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<br />88-
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<br />10.2755
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<br />more than fifteen (15) days in arrears to cover the extra expense
<br />involved in handling' delinquent payments.
<br />
<br />Borro"'er lInd tender connanl and lI~ree as follows:
<br />
<br />I. Thai Borrower will pay III<.' ;ndebtednc~s, as hert:'inbefore
<br />provided. Privilege is reserved 10 pay lhe debt in whole or in part
<br />on any installment due date.
<br />
<br />2. ThaI, togetht:'r with. and in addilion to. the monthly
<br />paymellls of principal and inlerest payable under tht:' tt:'rms of the
<br />nOle secured hereby. the Borrower will pay 10 Iht:' Lender, on the
<br />first day of each month until the- said note- is fully paid, lhe
<br />following sums:
<br />
<br />(a) Amoum sufliciem to provide the holder hereof wilh funds
<br />to pay the ne.\t mortgage insurance premium if this ins[rumem and
<br />the note secured hereby arc insured, or a monlhly charge (in lieu
<br />of a.mortgage insurance premium) if they are held by Ihe
<br />Secretary of Housing and Urban Development, as follows:
<br />
<br />(I) If and so long as snid note of even dale and this instru-
<br />mem are insured or are reinsured under the provisions of [he Na-
<br />tional Housing Act, an amount sufficiem 10 accumulate in Ihe
<br />hands of the holder one (I) momh prior 10 its due dale lhe 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 pursuam to the National Housing Act, as
<br />amended, and applicable Regularions [hereunder; or
<br />
<br />(II) If and so long as said note of even dale and this instru-
<br />mem are held by [he Secretary of Housing and Urban Develop-
<br />mem, a momhly charge (in lieu of a mortgage insurance premium)
<br />which shall be in an amount equal to one-twe!f!h (1/12) of one-
<br />half (1/2) per centum of the .werage outstanding balance due on
<br />the note compute.d without taking into accoum delinquencies or
<br />prepaymems;
<br />
<br />(b) A sum equal to the ground rems, if any. next due, plus the
<br />premiums that will neXl become due and payable on policies of
<br />lire and other hazard insurance covering the property, plus taxes
<br />and assessments next due on the property (a11 as estimated by the
<br />Lender) less all sums already paid therefor divided by the number
<br />of months to elapse before one (I) momh prior to the date when
<br />such ground rents. premiums, [axes and assessments will become
<br />de]inquent, such sums to be held by Lender in lrust [0 pay said
<br />ground rents, premiums, taxes and special assessmems; and
<br />
<br />(e) All payments mentioned in the two preceding subsections of
<br />this paragraph and all payments 10 be made under the note
<br />secured hereby shall be added IOgether. and the aggregate amount
<br />thereof shall be paid by the Borrower each momh in a single pay-
<br />mem to be applied by the Lender to the following items in the
<br />order set forth:
<br />
<br />(I) premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in lieu of morrgage insurance premium), a~ the case may
<br />be;
<br />
<br />(U) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />
<br />(III) interest on the note secured hereby;
<br />
<br />(IV) amc-rtization of the principal of said nOle; and
<br />
<br />(V) late charges.
<br />
<br />Any deficiency in the amoum of such aggregate momhly pay-
<br />ment shall, unless made good by the Borrower prior to the due
<br />date of the next such payment, constitute an event of default
<br />under this mortgage. The Lender may collect a "late charge" not
<br />to exceed four cents (4(1:) for each dollar ($]) of each payment
<br />
<br />3. ThaI if the total of Ihe payments made by the Borrower
<br />under (b) of paragraph 2 preceding shall exceed lhe :Imounl of
<br />payments actually made by the Lender for ground rents, taxes and
<br />assessments or insurance premiums, as the case may be, sllch ex-
<br />cess, if [he loan is current, at the option of the Borrower, shall be
<br />credited by the Lender on subsequent payments 10 he made by the
<br />Borrower, or refunded 10 the Borrower. If, however, tile monthly
<br />payments made by the Borrower under (ll) of paragraph 2
<br />preceding shall nOl be sufficient to pay ground rents, taxes and
<br />assessments or insurance premiums. as lhe case may be, when [he
<br />same shall become due and payable, then lhe Borrower shall pay
<br />to the Lender any amount necessary to inake up the deficiency, on
<br />or before the date when paymem of such ground rents, [axes,
<br />assessments, or insurance premiums shall be due. If at any time
<br />the Borrower shall tender 10 the Lender, in accordance with [he
<br />provisions of the note secured hereby, full payment of the emire
<br />indebtedness represented thereby, lhe Lender shall, in computing
<br />the amount of such indebtedness, credit to lhe account of lhe 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 lhe
<br />Secretary of Housing and Urban Developmem and any balance re-
<br />maining in tile funds accumulated under lhe provisions of (b) of
<br />paragraph 2 hereof. If lhere shall be a default under any of Ihe
<br />prOvisions of this instrument resulting in a public sale of the
<br />premises covered hereby, or if Ihe Lender acquires the property
<br />olhenvise after default, lhe Lender shall apply, at the lime of the
<br />commencement of such proceedings, or at the time the properly is
<br />otherwise acquired, the balance then remaining in the funds ac-
<br />cumulated under (b) of paragraph 2 preceding, as a credit against
<br />the amount of principal then remaining unpaid under said note,
<br />and shall properly adjust any payments which shall have been
<br />made under (a) of paragraph 2.
<br />
<br />4. That the Borrower will pay ground rents, taxes. assessments.
<br />water rates, and other governmental or municipal charges. fines.
<br />or impositions, for which provision has not been made
<br />hereinbefore, and in default thereof the Lender may pay Ihe same;
<br />and that lhe Borrower will promptly deliver the official receipts
<br />therefor to the Lender.
<br />
<br />5. The Borrower will pay all taxes which may be levied upon
<br />[he lender's interest in said real estale and improvemems, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (but only to the extent thaI such is not prohibited by law
<br />and only to the extent that such will not make this loan usurious),
<br />but excluding any income ta\, Stale or Federal, imposed on
<br />Lender, and will file the official receipt showing such payment
<br />with the Lender. Upon violation of Ihis undertaking. or if the
<br />Borrower is prohibited by any law now or hereafter existing from
<br />paying the whole or any portion of the aforesaid taxes, or upon
<br />the rendering of any court decree prohibiling the paymem by the
<br />Borrower of any such taxes, or if such law or decree provides that
<br />any amount so paid by the Borrower shall be crediled on Ihe debt.
<br />Ihe Lender shall have lhe right to gi,,: nincl~ days' writlen notice
<br />to [he owner of the prcmises, requiring Ihe paymem of Ihe deb!.
<br />If such notice be given, the saId debl shall bccome due, payable
<br />and collectible at the expiralion of said ninelY days.
<br />
<br />6. That should the Borrowcr fail [0 pay any ~um or keep any
<br />covenant provided for in this instrument, then the Lender, at its
<br />option, may payor perform the same, and all expendilures so
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<br />Page 2 of 5
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<br />HUD-92143DT
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