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86---- 105074
<br />The Mortgagor in order more fully to protect the security of
<br />this Mortgage, agrees:
<br />1. That he will pay the indebtedness, as hereinbefore provided_
<br />Privilege is reserved to pay the debt in whole or in pan 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 tercets 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 />to pay the next mortgage insurance premium if this utstramera
<br />and the note secured hereby are insured, or a monthly chargefn
<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 long as said note of even date and this in-
<br />strument are insured or are reinsured under the provsions 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 dam 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 thereunder; or
<br />(II) If and so long as said note of even date and this in-
<br />stru lent arc 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 />(1112) of one -half (1 /2) per centum of the average outstanding
<br />balance due en the note computed without taking into account
<br />detinquences or prepayments;
<br />_ (b) A sum equal to the ground rents, if any, next due, pies time
<br />_ premiums that will next become due and payable on policies of
<br />fie and other hazard insurance covering the mortgaged property,
<br />s plus taxes and assessments next due on the mortgaged property
<br />;all as estimated by the Mortgages) less all slims already paid
<br />I, therefor divided by the number of months to dam before one
<br />(1) month prior to the date when such ground rents, premiums,
<br />taxes and assessments will become delinquent, such sutras to be
<br />held by Mortgagee in trust to pay said ground rents, premiums,
<br />taxes and spectral assessments, and -
<br />(c) All payments mentioned in the two preceding subsections
<br />of this paragraph and all payments to be made under the mote
<br />secured hereby shah be added together, and the aggregate sanouw
<br />thereof shall be paid by the Mortgagor each mouth in a single
<br />payment to be applied by the Mortgagee to the following items in
<br />the old" set forth:
<br />(I). premium charges under the contract of insurance with
<br />the Secretary of Housing and Urban Development, or monthly
<br />charge (in lieu of mortgage iusurauce premium). as the deer may
<br />be;
<br />(1I) ground rents, taxes, assessments. fire and other hazard
<br />insurance premiums;
<br />(111) interes: on the mote secured hereby;
<br />OV) amortization of the principal of said mote, and
<br />(VI late charges-
<br />- Any deficiency in the amount of such aggregate monthly pay-
<br />mew shall, unless made good by the Mortgagor prior to the flue
<br />due of the next such payment, constitute an event of default
<br />under this mortgage. The Mortgagee way collect a "late charge
<br />not to exceed four cents (49) for each dollar (3I) of each pay-
<br />ment more than =fteei (I5) 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 exec-- 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 the 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_ If, .
<br />however, the monthly payments Horde 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 whest .
<br />payment of such ground rents, taxes, assessments, or insuratim
<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 trade 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 provvwos
<br />of (b) of paragraph 2 hereof. If there shall are 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 shag 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 sib) of paragraph 2 precedW
<br />as a credit against the amount of principal rhea remaining unpaid
<br />under said note, and shall properly adjust any payments witiClt
<br />shall have been trade under (a) of paragraph 2.
<br />4. That the Mortgagor will pay ground rents, taus,
<br />assessments, water rates, and other govertnaentai or municipal
<br />charges, fines, or impositions, for .which pro+ision has arcs been
<br />made herembefore. 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 taus which may be levied upon
<br />TM Mortgagee's interest in said real estate and improvements.
<br />and which may be pevied upon this mortgage of the debt secured
<br />hereby (but only to the extent that such is trot prohibited by law
<br />and only to the extent that such will not make this loan
<br />usurious), but excluding any income tax, State or Fiedetal, ma-
<br />posed on Mortgagee, and will file the official receipt showing
<br />such payment with the Mortgagee. Upon violataxi of this under-
<br />taking. or if the Mortgagor is prohibited by any lard now or
<br />hereafter existing from paying the when- or am, portion of the
<br />aforesaid taxes, or upon the rendering of any atria decree pro-
<br />hibiting the payment by the Mortgagee of any vA-.h taxes, or if
<br />such imw or decree provides that any amount so paid by the
<br />Mortgagor sham be credited on the toorrgagt debt„ the Mor
<br />shall have the right to give ninety days' wtattea notice to the
<br />owner of the, mortgaged premises. requiting the Payment of the
<br />mortgage debt. If such notice be given, the saW debt sbalt
<br />become due, payable and collectible at the expiration of salt
<br />ninety days.
<br />6. That should d ie Mortgagor fain to pay any.sum air keep any
<br />covenant provided for in thus mortgage, then the Mortgagee, at
<br />its option, may pas or perform the saint. aryl alt expenditures so
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