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<br />88- io.s8-2 0
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<br />Borrower and Lender co\'enllnl and lI~ree ..iii rollowli:
<br />
<br />1. Thai Borrower will pay the indc:blcdne.'iS. as hereinbefore
<br />provided. Privilege is re.<;ervcd to pay the deht in whole or in part on
<br />any installment duc date.
<br />
<br />2. Thai, together with. and in addition to, the monthly paymcnl'i
<br />of principal and interest payable under the terms of the note secured
<br />hereby, the Borrower will pay to the L.cnder, on the firS! day uf each
<br />month Imtillhc said nole is fully paid. the following sums:
<br />
<br />(II.) A sum equal to the ground rents. if any. nellt duc. plus Ihe
<br />premiums thaI will nellt become due Bnd payable on policies nr fire
<br />and other hazard insurance covering the propeny, plu!'! taxes amI
<br />assessments next due on the propeny (all as ('sIimmed by IIU' J.1'nd,'rJ
<br />less all sums already paid therefor divided by the number of month!>
<br />to elapse before one (J I month prior to the date when such ground
<br />rents, premiums, taxes and llSSe.\Smenl\ will become deliquenl, such
<br />sums to be held by lender in Irust to pay !>:lid grnund rent!l,
<br />premiums, LaXCS and spccialllSSessments; and
<br />
<br />(b) All payments mentioned in the prcccdin~ \uhsccuon nlthls
<br />paragraph and all payments 10 be made uOller Ihe nOle !'Il't:url'd
<br />hereby shall be added together, and Ihe aggregllte llmnuOllhcreol
<br />shall be paid by the Borrower each month in II !lingle payment tu he
<br />applied by the Lender to the following ilems in the urdcr \el furth:
<br />
<br />(I) ground rents, taxes, assessmenls, firc Ilnd uther hlll.nrd in,-ur-
<br />ance premiums;
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<br />(II) interest on the nolc secured hereby:
<br />
<br />(III) amonization ufthe principal of said note; ami
<br />
<br />(IV Ilatc charges.
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<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall, unless made good by the Borrower prior to Ihe due date of Ihe
<br />next such payment, constitute an event of default under this
<br />mongage. The Lender may collect a "late charge" not to eJlceed four
<br />cents f4~1 for each dollar (51) of each payment more than fifteen
<br /><<15) days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
<br />
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall excl:cd Ihl: amnunt of paymcnl'i
<br />actually made by the Lender for ground rents, takes and ItSscssmcnl'i
<br />or insurance premiums, ItS the casc may be, !luch exccss, if Ihe luan is
<br />current, at the option ofthc Borrower, shall he credited by Ihe
<br />Lender on subsequent paymcnb In be: made by the Borrower, or
<br />refunded to the Borrower. If, however, Ihc munlhly payments made
<br />by the Borrower under (8) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, laxes 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, or: or before the date when
<br />payment of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If al any lime the Borruwer ..hall tender III
<br />the Lender, in accordance: with the provisions of Ihe nOle secured
<br />hereby, full paymenl of the cntire indebledne.ss reprC5Cnted thcreby,
<br />the Lender shall, in computing the amount of such indebtednC!>s,
<br />credit to the accounl of the Borrower any balance remaining in the
<br />funds accumulated under the provi'olom of (a) uf paragraph 2 hereof.
<br />If there shall be a default under any of Ihe provisions of this
<br />instrument resulting in a public sale of the premise.'i covcred hereby,
<br />
<br />ur if Ihe l.ender acquires the property lllherwise after derault, the
<br />lender shall apply, at the time of the commencement of such
<br />proceedings, or at the time the property is otherwise acquired, the
<br />balance then remaining in Ihe funds accumulated under fa) of
<br />paragraph 2 preceding, as u credit against the amnunl uf principal
<br />then remaining unpaid under said nOle.
<br />
<br />4. That the Borrower will pay ground renl'i, lakes, assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision ha.'i not been made hereinbefore,
<br />and in default thereof the Lender may pay the same; and that the
<br />Borrower will promptly deliver Ihe official receipts therefor to the
<br />tender
<br />
<br />s. 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 instrumenl or the debt secured her.::by (bul
<br />only 10 the exlenl 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 Iu, State or Federal. imposed on Lender, and will file the
<br />official receipt showing such payment with the Lender. Upon
<br />violaliun of this undertaking, or if the Borrower is prohibited by any
<br />law now or hereafter existing from paying the whole or any ponion
<br />of the aforcsaid taxes, or upon the 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 />righl to give ninety days' wriUen notice to the nwner of the premis~,
<br />requiring the payment of the debt. If such nolice be given, the !:aid
<br />debt shall become due. payable and collectible al Ihe expiration of
<br />said ninety days.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in this inslrumcnt, then the Lender, at its
<br />option, may pay or perform the same, and all ekpenditures so made
<br />shall be added to the principal sum owing on the said note, shall
<br />be secured hereby, and shall bear intercst althe rate set forth in the
<br />said nole, until paid.
<br />
<br />7. That the Borrower hereby llS5igns, transfers and sets over to the
<br />Lender, to be applied loward 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 nolc, alllhe renl'i,
<br />revenucs and income to be deri"ed from the said premises during
<br />such time as the indebtedness shall remain unpaid, and the Lender
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose of repairing said prcmis~ and of renting the same and
<br />collecting the rents, revenues and income, and it may pay 01.11 of said
<br />incumcs all ekpcnSL'S of repairing said premiscs and necessary
<br />cummi!lsions and expenses incurred in renling and managing the
<br />same and uf t:Ollecling rentals therefrom; the balance remaining, if
<br />any. to be applied toward Ihe 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 tll time by the Lender against loss by fire Dnd 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 insurar..ce, provision for payment of which
<br />has nol been made hereinbefore. All insurance shall be carried in
<br />companies approved by Ihe Lender and :he policies and renewals
<br />thereof shall be held by Ihe Lender Ilnd have attached Ihereto loss
<br />payable chuscs in favor IIf and in fnrm acceptable 10 the Lender. In
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<br />HUD-92143DT.1
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