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<br />The Mortgagor in order more full)' to proted tbe ~curity of
<br />tbls Mortgqe. agrees:
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<br />1. That he will pay the inde::lIedness, as hereinbefore provided.
<br />Privilege is reserved to pay the debt in whole or in pari on any
<br />installment due date.
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<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 Mortgagor will pay to the Mortgagee,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<br />
<br />(a) Amount sufficient to pro\'ide the bolder hereof with funds
<br />to pay the next mortgage insurance premium if this instrument
<br />and the note secured hereby are insured, or a monthly charge (in
<br />lieu of a mortgage insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development, as follows:
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<br />(I) If and so long as said note of e\'en date and this in-
<br />strument are insured or are reinsured under the provuions of the
<br />National Housing Act, an amount sufficient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the an-
<br />nual mortgage insurance premium in order to provide such holder
<br />\\lth funds to pay such premium 10 the Secretar)' of Housing and
<br />Urban Development pursuant to the National Housing Act, as
<br />amended, and applicable Regulations thereunder; or
<br />
<br />(11) If and so long as said note of even date and this in-
<br />strument are held b}' the Secretary of Housing and Urban
<br />Development. a monthly charge (in lieu of a mortgage insuranre
<br />premium) which shall be in an amount equal to one-twelfth
<br />(1/12) of one-half (112) per centum of the a\'erage outstanding
<br />balance due on the note computed wlthout taking into account
<br />delinquencies or prepayments;
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<br />(b) A sum equal to the ground rents. if any, ne.'\t due, plus the
<br />premiums that \\111 next bc<:ome due and payable on policies of
<br />fire and other hazard insurance CO\'ering the mortgaged property.
<br />plus taxes and assessments next due on the mortgaged property
<br />(all as estimated b)' .he Mortgaged less all sums already paid
<br />therefor di\lded by the number of months to elapse before one
<br />(1) month prior to the date when such ground rents, premiums,
<br />taxes and assessments \\111 become delinquent, such sums to be
<br />held by Mortgagee in trust to pa}' said ground rents, premiums,
<br />taxes and special assessments; and
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<br />(c) All pa}ments mentioned in the two prC\.~ing subsections
<br />of 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 Mortgagor each month in a single
<br />payment to be applied by the Mortgagee to the followlng items in
<br />the order set forth:
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<br />(I) premium charg,es under the contcact of insurance \\lth
<br />the Secretary of Housing and Urban Oe\'elopment, or monthly
<br />charge (in lieu of mortgage insuranre premium), as the ca.<e may
<br />be;
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<br />(11) ground rents, ta'l(es, assessments, fire and othet hazard
<br />insurance premiums;
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<br />(llI) interest on the note secured hereby;
<br />
<br />(IV) amortization of the principal of said note; and
<br />
<br />(V) late charges.
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<br />Any deficiency in the amount of such aggregate monthly pay-
<br />ment shall, unless made good b)' the Mortgagor prior to the due
<br />date of the next suchpaYmmt.,constitute an event of default
<br />under this mortgage. The Mortgagee may collect a "late charge"
<br />not to exceed four cents (4C) for each dollar ($1) of each pay'
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<br />ment more than fifteen (IS) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
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<br />3. That if the total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Mortgagee for ground rents, taxes
<br />and assessments or insurance premiums. as the case may be. such
<br />excess, if the loan is current, at the option of the Mortgagor.
<br />shall be credited by the Mortgagee on subsequent payments to be
<br />made by the Mortgagor. or refunded to the Mortgagor. If.
<br />however, the monthly payments made by the Mortgagor under
<br />(b) of paragraph 2 preceding shall not be sufficient to pay
<br />ground rents, taxes and assessments or insurance premiums. as
<br />the case may be, when the same shall become due and payable,
<br />then the Mortgagor shall pay to the Mortgagee any amount
<br />necessary to make up the deficiency. on or before the date when
<br />payment of such ground rents, taxes. assessments. or insurance
<br />premiums shall be due. If at any time the Mortgagor shall tender
<br />to the Mortgagee. in accordance \\ith the provisions of the note
<br />secured hereby, full payment of the entire indebtedness
<br />represented thereby. the Mortgagee shall, in computing the
<br />amount of such indebtedness, credit to the account of the Mort-
<br />gagor all payments made under the pro~lsions of (a) plU'diT8ph 2
<br />hereof which the Mortgagee has not become obligated to pay to
<br />the Secretary of Housing and Urban Development and any
<br />balance remaining in the funds accumulated under the provisions
<br />of (b) of paragraph 2 hereof, If there shall be a default under
<br />any of the pro\isions of this mortgage resulting in a public sale
<br />of the premises covered hereby, or if the Mortgagee acquires the
<br />property otheT\\ise after default. the Mortgagee shall appl)'. at
<br />the time of the commencement of such proceedings. or at the
<br />time the propert)' is othCn\ise acquired, the balance then remain-
<br />ing in the funds aC\."UlDulated under (b) of paragraph 2 pm:cding,
<br />as a credit against tbe amount of principal then remaining unpaid
<br />under said note, and shall properl)' adjust an)' pa)'ttlCDts which
<br />shall have been made under (a) of paragraph 2,
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<br />4. That the Mortgagor \\i\1 pay ground rents, ta'(es.
<br />assessments. water rates, and otber governmental or municipal
<br />charges, fines, or impositions, for which pro\ision has not been
<br />made hereinbefore, and in default thereof the Mortgagee ma)'
<br />pay the same; and that the Mortgagor \\i\1 promptl)' deli\~r the
<br />official re..-eipts therefor to the Mortgagee,
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<br />5. The Mortgagor \\i\1 pa)' all ta'(es which ma)' be le~'ied upon
<br />the Mortgagee's interest in said real estate and improvements.
<br />and which ma)' be Ie\'ied upon this mortgage or the debt se..-ured
<br />hereby (but only to the e.'(\enl that such is not prohibit((\ by la\\'
<br />and only to tbe e.'\tent that such \\i\1 not make this loan
<br />usurious), but excluding any income tax. State or Federal. im-
<br />posed on Mortgagee, and \\i\1 ftle tbe official receipt showing
<br />such pa)-ment \\ith the Mortgagee, Upon \iolation of this under-
<br />taking, or if the Mortgagor is prohibited by an)' law now or
<br />hereafter e.Usting from pa}1ng the whole or any portion of the
<br />aforesaid ta'(cs, or upon the Tendering of an)' court decree pro-
<br />hibiting the payment b)' the Mortgagor of an)' such ta.'(es, or if
<br />such law or decree pro\ides that an)' amount so paid by the
<br />Mortgagor shall be credited on the mortgage debt, the Mortgagee
<br />shall ha\'e the right to gh'e ninety days' wrillen notice to the
<br />owner of the mortgaged premises. requiring the parment of the
<br />mortgage debt. If such notice be gh'en, the said debt shall
<br />bC\.-ome due, p8)'able and col!e\."1ible at the expiration of said
<br />ninety da)'s.
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<br />6. That should the Mortgagor fail to pay any sum or keep an)'
<br />co\'enant pro\ided for in thu mortgage. then the Mortgagee. at
<br />its option. may payor perform the same, and all expenditures so
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