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<br />The Mortgagor in order more fully to protect the security of
<br />Ibis Mortgage. iterates:
<br />1. 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 />to pay the next mortgage insurance premium if this instrument
<br />and the note secured hereby are insured, or a monthly charge fin
<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 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 Stational Housing Act, as
<br />amended, and applicable Regulations thereunder: or
<br />(11) If and so long as said note of even date and this to
<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 E 1 2) per centurn 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 duc. plus the
<br />premiums that will next becom! 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 />(all as estimatecl hs the Xfortgagee) 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 stems to he
<br />held by "Mortgagee in trust to pay said ground rents, premiums.
<br />taxes and ipecial assessments: and
<br />(c) Ali payments mentioned to the two preceding ,uhscitions
<br />of this paragraph and all payments to be made under the note
<br />secured hereby shall be added together. and the aggregate amount
<br />thereof shall he paid by the Mortgagor each month in a single
<br />payment to he applied by the Mortgagee to the following Items in
<br />the order set forth.
<br />ill premium charges under the conttact of insurance with
<br />the Secretary of Housing and Urban DeNciopinent, or rriottt 1h,
<br />charge (in lieu of rnorigage insurance premium), as the Lase rnas
<br />be.:
<br />ill) ground rents, tares, assessment,. fire and offiet hazard
<br />insurance premium,,
<br />(111) interest on !he note scoured hereby ,
<br />11V) amortization of the prv,:.ipal of said note. and
<br />iV) )site hatge,
<br />Arty deficiency in the 111101"11 ;.1 suih aitgregate triunthiy ray
<br />micnt shall, unless rnacic good b1 the Mortgagor garter !o the due
<br />date of the next sucfs payment, constitute an esctit ,rt default
<br />under thus rnortgage. The Mortgagee may collect ,i 'late charge'
<br />ngrt to exceed four cents (49) for each dollar ($I) of each pay
<br />86-4 105878
<br />merit 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 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 made by the Mortgagor under
<br />(h) 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, assessments, 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 t;nder 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 />M (b) of paragraph 2 hereof. If there shall be a default under
<br />am 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 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, tines, or impositions, for which provision has not been
<br />made heretnbcfore, and in default thereof the Mortgagee ma}
<br />pav the same: and that the Mortgagor will promptly deliver the
<br />official receipts therefor to the Mortgagee.
<br />s 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 />herehv abut only to the extent that such is not 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 Federal, im-
<br />posed on Mortgagee, and will file the official receipt showing
<br />such payment with the Mortgagee L' 1pon violation of this under-
<br />taking, or if the 'vloitgagor is prohiited by any law now or
<br />'itcreaftcr 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, rnr if
<br />,uch iaw or decree provides that any amount so paid by the
<br />Mortgagor shall be credited on the mortgage debt, the Mortgagee
<br />shall have tilts right to give ninety days' written notice to the
<br />Owncr of the mortgaged premises, requiring the pavrnerit tit the
<br />,mortgage debt if +uch notice he giver„ the said deh( shah
<br />hecome due, payable and collectible at the expiration of said
<br />timely days
<br />(_. That should the ``lortgavor fat) to pas in), burn of keep ally
<br />:c,scnant pm%ided t,_,r in this rnortgagc, then the Mortgage_, it
<br />its option. ntas pas ,r per,orin the same. and all expenditures si
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