|
<br />88- 104338
<br />
<br />~
<br />
<br />Borrower and Lender covenant and agree as (allows:
<br />
<br />J. That Borrl>wer will pay Ihe Indebtedn..., as hereinbefore provid-
<br />ed. Privilege is rcscrved to pay the debt In whob or In pari on any In-
<br />stallment due date.
<br />
<br />2. That, together with, and In addition to, Ihe monthly paymenlli
<br />of principal and Interest payabie under Ihe terms of the note secured
<br />herehy, Ihe Borrower will pay to the Lender, on the lirs' day of each
<br />month until the said note is fully paid, the following sums:
<br />
<br />(a) Amounl sulllelcnl to provide lhe holder herL'Of will, funw to
<br />pay the nelt mortgage insurance premium Jlthls Instrument and the
<br />note secured hereby are insured, or a monthly charge (in Ueu oj Q
<br />mortgage In....ranc. premium) If they are held hy the Secretary 01
<br />Housing and Urban Development, as follows:
<br />
<br />(I) If and so long as said nole 01 even date ond Ihis Inslrument
<br />are insured Df aU' reinsured under the, provisions of Lhe Na!iumal
<br />Housing Act, an amount sunicien. to accumulate in the hands of the
<br />holder one (1) month prior to its due date the annual mortgage in-
<br />surance premium in order to provide such holder with funds to pay
<br />such premium to the Secrehny of Housing and Urban Development
<br />pursuant to the National Housing Act, as amended, and applicable
<br />Regulations thereunderj or
<br />
<br />(II) If and so long as said note of even date and this instrument
<br />are held by the Secretary of Howing and Urban Development, a
<br />monthly charge (in 'leu oj a mortgage insurance premium) which shan
<br />be in an amounl equal to one-Iwellth (1/12) of one-half (112) per cen-
<br />tum of the average outstanding balance due on the nole computed
<br />without taking into account delinquencies or prepayments;
<br />
<br />(b) A sum equal to the ground renls, II any, nelt due, plus the
<br />premiums that will nesl become due and poyable on policies of fire
<br />and other hazard Insurance covering the property, plus tues and
<br />assessmenlS nell due on the property (all... esllmaled by the Lender)
<br />I... aU sums alreody poid therelor divided hy the number 01 months
<br />to elapse before one (1) month prior to the dat~ when such ground
<br />rents, premiums, taxes and assessments will become dellnquent. such
<br />SUJIl!ii to be held by Lender in trust to pay said ground rents.
<br />premiums, taxes and special assessments; and
<br />
<br />(r) AU payments mf'ntionec1ln th~ 'w', prP!'t'ding sub:.:ccUons of thl.!
<br />paragroph and all payments to be mode under the note _ured
<br />hereby shan be added together, and the aggregale amount thereof
<br />shall be paid by the Borrower each manU. In a single payment tu be
<br />applied by the Lender to the following items in the order set forth:
<br />
<br />(I) premium charges under the contract of huurance with the
<br />Secretary of Howing and Urban Development, or monthly chKrge On
<br />lieu oj mortgage imuroncl!' premium), as the case may be;
<br />
<br />(II) ground rents, taxes. assessments, fire and other hKz.ard in-
<br />surance premiums;
<br />
<br />(III) in' crest on the note secured herebYi
<br />
<br />(IV) IImortization of the principal of swid note; and
<br />
<br />(V) lale charges.
<br />
<br />Any deficiency (n tbe amount of such aggregate monthly payment
<br />shall, unl... made good by the Borrower prior 10 the due dale of the
<br />nut such p.ymenl. corutltute an event of default under this mort-
<br />ga.... The Lender may collccl a "late charge" nol to elceed loor cents
<br />(4') for ellCh doIlor ('I) of each payment more Ihan fifteen (15) day.
<br />in arrears to cover lhe eltra expense involved in hKndling delinquenl
<br />paymentJ.
<br />
<br />3. That If the toto! of the payments made by the Borrower onder
<br />(b) of paragraph 2 prec<dlng shall exceed Ihe amount of payments ac-
<br />tually made by the Lender for ground rents, lues and msessnumts or
<br />insuraDCU prc:mlums, as the case may be, JUch excess. if Ihe loan Is
<br />current, 01 the optlon 01 the Borrower, shall be credited by Ihe
<br />Lender on subsequent payments to be mlde b)' the &rrower, or
<br />refunded to the Borrower, If, however. the mOl1thl)' payments made
<br />by the Borrower onder (b) 01 poragraph 2 pre.."tX!lng shan nol be .u[fl.
<br />::.~!l! to pUj.' :round renb, taxes and usessmenb or insurance
<br />premiums, &I the CIlM! may be, when the same shall become due Ilnd
<br />payable, lben the Borrower shall pay to the Lender any amount
<br />nec:lSSU)' t.u make lip the deficiency. on or before the date when p.y-
<br />ment of such llround rents, taxes., asseumenLJ. or I f\Surancc Inemlwns
<br />sh.n be due, II at Bny lime lhe Borruwer ,han Ie ler 10 the: l..end~r,
<br />'n accordance wU.h the provtsiofU of the nole st'!l .xI hereby. full pay.
<br />ment of lhe enUre Indebtedness represcntl.-d th. , the Lemler m.U,
<br />
<br />In com puling the amount of such Indebtedness, credit to the account
<br />of the Borrower .11 payments made under the provisions of (a) of
<br />paragraph 2 hereof which the Lender has not become obligated to pay
<br />to the Secrelary olllouslng and Urban Development and any balance
<br />remaining In the funds accumulated undor the provisions 01 (b) of
<br />paragraph 2 hereof. If tbere shall be a debult under any of the provi-
<br />sions of tbls Instrument resulting in a public sale of the premises
<br />covered hereby, or if the Lender acquires the property otherwise .fter
<br />default, the Lender shall apply, a' the time 01 the eommencement of
<br />such pux..et.-dlngs, or ut the time the propert)' is otberwi5c acquired.
<br />Ihe balance then remaining In the fonds accumulated under (h) of
<br />paragraph 2 IlrC<.-eding, us a credit against the amount 01 princlpal
<br />then remaining unpaid under said nole, and .hall properly adjust any
<br />payments which shall have been made under (a) 01 paragraph 2.
<br />
<br />4. That the Borrower will pay ground rents. tues. assessments,
<br />water rate.'i, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefore, and
<br />io default thereof the Lender may pay the samei and that the Bor-
<br />rower will promptly deliver the official receipts therefor to the
<br />Lender,
<br />
<br />5, The Borrower will pay ull taxes which may be levied upon the
<br />Lender's interes~ in said real estate and improvements, and which may
<br />be levied upon this Instrument or Ihe debt secured hereby (but only 10
<br />the cxtent that such is not prohibited by law and ani)' to the extent
<br />that such will not make this loan usurious). bul excluding any income
<br />tux, State or Federal, imposed on Lender, aDd will file the official
<br />receipt showing such payment with the Lender. Upon violation of this
<br />undertaking, or if the Borrower is prohibited by Bny law now or
<br />hereafter cxisUng from paying the whole or Bny portion of the
<br />Bforcsuld taxes, or upon the rendering of any court decree prohibiting
<br />the paymenl by the Borrower of any such tues, or if such law or
<br />decree providei that any amount so paid by the Borrower shall be
<br />credlled on the debt, the Lender shaU have the rlghl 10 give nlnely
<br />days' written notice to the owner of the premises, requiring the pay~
<br />ment of the debt. if SUcll nutice be given, the said debt shall become
<br />due, paYKble and t..'Olh.-ctible ut the expiration of suid ninety days.
<br />
<br />6, Thai should the Borrower fail to pay IIn)' sum or keep any cove-
<br />nant provided for in thts instrument, then the Lender, al its option.
<br />ma)' payor perform the sanle, and all expenditures so made shall be
<br />added to the principal sum owing on the above note, shall be secured
<br />hereh)'. u...,d shull bear lulcrc:.il ul the rute !ict forth to the mid alote,
<br />until paid,
<br />
<br />7, That the Borrower hereby assigns, transfers and sets over to tlle
<br />Lender, to be applied toward the paymenl of the note and all S11Im
<br />secured hereby In case of a default in the performance of any of the
<br />terms and condiUons of this instrument or the said notc. aU the rents,
<br />revenues and income to be derived from the said premises during such
<br />time M5 tile Indebtedness shall remain unpaid, and the Lender shall
<br />have power to appoint any agent or agents it may desire for the pur-
<br />pose of repairing said premises HDd of renling the same and collecting
<br />the rents, revenues and income, and it may payout of said incomes
<br />all expenses of repairing said premises aDd net.'CSSary commissions and
<br />expenses Incurred in renting and managing the same and of collecting
<br />rentals therefrom; the balance remaining, if un)'. to be applied toward
<br />the discharge of said indebtedness.
<br />
<br />8, That the Borrower will kccp th..: Improvements now existing or
<br />hereafter erected on the property. Insured as may be required from
<br />time 10 time by the Lender against loss by fire and other ha:za.rds.
<br />casualties and contingencies in such amounts and for such periods lIS
<br />may be required by the Lender and will pay promptly, when due,
<br />any premiums on such Insurance provision for payment of which has
<br />not been made hereinbefore. All insuraol:e shall be carried in com-
<br />panies approved by the Lender and tile policies and renewals thereof
<br />shall be hdd by the Lender Mnd have athlched thereto loss payable
<br />clauses in favur 01 and in JOHn acceptable to the LcndhT. In event of
<br />loss Borrower wUl give immediate noUce by mail to the Lender, who
<br />may make proof of loss if flot made promptly by Borrower. .nd each
<br />insurance company concerned is hereby authorized and directed to
<br />make payment fur such loss directly 10 the Lender instead of to the
<br />Borrower and the wnder jointly. and the insurance proceeds, or any
<br />part thereof, may be applied hy the Lender al llli opUon ellher 10 the
<br />reduction of Ihe IndehtLodness hereby secured or to the restoration or
<br />repair of the prolterly damaged. )n event of foreClosure of this Instru.
<br />ment or olher transfer of Utle 10 the mortgaged property In exUnguish-
<br />ment of the Indehledness ~ured hereby, all righi, lit Ie and inte.-est of
<br />tbe Borrower in and tu uny insurance policic.~ then ill force s.haU plilS!
<br />to the purchaser or grnnlce,
<br />
<br />9. Thai P5 addltiunul and L"tJIIHlcral K"Curily fur Ihe pllymenl uf Ih,.
<br />notc t:Jot'ril..d, Bnd 011 !ilIlOJo In 1lt"t."tJU1t! due unclcl tlu. IIUhUIIH!JIt, Ill("
<br />Borrower hereby ass1~m to Ihe t...elldct .11 pm'tls, n'\'I'nu~. ru,.'ullll~,
<br />
<br />P.~ :i'o'"
<br />
<br />HUO 021-t3nT
<br />
|