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<br />813- 10571?
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<br />8orrowrr and L.ntder covenant Ind aPft' as follows: or if the Lender acquires the property otherwise after defaulL, the
<br />Lender shan apply, It the lime of the commencement of such
<br />proceedings. or althe lime the propeny is otherwise acquired, the
<br />balance then remaining in the funds accumulated under Ca) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said nole.
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<br />1. Thlt Borrower will pa)' the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in pan on
<br />any installment due dale.
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<br />2. That. together with. and in addition 10, the monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby. the Borrower will pay to the Lender. on the first day of each
<br />month untillhe said nOle is fully paid. the following sums:
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<br />(a) A sum equal 10 the ground rents. if any. next due, plus the
<br />premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments next due on the property (all (U eslinuJled by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />10 elapse before one (J ) month prior to the date when such ground
<br />rents, premiums. (axes and assessments will become deliquent, such
<br />slims to be held by Lender in trust to pay said ground rents,
<br />premiums. taxes and special assessments; and
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<br />(b) All payments mentioned in the preceding subsection of this
<br />paragraph and all payments 10 be made under the i10te secured
<br />hereby shall be added together. and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to be
<br />applied by the Lender to the following items in the order set forth:
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<br />(I) ground rents. taxes. assessments. fire and other hazard insur~
<br />nnte premiums;
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<br />(II) into::n;st on the nOle ~urQ1 hG<<;bYi
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<br />(Ill) amortization of the principal of said note; and
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<br />(IV) latc charges,
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<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall. unless made Bood by the Borrower prior to the due date of the
<br />r1cxt such payment. constitute .an event of default under this
<br />mortgage. The Lender may collecl a "late charge" not 10 exceed four
<br />~n15 (4:) for eaeh dollar (51) of each payment more Ihan fifteen
<br />r 15) days in arrears 10 cover the extra expense involved in handling
<br />:elinquent paymen15.
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<br />3, That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 precedlR8 shall exceed the amount of payments
<br />actually made by the Lender for ground rents. taxes and assessments
<br />\Jr insurance premiums. 85 the case may be, such excess. if the loan is
<br />current, at the option of the Borrower. shall be credited by the
<br />Lender on subsequent payments to be made by the Horrower, or
<br />refunded 10 the Borrower. If. however, the monthly paymen15 made
<br />by the Borrower under (a) of paraBraph 2 preceding shall not be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums, as the case may be, when the same shall become due and
<br />payable. then the Borrower shall pay to the Lender any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such Ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Borrower shall tender to
<br />the Lender, in accordance with the provisions of the nole secured
<br />hereby. full payment of the entire indebtedness represented thereby,
<br />the Lender shall, in computing the amount of such indebtedness.
<br />credit 10 the account of the Borrower any balance remaining in the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereof.
<br />If there shall be a l;Il:fault und~r IIny of Ihe provisioR5 of Ihls
<br />instrument TaUlling in a public sale of the premises covcrcd hereby.
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<br />4. Thai the Borrower will pay ground rents, taxes, assessments.
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been madc hereinbefore,
<br />and in default Ihereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
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<br />5. The Borrower will pay all taxes which may be levied upon the
<br />Lender's interest in said real estate and improvements, and which
<br />may be levied upon this instrument or the debt secured hereby (but
<br />only 10 the extent that such is not prohibited by law and only to the
<br />extent that such will not make this loan usurious), but excluding any
<br />income tax, State or Federal, imposed on Lender, and will file the
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or hereafter existing from paying the whole or any portion
<br />of the aforesaid taxes. or upon the rendering of any CQun decree
<br />prohibiting the payment by (he Borrower of any such taxes, or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt, the Lender shall have thc
<br />right to give ninety days' wriuen notice to the owner of the premises,
<br />requirins the payment of the debt. Ir such notice be giv~n, Ihe said
<br />d~bl shan bo::come du;, payabl; and Q)!ll:aibl~ QIlh; G~pinltion of
<br />said ninety days.
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<br />6. Tha( should (he 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 made
<br />shall be added to the principal sum owing on the said DOle, shall
<br />be secured hereby, Ind shall bear interest Btthe rate set forth in the
<br />said note., until paid.
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<br />7. That the Borrower hereby assigns, transfers and sets ovcr to the
<br />Lender, to be applied toward the payment of the note and all sums
<br />secured hereby in case of a default in the performance of any of the
<br />terms and conditions of this instrument or the said note, all the rents,
<br />revenues and income to be derived from the said premises during
<br />such time as the indebtedness shall remain unpaid, and the Lender
<br />shall have power to appoint any agenl or agents it may desire ror Ihe
<br />purpose of repairing said premises and of renting the same and
<br />collecting the ren15. reVenues and income, and it may payout of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managinl the
<br />same and of collecting rentals therefrom: Ihe balance remaininl, if
<br />any. to be applied toward the discharge of said indebtedness.
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<br />8. That the Borrower will keep the improvements now CJtisling or
<br />hereafler erected on the property, insured as may be required from
<br />time to time by the Lender against 1055 by fire and other hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by the Lender and will pay promptly, when due,
<br />any premiums on such insurance, provision for payment of which
<br />has not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the Lender and the policies and renewals
<br />thereof ;hall be held by the Lender Ilnd have attached therelo loss
<br />payable clauses in favor of and in form acceptable to (he Lender. In
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<br />HUD.821t:1DT.1
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