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<br />.88-
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<br />105748
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<br />Borrowtr and Lender covenant and aglft as 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 />pari on any installment due date.
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<br />2. That, together with. and in addition to, the monthly
<br />payments of principal and inlerest payable under the terms of
<br />the nole sccured hereby. the Borrower will pay to the Lender,
<br />on the first day of each month until the said note is fully paid,
<br />the following 5ums:
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<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 fire and other hazard insurance covering the propeny, plus
<br />taxes !lnd assC5sments nexl due on the properly (all as estimated
<br />by ,he Lender) less nil sums already paid therefor divided by the
<br />number of months to elapse before one (I) month prior 10 the
<br />date when such ground rent=" premiums, HUteS and assessments
<br />will become d:linquenl. such sums (0 be held by Lender in Irust
<br />to pay said ground renlS, premiums, taxes and special
<br />assessments; and
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<br />(b) All payments mentioned in the pre~ding subsection of
<br />this paragraph and all payment!! to be made under the note
<br />secured hereby shall be added together, and the aggregale
<br />amoum thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender 10 the following
<br />items in the order set forth:
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<br />(I) ground rents, taxes, assessments, fire and olher hazard
<br />insurance premiums;
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<br />{Ill interest on the note secured hereby;
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<br />(Ill) amortizntion of the principal of said note; and
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<br />(IV) late charges.
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<br />Any deficiency in the amount of such aggregate monthly
<br />paymenl shall, unless made good by the Borrower prior to the
<br />due date of the next such payment, constitute an event of
<br />default under this mortgage. The Lender may collect II "tate
<br />charge" not to exceed four cents (4~) for each dollar ($1) of
<br />each payment more than fifteen (15) days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
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<br />3. That if the total of the payments made by the Dorrower
<br />under (a) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents, laxes
<br />and 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 Ihe 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, tues 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, tlUes,
<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 nole secured hereby, full payment of the entire
<br />indebtedness represenled 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. If there shall be a
<br />default under any of the provisions of this instrument re=,ulting
<br />in IJ. public sale of the premises covered hereby, or if the Lender
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<br />acquires the property otherwise after default, the Lender shall
<br />apply, at the time of the commencement of such proceedings, or
<br />al the time the property is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, as a credit against the amount of principal then
<br />remaining unpaid under said note.
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<br />4. That Ihe Borrower will pay ground rents, taxes,
<br />assessments, water rates, and other governmental or municipal
<br />charges, rines, or impositions, for which provision has not been
<br />made hereinbefore, llnd in default thereof the Le~der may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipls lherefor 10 the Lender.
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<br />S. The Borrower will pay alllaxes which may be levied upon
<br />the Lender's interest in said real eslate and improvements, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (but only 10 the extent that such is not prohibited by law
<br />and only 10 the extent that such will not make this loan
<br />usurious). but excluding any income ta.'(, State or Federal.
<br />imposed on Lender, and will file Ihe official receipt showing
<br />such paymenl with the Lender. Upon violation of this
<br />undenaking, or if the Borrower Is prohibited by any law now or
<br />hereafler e:'l.isting from paying the whole or any portion of the
<br />aforesaid laxes, or upon the rendering of any coun decree
<br />prohibiting the payment by the Borrower 0 f any sU1;h taxes, or
<br />if such law or decree provides that any amount 50 paid by the
<br />Borrower shall be credited 011 Ihe debl. the Lender shall have
<br />the right to give ninety days' writtcn notice 10 the owner of the
<br />premises, requiring Ihe payment of the debt. If such notice be
<br />given, Ihe said debt shall become due, payable and collectible at
<br />the expiralion of said ninety days.
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<br />6. That should the Borrower fail 10 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 aU expenditures so
<br />made shall be added 10 the principal sum owing on the said
<br />nOle, shall be secured hereby, and shall bear interest at the rate
<br />set forth in the said nOle, until paid.
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<br />7. Thai the Borrower hereby assigns, transfers and sets over
<br />[0 the Lender, to 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 lerms and conditions of this
<br />instrument or the said nole, all the rents, revenues and income
<br />to be derived from the said premises during such time as the
<br />indebtedness shull rcmain unpaid. and the Lender shall have
<br />power 10 appoinl Bny agent or agents it may desire for tlte
<br />purpose of repairing said premises and of renting the same and
<br />collecting the rents, revenues and income, and it may payout of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and e./lpenSe5 Incurred in renting and
<br />managing Ihe !oame I!nd of collecting rentals therefrom; the
<br />balance remaining, if any, 10 be applied loward the discharge of
<br />said indebledness.
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<br />8. Thnt the Borrower will keep the improvements now
<br />existing or hereafter erected on the property, insured as may be
<br />required from time 10 time by the Lender agalnsl los5 by fire
<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 arnJ renewals thereof
<br />shall be held by the Lender Bnd have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the
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<br />Page 2 of 5
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<br />HUD-92143DT-1
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