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Son over and I.trtder eovea ttt ttttd agree as tollov! sa
<br />1. That Borrower will pay the indebtedness, as hereinbefore
<br />petrvitled. Privilege is resmrd to pay the debt in whole or in part
<br />on anj installment due date.
<br />2. Thai, together with. and in addition to, the monthly
<br />pa)v"lt of principal and interest payable under the terms of the
<br />note secured tereby, the Borrower will pay to the Lender. on the
<br />Pint day of arch month until the said note is fully paid, the
<br />following slims:
<br />(a) Amount sufficient to provide the holder hereof with funds
<br />to pay the next mortgage insurance pre4i i6 if this instrument and
<br />the note secured hereby are insured, on at.t:',`titir * charge (in lieu
<br />al p mortgage insurance p: ernium) if the ,,-,are held 5y; the
<br />Secretary of Housing and Urban Development, as follows:
<br />(1) If and so long as said nose of icyca date and this instru
<br />ment are hmiu ird or are reinsured urdw. dke provisions of the Na.
<br />tional Houdng Act, an account suffis;:rnri.10 accumulate in the
<br />hands of the holder one ¢t) month prior to its due date the annual
<br />mortgage insurance prerniusti in order.:o provide such holder with
<br />funds to pay such premium to tt,e Sect;4�Ary of Housing and Ur-
<br />ban Development pursuant to the tumid Housing Act. as
<br />amended, and applicable Itegutitions , S,Ydr under; or
<br />(1l) if and so lone M. �cd note of even date and this instru-
<br />ment are held by the Sv'eiML—y of liousing and Urban Develop-
<br />ment, a monthly charge jr.7 lieu of a mortgage inmiacri premium)
<br />which shall be in an amount equal to ("Ju iweifth W,12) of one-
<br />half (1/2) per c entum of the average cOd-WAi tg balance due on
<br />the note computed withwx taking into 'i►count.delits ucncies or
<br />prepayments;
<br />(b) A sum equal to tt 'Ap=,nd rents, if any, next due. plus the
<br />premiums that will ne.m.1hatome due azil. Cwyable en policies of
<br />fire and other hazard insu rance coverizjt tits property, plus tares
<br />aril assessments next du: on the propsti 'j (all as efumared Ln the
<br />Leader) less all sums alteady paid therefor divided b ' the number
<br />of months to elapse before. one (1) month prior to On date when
<br />such ground rents. ; --itiums, taxes and assessments w.11 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) All payments mentioned in the two preceding subsections of
<br />this paragraph and all Mr ants to be made under the note
<br />secured hereby shall be a4W 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 +bb.t•.linllowing items in the
<br />order set forth:
<br />(1) premium charges under the contract of !,app ance with
<br />the Secretary of Housing and Urban Development +m: ,Monthly
<br />charge (ir. 1%
<br />�..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 Qvi r 0c secured hereby;
<br />(IV) amortization of the primn,,ju` :of said note; and
<br />(V) late charges. .
<br />more than fifteen (15) days in arrears to cover the extra ext
<br />involved in handling delinquent payments.
<br />3. That if the total of the payments made bg the r3oirmiet
<br />tinder (b) of paragraph 2 preceding shall exceed t`);e dtnount of
<br />pa }mcnts artually made by the tender for ground it-M. taxes and
<br />assessments or insurance premiums, as the case may fx. such ex-
<br />cess. if the loan is current, at the option of the )1et� ,;*0. shall be
<br />credited by the Lender on subsequent payments w be made Icy; the
<br />Borrower, or refunded to the Borrower lf, hewever, the tllaill tip:
<br />payments made by the Borrower under (b) Cr pa!xagap}t "
<br />preceding shall not be sufficient to pay ground mitts, taxes and
<br />assesurients or insurance premiums. as the cars mall ire. when the
<br />same shall become due and payable, then the Borrower shall pay.
<br />to the Lender any amount necessary to maker 4#'stir deficiency, on
<br />or before the date when payment of such.0)rhi ii"Mts, taxes,
<br />assessments. or insurance premiums shall Per: this Jf, at any time
<br />the Borrower shall tender to ilia L.ends7, i� :#+'fiiWii ce with the
<br />Provisions of the note secured hereby!, fulf j;ayti t*..-iQf the entire
<br />indebtedness represented thereby, the Lender sir. k, u computing
<br />the amount. of such indebtedness. t.�redlL W the'accirunt of the Bor-
<br />rower a)1'pti-)'ments made under the ppidslons of (a) of paragraph
<br />2 hereof :,4, -Nat the Lender has nar become obligated io pay to the
<br />Secretary of Housing.,rnd Urban. Development and any balance re-
<br />maining in the funds`bsatmulautd under the provisions of (b) of
<br />paragraph 2 hereof. Iti' there shall. he a default under any of the
<br />provisions of this instrument resu(tjn)v in a public sale of the
<br />premises covered hereby, or if tlW.U4flt acquires the property
<br />otherwise after default, the tender sh-A apply, at the time of the
<br />commencement of Such. preceedings. or at the, time the property i.
<br />othenviLe acquired. the balance then remaining in the funds ac-
<br />cumulated under (b) of paragraph•2 preceding. as a credit agaost
<br />the amdttnt'of principal then a.mgitting unpaid under said note; :
<br />and shail,pr[speri} +.adjust any payments which shall have beer-
<br />made under (a) of. paragraph. 2.
<br />4. That the Ilum'stvar.will!pay ground rents, taxes, assessments.
<br />water rates, and other Qap,,rrnmental or municipal charges, fines,
<br />or impositions, for which; pig vision has not been made
<br />hereinbefore, and in default thereirihr Lender may pay the same;
<br />and that the Borrower will prompny'deliver the official receipts
<br />therefor to the Lender.
<br />S. 'rho Borrower will pay all taxes which may be,•t ;vied upon
<br />the Ltnde,r's interest in said real estate and improvements, anti,.
<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 lay
<br />and only to the extent that such will not make this loan usurious).
<br />but excluo;.ag any income tax, State .or Federal. imposed on
<br />Lender. a °tut will file the official ; tiiq t. showing such paymerr
<br />with the lender. Upon violation of iL s•underiaking, or if the
<br />Borrower is prohibited by any law nc;w or hereafter existing from
<br />paying the whole or any portion of the aforesaid;'t;m.ls, or upon
<br />the rendering of any court decree prohibiting therttvittent by the
<br />Borrower of any such taxes, or if such law or det:r" provides that
<br />any amount so paid by the Borrower shalt be credited on the debt,
<br />itte I ender shall have the right to give ninety days' written nw ce
<br />to the owner of the premises, requiring the payment of the debt.
<br />If such notice be given, the said debt shall become due. payable
<br />and collectible at the expiration of said ninety days.
<br />Any deficiency in the atntsunt of such aggreg2:as minithly pay- 6. That should the Borrower fail to pay any sum or keep. a'ny
<br />ment shall. unless trade' free by the Borrower psi,et' to the due covenant provided for in this irstr•urnent, then the Lender, at't:i
<br />date of me next such payt'aeni, constit:ae an evert 4f.defau)t option, may pay or perform the sztjte, and all expenditures so
<br />under t1:is r�iimgage. The Lender nta 'u�liect a '•late charge" nut
<br />to exceed four ants (dd), for each dollar (Sl) of each payment '
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<br />Page 2 of 5 HUD- 921430T
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