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Mort~agor agrees to pay interest accrued on all such payments
concurrently with the payment thereof.
(b) Additional payments made in accordance
with the foregoing shall be credited to a Prepayment Reserve Accourlt,
hereinafter sometimes called "Account", which shall be applied by
the party of the second part as hereinafter set forth. The Society.
may mingle all mon~ies so paid and credited to the account with its;
other funds and the mortgagor expressly waives any rule of law or :
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statute now or hereafter in force relative to the treatment of such
- monies as trust funds or requiring the keepinR of such monies in
separate account. While there is a credit in such account, the
~interest as provided in paragraph 1. hereof shall be computed on the
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difference between the entire unpaid principal sum and the amount ~
held in said account. The provisions of this paraRraph shall not ;
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apply to any reductions in principal resulting from the receipt of
~ payments made for impairments to the security, such as partial
release payments or compensa~ion for insurance losses.
(c) If, on any date on which any installment of
principal or interest, except the final, may become due and payable,
there is a credit in said Prepayment Reserve Account, mortgagor may
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~ by written notice to the Society within thirty (30) days thereafter,
~ require that the entire amount or a portion thereof be applied
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~ by the Society on account of or in payment of such installment of
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~ principal or interest (provided~ however, that application to interest
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shall be made only upon cornpliance with the following conditions at
the time of each such application; (i) the owners of the premises
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above referred to shall be unaffected by any insolvency or bankruptcy ~
proceedin~, and shall not have executed any assignment for the bene- '
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fit of creditors, (ii) the amount of each such application to ;
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~ interest shall be secured by the mortgage and shall, to the satis-
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~ faction of the Society's counsel, constitute a valid first lien upon {
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~ said premises as evidenced by such title examination and other
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~ evidence as the Society hereof may require, and (iii) all expenses
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of the foregoing shall be paid by the mort~agor; and, further, the ~
mortgagor may at any time by written notice to the Society require ~
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