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<br />88--103503
<br />
<br />Tbe Mortpgor 10 order more fully to protect the RCUrity of
<br />this Mona.. agrees:
<br />
<br />1. That he will pay the indebtedness, as lIereinbefofe providcd.
<br />Privilege is reserved to pay the debt in whole or in part on any
<br />installment due date.
<br />
<br />2. That, together with, and in addition to, thc monthly
<br />payments of principal and interest payable under the terms of Ihc
<br />note secured hereby, the Mongagor will pay to the Mongagee,
<br />on thc first day of each month until the said note is fully paid,
<br />the following sum~:
<br />
<br />(a) Amount sufficient to provide the holder hereof with funds
<br />to pay the next mongage insurance premium if this instrument
<br />and thc note secured hcreby are insured, or a monthly charge (in
<br />lieu of a mortgage insurance premium) if they are held by the
<br />Secretary of Housing and Urban Developmenl, as follows:
<br />
<br />en If and so long as said note of even date and this in-
<br />strument are insured or are reinsured under the provisions of the
<br />National Housing A~ an amount sufficient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the an-
<br />nual mortgage insurancc 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 thc National Housing Act, as .
<br />amended, and applicable Regulations thereunder; or
<br />
<br />(Il) If and so long as said notc of even date and this in-
<br />strument are held by the Secretary 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 />balancc due on the note computed without taking into account
<br />delinquencics or prepayments;
<br />
<br />(b) A sum equal to thc ground rents, if any, next due, plus the
<br />premiums that will next become due and payablc on policies of
<br />fire and other hazard insurance covering the mongaged propeny,
<br />plus taxes and assessments next due on the mongaged property
<br />(all as estimated by the Mortgagee) less all sums already paid
<br />therefor divided by the number of months to elapse before one
<br />(I) month prior to the date whcn such ground rents, prcmiums.
<br />taxes and assessments will becomc delinquent. such sums to be
<br />held by Mongagee in trust to pay said ground rents, premiums,
<br />taxes and special assessmcnts; and
<br />
<br />(c) Ail payments mentioned in thc two preceding subsections
<br />of this paragraph and all payments to be made under the note
<br />secured hercby shall bc added together. and the aggregate amount
<br />thereof shall be paid by the Mortgagor each month in a single
<br />paymenl to be applied by the Mongagee to the following items in
<br />the order sct forth:
<br />
<br />(I) premium charges undcr thc contract of insurance with
<br />the Secretary of Housing and Urban Developmcnt, or monthly
<br />charge (in lieu of mortgage insurance premium), as the case may
<br />be;
<br />
<br />(lJ) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />
<br />(Ill) interest on the notc securcd hercby;
<br />
<br />(IV) amortization of the principal of said note; and
<br />
<br />(V) late charges.
<br />
<br />Any deficiency in the amount of such aggregate monthly pay-
<br />ment shall, unless made good by the Mongagor prior to the due
<br />dale of the next such payment, constitute an event of dcfault
<br />under this mortgagc. The Mortgagee may collect a "late charge"
<br />not to cxceed four cents (4C) for each dollar ($ 1) of each pay-
<br />
<br />ment more than fifteen (15) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
<br />
<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, sucb
<br />excess. if the loan is current, at tbe option of the Mortgagor,
<br />sball be credited by the Mortgagee on subsequent payments to be
<br />made by the Mortgagor, or refunded to the MortsaB,or. If.
<br />however, the 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 Mongagor shall pay to the Mortgagee any amount
<br />necessary to make up the deficicncy, on or before the date when
<br />paymcnt of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Mongagor shall tender
<br />to thc Mortgagee, in accordance with tbe provisions of the note
<br />secured hereby, full payment of tbe entire indebtedness
<br />represented thereby, the Mongagee shall, in computing the
<br />amount of such indebtedness, credit to tbe account of the Mort-
<br />gagor all payments made under thc provisions of (a) paragrapb 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 />thc time of the commencement of such proceedings. or at the
<br />time the property is othcrwise 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 />undcr said note. and shall properly adjust any payments which
<br />shall have been made under (a) of paragraph 2.
<br />
<br />4. That the Mongagor will pay ground rcnts, taxes,
<br />assessments, water rates, and other governmental or municipal
<br />charges, fines, or impositions, for which provision has not been
<br />made hereinbefore. and in default thereof the Mongagee may
<br />pay the same; and that the Mortgagor will promptly deliver the
<br />official receipts thcrefor to thc Mongagee.
<br />
<br />S. Thc Mortgagor 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 mongage or the debt secured
<br />hereby (but only to the extent that sucb is not prohibited by law
<br />and only to the extent that such will not make this loan
<br />usurious). but excluding any income tax, State or Federal, im-
<br />posed on Mortgagee, and will me the official receipt showing
<br />such payment with the Mortgagee. Upon violation of this under-
<br />taking. or if thc Mortgagor is prohibited by any law now or
<br />hcreafter existing from paying the whole or any ponion of the
<br />aforesaid taxes, or upon the rendering of any coun decree pro-
<br />hibiting the paymenl by the Mongagor 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 thc mortgage debt, the Mongagee
<br />shall havc the right to give ninety days' written notice to the
<br />owner of thc mortgaged premises. requiring the payment of the
<br />mongage debt. If such notice be given, the said debt shall
<br />become duc, payable and collectible at the expiration of said
<br />ninety days.
<br />
<br />6. That should the Mortgagor fail 10 pay any sum or keep any
<br />covcnant provided for in this mongagc, thcn thc Mongagee, at
<br />its option, may payor perform the same. and all expenditures so
<br />
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