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<br />Borrowrr liIod under oovenlilnt and IIgrft' as follows:
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<br />88- 105825
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<br />J. That Borrower will pay Ihe indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in
<br />part .on nny Installment due date.
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<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and Interest payable under the terms of
<br />the note secured hereby, the Borrower will pay to the Lender,
<br />on the first day of each month until the said nOle is fully paid,
<br />the following sums:
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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 Ihe property, plus
<br />taxes and RSsessments ncxt due on the property (all as estimated
<br />by the Lender) less all sums already paid therefor divided by the
<br />number of months to elapse before one (I) month prior to the
<br />date when such ground rents, premiums, tlUtes and assessments
<br />will become delinquent, such sums to be held by lender in trusl
<br />to pay said ground renlS, premiums, IlUtes and special
<br />assessments; and
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<br />(b) All payments mentioned in the preceding subsection of
<br />this paragraph and all payments to be made under the note
<br />secured hereby shall be added together, and the aggregate
<br />amount thereof ~hall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender to the following
<br />items in the order set forth:
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<br />(I) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
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<br />(II) interest on the note secured hereby;
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<br />(III) amortization 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 />payment shall, unless made good by the Borrower prior 10 the
<br />due date of the next such payment, constitute an event of
<br />default under this mortgage. The Lender may collect a "late
<br />charge" not to exceed four cents (4ft) for each dollar ($1) of
<br />each payment more than fifteen (IS) days in arrears to cover the
<br />exLra expense involved in handling delinquent payments.
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<br />3, That if the total of the payments mnde by the Borrower
<br />under (8) of paragraph 2 preceding shall exceed the amount of
<br />payments actualIy made by the Lender for ground rents, taxes
<br />and assessments or insurance: premiums, as the case may be,
<br />such excess, if the loar. is current, at the option of the
<br />Borrower, shall be credited by the Lender on subsequent
<br />payments to be made by the 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, 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 amount necessary to make up the deficiC'ncy, 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 />indebtedn~s repr~nll:d thereby, the Lender shall, in ~ompUling
<br />the amount of 5u~h indebttdne:is, credit to the iU.:count 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 resulting
<br />in a 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 />at 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 nOle.
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<br />4. That Ihe Borrower will pay ground rents, taxes,
<br />assessments, waler rates, and other governmental or municipal
<br />charges, fines, or impositions, for which provision has not been
<br />made hereinbefore, and in default thereof the Lender may pay
<br />the samej nnd that the Borrower will promptly de.liver the
<br />official receipts therefor to Ihe Lender.
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<br />5. The Borrower will pay all taxes which may be levied upon
<br />the Lender's interest in said real estate and improvements, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (bul only 10 the extent that such is not prohibited by law
<br />and only to the euent that such will not make this Joan
<br />usurious), but excluding any income tax, State or Federal,
<br />imposed on lender, and will file the official receipt showing
<br />such payment with the Lender. Upon violation of this
<br />undertaking, or if the Borrower is prohibited by any law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes, or
<br />if such law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt, Ihe Lender shall have
<br />the right 10 give nincl)' days' written notice fa the owner of the
<br />premises, requiring the payment of the debt. If such notice be
<br />given, the said debl shall become due, payable and collectible at
<br />the expiration of said ninety days.
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<br />6. That should the 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, llnd all expenditures so
<br />made shall be added 10 the principal sum owing on the said
<br />note, shall be secured hereby, nnd shall bear interest at the rate
<br />set forth in Ihe said note, until paid,
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<br />7. That Ihe Borrower hereby assigns, transfers and sets over
<br />to the lender. to be applied toward the payment of the nole
<br />and all sums secured hereby in case of a default in the
<br />performance of any of the terms and conditions of this
<br />instrument or the said note, all the rents, revenues and income
<br />to be derived from the said premises during such time as the
<br />indebtedness shall remain unpaid. and the Lender shall have
<br />power to appoinl any agent or agents It may desire for Ihe
<br />purpose of repairing said premises and of renting the same and
<br />collecting the renls, revenues and income, and it may payout of
<br />said incomes 1111 expenses of repairing said premises and
<br />necessary commissions and expenses incurred In renting and
<br />managing the same and of collecting rentals therefrom; the
<br />balance remaining, if any, to be applied toward the discharge of
<br />said indebtedness.
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<br />8. That the Borrower will keep th~ improvements now
<br />exisling or hereafter erected on the property, insured as may be
<br />required from time 10 time by the Lender against lass 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 promplly, when due, any premiums on such insurance,
<br />provision for payment of which has not been made
<br />hereinbefore, All in5uram:c shall be cnrrlcd in companies
<br />approved by the Lender and the policies and renewals Ihereof
<br />shall be held by the Lender and have attached thereto loss
<br />payable c:auses in favor of and in form acceptable to the
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<br />J
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<br />Page 2 of 5
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<br />HUD-92143DT-l
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