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<br />88- 104174
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<br />The Monpaor In order more fully to protect tbe lleCurlly of
<br />lbll MorfI..e, ..rees:
<br />
<br />ment more than fifteen (I S) days In arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
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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 />installment due date,
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<br />2. That, together with, and in addition to, the monthly
<br />paymentJ of principal and interest payable under the terms of the
<br />note secured hereby, the Mortgasor will pay to the Mortg.gee,
<br />on the fint day of each month until the said nOle is fully paid,
<br />the following sums:
<br />
<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 IICCIIred hereby are insured, or a monthly charge (in
<br />lil!u of a mon,age insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development, as follows:
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<br />(I) If and so tong 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 hotder one (I) 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 />(II) If and so long as said note of even date and this in-
<br />strument arc held by the Secretary of Housing and Urban
<br />Development, a monthty charge (in lieu of a mon,a,e 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 oU15tanding
<br />bal.nce 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 renu, if any, next due, plus the
<br />premiums that will next become due and payable on policies of
<br />fir: and other hazard insurance covering the mortgaged propeny,
<br />plus tues and assessments next due on the mortgaged property
<br />(aU as estimated by the Mon'llIec) less all sums already paid
<br />therefor divided by the number of months to elapse before one
<br />(I) month prior to the date when such ground rents, premiums,
<br />lUes and assessments will become delinquent, such sums to be
<br />held by Mortsaaee in trust to pay said ground rents, premiums,
<br />tues and special assessmenu; and
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<br />(c) All paymenu mentioned in the two preceding subsections
<br />of this paragraph and all payments to be made under the note
<br />IICCIIred hereby shall be added tOIlet her , and the apres.te amount
<br />thereof shall be paid by the Mortlagor each month in a sinsle
<br />payment to be applied by the Mortgagee to the following items in
<br />the order set forth:
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<br />(I) premium charges under the contra.;t of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in lieu of mor/gllBe insurance premium), as the case may
<br />be;
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<br />(II) around rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
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<br />(111) interest on the note secured hereby;
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<br />(IV) amortization of the principal of said note; and
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<br />(V) lale cbarges,
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<br />Any deficiency in the amount of such aggregate montbly pay.
<br />ment shall, unless made good by the Mortgagor prior to the due
<br />date of the nellt such payment, constitute an event of default
<br />under this mortllBBe. The Mortgalee may collect a "lale cbarge"
<br />not to exceed four cents (4C) for each dollar (51) of each pay.
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<br />3. That if the total of the payments made by the MortllBBor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Mortgagee for ground rents, talles
<br />and assessments or insurance premiums, as the case may be, such
<br />excess, if the loan is current, at the option of the Mortll8llor,
<br />shall be credited by the Mortgagee on subsequent payments to be
<br />made by the Mortgagor, or refunded 10 the MortllBBor. If,
<br />however, the monthty payments made by the Mortsaaor under
<br />(b) of paragraph 2 preceding shall not be sufficient to pay
<br />ground rents, tBlles and asscssments 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, talles, assessments, or insurance
<br />premiums shall be due. If at any time the Mortll8llor 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 sucl: Indebtedness, credit to the lIlXOunt of the Mort-
<br />gagor all payments made under the provisions of (a) paragraph 2
<br />hereof which the Mortgagcc 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 resultina in a public sale
<br />of the premises covered hereby, or if the Mortgagee acquires the
<br />property otherwise after default, the Mortsaaee shall .pply. at
<br />the time of the commencement of such proceedings, or at the
<br />lime the property is otherwise acquired, the balance then remain-
<br />ing in the funds accumutated under (b) of paragraph 2 precedina.
<br />as a credit against the amount of principal then remaining unpaid
<br />Ulidci' said note, and shall property 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, laJteS,
<br />assessments, water rates, and other governmental or municipal
<br />charles, fines, or impositions, for which provision has not been
<br />made hereinbefore, and in defautt thereof the Mortsaaee may
<br />pay the same; and that the Mortgagor will promptly deliver the
<br />official receipts therefor to Ihe Mortgagee.
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<br />5. The Mortgallor will pay altl8lles which may be levied upon
<br />the Mortaasee's interest in said real estate and improvements,
<br />and which may be tevied 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 elltent that such will not m....e this loan
<br />usurious), but excluding any income tBll, Slate or Federal, im-
<br />posed on Mortgagee, and will file the offICial receipt 5howing
<br />such payment with the Mortgagee. Upon violation of thi:! under-
<br />lakina. or if Ihe Mortgallor is prohibited by any law now or
<br />hereafter ellisting from payinll the whole or any portion of the
<br />aforesaid tilles, or upon the rendering of any COllrt dcocrcc pro-
<br />hibitinll the payment by the Mongllior of any such lUes, or if
<br />such law or decree provides that any amount so paid by the
<br />Monlallor .hall be credited on the mortgage debt, the Mortll8llcc
<br />sh.1I have the right to give ninety days' written notice to the
<br />owner of the mortgaged premiscs, 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 />ninelY days.
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<br />6. That should the Mortgagor fail to pay any sum or keep any
<br />covenanl 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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<br />Page 2 or 4
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