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<br />Borrowrr Ind Lrndrr ~.-::. t.=-i;= ~nd IBne IS follows:
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<br />88- t07016
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<br />I. Thnt Borrower will pay the indebtedness, [is hereinbefore
<br />provided. Privilege is re::;:L'.rved to PRY the debt in whole or in
<br />part on any Installment due dale.
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<br />2. Thnl, together with, and in addition tol 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 no Ie is fully p'lld,
<br />the following sums:
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<br />(a) 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 />or fire and other hazard insuran~e covering the property, plus
<br />taxes and assessments next due on the property (all as estimated
<br />by the Lender) less all sums already paid therefor divided by the
<br />number of months to elapse before one (I) month prior to the
<br />date when such ground rents, premiums, taxes and assessments
<br />wiD become delinquent, such sums to be held by lender in trust
<br />to pay said ground rents, premiums, taxes and special
<br />assessments; 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 logether. 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:
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<br />(I) ground rents. taxes, assessmenls, fire and other hazard
<br />insurance premiums;
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<br />(II) interest on the note secured hereby;
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<br />(Ill) amortization of the principal of said nOle; and
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<br />(IV) late charges.
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<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 "late
<br />charge" not to exceed four cents (4lt) for each dollar (St) of
<br />each payment more than firteen (15) 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 payments 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, taxes
<br />and assessments or insurance premiums, as the case may be,
<br />such excess, if tbe 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 the
<br />Borrower under (a) of paragraph 2 preceding shall not be
<br />sufficient to pay ground renLS, 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. If at any time
<br />[he 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 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 />acquires the property otherwise arrer default. the Lender shall
<br />apply, at rhe time of the com:nencement of such proceedings, or
<br />Q( the rime the property ill otherwise acquired, the balance then
<br />remaining in the funds accumulnred 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 />asse:)sments. 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 th~ Borrower will promptly de'liver the
<br />official receipts therefor to the Lend~r.
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<br />5. The: Borrower will pay 011 taxes 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 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 IOBn
<br />usurious), but excluding any income taxI 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 law now or
<br />hereafter existing from paying the whole or any ponion 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 law or decree provides that any amount so paid by the
<br />Borrower shall be credited on the debt. the lender shan 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 faii 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 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 rate
<br />set forth in the said note, until paid.
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<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 an 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. all the rents. 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 expenses 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.
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<br />8. That the Borrower will keep the improvements now
<br />existing or hereafter erected on the propeny. 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 amounLS
<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 auached thereto loss
<br />payable clauses in favor of and in form acc.:ptable to the
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<br />Page 2 of 5
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<br />HUD.92143DT.'
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