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<br />88-
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<br />106846
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<br />Borrower lad Lender rnvrDlol and DarIN' 15 rollowIH
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<br />I. That Borrower wlli pay the: Indebtedness, 85 hereinbefore
<br />provided. Privilege is reserved 10 pay the debt in whole or In
<br />part on any lnstnllmc:nt due dale.
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<br />2. That, together with, and in addition to, the monthly
<br />payments of principa! and intcrest payable under the terms of
<br />the note secured hereby. the Borrower will pay to the under.
<br />on L'!c first day of each month untU the said note is fully paid.
<br />the following SUIm:
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<br />(8) A sum equal 10 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. plus
<br />laxes and assessments next due on the property (all as esfimated
<br />by the Lender) les!: all sums already paid therefor divided by the
<br />number of months to elapse before one (I) month prior to Ihe
<br />date when such ground rents, premiums, taxes and assessments
<br />will become delinqnent, such sums to be held by lender in trust
<br />to pay said ground rents, premiums, taxes and special
<br />llSSessments; and
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<br />(b) All payments mentioned in the preceding suosection of
<br />this paragraph and all payments to be made under the nOle
<br />securr:d hereby shall be added together, and the aggregate
<br />wnount thereof shall be p.3.id 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:
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<br />(1) ground renls, raxes. assessment!!, fire and other hazard
<br />insurance premiums;
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<br />(II) interest on the note secured hereby;
<br />(Ill) amortization of the principal of said note; and
<br />(IV) latc charges.
<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 />defauJt under this mongage. The Lender may collect a "Jate
<br />charge" not to exceed four cents (4ft) for each dollar ($1) of
<br />each payment more than fifteen (l!') days in arrears to cover the
<br />extra expense involved in handling delinquent payments.
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<br />3. That if the total of the paymems made by the Borrower
<br />under (a) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Lender for ground rents. raxes
<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 />paymenlS 10 be made by lhe Borrower. or refunded to the
<br />Borrower. I r, however ~ the monthly payments made by the
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground rents, laXes and assessments or
<br />insurance premiums, IlS 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 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 accumuJated under
<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 ~~~ hereby. or if the Lender
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<br />IIcquircs the property otherwise after defaull, the Lender shall
<br />nppl)., al lhe lime of Ihe ..:ommencement of .~uch procCC'dlngs, or
<br />ul Ihe time the propcny Is otherwise acquired, the balance Ihen
<br />remolning in the funds accumulated under (a) of paragraph 2
<br />preceding, as II credil against the amount of prlncipp.l then
<br />remaining unpaid under snid nole.
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<br />4, Thnl 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 />madr hereinbefore, and in default thereof the Le~der may pay
<br />the same; and that the Borrower win promptly deliver the
<br />cffidal 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 real estate and improv!:menLS, and
<br />which may be levied upon this instrument or the debt secured
<br />hereby (but only to lhe extent that such Is not prohibited by law
<br />and only to the extent that such will not make this loan
<br />usurious), bUl excluding any income tax. Stale or Federal,
<br />imposed on Lender, and will file the offidal receipt showing
<br />such payment with the lender. Upon violation of this
<br />undenaking, 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 taw or decree prO\ides that any amount so paid by the
<br />Borrower ,haJl he crediIed on the debt. the Lender ,hall have
<br />the right [0 give ninety days' wrinen notice to the owner of the
<br />premises. requiring the payment of the debl. I f such notice be
<br />gh'en. 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 an)'
<br />covenant provided for in this instrument, then the Lender. at its
<br />option, may payor perform the same. and all expenditures so
<br />made shall be added to Ihe 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 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 />performance of any of the lerms and conditions of this
<br />instrument or the said note, all the renls, 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 repairing said premises and
<br />necessary commissions and expenscs incurred in renting and
<br />managing the same and of collecting rentals therefrom; the
<br />balance remaining, if any. to be applied toward the discharge of
<br />said indebtedness.
<br />B. That the Borrower will keep the improvements now
<br />existing or hereafter erected on the propert}'. insured as may be
<br />required from time to time by the Lender against Joss by fire
<br />nod 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 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 attached thereto loss
<br />payable clauses in favor of and in form acceptable to the
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<br />HUD-92143DT-1
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