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<br />88- 111323 2
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<br />Borrower and Lender covenant and agree as follows:
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<br />I. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in part on
<br />any installment due date.
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<br />2. That, together with, and in addition to. the monthly payments
<br />of principal and 'interest payable under the terms of the note secured
<br />hereby, the Borrower will pay to the Lender, on the first day of each
<br />month until the said note is fully paid. the following sums:
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<br />(a) A sum equal to the ground rents, jf any, next due, plus the
<br />premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (all as estimated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one ( I ) month prior to the date when such ground
<br />rents, premiums, taxes and assessments will become deliquenl, such
<br />sums to be held by Lender in trust to pay said ground rents,
<br />premiums, taxes and special assessments; and
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<br />(b) All payments meiltioned in the preceding subsection of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall be added together. and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to be
<br />applied by tbe Lender to the following items in the order set forth:
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<br />(I) ground rents. taxes, assessments, fire and other hazard insur-
<br />ance premiums;
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<br />(II) interest on the note secured hereby;
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<br />(III) amortization of the principal of said note; and
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<br />(IV) late charges,
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<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall. unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default under this
<br />mortgage. The Lender may collect a "late charge" not to exceed four
<br />cents (4C) for each dollar (S I ) of each payment more than fifteen
<br />(15) days in arrears to cover the extra expense involved in handling
<br />delinquent payments,
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<br />3. That if tbe total of the payments made by the Borrower under
<br />(al of paragraph 2 preceding shall exceed the amount of payments
<br />actually made by the Lender for ground rents. taxes and assessments
<br />or insurance premiums, /IS the case may be. such excess. if the loan is
<br />current, at the option of the Borrower. shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower. or
<br />refunded to the Borrower, If, however. the monthly payments made
<br />by tile Borrower under (8) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents. taxes and assessments or insurance'
<br />premiums. as the case may be, when the same shall becomc due and
<br />payable, then the Borrower shall pay to the Lender any amount
<br />necessary to make up the deficiency. on or before thc dale when
<br />payment of such ground rents. taxes. assessments. or in~urance
<br />premiums shall be due, If at any time the Borrower shall tender \0
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby.
<br />the Lender shall. in computing the amount of such indebtedness.
<br />credit to the account of the Borrower any balance remalOmg in the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereof
<br />If there shall be a default under any of the Ilruvisions of this
<br />illltrument resuhing in a public sale of thc premises cover cd herehy.
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<br />or if the Lender acquires the property otherwise after default, the
<br />Lender shall apply, at the time of the commencement of such
<br />proceedings. or at tbe time the property is otherwise acquired, the
<br />balance then remaining in tbe funds accumulated under (a) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said note.
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<br />4. That the Borrower will pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver the official, receipts therefor to the
<br />Lender.
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<br />S. The Borrower will pay all taxes whicb may be levied upon the
<br />Lender's interest in said real estate and improvements, and which
<br />may be levied upon this instrument or the d,ebt secured hereby (but
<br />only to the extent that such is not prohibited by law and only to the
<br />extent that such will not make this loan usurious), but excluding any
<br />income tax, State or Federal, imposed on Lender, and will file the
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or hereafter existing from paying the whole or any portion
<br />of the aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes. or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt, the Lender sbalJ have the
<br />right to give ninety days' written notice to the owner of the premises.
<br />requiring the payment of the debt. If such notice be given. the said
<br />debt shall become due, payable and collectible at the expiration of
<br />said ninety days.
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<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this instrument, then the Lender. at its
<br />option, may payor perform the same. and all expenditures so made
<br />shall be added to the principal sum owing on the said DOte. shall
<br />be secured hereby, and shall bear interest at the rate set forth in the
<br />said nole, until paid.
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<br />7, That the Borrower hereby assigns. transfers and sets over to the
<br />Lender, to be applied toward the payment of the note and all SUIll5
<br />secured hereby in case of a default in tbe perlonnance of any of the
<br />terms and conditions of this instrument or the said noIe.. all the mils.
<br />revenues and income to be derived from the said premises during
<br />such time as the indebtedness shall remain unpaid. and the I..eDder
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose of repairing said premises and of renting tbe same and
<br />collecting the rents. revenues and income. and it may pa~' out of said
<br />incomcs all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />same and of collecting rentals therefrom; the balance remaining. if
<br />any. to be applied toward the discharge of said Indebtedness.
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<br />8, That the Borrower will keep the improvements now existing or
<br />hereaftcr crected on the property. insured as may be required from
<br />lime to time by the Lender against loss by fire and other hazards.
<br />casualties and contingencies in such amounts and for soch periods as
<br />may be reqUired by the Leeder and will pay promptly. when doe.
<br />any premiums on such insurance. provision for payment or wIrich
<br />has not been made hereinbefore, All insurance shall be carried in
<br />companies approved by the Lender Ind the policies and renewals
<br />thereof' shall be held by the Lender and ha\'e attached thereto 1()Sl,
<br />payable clauses ID favor of and in form ICl.'Cp18ble to the Lender. In
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<br />HUD.121UO'r,1
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