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2. i'hat, in order nwre fully to protect the securiry ~~f this mortgegr, the mortgagur, tuge~hrr with, anJ in adJitiun to, the monthly ~
payments unde~ Ihe terms ~~f the note secured hrrtby, on the firs~ day of each nwnth until the s:~iJ note ix fully paid, will pay 1u the
mortgagee Ihe foliawing wms:
(a) An amount sutficient !o provide the holder hertof w~ith funds to pay tht next mottgage insurance premium if thi~ inslrument a~d
Ihe note xcured hereby are inxured, cx a monthly charge (in lieu of a mortgage insurance premium) if they are held by the
Secretary ot Ho~sing and Urban Development, as follows:
111 If and so long as +aid note of even date and Ihis inclrument are insured or are rcinsured under tht Drovisiuns o( the
Nstional Housing Act, an amount suflicient to accumulate in the hands of the holder one (11 month prior to its due date the
an~ual mortgagt insurance premium, in arJer ~o pruvide such holder with funds to pay such premium to the Secretary o!
Housing and Urban [~velopment pur~uant tu the National Housing Act, as amcndeJ, anJ applicable Regulatioos
thereunder; or
llll If and so tong as said nou of even datz anJ Ihis instrument are held by the Secretary of Housi~g and Urhan Development,
a monthly charge lin lieu of a mortg:+ge ~nsurance prrmium) which shall be in an artx~unt equal to one-twelfth (1112) of
une•half pe~ cenlum of' thr average outstanding balance due on the note computerl wilhout taking intu account
delinquencies or prepaymrnts;
Ib) A sum equal to Ihe grourxl rents, if any, next due, plus the premiums that will next become due and payable on policies of fire
and other hazard insurance covering the nw~tgaged properly, plus ~axes and assessments nex? due on the mortgaged property (all
as esumated by thc mortgaYee) las all sums alrtady paiJ thercfor divided by the number of months to elapse before one month
prior to ~he date v?•hen such grounl rents, prem~ums, taxes, and assessrt~ents will becume delinyuent, such sums to be held by
mor+6agee in trust to pay said ground rents, premiums, taxes, and special assessments; and
(c) All payments mentioned in the tw~o preceding subsections ot this paragraph and all payments to be made under the note secured
hereby shall be adJeJ ~ogether and the aggregate amount thereof shall be paid by the mortgagur each month in a single pavrtxnt
to be applied by the mortgagee to the following items in thr order set forth:
11) premium charges under the contract of imurance with the Secretary of Housing and Urban Development, or monthly
charge (in licu of mortgage insurance premiuml, as the case may be; ~
(111 ground rents, taxes, assessmen~s, fire, and~other hazard insurance premiums; .
(111) interest on the note secured hereby; and '
(IV) amortization af the principa) of said note. '
Any deficierky in the amount uf such aggregate monthly paymrnt ~hall, unle,s maJe go.xl by the mortgag.x prior to the Jue date of
the next such payment, constiwte an event of default under thi~ mortgage. The mor~gagee may collect a"late charge" not to exceed ~wu
cenu 12c1 for each ~Ilar IS11 of rach payment mure than fifleen I ISI Jays in arrean tu cuver the extra expense involved in handling
delinquent payments.
3. That if the total of the payments maJe by the murtgagur unJer 161 of paragraph Z preceding ~hall exceed the arrwunt of the
payments acwally made by the murtgageq for ground ren~s, taxes anJ asses~ments and insurance premiums. :u the case may be, sucF.
excess at the option ot the mortgagee, shall, be crcdited on subsequent payments to be made by the mortgagor. or refunded to the
mortgagur. If, however, the nxmthly payments ma~ie by the mortgagor under ~h) of paragraph 2 praceding shall not be sutficient tu pay .
grounJ rents, txxu arxi as.seUments anJ imurance premiums, as the case may be, when the same shall become due arxl payable, then the
mortgagor shall pay to the mortgagee any amount neceuary to maAe up the Jeficiency, on ~x lxfore the date when payment of such '
ground rents, taxes, assessments, or insurarxe premiums shull be due. If at any time the mixtgagor shaU tenJer to the mortgagee in ~
xcurda~ce with the provisiuns uf the note secureJ hereby, full payment of the entire indebteviness represe.nted thereby, the mortgagee
shall, in computing the amount of such inciebtedn~s, creciit to the account of the mortgagor all payments made uixier the provisions of (a)
of paragraph 2 hereof which the mortgagee has not become obligatctil to pay to the Secretary of Housing and Urban Development and any
balance remaining in the funJs accumulat~l under the provisions of Ihl of said paragraph 2. If there shall be a default under any of Ihe
provisions of this m~xtgage, rc~ulting in a public sale of the premise+ covered hereby, or if the mortgagee acquires the property otherwise
after Jefault, the mortgrgee shall apply, at the time of the commencement of such pr~x;eeJings or at the time the property is otherwise
acquirecl, the balance then remaining in the funds :kcumulated under Ib~ of paragraph 2 preceJing a+ a credit againct the ~mount of
principal ther. rrmaining unpaid under SaiJ nute and shaU properly aJjust any payments which shall have been maJe under tu) of saiJ
paragraph. :
4. That he will pay all taxes, a~~e+,ments, water rates, anJ other governmental or municipal charges, fines, or im~wsitiuns, for which
provision has not been maJe hereint?rfore, and in deL?ult thereof the mortgag~e may pay the same: and that he will promptly deliver the ~
official receipts therefor to the mortgagee. ~
S. jhat he will Fermit, commit, or sufYer no waste, imp:+irmenl, cx deterioration of said property or any part thrreof; and in the event
of the failure of ~he mortgagur to keep the buildings on said premixs and those to t?e erected on saiJ premiceti, or improvements thereun.
in gooJ repair, the mortgagee may make such repain as in its diuretion it may deem necrssary for thc prope~ preservation thereof, and
the full amuunt of eaFh an~i evrry such payment shall be immeJiately due and payable, and shall be secureJ by the lien of this mortgage.
6. "That he will pay all anJ singular the costs, charges, arxi expensrs, including reasonable lawyer s fees, anJ costs of abstracts of title,
incUrreJ or paid at any time by the mortgagee because of the failure on the part of the rmxtgagor promptly and fully to perform the
agreements ancl covenants of tiaiJ promissory note and this mortgage, and said costs, charges, atxl expsrtses shall be immeeliately due and
' payable and shall E+e secured by the lien of this mortgage.
i 7. That he will keep the improvement+ nuw existing or hereafter erected on the mortgaged ptoperty, insural as may be r~qwrecl from
; time to time by the rrwrtgagee against I~ns by fire and other hazards, casula~ies, and contingeneias in such amounts and for such perioJs as
! may be rrquirrd by mortgagee, and N ill pay promptly, when Jue, any premiums un such insur~nce fpr payment of w~hich provision has not
' been made hereinbefore. All insurance shall be carried in companies approved by mortgagee and'the policies and renewals thercof s6all
!E be he1J by mortgagee and have attached therew loss payable clauses in favor of and io form acceptable to the mortgagee. In event of loss
f he will give immcdiate notice by mail to mw~gagee. arxi nwrtgagee may maAe proof of loss if not made promptly by mortgagor, and each
~ insurance company concerned is hereby aWhorized and directed lo make payment for such loss direclly to mortgagee instead of tb
~ mortgagor and mortgagee jointly, and the insurance proceeds, or any part thereof, may be applied by rtwrtgagee at its option either to the
~ reduction of the indebteJnesti hereby secured or tu the resturation or repair of the property damageJ_ In event of foredcnure of this
~ mortgage or other transfer of utle to the mbrtgeged propeny in extinguishment of the inJebtedness srcureJ hereby, all right, tiUe, and
interest of the mortgagor in anei tu any insurance policies then in force shall pacs to the purchaser or grantee.
8. That the murtgagee may. et any time pending a suit upon this mortgage, apply to the court having jurisdiction thereof for the
appointment of a receiver, and wch court +hall forthwith appoint a receiver of thr premises covered hereby all arxl +ingular, incluJing all
and singular the income. prufits, iasues. anJ revenues from whatevrr source derived, each and every of which, it being expressly
understood, is hereby mortgaged as if specifically srt forth and describeci in the granting anJ habenJum clausec hereof, and ~uch receiver
shall have ~II the broad and effective functions anJ powen in anywise entructed by a court to a receiver. and such appuintment shall be
made I1y SUCFI COUfI 8S 3t1 :1llllllllfd BQWIy' 8f1(I :1 matter of abwlute right to said mortgrgee, and without reference to the adequacy or
inadequacy of the value o( thr property mortgageJ or to the solvency or insolvency of said mortgagor or the defenJents. anci that such
rents, profits, income, issues, anJ revenues shall be applird by tiuch rrceiver according to the lien of this mortgage arxi the practice of such
couri. In the event of any default on the part of the rtx~nga~.ir hereunJer, the mortgagur agrees to pay to the mortgagee on demanJ xs a
~ reasonable monthly rental for the ~+remises an amount at lea.t equivalent to one-~wdith 11/12) of the aggregate of the twelve monthly
~nstallments payable in the then current year plus the actual amount of the annual taxes, assessments, water rates. and insurance premiums
for such year not covereJ by the afuresaid monthly payments.
9. That (a) in the event of any breach of Ihis mortgage or Jefault on the part uf the rtwrtgagur, or Ih) in the evenl that any of said
~ sums of money herein referreJ to be not prompdy and fuliy paid without demanJ ~~r notice, or lcl in thr e~ent that each anJ every the
stipulatiun~, agreements, conJition~. and covenants of said note anJ ~his m~xtgage, are not duly, promptly, anJ fully perfi~rmed: then in
~ either or any such evem, the said aggregate sum mentn~neJ in ~aiJ note then remainig unpaid. with interest accrued to that time, anJ all
~ moneys secured hereby, shall become due and payable forthw~ith, ur Ihercafter, a: thr option of said mortgagee, as fully and comple[ely a~
if all of the said sums of rtwney were orig~nall~ stipulated to t~e p~id on wch day, anything in wiJ note or in thi~ nwrlgage to the contrary
notwithstanJing: and thereupon or thereafter, at the option of said mortgagee, withuut notice or demand, tiuit at law or in equity. may be
~ prusecutrJ as if all moneys securc~i hercby had matureJ pri.x tu it~ instiw.ion. -Il~e mortgagee may forecluu thiti rrK~rtgage, as w the
artwunt so Jeclared due •rnJ payable. and Ihe said premiset shall br wIJ to ~atisfy 3nd pay the wme together with c~ts, expenses, and
~ allowances. In case of partial fureck?sure uf this mortgage. the m~xtgaged premises shall be u~IJ ~ubject to the continuing lien of this
~ nx~rtgage for the amount of the Jeht not then due and unpaiJ. In wch ca~e .Fe provisiom of Ihi+ paragraph m~y again be availed of
thereafter from time to time by the mortgagee_
10. "That thr rtx~rtgagor will give immrdiatr notice by mail to the mortgagee of any cunveyarne, ~r.tmfer. or change of uwnership of
the premises.
11. That no waiv~r of any covenant herein or of the obligation +eLUreJ hereby shall at :?ny time thereafter be hetd to be a waiver of
the cerms hereof or of ihe nule secured hereby.
12. That if the nx~rtgagor default in ~ny of the covenant: or agreement~ contained herein. or in said note, then the mwtgagee may
perform the sarnz. arxi all expenJiturec ~ including rcasonable attorney'~ feesl made by the m~xtgagee in so doing shall draw interest at the
rate set forth in the rwte secureJ hereby, and shall be repayable immediately and vvithuut demanJ by the mortgagor to the mortgagee, and,
together with interest and crn~~ eccruing thereon, shall be secured by this mortgage.
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