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<br />TIle MortBlllor In order more fully 10 prolKI tbe lKunt)' 01
<br />llab Mort&qe. lISms:
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<br />I. That he will pay Ihe indebtedne~s, as hereinbefore provided,
<br />Privllese is reserved to pay the debt in whole or In pan on any
<br />installment due dale,
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<br />2. That, toaether with, and in addition to, Ihe monthly
<br />payments of principal and interest payable under the lerms of the
<br />note secured hereby, the Mortaagor will pay to the Mortg..ee,
<br />on the first day of each month untllthe said note is fully paid,
<br />the foUowin. sums:
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<br />(a) Amount sufficient 10 provide the holder hereof with funds
<br />to pay the nexl mortgage insurance premium if this instrument
<br />and the note 5e\.'Ured hereby are insured, or a monthly charge (in
<br />lieu of a mortgage insurance premium) if lhey are held by the
<br />Secretary of Housing and Urban Deveiopment, as follows:
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<br />(I) If and so long as said note of even date and lhis in-
<br />strument are insured or are reinsured under lhe provisions of the
<br />National Housing ACI, an amount sufficient 10 accumulate in Ihe
<br />hands of the holder one (I) month prior to its due date the an-
<br />nual mortgage Insurance premium in order 10 provide such holder
<br />wilh funds 10 pay such premium 10 Ihe Secretary of Housing and
<br />Urban Development pursuant to the National Housing Act, as '
<br />amended, and applicable Regulallons thereunder: or
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<br />(II) If and so lona as said note of even date and this in-
<br />strument are held by the Secrelary of Housing and Urban
<br />Developmenl, a monlhly charge (in lieu of a mortgage insurance
<br />premium) which shall be in an amount equal 10 one-Iwelfth
<br />(1/12) of one-half (//2) per centum of lhe average oUlstanding
<br />balance due on the no Ie compuled withoul taking into account
<br />delinquencies or prepayments;
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<br />(b) A sum equal to the ground l'enl5, if any, nellt due, plus the
<br />premiums that will nexl become due and payable on policies of
<br />fire and other hazard insurance covering the mortgased pro pert y ,
<br />plus taxes and assessmenl5 next due on the mortgaged property
<br />(all as estimated by the Mort,a,ee) less all sums already paid
<br />therefor divided by the number of months 10 elapse before one
<br />(I) month prior to Ihe date when luch ground renls, premiums,
<br />taxes and assessments will become delinquenl, such sums to be
<br />held by t.-Iortgagee in trust to pay said ground rents, premiums,
<br />taxes and special assessments; and
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<br />(c) All paymenls mentioned in the two preceding subsections
<br />of this paragraph and all payments to be made under the nOle
<br />secured hereby shall be added tOlether, and the aurelote amounl
<br />IheTeof shall be paid by the Mortgalor each month in a single
<br />payment to be applied by the Mortgalee to Ihe follOwing items in
<br />the order set forth:
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<br />(I) premium charles under the contract of insurance with
<br />the Secrelary of Housing and Urban Development, or monlhly
<br />charle (in lieu of mOr/,IIBe insuranct premium), 8S Ihe case may
<br />be;
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<br />(III llround rents, laxes, asseumenu, fire and olher hazard
<br />insurance' premiums;
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<br />(II/I interesl on the note secured hereby;
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<br />(IV) amortization of Ihe prindpal of saId nole; and
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<br />(VI hlle charlll.'~
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<br />Any deficiency in Ihe amount of slIch aggrelale monlhly pay,
<br />melll shall. unle.. made good by Ihe Murlgagor prior 10 the due
<br />dale of Ihe nexl such payment. constitute an evenl of default
<br />under this mortllaae, The Mortgagee lIlay collect a "Iale charge"
<br />not 10 ellceed four cenlS (<leI for each dollar ($1) of each pay.
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<br />88-1021ti3
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<br />IIll.'nl more lhan fifteen (/ S) days in arrears 10 cover the extra ex-
<br />pense Involved in handling delinquent payments.
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<br />3. That if the 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 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 oplion of the Mortgagor,
<br />shall be credited by the Mortg..ee on subsequent payments to be
<br />made by the Mortgagor, or refunded to the Morta..or, If,
<br />however, the monthly payments made by the Mortgaaor 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 dut: and payable,
<br />then the Mortgagor shall pay to the Murtgagee any amount
<br />necessary to 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 Morlgagee, in accordance with the provisions of the note
<br />secured hereby, l'tIlI payment of Ihe entire indebtedness
<br />represented thereby, Ihe Mortgagee shall, in computing the
<br />amount of such indebtedness, credit to the account of the MOJ1-
<br />gagor all payments made under the provisions of (a) paragraph 2
<br />hereof which Ihe Mortlagee 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 Ihis mOJ1gale resulting in a public sale
<br />of the premises covered hereby, or if the MOJ1gagee acquires the
<br />property olherwise after default, the Mortgagee shaD apply, at
<br />the time of the commencement of such proceedinl5, or at the
<br />time the property 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 shaU properly adjust any payments which
<br />shall have been made under (a) of paragraph 2.
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<br />4, That the Mortgagor will pay ground rents. taxes,
<br />assessments, water rates. and other governmental or municipal
<br />charaes, fines, or impositions, for which provision has not been
<br />made hereinbefore, and In default thereof the Monsacee may
<br />pay the same; and thlll the Mortgagor will promptly ddi~"U the
<br />official receipts therefor to the Mortgagee.
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<br />S, The Morlgagor will pay all laxes wlUch may be levied upon
<br />the Mortgagee's interest in said real estate and impro\.-ements.
<br />and which may be levied upon this mortgllJC or the debt secured
<br />hereby (but only to the extent that such is not pcolllbited by la.'
<br />and only to the extent lhat such will nOI make this loom
<br />usurious), but eKcludingany income tax, State or Federal. im.
<br />posed on Mortlagee. and will file the omcial receipc soo\\>ina
<br />such payment with the Mortgalee. Upon \'iolation of this undelr-
<br />taking. or if the Mongagor is prohibited by' an)' law no,",' or
<br />hereafter existinl from paying the whole or any pmtioo of the
<br />aforesaid taxes, or upon the renderinl of an)' rourt d<<ree pro,
<br />hibiling the payment by the Mortlalor of any such tlUes, or if
<br />such law or decree provides that any amount 50 paid by the
<br />MortsaBor shall be credited on the mortlaat" debt, the Mor1laattnshall have the right to give ninety days' ,",'rillen nO'li<< to the
<br />oWlIer of the mort [lased premi5C.'s, requiring the pll)"mem of the
<br />mortgage debt, If such 1I0lice Ile Iliven, the slud debt shall
<br />become due, payable and collcctible at the e~piration or \Bid
<br />ninety days,
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<br />6, That should lhe Mortgagor tail to I'a) all)' sum ''1 "eer I'm
<br />CllVl.'nam prolllded fnr In Ihis mortlU1lle. Ihen Ihl.' M,lItll1lllff, III
<br />lis option, may pll)' or rertorm the SllllU', and all e\l"C'nduules '"
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