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<br />Borrower and Lender rovenant 100 IKfft I" roltows:
<br />
<br />1. Thai Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole or in pari on
<br />any instlllmenl due date.
<br />
<br />2. That. together Wilh, and in addition to, lhe monthly paymenlS
<br />of principal and inleres1 payable under the terms of the nole secured
<br />hereby, the Borrower will pay to the Lender, on the first day of each
<br />month until the said nOle is fully paid, the following sums;
<br />
<br />(a) A sum equal to the ground renlS, if any, next due, plus the
<br />premiums thai will next become duc and payable on policies of fire
<br />and other hazard insurance covering the propcny, plus laxes and
<br />assessments next due on the propeny (all as est;lftQled by the Lender)
<br />less all sums already paid therefor divided by the number of months
<br />to elapse before one U ) month prior to the date when such ground
<br />rents, premiums, laJ:cs and assessments will become deliquent, such
<br />sums to be held by Lender in trust to pay said ground rents,
<br />premiums. laJ:es and special assessments: and
<br />
<br />(b) All payments mentioned ip the preceding subsection of this
<br />paragraph and aI! payments 10 be made under Ihe note secured
<br />hereby shall be added together, and the aggregale amount thereof
<br />shall be paid by the Borrower each monlh in a single payment 10 be
<br />applied by the Lender to the following items in the order set fonh:
<br />
<br />(I) ground rents. taxes, assessments, fire and other hazard insur-
<br />ance premiums;
<br />
<br />(II) interest on the note secured hereby:
<br />
<br />(III) amonization of Lhe principal of said note:; and
<br />
<br />llV I late charges.
<br />
<br />Any deficiency in the amounl of such aggregate monthly payment
<br />shall, unless made good by the Borrower prior to the due date of the
<br />next such payment., oonstitute an event of default under this
<br />mortgage. The Lender may collect a "Jate charge" nol to exceed four
<br />cents r4tl for each dollar 1$1) of each payment more Ihan filteen
<br />(15) days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
<br />
<br />3. That if the total of the payments made by the Borrower under
<br />(8) of paragraph 2 preceding shan exceed the amount of paymL."lIts
<br />actually made by the Lender for ground rents. taxes and Bssessment!l
<br />or insurance premiums, as the case may be. such excess, if the loan l!o
<br />current.. at the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower, or
<br />refunded to the Borrower. If, however, the monlhly payments made
<br />by the Borrower under (al of paragraph 2 preceding shall not he
<br />sufficient to pay ground rents. taxes and assessments or insurance
<br />premiums. as the case may be, when the ~me shall become due and
<br />payable, then the Borrower shall pay to the Lender any amounl
<br />necessary to make up the deficiency, on or before lhe dale when
<br />payment of such ground rents, taxes. assessments, or insurance
<br />premiums shall be due. If al 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 represented thereby.
<br />the Lender shall. in computing the amounl of such indebtedness.
<br />credit to the account of the Borrower any balance remaining in the
<br />funds accumuJaled under the provisions Df (a) of paragraph 2 hereof.
<br />If there shall be a default under any or the provisions of this
<br />instrumenl nsulting in a public sale Df the premises covered hereby.
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<br />88-106281--
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<br />or if the lender acquires Ihe property olherwise after default, the
<br />lender shall apply, althe time of Ihe commencement of such
<br />proceedings, or allhe lime the property is otherwise acquired, Ihe
<br />balance then remaining in the funds accumulaled under (a) of
<br />paragraph 2 preceding, as II credit againslthe amount of principal
<br />Ihen remaining unpaid under said nole.
<br />
<br />4. That the Borrower will pay ground rents, laxes. assessmcn15,
<br />waler rates, and other governmental or municipal charges. fines. or
<br />impositions., for which provision has not been made herrinbefore,
<br />and in default thereof the Lender may pay Ihe same; and Ihat 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 inleresl in said real estate Bnd improvements, and which
<br />may be levied upon this inslrument or the debt secured hereby (bul
<br />only to Ihe extent that such is not prohibiled by law and only to the
<br />extenlthat such will not make this loan usurious), but excluding any
<br />income laX, Slate or Federal, imposed on lender, and will file the
<br />official receipt showing such payment wilh the Lender. Upon
<br />violation of this undertaking. or if Ihe Borrower is prohibited by any
<br />law now or hereafler existing from paying Ihe whole or any ponion
<br />of the aforesaid laxes, or upon the rendering of any court decree
<br />prohibiling 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 ,hall he credited on the deb~ the Lender shall have lhe
<br />righlto give ninety days' wrilten notice to the owner of the premises,
<br />requiring Ihe payment of the debl If such notice be given. the said
<br />debl shall become due. payable and collectible at the expiration of
<br />said ninety da,s.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covenanl provided for in this instrument, then the lender. at its
<br />oplion, may payor perform Ihe same, and all expenditures so made
<br />shall be added to the principal sum owing on the said note, shall
<br />be secured hereby, and shall bear interest althe rate sel fonh in Ihe
<br />said note, until 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 perfonnance of any of the
<br />terms and conditions of this instrument or the said note. all the renlS.
<br />revenues and income to be derived from tbe said premises during
<br />such lime Oll the: indebtedness shall remain unpaid, and the Lender
<br />shall have power to IIppoinl any agent or agents it may desire for the
<br />p:.i' pose uf repairing said premises and of renting the same and
<br />colleeling the rents. revenues and income. and it may payout of said
<br />incuOIc!I all cJlpcnses of repairing said premises and necessary
<br />COmnll!\~lOn~ and CJlpcnscs incurred in renling and managing the
<br />same Bnd of collecting rentals Iherefrom: the balance remaining, if
<br />any. to he applied loward lhe di<eharge of said indebtedness.
<br />
<br />8. Thai the Borrower wiU keep the improvements now existing or
<br />hereaher erected on the propeny, 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 amounls and for such perioas as
<br />ma). be required by the Lender and will pay promptly, when due,
<br />any premiums on such insurance, provision for payment of which
<br />has nOl been made hereinbefore. An insurance shan be carried in
<br />companies approved by the Lender and the policies and renewals
<br />thereof shall be held by the Lender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. In
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<br />HUD-92143DT-1
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