcrnmerial.or murnin4e,4 charges, furs.
<br />or imposition -,. for which provi�:c'.. !tas not I mir shade
<br />herembefore, and in default thereof the Len3si,maj' pay the same;
<br />and that the Borrower will promptly deliver the official receipts
<br />therefor to the t ender.
<br />5. rte: l rower will pay all lases whi ;h may be levied upon
<br />the Lcnder'v *.crest ! ^. said rea! 1G°;ate anJ irnprnt'ement,, and
<br />which may he ;e, 'vai. ups: n this e�,,trutnetit or the debt secured
<br />hereby (but only to t &e extent ttiNt such ix -tat prohibited by law
<br />and only to the extent that such vvtll rot make this loan usurious),
<br />but excttai ag any income tax. Siam of Federal, imposed on
<br />1 ender, and will file the official rVuLijtt showing such payment
<br />with the Lender. Upon violation`oy,ibis undertaking, or if the
<br />Ikirrower is prohibited by any law now or hereafter existing from
<br />paying the whole or sw'posuon of the aforesaid taxes, or upon
<br />:tic rcudrring of ant •c . ;t dc:;us i iohihiting the payment by the
<br />Harrower of any such :axes. or if such law or decree provides that
<br />any amount so paid. by :he Bortbwer shall he credited on the debt,
<br />the I ender shall tits.¢ t1;.: right to give nice: ;'y days' written notice
<br />as the owner of the _pnjiscai. ret4niring o r- wim..ent of the debt.
<br />If suvh notice be goe:t, the sai4 (hif:f shtu; become due, payable
<br />and :olloaiblc at the expiration irf sa:d ninety days.
<br />G. That should the Horrower fail to pay any ,urn or keep any
<br />covenant provided Ii- in thii inmuntcni, there the 1 endet, at its
<br />option, may pad or perform the same. and ail expenditures so
<br />Page 2 of 5 HUD- 9214313T
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