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<br />Borrower and Lender covenan. Bnd agree 85 (ollows:
<br />
<br />I. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in pan nn
<br />any installment due date.
<br />
<br />2. That, together with, and in addition to, the monthly paymcnt'i
<br />of principal and interest payab:e under the terms of the note secured
<br />hereby, the Borrower will pay to the Lender, on the first day of each
<br />monlh unlil the said note is fully paid, the following sums:
<br />
<br />(a) A sum equal to the ground rents, 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 Ihe property, plus taxes and
<br />assessments next due' on the property (all as estimated by (he Lender)
<br />less all sums already paid "therefor divided by the number of months
<br />to elapse before one (I) month prior to the dllle when such ground
<br />rents, premiums, laxes and assessments will become deliquent, such
<br />sums ;'0 be held by Lender in trusl to pay said ground rents,
<br />premiums, taxes and special assessments; and
<br />
<br />(b) All payments mentioned in the preceding subsection of Ihis
<br />paragraph and aU payments to be made under the note secured
<br />hereby shall be added togelher, and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment 10 be
<br />applied by the Lender to the following items in the order set forth:
<br />
<br />(I) ground rents, taKes, assessments, fire and other hazard insur-
<br />ance premiums;
<br />
<br />(II) interest on Ihe note secured hereby;
<br />
<br />(:II) amortization of the principal of said note; and
<br />
<br />(IV) late charges.
<br />
<br />Any deficiency in the amount of such aggregllle monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment, constitute an event of default under this
<br />mortgage. The lender may collect a "laic charge" nolto exceed four
<br />cents (4~) for each dollar ($ I) of each payment more than fifteen
<br />(15) days in arrears to cover the cKtra 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 exceed the amount of payments
<br />actually made by the Lender for ground rents, taxes and assessments
<br />or insurance premiums, as the case may be, such eKcess, if the loan is
<br />current, at the option of the Borrower, shall be credited by the
<br />Lender on subsequenl payments to be made by the Borrower, or
<br />refunded to 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 renl5. taxes 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, on or before the date when
<br />paymenl of such ground rents, taxes, assessments, or insurance
<br />premiums shall be due. If at any time the Borrower shall lender to
<br />the Lender, in accordance with the provisions of the note secured
<br />hereby. full payment of the entire indebtedness represenled Ihereby,
<br />the Lender shall, in computing the amounl of such indebledness,
<br />credit to the accounl of the Borrower any balance remaining in the
<br />funds accumulated under the provisions of (a) of paragraph 2 hereor.
<br />If there shall be a defaull under any of the provisions of this .
<br />instrument resulting in a public sale of the premises covered hereby.
<br />
<br />u----a~1
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<br />or if the Lender acquires Ihe property otherwise after defnult, lhe
<br />Lender shall apply, at Ihe time of the commencement of such
<br />proceedings, or at the lime Ihe property is otherwise acquired, the
<br />balance then remaining in the funds accumulated under Ca) of
<br />paragraph 2 pfl.'ceding, 85 a credil against the amount of principal
<br />Ihen remaining unpaid under slIid nole.
<br />
<br />4. That the Borrower will pay ground rent'i, taxes, assessments,
<br />water rates, and olher governmenlal or municipal charges, fines. or
<br />impositions, 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 Ihe officilill receipts therefor to the
<br />Lender.
<br />
<br />S. The Borrower will pay all taKes whiCh 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 the debt secured hereby (but
<br />only to Ihe eKtenl thai such is not prohibited by law and only to the
<br />cltlentthat such will not make this loan usuriOUS), bUI excluding any
<br />income tax, Slate or Federal, imposed on Lender, and will file the
<br />official receipl showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or hereafter existing from paying the whole or any portion
<br />of the aforesaid taKes, or upon the rendering of any courI 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, the Lender shall bave the
<br />righlto give ninety days' written notice to the owner of the premises,
<br />requiring the payment of the debt. If such DOlice be given, the said
<br />debt shall become due, payable and colleclible at the expiration of
<br />said ninely days.
<br />
<br />6. That should lhe Borrower fail to pay any sum or keep any
<br />covenam provided for in Ihis instrument, then the Lender, at its
<br />option. may payor perform the same, and all eKpenditures so made
<br />shall be added 10 the principal sum owing on the said nOle, shall
<br />be secured hereby, and shall bear interesl al the rate set fOrlh in the
<br />said note, unlil paid.
<br />
<br />7. That the Borrower hereby assigns, transfers and sets over to the
<br />Lender, to be applied toward the paymenl of the nole 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 note, alllhe rents.
<br />revenues and income 10 be derived from the said premises during
<br />such time 85 Ihe 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 premises and of renting the same and
<br />collecting the rents. revenues and income, and il may pay our of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and eKpenses incurred in renting and managing the
<br />same and of collecling rentals therefrom: the balance remaining, if
<br />any, 10 be applied toward the discharge of said indebledncss.
<br />
<br />8. That the Borrower will keep Ihe improvements now existing or
<br />hereafter erected on the property, insured as may be required from
<br />time to rime by the Lender against loss by fire and olher hazards,
<br />casualties and contingencies in such amounl!t and for such periods as
<br />may be required by Ihe Lender and will pay promptly, when due.
<br />any premiums on such insurance. provision for paymenl of which
<br />has nol been made hereinbefore. All insurance shall be carried in
<br />companies approved by .he Lender and the policies and renewals
<br />thereof shall be held by the Lender and have auached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. fn
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<br />HUD.92143DT.1
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