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<br />Borrowrr and Lender covenant and a~rf'C! as rollows:
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<br />I. Thai Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege L'i l1.'SCnlcd to pay ;he debt in whole or in parl on
<br />any installment due dale,
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<br />2. Thai. together with. and in addiliun to. the monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby. the Borrower will pay 10 the Lender, on the fir.;t day of each
<br />mnnth untillhc said note is fully paid. the following sums:
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<br />(a) A sum equal to the ground rents. if any, next duc. plus the
<br />premium!. thai will next become due and payable on policies of fire
<br />and other hazard insurance covering the property, plus taxes and
<br />assessments ne.xt due on the property (all as esrimated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (II month prior to the date when such ground
<br />rents. premiums, tBltes and assessments will become deliquent, such
<br />sums to be held by Lender in trust to pay said ground rents.
<br />premiums, taxes and special asses.'iments; and
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<br />(b) All payments mentioned in the preceding subsection of this
<br />paragraph and all payments to be made under the nOIe secured
<br />hereby shall be added logether, 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 />anee premiums:
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<br />lIll interesl on the nole secured hereby:
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<br />(lJl) amortization of the principal of said note; and
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<br />(IV) late charge.".
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<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall, unless made good by the Borrower prior 10 the due dale of the
<br />ncxl such payment, constitule an event of defauh under this
<br />mongage. The Lender may collect a "late charge" not to exceed four
<br />cents (4': I for each dollar (S1 I of each payment more than fifteen
<br />(15) days in arrears to cover the extra expense involved in handling
<br />delinquent payments,
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<br />3.- Thal if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall cllceed the amount of payments
<br />actually made by the Lender for ground rents. taxes and assessments
<br />or insurance premiums, as Ihe case may be, such exCCiS, 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 Ihe Borrower. or
<br />refunded 10 the Borrower. If, however. the monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, laxes and assessments or insurance
<br />premiums, as the ease may be. when the Slme shall become due and
<br />payable. then the Borrower shall pay 10 the Lender any amount
<br />necessary to make up the deficiency, on or hcfure the date when
<br />paymenl of such ground rents. taxes. assessments, or in!lurance
<br />premiums shall be due. If at any time the Borruwer shall tender to
<br />the Lender, in accordance with the pruvisioRli of the nole secured
<br />hereby, futl payment of the enlire indebtedness represented thereby,
<br />tbe lender shall. in compuling the amount of such indebtedness,
<br />credilto the account of the Borrower any balance remaining in the
<br />funds accumulated under the provisions of (8) of paragraph 2 hereof.
<br />rr there shall be a ddault under any of (he prOVisions or Ihis
<br />instrument resulting in a public sale of the premises covered hereby,
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<br />or if the Lender acqulTI:5 the property otherwise after default, the
<br />Lender shall apply, atlhe lime of Ihe commencement of such
<br />proceedings. ur al the time the property is otherwise acquired, the
<br />balance then rcmainin~ in the funds accumulated under (8) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said nOle,
<br />
<br />4. Thai the Borrower will pay ground rents, laxes, assessments,
<br />waler ratc.'i, Ilnd other governmental or municipal charges. fines, or
<br />imposilions, for which provision has not been made hereinbefore,
<br />and in default thereoF the Lender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts Iherefor to the
<br />Lender,
<br />
<br />5. The Borrower will pay alllaHCS whicb 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 Ihe .debt secured hereby (but
<br />only to the extent that such is not prohibited by law and only to the
<br />exlentlhat such will n01 make this loan usurious), but excluding any
<br />income tax, Slate or Federal, imposed on Lender. Bnd 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 />Jaw now or hereafter existing' from paying the whole or any portion
<br />of the aforesaid taxes. or upon Ihe rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes. or if
<br />such law or decree proVides that any amount 50 paid by the
<br />Borrower shall be credited on the debt. the Lender shall have the
<br />right 10 give ninety days' written nolice 10 the owner of the premises,
<br />requiring the payment of the debt If such notice be given, the said
<br />debt shall become duc, payable and collectible at the expiration of
<br />said ninely days.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covensnl provided for in this instrumenl, then the lender. at its
<br />option. may pay or perform the same, and all expenditures so made
<br />shall be added to the principal sum owing on the said note, shall
<br />be secured hereby, and shall bear interest al the rate set forth in the
<br />said note, until paid.
<br />
<br />7, That the Borrower hereby assigns, transfers and sets over ID the
<br />Lender. to be applied toward the payment of the nole and all sums
<br />secured hereby in case of a default in the performance of any of the
<br />tenns and condilions of this instrument or the said nOIe. 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 10 appoint any asent 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 payout of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renling and managing the
<br />same and of collecting rentals therefrom; the balance remainins. if
<br />any. to be applied loward the discharge of said indebtedness.
<br />
<br />8. That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />time 10 time by the Lender against loss by fire and other hazards.
<br />casualties and conLingencies in such amounts and for such periods IS
<br />may be required by the Lender and will pay promptly, when due.
<br />any premiums on such insurance. provision for paymenl 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 />thel'cof shall be held by the Lender and hut! allachai thereto loss
<br />payable clauses in favor of and in form acceptable to Ihe Lender. In
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