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<br />Borrower and under covenant and IIAre! liS rollows:
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<br />I. That Borrower will pay the indebtedness. as hereinbefore
<br />provided. Privilege is reserved 10 pay the debt in whole or in
<br />part on any installment due dute.
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<br />2. That. together with. and in addition to, the monthly
<br />payments of principal and interest payable under the temlS 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 />(n) A sum equal ~o the ground rents, if any. next due, plus
<br />the premiums that \\ill 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 the
<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 />assessments; and
<br />(b) All payments mentioned in the preceding subsection of
<br />this paragraph and all payments to be made under the nOle
<br />secured hereby shall be added together, and the aggregate
<br />amount thereof shall be paid by the Borrower each monlh in a
<br />single payment to be applied by the Lender to the following
<br />items in the order set forth:
<br />(I) ground rents. taxes, assessments, fire and other hazard
<br />insurance premiurr.s;
<br />(II) interest on the note secured hereby;
<br />(II)) amortization of the principal of said note; and
<br />(IV) late eharge..
<br />Any deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by the Borrower prior to 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" nOl 10 exceed four cents (40) for each dollar (S)} of
<br />each payment more than fifteen OS) days if! arrears to cover the
<br />extra expense involved in handling delinquent payments.
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<br />3. That if tl:te tolal of the paymenls made by the Borrower
<br />under (a) of paragraph 2 preceding shall exceed the amounl 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 .hall not be
<br />sufficient to pay ground rents, taxes and assessments or
<br />insurance premiums, as the case may be, when the same shan
<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 sucb ground rents, taxes.
<br />assessments, or insurance premiums shall be due. If at any time
<br />tbe 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 accounl of the
<br />Borrower any balance remaining in the funds accumulaled under
<br />Ihe provisions of (a) of paragraph 2 hereof. If there shall b. a
<br />default under any of the provisions of this instrument resulting
<br />in a public sale of the premises covered hereby, or if the Lender
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<br />acquires the property Olherwisl! after default, the Lender shall
<br />apply, at the time of the 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 paragraph 2
<br />preceding, as 0 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 />mode hereinbefore. and in default thereof the Lel!der may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts therefor to the Lender.
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<br />5. The Borrower will pay aU taxes which may be levied upon
<br />the Lender's interest in said rea] 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 loan
<br />usurious). but excluding any income tax, Stale 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 portion 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' wriuen 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. That 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, Bnd 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 forth in the said nole, 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 />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 ur 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 premises and of renting the SBme and
<br />collecting the rents, revenues and income, and it may payout of
<br />said incomes all expenses of repairing said premises and
<br />necessary commissions and expenses incurred in renting and
<br />managing the same and of collerting 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 propeny, insured as may be
<br />required from time to time by the lender againsl 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 nol been made
<br />hereinbefore. All insuranc~ shaJl be carried in companies
<br />approved by the Lender and the policies arid :itrte.wals',thereof
<br />shall be held by Ihe Lender and have attached thereto'ross
<br />payable clauses in favor of Bnd in form acceptable 10 the
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