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<br />ne MorIpJOf In onkr mOR fully to prof<<f the ItCUrify or
<br />Ibis Marl..... ......:
<br />
<br />I. Thai he ",111 pay Ihe indebtedness. as hereinbefore provided.
<br />Privilege is resened to pay the debt in whole or in pari on any
<br />installment due datC'.
<br />
<br />2. Thill. together with, and in addition to, the monlhly
<br />payments of principal and interest payable under the tc:nns of the
<br />note secured hereby. the Mortgagor will pay to thc Mongaice,
<br />on the Unt day of each month until the said note is fully paid.
<br />the following sums:
<br />
<br />la) Amount sufficient to provide the holder hereof with funds
<br />to pay the next mortglge insurance premium if this Instrument
<br />and the nole secured hereby arc insured, or a monthly charge (in
<br />lieu of. monpge insurance premium) if they are held by the
<br />Secreta.r)' of Housing and Urban Development, as follows:
<br />
<br />(I) If ~d so Ions as said note of even date and this in-
<br />strument are Insured or are reinsured under the provisions of the
<br />National Howin. Act, an amount sufficient to accumulafe in the
<br />hands of the holder one (I) month prior 10 its due date the an-
<br />nual mortgage insurance premium in order to provide 5uch holder
<br />with funds to pay such premium to the Secretary of Housing and
<br />Urban Development pURuant to Ihe National Housing Act, as
<br />amended. and applicable Regulations thereunder; or
<br />
<br />(II) If and so long as said note of even date and this in-
<br />strument are held by the Secretary of Housing and Urban
<br />Development. a monthly charge (in lieu of a mONgaBe insurance
<br />premium) which shall be: in an amount equal to one-twelfth
<br />(1/12) of one-half (l12) per centum of the averagc outstanding
<br />balance due on the notc computed without laking inlo acr.:ount
<br />delinquencies or prepayment';
<br />
<br />(b) A sum ('Qual 10 the ground rents, If any, next due. plus the
<br />premiums Ihat will next become due and payable on policies of
<br />fire and other hazard insurance coverins, the mortaaged property,
<br />plus taus and assessments next duc on the mortlaged praperty
<br />(.all as estimlted b.v rhl!!! Mnr'!!.l!~J len all !lums already paid
<br />therefor divided by the number of months to elapk: ~rore one
<br />(I) month prior 10 the dale when such Jl'ound rents, premiums,
<br />taxes and assessmenls will become delinquent, such sums to be
<br />held by MortPlee in trust 10 pay said around renls, premiums,
<br />taxes and special assessments: and
<br />
<br />(c) All paymen15 mentioned in the two preceding subsections
<br />of this pal8lraph and all payments to be- made under the note
<br />secured hereby shall be added toaether. and the aurelate amount
<br />thereof shaD be paid by lhe MortS.gor each month in a sinale
<br />payment to be applied by Ihe Mongagee 10 the following items in
<br />the order sel forth:
<br />
<br />(I) premium charges under the COnlracl of insurance with
<br />the Secretary of Housing and Urban Oc\'c1opmenl, or monthly
<br />charlie (in lieu of morr,age insuranct' premium). as Ihe case may
<br />be:
<br />
<br />((I) &found reDl5, laxC:i, assl:Ssn1cnls, fire and other hazard
<br />insurance premiums;
<br />
<br />CUI) interest on the note secured hereby;
<br />
<br />(IV) amortiLation of the principal of said notej and
<br />
<br />(V) laic charges.
<br />
<br />Any deficiency in the amount of such aurcgate momhly pay.
<br />mmt s.hall. unless made lood by the Monlllor prior to the due
<br />dale of the nm such payment, constitute an event of default
<br />under this manpge. The MortlBBec may collect a "'ale charse"
<br />D01 to exceed four emts (4C) for each dollar (SI) of each pay-
<br />
<br />88- 1049B'1
<br />
<br />ment more Ihan fifteen (1:5) days in arrears to coyer the extrR ex-
<br />pense Involved in handling delinquent payments.
<br />
<br />3. That if the total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Mortgagee far ground rents, taxes
<br />and assessments or insurance premiums, as the case may be. such
<br />excess, if Ihe loan is currenl. at the option of the Mortgagor.
<br />shall be crediled by the Mortgagee on subsequent payments 10 be
<br />made by the Martgagor, or refunded to the MortPlor. If,
<br />however. the monthly payments made by the Mortgagor under
<br />(b) of paragraph 2 preceding shall not be surficlent to pay
<br />ground renls, tues and assessments or insurance premiums. B5
<br />Ihe case may be. when the lame shall become due and payable.
<br />then the Mortgagor shall pay to the Mortgagee any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents. taxes, assessmenl!l, or insurance
<br />premiums shall be due. If at any time the MOrlgaaor shaIJ tender
<br />10 the Mortpgee, in accordance with the provisions of the note
<br />secured hereby, full payment of the entire indebtedness
<br />represented thereby. the Mortgagee shall, in computing the
<br />amount of such indebtedness. credit to the account of the Mort-
<br />gagor all payments made under the provisions of (a) paragraph 2
<br />hereof which the Mortgagee has nol become obligated ta pay to
<br />the Secretary of Housing and Urban Development and any
<br />balance remaining in the funds accumulaled under the provisions
<br />of (b) of paragraph 2 hereof. If there shall be a default under
<br />any of the provisions of this mortgage resulting In a public sale
<br />of the premises covered hereby, or if the Mortgagee acquires the
<br />propcny otherwise after defaull. the Mortgagee shall apply. at
<br />the lime of the commencement of such proceedings. or at the
<br />lime Ihe property is otherwise acquired, the balance then remain-
<br />ing in Ihe funds accumulated under (b) of paragraph 2 preceding,
<br />as a credil againsl the amount of principal then remaininB. unpaid
<br />under said note, and shall properly adjwt any payments which
<br />shall have been made under (0) of parasraph 2.
<br />
<br />4. That the Mortgagor will pay ground rents, taxes,
<br />aucssments, waler rates. and other governmental or municipal
<br />charlts. fine5, or imposidons. for which provision has not been
<br />made herelnberore, and in derault thercof the MOllsasce may
<br />pay Ihe sai;;:; and that the Mortgagor will promptly deliver the
<br />official receipts theretO! i;:; !he Mortgsgee.
<br />
<br />S. The Mortgagor will pay all taxes which may ~ levied upon
<br />fhe Mongagee's interest in said real estate and improvemenll'.
<br />and which may be levied upon this mortgage or the debt secured
<br />her~by (but only to the elllenl Ihat such is not prohibited by law
<br />and only to the extent that luch will not make this loan
<br />usurious), bUI excluding any income tax. Slate or Federal. im-
<br />posed on Mortgagee, and will me the omeial receipt showina
<br />such payment wilh the Mortsagee. Upan violadon of thia under-
<br />laking, or if the Mortgagor is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforeuid taxes, or upon the rendering of any court decree pro-
<br />hibiting the payment by the Mortgagor of any such tues, Dr If
<br />such law or decree pravidC5 that any amount .0 paid by Ihe
<br />MOllgago' shall be credited on the morlsase debt, the Mortsaace
<br />shall have the right to give ninelY dalY" written notice 10 the
<br />owner of the mortgaged premises, requiring the payment of the
<br />mortgage debt. If such notice be given, the said debt shall
<br />become due. payable and collectible al the expiration of said
<br />ninely days.
<br />
<br />6. That should the Mortgagor fail 10 pay any sum or keep any
<br />covenant provided for in this mortgage, then Ihe Mongagcc, III
<br />its option, may payor perform the same, and all expenditures so
<br />
<br />./
<br />
<br />J
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<br />Page 2 of 4
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