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<br />Borrowrr and Lender (ovenlnt and a.ree IS rollows:
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<br />88- 106201
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<br />1, That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt In whole or in
<br />part on any installment due date.
<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 note 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 fire and other hazard insurance covering the property. plus
<br />taxes and assessments next due on the property (all as estimated
<br />by the Lender) less all sums already paid therefor divided by lhe
<br />number of months to elapse before one (1) month prior to the
<br />date when such ground rents, premiums. taxes and assessments
<br />will become delinquent. such sums to be held by Lender In trust
<br />to pay said ground rents, premiums, taxes and special
<br />assessmentSj and
<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 shan be added together, and the aggregate
<br />amount thereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the lcnder to the following
<br />items in the order set forth:
<br />(I) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(II) interest on the note secured hereby;
<br />(111) amortization of the principal of said note: and
<br />(IV) lale charges.
<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 [0 exceed four cents (4l:) for each dollar ($1) of
<br />each payment morc than fifteen (IS) 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 />uuder (a) of paragraph 2 preceding shall exceed Ihe 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 Borrower shall pay to 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, fun payment of the entire
<br />indebtedness represented thereby, the Lender shall, in computing
<br />the amount of such indebtedness, credit to the account of the
<br />Borrower any balance remaining in the funds accumulated under
<br />the provisions of (a) of parag..-aph 2 hereof. If there shan be a
<br />default under any of the proYisions of this instrument resulting
<br />in a public sale of the premises covered hereby, or if th~ Lender
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<br />acquires the property otherwise aner defaulc, the Lender shall
<br />apply, a.t the time of the commencement of such proceedings, or
<br />at the time th~ property is otherwise acquired, the balance then
<br />rcmaining 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 note.
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<br />4. That the Borrower will pay ground rents, taxes,
<br />assessments. water ratcs, 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 same; and that the Borrower will promptly deHver the
<br />officiaL receipts therefor to the Lender.
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<br />s. The Borrower will pay alllaxes 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 to the extent that such will not make this Joan
<br />usurious), but excluding any income tax, State or Federal.
<br />imposed on Lender, and win 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 thc 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 50 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. Thv,1 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, and all expenditures so
<br />made shan 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 forth in the said note, until paid,
<br />7. That the Borrower hereby assigns, transfers and sets over
<br />to the Lender, to be applied toward the payment of the note
<br />Bnd 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, al1 the rents. revenues and income
<br />to be derived from the said premises during such time as the
<br />indebtedness shan 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 premises and of renting the same and
<br />collecting the rents, revenues and income, and it may payout of
<br />said incomes aU expenses of repairing said premises Bnd
<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.
<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 to time by the Lender against loss 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 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 Le.nder and the policies and renewals thereof
<br />shall be held by lhe Lender and have altfched thereto loss
<br />payabll" clauses in favor of and in form'8cUptable to the
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<br />HUD.92143DT-1
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