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<br />BOR'O""rr aad Lendrr ('ovrnlnC and IlrN IS Follows:
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<br />88-- 106186
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<br />I. ThaI Borrower will PO)' the indebt~dness, as hereinbefore
<br />provided. Priviltge is reserved 10 pay the debt in whole or in
<br />pan on any installment due date.
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<br />2. Thai, together with, Bnd in addition to, the monthly
<br />payments of principal and interest payable under the terms of
<br />the note secured hereby, the Borrower wiU pay to the Lender.
<br />on the first day of each month until the said nole is fully paid,
<br />the following sums:
<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 fue and other hazard insurance covering the property, plus
<br />taxes and assessments neJIt due on the propeny (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, taxcs and as~essments
<br />will become delinquent, such sums to be held by lender in trust
<br />10 pay said ground rents, premiums, taxes and special
<br />asscssments; and
<br />(b) All payments mentioned in the preceding subsection of
<br />this paragraph and all payments 10 be made under the note
<br />secured hereby shall be added togeLher, and Ihe aggregate
<br />amount thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by Lhe Lender to the following
<br />items in the order sel fonh:
<br />(I) ground rents, laxcs, assessments, fire and 01 her hazard
<br />insurance premiums;
<br />(II) interest on Ihe note secured hereby;
<br />(Ill) amorti1.ation of the principal of said note; and
<br />(IV) late charges,
<br />An)' deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by Ihe Borrower prior to the
<br />due date of Ihe next such payment, constitule an event of
<br />default under this mongage. The Lender may collect a "late
<br />charge" not to exceed four cents (4') for each dollar ($1) of
<br />each payment more than fifteen (15) days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
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<br />3. That if the total of the payments made by the Borrower
<br />under (a) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents, taxes
<br />and assessments or insurance premiums, as the case may be,
<br />such excess, if the loan 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 Borrowc:r'sbaJl pa:no the
<br />lender any amount necessary to make up the deficiency, 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 />indebtedness represented thereby, the lender shaU, in computing
<br />the amount of such indebteciness, credit to the account of the
<br />Borrower any balance remaining in the funds accumulated under
<br />the provisioD.!i of (a) of paragraph 2 hamf. 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 th~ lender
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<br />acquires Ihe property otherwise after default, the Lender shall
<br />apply, at the lime of tt.e 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 pluagraph 2
<br />preceding, as a credit against the amount of principal then
<br />remaining unpaid under said note.
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<br />4. That the Borrower will pay ground rents, taxes.
<br />assessments, water 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 LelJder may pay
<br />the samej and that the Borrower will promptly deliver tht
<br />official receipts therefor to the 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 (but only to the extent that such is not prohibited by law
<br />and only 10 the extent that such will not make this loan
<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 ponion 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, the lender shall have
<br />the right to give ninety days' written notice to the owner of the
<br />premises, requiring the payment of the debt. If such notice be
<br />given, the said debt shall become due, payable and collectible at
<br />the expiration of said ninety days.
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<br />6. Th.at should the Borrower fail to pay any sum or keep any
<br />covenanL provided for in this instrument, [hen the Lender, at its
<br />option, may payor perform the same, and all expenditures so
<br />made shall be added to the principal sum owing on the said
<br />note, shall be secured hereby, and shall bear interest at the rate
<br />set fonh in Ihe said note, until paid.
<br />7. That the Borrower hereby assigns, transfers and sets over
<br />to [he Lender, to be applied toward the payment of the note
<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 appoint any agent or agents it may desire for the
<br />purpose of repairing said premiscs and of renting the same and
<br />coUming the renlS, revenucs and income, and it may payout of
<br />said incomes aU 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 loward the discharge of
<br />said indebtedncss.
<br />8. That the Borrower will keep the improvements now
<br />existing or hereafter erected on the property, insured as may be
<br />required from time lO time by the Lender against loss by fire
<br />and other hazards, casualtics and contingencies in such amounts
<br />anrl, for such periods as may be required by the lender and will
<br />pd.y promptly, when due, any premiums on such insurance,
<br />provision for payment of which has not been made
<br />hereinbefore. All insurance shall be carried in companies
<br />approved by the lender and the policies and renewals thereof
<br />shall be held by the Lender and have attached thereto Joss
<br />payable dauscs in favor of and in form accePtfb~~ ~o~ t~e
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<br />HUD-92143DT-l
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