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<br />88-
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<br />103716
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<br />ment more than fifteen (1 S) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
<br />
<br />r
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<br />The Mortgagor In order more fully to protect tbe security of
<br />this Mortgage, agrees:
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<br />I. That he will pay the indebtedness. as hereinbefore provided.
<br />Privilege is reserved to pay the debt in whole or in part on any
<br />inslallment due date.
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<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable under the terms of the
<br />note secured hereby, the Mortgagot will pay to the Mortgagee,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
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<br />(a) Amount sufficient to provide the holder hereof with funds
<br />to pay the next mortgage insurance premium if this instrument
<br />and the note secured hereby 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 Development, as follows:
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<br />(1) 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 Act, 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 insurance 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 the National Housing Act, as .
<br />amended. and applicable Regulations thereunder; or
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<br />(11) If and so long as said ' note 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 (1/2) per centum of the average outstanding
<br />balance due on the note computed without taking into account
<br />delinquencies or prepayments;
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<br />(b) 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
<br />fire and other hazard insurance covering the mortgaged property,
<br />plus taxes and assessments next due on the mortgaged 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 />(1) month prior to the date when such ground rents, premiums.
<br />taxes and assessments will become delinquenl. such sums to be
<br />held by Mortgagee in trust to pay said ground rems, premiums,
<br />taxes and special assessments; and
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<br />(c) All payments mentioned in the two preceding subsections
<br />of this paragraph and all payments 10 be made under the note
<br />secured hereby shall be added together, and the aggregate amount
<br />thereof shall be paid by the Mortgagor each month in a single
<br />payment to be applied by the Mortgagee to the following items in
<br />the order sel forth:
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<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 mortgage insurance premium), as the case may
<br />be;
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<br />(II) ground rents, laxeSt assessments, fire and other hazard
<br />insurance premiums;
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<br />(Ill) interest on the note secured hereby;
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<br />(IV) amortizalion of lhe principal of said nole; and
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<br />(VI laIC charges.
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<br />Any deficiency in the amount of such aggregate monthly pay..
<br />ment shall, unless made good by the Mortgagor prior to the due
<br />date of the next such payment. constitute an event of default
<br />under this mortgage. The Mortgagee may collect a "late charge"
<br />not to exceed four cents (4l;) for each dollar ($1) of each pay.
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<br />3. That if the total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 preeeding 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, such
<br />excess. if the loan is current, at the option of the Mortgagor,
<br />shall be credited by the Mortgagee cn subsequ~nt payments to be
<br />made by the Mortgagor, or refunded to the Mortgagor. 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 Mortgagor shall pay to the Mortgagee any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Mortgagor shall tender
<br />to the Mortgagee, in accordance with the provisions of the note
<br />secured hereby. full payment of the entire indebtedness
<br />represented thereby. the Mortgagee shall. in computing the
<br />amount of such indebtedness. credit to the account of tbe Mort-
<br />gagor all payments made under tbe provisions of <a) paragraph 2
<br />hereof which the Mortgagee bas 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 />the time of the commencement of such proceedings, or at the
<br />time the property is otherwise 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 />under said note, and shall properly adjust any payments which
<br />shall have been made under (a) of paragraph 2.
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<br />4. That the Mortgagor will pay ground rents. 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 Mortgagee may
<br />pay the same; and that the Mortgagor will promptly deliver the
<br />official receipts therefor to the Mortgagee.
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<br />5. The Mortgagor will pay all taxes which may be levied upon
<br />the Mortgagee's interest in said real estate and improvements,
<br />and which may be levied upon this mortgage or the debt secured
<br />hereby (but only to the extent that such 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 file the official receipt showing
<br />such payment with the Mortgagee. Upon violation of this under-
<br />taking, or if the Mortgagor is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree pro-
<br />hibiting the payment by the Mortgagor 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 lhe mortgage debt, the Mortgagee
<br />shall have the right to give ninety days' written notice to the
<br />owner of lhe mortgaged premises, requiring the payment of the
<br />mortgage debt. If such notice be given, the said debt shall
<br />become due, payable and collectible at the expiration of said
<br />ninety days.
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<br />6. That should the Mortgagor fail to pay any sum or keep any
<br />covenant provided for in this mortgage. then the Mortgagee. at
<br />its option, may payor perform the same, and all expenditures so
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