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2. 1 hat, i~ ixJer more fully ta pro~rct thr srrurity uf ~hn mong~gr, ~hr nx~ng:xrur, tugr~hr~ with. aiwl ~n :ulJitiun tu, thr nwnthly
payments unde~ Ihe terms of the nwr .rcure~! hrreby, un the firxt Jay. ~?i e~h nx?nth unul the .aiJ n~~te i~ fully paKl, will pay to the
mor:gagre the fulluwm~ sums:
la) An amount wfRcient to proviJe the holJer hereof with funds ta pay the next mortQage insurance premium ~f ~his insaument and
the note secured hersby are insurcd, or a mo~tAly charge lin lieu of a mortga~e insurance premiuml if they ue held by thc
Secretary of Housing and Url+an Development, as folbws:
(p If and w long as wid note oi eveo date and ~his instrumenl are insurcd or are reinsured unde~ the provisions of the
National Housing Act, a~ amount wfi'ecien~ to aaumulate in the ha~xis o( the holdu one t 1) month prior to its due date the
annual mortgage insurance premium, in ~der ta pmvide sw;h hdJer with fun~ to pay such premium lu the Secretary of
Housina and Urban Dcvelopment pursuant ta the National Hausing Act. as ame~xieJ, anJ applicable Regula~ions
thercunder, or
114 If and so long as ssid no0e qf ~vea date and thic in~trument are held by the Saretary of Housing and Urban Development,
a monthly charge lin lieu of a morteagt insu~aoce premium) Wrhich shall be in an amaunt rqual to one-twelflh l1/12) of
one-hali (yi) per centum of the average uuutanJing balance due un the note wmputed without taking into account
delinqucncies or prepayrt~ents; ~
Ib) A sum equal to the ground rents, if any, next due, plus the premiums that will next become due and paysble on policies of fire
and other hazard insurance coveriAg the mortgaged property, plus taxa and assessments nex~ due on ~he mortgaged property (all _
as atimated by the monQagee) less all sums already paid thcrefor diviJed by the number of munths to elapse bcfore one month
prior to lhe date when such ground rents, p~em~ums, taxes, and assessments will become Jelinquent, such sums to be held by .
mor~dagee in trust to pay said ground rents, premiums, taxes, and special assessmenu; anJ
(c) All payments mentioned in the two proceding subsectiorts ot this puagraph and all payments to be made urnier the note securcd
hereby shall be added tugether and the aggregate amount thereof shall be paid by the rtwrtgagor ~ach month in a~ingle payment
to be applied by the mortgagee to th~ fdlowing items in the order ut forth:
(1) premium charges under the contract of insurance with the Secretary ot Housing and Urban Development, or monthly
charge (in lieu of mortgage insurance premium), as the case may be;
(11) growxl rents, taxrs, assessmen~s, fire, and other hazard insurance premiums;
(I11) interest on the note secured heteby; and
(IV) amorti7ation of the principal of said note_
Any deficiency in the amount of wch aggregate rtwnthly p~yment ,hall, unlcys made g~xxl by the mu~tgagur priur tu the due Jate of
~he next such payment, cu~stilute an event of default urnier lhis murtgage. l~he m~xtgagee may collect a"late charge" not to ~xcred two
cents l2c? for each dollar {SI1 uf earh payment more than fifteen 1151 days in arrean to covrr the extra expense invulved in ha~xiling
delinquent payments.
i, That if the total of the paym~nts maJe by the mortgagor urnier (hl of paragraph 2 preceding shall exceed the amount of the
payments acwally made by the mortgagee, for ground rents, taxes arxf :~~sc~ments and inwrance premiums. ~s the case may be, suct
excess at the option of the mortgagee. shall. be credited on sub~equent payments to be made by the mortgagor, or refunded to the •
mortgagor. If, however, the monthly payments m:~1e by the murtgagor unJer Ib? of paragraph 2 preceJing shall not be sufficient w pay
grounei rents, taaes and assessments and insurance premiums, as the case may be, when the same shall become Jue and payable, then the
mortgagor shall pay to the mortgagee ~ny amount nec:es.+ary to make up the deficiency, on ~x t?efore the datr when payment of ~uch
grourxi rents, taxes, assessments, or insurance premiurtu ahall be due. lf at any time Ihe mixtgagor shall terxler to the mortgagee in
accordance with the provisiom of the note xtiured hereby, full payment of the entire indebtc-~ineu repr~senteJ thereby, the rrartgagee
shall, in computing the amount of such inJebtedness, crrdit w the account of the mortgagor all payments made urxler the provisiuns of (u)
of paragraph 2 hereuf which the murtgegce has not becume obligatcYl to pay to the Secretary of Housing anJ Urban Development anJ any
balance remaining in the funds accumulated undrr the provisions of Ib1 uf .aid paragraph 2. If lhere shall be a Jefault u~xler any of the
provisions of this m~xtgage, resulting in a public sale a~f Ihe premises covereJ hereby, or if tAe mortgagee acyuires the pr~rty otherwise
after Jefault, the mortgagee shall apply, ~t the time of thr commencement uf ,uch prucredings or at the time the property i~ otherM•ise
ecquired, the balance then remaining in the fun~h accumulatetil under /h~ uf paragraph 2 preceJing a. :t credit •rgainst the amount of
principal lhen remaining unpaid under said note and shall properly ~ljust :~ny payments which shall huve been made unJer of said
paragraph.
4. That he will pay all taxc~, aase~~ments, w:~ter ratc~s. anJ other gi~vernmenta) or municipal charges, fine~. ~x impo~itiun~, for which
provision has nW been made hereinbefore, anJ in default thereof the murtgagee msy pay the ~ame; anJ that he will prumptly delivcr Ihe
o(ficial rereipts therefor to the morlgagee.
S. That he will permit, cummit, or sufTer no waste, imp~irmcnt, or Jeterioration of wid property or any part ther~f: and in the event -
of the failure of the mortgagor to Aeep the-buildings on said prem~ses and those to be erected on said premise~, or improvements thereon.
in gooJ repair, the mArigagee may make such repairs as in its discretion it may deem necessary for the proper preservation thercof, and
the full amoant of each and every such paymem shall be immeJiately due and payable, a~x1 shall be socured by the lien of this mortgage.
6_ That he w ill pay all and singular the costs, charge~, arxi experoes, irx:luJing reasonable lawyer s fees, and costs of abstracts of title.
incurrrd or paid at any time by the mortgagee because of the failure on the part of the mortgagor prompUy and fully to perform,~he
agreements and covenants of said promis~ory note and lhis mortgage, anJ said c~ts. charges, and expenses shall be immeJi•rtely due :+nd
I payable and shall t+e secureJ by the lien of this mortgage.
7. That he w ill keep the improvements now~ existing ur hereafter erected un the mortgaged property, insured as may tx rrquirc~i from
time to time by the moAgagee against loss by fire and other hazards, c:?sulaties, anJ contingencies in ~uch amounts :~nJ for such periuds as
may t+e requirrJ by mortgagee, and will pay promptly, when Jue, any premiums on tuch insurance for paymeni of N•hich provision has not
been made hereinbefora All insurance shall be carried in companies approved by mortgagee and the policies and renewals thereof shall
be held by mortgagee and have auacheJ thereto loss payable clausn in favor of anJ in form acceptable to the mortgagee. In evenl of loss
he will gir•e immeJiate notice by mail to mortgagee, and mortgagre may make proof of loss if not made promptly by m~xtgagor, and each
insurance company concerned is herebp authurized and directed to make payment for wch Ioss directly to rrartgagee instead of to
morigagor anJ murtgagee joinUy. :~nJ the insurance proceeds, or any part thereof, may be applied by mortgagee al its option ei~her to the
reduction of thr indebtedness hereby secured or to the restcxation cx repair of the property damaged. In event of foreclcnure of Ihis
rtwrtgage or other transfer of tide w the mixtgaged pr~?erry in ~xtinguishment of the inJebledness u~ured hereby. :~II right, titlr. anJ
interest of the murtgagur in anci to any insurance policies then in force shall pass to the purchaser or grantee.
R. Tha1 the nwrtgagee may. at ~ny time perxiing a suil upon this mortgage, apply.to the court having jurixliction thereof for the
appuintment of a receir•er, and such court shall forthwith appoint a receiver of the premises covered hereby all arxi singular, incl~Jing all
arxl singular the income, profitti. issues, and revenues from whatever source derived, each and every of which, it being expressly
unJer~tcwJ. is hereby mortgageJ as if tipecifi~ally set forth anJ Jescribed in the granting and habendum clauses hereof, ~nd such receiver
shrll have all the bro:+d anJ effective functiom anJ power~ in anyw•ise entrusted by a court to a receiver, anJ such appoinlment +hall be
maJr by wch court as an admitteJ equity anJ a matter of abwlute right ta said mortgagee, and w•ithout reference to the adequacy or
inadequacy of the value of the properly mortgaged or to the solvency or insolvency of said mortgagor or the d~fenJents. arxi that such
rents, profits, incume, issues, and revenues ~h~ll br applied by such receiver accorJing to the lien of this mortgage anJ the practice of such
court. In the event of any default un the part of the rtwrtgaFor hereunder. the rtwrtgagor agrees to pay ~o the mortgagee on demand as a
rea~onable monthly rental for the premises an amount at least equivalent to one-twelfth 11/121 of the aggregate of the twelve monthly
installmentx payable in the then current year plus the actual amount of the annual tanes, acsessments water rates, and insurance premiums -
for such year not covered by the nforesaid monthly payments.
9. That lu) in the event of any breach of this mortgage or Jefault on the part uf the rtwrtgagor. or Ih) in the event that any of saiJ
sum~ of money herein referred to br not prompdy and fully paid without JemanJ or notice, or t~•) in the event that each and every the
stipulations, agreements, condition~. and covenams of said note and this mortgage, are not duly. promptly. anJ fully performeJ: then in
eithcr .~r any auch event, the s:iiJ ~ggregaic sum mentioned in said n~~te then remainig unpaid, with intere,t accrued to that time, anJ all
money+ secured hereby, shall become Jue and payable fcxthwith, or Ihereafter, at the option of caid mix~g:+gee. as fully and completely as
if all of the said sums of money were originally titipulated to br paid on su.h day. anything in said nate or in this murtgage to the contrary
notwithstanding: anJ thereupon or thereafter, at the optiun of ~aid rrwrtgagee, without rwtice or dem~nd. wit at law or in equiry, may be
pnnecuted as if all moneys cecureJ hereby had mawred prinr 1o its institution. "The mortgagee may forecluse this mortgage, as to the
anwunt so declared due and payable. and the said premise~ ~hall t+e wIJ to satisfy and pay the wme together with costs, expenses, and
allowancrs. In case of partial forecl~sure of this morigage, the morigagrJ premises shall t?e wIJ wbject to the continuing lien of Ihis
rtxirtgage for the amount of the debt not then due anJ unpaid. In su~:h casr thr pro~•isions of this paragraph may again be availed of
thereafter from time to time by the mortgagce.
10. -1'hat the mortgagor w ill give immeJiate notice by mail to the rrwrtgagre of any cunveyance. ~ramfcr. or change af ownerthip of
the prcmises.
1 1. "~hat no waiver uf any covenant herein or of the obligaliun secured herebr• shalt at any time thrreafter tx helJ to be a waiver of
the term~ hereuf or of the note secureJ hereby.
12. ~hat if ihe mortgagor default in any of the covenants or agreemenh cuntaineJ herein. or in ~aiJ nute, then the mixigagee may
perform the same, ancl all expenJitures lincluding reasonable attorney'~ fc~~l maJe t+y the murtgsgre in so doing shall Jraw interest at the
rate set fcxth in the note secured hereby, and shall be repayable immedi~tely anJ w ithuut Jemand by the mortgagor lo the mortgagee. and.
tugdher with interest ~nJ custs :?~cruing thereon: xhall be secured by, this m~xtgage.
9UCK ~~J PACE-
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