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7 06194
<br />Tate M lea ttr wane fvtgr to Watect on aecarity of
<br />*b N . ttgasent
<br />1 + 1. That be will PAY the htdetuedtâ–ºesa, as hereinbeforc provided,
<br />Priv' is reserved to pay the debt in whole or in part on any
<br />installment due date.
<br />2. Thar, together with. and in addition to, the monthly
<br />Of NW WWM payable under the terms of the
<br />"Is "Owed hereby. the Mortgagor will pay to the Mortgagee.
<br />as the first day of each mouth until the said tune is fully pad,
<br />the following
<br />(a) AmOM sufficient to provide the hour hereof with funds
<br />to Pay the am mortgage insurance premium if this instrument
<br />and the am secured hereby arc insured, or a monthly charge (in
<br />f'en Of a insurance prenda r) if they are hew by the
<br />Secretary of Housing and Urban Development, as follows:
<br />(1) If NW so long as said note of even date and this in-
<br />strumcat are insured or are reinsured under the provisions of the
<br />National Housing Act, an account sufficient to accumulate in the
<br />hands of the holder one (1) month prior to its due date the an-
<br />nual mexrtgage 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 thereunder; 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 be in an amount equal to one- twelfth
<br />(1/12) of one -half (1/2) 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 the 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
<br />OR as estimated by the Mortgagee) less all sums already paid
<br />therefor divided by the number of months to elapse before one
<br />(1) month prior to the date when such ground rents, premiums,
<br />taxes and assessments will become delinquent, such sums to be
<br />held by' Mortgagee in trust to Icy said ground rents, premiums,
<br />taxes and special assessments; and
<br />(c) All payments mentioned in the two preceding subsections
<br />of this paragraph and all payments to be made under the note
<br />sacred hereby shall be added together, and the aggregate amount
<br />thereof shall be pad by the Mortgagor each month in a single
<br />Payment to be applied by the Mortgagee to the following items in
<br />the order set forth:
<br />(1) premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in 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 />(I1I) 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 />Ingot shall, unless made good by the Mortgagor prior to the due
<br />date of the [text such payment, constitute an event of default
<br />under this mortgage. The Mortgagee may collect a "late charge"
<br />not to exceed four cents (44) for each dollar ($I) of each paiy-
<br />ment more than fifteen 115) days in 401ears to cover the extra ox,
<br />panic Involved in handling delinquent payments.
<br />3. That if the total of the paymnetta made by the Mortgagor
<br />under (b) of paragraph 2 precedial shall exceed the amount or
<br />payments actually made by the Mortiliagest for ground rents, tam
<br />and Assessments or insuratee premiums, as am cue may bit, such
<br />excess, if the ban Gs 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. If,
<br />however, the monthly payments mode by the Air under
<br />(b) of paragraph 2 preceding shall am be sufficient: to pay
<br />ground rents, taxes and assessments or insurance premiums, as
<br />the can may be, when the sate shall become due and payable,
<br />then the Mortgagor shall pay to the Mortgagee any amount
<br />necessary to make up the deficiecy, on or before the date when
<br />payment of such ground rents, tam, assessments, or insurance
<br />premiums shall be due. If at any time the Mortgagor shit!) tender
<br />to the Mortgages, in accordance with the providons of the note
<br />secured hereby, full payment of the entire indebtedness
<br />represented thereby, the Mortgages 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 Mortgages acquires the
<br />property otherwise after default, the Mortgagee dull apply, at
<br />the time of the commencement of such proceedings, or at the
<br />time the property is otherwise acquired, the 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 />4. That the Mortgagor will pay ground rents, taxes,
<br />assessments, 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 Mortgagee may
<br />pay the same; and that the Mortgagor will promptly deliver the
<br />official receipts therefor to the Mortgagee.
<br />5. The Mortgagor will pay all taxes which may be levied upon
<br />the Mortgagee's interest in said real estate and improvements,
<br />and which may be Levied upon this mortgage 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 ban
<br />usurious), but excluding any income tax, state or Federal, im-
<br />posed on Mortgagee, and win 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 paw 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 />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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