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<br />88- 104202
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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
<br />part on any installment due date.
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<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and imerest payable under the terms of
<br />the note secured hereby, the Borrower will pay to the Lender,
<br />on the firsl day of each month until the said note is fully paid,
<br />the following sums:
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<br />(a) A sum equal to the ground rems, if any. nexl due, plus
<br />the premiums that will next become due and payable on policies
<br />of fire and other hazard insurance covering the property, plus
<br />lUes and assessments next due on the properly (all as estimated
<br />by the Lender) less all sums already paid therefor divided by the
<br />number of months 10 elapse before one (I) month prior to the
<br />dale when such ground rents, premiums. taxes and assessments
<br />will become delinquent, such sums to be held by Lender in trust
<br />to pay said ground rents, premiums. taxes and special
<br />assessmenl5; and
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<br />(b) All payments mentioned in the preceding subsection of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added lDgether. and the aggregate
<br />amoun! thereof shall be paid by the Borrower each month in a
<br />single paymem 10 be applied by the lender LO the following
<br />items in the order set forth:
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<br />(I) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
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<br />(II) imerest 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) laic charges.
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<br />Any deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by the Borrower prior to the
<br />due dale of the next such payment. constilute an event of
<br />default under this mOrlgage. The lender may collect a "late
<br />charge" not to exceed four cents (4f) for each dollar ($ I) of
<br />each payment more than fifteen (15) days in arrears to cover Ihe
<br />extra expense involved in handling delinquem payments.
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<br />3. That if the total of the payments made by Ihe Borrower
<br />under (a) of paragraph 2 preceding shall exceed Ihe amount of
<br />payments aClually made by the Lender for ground rents, taxes
<br />and assessments or insurance premiums, as Ihe case may be.
<br />such excess, if the loan is current, at the option of the
<br />Borrower, shall be credited by the Lender on subsequem
<br />paymcol5 10 be made by the Borrower, or refunded to the
<br />Borrower. If, however, Ihe monthly payments made by the
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground renl5, taxes and assessments or
<br />insurance premiums, as the case may be, when Ihe same shall
<br />become due and payable, then the Borrower shall pay 10 the
<br />Lender any amounl necessary to make up Ihe deficiency, on or
<br />before the dale when payment of such ground rents, taxes,
<br />asscssmenlS, or insurance premiums shall be due. If at any lime
<br />the Borrower shall tender 10 the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness represc:nled thereby, Ihe Lender shall, in computing
<br />the amount of such indebtedness, credil 10 the accoum of the
<br />Borrower any balance remaininIl in the funds accumulated under
<br />the provisions of (a) of paragraph 2 hereof. If there shall be a
<br />default under any of the provisions of Ihis instrument resultillll.
<br />in a public sale of Ihe premises covered hereby, or if the Lender
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<br />acquires the properly otherwise after default, the Lender shall
<br />apply, at the lime of the commencement of such proceedings, or
<br />at the time the properly is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, as a credit against the amount of principal then
<br />remaining unpaid under said note.
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<br />4. That the Borrower will pay ground rems, taxes,
<br />assessments, waler rales, and other governmental or municipal
<br />charges. fines, or imposilions, for which provision has nOI been
<br />made hereinbefore, and in default lhereof the Lender may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts therclu, to the Lender.
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<br />5. The Borrower will pay all taxes which may be levied upon
<br />the Lender's interest in said real estate and improvements. and
<br />which may be levied upon this instrument or the debl secured
<br />hereby (but only to the extem Ihat such is nOI prohibited by law
<br />and only to the extem that such will nOI make this loan
<br />usurious), bUI excluding any income tax, State or Federal,
<br />imposed on Lender. and will file the official receipt showing
<br />such payment with the Lender. Upon violation of this
<br />undenaking, or if the Borrower is prohibiled by any law now or
<br />hereafler existing from paying the whole or any ponion of Ihe
<br />aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such Ialles. or
<br />if such law or decree provides lhat any amount so paid by the
<br />Borrower shall be credited on the debt. the Lender shall have
<br />the right to give ninety days' wrillen notice to the owner of the
<br />premises, requiring the payment of the debt. If such notice be
<br />given. the said debl shall become due, payable and collectible at
<br />the expiration of said ninely days.
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<br />6. That should the Borrower fail 10 pay any sum or keep any
<br />covenam provided for in this instrument, then the Lender, at its
<br />option, may payor perform the same, and all expendilUfCS so
<br />made Shllll be added to the principal sum owing on Ihe said
<br />note, shall be secured hereby, and shall bear imerest al lhe rale
<br />sel forth in the said note, umil paid.
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<br />7. That the Borrower hereby assigns, transfers and sets over
<br />to the Lender, to be applied toward Ihe payment of the nOle
<br />and all sums secured hereby in case of a default in the
<br />performance of any of lhe lerms and condilions of this
<br />inslrument or the said note, all the rents, revenues and income
<br />ro be derived from the said premises during such time as the
<br />indebtedness shall remain unpaid, and the Lender shall have
<br />power 10 appoint any agem or agems it may desire for lhe
<br />purpose of repairing said premises and of renling the same and
<br />collecting the rents, revenues and income, and it may pay OUI of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and expenses incurred in renling and
<br />managing the same and of collecting rentals Iherefrom; Ihe
<br />balance remaining, if any, to be applied toward the discharge of
<br />said indebtedness.
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<br />8. That the Borrower will keep the improvemenl5 now
<br />existing or hereafter erecled on the properlY, insured as may be
<br />required from time to time by the Lender against loss by fire
<br />and other hazards, casualties and contingencies in such amounts
<br />and for such periods as may be required by the Lender and will
<br />pay promptly, when due, any premiums on such insurance,
<br />provision for payment of which has not been made
<br />hereinbefore. All insurance shall be carried in companies
<br />approved by the Lender and the policies and renewals Ihereof
<br />shall be held by the lender and have allached Ihereto loss
<br />payable clauses in favor of and in form acceptable 10 the
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<br />HUD-92143DT. ,
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