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<br />89- 405007
<br />Qottower aad )Louder covenant and agree as tawws:
<br />I. That Borrower will pay the indebtedness. as herchibefute
<br />Provided. Privilege is reserved 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 principal and interest payable under the terms of the
<br />note secured hereby, the Borrower will pay to the Lender. on the
<br />rust 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 if this instrument
<br />the note secured hereby are insured, or a monthly charge (in lieu
<br />Of a mortgage insurartee premium) if they are held by the
<br />Secretary of Housing and Urban Development. as follows:
<br />(1) If and so long as said note of even date and this instru.
<br />ment are insured or are reinsured under the provisions of the Na-
<br />tional Housing Act, an amount sufficient to accumulate in the
<br />hands of the holder one (1) mo&ix prior to its due date the annual
<br />mortpie insutanix premium n. 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 Na.ional Housing Act, as
<br />amended. and applicable Regulations thereunder. or
<br />(11) If and •sd long as said note of even date and this instru-
<br />ment are held by the Secretary of Housing and Urbann.Dgveiop-
<br />ment. a monthly charge (in lieu of a mortgage insuraE'U Premium) ,
<br />which shall be imait antrum equal to one - twelfth (1/12) of one-
<br />half (1/2) per cer.�3im-,ti' the average outsta=,wing balance due on
<br />the note computct '4 I'llout taking into account delinquencies or
<br />Prepayments;
<br />(b) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will. matt become due and payable on policies of
<br />fire and other hautei insurance covering the property, plus rates
<br />and assessments cti'sa due on the property (all as estimated br rlte •-4. That the Borrower will pay ground rents, takes. assessments,
<br />Lender) less all suits already paid therefor divided by the nurrlber water rates, and other governmental or rrrwnL-ipal charges, fines„
<br />of months to elapse before one (1) month prior to the date ashen or impositions, for which provision has no; been made. .
<br />such ground rents, premiums. taxes and assessments will become ye<einbefore. and in default thereof the Lender ma) pity tp ;: same;
<br />delinquent. such sums to be held by Lender i.7 trust to pay said :tnd. that the Borrower will promptly deliver the ofticj,&nA:;ipts
<br />ground rents, premitttn;, taxes and special asssesstnents; and i1q.nefor to the Lender.
<br />(c) All payments avonuioaed in the two preceding subsections of
<br />this Paragraph and a.1 Mme h as be made under the note; 5• The Borrower will pay all taxes which may be levied upon
<br />securest hereby shall ":e addei fdVvllher. and the aggregatg. i1m•aunt the Lender's interest in said real estate and improvemcrts. and
<br />theme!' •shall be plid by the Borrower each month in a sdobl.'e pay- which may be levied upon this instrument or the debt .uvu ed
<br />ment to be applied by the Lender to the fol!owing items :r. the hereby (but only to the extent that such is not Prohibited .by law
<br />order set forth: and only to the extent that such will not make this loan, e-surious).
<br />but excluding any income tax, State or Federal. impj!t on
<br />Lender. and will file the official receipt sRwwfng such i�;3 on nt
<br />with the Lender. Upon violation of this umdmaking. tti- if the
<br />BerrOwer is prohibited by any law now or hereafter ctif5thln from
<br />paying the whole or any puritan of the aforesaid taxer,. ,;r upon
<br />the rendering of any court decree prohibiting the payment by the
<br />Borrower of any such taxes, or if such law or decree provides that
<br />any amount so paid by the Borrower shall be credited on the debt.
<br />the Lender shall have the right to give ninety days' wriven notice
<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 />more than fifteen (iS) days in arrears to cover the extra expense
<br />involved in handling delinquent payments.
<br />3. That if the total of the payment:, ,trade by the Borrower
<br />ufw'rr (b) of paragraph 2 Preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents, taxes and
<br />assessments or insurance premiums, as the case may be, such ex-
<br />cess. 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 Borrower- If. however, the monthly
<br />Payments made by the Borrower under (b) of paragraph 2
<br />Preceding a;tall not be sufficient to pay ground rents, taxes and
<br />and assessments or insurance premiums. as the case may be, when.the
<br />same shall become due and payable. then the Borrower shall 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, taxm.
<br />assessments, or insurance premiums shall'be due. If at any time
<br />the Borrower shall tender to the Lender, in accordance stirit the
<br />Provisions of the note secured hereby, full payment of the e:ttito
<br />ittdeb °_edness represented thereby, the Lender shall, in computing •
<br />the amount of such indebtedness, credit to the amount of the Bor
<br />rower all payments made under the provisions of (a) of p&1109411.
<br />2 hereof wh:Ch the Lender has not become obligated to Pay to the
<br />SQSetary of Housing and Urban Development and any balance re-
<br />=hilffig in the funds accumulated under the provisions of(b) of
<br />raragraph 2 hereof. If there shall be a default under any•ofirlie .
<br />rr,,visions of this instrument resulting in a Public sale of, the
<br />r.._mises covered hereby, or if the Lender acquires the property
<br />.4.4herwise after default. the Lender shall Appiy, at the time of the
<br />;.u—nmencement of such pmm:clings. or at the time tiro property is
<br />otherwise acquired, the W-utor then remaining in the f ids ac-
<br />cumulated under (b) of para#zph 2 preceding, as a credit again e.,
<br />the amount of principal thez.rtntaining unpaid under said note, `
<br />and shall properly adjust any: payments w"hielt• shall lW3'C been
<br />mime under (a) of paragraph 2.
<br />(1) premium charges under the contract of insur:mek with
<br />the Se retary,of Housing and Urban Development. or rlilnthly
<br />charge (in lieu Of 1M.-Tigage insurance premiurn),..as rile ::� may
<br />be;
<br />""round rents, taxes, assessments. fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note secured hereby;
<br />(IV) amortivalfa ;n of the principal of said note; and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate monthly pay-
<br />ment shall, unless made good by the Borrower prior to the due
<br />date of the next such payment. constitute an event of default
<br />under this mortgage. The Lender may collect a "laic charge" itot
<br />to exceed four cents (44) for each dollar (SI) of each payment
<br />b. That should the Borrowwer fail to pay any sum or keep any
<br />covenant pro%ided for in tills instrument. then the Lender, at its
<br />option, may pay or Perform the same. and all expenditures ,o
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<br />page 2 of 5 HUD- 921430T
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