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<br />88~t0131 0
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<br />Borrower and Lender covenant und agree as (0110\....5:
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<br />I. That Borrower will pay the indebtedncss, as hereinbeFore provid-
<br />ed. Privilege is reserved to pay the deht ill whole or ill part on any in-
<br />stallment due date,
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<br />2, That, tJgether with, and in addition tu, the munthly payments
<br />of principal and interest payable under the terms of the nute secured
<br />hereby, the Borrower will pay to the Lender, on the first day of each
<br />month until the said nute is fully paid, the fullowing sums:
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<br />(a) Amount sufficient to pruvide the hulder hereof with funds to
<br />pay the next mortgage insurance premium if this instrument and the
<br />note secured hereby are insured, or !l monthly charge (in lieu of a
<br />morlgo/{e il/sufance premium) if they arc held by the SL'Cretary of
<br />Housing and Urban Development, as follow>:
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<br />(I) If and so long as said note of eveu date and this instrument
<br />are insured or arc reinsured under the provISions of the National
<br />Housing Act, an amount sufficient to acculllulate in the hands of the
<br />holder one (I) month prior to its due date the annual mortgage in,
<br />surance premium in order to provide such lloldcr with funds to pay
<br />such premium to the Secretary of Housing and Urban Development
<br />pursuant to the National 1I0using Act, as amended, and applicable
<br />Regulations thereunder; or
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<br />(II) If and so long as said n"te of even date and this instrument
<br />are held by the Secretary of /lousing and Urban Development, a
<br />monthly charge (in lieu of a mor!gal{e insurance premium) which shall
<br />be in an amount equal to one. twelfth (lil2) of one,half (1/2) per cen-
<br />tum of the average outstanding balance due on the note computed
<br />without taking into account delinquenci~ Of prepaymcI1ts;
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<br />(b) A sum equal to the ground rents, if an}', next due, plus the
<br />premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the pruperty, plus taxes and
<br />assessments next due on the pruperty (~" as eslimated by the Lender)
<br />les; all sums already paid therelor dividL>d by the number of months
<br />to elapse hefore one (I) month prior to the date when such ground
<br />rents, premiums, taxes and assessments will become delinquent, such
<br />sums to be held by Lender in trust to pay said ground rents,
<br />premiums. taxes and special assessments; and
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<br />(e) All payments mentioned in the two IJrL'Cc>ding subsL'Ctions of this
<br />paragraph and all payments to be made uuder th~ note sL'Cured
<br />hereby shall be added together, and the ugl(regate alllount thereoF
<br />shall be paid by the Borrower "aell month III a single pu}'ment to be
<br />applied by the Lender to the following ill:n" in the order ,et forth:
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<br />(I) premium chargl"S under the c.:onlruct of insurance \....ith the
<br />Secretary DC Housing and Urban Development, or 111011(111)' (.'''urge (in
<br />lieu oj mortgage insurance pft-mil",,). a~ lite cusc may he;
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<br />(II) ground rents, taxe~. as~csslJlcnh. fire and other hazard in.
<br />surance premiums;
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<br />(III) interest on the note secured hercby;
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<br />(IV) amortizatiun of the principal of ~aid note; and
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<br />(V) late charges.
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<br />Any deficiency in the amount of sueh aggregate monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default under this mort,
<br />gage, The Lender may collect a "late charge" not to exceed four cents
<br />(40) for each dollar ($1) of each payment mure than fifteen (15) days
<br />in arrears to cover the extra expense involved in handling delinquent
<br />payments.
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<br />3. That if the total of the payments made by the Borrower under
<br />(b) of paragraph 2 prec<<ling shall exceed the amount of payments ac-
<br />tually made by the Lender for ground rents, taxes and assessments or
<br />insurance premiums, as the case may be, sHch excess. if the loan is
<br />current, at the option of the Horrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Horrower, or
<br />refunded 10 the Borrower. If, however, the monthly payments made
<br />by the Borrower under (b) of paragraph 2 preceding shall not be suffi.
<br />cient to pay ground rents, la:xes and assessments or insurance
<br />premiums, !IS the case ma}' be, when the same shall be<.'ome due and
<br />payable, then the Horrower ,hall pa}' to the Lender an)" amount
<br />necessary to make up the deficIency, on or hefore the date when pay.
<br />meRt oi such ground rcnts, taxcs. asscssmcllts, or insurance premium!.
<br />,hall he due. II at IIny time the Borrower ,I..ill tender to Ihe Lender.
<br />in accurdallce with the provisions uf the Ilule sf'curN] hcrdl)'. lull puy.
<br />ment of the' cntire ind(~b!l'dness rt'prcscnt~-J thereby, the Ll'udel ~h...II,
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<br />In computing the amount of slIch indehtedness, credit to the account
<br />of the Borrowcr all paymcnts made under Ihe provisions of (a) of
<br />paragraph 2 hereof which the Lender has not become obligated to pay
<br />to the Secretary of Housing and Urban Development and any balance
<br />remaining in the funds accumulated under the provisions of (b) of
<br />paragraph 2 hereof. If there ,hall he a deFault under any of the provi-
<br />sions of lhis instrument resulting in n public sale of the premises
<br />covered hereby, or if the L~nder acquires the property otherwise after
<br />default, the Lender shall apply, lit the time of the commencement of
<br />such proceedings, or at the time the property is otherwise acquired,
<br />the balance then remaining in the funds accumulated under (b) of
<br />paragraph 2 preceding, as a credil against the amuunt of principal
<br />then remaining unpaid under said note, and shall properly adjust any
<br />payments which shall have been made under (a) of paragraph 2.
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<br />4. That the Borrower will pay ground rents, taxes, assessments,
<br />water rates, and other governmental ur municipal chargcs. fines, or
<br />impositions, tur which provision has not been made hereinbefore. and
<br />in default thewof the Lender may pay the same; and that the Bor-
<br />rower will promptly deliver the official receipts therefor to the
<br />Lender.
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<br />5. The Borrower will pay all taxes which lIlay be levied upon the
<br />Lender's interest ;n said real estate and improvements, and which may
<br />be levied upon this instrument or the debt secured hereby (but onl)' to
<br />the extent that such is not prohibited by law and only to the extent
<br />that such will not make this loan usurious). but excluding any income
<br />tax, State or Federal, imposed on Lender, and will file the official
<br />receipt showing such payment witb the Lender. Upon violation of this
<br />undertaking, or if the Borrower is prohibited hy any law now or
<br />hereafter existing from pa)"ing the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree prohibiting
<br />the payment by the llorrower of an)" such taxes, or if such loW or
<br />decree provides that an)" amount so paid b}' the llorrower shall be
<br />credited un the debt, the Lender shall have the right to give ninety
<br />days wrillen notice to the owner of the premise.;, requiring the pay-
<br />ment of the debt. If such notice be gh'en, the said debt shall become
<br />due, payable and collectIble at the expiration of said ninety days.
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<br />6. That should the Borrower fail lJ pa} any sum or keep an)' cove-
<br />nant provided for in this instrument, then the Lender, at its option,
<br />may payor perform the same, and all expenditures so made shall be
<br />added to the principal sum owing on the above note, shall be secured
<br />hereby, and shall bear interest at the rate set forth in the said note,
<br />until paid.
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<br />7. That th" Borrower hereby assign.<, transfers and sets O\'er to the
<br />Lender, to be applied toward the parrnent of the note and all sums
<br />secured hereb)' in case of a default in the performance of an)' of the
<br />terms and L"Onditions of this instrument or the said note, all the rents,
<br />re\'enuc.s and incumt' to be derived from the said premises during such
<br />time as the indebtc>dness ,hall remain unpaid, and the Lender shall
<br />have power to appoint any agent or agents it roa)' desire for the pur.
<br />pose of repairing said premises and of renting the same and collecting
<br />the rents. revenues and income, and it may pal' out of said incolnes
<br />all expenses of repairing said premises and necessary commissions and
<br />expenses incurred in renting and managing the same and of collecting
<br />rentals therefrom; the balance remaining, jf any, to be applied toward
<br />the discharge of said indebtedness.
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<br />M, That the Borrower will keep the improvements now existing or
<br />hereafter erected on the propert}', insured as may be required from
<br />time to time br the Lender against loss by fjre and other hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be lequin>d by the Lender and will pay promptly, when due,
<br />an)' premiums on such insurance provision faT payment of which has
<br />not been made hereinbefore. All insurance shall be carried in com,
<br />panies approved hy the Lender and the policies and renewals therwf
<br />shall be held h)' the Lender and have attached thereto loss payable
<br />clauses in favor 01 and in form acceptable to the Lender. In event of
<br />loss Borrower will gi,'e immc>diate notice hy mail to the Lender, who
<br />may make prool 01 loss if not made promptly hy Borrower, and each
<br />insurance company concerned is herehy authorized and directed to
<br />make parment for such loss directly to the Lender instead of to the
<br />Borrower and the Lender jointly. and the insurance proCt..'<..-ds. or any
<br />part thefl."Of, ma}' be applied hy the Lender at its option either to the
<br />reduction of the indebtedness hereby secured or to the restoration or
<br />repair of the property damaged. In event of foreHosure of this instrll.
<br />ment or other transfer of title to the mortgaged property in extinguish-
<br />ment 01 the indebtedness securcd hereby, all right, title and interest of
<br />the Burrower in and to nny insuranee policies then in (on'C shall palU
<br />to the purchaser or grantt..(:'.
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<br />!J 'I'h,lt as additional and mllatnal 'ecurity lor tl", paYlllent 01 the
<br />noh' de~l'liI)l'J, and nil !-IIII1S to het:olTlt' dill" under this inslnlllH'ul. the
<br />BorrfJ\\'l'f hl'rdJY assigns 10 the J.t'IIJl'1 ull prohh, H'\.'l'IItIt~. royalll~.
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