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<br />(qR.,,~ 0029.0
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<br />Bono..-rr and under covenant and agr~ as follows:
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<br />more Ihan raneen (15) days in arrears to cover It>.: extra expense
<br />involved in handling delinquent payments.
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<br />I. Thai Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debl in whole or in part
<br />on any installment due date.
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<br />2. That, together with. and in addition to, Ihe monthly
<br />payments of principal and interest payable under the terms of the
<br />nOle secured hereby, the Borrower "ill pay 10 Ihe Lender, on the
<br />first day of each month until the said note is fully paid, the
<br />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 Ihis instrument and
<br />the note secured hereby are insured. or a monthly charge (in lieu
<br />of a.mortgage insurance premium) ii 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 even date and Ihis inslru-
<br />ment are insured or are reinsured under the provisions of the Na-
<br />tional Housing Act, an amount sufficient 10 accumulate in the
<br />hands of the holder one (I) month prior 10 its due date Ihe annual
<br />mortgage insurance premium in ordeT to provide such holder wilh
<br />funds 10 pay such premium to the Secrelary of Housing and Ur-
<br />ban Development pursuant to ,he 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 even date and this instru-
<br />ment are held by the Secretary of Housing and Urban Develop-
<br />ment. a monthly charge (in lieu of a mortgage insurance premium)
<br />which shall be in an amount equal to one-twelfth (1/12) of one-
<br />half (112) per centum of the average outstanding balance due on
<br />the note computed without taking intO account delinquencies or
<br />prepayments;
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<br />(b) A sum equal to the ground rents, if any, next due, plus tM
<br />premiums that will next become due and payable on policies of
<br />fire and other hazard insurance co\"Cring the property, plus taxes
<br />and assessments next due on the property (all as estimated by the
<br />Lender) less all sums already paid therefor divided by the number
<br />of months to elapse before one (I) month prior to the date when
<br />such around rents, prcmiwns, taxes and assessmenlS will become
<br />delinquent, such sums to be held by Lender in trust to pay said
<br />ground rents, premiums, taxes and special assessments; and
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<br />(c) All payments mentioned in the twO preceding subsections of
<br />tbis paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggregate amounl
<br />thereof shall be paid by the Borrower each month in a single pay-
<br />ment to be applied by the Lender to the following items in the
<br />order set forth:
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<br />(I) premium charles under the contract of insurance with
<br />the Secretary of Housi". and Urban Development, or monthly
<br />chuge (in lieu of mortgage insurance premium). as the case may
<br />be;
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<br />(II) ground renls, taxes, assessments, fue and other hazard
<br />insurance premiums;
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<br />(111) interest on the note secured hereby;
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<br />(IV) amortization of the prin.:ipal of said nOle; 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 shall, unless made good by the Borrower prior 10 the due
<br />date of the next such payment, constitute an e\'ent of default
<br />under this mortgage. 1bc lender mOl)" collect a "'ate charge" not
<br />to exceed four cenlS (~) for each dollar ($ I) of each payment
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<br />3. That if Ihe total of the payments made by the Borrower
<br />under (b) of paragraph 2 preceding shall exceed Ihe amounl of
<br />payments actually made by the lender for ground renlS, 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 Burrower, shall be
<br />credited by the Lender on subsequent payments II) be made by the
<br />Borrower, or refunded 10 the Borrower. If, ho"t\er, the monlhly
<br />payments made by Ihe Borrower under (b) of paragraph 2
<br />preceding shall nOI be sufficient to pay ground rents, taxes and
<br />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 renlS, taxes,
<br />assessments, or insurance premiums shall be dUe. If at any time
<br />the Borrower shall lender to the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness represented Ihereby, the Lender shall, in computing
<br />the amount of such indebtedness, credit to the Ol"ount of the Bor-
<br />rower all payments made under the provisions of (a) of paragraph
<br />2 hereof which the Lender has no! become obligated to pay to the
<br />Secretary of Housing and Urban Development and any balance re.
<br />maining in the funds accumulated under the provisions of (b) of
<br />paragraph 2 hereof. If there shall be a default under any of the
<br />provisions of this instrument resulting in a public sale of the
<br />premises covered hrreby, or if the Lender acquires the propeny
<br />otherwise after default, the Lender shall apply, at the time of the
<br />commencement of such proceedings, or at the time Ihe propeny is
<br />otherwise acquired, the balance then remaining in the funds ac-
<br />cumulated under (b) of paragraph 2 preceding, as a credit against
<br />the amount of principal then remaining unpaid under said note,
<br />and shall properly adjust any payments which shall have been
<br />made undeT (a) of paragraph 2.
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<br />4. That the Borrower will pay ground rents, ta.'l.es, assessments,
<br />wateT rates, and other governmental or municipal charges, fines,
<br />or impositions, for which provision has not bttn made
<br />heTeinbefore. and in default thereof the Lender may pay the same;
<br />and that tM Borrower wiD promptly deliver the official receipts
<br />therefor to the lender,
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<br />S. The Borrower will pay all taxes which may be levied upon
<br />the lender's interest in said real estate and improvements, and
<br />which may be levied upon this instrument or the debt secured
<br />heTeby (but emly to the extent that such is not prohibited by law
<br />and only to the extent that such will not make this loan usurious).
<br />but excluding any income tax. State or Federal, imposed on
<br />Lender, and will file the official receipt showing weh payment
<br />with the Lender. Upon violation of this undertaking, or if the
<br />Borrower is prohibited by any law now or hereafter existing from
<br />paying the whole or any portion of the aforesaid raxes, or upon
<br />the renderin. of any coun decrcc prohibiting the payment by the
<br />BorroweT of any such taxes, or if such law or de..-rcc provides that
<br />any amount so paid by the Borrower shall be credited on the debt,
<br />the LendeT shall have the right to give ninety dOl~'s' wrillen 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 da~s.
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<br />6. That should the Borrower fail to pay anlt sum or keep any
<br />covenant provided for in this instrument. then the Lender, at its
<br />option, may payor perform the sam~. and all e\penditures so
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<br />HUD-921430T
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