HomeMy WebLinkAbout0995 ~ And shalt duly, promptly, and fully perform, d~scharge, execute, ~ffect, complete, and comply w~th and abide by eacka~every
?he supulations. agreements, candit~ons, and covenants of said promissory note and ot this mortgage,'then this mortgage and the
estate hereby created sha11 cease and be null and vo~d.
. And the mortgagor f~rther covenanls as follows:
1. That he will pay the ~ndebtedness. as hereinbefore provided. Priv~lege ~s reserved to pay the debt in whole, or in an amouni
equal to one or more monthly payments on the principal that are next due on the note, on the first day of any monih prior to maturity:
Prov~ded, however, that written notrce of an iniention to exerc~se such privilege is given at least thirty (30) days p~ior to prepayment.
2. That. +n order more fully to protect the security of ihis mortgage. the mortgagor, together with, and in addition to, the monthly
paymen:s under the terms of the note secured hereby, on the first day of each month until the said note is fully paid, will pay to the
mortgagee the following sums:
(a) An amount sufficient to prowde the holder hereof wrth funds to pay the next mortgage insurance premium ff this instrument
and the note secured hereby are insured, or a monthly charge (~n Ileu of a mortgage insurance premium) if they are held by
the Secretary of Housing and Urban Development as follows:
(I~ If and so long as said note of even date and this instrument are insured o: are reinsured under the provisions of the tVational
Housing Act, an amount suffic~ent co accumutate in the hands of the holder one (1) month prior to its due date the annual
mortgage insurance premium, ~n order to provide such holder with funds to pay such premium to the Secretary of Housing
and Urban Development pursuant to the National Housing Act, as amended, and applicable Regu~ations thereunder; or
(II) If and so long as said note of even date and this instrument are held by the Secretary of Hous~ng and Urban
Development, a monthly charge (in I~eu of a mortgage ~nsurance premium) which shall be in an amount equal to
one-twetfth (1 i 12? oi one-half t 1 i 2) per centum of the average outstanding balance due on the note computed without
taking into account delinquencies or prepayments:
~b) A sum equal to the ground rents. ~f any, next due, plus the prerr~~ums that will next become due and payable on polic~es of
, f~re and other hazard ~nsurance covenng the mortgaged property, plus taxes and assessments next due on the mortgaged
property (alt as estimated by the martgageel less a~l sums already pa~d therefor divided by the number of months to elapse
before one rno~ih prior to the date when such ground rents, premiums, taxes, and assessments will become delinquent,
such sums to be held by mortgagee m trust to pay said ground rents, premiums, taxes, and special assessments; and
(c) All payments mentioned ~n the two preceding subsectio~s of this paragraph and all payments to be made under the note
secured hereby shall be added together and the aggregate amount thereof shall be paid 5y the mortgagor each month in a
single payment to be applied by the mortgagee to the foltowing ~tems ~n the order set forth:
(I) premium charges under the contract of insurance with the Secretary of Housing and Urban Development, or monthly
charge (in I~eu of mortgage insurance premium?, as the case may be
(II) ground rents, taxes, assessments, fire, and other hazard insurance premiums:
(III) ~nteres[ on the noie secured hereby; and
~!V) amortization of the principal of said note.
Any deficiency in the amount of such aggregate monthly payment shall, unless made good b~ the mortgagor prior to the due
date of the next such payment, constitute an event of default under this mortgage. The mortgagee may collect a"late charge"' not to
exceed four cents (4C) for each doiiar (S i ~ af each payment more than fifteen (15) days in arrears to cover the extra expense involved
,n handhng delmquent payments.
3. That if the total of the payments made by the mortgagor under (b) of paragraph 2 preceding shall exceed the amount of the
payments actually made by the mortgagee, for ground rents, taxes and assessments and insurance premiums, as the case may be,
such excess if the loan is current, at the option of the mortgagor, shall, be cred~ted on subsequent payments to be made by the
mortgagor, or refunded to the mortgagor. If, however, the monthly payments made by the mortgagor under (b) of paragraph 2
p~eceding shall not be s~tfic~ent to pay ground rents, taxes and assessments and insurance premiums, 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 of such ground rents, taxes, assessments, or insurance premiums shall be due. !f at any time the
mortgagor shall tender to the mortgagee in accordance with the provisions of the note secured hereby, full payment of the ent+re
~ndebtedness represented thereby, the mortgagee shall, in computing the amount of such indebtedness, credit to the account of the
mortgagor all payments made under the provisions of (a) of paragraph 2 hereof which the mortgagee has not become obligated to pay
to the Secretary of Ho~sing and Urban Development and any balance remaining in the funds accumulated under the provisions of jb}
of said paragraph 2. If there shafl be a defautt under any of the prov~sions of ih,s mortgage, resulting in a public sale of the premises
covered hereby, or if the morigagee acquires the property otherwise after default, the mortgagee shall appiy, at the time of the
commencement of such proceedings or at the time ihe property is otherwise acquired, the balance then remaining in the funds
accumulated under (b) of paragraph 2 preceding as a credit against the amount of principal then remaining unpaid under sa+d note
and shal! properly adjust any payments which shail have been made under (a? of said paragraph.
4. That he will pay all taxes, assessments, wate? rates, and other governmental or municipal cha~ges, fines, or impositions, for
which provision has not been made hereinbefore, and in default thereof the mortgagee may pay the same; and that he will promptly
deliver the official receipts therefor to the mortgagee.
5. That he will permit, commit, or suffer no waste, impairment, or deterioration of said property or any pari thereot; and in the
event of the failure of the mortgagor to keep the buildings on said premises and those to be erected on said premises, or
~mprovements thereon, in good repair, the mortgagee may make such repairs as in rts discretion It may deem necessary for the
proper preservation thereof, and the full amount of each and every such Rayment shall be immed~ately due and payable, and shal( be
secured by the lien of this morigagee
~:r'~~7~ F~~F ~7V0
- HUD-921 1 OM (6-791
- ~ _ ; ~ ~ ~s .y~
_