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<br />BOrTOwrr and Lender c:uVfl'lanl and liIRrtc! III follo"l:
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<br />I. That Borrower will pay the IndebtedJ1css, as hereinbefore
<br />provided. Privilege is reserved to pay the debl In whole or In
<br />pari on any installmcnt due date.
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<br />2. That, logethe:r wilh, and In addition 10, the monthly
<br />pnymenC5 of principal and interest payable: under Ihe terms of
<br />the nOle sl:Cured 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 />(a) A sum equal 10 the ground rents, if any, ilcxL due, plus
<br />the: premiums Ihat will next become due nnd payable on policies
<br />of fire and other hazard insurance covering the property, plus
<br />taxes and assessm<<7nls next due on the property (011 as estimated
<br />by the Lender) les~ all sum:: already paid therefor divided by the
<br />numb.:r 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 />10 pay saJd ground rents, premiums, taxes and special
<br />assessments: and
<br />(b) AU payments mentioned in the preceding subsection of
<br />this paragraph and all paymenls to be made under the nole
<br />secured hereby shall be added together, and the aggregate
<br />amount Ihereof shall be paid by the Borrower each month in a
<br />single payment to be applied by the Lender 10 the following
<br />items in the order set fonh:
<br />(I) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(II) imerest on the note secured hereby;
<br />(Ill) amortization of the principal of said note; and
<br />(IV) late charges.
<br />Any deficiency in the amount of such aggregate monthly
<br />paymenl shall, unless made good by the Borrower prior to the
<br />due date of Ihe next such payment, constitute an event of
<br />deiault under this mortgage. The Lender may collect a "late
<br />charge" not to exceed four cents (4t) for each dollar ($1) of
<br />each payment morc Ihan fiFteen OS) days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
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<br />3. That if the tOlal of the payments made by the Borrower
<br />under (0) of paragraph 2 preceding shall exceed the amount 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 Ihe
<br />Borrower under (a) of paragraph 2 preceding shall 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, 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. I f 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, Ihe 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 upder
<br />the provisions of (a) of paragraph 2 hereof. If there shall be 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 />88- 106816
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<br />acquires the property otherwise after default, the Lender shall
<br />apply, at the time of the commencement of 8uch proceedings, or
<br />01 LIH' time lhe property is otherwise acquired, Ihe 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 note.
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<br />4. That the Borrower will pay ground rents, taxes,
<br />assessments, water rates, and 01 her governmental or municipal
<br />charges, fines. or impositions, for which provision has not been
<br />mode hereinbefore, and in default tlurreof the LeQder mBY pay
<br />the same; and that the Borrower will promptly deliver the
<br />official receipts therefor to the Lender.
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<br />S. 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 levied upon tbis instrument or the debt secured
<br />hereby (but only to the extent that such is not prohibited by law
<br />and only to the exlent that such will not make this loan
<br />usurious), bUI 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 if the Borrower is prohibited by any Jaw now or
<br />hereafter exisling from paying the whole or any ponion of Ihe
<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 Ihat any amount 50 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.
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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. and all expenditures 50
<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 Sct5 over
<br />to the Lender, [0 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 or the said note. nIl the renls, revenues and income
<br />to be derived from the said premises during such time as the
<br />indebtedness shall remaJn unpaid, and the Lender shall have
<br />power to appoint any agent or agents it may desire for the
<br />purpose of repaJring saJd premises and of renting the same and
<br />collecling 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 lhe same and of collecting renlals therefrom; the
<br />balance remaining. if any. to be applied toward the discharge of
<br />saJd indebledness.
<br />8. Thal 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 wiII
<br />pay promptly, when due, any premiums on such insurance,
<br />provision for payment of which has not been made
<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 auached lhereto loss
<br />payable clauses in favor of and in form acceptable [0 the.
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<br />HUD.92143DT .1
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