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<br />RE.RECORDED
<br />88-104632
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<br />Borrower and Lender connant and agree JL!I 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 Bny installment due date.
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<br />2. That. together with, and in addition to, the monthly
<br />payments of principal and interest payable under the term6 of
<br />the note secured hereby, the Borrower will pay to the Lende:,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<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 lire and other hazard insurance covering the property. plus
<br />laxes and assessments next due on the property (0/1 as estimaled
<br />by the Lender) less all snms already paid therefor divided by tbe
<br />number of months to elapse before one (I) month prior 10 the
<br />date when such ground rents, premiums, taxes and assessments
<br />will become delinquent, such sums to be held by Lender in [ruM
<br />to pay said ground rents, premiums, taxes and special
<br />assessments; and
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<br />(b) All payments mentioned in the preceding !tubsection of
<br />Ihis parngraph and all payments to be made under the note
<br />secured hereby shaU 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:
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<br />(I) ground reillS, taxes, assessments. fire and other hazard
<br />insurance premiums;
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<br />(lJ) inlcrest on the note secured hereby;
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<br />(III) amortizalion of the principal of said note; and
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<br />(IV) late charges.
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<br />Any defidenl.}' in the amouOl of such aggregate monthly
<br />payment shaU, unle!s made good by the Borrower prior to the
<br />due dale of the nexl such payment, constitute an event of
<br />defaull under this mortgage. The Lender may collect u "laic
<br />charg~" not to exceed four cents (4lt) for each dollar ($ I) of
<br />each payment more thun fifteen (IS) days in iJrrear5 to cover the
<br />extra expense involved in handling delinquent payments.
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<br />3. That if the tolal of the payments made by the Borrower
<br />under (a) of paragraph 2 preceding shall exceed Ihe amount of
<br />payments actually made by 1111: Lender for ground rents, (axes
<br />and assessments or insurance premiums, as the case may be,
<br />such excess. if the loan is current, at the option of th"
<br />Borrower, shall be credired 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 />the Borrower shall tender to the Lender, in accordance with the
<br />provisions of the note secured hereby, full payment of the entire
<br />indebtedness represented thereby, the Lender shall, in computing
<br />the amDunt of such indebtedness. credit to the account of the
<br />Borrower any balance remaining in the funds accumulated under
<br />the provisions of (a) of paragraph 2 hereof. If there shaH 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
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<br />88- 10444'7
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<br />acquires the property otherwise after default. the Lender shan
<br />apply, at the time of the commencement of such proceedings, or
<br />81 the time the property is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, B.5 a credit against the amounl of principal then
<br />remaining unpaid under said note.
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<br />4. That the Borrower will pay ground rents, taxes,
<br />asses:tments, 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 Le~der 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 />the Lender's interest in said real estate and improvements, and
<br />which may be levied upon this instrument or the 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. Stale 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 ponion of the
<br />aforesaid taxes. or upon the rC'ndering of any court decree
<br />prohibiting the payment by Ihe Borrower of any such taxes, or
<br />if such law or decree provides that any amount 50 paid by the
<br />Borrower shall be credited on the debt, the Lender shall have
<br />the right to give ninely days' written notice to the owner of the
<br />premises, requiring the payment of the debl. If such nolice be
<br />given. the said debt shall become due. payable and collectible at
<br />the expiration of said ninety days.
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<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this inslrument. then the Lender, at its
<br />option, may payor perform the same, and all expenditures so
<br />made shall be added to the principal sum owing on the said
<br />note, shall be secured hereby, and shall bear interest at the rate
<br />set forlh in the said note, until paid.
<br />7. 111at Ihe Borrower hereby assigns, transfers and SC[S over
<br />to the Lender, (0 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 nOle. all the rents, revenues and income
<br />to be derived from th~ said premises during such time In the
<br />indebtedness shall remain unpaid, and rhe Lender shall have
<br />power 10 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 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 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 />8. That the Borrower will keep (he improvements now
<br />existing or hereafter erected on the property, insured as may be
<br />required from time to time by the Lender againsl loss by nre
<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 thereof
<br />shall be held by the Lender and have auached thereto loss
<br />payable clauses in favor of and in form acceptable to the
<br />
<br />,.,)
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<br />HUD.92143DT.1
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<br />Pl!IgB 2 of 5
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