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<br />87-- 1030-1:2
<br />The Martpg®r In order more fatly to protect the security of
<br />Mb Merlgage, Hrees:
<br />I. That he will pay the indebtedness, as hereinbefore provided.
<br />Privilege is reserved to pay the debt in whole or in part on any
<br />installment due date.
<br />2. That, together with, and in addition to, the monthly
<br />Payments of principal and interest payable under the terms of the
<br />note secured hereby, the Mortgagor will pay to the Mortgagee,
<br />on the first day of each month until the said note is fully paid,
<br />the following sums:
<br />(a) Amount sufficient to provide the holder hereof with funds
<br />10 pay the neat mortgage insurance premium if this instrument
<br />and the note secured hereby are insured, or a monthly charge (in
<br />lieu of a mortgage insurance premium) if they are held by the
<br />Secretary of Housing and Urban Development, as follows:
<br />(1) If and so tong as said note of even date and this in-
<br />strument are insured or are reinsured under the provisions of the
<br />National Housing Act, an amount sufficient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the an-
<br />nual mortgage insurance premium in order to provide such holder
<br />with funds to pay such premium to the Secretary of Housing and
<br />Urban Development pursuant to the National Housing Act, as
<br />amended, and applicable Regulations hereunder; or
<br />(11) If and so long as said note of even date and this in-
<br />strument are held by the Secretary of Housing and Urban
<br />Development, a monthly charge (in lieu of a mortgage insurance
<br />premium) which shall he in an amount equal to one - twelfth
<br />(1 /12) of one -half (lit) per centum of the average outstanding
<br />balance due on the note computed without taking into account
<br />delinquencies or prepayments;
<br />(b) A sum equal to he ground rents, if any, next due, plus the
<br />premiums that will next become due and payable on policies of
<br />fire and other hazard insurance covering the mortgaged property.
<br />Plus taxes and assessments next due on the mortgaged Property 4. That the Mortgagor will a
<br />(811 as estimated by the Mortgagee) less all sums ahead Pay ground rents, taxes,
<br />therefor divided by the number of months to elapse before one charges, fines, or impositions. tom' and other governmental or municipal
<br />(1) month prior to the date when such ground rents, premiums, made herembefore, and ault hereof thetMortgas not been
<br />taxes and assessments will become delinquent, such sums to be pay the same; and that the Mort Mortgagee may
<br />held by Mortgagee in trust o Pay said ground rents, premiums, official receipts therefor he the Mortgagor will Promptly deliver the
<br />taxes and special assessments; and Mortgagee.
<br />(c) All Payments mentioned in the two preceding subsections 5, The Mortgagor will pay all taxes which may be levied upon
<br />Of this paragraph and all payments to be made under the note he Mortgagee's interest in said real estate and improvements,
<br />secured hereby shall be added together, and the aggregate amount and which may be levied upon this mor[ a
<br />thereof shall be paid by the Mortgagor each month in a single hereby (but only to the extent that such isnotprohibited by law
<br />Payment to be applied by the Mongagee to the following items in and only to the extent that such will not make this loan
<br />the order set forth: usurious), but excluding any income tax, State or Federal, im-
<br />Posed on Mortgagee, and will file the official receipt showing
<br />such payment with the Mortgagee. Upon violation of this under-
<br />taking, or if the Mortgagor 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 pro-
<br />hibiting the payment by the Mortgagor of any such taxes, or if
<br />such law or decree Provides that any amount so paid by the
<br />Mortgagor shall be credited on the mortgage debt, the Mortgagee
<br />shall have the right to give ninety days' written notice to the
<br />owner of the mortgaged premises, requiring the payment of the
<br />mortgage debt. If such notice be given, the said debt shall
<br />become due, payable and collectible at the expiration of said
<br />ninety days.
<br />ment more than fifteen (15) days in arrears to cover the extra ex-
<br />pense involved in handling delinquent payments.
<br />3. That if the total of the payments made by the Mortgagor
<br />under (b) of paragraph 2 preceding shall exceed the amount of
<br />payments actually made by the Mortgagee for ground rents, taxes
<br />and assessments or insurance premiums, as the case may be, such
<br />excess, if tht loan is current, at the option of the Mortgagor,
<br />shall be credited by the Mortgagee on subsequent payments to be
<br />made by the Mortgagor, or refunded to the Mortgagor. 1f,
<br />however, the monthly payments made by the Mortgagor under
<br />(b) of paragraph 2 preceding shall not be sufficient to pay
<br />ground rents, taxes and assessments or insurance Premiums, as
<br />the case may be, when the same shall become due and payable,
<br />then the Mortgagor shall pay to the Mortgagee any amount
<br />necessary to make up the deficiency, on or before the date when
<br />payment of such ground rents, taxes, aueuments, or insurance
<br />premiums shall be due. If at any time the Mortgagor shall tender
<br />to the Mortgagee, in accordance with the provisions of the note
<br />secured hereby, full Payment of the entire indebtedness
<br />represented thereby, the Mortgagee shall, in computing the
<br />amount of such indebtedness, credit to the account of the Mort-
<br />gagor all payments made under the provisions of (a) paragraph 2
<br />hereof which the Mortgagee has not become obligated to pay to
<br />the Secretary of Housing and Urban Development and any
<br />balance remaining in the funds accumulated under the provisions
<br />of (b) of paragraph 2 hereof. If there shall be a default under
<br />any of the provisions of this mortgage resulting in a public sale
<br />of the premises covered hereby, or if the Mortgagee acquires the
<br />property otherwise after default, the Mortgagee shall apply, at
<br />the time of the commencement of such proceedings, or at the
<br />time he property is otherwise acquired, he balance then remain-
<br />ing in the funds accumulated under (b) of paragraph 2 preceding,
<br />as a credit against the amount of principal then remaining unpaid
<br />under said note, and shall properly adjust any payments which
<br />shall have been made under (a) of paragraph 2.
<br />(1) premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge fin lieu of mortgage insurance premium), as the case may
<br />be;
<br />(11) ground rents, taxes, assessments, fire and other hazard
<br />insurance premiums;
<br />(111) interest on the note secured hereby;
<br />(IV) amortization of the principal of said note; and
<br />(V) late charges.
<br />Any deficiency in the amount of such aggregate monthly pay.
<br />ment shall, unless made good by the Mortgagor prior to the due
<br />date of the next such Payment, constitute an event of default
<br />under his mortgage. The Mortgagee may collect a ''late charge"
<br />nee
<br />to exceed four cents (4t) for each dollar ($1) of each pay-
<br />6. That should the Mortgagor fail to pay any sum or keep any
<br />covenant provided for in this mortgage, then the Mortgagee, at
<br />its option, may pay or perform the same, and all expenditures so
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