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<br />Borrower and Lender covenant and agree as follows:
<br />1. That Borrower will,psy the indebtedness, as herdribefere
<br />provided. Privilege is reserved to pay the debt in whole or in
<br />part 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
<br />the note secured hereby, the Borrower will pair to the Lender;
<br />on the lust day of each month until the said note is fully paid,
<br />the folldwing sums:
<br />, (a) A sum equal to the ground rents. if any, next due, plus
<br />the premiums that will next become due and payable on policies
<br />of fire and other hazard insurance covering the property, plus
<br />taxes and assessments next dtte on the property tall as esrirnatej
<br />by the Lender) less all sums already paid therefor divided by the
<br />number of months to elapse before one (1) month prior to the
<br />date when such ground rents, premiums. taxes and assessments
<br />will become delinquent, such sums to be held by Lender in trust
<br />to pay said ground rents, premiums, taxes and special
<br />assessments; and
<br />(b) All payments mentlowd in the preceding subsection of
<br />this paragraph and all paytrants to be made under the note
<br />secured hereby shall be add4.d together. and the aggregate
<br />amount thereof shall be paid -by the Borrower each month in a
<br />single payment to be applied•by the Lender to the following
<br />items in the order set forthi.
<br />! (1) ground rents. taxes, assessments. fire and other hazard
<br />insurance premiums;
<br />(II) interest on the note secured hereby;
<br />(Ill) amortization of the principal -of said note; and,
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by the Borrower prior. to the
<br />due date of the next such payment, constitute an event,of
<br />default under this mortgage. The Lender may cailm -i a "late
<br />charge" not to exceed four cents (11c) for each dollar ($l) of
<br />each payment more than fifteen (15) days in anmm to cover the
<br />extra expense involved in handling delinqutaitipEments.
<br />3. That if the total of the payments made by the Borrower
<br />under (ai) cf paragraph 2 preceding, shall exceed the amount of
<br />payments actually made by the Le+rder for ground rents, taxt,%
<br />and assessments or insurance premiums, as the case may be,
<br />such excess, if the loan is current, at the option of the
<br />Borrower, shall be credited by the Lender on subsequent
<br />payments to be made by the Bormww r, or refunded to the
<br />Borrower: if, however, the monthh+ payments made by the
<br />Borrow--y under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents. taxes and assesses its or
<br />insurance premiums, as the case may be, when the same shall
<br />become due and payable, then the Borrower shall pay to the
<br />Lender any amount necessary to make up the deficiency, on r r
<br />before th-e date when payment of Luca ground rents, taxes,
<br />assessments, or insurance premiums shall be due.. If at ary time
<br />the Borrower shall tender to the Lender, in accordarce w`h the
<br />provisions of the not:; wured hereby, fult pa:)n— t of vii. 4ndre
<br />indebtedness represented thereby, tIte Lender shall, in canal UC-.ig
<br />the amount of such indebtedness, credit to the account of tht
<br />Borrower acy balance remaining In the funds accumulated under
<br />the pravit3bris of (a) of paragraph 2 hereof. If there shall be a
<br />default ;:ader any of the provisions of this instrument resulting
<br />in a pabt:c sale of the premises covered hereby. or if the Lender
<br />. 89. 104986
<br />acquires the property otherwise after default, the Lender shalt
<br />apply, at the time of the commencement of such proceedings, or
<br />at the time the property is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, as a cmds.. against the amount of principal then
<br />remaining unpaid under said note.
<br />4. That the Borrower wiU,:p�y; ground rents, taxes,
<br />assessments, water rates, ar�i•othtr governmental or municipal
<br />charges, fines, or imposidrn.9t;foa;which provision has not been
<br />made hereinbefore, and it:: d.f?.r!:�thereof the Lender may pay
<br />the same. and tbat.tha Bosroveer will promptly deliver the
<br />official receipts tbitrefor ttr :thr.. Lender.
<br />5. The Borrower,wiB'pay ad'taxes which may be levied upon
<br />the Lender's intsreat'dii 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
<br />usurious), but excluding any income tax, State or Feder,
<br />imposed on Lender. and will file the official receipt showing
<br />such payment with the Lender, Upon violation of this
<br />undertaking, or if the Borrower is pro ibitted by any law now or
<br />hereafter existing from paying the whole cr any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such tares, or
<br />if such law or decree provides that any amount so paid: ty the
<br />Borrower shall be credited on the debt, the Lender shaft :lave
<br />the right to give ninety days' written notice to the owner of the
<br />premises, requiring the payment of the debt. If such notice be
<br />given, the said debt shall become due, payable and coax rible at
<br />the expiration of said ninety dais.
<br />6. That should 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 />made shall be added to the principal sum owing on the said
<br />note. shall be secured hereby, and shall bear interest at the rate
<br />set forth in the said note, until paid.
<br />7.. That the Borrower hereby assigns, transfers and sets over
<br />to the Lender, to be applied toward the payment of the note
<br />and all sums secured hereby in case of a default in the
<br />performance of any of the terms and conditions of this
<br />instrument or the said note, all the rents, revenues and income
<br />to be derived from the said premises during such time as the
<br />indebtedness shall remain unpaid, and the Lender shall have
<br />power to appoint any agent or agents it may desire for the
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rents, revenues and income, and it may pay out of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and expenses incurred in renting and
<br />managing the sane and of collecting rentals therefrom; the
<br />balance remaining, if any, to be applied toward the discharge of
<br />said indebtedness.
<br />8. That the Borrower will li(t$* the improvements now
<br />existing or hereafter erected on the proper:}, insured as may be
<br />required from time to time by the Lender against loss by fire
<br />and other hazards, casualties zasd contingencies in such amounts
<br />and for such periods as may h_- required by the Lender ar:d will
<br />pity Promptly, when due, any. lremiums on such insurance,
<br />pro-vision for payment of which has not been made
<br />hereinbefore. Afl ::.urance shall be carried in companies
<br />approved by the "I ader and the policies and renewals thereof
<br />shall be held by tLte Lender aid have attached thereto loss
<br />payab ?e clauses in favor of aLd in form acceptable to the
<br />Page 2 of 5 HUD- 92143OT -1
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