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<br />Borrower and Lender coven.DI and Dllrt'e!' as fnllows:
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<br />88- 107088
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<br />1. Thot Darrower wiII pay the indebtedness. as hereinbefore
<br />provided. Privilege Is reserved 10 p~'v the deot in who'! or In
<br />part on any installment due dOlc.
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<br />2. That, together with, and in addition to, the monthly
<br />payments of principal and interest payable under the terms of
<br />the note secured hereby, the Borrower will pay 10 the lender,
<br />on the first day of each month until the said nOle is fully paid,
<br />the following sums:
<br />(0) 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 />of fire and other hazard insurance covering the property, plus
<br />taxes and assessment!; nexl 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 (1) month prior 10 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 />to pay said ground rents, premiums, taxes and special
<br />assessments; and
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<br />(b) AU payments mentioned in the preceding subsection of
<br />this paragraph and aU payments to be made under the note
<br />secured hereby shall be added together, 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 fonh:
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<br />(I) ground rents, taxes, assessments, lire and other hazard
<br />insurance premiums;
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<br />(11) interest on the note secured hereby;
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<br />(Ill) amoniLfttion of the principal of said note: 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 mortgage. The Lender may collect a .'late
<br />charge" not to exceed four cents (4t) for each dollar ($1) of
<br />each payment more than fifteen (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 the loan is current, at the option of the
<br />Borrower I 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 rents, taxes and assessments or
<br />insurance premiums, w; the case may be, when the same shall
<br />become due and payable, then the Borrower shall pay to the
<br />Lender any amoun( necessary to make up the deficiency, on or
<br />before the date when payment of such ground rents, taxes,
<br />assessments, or insurance premiums shan be due. If 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 balar.lce 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 />ucquires Ihe proper1y olherwlse uner default, the Lender ~hull
<br />"pply, at the time of the commencement of such proceedings, or
<br />at the tim~ the property is otherwise acquired, the balance then
<br />remaining in the funds accumulated under (a) of paragraph 2
<br />preceding, as a credit lJgnins~ the amount of principal then
<br />remaining unpnld under said note.
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<br />4. That the Borrower will pay ground rents, laxes,
<br />assessment!., water rates, and other govern menial or municipal
<br />charges. fine. , or impositions, for which provision has not been
<br />mnde hl"'reinbefore, nnd in defauh thereof the 'Lender may PBY
<br />lllC same; and thai the Borrower will promptly deliver the
<br />official receipts therefor to the Lendcr.
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<br />5. The Borrower will pay all taxes which may be levied upon
<br />the Lender's interest in said real eslate 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 10 the extent that such will not make this loan
<br />usurious), but 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 law now or
<br />hereafter existing from paying the whole or any portion of the
<br />aforesaid taxcs, or upon Ihe rendering of any coun 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 shall have
<br />the right 10 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 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 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. 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 lime 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 Lend~r and will
<br />pay promptJy. 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'rene~s.thereof
<br />shall be held by the Lender and have attached thereto 10ss'
<br />payable clauses in favor of and in form acceptable to the
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<br />Page 2 of 5
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<br />HUD-921430T .1
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