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{ I) month prior to its due date the amtuai mortgage insurance premium in order to provide such holder
<br />with funds to pay such premium to the Secretary of Housing and Urban Development pursuant tv the
<br />National Housing Act, as amended, and applicable Regulations thereunder; yr
<br />{II) If and sv long as said note of even date and [his instrument are held try the Secretary of Housing and
<br />Unbar. pevelopment, a monthly charge (ire lieu of a mortgage insurance premfumj which shall be in an
<br />mnvunt equal to one-twelfth (;/12} of one-half (1/Z) per centurn of the average outstanding }>alance
<br />due on rite note computed without Making into account delinquencies or prepayments;
<br />{tr) A sum equal iq floc ground rents. if gray, next due, plus the premiums th21 wlli next became due and payable on
<br />pnhcies of Lire and other hazy:d insurance covering the mortgaged property, plus taxes and assessments next due
<br />~.¢ on the mortgaged property (a11 ar estimated bn Lrre MurrgageeJ less all sums already paid therefor divided by the
<br />~ number of mwuhs to elapse before one month privy to the date when such ground rents, premiums, taxes and
<br />assessments will becotne delinouent, such sums to bs held by Mortgagee in trust to pay said ground rents, pre-
<br />r~ miunts. taxes and special assessments; avd
<br />m (c} x111 payments mentioned in the two preceding subsections of this paragraph and all payments to be made under
<br />~ the note secured hereby shall be added together, and the aggregate amount thereof shall be paid by the Mortgagor
<br />each month in a single payment ro be applied by the Mortgagee to the following items in the order set forth:
<br />~ (tj premium charges under the contract of insurance with the Secretary of Housing and Urban Development,
<br />[~
<br />or monitily charge Jin lieu ofmortgage bsurance premium;, as the case may be;
<br />(ti) ground rents. taxes, assessments, fire and other hazard insurance premiums;
<br />(III) interest on the note secured hereby; and
<br />(IV) amor[izar,un of the principal of said note.
<br />Any deficiency in the amaunt of any such aggregate monthly payment shall, unless-made good by the Mbrb
<br />gagor prior to the due date of the next such payment. a;nstitute an event of default under this mortgage. The
<br />Mortgagee may collect a "late charge" not to exceed four cents (4y} for each dollar (51) of each payment mare
<br />ihsn fifteen {I S) days iR areas to cover the extra expense involved in handling delinquent payments.
<br />~. That if the total of the payments made by the ltorkgagor under tbJ of paragraph 2 preceding shalt exceed
<br />the amaunt of payments actually made by the Mortgagee for ground rents, taxes and assessments or insurance pre-
<br />miums, as the case may be, such excess, if the loan is current, at the option of the Mortgagor, shall be credited bY'
<br />the iortgagee on subsequent payments to be made by the 1lattgagar, cr refunded to the 1lartgagor. If, however, Gke
<br />monthly payments made by the Mortgagor under (b} of paragraph 2 preceding shall not be sufficient co pay ground
<br />sent, taxes and assessments or insurance premiums, as the case may be, when the same shat! becorne due and pay-
<br />able, then the Mortgagor shall pay to the Vortgagee any amaunt necessary to make up the deficiency, on ar before
<br />the date when psyment of such ground rents. fates, assessment- or insurance premiums shalt be due. if at any
<br />time rite M1lortgagor sfiah tender to the 1lortgagee, in accvrdance with the prvvisions of the note secured he-.~..
<br />foil payment of the entire indebtednes.-: representt:d thereby, the 1lortgagee shall, in computing the amount of such
<br />int3ebtednass, credit tc the account of the hortgagor ail payments matte under the provisions of teJ of paragraph 2
<br />hereof which the Mortgagee has not become obligated to pay to the secretary of housing and L'rban Development
<br />and anti balance remaining in the funds accumulated under the provisions of (bi of paragraph 2 hereof. If there
<br />shall he a default under any of the provisions of this mortgage resulting in a public sate of the premises coveeed
<br />hereby, or if the 1lortgagee acquires the property otherwise after default, the Mortgagee shah apply, at the time of
<br />the commencement of such proceedings, or at the lime the property i= otherwise acquired, the balance then remain-
<br />ing in the funds accumulated under (1;) of paragraph 2 preceding, as. a credit against the amount of principal then
<br />remaining unpaid under said note. and shall properly adjust any payments which shall have been made under (aJ
<br />of paragraph 2.
<br />4. That the 44urtgagor will pay ground rents. taxes, assessments, water rates, and other governmental ar municipal
<br />charges. Tines. or impositions, far which prvvisian has trot been made hereinbeivre. and in default thereof the Mortgagee may
<br />pay the same; and that the Mortgagor will promptly deliver fire official receipts therefvr to the Mvrtgagee.
<br /><. The 3fortgagar will pay alt taxes which may be levied upon the Mortgagee's interest in said real estate and improve-
<br />ments. and which may be le:-red upon this mvrtgage ar the debt secured herehylbut only to the extent that such is oat prohibit-
<br />ed by law and vnly to the extent that such will not mzrke this loan usurious). but excluding any income tax, State or Federal,
<br />imposed an Mortgagee. and w ill fi3e *_he utficiat receipt showing such payment with the Mortgagee. Upon vivlatian of this under-
<br />taking. or if the Mvrtgaevr is prohibited by' arty law now err hereafter existing from paying the whole ur any portion of the afore-
<br />said taxes. or upon the rendering of am court decree prohibiting the payment h}-the Martgagar or any such taxes, yr if such law
<br />or decree provides that any amount so paid by the Murt_~gor shag! he credited an the mortgage debt, the Mortgagee shall have
<br />the right to give ninety days' written notice to the owner of the mortgaged premises. requiring the payment of the mortgage
<br />debt. ]f such notice be given, the said debt sha;l bea>me due, parahie and catlectible at the expiration of said nine€y days.
<br />h. That should he fail to pay any sum or keep any covenant provided far in this Mortgage. then the Mortgagee. at its op-
<br />tion, may pay or perform the same. and alt expenditures so made shell be added to the principal sum owing on the above note,
<br />shall Ire secured hereby. and shall bear interest at the rate set forth fn the said note, unto paid.
<br />7. That he hereby assigns, trar.~fers anti sets over tit the Mortgagee. to be applied roward the payment of the note and ail
<br />sums secured hereby in case of a default in the performance of am of the terms and condition of this Mortgage or the said
<br />pate. all the rents. revenues and income to he derived from the mortgaged premises during such time as the mortgage indebted-
<br />ness shat) remain unpaid: and the 14ortgagee shah have p:tt~ er to appoint goy agent ar agents it may desire fitt the purpose of
<br />repairing sand premises and of renting the same and colieaing the rents. revenues artd income, and it may pay out of said in-
<br />comes all expenses of repainting said premises and necessary commissions and expenses incurred in renting and managing the
<br />same and of collecting rentals therefrom; the balance remaining. if any, to be applied toward the discharge of said mortgage
<br />indebtedness.
<br />8. 1"ha[ he will keep the improvements now existing ar hereafter erected an the mortgaged property, insured as may be
<br />required from time to time by the Mortgagee against loss by fire and other hazards. casualties and contingencies in such
<br />amounts and far such periods as may be required by the Mortgagee and will pay promptly, when due, any premiums on such
<br />insurance prvvisian far paytneni of which has not been made hereinbefore..All insurance shall be carried in companies ap-
<br />praved by the Mortgagee and the policies anti renewals thereat shalt 6e held by the Mortgagee and have attached thereto lass
<br />payable clauses in favor of arsd in form acceptable to the h4ortgagee. In event of loss h4origagor wit! give immediate notice by
<br />mat! to the Mortgagee, wfio may make proof of toss if net made promptly by Mortgagor, and each insurance company con-
<br />cerned is hereby authorized and directed to make payment for such loss directly to the Mortgagee instead of to-the Mortgagor
<br />and the Mortgagee jointly. and the insurance proceeds, or any part thereof, maybe applied by the htor[gagee at its option either
<br />to the reduction of the indebtedness hereby secured or to [he restoration or repair of the property damaged. In event of foreclo-
<br />sure of this mortgage' or other transfer of title to the mortgaged property in extinguishment of the indebtedness sectued hereby.
<br />alt right, title and interest df Fhe hfartgagor in and to any insurance policies then in farce she!! pass to the purchaser or grantee.
<br />9. That as additional and collatera< security for the payment of the Hate described. and al! sums to became due under this
<br />mortgage, the 'viortgegar hereby assigns to the Mortgagee all profits, revenues, royalties, rights and benefits accruing to the
<br />Mortgagor+ttrt~ter any grid all oil and gas leases on said premises, with the right to receive and receipt for the same and apply
<br />them to said irid'ebfedness as well before as after default in the conditions of this mortgage. and the Mortgagee may demand. sue
<br />far and recover any such payments when due and payable, but shall not be required so to da. This assignment is to terminate
<br />and become null and void upon release of this mortgage. ,
<br />FHA-2743M {r0-77)
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