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<br />______ ___ _______n_~~-------~t~?~t'!8-1 Q3 59 7
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<br />Borrower and Lender covenant and agree as follows: or if the Lender acquires the properly otherwise after default, the
<br />Lender shall apply, at the time of thc commencement of such
<br />proceedings, or at the time the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said note.
<br />
<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 installmenl due date.
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<br />2. That, together with, and in addition to, the monthly payment~
<br />of principal and interest payable under the terms of the notc secured
<br />hereby, the Borrower will pay to the Lender. on the first day of cach
<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, if any, next due. plus the
<br />premiums that will next become due and payable on policies of fire
<br />and olher hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (all as estimated by the I.,'"der)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one ( I ) month prior to the date whcn such ground
<br />rents, premiums, taxes and assessments will ~me deliquent, 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 mentioned in the prcceding subsection of this
<br />paragraph and all payments to be made under the note !oCcured
<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 the Lender to the fo1\owing 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 />(IU) 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 madc good by the Borrower prior to the due date of lhe
<br />next such payment, constitute an evcnt of default under this
<br />mortgage. The Lender may collect a "late charge" not to exceed four
<br />cents (44 I for each dollar ($1 ) of each pa ymenl more than fifteen
<br />(15) days in arrears to cover the extra expense involved 10 handlinl!
<br />delinquent paymenls.
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<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 prcceding shall exceed the amount of payments
<br />actually made by the Lender for ground rents. taxes and assessments
<br />or insurance premiums. as the case may be, such excess. If the loan IS
<br />current, atthc 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 the Borrower under (al of paragraph 2 pr~edlng 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 become due and
<br />payable. then the Borrower shall pay to the Lender any amount
<br />neassary to make up the deficicncy. on or beforc the date when
<br />payment of such ground rents, taxes. as!>Cssments. or msurancc
<br />premiums shall be due If al any time the Borrowcr shall tender III
<br />the Lender, In accordllncc: with Ihe prOVISions of the nole secured
<br />hereby, full payment of Ihc ,:ntirc Indcbledness represented thercb~,
<br />the Lender shall, In compuLng the amount of such mdebtedness,
<br />credll 10 the account of the Borrowcr anv balann: rcmalnlng In th('
<br />funds accumulated under the proVISions ~,f (a) Ilf paragraph 2 hercof
<br />If there shall he a default under any of the proviSIOns of thl~,
<br />insttumenl resulting in a public 'ilIle of the prcmisl'S CllliCred hcrchy,
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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 />5. The Borrower will pay all taxes which 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 th'e debt 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 rcceipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrowcr is prohibited by any
<br />law now or hereafter existing from paying the whole or any ponion
<br />of the aforesaid taxes, or upon the rendering of any coun decree
<br />prohibiting the payment by the Borrower of any such taxes. or if
<br />such law or decree provides that any Amounl so paid by the
<br />Borrower shall be credited on the debt, the Lender shall have the
<br />right to give ninety days' written notice to the owner of the premises.
<br />requiring the paymcnt of Ihe 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 10 pay any sum or keep any
<br />covenant provided for in this instrument, then the Lender. at its
<br />oplion. may payor perform thc same, and all expendilures so made
<br />shall be added to the principal sum owing on the said DOle., shall
<br />be secured hereby, and shall bear interest at the rate set fonh 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 Ihe payment of the nOle and all sums
<br />secured hereby in case of a default in thc performance of any of lhe
<br />terms and conditions of this instrument or the said nOIc, all the rents.
<br />revenues and income to be derived from the said premises during
<br />such time as the indebledness shall remain unpaid. and the Lender
<br />shall havc power to appoint any agent or agents It may desire for the
<br />purpose of repairing said premises and of rcnting the same and
<br />calleellng the rents, revcnues and income. and it may payout of saId
<br />mcomes all cxpenses of rcpainng said premIse:;. and necessary
<br />commiSSions and expenscs Incurred in rcnting and managing the
<br />slime and of collecting rentals therefrom; the balance remaining, if
<br />any. to be apphed toward thc discharge of said indebtedness.
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<br />R That the Borrower will keep the improvemcnts now existing or
<br />hereafter ereeled on the property. IDsured as ma~ be required from
<br />time 10 lime h~ Ihe Lender against loss by fire and olhcr haurds.
<br />casualties and contingencies ID such amounts and for such penods as
<br />may be re4ulred by the Lender and will pay promptly. when due.
<br />any premiums on such Insurance, provision for payrnenl of which
<br />has not bern made hcrcmbefore, All insurancc shall be carnoo 10
<br />companies approved by the Lender and the poliCIes and renewal~
<br />thch:ol shallll(' hrld b~ the Ll'ndcr and have auached thrreto los~
<br />payank daUSl'S In favor of and In Inrm au'cplahle to thl' I--t'nder In
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<br />HUD.12143DT. ,
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