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<br />I. That Borrower will pay Ihe indebtedne.'>S, as hereinbefore
<br />provided. Privilege is rc.'iervcd In pay the debt in whole or in pari un
<br />any installment due date.
<br />
<br />8"s:.:..-rttS1t9-t!. . -- --.--- __n
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<br />Borrowcr and Lender co\pcnllnt and aJtrec as followR: or if the Lender acqUlre.'i the propert)' utherwise aner default, the
<br />lender shall apply, ot the time nf the commencement of such
<br />proceedings. or at the time the property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, as a credit against the amount of principal
<br />then remaining unpaid under said nole.
<br />
<br />2. That. togelher wilh, and in addilion tn, the mumhly paymenu
<br />of principal and inlerest payahle under Ihe terms of the nolc secured
<br />herehy, the Borrower will pay 10 the lender, on the firsl day of each
<br />month until the said nole is fully paid, the following sums:
<br />
<br />(a) A sum equal to the ground renl'i, 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 />BS.'ie.'iSmenlS next due on the property (all as e:flimated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one (I) month prior to the dale when such ground
<br />renls, premiums, ta~es and assessmenU will become deliquent, such
<br />sums Lo be held by Lender in trust to pay said ground renls,
<br />premiums, taxes and special asscssmenl'i; and
<br />
<br />(b) All paymenl'i mentioned in the preceding subsection of this
<br />paragraph and all payments 10 be made under the nOle secured
<br />hereby shall be added together. and the aggregate amount thereof
<br />shall be paid by the Borruwer each month in a single payment to be
<br />applied by the lender to Ihe following items in the order set forth:
<br />
<br />(1) ground rents, taxes, aSSCSSmenl'i. fire and other hazard insur.
<br />ance premiums:
<br />
<br />(Il) interest on Ihe note secured hereby;
<br />
<br />(III) amortization of the principal of said note; and
<br />
<br />(IV) late chargc.<i.
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<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall, unless made gOOlI by the Borrower prior 10 the due date of the
<br />nexl such payment, constilute an event of default under thi~
<br />mortgage. The Lender may colleela "late charge" not to exceed four
<br />cenb f 4lt I for each dollar (S I ) of each payment more than fifleen
<br />(15) days in arrears to clJver the elttra expense involved in handling
<br />delinquent paymenl!..
<br />
<br />3. That if the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the amount or payments
<br />actually made by the Lender for ground renb. taltcs and assessments
<br />or insurance premiums, as the case may be, such excess, if Ihe loan is
<br />current, althe option of Ihe Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Harrower, nr
<br />refunded to the Borrower. If, however. the monthly 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 in!lurance
<br />premiums, as the case may he, when the same shall become due and
<br />payable, then Ihe Borrower shall pay to Ihe Lender any amount
<br />necessary to make up Ihe deficiency. on or before the dale when
<br />payment of such ground renl!;, taxes, assessments. or insurance
<br />premiums shall be due. If at any time the Borrower shall tender In
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby, full payment of the entire indebtedness represented thereby,
<br />Ihe Lender shall, in computing the amount of such indebtedness.
<br />crcdit [0 the account of the Borrower any balance remaining in the
<br />funds accumulaled under the provisions of (a) of paragmph 2 hereof.
<br />If there shall be a default under any of the provisions of this
<br />instrument resulting ill a public sale of the premises covered hereby,
<br />
<br />4. That the Borrower will pay ground renl'i, laxes, assessmenl'i,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefore,
<br />Rnd in default thereof the lender may pay the same; and that the
<br />Borrower will promptly deliver lhe official receiplS 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 inslrumenl or the debt secured hereby (but
<br />only to the eXlent that such is not prohibited by law and only to the
<br />extent thai such will not make this loan usurious), but excluding Rny
<br />income tax, State or Federal, imposed on lender, and wilt file the
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibiled 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 court decree
<br />prohibiting the payment by the Borrower of any such taxes, or if
<br />such law or decree provides that any amounl so paid by the
<br />Borrower shall be credited on the debt. Ihe Lender shall have the
<br />right to give ninety days' written notice to the owner of the premises,
<br />requiring the payment of the debt. If such notice be given, the said
<br />debl shall becomc due, payable and collectible at the expiration of
<br />said ninety days.
<br />
<br />6. That should the Borrower fail 10 pay any sum or keep any
<br />covenant provided for in Ihis instrumcnl. then the lender, al its
<br />option, may payor perform the same, and all expenditures 50 made
<br />shall be added to the principal sum owing on the said nole, shall
<br />be secured hereby, and shall bear interest at the rate set fonh in Ihe
<br />said note. until paid.
<br />
<br />7. That Ihe Borrower hereby assigns, transfers and sets over to the
<br />Lender, 10 be applied toward the payment of the note and all sums
<br />sccured hereby in case of a default in the performance of any of the
<br />terms and conditions of this instrument or the said note, alllhe rents,
<br />revcnuC5 Ilnd incomc to be derived from the said pn:mi~ 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 ror the
<br />purpose of repairing said pn:mises and of renting the same and
<br />collecting the rents, revenues and income, and il may pay nut of said
<br />incomes all expenscs of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />same and of collecting renlals therefrom; the balance remaining, if
<br />any, to be applied toward the discharge of said indebtedness.
<br />
<br />8. That the Borrower will kcep Ihe improvements now existing or
<br />hereafter erecled on the property. insured as may be required from
<br />time 10 time by the lender againslloss by firc 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 shall be held by the Lender and have attached thereto loss
<br />payable c1aus~ in favor of arId in form acceptable to the Lender. In
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