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<br />-- .--88-1-M.Qi3
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<br />Borrower and Lender covenlnllnd agree IS follows:
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<br />J. ThaI Borrower ,";'. i,,' '~e indebledness. as hereinbefore
<br />provided. Privilege", .,.."-<0.1 ,D pay lhe debl in whole or in pnrt on
<br />an)' instu.llmcnl duc date.
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<br />2. Thai. together with. and in additiun to, the monthly payments
<br />of principal and interest payable under the terms of the oole secured
<br />hereby, the Borrower will pay to Ihe Lender, on Ihe firsl day of eac~
<br />month until the said nole is fully paid. the following sums:
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<br />(a) A sum cquBllo the ground rents. if any, next due, plus the
<br />premiums that will next become due and payable on policies of fire
<br />and other hazard insurance covering the properly. plus [axes and
<br />assessments nexi due on the properly (all as eslimated by ,he Lender)
<br />less all sums already paid Iherefor divided by the nomber of months
<br />to elapse before one (I ) monlh prior to Ihe date when such ground
<br />rents, premiums, taxes and assessments will become deliquent, such
<br />sums to be held by Lender in Lrust to pay said ground rents.
<br />premiums, laxes and special assessments; and
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<br />(b) All payments mentioned in the preceding subsection of this
<br />paragraph and all payments to be made under the note secured
<br />hereby shall be added togelher, and the aggregate amount thereof
<br />shall be paid by the Borrower each month in a single payment to he
<br />=lpplied by the Lender to the following items in the order set forth:
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<br />(I) ground rents, taxes, assessments, fire and other hazard insur~
<br />ance premiums;
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<br />(II) interest on the note secured hereby;
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<br />(1I1l amonization of the principal of said DOle; and
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<br />(IV) late 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 of default under this
<br />mortgage. The Lender may conect a "'ate charge" not to exceed four
<br />cenlS (4~1 for each dollar ($1) of each payment more lhan fifleen
<br />(15) days in arrears to cover the extra expense involved in handling
<br />delinquent payments.
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<br />3. That if the total oflhe paymenlS made by the Borrower under
<br />(a) of paragraph 2 preceding shall exceed the amount of paymenls
<br />actually made by the Lender for ground rents, taxes and assessments
<br />or insurance premiums, as the case may be, such CllCesS. if the loan is
<br />current, at the option of the Borrower, shall be credited by the
<br />Lender on subsequent payments to be made by the Borrower. or
<br />refunded to the Borrower. If, however. the monthly payments made
<br />by the Borrower onder (a) of paragraph 2 preceding shall nol be
<br />sufficient to pay ground rents, mxes and assessments or insurance
<br />premiums, as the case may be, when the same shall become due and
<br />payable, then the Borrower shall pay to the lender any amount
<br />necessary to make up the deficiency. on or before the date when
<br />payment of such ground rents, taxes. assessments, or insurance
<br />premiums shall be due. If at any time the Borrower shaH tender to
<br />the Lender, in accordance with the provisions of the nOle secured
<br />hereby, fun payment of the entire indebtedness represented thereby,
<br />the Lender shall, in computing the amount of such indebtedness.
<br />credit to the account of the Borrower any balance remaining in the
<br />funds accumulated under the provisions of (al of paragraph 2 hereof.
<br />If Ihere shall be a default under any of Ihe provisions of lhis
<br />instrument resultir.g in a public sale of the premises covered hereby,
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<br />or jf the Lender acquires the property otherwise after default, the
<br />Lender shall apply, at the time or the commencement of such
<br />proceedings, or 11 the time the properly is otherwise racquired, the
<br />balance Ihen remaining in lhe funds accumulaled under (a) of.
<br />paragraph 2 preceding, as II credit against the amount of principal
<br />then remaining unpaid under said nole.
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<br />4. Thatlhe Borrower will pay ground rents, taxes, assessments,
<br />water rates, and other governmental or municipal charges, fines, or
<br />impositions, for which provision has not been made hereinbefore,
<br />t Id in defaulllhereof Ihe Lender may pay the same; and Ihat the
<br />Borrower will promptly deliver the official receipts therefor to the
<br />Lender.
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<br />5. The Borrower will pay alllaxes which may be levied opon lhe
<br />Lender's interest in said real estate and improvements, and which
<br />may be levied upon this instrument or the debl secured hereby (but
<br />only to the extent Ihat such is not prohibited by law and only to the
<br />extent that such will not make this loan usurious). but excluding any
<br />income tax. State or F~deral, imposed on Lender, and will file the
<br />official receipt showing such payment with the Lender. Upon
<br />violation of this undertaking, or if the Borrower is prohibited by any
<br />law now or hcrcarter existing from paying the whole or any portion
<br />of the aforesaid taxes, or upon the rendering of any court decree
<br />prohibiting the payment by the Borrower of any such taxes. or if
<br />such law or decree provides that any amount so paid by the
<br />Borrower ,hall be credited on the debl, Ihe Lender shall have lbe
<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 colleclible at the expiration of
<br />said ninety days.
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<br />b. 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 so made
<br />shall be added 10 Ihe principal sam owing on the said note, shall
<br />be secured hereby, and shall bear interest at the rate set forth in the
<br />said note. until paid.
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<br />7, That the Borrower hereby assigns, transfers and selS over 10 Ibe
<br />Lender. to be applied toward the payment of the note and all sums
<br />secured hereby in case of 3 default in the performance of any of the
<br />terms and conditions of this instrument or the said nole. all the rents,
<br />revenues and income to be derived from the said premises during
<br />such time 8S the indebtedness shall remain unpaid, and the Lender
<br />shall have 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 said
<br />incomes all expenses of repairing said premises and necessary
<br />commissions and expenses incurred in renting and managing the
<br />samc and o( collecting rentals therefrom; the balance remaining, if
<br />any. 10 be applied loward Ihe discharge of said indebtedness.
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<br />8. That the Borrower will keep the improvements now existing or
<br />hereafter erected on the property. insured as may be required from
<br />time to time by the Lender against loss by fire and other hazards,
<br />casualties and contingencies in such amounts and for such periods as
<br />may be required by Ihe Lcnder and will pay promptly. when due.
<br />any premiums on such insurance. provision for payment of which
<br />has not been made hereinbefore. All insurance shall be carried in
<br />companies approved by the lender and the policies and renewals
<br />thereof shall be held by the lender and have attached thereto loss
<br />payable clauses in favor of and in form acceptable to the Lender. In
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