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<br />88_ 106344
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<br />Borrower aad Leader cowea_at and aRIft! as foUo".:
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<br />I. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt in whole Of in
<br />pan on any installment due date.
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<br />2. That. together with, nnd 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 fuUy paid,
<br />the following sums:
<br />ta) 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. plw
<br />taxes and assessments next due on the property (all as estimated
<br />by Ihe l.t!ndn-) les, all ,ums aJready paid thetefol divided by tbe
<br />Dumber of months 10 elapse before ODe (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 />assessmCDts; and
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<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 shall 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 Lender to the following
<br />items in the order set forth:
<br />(I) ground rents. taxes. assessments. lire and other hazard
<br />insurance premiums;
<br />(II) interest on the note secured hereby;
<br />(111) amonization of the principal of said note; and
<br />(IV) late cbarges.
<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 mongage. The Lender may collect a Ulate
<br />charge" not 10 ..ceed fOUl cents (4C) fOI each dollar (51) of
<br />each payment more than fifteen (IS) days in arrears to cover the
<br />extra expeniC involved in handling delinquent payments.
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<br />3. That if the total of the payments made by Ihe Borrower
<br />undet (a) of paragraph 2 preceding ,ball ..ceed the amount of
<br />payments actually made by the Lender for ground rents, taxes
<br />and assessmentJ or insurance premiums. as the case may be,
<br />such 9C5Ji, if the loan ili current. at We option of the
<br />Borrowet. ,hall be ctedited by the Lendet on ,ubsequent
<br />payments to be made by the Borrower, or refunded to the
<br />Borrower. If, however, the monthly payments made by the
<br />BotrOwer undet (a) of paragraph 2 preceding ,ball 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, Ihen the Borrower sball 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 />assessmcnu, 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 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 paragrapb 2 hereof. If there shall be a
<br />default UDder any of the provisions of this instrument resulting
<br />in a public sale of the premises covered hereby, or if lhe Lender
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<br />acquires the property otherwise 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 a credit against the amount of principal then
<br />remaining unpaid under said nole.
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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 Lender may pay
<br />the same; and that the Borrower wilt promptly deliver the
<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 lcvied 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, State or Federal,
<br />imposed on Lender, and will me Ihe 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 paymen1 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 tq give ninety days' wrinen notice to the owner of the
<br />premises, requiring the payment of the dcbt. 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 instrumcnt, then We 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 rale
<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 lOward the payment of the nOle
<br />and all sums secured hereby in case of a default in tbe
<br />performance of any of the terms and conditions of this
<br />instrument or tbe said note, all the rents, revenues and income
<br />10 be derived from the said premises during. such time as the
<br />indebtedness sball 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 all expenses of repairing said premises and
<br />necessary commissions and expenses incurred in renting and
<br />managin$ tbe 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 tbe improvements now
<br />existing or hereafter erected on the propeny. insured as may be
<br />required from time to time by the- Lender asainst loss by rue
<br />and other hazards, casualties and contingencies in such amounts
<br />and for such periods as may be required by the Lender and win
<br />pay promptly. when due, any premiums on such insurance,
<br />provision for payment of which has not been madc
<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 loss
<br />payable clauses in favor of and in fonn acceptable to the
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<br />HUD-92143DT-1
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