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<br />Borrower Ind Lc!nder covenlnt and agree as foIl01\'5:
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<br />1. That Borrower will pa)' the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debl in whole or in
<br />pllM on any installment due date.
<br />
<br />2. Thllt. together with, and in addition 10, the monthly
<br />payments of principal and interest payable under the lerms of
<br />the note secured hereby, the Borrower will pay to the Lender,
<br />on the first day of each momh until the !laid nole is funy paid,
<br />the following sums:
<br />(a) A sum equal to lhe ground rents, if any, nexl due, plus
<br />the premiums that will next become due and payable on policies
<br />of fire and other hnzard insurance covering the property, plus
<br />taxes and !lSsessments next due on lhe properly (all as estimated
<br />by rhe Lender) less all sums already paid therefor divided by the
<br />number of months [0 elapse before one (I) month prior to the
<br />date when such ground rents, premiums, taxe..'i and assessments
<br />will become delinquent, such sums 10 be held by lender in trusl
<br />10 pay said ground rents. premiums, laXe!l and special
<br />assessments; and
<br />(b) AIl payments mentioned in the preceding subsection of
<br />this paragraph and all paymenls 10 be made under lhe nOle
<br />secured hereby shall be added together, and thl: aggregale
<br />amount thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender to lhe following
<br />items in the order set forth:
<br />(I) ground rents, taxes, assessml:nts, lire and 01 her hazard
<br />insurance premiums;
<br />
<br />(11) interest on the nOle secured hereby;
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<br />(111) amortization of lhe principal of said nole; and
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<br />(IV) late charges.
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<br />Any deficiency in lhe amount of such aggregate mOllthly
<br />payment shall. unless made good by Ihe Borrower prior 10 Ihe
<br />due date of the next such payment, constitute an client of
<br />default under this mortgage. The Lender may collecl a "late
<br />charge" not to exceed four cents (41:') for each dollar ($1) of
<br />each payment more than fifleen (15) days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
<br />
<br />3. That if 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 lhe Lender for ground rents. taxes
<br />-----ID1d 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 Borrow.er. 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 />sufficienl 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 Ilmoum 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 amount 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. I f there shall be a
<br />default under any of the provisions of this instrument resulting
<br />in B public sale of the premises covered hereby. or if the Lender
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<br />88- 1050a7
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<br />acquires the property otherwise aftcr default, the Lender shall
<br />apply, at the time of the commencement of such proceedings, or
<br />at the time the properlY is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, as a credil against the amounl of principal then
<br />remaining unpaid under said notc.
<br />
<br />4. Thai lhe Borrower will pay ground rents, taxes,
<br />assessments, watcr rales, and olher governmental or municipal
<br />charges, fines. or imposilions, for which provision has not been
<br />made hereinbefore, and in default thereof the LeI].der may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts lherefor to the Lender.
<br />
<br />5. The Borrower will pay all tales which may be levied upon
<br />lhe lender's interest in said real estate and improvements, and
<br />wh:;:h may be levied upon this instrument or the debt secured
<br />hereby (bUI only to lhe extent that such is not prohibited by law
<br />and onlv to the extent Ihal such will not make lhis loan
<br />uS-.Jrious), but excluding any income tax, State or Federal,
<br />h~posed on lender. and will file the official receipt showing
<br />such payment with the lender. Upon violation of this
<br />undertaking, or if [he Borrower is prohibited by any law now or
<br />hereafler existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any courl decree
<br />prohibiting the payment by the Borrower of any such taxes, or
<br />if such law or dccree provides that any amount so paid by the
<br />Borrower shoJI be credited on the debt, the Lender shall have
<br />Ihe right to gh'c ninety days' written notice to the owner of the
<br />prcmi5es, requiring lhe payment of the debt. If such notice be
<br />given. the said debt shall become due, payable and collectible at
<br />the cxpiralion of said ninety days.
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<br />6. That c;hould the Borrower fail 10 pay any sum or keep any
<br />covenant provided for in this instrument, then the Lender, at its
<br />oplion. may payor perform the same, and all expenditures so
<br />made shall be added 10 lhe principal sum owing on the said
<br />nOle, !.hall be secured hereby, and shaH bear interest al the rate
<br />set forth in lhe said nOle, until paid.
<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 c;urm secured hereby in case of n default in the
<br />performance of any of Ihe lerms and conditions of this
<br />instrument or the said note, all the rents, revenues and income
<br />to be derilled from lhe said premises during such time as the
<br />indebtedness shall remain unpaid, and the lender shall have
<br />power to appoint any agent or agents it may desire for Ihe
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rems, revenues and income. and it may payout of
<br />said incomes nil expenses of repairing said premises and
<br />necessary commissions and expenses incurred in reming and
<br />managing the same and of collecling 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 the improllements now
<br />existing or hereafter erected on the propcny, insured as may be
<br />required frClm time 10 time by the Lender against loss by fire
<br />and other haznrds, casualties and contingencies in such amoullls
<br />and for such periods as may be required by the Lender and will
<br />pay prompHy, when due, any premiums on such insurance,
<br />prollision for payment of which has not been made
<br />hereinbefore. All in!lurance shall be carried in companies
<br />approved by the I.ender nnd Ihe policies and renewals thereof
<br />shall be held by lhe I.emler and have altached thereto loss
<br />payable clause!. in favur of and in form acceptable to the
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<br />HUD.921 43DT-'
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