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<br />88-:1027'01
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<br />Borrower and tender co\'emml and agree liS follows:
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<br />more than fifleen lI5) day" in am:,IrS 10 ,'OVCI the eXlra expense
<br />involved in handlitig delinquent paymellls,
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<br />L That Borrower will pay the indebledness, as hereinbefore
<br />provided. Privilege is reserved [0 pay the deb I in whole or in part
<br />on any installment due date.
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<br />2, That, together Wilh, and in addition 10, the monthly
<br />payments of principal and interest payable under lhe lerms of the
<br />note secured hereby, the Borrower will pay to the lender, on the
<br />firsl day of each month untillhe said nor:: is fully paid, Ihe
<br />following sums:
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<br />(a) Amnunl sufficient to provide Ihe holder hereof with funds
<br />to pay the nexl mortgage insurance premium if this instrument and
<br />the nOle secured hereby are insured, or a monthly charge (in lieu
<br />of amorrgage insurance premium) if lhey are held by the
<br />Secretary of Housing and Urban Development, as follows:
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<br />(I) If and so long as said note of even date and this instru-
<br />ment are insured or are reinsured under Ihe provisions of lhe Na-
<br />tional Housing Act, an amount sufficient [0 accumulate in the
<br />hands of the holder one (I) month prior to its due date the annual
<br />mortgage insurance premium in order to provide such holder with
<br />funds to pay such premium to the Secretary of Housing and Ur.
<br />ban Development pursuant to lhe 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 instru-
<br />ment are held by the Secretary 01' Housing and Urban De\ elop-
<br />ment, a monthly .:harge (in lieu of !J 1ll0rti,!ill,!L' imur!Jn.:e prcmium)
<br />which shall be in an amoulll equal 10 one-twelfth (1112) of one-
<br />half (1/2) per .:entum of the average outstamling balan.:e due on
<br />the note computed without taking into llcwunt dt'linquen.:ies or
<br />prepayments;
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<br />(b) A sum equal [0 the ground relllS, if llny, next due. plus the
<br />premiums that will next become due and payable on policies of
<br />fire and other hazard insurance covering the propeny, plus laxes
<br />and assessments next due on the propeny (all as csrimalt'd by rhe
<br />Lender) less all sums already paid therefor divided by the number
<br />of months to elapse before one (I) month prior to the date when
<br />such ground rents, premiums, taxes and assessmelllS will become
<br />delinquelll, such sums to be held by Lender in trust 10 pay said
<br />ground rents, premiums, taxes and special assessmelllS; and
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<br />(c) All payments mentioned in the two preceding subsections of
<br />this paragraph and all paymellls to be made under the note
<br />set'Ured hereby shall be added together, and the aggregate amount
<br />thereof shall be paid by the Borrower each monlh in a single pay-
<br />ment to be applied by the Lender to the following items ill the
<br />order set fort h:
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<br />(l) premium charges under the cOIllra.:t of insurance wit h
<br />the Secretary of Housing and Urban Development, or n1L'llthly
<br />charge (in lieu of mortgage insurance premium), as Ihe case lIlay
<br />be;
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<br />(11) ground rents, taxes, assessmeIllS, fire and other hazard
<br />insurance premiums;
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<br />(111) interest on the note secured hereby:
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<br />(lV) 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 amount of such aggregate monthly pay-
<br />mel11 shall, unless made good by the Borrower prior to the due
<br />date of the next such payment, constitute an evelll of default
<br />under this mortgage, The Lender may collect a "late charge" not
<br />to exceed four cents (4Q:) for each dollar ($1) of each payment
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<br />3. That if the 10lal of the puymellls made by the BllI'rower
<br />under (b) of paragraph 2 preceding shall exceed lhe ,tmoulll of
<br />payments actually made by Ihe Lender for ground rents, taxes and
<br />assessments or insurance premiums, as Ihe case may be, such ex-
<br />cess, if the loan is current, at the option of lhe Borrower. shall be
<br />crediled by the Lender on subsequent payments to be made by the
<br />Borrower, or refunded to Ihe Borrower, If, however, the monthly
<br />payments made by the Borrower under (b) of paragraph 2
<br />preceding shall not be sufficient 10 pay ground rents, taxes and
<br />assessments or insurance premiums, as the case may be, when the
<br />same shall become due and payable, tl)en lhe Borrower shall pay
<br />to the Lender any amoUIll necessary to make up the deficiency, on
<br />or before the dale when payment of such ground renls, laxes,
<br />assessments, or insurance premiums shall be due, If at any lime
<br />the Borrower shall tender 10 the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebledness represcllled thereby, the Lender shall, in computing
<br />the amount of such indebledness, credit to the account of the Bor-
<br />rower all payments made under the provisions of (a) of paragraph
<br />2 hereof which the Lender has not become obligated to pay to Ihe
<br />Secretary of Housing and Urban Development and any balance re-
<br />maining in the funds aC':UIl1Ulaled under the provisions of (b) of
<br />paragraph 2 hereof. I f there shall be a default under any of the
<br />provisions of this instrument resulting in a public sale of the
<br />premises .:overed hereby, or if the Lender acquires the property
<br />otherwise after default, the Lender shall apply, at the lime of the
<br />commen.:ement of su.:h proceedings, or at the time the property is
<br />otherwise acquired, the balan.:e then remaining in the funds ac-
<br />.:umulated under (b) of paragraph 2 preceding, as a credit against
<br />Ihe amount of prindpal then remaining unpaid under said note.
<br />and shall properly adjust any payments whidl shall havc been
<br />made under (a) of paragraph 2,
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<br />4. That the Borrower will pay ground rents, taxes, assessmenls.
<br />water rates, and other govcrnmental or municipal chargcs, fines,
<br />or impositions, for which provision has not been made
<br />hereinbefore, and in default thercof Ihe Lender may pay the same;
<br />and that the Borrower will promptly deliver the official receipts
<br />therefor to the Lender,
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<br />5, The Borrower will pay all taxes whi.:h may be lev ied upon
<br />the I.,l'nder's interest in said real estate and improvcments, and
<br />wlll.:h may he levied upon this instrument or the debr secured
<br />hereby (but only to the extent Ihat ,u.:h is not prohibited by la\\
<br />llnd only 10 the exlent that 5u.:h will nOI make this loan usurious).
<br />but e\duding any in,:ollle tax, Slate or Federal, imposed on
<br />I.ender, and will file the offkial re.:elpl showing su.:h payment
<br />with Ihe I ender, Upon violation of this undertaking, or if the
<br />Borrower IS prohibited by any law now nr hereafter e\i,ting fwm
<br />paYlllg the whule or any portion of the aforesaid laxe" or upon
<br />the rendering of any wun de.:rec prohibiting the paymenl by the
<br />HOffower of any such taxes, or if su.:h law or de.:ree provides thaI
<br />any amount so paid by Ihe Borrower shall be .:redited on the debt.
<br />thl. I.ender shall have the right to gi\'t' ninety days' \\Iinen noti.:e
<br />1" Iht' o\\nel of Ihe premises, requiring the payment of the debt.
<br />II ,udl noti.:e be given. Ihe said debt shall become due, payable
<br />and wlk.:tiblc al Ihe expiration of said ninety days,
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<br />6. That should I he Bl1nO\\ er fail to pay any "11m or keep any
<br />.:o\enant pro\llkd for In tillS Instrument, then the Lcnder, at it,
<br />,'ptlon, lIIay pavor perf"rlll Ihe 'lillie, and all expendilures SO
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<br />HUD-92143DT
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