|
<br />Borrower IInd Lender covenanl and agree as rollows:
<br />
<br />I. Thai Dorro~er will Pay Ihe indebtcdness, a'i hereinbefore
<br />proviLlcd. Privilege is reserved to pay the debl in whole or in pan on
<br />any installment due date.
<br />
<br />2. That. together with. and in addition to. the monthly payments
<br />of principal and interest payable under Ihe lerms of Ihe note secured
<br />herehy, the Borrower will pay to lhe Lender, on the first day 01 each
<br />month until the said note is fullV paid, Ihe following sums:
<br />
<br />(a) ^ sum equal to the ground rents, if any. neJ[t due. plus the
<br />premiums that will next become due and payable on policies of fire
<br />and olher hazard insurance covering the property, plus laxes and
<br />assessments nexl due Qn the property (all as estimated by/he Lender)
<br />less all sums already paid therelor divided by the number of months
<br />10 elapse belore one (I ) month prior to the date when such ground
<br />rents, premiums. taxes and assessments will become deliquenl. such
<br />sums to be held by Lender in lrust to pay said ground ronts,
<br />premiums. taxes and spec;ial assessments; and
<br />
<br />(b) All payments mentioned in Ihe preceding subsection of Ihis
<br />paragraph and all paymenlS 10 be made under the note secured
<br />heroby shall be added together, and Ihe ll8fIregate amount the real
<br />shall be paid by Ihe Borrower each month in a single payment to be
<br />applied by the Lender to Ihe lollowing items in lhe order set lorth:
<br />
<br />(f) ground rents, taxes, assessments, fire and other hazard insur.
<br />anee prcmiumsi
<br />
<br />(II) interest on the note secured hereby;
<br />
<br />(III) amortization of the principal 01 said note; and
<br />
<br />(IV) late charges,
<br />
<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall. unless made good by Ihe Borrower prior to Ihe due dale of the
<br />nexlsuch payment, constitute an event of default under Ihis
<br />mortgage. The lender may collect a "late charge" not 10 exceed four
<br />cents (4c) for each dollar ($1) of each paymenl more than fifteen
<br />(IS) days in arrears to cover the exlra expense involved in handling
<br />delinquent payments.
<br />
<br />3. That illhe total of the payments made by the Borrower under
<br />(a) 01 paragraph 2 preceding shall exceed the amounl of payments
<br />actually made by the Lender for ground rents, taxes and assessments
<br />or insurance premiums, as the case may be. such excess, if the loan is
<br />current. at the optian of the Borrower. shall be credited by Ihe
<br />Lender on subsequent payments to be made by the Borrower, or
<br />reCunded to the Borrower. If. however. the monthly payments made
<br />by the 80rrower under (a) or paragraph 2 preceding shall not be
<br />5ufficicnllo pay ground rents, UlJes 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 10 Ihe Lender any amount
<br />necessary 10 make up the dencicncy. on or before the dale when
<br />payment of such ground rents. taxes. assessments, or insurance
<br />premiums shall be duc. If at any time the Borrower shall lender to
<br />the Lender, in accordance with Ihe provisions of the note 3ecured
<br />hereby, full payment of the entire indcbledness represented thereby.
<br />Ihe lender shall. in compuling the amount of such indebtedness,
<br />credit to the aecounl of the Borrower any balance remaining in the
<br />funds accumulalcd under the provisions of (a) of paragraph 2 hereof.
<br />If Ihero shall be a derault under any 01 the provisions or Ihis
<br />instrument resulling in a public sale of the premises covered hereby.
<br />
<br />l~ .. 'r.;O::t2
<br />
<br />88- 108095
<br />
<br />or if the Lender acquires the properly otherwise after defauU, the
<br />Lender shall apply, at the time of Ihe commencement of such
<br />proceedings, or al the time the property is othcrwise acquired, the
<br />balancc Ihen remaining in Ihc funds accumulated under (a) of
<br />paragraph 2 preceding. as a credia against the amount or principal
<br />then remaining unpaid under said note.
<br />
<br />4. Thallhe Borrower will pay ground rents, taxes, assessments,
<br />watcr rates, and other governmenml or municipal charges, fines, or
<br />imposilio~ for which provision has nol been made hereinbefore,
<br />and in defaull thereof Ihe Lender may pay the same; and that the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
<br />
<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 />mB~' be levied upon this instrument or the debl secured hereby (but
<br />only to the extent 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 tax, State or Federal, imposed on Lender, and will file the
<br />official receipt showing such paymenl with Ihe Lender. Upon
<br />violation of this undertaking, or il the Borrower is prohibited by any
<br />law now or hen:arter existing from paying the whole or any ponion
<br />or the aforesaid-Iaxes, or upon the rendering of any coun decree
<br />prohibiting the payment by the Borrower of any such taxes. or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower shall be crediled on the debt, the Lender shall have the
<br />right 10 give ninety days' written notice 10 lhe owner or the premises,
<br />requiring the paymenl of Ihe debt. ([ such notice be given, the said
<br />debt shall become due. payable and collectible al the expiration 01
<br />said ninely days.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant provided for in Ihis instrument. then .he Lender, at its
<br />option, may payor perform Ihe same, and all expenditures so made
<br />shall be added to the principal sum owinS on the said note, shall
<br />be secured hereby, Bnd shall bear interest at the rate set forth in the
<br />said nOle, until paid.
<br />
<br />7. That the Borrower hereby assigns, transfers and sets over to the
<br />Lender, to be applied toward the payment or Ihe note and all sums
<br />secured hereby in case of a default in the performance of Bny of the
<br />Icrms and condilions of this instrument or the said note, all the rents,
<br />revenues and income to be derived from the said premises during
<br />such time as Ihe indebtedness shall romain unpaid, and the Lender
<br />shall have power to appoinl any agent or agents iI may desire for Ihe
<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 renting Bnd managing the
<br />same and of collecting rentals therefrom: the balance remaining, 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 to lime by the Lender against loss by fire and other hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by (he Lender and will pay promptly, when due.
<br />any premiums on such insurance, provision for payment of which
<br />has nOl been made hereinbefore. All insurance shall be carried in
<br />companies approved by the Lender and the policies ifnd renewals
<br />thereof shall be held by the lender and have altached (herelo loss
<br />payable clauses in favrr of and in form acceptable to the Lender. In
<br />
<br />]
<br />
<br />Page 2 of 5
<br />
<br />HUD.92'43DT.,
<br />
<br />.,
<br />
|