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<br />10'734:6
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<br />ment more than fifteen (15) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
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<br />Tbe Mortgagor in order more full}' to protect tbe security of
<br />tbls Mortgage, agrees:
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<br />L That he will pay the indebtedness, as hereinbefore provided.
<br />Privilege is re~erved 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:
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<br />(a) Amount sufficient to provide the holder 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 De\'elopment, as follows:
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<br />(1) If and SO long as said note of even date and this in-
<br />strument are insured or are reinsured under the provisions of the
<br />National Housing Act, an amount sufficient to accumulate in the
<br />hands of the holder one (I) month prior to its due date the an-
<br />nual mortgage insurance premium in order to pro\;de such holder
<br />with funds to pay such premium to the Secretary of Housing and
<br />Urban Development pursuant to the National Housing Act, as .
<br />amended, and applicable Regulations thereunder; or
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<br />(II) If and so long as said note of e.'en date and this in-
<br />strument are held by the Secretary of Housing and Urban
<br />Oe\'elopment, a monthly charge (in lieu of a mortgage insurance
<br />premium) which shall be in an amount equal to one-twdflh
<br />(1112) of one-half (1/2) per centum of the a\'erage outstanding
<br />balance due on the note computed lA;thout taking into aocount
<br />delinquencies or proepayments;
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<br />(b) A sum equal to the ground rents, if any, next due, plus the
<br />premiums that will next become 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 by the Mortgagee) less all sums already paid
<br />therefor divided by the numb<< of months to elapse before one
<br />(I) month prior to the date when such ground rents, premiums,
<br />taxes and assessments lA;1I become delinquent, such $UIUS 10 be
<br />held by Mortgagee in trust to pay said ground rents, premiums,
<br />taxes and special assessments; and
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<br />(c) All payments mentioned in the two preading subsa.'1ions
<br />of this paragraph and all payments to be made under the nOle
<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 />pa)-ment to be applied by the Mortgagee to the foUolAing items in
<br />the order set forth:
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<br />(I) premium charges under the contract of insurance lAith
<br />the Secretary of Housing and Urban Oe\'eIopment, or monthI}'
<br />charge (in lieu of mortgage insurance premium), as the case ma}'
<br />be;
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<br />(II) ground tents, taxes, assessments, fire and other haz.ard
<br />insurance premiums:
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<br />(111) interest on the note secured hereby;
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<br />(IV) amortization of the principal of said note; and
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<br />(V) late charges.
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<br />Any deficiency in the amount of such aggregate monthly pay.
<br />ment sl!all, unless made good by the Mortgagor prior to the due
<br />date of the next such payment, constitute an e'~ent of default
<br />under this mortgage. The Mortgagee may collect a "late charg':"
<br />nOl to exceed four cents (~) for each dollar (SI) of each pa)'_
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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 beoome due and payable,
<br />then the Mortgagor shall pay to the Mortgagee any amount
<br />n~ to make up Ute deficiency, on or before the date when
<br />pa}-ment of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Mortgagor sba1ltender
<br />to the Mortgagee, in accordance "ith the provisions of the note
<br />secured hereby, fun pa}-ment of the entire indebtedness
<br />represented 1hffeby, 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~'isions of (a) paragraph 2
<br />hereof which the Mortgagee has not become obligated to pa)' to
<br />the Secretary of Housing and Urban Oe\-elopment and any
<br />balance remaining in the funds accumulated under the provisions
<br />of (b) of paragraph 2 hereof. If there sba1l be a default under
<br />any of the pro\isions of this mortgage resulting in a pub\H: sale
<br />of the premises CO\'em! heRby, or if the Mortgagee acquires the
<br />property otherwise after default, the Mortgagee shall apply, at
<br />tbe time of the C01DIIleIKlement of such proceedings, or at the
<br />time the property is otherwise acquired, the balance then mIlam.
<br />ing in the funds aocumulated under (b) of paragraph 2 prettding,
<br />as a credit against the amount of principal then remaining unpaid
<br />under said note, and shall properly adjust any pa}-ments which
<br />shall ba\'e been made under (a) of paragraph 2.
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<br />4. That the MOItgagor \loin pay ground rents, taxes,
<br />assesmlCDts, water rates, and other gO\-cmmenlal or municipal
<br />charges, fines, or impositions, for \lohich pro\'ision has not been
<br />made herrinbefore, and in default thereof the Mortgagee may
<br />pay the same; and that the Mortgagor \loill promptl}' delh-er the
<br />omcial rettipts therefor to tbe Mortgagee.
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<br />S. The Mortgagor will pay all taxes which may be le~-ied upon
<br />the Mortgagee's inte<<$l in said real estate and impro\'ements,
<br />and which may be Inied upon this mortgage 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 \loill not male this loan
<br />usurious), but e.'lduding any inrome tax, State or FcderaI, im-
<br />posed on Mortgagee, and \lo;U fIle the offki.al rec>eipt sbo\loing
<br />such pa}-ment lAith the Mortgagee. Upon \iolation of this under-
<br />taking, or if the Mortgagor is prohibited b}' any Ia\lo' now or
<br />hereafter existing from pa}in& the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree pro-
<br />hibiting the pa}-ment by the Mongagor of an}' sud! taxes, or if
<br />such law or decree pro\;des that an}' amount so paid by the
<br />~Iortgagor shall be credited on the mortgage debt, the Mortgagee
<br />shall ha\~e the right to gi\'e ninety da}'S' ",Titlen notice to the
<br />owner of the mortgaged premises, req\liring the pa}'IDmt of the
<br />mortgage debt. If such nOlice be gi.-en, the said debt shall
<br />be\.-ome due, payable and cotle..'1ible at the eApiration of said
<br />ninety days.
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<br />6, That should the Mottgagor fail to pa)' an}' sum or keep any
<br />co'.enant pro.-ided for in this mortgage, then the Mortgagee, at
<br />its option, may payor perform the same, and all expenditures so
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