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86._ 107279
<br />The Mortgagor is order more folly to protect the mcariq of
<br />tbk Mortgage, agrees:
<br />1- That he will pay the indebtedness, as herembefore provided.
<br />Privilege is reserved to pay the debt to whole or in part or, 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 slims:
<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 (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 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 sate 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 />(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 21 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 />(all as estimated by the Mortgagee) less alt sums already paid
<br />therefor divided by the number of months to elapse before one
<br />(1) month pnor to the date when such ground rents, premiums,
<br />taxes and assessments will become delinquent, such sums I be
<br />held by Mortgagee in !rust to pay said ground rents, premiums.
<br />taxes and special assessments; and
<br />(c) All payments mentioned in the iwv preceding suhscclion,
<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 shalt be paid by the Mortgagor each month in a ,Ingle
<br />payment to he applied by the Mortgagee to the following items in
<br />the order set forth:
<br />(1) premium charges under the contra,: 'It insurance with
<br />the Secretary of Housing and l'rban fMvrlopment- or morthh
<br />charge fin lieu of morritage insurance premium). as the case ma%
<br />be:
<br />(11) ground rents. taxes. a,scs teems, fire and ether hazara
<br />insurance premiums:
<br />(Ill) interest on the note secured hereby:
<br />(I%) amortization of the pnnctpai of said note: and
<br />(%') late charges
<br />Any deficiency in the amour, of such aggregate monthly pay-
<br />ment shall, unless made a0od by the xlorrgagor prior to the due
<br />date of the next such payment. consntute at-. event of default
<br />under this mortgage The Mortgagee may collect a "fate charge"
<br />not to exceed four cents 146) for °acts dollar (Sl) of each pay-
<br />ment more than fifteen (IS) 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 />(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, 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 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 (h) 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 the property is otherwise acquired, the balance then remain-
<br />ing in the funds accumulated under (b) of paragraph 2 preceding,
<br />as z 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 ta) 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 herembcfore, 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 he 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 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. Upon violation of this under -
<br />takmg, or if the Mortgagor is prohibited by any law now or
<br />hereafter existing from paying the whole or any porti,;n 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 :lays
<br />b. 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
<br />^.age 2 of a
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