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<br />Borrower. and Leader cotenant and agree as (""lows:
<br />1. TL-it 110trower will pay the ind; btedness. as Nrereinbefore
<br />provided• privikge is reserved to pay the debt in whole or in. part
<br />on ary ivmallment due date -
<br />2. That. together with, and in addition to, the monthly
<br />payments of principal and - interest payable umicr the ica is 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 W. 1111s instrument and
<br />the note secured hereby are insured. or a monthly charge (in lieu
<br />of a.mCrtgage insurance premirlm) if they are held by the
<br />Secretary of Housing and Urban Ivelopment, as follows:
<br />(I)' If and so long as said note of even date and this instru-
<br />ment are insured or arc.rein_sured under the provisions of the Na-
<br />tional Housing Act.;.m amount sufficient to arcumulare in tt(e
<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 tong as said note of even date and this instru-
<br />ment are held by the Secretary of Housing and Urban Devel_a
<br />ment. a monthly charge fin lieu of a mortgage insurance prerniu:ir)
<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 compured without taking into account delinquencies or
<br />prepayments;
<br />(b) A E.,= t equal to the SrOw' -d casts, if any. next due, plu!, the
<br />premiums that will next become due and pavabte on policies of
<br />fire and other 11azarci Insurance covering the property, plus taxes
<br />and assessments. ncrc -,sue on the property fall as estimated by the
<br />Lender) less all surds already paid therefor divided by the number
<br />of months to elapse before one (i) month prior to the date .then
<br />such ground rents, premiums. taxes and assessments will become
<br />delinquent, such sums to he held by Lender tit trust to pay said
<br />ground rents, premiums. taxes and special assessments: and
<br />(c) All 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 aggregate amount
<br />thereof shall be paid by the Borrower each month in a single pay-
<br />ment to be applied by the Lender to the following items in the
<br />older set forth:
<br />(1) premium charges under the contract of insurance, with
<br />the Strtraty of Housing and Urban Development. or mcrnibW
<br />charge'lin lieu of mortgage insurance premium), as the case rtlay
<br />be: •
<br />(11) ground T.tnts:, taxes. assessments. fire and other harard
<br />insurance premiums''
<br />(111) interest on the note sr,:urcd hereby:
<br />(IV) amort'uation of the principal of said note: and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate montlllrr pay-
<br />ment shall. unless made good by the Borrower prior i0 flit title
<br />date of the next such payment, constitute an event of del 'ac,,' t
<br />under this rnortgagc:, The Lender may collect a "late charge" not
<br />to exceed four cenn l•ti) for each dollar (Sl) of each payment
<br />89-- 104622
<br />more than fifteen (I5) 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 Y
<br />under (b) of paragraph 2 preceding shall exomd the amount of
<br />payments actually made by the Lender for ground rents. taxes and
<br />assessments or insurance premiums, as the case may W. stick ek-
<br />cesz. if the to :r, is cturimz`. �t 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 suffteient to pay ground rents, taxes and
<br />assessments or insurance premiums, as the case may W. when the
<br />same shall become due and payable, then the Borrower shall pay
<br />to the Lender any amount necm�ary to make up the deficiency; on
<br />or before the date. when payment of such ground rents, taxes.
<br />assessments, or insum, nee premiums shall bir..Que if at any time
<br />the Borrower 41411 ttasder to the Lender. in 6wordanc m wii h the
<br />provi #ip Is of thc:*c secured hereby, full payment of ilia entire
<br />indellmd Less reprt wacd thereby, the Lender shall, in: caailitil�tc ;
<br />the amoun4 of suit ;:.indebtedness, credit to tite accaunf -(Yf tlt>v:
<br />rower all paymeirks:,*de under the provisions of (a) of
<br />2 hereof which-* slander has not become obligated to. p� ') the
<br />Sceretary of Hat>sirg and urban Development and any Ri Ilce re-
<br />maining in the funds accumulued under the provisions of it Sj of
<br />p.!r41aph 2 hereof. if there shall be a default under any. -Of the
<br />Fr., ;r ;sins of thi4 instrument resulting in a public sate of the
<br />coreredfirreby, or if the Lender•:tSliz3res the property
<br />ott�rr ise aftrs; cf,.ult. the Lender shall applr;.-4the time of the
<br />such proceedings. or at the. i?ii1�..iiir gwperty is
<br />acquired. the balance then remaining ii; ffti, Iu ;;xl4; ac-
<br />t�,r lye :d ur_,der. (b) of paragraph 2 preceding. �c..a +'gip d L;amst
<br />n�i�cipal then remaining unpaid um r,:� 4 note,
<br />a.n :i w `• j'v ., adjust any payments which shall have been .-
<br />try{ ?a,.itJ' ,a) of paragraph 2.
<br />a•, -Riat the Borrower will pay. round rents, taxes. µt. 4 -:m inents. t t
<br />water rates, and other govrrttn rental m mtmicipal charges, fines.
<br />or imposition%. for which provision has nue I.mm made
<br />hcrembefore, and in default thereof the lender may pay ft same:
<br />and :hat the Borrower will promptly deliver the official receipts
<br />therefor to the Lender.
<br />5. The Borrower will pay all taxes which may be levied upon
<br />the Lender's interest in said real estate and improvements, and
<br />which may be leticd upon this instrument or the debt secured
<br />hereby (but only to the extent that such is not prohibited by law
<br />ais�S a +tly to the extent that such will not make this loan warious).,
<br />bia' 6:cluding any income tax, State or Federal, imposedl ot1_,
<br />Lea,fer, and will file the official receipt shutting such pa,'-.iwnt
<br />with the Lender. Upon violation of this witicrTaking, or if the
<br />Borrower is prohibited by any law now or Fo- eafter existing from
<br />pay,,'tag the whole or any portion of the aforesaid taxo, r:r upon
<br />the rendering of any court decree prohibiting tite paynistitt by the
<br />Bor-:IWer of any such taxes, or if such law or decree'4ti.vl�jes that
<br />any amount w paid by the Borrower shall be credited ,:.c the debt.
<br />the Lender shall hate the right to give ninety days' written notice
<br />It) the owner of the ptcrnises, requiring the payment of the, debt,
<br />If such notice be given, the said debt shall become du:„ 1'61Yable
<br />and collectible at the expiratattt of said ninety days.
<br />6. That should the Barrowcr fail to pay aeiy sum or keep any
<br />covenant provided for in this instrument, rhea• the lender. at its
<br />option, may pay or perform the same. and all expendirs:es so
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