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<br />88- 102106
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<br />The Mortgagor In order more fully to protect the securit)' of
<br />Ihls Mortgage, agrees:
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<br />J. That he will pay the indebtedness, as hereinbefore provided.
<br />Privilege is reserved to pay the debt in whole or in pan on any
<br />installmenl due date.
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<br />2. Thai, logelher with, and in addition to, Ihe monlhly
<br />payments of principal and inlerest payable under the lerms of Ihe
<br />note sC1:ured hereby, the Morlgagor will pay to the Mortgagee.
<br />on Ihe first day of each monlh until the said note is fully paid,
<br />Ihe 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
<br />and tbe note secured hereby are insured, or a monthly charge (in
<br />lieu of a mortgage insurance premium) if they are held by the
<br />Se<:retary of Housing and Urban Development, as follows:
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<br />(l) If and s':) long as said note of even date and this in-
<br />strument are insured or are reinsured under Ihe provisions of Ihe
<br />National Housing Act, an amount sufficient 10 accumulale in the
<br />hands of the holder one (1) month prior to its due date the an-
<br />nual mortgage insurance premium in order to provide such holder
<br />with funds to pay such premium to the Secretary of Housing and
<br />Urban Development pursuant to Ihe 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 in-
<br />strument are held by the SC1:retary 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 (112) per centum of the average outstanding
<br />balance due on the note computed without taking into account
<br />delinquencies or prepayments;
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<br />(b) A sum equal to Ihe ground rents, if any, next due, plus the
<br />premiums that will nexI mcome due and payable on policies of
<br />fire and other hazard insurance cO\'ering the mortgaged property,
<br />plus taxes and assessments nexI due on the mortgaged property
<br />(all as estimated by rhe Morrgagre) less all sums already paid
<br />Iherefor divided by the number of months to elapse before one
<br />(1) month prior to the date when such ground rents. premiums,
<br />taxes and assessments will become delinquent, such sums to be
<br />held by Mortgagee in trust to pay said ground rents, premiums,
<br />taxes and special assessments; and
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<br />(c) All payments mentioned in the two preceding subsections
<br />of this paragraph and all paymenls to be made under l!:Ie r,OIe
<br />secured hereby shall be added togelher, and the aggregate amount
<br />thereof shall be paid by the Mortgagor each monlh iT! a single
<br />payment to be applied by the Mortgagee 10 the fOllowing items in
<br />the order set fonh:
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<br />(I) premium charges under the conlract ':)f insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in lieu of mortgage insurance premium), as the case may
<br />be;
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<br />(11) ground rents, taxes, assessments. fire and olher 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 principal of said note; and
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<br />(V) late charges.
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<br />Any deficiency in the amounl of such aggregate monthl)' pay-
<br />ment shall, unless made good by the Mortgagor prior to the due
<br />date of the nell.! such payment, constitute an evenl of default
<br />under this mortgage. The Mortg~gee may collect a "late charge"
<br />110t to exceed four cents (4) for each dollar ($1) of each pay.
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<br />ment more than fifteen (15) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments,
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<br />J. That if lhe total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Mortgagre for ground rents. taxes
<br />and assessments or insurance premiums, as the case may be. such
<br />ex<;ess, if the loan is current, at the option of Ihe Mortgagor,
<br />shall be credited by the Mortgagee on subsequent payments to be
<br />made by the Mortgagor. or refunded to the Mortgagor. If,
<br />however, Ihe monthly payments made by the Mortgagor under
<br />(b) of paragraph 2 preceding shall not be sufficient 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 10 make up the deficiency, on or before the date when
<br />payment of such ground rents, taxes, assessments. or insurance
<br />premiums shall be due, If at any time the Mortgagor shall tender
<br />to the Mortgagee, in accordance with the provisions of the note
<br />secured hereby, full payment of Ihe 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 propeny is otherwise acquired, the balance then remain-
<br />ing in the funds accumulated under (b) of paragraph 2 preceding,
<br />as a credit against the amount of principal then remaining unpaid
<br />under said note, and shall properly adjust any payments which
<br />shall have been made under (a) of paragraph 2.
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<br />4. That the Morlgagor will pay ground f(;n(s. taxes,
<br />assessments. water rales. and other governmental or municipal
<br />charges, fines, or impositions. for which provision has not been
<br />made hereinbefore, and in default thereof the Morlgagee may
<br />pay the same; and that the Mortgagor will promptly deliver tlle
<br />official receipts therefor to the Mortgagee,
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<br />5, The MOrlgagor will pay all taxes which may be levied upon
<br />the Mongagee's interest in said real estate and improvements.
<br />and which may be levied upon this mortgage or the debt secured
<br />hereby (but only to the eXlent thai such is not prohibited by law
<br />and only to the extent thai such will not make this loan
<br />usurious), but excluding any income tax, State or Federal, im-
<br />posed on Mongagee, and will file the official rC1:eipt showing
<br />such payment with the Mongagee. Upon violation of tbis under-
<br />laking, or if the Mortgagor is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court dC1:ree pro-
<br />hibiting Ihe payment by the Mortgagor of any such taxes, or if
<br />such law 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' written notice to the
<br />owner of the mortgaged premises, requiring the payment of the
<br />morlgage debl. If such notice be given. the said debt shall
<br />become due, payable and collectible at the expiration of said
<br />ninely days.
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<br />6. That should the Morlgagor fail to pay any sum or keep any
<br />covenant provided for in this mortgage, then the Mortgagee, at
<br />its option, may payor perform the same, and all expenditures so
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