|
<br />,
<br />
<br />Borrower and Lender covenant and agree as Collows:
<br />
<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.
<br />
<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable under the terms of
<br />the note secured hereby, the Borrower will pay to the Lender,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<br />
<br />(a) A sum equal to the ground rents, if any, next 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 />taxes and assessments next due on the property (all as estimated
<br />by the Lender) less all sums already paid therefor divided by the
<br />number of months to elapse before one (1) month prior to the
<br />date 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 />assessments; and
<br />
<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 together, and the aggregate
<br />amount thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender to the following
<br />items in the order set forth:
<br />
<br />(I) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />
<br />(II) interest on the note secured hereby;
<br />
<br />(Ill) amortization of the principal of said note; and
<br />
<br />(IV) late charges.
<br />
<br />Any deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by the Borrower prior to the
<br />due date of the next such payment, constitute an event of
<br />default under this mortgage. The Lender may collect a "late
<br />charge" not to exceed four cents (4~) for each dollar ($1) of
<br />each payment more than fifteen (15) days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
<br />
<br />3. That iC the total of the payments made by the Borrower
<br />under (a) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents. taxes
<br />a.l\d assessments or insurance premiums. as the 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 subsequent
<br />payments to be made by the Borrower. or refunded to the
<br />Borrower. If, however, the monthly payments made by the
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or
<br />insurance premiums. as the case may be. when the same shall
<br />become due and payable, then the Borrower shall pay to the
<br />Lender any amount necessary to make up the deficiency. on or
<br />before the date when payment of such ground rents, taxes.
<br />assessments, or insurance premiums shall be due. If at any time
<br />thc Borrower shall tender to the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness rcpresented thereby, the Lender shall, in computing
<br />the amount of such indebtedness, credit to the account of the
<br />Borrower any balance remaining in the funds accumulated under
<br />the provisions oC (a) of paragraph 2 hereof. I f there shall be a
<br />default under any of the provisions of this instrument resulting
<br />in a public sale of the premises covered hereby, or if the Lender
<br />
<br />88-10436:1
<br />
<br />acquires the property otherwise after default, the Lender shall
<br />apply, at the time of the commencement of such proceedings, or
<br />at the time the property 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 lhen
<br />remaining unpaid under said note.
<br />
<br />4. That the Borrower 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 Lender may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts therefor to the Lender.
<br />
<br />5. The Borrower will pay all taxes which may be levied upon
<br />[he Lender's interest in said real estate and improvements, and
<br />which may be levied upon this instrument or lhe 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,
<br />imposed on Lender, and will file the official receipt showing
<br />such payment with the Lender. Upon violation of this
<br />undertaking, or if the Borrower 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
<br />prohibiting the payment by the Borrower of any such taxes, or
<br />if such law or decree provides that 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' wrilten notice to the owner of the
<br />premises, requiring the payment of the debt. If such notice be
<br />given, the said debt shall become due. payable and collectible at
<br />the expiration of said ninety days.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this instrument, then the Lender, at its
<br />option, may payor perform the same, and all expenditures so
<br />made shall be added to I he principal sum owing on the said
<br />note. shall be secured hereby. and shall bear interest at the rate
<br />set forth in the said note. until paid.
<br />
<br />7. That the Borrower hereby assigns, transfers and sets over
<br />to the Lender, to be applied toward the payment of the note
<br />and all sums secured hereby in case of a default in the
<br />performance of any of the terms and conditions of this
<br />instrument or the said note. all the rents, revenues and income
<br />10 be derived from Ihe said premises during such time as the
<br />indebtedness shall remain unpaid, and the Lender shall have
<br />power to appoinl any agent or agents it may desire for the
<br />purpose of repairing said premises and of renting the same and
<br />collecting the Tents, revenues and incume. and it may payout of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and expenses incurred in renting and
<br />managing the same and of collecting rentals therefrom; the
<br />balance remaining, if any. to be applied toward the discharge of
<br />said indebtedness.
<br />
<br />S. That the Borrower will keep the improvements now
<br />existing or hereafter erected on the property, insured as may be
<br />required from lime 10 time by the Lender against loss by fire
<br />and other hazards I 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 thereof
<br />shall be held by the Lender and have attached thereto Joss
<br />payable clauses in favor of and in form acceptable to the
<br />
<br />..../
<br />
<br />Page 2 of 5
<br />
<br />HUD-92143DT -1
<br />
<br />~
<br />
|