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<br />01 100024
<br />The Mangagor in order more fully to protect the wirurity of mcni more than fifteen (15) days in arrears to cover the extra ex-
<br />o %f pense involved in handling delinquent paym °nts.
<br />I. That he still pas the is do :btedress, as hereirbefore pr,nided
<br />Privilege is reserved to pay the debt in whole or in part on any
<br />mstalknent due dat.c.
<br />2. `That, together with. and in addition €o, the monthly
<br />pa, is of principal and interest payable uml,!r 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 />(at 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 morigap 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 National Housing act, as
<br />amended. and applicable Regulations thereunder, or
<br />(II) if and so tong 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 tin flew of a ntongace ;nsurar. e
<br />premium) which shall be in an amount equal to one - twelfth
<br />(11 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 />(all 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 pay 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 />secured hereby shall be added together, and the aggregate amount
<br />thereof shall be paid by the Mortgagor each month in a smilie
<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 nonti. �
<br />charge (,in lieu .,f mo tgage insurance premium), as the case ma%
<br />be:
<br />(III ground rents, tares, assessments. fire and other hazard
<br />insurance premiums:
<br />illl) interest on the note secured her-hi:
<br />tlV) amortization of the principal of said mote: and
<br />ii') Mat,, 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 />not to exceed four :tents (a¢) for each dollar (9l i of each pay-
<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 he 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 shat: 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 duc. 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 she provisions
<br />M {bi 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 m the funds accumulated under IN 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 />s. 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 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 />51
<br />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 tout 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 Mile 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 />,ibiting the payment by the Mortgagor of any such taxes, or if
<br />,uch tau or decree provides that any amount so paid by the
<br />Mortgagor shall be credited on the mortgage debt, the Mortgagee
<br />,hall have the right to give ninety days' written notice to the
<br />owrter of the mongaged premises, requiring the payment of the
<br />mortgage debt. If such notice be given, the said debt shalt
<br />become due. payable and collectible at the expiration of said
<br />n ?n °ti, dais
<br />b. ? nat ,houid the Mortgagor fail to pay any sum or keep any,
<br />cosena nr provided tin. in this nncrtgage, then the Mortgagee, at
<br />its ,pion, may pay or perform the same, and all expenditures so
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