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<br />-8.8- 1614.7;"
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<br />Borrower and Lender covenant Ilnd agree "-" follows:
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<br />1. Thai Borrower wlll pay the Indebledness, as hereinbefore provld.
<br />ed. Privilege is reserved 10 )Jay Ihe debl in whole or in pari on an)' in,
<br />stallmenl due dale,
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<br />2. That, logelher wilh, and in addiliIJn 10, Ihe monthly payments
<br />of principal and inlerest payable under Ihe terms of the note securcd
<br />hereby, Ihe Borrower will pay to the Lellll<'r, on the firsl day 01 cadI
<br />monlh IInlilthe said nole is full)' paid, the lollowing sums:
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<br />(a) Amount suWdenl 10 provide the hol.ler hereol with funds 10
<br />pay the nexl mortgage insu,anl'e premium if this inslrumenl and the
<br />note secured hereby are insured, or a monlhly charge (ill 'ieu of 0
<br />mortgage i/lSurallce prrmium) if Ihey are I,eld by the Secrelal'}' of
<br />Housing and Urban Del'elopmcnl, as 101l0w5:
<br />
<br />(I) If and so long as said nole 01 e,'en dale and Ihis instrumenl
<br />are insured or .are reinsun-d under Ihc pro,'isions of Ihe Naliona)
<br />1I0using Act, an amounl suWcienl tu acculJlulate in the hands of the
<br />holder one (I) month prior 10 its due date the annual mortgage in.
<br />surance premium ill order 10 pro\'ide such holdcr with lunds 10 pay
<br />such premium to the Secrelary ul 1I0using and Urhan Oc,'c1opmcnl
<br />pursullnl to Ihe Nationalllousing ACI. as '"llendl-d, and applicable
<br />Itegulations thereunder; or
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<br />(II) If and so long as said note of e"ell d"te and this instrumenl
<br />are held by the Secrelary of Housing and Utl.lan Developm"nl, a
<br />monthly charge (in lieu of 0 mor/go":,, ill$u.onC"e premium) which shall
<br />he in an amounl equlllto om~.t\\'elClh (ItI2) uf one-half (lt2) I)t;r <...,n.
<br />IUrn of Ihe average oulslanding balant..., due on the note rom pUled
<br />, without laking intu accounl delinqu"nciCl. ItJ prl.'lla)'menls;
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<br />(b) A sum <''<Iuallo Ihe ground renls, il any, ned due, plus the
<br />premiums that will next become due IInd p,,)'OOle on policies of lire
<br />and olher hazard Insurance l'Overing Ihe properl)', plus tues and
<br />assessments nexl due on the property (all ,u ~/Imated by/he under)
<br />less all sums already paid Iherefor di"ided h)' the number of /IIonlhs
<br />to elapse before one (I) monlh prior 10 Ihe dale wl.en such ground
<br />rents, premiums, taxes and llS5CSSments will ~"Ome delinquent. sueh
<br />sums to he held by Lend"r In hust 10 pa)' ,..id ground renls.
<br />premiums. lues and spa'ial assessmenls; "nd
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<br />(c) All payments mentioned in the Iwo p,eceding subSl.'Clions of tl.is
<br />pa,agraph and all paymenls to he made ullder the note st'C:ured
<br />hereby shall be added logether, and the IIggregate amount thetl'(Jf
<br />shall he paid b)' the Borrow"r each monlh in a single pa)'ment 10 be
<br />applied by the Lender 10 Ihe following ite/lls in the o,der scl forth:
<br />
<br />(I) pre/llium charges under Ihe rolltmd of insuranr:e wilh the
<br />Secrelary of Housing and Urban De,'e1op.lJlenl, or /IIonlhl)- d.arge (i"
<br />'ieu of mortgage ir..-..ranre premium), as Iln: cast' may I",;
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<br />(II) ground rents, tues, 8S>CSSments, fire and olher hnard in-
<br />suranCE- p,emiums;
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<br />(III) inletl~t on the nolI' secured he.eLy;
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<br />(IV) amortizalion of Ihe principal of said nole; and
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<br />(V) lale charges.
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<br />An)' deficiency in the amount of such aggregate monlMy I'arment
<br />mall, unlCiS made good b)' Ihe Borrower prior to Ihe due dale of the
<br />neat such payment, ('(.Instilule an even I of default under Ihis /IIorl.
<br />gage, The I.ender ma~' collect a "late charge" not to e.1'eed four rents
<br />(.') for each dullar ($1) of each payment mOre Ihan mt<...,n (IS) da)'s
<br />in arr""rs 10 ooV"r Ihe exlr.. e.pen"" i",'oh',.,j in handlillg del imtuenl
<br />pa)'ments,
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<br />3, That if the lolal of Ihe pa)'ments made by Ihe Borrower under
<br />(b) of paragraph 2 preceding .hall cuu...! Ihe amount of I,aymellh u'.
<br />tually made by the Lender for ground rent\, taus and aucssmenl. or
<br />Insu,an,..,. premiums, as Ihe case ma)' be, ,,,ch excess, if Ihe loan is
<br />current, at Ihe option of the Bollo....er, shall he credited hy Ihe
<br />r..elldc:r on subsequent pa)'menIS 10 he made by Ihe Borrowe., or
<br />rdunded to the Borrower. H, hOlWe"er, the rnontl.ly pa)'ments rnade
<br />b)' the Ho,ro....er under lb) of paraglllph 2 p,<'Ct.-ding shall not he suffi-
<br />cient to pa)' ground lenis, IJIles ami a!il.enlllenls or insuranl'e
<br />premiums, as Ihe case ma)' he, when Ihe "'me shall I>C.'<<.Ime due and
<br />payable, then Ih.. Borrower shallpa)' 10 II." r..cllder an)' amounl
<br />~.ry 10 make up Ihe dclicirllt.'Y. on or I...fore the rlate when pa)'-
<br />ment 01 such ground r..nls, hues, .",,,,,ow,,I<. or iruur8n<'C prelllillms
<br />shall b:I rlue, If al an)' lime the (lOlrow"r ,I'alll"",I.... to Ihe I...nder.
<br />In lttuI"t.,,<<, with II." I"o,'bin", 01 Ill.. ''''''' .....lIItod I.",.."),, 11I1I1.a)',
<br />m..llt 01 Ihe ellti,e irnlcht.-dnos 'l'iU_'III,..1 thereby, II." 1....II&r d..II,
<br />
<br />In computing Ihe a mo!:, nt, of ~uch indehledn~, credit 10 the ,,,:coon""l
<br />uf the llurrower all,P~yin:cnlr,riille',ilOdcr the provisions of (a) of
<br />paragraph 2 hereof which the Lender has nol become obligated to pay
<br />10 Ihe S,'cretary of Housing and Urban Development and any balance
<br />remaining In Ihe funds accumulaled IInder the provisions of (b) of
<br />paragraph 2 hereof. If Ihcre shall he a default IIl1der any of the provi.
<br />sioru of this instrument resulling in a public sale of Ihe premises
<br />covered hereby, or if the Lender acquires the property olherwise after
<br />defaul!, the Lender shall apply, nl the lime of the l"Ommenccment of
<br />such p,oceedings, or al Ihe time Ihe property is otherwise aelluired,
<br />the balnnte then remaining in the funds accumulated under (b) of
<br />paragraph 2 preceding, as a eredil against the amounl of prillcipal
<br />Ihell remaining unpaid under said nole, alld shall properly adjust any
<br />payments which shall have been made IInder (a) of plOtagraph 2,
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<br />4. That the Borrower will pay ground tl'nls, taxes, assessments,
<br />water ratcs, and other govcrnmenlal Or municipal charges, fines, or
<br />impositions, for which provision has 1101 been llIade hereinbefore, and
<br />in default thereof Ihe Lender mar pay Ihe same; and thai the Bor.
<br />rower will prollll'lI)' ddh'cr the official rl'CCipls Iherefor to the
<br />Lender.
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<br />s. Thc Ilurrower will pay all laxes which milY he le"il...! upon the
<br />Le'lder's inleresl ill said real est ale and improvements, and which may
<br />he hwjed upon this inslrument or Ihe debl secured hereb)' (but only to
<br />the extenl Ihal sllch is not prohibiled by law and onl)' to the extent
<br />Ihal sud. will nol make this loan usurious), but excluding any income
<br />tax, Slale or Federal, imposed on Lender, and will file Ih" official
<br />receipl showing such pa)'menl with the l.ender. Upon ,'iolalion of this
<br />underlaking, or if Ihe Borrower is prohibited b)' an}' law now or
<br />he,eafter edsting from pa)'ing Ihe whole Or an)' po,tion of the
<br />aforesaid I alios , or upon the ,endering of an)' court decree prohibiliog
<br />the paymenl hy the Borrower uf allY such taxes, or if such law or
<br />dl'Crce prO\ ides Ihal an)' amounl so paid by the Burrower shall be
<br />credited 011 Ihe debt, Ihe Lende.. shall ha\'e Ihe: righl to give ninel}'
<br />dars' wrillen nolke to the owner of Ihe premises, requiting the pay.
<br />Ilwnt of the dcbt. If such no lice be gi,-en, the said debt shall become
<br />due, par"bll' and colll'CtiLle al Ihe expiration of said ninet)' Ja)'S.
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<br />6. Thai shOuld Ihe Borrower fail 10 pay an)' sum or hep an}' OO\-e--
<br />nant prm'idcd for in Ihis irnlrumenl, Ihen Ihe Lender, al its option,
<br />ma)' PllY or perform the same, and all expenditures S{) made shall be
<br />add,-d 10 the principal slim owing on the aocl\'e nole, shall be secured
<br />heleb)', and sball bear interest at the rate set forth in the said note,
<br />nnlilpai,1.
<br />
<br />1. TlI..1 Ih.. Borrower hereby assigns, transfers and sets o,oer to the
<br />Lellder, 10 he aPlllied loward Ihe payment of the nole and all sums
<br />M,'('url'(llu,rl'b)' in "ase of a default in the performance of any of Ihe
<br />Il'rlll' "nd ronditioru; ol this instrumcnt or the said nOle, all the rents.
<br />r"",,nucs and income to be derh'ed from Ihe said p,emises during such
<br />tillle as the indebledness shall remain unpaid, and Ihe Lender shall
<br />h",'e power 10 appoint any agenl or agents it ma)' desire for the pur.
<br />pose of '''pairing said ptl'lIIises and of renting Ihe same and collectillg
<br />the renl_, 'cHillies and income, anrl il llIar payout of said incomes
<br />1111 espCl1SCS of rcpairing said premises and nl'CCSSar)' collllnissions and
<br />e.pense> incurn...t in renting and mllnag;ng Ihe ume and of collecting
<br />renlals Iherefrom; Ihe balance remaining, if any, to be aJ'plied toward
<br />Ihe discharge of sairl indcbtedncss.
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<br />8. TIIlII the Borro......r will k",-'p Ihe impro\'emenls now eluting or
<br />hereafter erected on Ihe pro~rly, insured as may be required from
<br />lime 10 time by' the Lende.. against loss by fire and other haunls.
<br />easualties and oontingeneies in sueh amounts and for sucll periods Illi
<br />ma)' be rf'quirl-d 1.1)" Ihi: Lender and ",i11lla)' promptly, ....hen due,
<br />1Il1)' premiums on sue!. insurance prO\-ision for payment of which has
<br />not been mllde be.cinbefore, All insurance s.hall be carried in com.
<br />panies apprO\'ed by the Lender "nd the policies and rene....als Ihcroof
<br />shall be hdd b). the Lemler and ha,'e alladl(,.1 t111:rdo 10l0S payable
<br />c1aUSl:S ill (a\"Or of and ill form acceptahle to the Lemlcr. In e,...'nt uf
<br />lass Bonower will gin' inllnedia!e nolice by mail to the Lende" wl,o
<br />may make proof of loss if not made prompll)' h) Ilollower, al.llll'acl,
<br />insurance colllpany conrerned is hereby autho,il~-d and dht'Clcd to
<br />make payment for SIleh loss dirt'CtI}' to the Lender inst...ad of to the
<br />Bono....er "'lid Ihe l.cndt'r jointly. and the insurance J.IrOCff'ds, or any
<br />part thereof. l.IIa)' be appliNl hy IIoe Lender al ils option either to the
<br />reduction of the indebll'<lness I..'rcb)' sr...."..-d {II 10 the rrsturlllioll ur
<br />repair of II.e propert)' damagl..t. In ("wnl of for~losure of this instru.
<br />ment or olht', transfer of lille to the Illllrtgag<.'(II"OI""I)' in eatillguish.
<br />m..nt 01 the illdeblCllness Sl.'CUTl-d h,'rd.)" all I i.:"t , tille IInd inlere<t ul
<br />the Ilorrower in and to "")' iriS'.Jranl'l' I~}licil'" Ihell in IOF...., shall pass
<br />10 the pUrdlll5er or granlt..,.
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<br />9. Thai as additional and ""lIate,al st,<:u,il~' /", 110" l,ar""'''1 ollhe
<br />Ilt:l-1e doM.-c'cibt"CJ. ant! an 5.HIIlIIj; 10 hl~'\.nlC' ...Jut" untlt:r thb; iUiouulut"nl. _hC'
<br />llo,w"'e, IoereL)' ......il(l15 to Ihe Lend", ..II t....I'I'. ".....n..'.,., IOp.1tie...,
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<br />P,JgtI 2 of ~
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<br />ItU092143DT
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