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<br />(1) mvnth prior to its due date the annual rnorigage insurance prermum in order to provide such holder
<br />with funds to pay such premium [o the Secretary of Hvusing and Urban Development pursuant to the
<br />National Housing Act, as amended, and applicable Regulations thereunder; or
<br />(IT} ff and so long as said note of even dale and this instrument are held by [he Secretary of Housing and
<br />Urtfan Devetapmertt, a monthly charge (in lieu of a mortgage insurance premium/ which shall be in an
<br />amount equal' to one-twelfth (lJi2} of one-half (1j2)'per centum of the average outstanding balance
<br />due on'the note computed withvuk taking into account delinquencies or prepayments;
<br />(b) A sum equal to the ground rents, it- any, next due, plus the premiums that will next become due and payable on
<br />policies of fee and other hazard insurance covering the mortgaged property, plus taxes and assessments next due
<br />on-the mortgaged-property (ail as esfimared bu rho Mortgagee] less aft sums already paid therefor divided by the
<br />number of months to elapse before one month prior tv the date when such ground rents, premiums, taxes and
<br />assessments wilt become delinquent, such sums to he held by Mortgagee in trust tr, pay said ground rents, pre-
<br />miums, nixes and special assessments, and
<br />(¢) All payments mentioned in the two preceding subsections of this•paragraph and ail payments to be made under
<br />the-note secured hereby shalE be added together, and the aggregate amount thereof shall be paid by the Mortgagor
<br />each month in a single payment tv he applied by the Mortgagee to the following items in rite order set forth:
<br />(1) premium chazges under [ba contract of insurance xcrth the Secretary of Housing and Urban Development,
<br />or monthly charge (in lieu nJ inttrrgage irrrurance r;remiuml. as the case may be;
<br />(ll) ground rents, taxes, assessments, fire and other hazard insurance premiums;
<br />(HI) interest on the note secured hereby; and
<br />tIV) amortization of the principal of sold note.
<br />Any defictancy in the amount vf' any such aggregate monthly payment shall, unless made good by the Mort-
<br />gagor prior to the due date of the next such payment. ccuisntute an :vent of default under this mortgage. The
<br />Mortgagee may collect a "late charge" not to exceed four cents (41r) for each dollar ($1) of each payment more
<br />than fifteen (I5) days in arrears to cover the extra expense involved in handling delinquent payments.
<br />3. That if the total of the payments made by the 1lortgagor under 7h' of paragraph 2 preceding shall exceed
<br />the amount of payments actually made by the Mortgagee for eround rents, taxes and assessments ar insurance pre-
<br />miums-, ay the case may be, such excess, if the icrart is current, at the option of the Mortgagor, shall be .credited by
<br />the Mortgagee an subsequent payments to be made by the Stortgatar, ar refunded to the y1ortgagor. lf, however, the
<br />monthly payments made by the Mortgagor under tbi of paragraph 2 preceding shall not be sufficient to pay ground
<br />root, taxes and assessments or in=urance premium, as dte case mac ne, Hhen the same shall become due and pay-
<br />able, then the Mortgagor shall pay to the Mortgagee arty amount. nccessarv to make up the deficiency, on or before
<br />the date when payment of suah ground rents, taxes, assessments or insurance premiums shall be due, IC at any
<br />time the Mortgagor shall tender to the Mortgagee, in acenrtiance with the provisions of the note secured hereby,
<br />full payment of the entire indebtedness represented [hereby, the 1longagee shall, in computing the amount of suah
<br />indebtedness, credit to the account of the Mortgages all payments made under [he provisions of (nJ of pazagraptr 2
<br />hereof wfiich rho 1lartgttgee has oat become obligated W pay tv the ~ecretan• of Housing irid Urban Development
<br />and any balance remaining in the funds accumulated under the provisions of 1'b/ of paragraph '~ hereof. It there
<br />shall he a default under any of the provisian~ of this morleage resulting in a public -ale of the premises covered
<br />heretry, or it the !ktur[gagee acquires the propartx othersise after der-suit, [he ~ylartgagee shall apply, a6 the-time of
<br />the commencement of such proceedings, or at the time the property i* othenxise acttuired, the balance then remain-
<br />ing in the funds accumulated under r Li of paragraph '~ pn•ceding, a- a credit again:~i the amount of principal then
<br />remaining unpaid under said mru. and tali properix adjust :uty payments +shich ,haU have been made under (a)
<br />of paragraph S.
<br />d. "Chat the Mortgagor will pay ground rents. taxes, dssessrnents, water rates, and other governmental or municipal
<br />charges, fines, or impositions, for which provision has not heed made hereinhefure, and i^ default thereof the Mortgagee may
<br />pay the same: and that the Mortgagor will promptly deliver the official rectrpts therefor to the Mortgagee.
<br />i. The Mortgagor will pay all taxes which may be levied upon the ~9ortgagre's interest in said real estate and improve-
<br />ments, and which may tx levied upon this mortgage or the debt secured hereby that Doty to the e.t[ent that such is not prohibit-
<br />ed by taw xnd only ut the e.uent that such will oat make ibis loan usunousl, but excluding any income tax. State or Federal.
<br />imposed on A•lartgager.:md will file the .dticial receipt showing such payment wuh the Mortgagee. Upon violation of this under-
<br />taking, or if the Mortgagor is pn>hibiied by any taw now or hereafter existing from paying the whole ur any portion of the afore-
<br />said taxes, yr upon the rendering of any court decree prohibiting the payment by the Mortgagor or any such taxes, ur if such law
<br />or decree pruvtdes that any amount so paid by the Mortgagor shall he credited on the mortgage debt, the Mortgagee shalt have
<br />the tight to give ninety days" written notice to the owner of the mortgaged premises, requiring the payment of the mortgage
<br />debt. Ef such notice be given, the said debt shalt become due, payable and collectible at the expiration of said ninety days.
<br />b. That should he fail to pay any sum yr keep any covenant provided for in this Mortgage, then the Mortgagee, at its ap-
<br />tion, may pay ur perform the .same, and ail expenditures so made shalt be added to the principal sum owing on the above note,
<br />shall he secured hereby, and shalt bear inrertst at the rate set forth in the said note, until paid.
<br />7. That he heretry assigns, transfers and sets over tv the Mortgagee, to he applied ivward the payment vi the note and all
<br />sums secured hereby in case of a default in the performance of any of the terms and conditions of this Mortgage yr the said
<br />irate, all the rents. revenues grid income tv be derived from the mortgaged premises during such time as the mortgage indebted-
<br />ness shalt remain unpaid; and the Mortgagee shall have power to appoint any agent or agents it may desire for the purpose vt
<br />repairing said juemises and of reining the same and cuilecting the rents, revenues and income, and it may pay out of said in-
<br />cer#es atlexpianses of repairing-said premises and necessary cummissiuns sod expenses incurred in renting and managing rho
<br />sortie smt•.of oolMctingrentals therefrom; the i,alanee remaining, if any. tv br applied toward the discharge of said mortgage
<br />indtb]edttecs:
<br />k. That tie ivitf keep the improvensents now existing or hereafter erected nn the mortgaged property, insured as may be
<br />reyuired.Itaxtt time to time- ~}° the Marigagte against Sass by flee and other hazards, casualties and contingencies in such
<br />amounts and fttr such periods as may be required by thr Mvrtgagrr and will pay promptly, when due, any premiums un such
<br />iirSarattee provisiiin far payment of which has-not ixen made hereinbefore. Ali insurance shall be carried in companies ap-
<br />prtived by-the iNixt~gcr amt-the palicie5 and renewals thereof shat} be held by the Mortgagee and have attached thereto loss
<br />payable clauses in favor of and in farm acceptable to the Mortgagee- In rvtnt of loss Mortgagor wilt give immediate native by
<br />}nail is th; Mortgagee, who may make prax,f of lass it not made promptly by Mvrtgagur. and each insurance company c<tn-
<br />trt•it~e3 htt~l+y atathoe2ed and directed ro make payment far such tars directly to the Mortgagee instr:ui of to fire Mortgagor
<br />a~i•the jointly, attic the insurance proceeds, u,=any part thereof, may be applied by ttre hfartgagee at its option Tither
<br />to the trdtnaitxt of ehe indtbtedoesa.ftcreta>stcurc«d a+r to the restcxatian ar repair of xbt property damaged. In event of fvrecla-
<br />sit€etrf this taartgcar oases iraosfer ut tide to the inar2gagrd property in extinguishment of the mdtbttdness secured hereby,
<br />alt tigitRN,~ieitNtatis! rsf ih>w Mdrtgagor in airdio any-insunin~ j+e#icies then in force shat) pass tv the purchaser ur grsnree.
<br />±t. '}?tat as addifianal :rod eatltateral secunty #ar the pay#tteoi of Ehe crate, described, and iii sums to hccamt due under this
<br />trk,rtgagc, tfrt h3amgagau hereby assigns to the Mortyiager 8~ pTiihf%reSrrrltes, royalties, rights and henrnts accruing to the
<br />Nart2r under any and all vet and tats teases nn said prtmisex, with the right to receive and rtcripl fur tits same and apply
<br />thin to wid inrlabtedttrss as vrrlt bttv,rc as after default in the svndiNvnx of ibis mortgage, and iht littrigagee may demand. sue
<br />fur and rt;eaevra arty such rsaymenis when dttt and payable. but shalt not t+e rrqused 4a to do ittis assignment is to trrmmatc
<br />acrd bnomt null and vvrti upon rtteaec ^i. then mortgage,
<br />esuti-s}2tf~tA t&rtil
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