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2. Tha~ in orde~ mo~e fully ta p~otect ~he security of this mortgagr, the murtgagur, togzther with, anJ in adJition tb, the monthly
paYments unde~ the te~ms of the notr sccurtd heroby, on the fint Jay ai each munth uotil the said note is fully paid, will pay to ~he
mortaagec ihe folluwing sums:
la) An amount suflicient to provide the holde~ hereof with funds to pay the ~ext mortpse.inwrance premium if ~his instrument and
the note securcd hercby are insurcd, or s monthiy charge (in iieu d a murt$a~ in3i;rar~.e psc~ssesm? if t~eY ss= ~!d ~Y
Secrc~ary of Housing and Urba~ Development, ss tolbws: •
(q If a~d so lons as said note af even date and this imtrument are insured or sre reinsurcd under the Drovisions oi the
National Housine Ac~. an amount wfFicient to aceumulate in the h~u?ds of the holder one ll) monthpriot to its due date the
annual mon~age insurance premium. i~ onk~ to provi~ie such holiler wi~h fundc to pay such premium to the Secretary of
Housin~ and U~ban Development pursuant to the National Housing Act, as ameMled. aod applicable Regulations
the~eunder or
111) If and so long as said note of,even date and this instrument ue held by ihe Set~staty of Housing and Urban Development,
a monthly charge li~ lieu of a moripge insurance premiuml which shall be in an amcwnt equal to one-twelfth 11112) of
one-half (5~i ) po~ centum of the ave~a~e outstanding balance due on the ~ote computed without talcins i~to aocount
delinquencia or prepayme~ts;
!b) A sum equal to the ~ound rcnts, if any. next due. plus the prcmiums that will neat bccome due and payable on policies ot 8ro
and other lazard insurance'coLl~rtn~llfEA~rtgagedpropetty. plus4xas and asse.9snlents next due on the monta~ed propertY UII
as estimated by ti~e mortsssee) less all wms alrwdy paid thaefar dividod by the aumba of months to elapx befoce oae month
prior to tht slat: vrhea sL~ch ~roeend renu. prem~usns. t~xK; a~nA ~~~~++~nts will baome delinquent, such sums to be Arld by
mortgagee in trust to pay said sround ients; premiums. taxes.~nd special assessmencs; and
tc) All paymeats men~a~ed i~ the tw~o preceding wbsections of this para~'aph and'all paymenw tb be made uade~ the eote secured
hereby shall be added to~ether and the aggregate amount thered'shall be paid by the rtart~~ each month in a sin~k payment
to be applied by the mortga8ee to the fdlovving items in the order set forth:
(I) premium charges under the contract of insurance with the Secretary of Housing a~d Urban Devebpment, or monthly
~ char~e lin lieu of mortgage ins~uance premiuml, as the case may be;
(11) ground rcnts. taxcs, assessments, fire, and othu hazard insurance premiums;
(111) interest on the nWe securod hereby; and
(IV) amortization of the principal of said note.
Any deficiency in the amount of such aggregate monthly payment shall, unless maJe good by the mixtgagor prior to the Jue date uf
the next ~uch payment, constitute an event of detault under this mortgage. The mortgagee may cdloct a"late charge" not to exceed two
cents l2c) for each dollYr IS11 of exh payment more than fiQeen (IS) Jays in arrears to cover the extra expense involvad in handling
delinquent payments.
3. That if the total of the paym~nts macle by the mongagor under (61 oE paragraph 2 preceding shall eaceed the amount of the
payments acwally maJe by the mortgagee, for ground rents, taxes a~x1 assessments and inwrance premiums, u the case may be, suct.
ea~cess at the optan of tbe mort~a~ee. shall, be credited on subso4uent Paymeats to be made by the mortsa~or, or refwidod to tbe
mortga~gor. If. however. the monthly payments made by the mortgagor under (b1 of paragraph 2 preceding shall not be sufficient to pay '
gmu~xi renis. ta~ces anci assessments and insurance premiums, as the case may be. N+hen the same shall become due and payable. then the
mortgagor shall pay to the mortgagee any amount necessary to make up the deficiency, o~ or before the date when payment oi such
ground rents, taxns, assessments, or insurance premiuma shall be due. If at any time the mortgagor shall tencler to th~ morigagce in
accordance with the provisions of the note secured hereby, full payme~t of the entire indebtedness represented thereby. the mortgagee
shall, in oomputing the amount otsuch indebtedness, crodit to the account of ihe mortgagor all payments maJe u~xler the provisions of (a)
of paragraph 2 hereut which the mortgagee has not become obligatod to pay to the Secretary oi Housing arn1 Urban Devebpment and any
balance remaining in the funds accumulated under the provisions of (b) of said paragraph 2. If there shall be a default under any of tht
provisions of this mortgage, resulting in a public sale of the premises coverod hereby, or if the mortgagee aoquires the property otherv?~ise
afte~ default, the mixtgagee shall apply, at the time of the commencement of such proceeJinFts or at the time the property is otherwise
acquired, tht balance then remaining in the funds accumulat~f under (b) of paragraph 2 preceding as a credit against the amount of
principal therrremaining unpaid under said note and=shal[ properly adjust any payments whicd shalt 11~ve Deen made under (a) of said
paragraph. ; . . . . t
4_ That he will pay all taxes, atsessments. water rates, and Wher governmental or municipa) charges, 6nas, or impositions, for which
provision has not been made hercinbefore, and in default thereof the mortgagee may pay th~ sam~: and that he will prompUY deliver the
official rereipts therc(or to the mortgagee.
5. That he vrill permi~, commit, or sut'Fer no waste, impairment, ~x deteriorati~~n of said proQert~l or any part the~eof; andr4 thy eYeqt
of the failule of the mortgagor (o keep the builJings on said premises and those to be erected on sdi~ premises, or improv~rrktitS the~eon,
in good repair, the mortgagee may make such repairs ~ in its discretion it may deem necessary for the proper preservation thereof, ar?d
the fup amount of each and evtry wch payment sball be imno~odiately due and pay~bk.,'u~d shall be xcured,bY the lie~ of this rnortgage.
6. That he will pay all a~xi -singular the costs. charges, arn1 expenses, including reasonable lawyer's fees, and costs of abstracts of tide.
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' agreements and covenants of said promissory note and this mortgage. and said costs, charges. a~xf expenses shall be immeJiately due and
payable and shall be secured by the lien of this mortgage_
7. That he will keep the improvements now existing or hereafter erected un the mortgaged propeny, insured as may be required from
time to time by the rrwngagee against ~oss by fire and other hazards, casulaties, and contingernies in such amounts and for such perioels as
may Fie requirni by mortgagee, and will pay promptly, when due, any premiums on such insurance for payment of which provision has not
been made hereinbefore. All insuranoe shall be carciod i~ wmpanies approved by aartpgee aad We pol~cies and renewals thereof shall
be held by mortgagee and have attached lhereto loss payable clauses in favo~of and in form acceptable to the mortgagee_ In event of loss
he will give immtdiate notice by maii to mortgagce, am1 mortgagce may make proof of loss if not made promptly by mortgagor, and each
insurance co~any rnneerned is hereby authoreud and dirocted to mate payment for such loss direcUy to mortgagee insteaJ of to
mongagor azx1 matgagee join4y, a~u1 the insurance proceeds, or gny Qut thereof, may be apptied by mortBagee at its option either w the
rafuction of the indebtedness hereby secureil or to the restoration or repaii of the propMy damaged. In event of foreclosu~e of this
mortgage or other transfer of title to the mortgaged property in extinguishment of the indebtedness securcJ hereby, all right, title, and
interest of the mortgagor in and to any insurancs Pol~cSes then in force shall pass to the purChaser or grantee.
8.'That the mongagee may, at any time pepding a suit upon this mortgage, apply to the court having jurixiiction thercof for the
appointment of a receiver, and such court shall forthwith appoint_a receive~ of the premixs covered hereby all arxf singular, including all
and singular the income, profits. iisues, and rev'enaa from whatever source~derivtd, each and every of which, it being expressly
unelerstocxl, is hereby mortgaged as if specifkally set torih and described in ttQ gramin~ and habendum clauses hereof, and such «ceiver
shall have all the broaJ anJ ePfective functions and powers in anywise entrusted by a court to a receiver, and such appointment shall be
made by such court ati an admitted equity and a matter of absolute right to said mortgagee, and witlwut reference to the aJequacy or
~nadequacy of the value of ihe property mortgagod or to the solvency or insolvency of said mortgagor or the defendents, and that such
rents, profits, income, iasues, anJ revenues shall be applied by such receiver according to the lien of this morlgage and the practice of sucA
court. In the event of any default on the part of the mortgagor hereunder, the mortgagor agrees to pay to the mortgagee on demarnl as a ~
reasonable monthly rental for the premises an amount at least oquivalent to one-twelith II112) of the aggregate of the twelve monlhly
installments payable in the then current year plus the actual amount of the annual ta~ces, assasments, water rates. and insurance premiunss
for such year not covered by the aforesaid monthly payments.
9. That la) in the event of any breach of this mortgage or default on the part of the rtartgagor, or Ih) in the event that any of said
sumsd money herein referreJ to be not promptly and fully paid without demand or notice, or Ic) in the event Ihat each and every the
stipulations, agreements, conditions, and covenants of said note and this mortgage, are not duly, promptly, and fully performed: then in
either o~ any .uch event, the said aggregate sum mentioned in said note then remainig unpaid, with interest accrued to that time, and all }
moneyti ~ureJ hereby, shall become due and payable fonhwith, or thereafter. at the option of said mortgagee, as fully anJ completely as ~
if all of the said sums of money were originally stipulated to be paid on such day, anything in said note or in ihis mortgage to the contrary
notwithstanciing: and thereupon or thereafter. at ihe option of said mortgagee. witi~out notice or demand, suit at law or in equity, may be
prosecuted a~ if all moneys secured hereby had matureJ prior to its institution. The mortgagee may foreclose this mortgage. as to the
amount so declared due and payable, and the saiJ premises shall be sold to satisfy and pay the same together with casts, expcnses, and
albwartces. In case of partial foreclcxure of this mortgage, the m~xtgaged premises shall be sold subject to the continuing lien of this
mortgage for the amount of the debt not then due and unpaiJ. In such case the pmvisions of this paragraph may again be availed of
Ihereafter from time to time by the mortgagee.
10. That the rtwrtgagor will give immediate notice by mail to the mortgagee of any conveyance, transfer. or change of ownership of
the premises.
11. That no waiver of any covenant herein or of the obligation securecl hereby shall at any time thereafter be helJ to be a waiver of
the terms hereof or of the rwte ~ecureJ hereby.
12. That if lhe mortgagor default in any of the covenants or agreements contained herein. or in said note, then the mortgagee may
pertorm the same, a~xi all eapenditures 1 including reasonable attorney's feesl made t+y the m~xtgagee in so doing shall draw interest at the
rate xt farth in the note secured hereby, and shall be repayable immediately and without demand by the mortgagor to the mortga~ee. and,
together with interest and costs xcruing thereon, shall_~~~red b ~s mortgage.
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