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<br />Borrower and Lender coveRanl IInd agree as foIl0\\'5:
<br />
<br />J. 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 dale.
<br />
<br />2. That, together with, and in addiLion to, the monthly
<br />payments of principal and interest payable under the terms or
<br />the note secured hereby. the Borrower win pay to the Lender.
<br />on the first day of each month until the said nOle is fully paid,
<br />the following sums:
<br />
<br />(a) A sum equal 10 the ground rents, if any. next due. plus
<br />the premiums that will next become due and payal.,le on policies
<br />of fir: and other hazard insurance covering the property. plus
<br />taxes and assessments next due on the property (011 as estimuted
<br />by the Lender) les'i aU sums already paid therefor divided by the
<br />number of months to elapse before one (I) month prior to the
<br />date when such ground rcnts, premiums, taxes and assessment!!.
<br />will become delinquent, such sums 10 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 Ihe preceding subsection of
<br />this paragraph and all payments to tie made under Ihe note
<br />secured hereby shaJl be- added tosether, and the aggregale
<br />amount thereof shall be paid hy the Borrower each month In a
<br />single payment Co be applied hy the Lender to Ihe follOWing
<br />ilem!. in lhe- order ~I forth:
<br />
<br />(I) ground renlS, ta~e!l, 1S!l!lC'!!.!lffienl!t, lire and other IHlllllL.l
<br />Insurance premiums;
<br />(11) imr:rC5t on the notC' !te,urcd hClI:o);
<br />(III) amonizallon of the- rmm'lpalnf \~lld nnle; and
<br />(IV) laic ,hargC'~
<br />
<br />Any deficient')' III Ihe' amnllnl "' "Udl ;1~Gr('gat(' munthh
<br />payment "hall, unlC'!t!l made gond h)- thC' Uonm..er flnUl h1 :hC'
<br />due dale of Ihe neX1 \ut.:h pU)'mC'OI, ~'on!ltllule an eHnt of
<br />defoull under Ihi) mortgitgC'. 111C' l.t'ndcr ma~ Cl)IIC'1,1 a "hllc
<br />charge" nOll0 CJtcccd four !;eot" '';'1 fm c.u:h dollar ($11 01
<br />each payment more Ihan fifteen II~. d."" 10 arrenn 10 COH'r Ihc
<br />extra eJtpcnftC involved tn handhns: delinquC'nt p4ymC'nn,
<br />
<br />3. That if the lotal of Ihe puyment. made b) the lJonowC'1
<br />under la) of paragraph 2 precedlOg "hall ellcct'd I hC' amount 01
<br />payments actually made by the Lender 'or ground renl!., ULXC'''
<br />llnd anC55ment!i or ins.uranl.'"C prC'J~lIum!lt, ".. thC' ~!oC mD)' be,
<br />such exCCls. if the loan" currenl, III Ihe l.lptlOn ot the
<br />Borrower, shall be credited b) the Lr.ndC'r on \ub,,:quenl
<br />pa)'mcms to be made by 1he Hono"er, or refunded 10 the'
<br />Borrower, If, however, the monthl)' (layrncn'" made b)' Ihe'
<br />Borrower under (a) of paragraph 2 pre'c.:C'dmS ,hall nOI bc
<br />sufficient to pay ground rents, taxes and tileSSmCnn or
<br />insurance premiums. as thC' Clue may be. when the !.amC' "hull
<br />become duc and payable, Ihen the' Borrl)~'er shall pay co the
<br />Lender any amount ~ecosar}' 10 ma"e up Ihe deficienC)', on 01
<br />before the date when pa)'ment of sUl'h ground Tcnu" taxe!!..
<br />assessments, or insurance' premlUm!l shall be due, Jf al any time
<br />the Borrower shall lender to Ihe' Lender, 10 Bc!;ordan~ ,,'ilh the
<br />provisions of the notC' iC'Curcd hereby, full pa)'menl of the entire
<br />indebledncss rcpr~nted Ibereb)', the Lender ~bal1. in compuling
<br />the amount of such indebtednr:u. credit 10 the accounl of the
<br />Borrower any balance remain ins in Ihe fund!. accumulated under
<br />the prO\isions of Ca) of paragraph 2 hereof. If there shall be a
<br />default under an)' of the provisions of thi!l instrument resulting
<br />in a public sale of the premilon co\'ercd hereb)', or if the Lender
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<br />acquires the property otherwise after default, the Lender shaH
<br />apply, at the time of the commencement of such proctedings, or
<br />at lhe time the property is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (n) of paragraph 2
<br />preceding. as a credit against the amount of principal then
<br />remaining unpaid under said no Ie,
<br />
<br />4, That the Borrower will pay ground rents, taxes.
<br />assessments, waler 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 lhat lhe Borrower will promptly de'nver Ihe
<br />official receipts therefor to the Lender.
<br />
<br />5. The Borrower will pay all ta"te5 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 exten1 that such is not prohibilCd by law
<br />and only to the exten1 [hal such will nol make tbis loan
<br />usurious). bUI excluding any income laX, State or Federal,
<br />imposed on Lender. and \\';11 tile the official receipt showing
<br />such paymem with the lender. Upon ...iolation of this
<br />underlaking, or if the Borrower is prohibited by any law no\\' or
<br />hereafter existing from paying the whole or any ponion of the
<br />atores.ud taxes. or upon the rendering of an)' coun decree
<br />prohlblllOg the parment by the Borrou.'er of an)' such lUXe!.. or
<br />If ...ueh law or decree pro\'ide5 that an)' amount so paid by Ihe
<br />BOrTo"cr ,hall he credited on [he debt, the Lender shall ha"'iC'
<br />Ih(' n~hl 10 give nincl)' days' wnUen notice to the owner of Ihe
<br />preml~c!t, rcqumng the parOlent of the deb.. If such notice be
<br />glH~n, the ,aid debt shaH ~C'1:I)mC' due. pa~'3ble and collectible at
<br />thC' C"pIlOlllon of ~ald nlOcty d.a~'!!.,
<br />
<br />h, That should the Dorro\\'C'r latl to pay any ~um or "ecp an)'
<br />~'11\Oenant pro\'ldc:d for 10 Ihl~ mstrumell1, then Ihe Lender, 111 ill.
<br />option. ma)' (1a~' or perform the 'klOle, and all expenditur~ ~o
<br />made !thaI! be added to Ihe principal '!lum OWinG on the !!.aid
<br />nolc. ...hall be !tC'\.-ured hereb~'. and ,hall bear interest at Ihe rale
<br />...cl fonh 10 Ihe !laid note, until paid,
<br />
<br />'7 _ Thai lhe 80rrllwrr !Jereb)' LU!ilgn!il. lTansrcn and 'lei) o\'C'r
<br />to Ihr Lrndel, (0 br applied toward the pa)menl or the note
<br />and all !lum!l "ecurC'd hereby in c~e of a default in the
<br />pcrl'ormaUl.'C of uny of the tenDS and condiliom, of this
<br />IOstrumenl or Ihe s.aid nole, all the renl.5. revenuC'i and inl."UmiC'
<br />to be de"\oed from the said prenuloO during luch time as the
<br />IOdeblcdnes!l ~hull remam unpaid, and the Lender s.hall h3\-e
<br />vo","'er 10 appoIDI any asenl m agems it may desire for tt.e
<br />(lurpme ot fep.ainn~ .aid prcmu.o and of renling (he Ulme and
<br />collecunil the renu, rn'enuo and incom.:. and il may ('layout (If
<br />!>ald meomn 411 eIpen50C'S of repairing said premises and
<br />nel~!IoBf)' L'ommUi!.ionlo and expensC'5 incurred in rent ins OInd
<br />managlnB the !loamc and of collecting remab Ihercfrom; Ihe
<br />baJance remaining, if lIny. to be appHed loward Ihe di!!.charge of
<br />!>aid IOd.:btcdnt'1!o.
<br />
<br />8, That Ihe Bonowcr Will Ir.eep the impro....cmenb now
<br />cXlsting or hereafter er:'C'ted on the property. insured iUo may bc'
<br />required from lime' to 11m.: by Ihe Lender against lo!lcs b)' fife
<br />and olher hiWlrds, cB!lualue!l and contingencies in such amounls
<br />and for such perioW tl!. mOl)' be required by Ihe Lender and will
<br />pay prompt!)', when due. any premiums on 5uch insurance.
<br />pro\ol!1ion for pa)1t1enl of which h3.) not been made
<br />hc'CCinbcfore. All insur...n~ 5hall be carried in rompanu:,s
<br />approved by (he Lender and Ihe polioes and renewal!llhereol
<br />shall be held b)' the Lender and ha\'c attached thereto IOi"
<br />pa)'able daU!lCi in fa\or ot and in form acceptable to the
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