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<br />Borrower Ilnd Lt'nder co\'enanl and aRre... as followli:
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<br />88-- :1,06865
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<br />I. Thll Borrower will pa)lthe indchttJness, 3.'i hereinberore
<br />provided. Pri\lilege is rc."ier\led In pay the debt in whulc or in part on
<br />any installment due daHl.
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<br />2. That. together with, and in addilinn 10, the monthly payments
<br />or principal and inlerest payable under the terms or Ihe note secured
<br />hereby. Ihe Borrower will pay to t!'le Lender, on lhe first day uf Cltch
<br />monlh unlilthe said nole is rully paid. the rollowing sums:
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<br />(a) A sum equal to the ground rents, ir any. next due. plus the
<br />premiums Ihal will nexl become due and payable on policies or fire
<br />and other hazard insurance covering Ihe property, plus taxes and
<br />assessments next due on the property (all a.r eSlimored by Ihe Lender)
<br />less all sums already paid therdor di\lided by the number or months
<br />to elapse berore one (J ) month prior 10 the date when such ground
<br />rents, premiums, lalles and assessments will become dcliquent, such
<br />sums to be held by Lender in trust 10 pay said ground renL"i.
<br />premiums, taxes and special assessments; and
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<br />(b) All payments mentioned in the preceding subsection or this
<br />paragraph and all payments La be made under the nole secured
<br />hereby shall he added together, and the aggregate amount thereof
<br />shall he paid by the Borrower each month in a single payment to be
<br />applied by the Lender to Ihe rollowing ilems in the order set rorth:
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<br />(I) ground rents. taxes. assessments. fire and other hazard insur.
<br />ance premiums;
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<br />III) interest on the note secured hereby:
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<br />(III) amortization of the principal of said note; and
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<br />(IV I lale charges.
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<br />Any deficiency in the amount of such aggregate monthly payment
<br />shall. unless made good by the Borrower prior to the due date of the
<br />next such payment., constitute an event or dcfauh under this
<br />mortgage. The Lender may collect a "Iatc charge" not to excctld four
<br />cents (4~1 for each dollar ($1) of each paymenl more than fifteen
<br />(15) days in arrears 10 cO\ler the extra expense involved in handling
<br />delinquent payments.
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<br />3. That ir the total of the payments made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the Ilmount of payments
<br />actually made by the Lender ror ground rents, taxes and assessments
<br />or insurance premiums, as thtl case may be, such excess, if the loan is
<br />current, at the oplion of the Borrower. shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower. or
<br />refunded 10 lhe Borrower. If, however. the monthly payments made
<br />by the Borrower under (a) of paragraph 2 preceding shall nol be
<br />sufficient to pay ground rents, taxes and assessments or insurance
<br />premiums, as the case may be, when Ihe same shall becomc due and
<br />payable. then Ihe Borrower shall pay to the Lender any Bmount
<br />necessary 10 make up the deficiency. on or before the date when
<br />payment of such ground rents. laxes. assessments, or insurance
<br />premiums shall be due. If al any time the Borrower shall lender hI
<br />the Lender, in accordance wilh the provision!> or the nule secured
<br />hereby, rull paymeOl of the entire indebtedness represented therehy,
<br />the Lender shall. in computing the amount of such indeblednc!ts.
<br />credit to Ihe account or the Borrower any balance remalmng in Ihe
<br />funds accumulated under the provisions or (a) of paragraph 2 hercuf.
<br />U there shall be a default under any of the provisions or Ihis
<br />instrument resuhing in a public sale orthe premises covered hereby.
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<br />or If the I.ender Ilctfulres Ihe prnperly Cllherwise after def/lult. the
<br />Lender shnllll(lply. allhe lime of Ihe commencemeitt of such
<br />procl.:edings, ur al (he lime Ihe property is IItherwise acquired. the
<br />balance Ihen remaining in the funds accumulated under (a) of
<br />paragraph 2 preceding, liS 0 credit againsllhe amnunt uf principal
<br />then remaining unpaid under slIill nute.
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<br />4. Thatlhe D,mower will pay ground renls, laxes, llS!ies~menl~.
<br />water rates, and other governmental or municipal charges. fines, or
<br />impositions. ror which provision hilS not been made hereinhcrnre,
<br />and in defllullthereof the Lemler may pay the same; and that Ihe
<br />Borrower will promptly deliver the official reCeipL"i therefor to lhe
<br />Lender.
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<br />s. The Borrower will pay alllaxc-'.; which may he levied upon the
<br />Lender's interest in said relll estale und improvemenL"i, and which
<br />may be levied upon this instrument or lhe debt sCt:ured hereby (but
<br />only to the exlenllhllt such is not prohibited by law Dnd only 10 the
<br />extent that such will not make this loan usurious). but excluding any
<br />income lax, State or Federal, imposed on Lender, and will file lhe
<br />official receipl showing such payment wilh the Lender. Upon
<br />violation of this undcrtakir,g, or if the Borrower is prohibited by any
<br />law now or hereafter exisling from paying Ihe whole or any portion
<br />of the aforcsaid laxes. or upon the rendering or any court decree
<br />prohibiting the payment by Ihe Borrower of any such taxes, or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt, the Lender shall have the
<br />right to give ninety days' written notice to the owner of the premises.
<br />requiring the payment of the debt. If such notice be given. the said
<br />debt shall become due. payable and collectible atlhe expiration of
<br />said ninely days.
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<br />6. That should the Borrower fail 10 pay any sum or keep any
<br />covenant provided for ill this instrument, then the Lender. al iL"i
<br />option. may payor perrorm the same. and all expenditures so made
<br />shall be added to the principal sum owing on the said note, shall
<br />b!: secured hereby, and shall bear interest at the rate sel forth in lhe
<br />said note. until paid.
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<br />7. That Ihe Borrower hereby assigns. transfers and sets over to the
<br />Lender, to be applied toward the payment of the note and all sums
<br />secured hereby in case or a default in the performance or any of the
<br />terms and condilions of this instrument or the said note. all the rents.
<br />revenues and income to be deri\led from the said premises during
<br />such time a"i the indebtedness shall remain unpaid. and the Lender
<br />shall have power to appoint any agent or agents it may desire ror the
<br />purpose of repairing said premises and of renting the same and
<br />collecling Ihe renL\. revenues and income. and il may payout of said
<br />incumes all ckpcnscs of repairing said premises and necessary
<br />c(lmmi~..illO.'i and ellpense.\ incurred in renting and managing the
<br />same and uf collecting rentals therefrom; the balance remaining, ir
<br />any. to he uppliellloward the discharge of said indebtedness.
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<br />H. Thai the Burrower will keep Ihe improvements now existing or
<br />hercllher erected un the property. insured as may be required from
<br />time to time by the Lender against lass by fire and alher hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by thc Lender and will pay promptly. when due.
<br />any premiums on such insurance. provision for payment of which
<br />has nol been made hereinbefore. All insurance shall be carriell in
<br />companies approved by the Lender and the policies and renewals
<br />therenf shall be held by the Lender and have auached therelo loss
<br />payable dause... in favor or and in form acceptable to the Lender. In
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<br />Page2015
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<br />HUD-92143DT-'
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