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<br />88-101632
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<br />The Mortgagor in order more full)' to protect the sl'curil)' of
<br />thill Mortgage, agrees:
<br />
<br />I. ThaI he will pay the indebtedness, as herclIlb('forc plll\ Idcd
<br />Pril'ilege is reserved to pay the debt in wholr or III pan on am
<br />installment due date.
<br />
<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable under the terms of Ihe
<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 provide the holder hereof .....ith funds
<br />to pay the next mortgage insurance premium if this ins:rumem
<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 follo.....s:
<br />
<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 prO\isions of the
<br />National Housing Act, an amoum sufficient [0 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 provide such holder
<br />.....ith funds to pay such premium to the Secretary of Housing and
<br />Urban Development pursuant lO the National Housing Act, as
<br />amended. and applicable Regu!ations there!.Jnder; or
<br />
<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 />Development, a monthly charge (in lieu of a mortgage insurance
<br />premium) which shall be in an amount equal to one-twelfth
<br />(1/12) of one-half (1/2) per centum of the average outstanding
<br />balance due on the note computed without taking into account
<br />delinquencies or prepayments:
<br />
<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 insurcrnce co\-ering the mortgaged property,
<br />plus taxes and assessments next due on the mortgaged property
<br />(all as esrimated by rhe ,\fortgag~) less all sums already paid
<br />therefor divided by the number of months to elapse before one
<br />(I) month prior to the date when such ground rents. premiums.
<br />taxes and assessments .....ill become delinquent. such sums to be
<br />held by Mortgagee in trust to pay said ground rents. premiums.
<br />taxes and special assessments; and
<br />
<br />(c) All payments mentioned in the two preceding subsections
<br />of this paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggrt'gate amount
<br />thereof shall be paid by the Mortgagor each month in a single
<br />payment to be applied by the Mortgagee to the following items in
<br />the order set forth:
<br />
<br />(I) premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban De....elopment. or monthly
<br />charge (in Jj(':u of mortgage insurance premium). as the case may
<br />be;
<br />
<br />(II) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums:
<br />
<br />(Ill) interest on the note secured hereby;
<br />
<br />(IV) amonization of the prinCipal of saId note: and
<br />
<br />(V) late charges.
<br />
<br />Any deficienc)' in the amount of such aggregate monthly pay-
<br />ment shall, unless made good by the Mortgagor prior to the due
<br />date of the next such payment. constitute an event of default
<br />under this mortgage. The Mortgagee may collect a "late charge"
<br />not to exceed four cents (44:) for each dollar ($!) of each pay-
<br />
<br />meill more than fi fteen (15) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
<br />
<br />3 TIm if the total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 pre<:eding 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 />lIlade br the Mortgagor, or refunded to the Mortgagor. If,
<br />howe\'er. the monthly payments made by the Mortgagor under
<br />(0) of paragraph 2 preceding shall not be ~ufficient 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 />pa)ment of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Mortgagor shall tender
<br />to the Mor!gagee, in accordance with 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 provisions of (a) paragraph 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 provisions of this mortgage resulting in a public sale
<br />of the premises covered hereby. or if the Mortgagee acquires the
<br />property otherwise after default, the Mortgagee shall apply, at
<br />the time of the commencement of such proceedings, or at the
<br />time the property is otherwise acqUired, the balance then remain-
<br />mg in the funds accumulated under (b) of paragraph 2 preceding,
<br />as a credit against the amount of principal lhen remaining unpaid
<br />under said nOle, and shall properly adjust any payments which
<br />shall have been made under la) of paragraph 2.
<br />
<br />4. That the Mortgagor will pay ground rents, taxes,
<br />assessments, water rates. and other governmental or municipal
<br />charges. fines, or Impositions, for which provision has not been
<br />made hereinbefore, and in default thereof the Mortgagee may
<br />pay the same; and that the Mortgagor will promptly deliver the
<br />official receipts therefor to the Mortgagee.
<br />
<br />5. The Mortgagor will pay all taxes which may be levied upon
<br />the Mortgagee's interest in said rea] estate and improvements,
<br />and which may be levied upon this mortgage or the debt secured
<br />hereby (but onh' to the extent that such is not prohibited by law
<br />and only to the extent that such will not make this loan
<br />usurious), but excluding any income tax, State or Federal, im-
<br />posed on Mortgagee, and .....ilI file the official receipt showing
<br />such payment with the Mortgagee. Upon violation of this under-
<br />taking. or if the Mortgagor is prohibited by 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 pro-
<br />hibiting the pa~'ment by Ihe Mortgagor of any such taxes, or if
<br />such iaw or decree provides that any amount so paid by the
<br />Mortgagor shall be credited on the mortgage debt, the Mortgagee
<br />shall have the right to give ninety days' wriUen notice to the
<br />owner of the mortgaged premises, requiring the payment of the
<br />mortgage debt. If such notice be given, the said debt shall
<br />become due. payable and collectible at the expiration of said
<br />ninety days.
<br />
<br />6. That should the Mortgagor fail to pay any sum or keep any
<br />covenant provided for in this mortgage, then the Mortgagee, at
<br />its option, may PlY or perform the same. and all expenditures so
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