HomeMy WebLinkAbout02172. That. i~ o•der more fully to protect the security of this motte,age, the mortgagor, tugethrr with, anJ in ~ddition to, the monthly
payments under the tetms of the ~ote ucured hereby, on the Crst day of each month until the said nole is fully paid. will pay to the mort-
gagee the foUowing sums: •
(a) An amount sufficient to provide the holder hereof with tuncis to pay the next mottgage insurance premium if this instrument and
the note secuted hereby are insured. or a monthly charge (in lieu of a mortgage insurance premium) if they are :~eld by the Secre-
tary of tlousing ar-d Urban Development as fotlows:
(1) It and so long as uid note of even date and this instrument are insurcd or are reinsured under the provisions uf theNational
housing Act. an amount sufficient to accumulate in the hands of the holJer one (1) mo~th priur to its due Jatr the annual
mortgage insurance prcmium, in order to provide such holder with funds to pay such premium to the Secretary of liousing
and Urban Developme~t purwant to the National Ilousing Act, as amended, and applicable Regulations thereunder; or
(11) If and so lo~g as uid note of even date and this instrument are held by the Secrelary of tlousing and Utban Development.
a mo~thly charge (in lieu of a mortgage insurance premium) which shall be in an amount eyual to onatwelfth (1/12) uf
one-half (1/2) pet ce~tum oi the avenge outstanding balance due on the note computed without taking into sccount de-
linquencies or prepayme~ts:
(b) A sum equal to the ~ound rents. if any. next due, plus the p:emiums that will next becorrie dut and payable on policies of tre
and other huard insurance covaring the mortgaged property, plus taxes and assessments next'due on the mortgaged property (ail
as estimated by the mortgagee) less all sums already paid therefor divideJ by thr number ~f months to elapse betore one rnonth
prior to the date when such ground rents. pre~niums. taxes, anJ assessments will become delinque~t. such sums to be held by
mortgagee in ttust to pay said grounJ rents, premiums, taxes, and special assrssments; and
(c) AU payments mentioned in the two preceding mbsections of this paragiaph and all payments to be made under the note secuted
hereby shall be added together and the aggregate amount thereof shal! be paid t-y the mortgagor each month in a single payment
to be applied by the mortgagee to the following items in the o~der set forth:
(1) premium charges under the contracl of inwrance with the Secretary of flousing and Urban Development, or monthly
charge (in lieu of mortgage insurance premium), as the case may be:
(11) ground rents, taxes, assessments, fire, and other hazard insurance prrmiums:
(1l1) interest on the note securcd hereby; and
(IV) amortization of the principal of said note.
Any deficiency in the amount of such aggregate mqnthly payment shall. unless made good by the mortgagor prior to the due date of
the next rueh payment, constitute an event of default under this mortgage_ The mortgagee may collect a"late charge" not to exceed four
cents (4~) for each dollar (SI ) of each payment more than fifteen (15) days in arrears to cover the extra expense involved in handling de-
linquent payments_
3. That if the total of the payments maJe by the mortgagor under (b) of paragraph 2 preceding shall excred the amount of the pay-
nients actuaUy made by the mortgagee, fdr ground rents, taxes and assessme~ts and insurance premiums, as the casr may be, such excess if
the loan u cunent, at the opt~on ot the mortgagor, shall, be crrdited on su1-sequent payments to be made by the mortgagot, or refunded to
the mortgagor. If, however, the monthly payments made by thr mortgagor under (b) of paragtaph 2 precrding shall not be sufficient to
pay gtound rents, taxes and assessments and insurancr prrmiums, as the case may be, when the same shall become due and payable, then
the mortgagor shall pay to the mortgagee any amount necessary to make up the deficiency, on or before the date when payment ot such
ground rents, taxes, assessments, or insurance premiums shall br due_ If at any time the mortgagor shalt tender to the mortgagee in accord-
an~e with the provisions of the note secured hereby, full paymcnt o! ihe entire indebtednesi represented thereby, the mortgagee shall, in
~omputing the amount o( such indebtedness, credit to the account of the mortgagor al! payments made under the pro~isions of (a) of para-
g:aph 2 hereof which the mortgagee h~s not become obligated to pay to the Secretary of Ilousing and Urb•rn [kvelopment and any balance
remaining in the funds accumulated under the provisions of 1 b1 of said paragraph ?. If therr shall be a de(ault under any of the pro~isions
of this mortgage, resulting in a public sale of the premises covereJ herrby, or if the mortgagee acyuires the property otherwisr after de-
fault, the mortgagee shall apply, at ihe time of the commencement of such proceedings or at thr time the property is otherwise ac-
yuired, the balance then remaining in the funds accumulated under (b1 of paragraph 2 preceding as a credit against the amount ot pnncipal
then remaining unpaid under said note and shall properly adjust any payments which shall hare Aren made unJer la) of said paragraph.
4. That he will pay aU laxes, assessments, water rates, and other governmental or municipal charKes, fines, or impositions, for which
provision has not been made hereinbefore, an~, in driault thereo( the mortgagre may pay thc same: anJ that he will prompdy deliver the
official receipts therefot to the mortgagee.
5. That he will permit, commit, or suffer nu waste, impairment, or deterioration of said property or any part thereof: and in the
rvent of the failure of the mortgagor to keep the build~ngs on said prrm~ses and those to br rrectrd on said premises, or ~mprovements
thereon, in goud repair, the mortgagee may make such repairs as in rts discretion it may deem necessary for the proper preservation there-
e~f, and the full amount o( each and every such payment shall be immrdiately due an~ payable, and sh•rll be secured by the lien of this
mortgagee_
6. That he will pay all and singular the costs, charges. and cxpensrs. ~ncluding reas~~nable lawyet's fees, and costs of abstracts of
title, incurred or paid at any time by ii~e mortgagee becausr of the failur~ on thc part of the mortgagor promptly and (ully to perform the
agr~ements and covenants of said promissory note and th~ti mortgag~, and saiJ costs, rharges, and rxprnses shall br immediately due and
payahle and shaU be secured by the lien of this mortgage.
7. That he will keep the improvements now existing or herrafter erectrd on the mortgagrd proprrty insured as may be required trom
time to time by the mortgagee against loss by fire and otii~r harards, casualities, and contingencirs in such amounts and for such periods as
may be required by mortgagee. and will pay prompdy, when dur. any premiums on such insurance for paymrnt of v-~hich provision has nut
heen made hereinbefore_ All insurance shall be carried in companies approved by mortgagee and the polkies and rrnrwals thereof shall be
held by mortgagee and have attached thereto loss payable clausrs in favor cif and in form acceptable to the mortgagee. In e~•ent of loss he
will give immediate notice by mail to mortgagee, and mortgagee may make proof ~f loss if not maJe promptiy by mortgagor, and each in-
~urance company concerned is hereby authorized anJ directed to make payment for surh lost dirrctly to mortgagee instead of to mortga-
gur and mortgagee joindy, and the insurance proreeds, ur any part thrreof, may be applied by mortgagre at its option either lo the reduc-
tion of the indebtedness hereby secured or to the restoration or rePair of the property damagrd. In reent of foreclosurr of this mortgage or
other transfer of tiUe to the mortgaged property in extinguishmcnt of the indcbtedness secured hereby, all right, tiUe, anJ interest of the
mortgagor in and to any insurance policies then in force shall pass to the purchasrr or grantre.
8. That if the premises, or any part thereof, be condemned under any power of en~inent domain, or acyuired for a puhlic use, rhe
~iamages, proceeds, and the consideration for such acyuisition, to the rxtent of the full amount of inJebtedness upon this ~lortgagr, and
thr Note secured hereby remaining unpaid, are hereby assignrd hy thr 5lortgagor to the ~lortg~grr and chall br paid fotthwith to the !-tort-
g~gee to t-e applied by it on account of the indebtedness securcd hrreby~, whether due or not.
9. That the mortgagee may, at any time pending a suit upon this mortgage, apply to the court ha~~ing ~unsdiction thereof for thc
appointment of a receiver, and such court shall forthwith appoint a recerver of the prrmises coverrd hereby all and singular, including rll
;~nJ singular the income, ptofits, issues, and revenues fr~~m whatever source derived, each and every of which, it being expressly under-
~tood, is hereby mortgaged as if specifically set forth and described in the graniing and habendum cl~uses hereof, and such receiver shall
have all the broad and effective (unctions and powers in anywise entrusteJ by a ~ourt to a recrirer, anJ such ap~ointmrnt shall be made hy
such court as an admitted equity and a matter of absolute right to said mortgagee, and without reference to thr adequacy or in3dequar~~ of
the value ot the property mortgaged or to the solvency or insolvency of said mortgagor or the defendants, and that such rents, profits, in-
~ome, issues. and revenues shall be applied by such receiver according t~ the lien of this mortgage and the practice of such court. In the
event of any default on the part of the mortgagor hereunder, the rnortgagor agrees to pay to thc m~rtgagee on demand as a reasonable
monthly rental for the premises an amount at least eyuivalent to onc-twelfth 11/121 of the ap,Krrgate of the twelve monthly installments
payable in the then curtent year plus the actua! amount of the annual taxes, assessments; water rates, and insurance prrmiums for such
year not co~eted by the aforesaid monthly payments. .
10. That (a) in the event o[ any breach of this mortgage or Jefault on the part of the mortgagor, or Ib) in the event that any of said
sums of money herein teferred to be not promptly and fully paid without demand Or notice, or (c) in the event that each and every thr sti-
pulations, agteements, conditions, and covenants of said note and this mortgage, are not duly. prvmptly, and fully performed: then in
either or any such event, the said aggregate sum meotioned in said note then remaining unpaid, with interest accrued to that time. and all
moneys secured hereby, shall become due and payable forthvrith, or thereafter, at the option of said mortgagee, as fully and 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 this mortgage to tf~e ron-
trary notwithstanding; and thereupon or thereafter, at the option of said mortgagee, without notice or demand, suit at law or in equity.
may be prosecuted as if all moneys secured hereby had matured prior to its institution. The mortgagee may foreclose this mortgage. as to
the amount so declared due and payable, and the said premises shall be sold to satisfy and pay the same together with costs, expenses, and
allowances. In case of partial foreclosure of this mortgage, the mortgaged premises shall be sold subject to the continuing lien oi this mort-
gage for the amount of the debt not then due and unpaid. In such case the provisions of this paragraph may again be availed of thereaftrr
from time to time by the mortgagee.
' s BQ~345 P~ ~i~ HUD-92110M 16791