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<br />Borrower and Lender w"enant and agree as lollows:
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<br />88- 102001
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<br />I. That Borrower wlU pay the Indebtedncss. as hereinbefore provld.
<br />ed. PrMlege is resen..ed 10 pa)' the debt in whole or In part on any In.
<br />staUment due date,
<br />
<br />2. ThaI, together with. and In addillon to. the montnl)' payments
<br />uf principal and interest payable under the temu 01 the note secured
<br />hereb)', the Borrower will pay to the Lender, on the fint day of each
<br />monlh unlil the nid note is full)' pa.ld, the lollowing sums:
<br />
<br />(.) AmOunt sufflclent to pro,'ide the holder heroof with runds to
<br />pay the !lext mortgage InswallOe premium U this Instrument and the
<br />note 5<lCUred hereby are Insured, or a monthl)' charge (In lieu oj a
<br />mortiagF i",vranu premium) If the)' are neld by the Secretary of
<br />HOllling ilIld Urban De,'elopment, as rollows:
<br />
<br />(I) If and ~ long ill said note of e\"en date and this i1utrument
<br />.re lruur,-d or are rt'iruuro:d under the prO\'isioru; 01 the NlIlional
<br />Bowing ",.1, an amount sufficienl 10 at'<'umulale in the hands 01 Ihe
<br />holder olle (I) month prior to il.5 due date the annual mortgage in.
<br />sur.nee: premium In order 10 pro,'ide sUl'h holder with rumh to pay
<br />sucb prelllium 10'lhe 5<<retuy 01 Howing and Urban De,'elopment
<br />punuant to the ~ationalllowing Act, is lImended. and applicable
<br />Rq!ulatiolU Ihereunder; or
<br />
<br />(11) II .nd loG long &S said nOle or e"en dale and Ihis instrument
<br />a:c held b)' the Socu:lar)' 01 Housing and Urban D.e\"eJopmenl, a
<br />monthl). charge (in lil"U QJ 11 mQrtgage iruuranu premium) which mall
<br />be In an amount C<.jual to one.twelfth (11l2) 01 one.half (1/2) per cen.
<br />turn 01 Ihe a\"erage oul.5tanding balanet! due on the note computed
<br />, .....ithoul laling inlo al'COunt ddinquencies Of prepa)"menu;
<br />
<br />(b) A sum t'<luil! to Ihe ground rents, if an)', neX! due, plu> the
<br />premiums .h.t .....ill n..lt b...:ome due and pa}'abl.. on policies of EIre
<br />and olh..r hllUrd insuranct! conrini the properl)', plw taxes and
<br />_met,ls nelt due on the proptert)' (al/ (lj t'.timatt'd b'llhe Undn)
<br />l~ all sums alr....d)' paid Inerdor divided br Ihe number of months
<br />10 d...... Lo.:fore on.. (I) munlh prior 10 II... d.le when such gsound
<br />renlA, prtSnlunu, IUQ 11IId ~ments .....ill becume delinquenl. such
<br />SUSID to be hdd by lender in Irwt 10 pa}' said ground rents,
<br />prellliunu, tuc:o and 5pt~'i~ ll1S<:Urnents; and
<br />
<br />(c) All p,)'ments mentioned in the t....o preceding sub5ectlolU of this
<br />pallpaph and all payments 10 be made under the no Ie secured
<br />hereby mall be added together. and the aggregate amount thereur
<br />ilball be paid b)' the Borro"er eacb month in a lingle pa)'ment to be
<br />applitod b)' the Lender '0 the follo.....ing items in the order :iel forth:
<br />
<br />(I) prtmium charglS under the contract 01 insuranCt: ....ilh the
<br />Secretaf)' of Howing and Urban De..-elopmenl, or monthi)' charge (in
<br />lleu QJ mortgage innmmce premium), &S th.. Clllt' mal' be;
<br />
<br />(11) gruund renll. taxa. asses.sm..nts. lire lInd other hazard In.
<br />,urance premiums;
<br />
<br />(III) Interest on th.. note I<<UftO herel,)':
<br />
<br />(IV) amonlz.atiou or the principal of said note; and
<br />
<br />01 (V) !au chugel.
<br />
<br />fuJy cWiciency ill the amount of such agregate monthly payment
<br />ihaU. u.al_ made good by the Bono\ller prior to the due date of the
<br />~ Neb payment, wnstitute an n-ent of default under thiI Dlort-
<br />18.. 11le Lender may wllect a ~Iate chllrge- nol to uceal four cenls
<br />(4.) fDr each dollar ('I) of e.ch payment more than fifteen (15) days
<br />in anea,. to co\"er the e~tra elperue Invol\'ed in handling dellDql.lt'nt
<br />pa)'ments.
<br />
<br />3. That if the total of the payments made b)' the Borrower UDder
<br />(bl of parapapb 2 pr~ing sba1J UllIlOO the amounl of pa)'mentJ ac-
<br />tually made by the Lender for vound rents, tUeI and l.SJCSSD1entJ or
<br />inNJance premlwm. as lbe cue may be, luch elct:5i, ir the 10&11 Is
<br />cunent. at the option or the Bonower, mall be crediled by the
<br />~ on IU~l.Iellt ~)'meDtI to be made by the Borrower, or
<br />nlu.odcd to the Borro"'.er. IE. bo....ft'eJ". the monthly paymenll Dlade
<br />by the Berro",'", I,\oclft (b) of paraV.ph 2 ptecedln, mall DOl be swfl.
<br />cleol to pa)" around rents, t_ and ~enls or laauranoe
<br />premiums, as the C&Ie may be, wbeD the same mall t.:ome dlH! aDd
<br />payablt, then the Borrow. iha1l PC)" to the Lender any amQUnt
<br />~. to make up the deflden..'")', on or before the dale when pay.
<br />ment of ,ueh. ,round rents, tu_, &UftUIlentJ. or insurance premiums
<br />iliall be due. If 101 Ion)' time lbe Borrower iliall lender 10 the Lender,
<br />in &OC'Ord.rlL.. ",ith t~ pro,iIioN or the note $OCureod hcreb)', full pay.
<br />meol 01 \he ""lirt Ind..bltd~ r..pr.....nted ther..b)., II... Lend.., mall,
<br />
<br />In t'Ompuling the amount of sud, indd,tloUlll'SS, credit 10 Ihe aL'COunt
<br />01 the Borrower all pa)'melltJ m ad~ und.'r th~ pru\'uiuns of (II) uf
<br />paragraph 2 hert!(lf which the Lender has not l>L.".,me ubligal'.,] lu par
<br />to the Secretar)' of Hawing and Urban De\doplllent and an)' balanC1l
<br />ref1lalnlng In the funds accurnulallod under Ihe pro\'uions or (b) of
<br />paragraph 2 hereof. If there shall be a ddaull under all)' of the pro\"i.
<br />dons of Ihis inslrument resulting in a public 5al~ of the premises
<br />covered hereby, or if tbe Lender aCtluirc.l the properl)' otherwise all..r
<br />defaull, the Lender shall appl)', at the lime of the t'OllHlIenl'l'lIIl'lIt uf
<br />such proceedings, or at the time the properl)' is olherwise actjuirL.J,
<br />.he balallet! then remaining in Ihe funds al"Curnulat..d under (b) of
<br />parllgraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpald under $aid nOle, and shall properl)' adjust an)"
<br />payments which mall lIa\'e been made under (a) of paragraph 2,
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<br />., That the Borrower will pay ground H'nts, tll.\t'S. ilSSCSSIll"nu.
<br />water rates. anli other gO\'ernmentlll or municipal charges. fines, ur
<br />impositions. lor which pro\'ision Inu nol b.....n lllad~ hl'reinbl'fore, and
<br />ill default theTLoof the Lender lIIay par Ihe .am,,; and th..t the Bur.
<br />rower will promptly deliver the oHkial fl,(i;lph Ihl'Tdur 10 tlu'
<br />Lender,
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<br />5, The Bortow!'r .....iII pa)' aUla,\l'S \\ hich lIlar b(. It'\"ied upun thL'
<br />Lender's interest in said rcall:lilllte IIl1d illlpru\l'l1Il'fltS. and which tIIa)'
<br />be levio:d Upoll this Inslrument or the d.,1>1 H'('urcd hereby (buI 0111)' tu
<br />the exlenl that such II not prohlbitl-d b)" law und unl)' to the t!~ll'nl
<br />lhat such will flOt make llrll loan usurious), bUI e~c1uding an)' inl'OrTle
<br />tax. Stale or FL-deral, imposed 011 b'nd"r, "lid willlile II", official
<br />receipt showing such pa)'ment with tlw I.L'lId,'r. Upon "iulatien 01 this
<br />undertaking, or if Ihe Borro""er is pruhil>il,'d l>r an}' 11Iw no\\" or
<br />berellfter Clilting from paying the .....hole or .n)' porlion 01 the
<br />aEornaid taxes, or upon lhe rendering of ..n)' L'OUrt d,,<,rL'e prOhibiting
<br />the payment by Ihe Borrower 01 an)' such ta~L'S. Of if such Ill\\" or
<br />decree pro"ides thai an)' amounl so paid by Ihe lIorrower s),ull be
<br />credited 011 the debt, the Lender .hall hano tht. right to gi\'e nilll'l)'
<br />days' writtell nulire to lhe owner or the prl'mi...s, H"'juiring the pa)'-
<br />ment of Ihe dt!bl, IE such notire bt. giwn. th~ said debl .hall 1>.."COllle
<br />due. pa)'lIble and colll'Clible at the l"pirulioll ,.1 said I\IIlt'I)' da)'s.
<br />
<br />6. That shuuld the lIorrower f.il to pa)" IUl) .UIII ur \'''''''1' un)" con.
<br />nllnt pro,'ided for in this lrutrulllent. then Ih.. I.,'nder. at its uptiun.
<br />ma)' pa)' ur perrorm the same, and all "'pt!ndilurcs so mllde shall be
<br />Ildd<<l to th.. principallum owing on Ihe abu,." nule, .II all 1>... .,,,,..ltl.,]
<br />hereb)', and shall bear Inlerest at Ihe rate .el forth in the sllid nUll',
<br />untU paid.
<br />
<br />7, Thai Ihe Borrower hereb)' assigllli, tran.\rers and sets on:r to the
<br />Lender, to be appliLod lo",<ud Ihl' pa)'l1Ient of Ihe nOle and all sums
<br />1t'lC1Ired hereb)' In C&5t' of . default In lhe perfor rnanC1l 01 'In)' of the
<br />terms and conditions or Ihis instrument or lhe s..id 1I0tc, all the renls,
<br />re\'enueJ and InroUle 10 be derived lrom Ihl' said pfembes during sUl'h
<br />lime &S the indebledness shall femain unpaid. and Ihe lender shall
<br />hne puwes to llpvoint an)' IIgent or ugt'lI1s it Illll)" desire Cor the pur-
<br />IXl:ie or replliring said premu..s and of renting Ihe .\am" and colllding
<br />the rentJ, re"enueJ llnd inwme. and it ma)' pa}' out of said incomes
<br />all elpetlS<:S of repairing said premises IInd n''("<'SSlIry l'OUlm4-iuns and
<br />uperues incurred In renting and managing the Sllllle IIl1d of coll<<'lIng
<br />reDtab thefefrom; the balanCt: remaining, if any. to be llpplied toward
<br />the discharge of laid Indebtedneu,
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<br />8. That the Bonower will bel' the impro"ementJ no.... nisting or
<br />hereafter erected on the property, insured as ma)' be required from
<br />time to time by the Lender a,alM los.s b)' fire and other hazards,
<br />casual lies and contlnsencl. in such amounl.5 llnd for such periods 1$
<br />may be required by \he Lender,and will Pll)' promptl)', when due,
<br />any premlunu on luch Insurance pro\'islon lor pa)'ment of which IIlI.l
<br />not been made hereinbefore, All insuranC't' shall be carried in com.
<br />panlfti approved by the Lender and the policies and renewals theroof
<br />mall be held by the Lender alld hn.. atladlL-d Iherelo luss pll)'able
<br />clauses In f.,'or of and In form lICCt:pl~ble tu the Lender, III e\'ent or
<br />10Sl; Borrower will gi\'e Immediate notil'C br fIlOlil to the lender, who
<br />may make prool 01 Iou if not made prompll)' b)' Borrower, and each
<br />insurance com pan)' roncerned II hesebr lIuthurized and dirt'Ctoo lu
<br />make pa)'menl for such 10Sl; dirl:('tl)' 10 Ihe Lender irutead of to Ih..
<br />Borro...'er and the Lender jOlntl)', and Ihe insurance proceeds, or llfl)'
<br />pan thEreof, may be applied by the Lender al ill option eilher 10 Ihe
<br />reduction of the Indebtedn_ hereby k'Cured ur to the restoration or
<br />repa:r of the property dama"ed. In e,'..nt or foreHosure of IlrlJ Instru.
<br />ment ot other tranNer or title 10 the mortgaged property In t'ltingubh.
<br />ment 01 the Indebtedneu MlCUred hereb)', llll righi, title and Intereit of
<br />the Bono,,'er In and tu any InsurAn"" policil.~ then In rorce ,hallplW
<br />to the purch...,r or pantee.
<br />
<br />9, That.. additional and l",ll.lerlll ......'urit). lur the pll)'lI1elll uf Ih"
<br />nole described. .nd all nulU to bt...'tJlIlt du~ \mdl'r Ihis irnlrullWl)l, Ihe
<br />Bo,IO.....er h..r..by IUIllns to lhe L"'lId"r Mil I'rulits, ,..""IIU.... fO).alti,.....
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<br />Paua 2
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<br />HUO-1I21.30T
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