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<br />BOrf'O"l'r lad Ll'nder (OVl'nanl and laft'(' IS rollows:
<br />
<br />I. That Borrower will pay the indebtedness, as hereinbefore
<br />provided. Privilege is reserved to pay the debt In whole or in
<br />pan on Dny installment due: dale.
<br />
<br />2. Thai, together with, and in addlllon to, the monthly
<br />payments of principal and interest payable under the: rerms of
<br />the note secured hereby, the: Borrower wiil pay to the lender,
<br />on the first day of each monrh until Ihe said note: is iully paid,
<br />the followin.lj: sums:
<br />
<br />(a} A sum equal to the ground rents, If any, next due, plus
<br />the premiums that will nex.t become due: and payable on policies
<br />of fire and other hazard Insurance covering the property, plus
<br />taxes and assessments ner.1 due on the property (011 as estimated
<br />by (he Lender) less all sums already paid therefor divided by the
<br />number of monlhs to elapse before one (I) month prior to the
<br />date: when such ground rents, prr.miums, taxes and assessments
<br />will become dclinquent, such sums to be held by Lender in trust
<br />to pay said ground rents, premiums, laxes and special
<br />assessments; and
<br />
<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 shaH be paid by the narrower each month in a
<br />single payment to be applied by the Lender 10 Ihe following
<br />items in the order set forth:
<br />
<br />(I) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />
<br />(U) interest on the note secured hereby;
<br />
<br />(no amoniz.ation of the principal of said note; and
<br />
<br />(IV) late charges.
<br />
<br />Any deficiency in the amount of such aggregate monthly
<br />payment shall, unless made good by the Borrower prior to the
<br />dUt: datc of the next such payment, constitute an eVent of
<br />default under this mortgage. The Lender may coliect a "late
<br />chargc" not to exceed four ~nts (4lt) for each dollar ($1) of
<br />each payment more than fifteen (IS) days in arrears to cover the
<br />extra ex.pense involved in handling delinquent payments.
<br />
<br />3. Tha.t if the total of the payments made by the Borrower
<br />under (a) of paragraph 2 preceding shall exce:ed Ihe amounl of
<br />payments ac;ulllly made by the lender for ground rems, taxcs
<br />and assessments or insurance premiums, as Ihc case may be,
<br />such cxcess. if thc loan is currem, at the oplion of the
<br />Borrower. shall be credited by the Lender on subsequent
<br />paymcnts to bc made by the Borrower, or refunded 10 the
<br />Borrower. If, however, the monthly payments made by thc
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rcnts, taxes and asSe8smeD1S 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. Jf at any time
<br />the Borrower shall tender to the Lender, in accordance with Ihe
<br />provisions of the note secured hereby, full payment or 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 paragraph 2 hereof. If there shall be a
<br />defatslt 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 />88- 106E;04
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<br />acquircs the property otherwise after defaull, the Lender shall
<br />apply, at the lIme of the commencement of 5uch proccedlngfl, or
<br />al the time: the property 15 otherwlsc acquired, the balance then
<br />remaining In the funds accumulated under (a) of paragraph 2
<br />preceding, as a credit against the amount of prlncipallhen
<br />remaining unpaid under said note,
<br />
<br />4. Thai the Borrower will pay ground rents, taxes,
<br />B.'lsessments, water rales, and other governmental or municipal
<br />charges, fines, or impositions, for which provision has nol been
<br />made hereinbefore, and in default thereof the Leqdcr may pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts therefor to the Lender.
<br />
<br />5. The Borrower will pa.y all tllXes 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 deht 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 file the official receipt showing
<br />such payment with the lender. Upon violation of this
<br />undertaking, or ir the Borrower is prohibited by any law now or
<br />hereafter existing from paying the whole or any ponion of the
<br />aforesaid laxes, 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' 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.
<br />
<br />6. That should the Borrower fail to pay any sum or keep any
<br />covennnt provided for in this instrument, then the lender, at its
<br />opLion, may payor perform the same, and all expenditures so
<br />made shall be added to the principal sum owing on the said
<br />nole, 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 />and all sums secured hereby in case of a default in the
<br />perfonnance of any of the tenns and conditions of this
<br />instrumem or the said notc, all the rcnts, 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 same and
<br />collecting the rents, revenues and income, and it may payout of
<br />said incomes all expenses of repairins said premises and
<br />necessary commissions and expenses incurred in renting and
<br />managing the same and of collecting rentals therefrom; the
<br />balance remaining, if any, 10 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 ma~e
<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 105s
<br />payable clauses in favor of and in fonn acceptable to the
<br />
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<br />HUD.921430T.1
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