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<br />Borrowrr and Lrndrr connanlMnd aRree as follows:
<br />
<br />J. niBt Rorrower will pay the indebtedness. us hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in purt on
<br />any instlUmcnl due dalc.
<br />
<br />2. That. together with. and in addition la, thc monthly payments
<br />of principal and interest payable under the terms of the note secured
<br />hereby. the Horrower ..will pay to the Lender, on the first day of each
<br />month until the said note is fully paid. the following sums:
<br />
<br />(a) A sum equal to the ground rents., if any, nexl 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 />assessments nexl due on the property (all as estimated by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />10 elapse befote one ( I ) month prior to the date when such ground
<br />rents, premiums, taxes and assessments will become deliquent, such
<br />sums to be held by Lender in trust to pay said ground rents.
<br />premiums. taxes and special assessments; and
<br />
<br />(h) All payments mentioncd in the preceding subsection or this
<br />paragraph and all payments to be made under the note secured
<br />herehy sholl be added together. and the aggregate amount thereof
<br />shall be paid by the Burrower each month in a single payment to be
<br />applied by the Lender to Ihe following items in the order SCI fonh:
<br />
<br />(I) ground rents. taxes, assessments, lire and other haz.a.rd insur.
<br />anee premiums;
<br />
<br />(II) in.eres. on the note secured hereby;
<br />
<br />(III) amortizalion or the principal of said note; and
<br />
<br />(IV) late charges.
<br />
<br />Any dcficiency in the amount or such aggregotc monthly payment
<br />shall. unlc" made good by lhc Borrower prior to thc due date or the
<br />next such payment, constitute an event of defau1t under this
<br />mortgage. The Lender may collect a "Iale chargc" not to exceed four
<br />cents (4e) for each dollar (51) of each paymenl more than fifteen
<br />(IS) days in arrears to co...er Ihe exlra expense involved in handling
<br />delinquenl payments.
<br />
<br />3_ ThaI if the total or the payments made by the Borrower under
<br />(aJ of paragraph 2 preceding shall exceed the amount of payments
<br />actuaUy made by the Lender for ground rents. laxes and assessments
<br />or insurance premiums, as the r,ase may be, such excess, if the loan is
<br />current. II the option of the Borrower. shall be credited by the
<br />Lender on subsequent paymenlS to be made by the Borrower, or
<br />rerunded to the Borrower. If, however, the monthly payments made
<br />by the Borrower under (a) or paragraph 2 preceding shall not be
<br />sufficienlta pay ground rcnl5, I8xcs and I15SCssmcnl5 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 to make up Ihe deficiency, on or before the date when
<br />payment of such ground rents, taxes, assessmenls, or insurance
<br />premiums shall be due. If al any lime Ihe Borrower shall lender 10
<br />Ihe Lender. in accordance wilh Ihe pro...isions of the nole secured
<br />hereby, full paymenl of the cntire indebtedness represented lherehy.
<br />the Lender s'hall. in computing Ihe amount of such indebtcdnrn,
<br />credil to the aecounl of Ihe Borrower any balance remaining in Ihe
<br />funds accumulated under Ihe pro...isions of (a) of paragraph 2 hereof.
<br />If thrre shall be a default under any of the provisions of this
<br />instrument resulting in a public sale of the premises co...ered hereby,
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<br />88-106221
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<br />or if the lender aClluues the property otherwise after deraull, the
<br />Lender ,hall opply, atthc time "r thc commcnccmenl of such
<br />proceedings. or at the lime 1he properly is otherwise acquired, the
<br />balance then remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, liS a credit against the amount or principal
<br />then remaining unpaid under said nole.
<br />
<br />4. Thatlhe Borrower wiil pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipa~ charges, rines, or
<br />impositions, for which provision has not been made hereinbefore,
<br />and in deraultthereor the Lender may pay the same; and that the
<br />Borrower will promptly deliver Ihe official teceipts therefor 10 the
<br />Lender.
<br />
<br />5. The Borrower wi1l pay alllaxes which may be le...ied upon the'
<br />Lender's inlerest in said real estate and improvements, and which
<br />may be levied upon this instrumenl or thi: debt secured hereby (but
<br />only to the extcnt thai such is not prohibited by law and only to the
<br />extent Ihat such will nol make this loan usurious), but excluding any
<br />income tax, Stale or Federal, imposed on Lender, and will me the
<br />official receipt 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 exisling from paying the whole or Bny ponion
<br />of the aforesaid laxes, or upon the rendering of any court decree
<br />prohibiting Ihe 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 credited on the debt, the Lender shall have the
<br />right to give ninelY days. written nolice 10 the owner or the premises,
<br />requiring the paymenl of the debt. If such notice be gi...en, the said
<br />debl shall become due, payable and colIeclible at the expiration of
<br />said ninety days.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenant pro'vided for in this instrument, then the Lender, at its
<br />option. may pay or perform the same. and all expenditures so made
<br />shall be added tn the principal sum owing on the soid note, sball
<br />be secured hetehy, and shall bear inlerest at the rate sel forth in Ihe
<br />said note, until paid.
<br />
<br />7. That the Borrower hereby assigns. transfers and sets o...er 10 the
<br />Lender, 10 be applied laward the payment oC the note and aU sums
<br />secured hereby in case of a default in the performance of any of the
<br />terms and conditions oC 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 the indebtedness shall remain unpaid, and the Lender
<br />shall have power to appoint any agent or agents it may desire for the
<br />purpose or repairing said premises and of renling the same and
<br />collecting the rents, revenu.:s and income, and il may pay oul of said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />same Bnd of collecting rentals therefrom; Ihe balance remaining, ir
<br />any. 10 be applied toward the discharge of said indebtedness.
<br />
<br />8. ThaI the Borrower will keep the improvements now existing or
<br />hereaCter erected on the properly, insured as may be required rrom
<br />lime 10 time 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 the Lender and will pay promptly. when due,
<br />any premiums on luch insurancc, 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 />.hereof shall be held by the Lender and have attached theteto loss
<br />payable clauses in favor of and in form acccplable 10 the Lender. In
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