HomeMy WebLinkAbout0965 2. That. +n order mp~e fulty to p~otect ihe seCUnty of this mortflage, the mo?tgagor, together with, and in addition to, the monthty
payments under the terms ot the note secu~ed hereby, tx~ the first day each moMh unld Ihe sa~d note is tutly paid, will pay to the ,
mortgagee the tolbwing sums:
(a) An amount suff~c?ent to provide the holder hereot wilh funds lo pay the next mortgage insurance premium if this instrument
and lhe note secured hereby a~e insured, or a monthy cha~ge (in I~eu ot a mortgage msurance prem~um) if they are held
b the Secretary o( Housing and Urban Oeveb~xnent as tollows:
(I~ If and so bng as said note ot even date and this instnment are insured or are reinsured under the provisions ot the
National Nousing Act, an arr~ount suHicienl to eccumulate in the hands of the hdder 6ne (1) month pr'wr to its due
date the annual mortgage insurance premium, in order to provide such hokler with funds to pay such premium to
the S~cretary of Housing and Urhan DevelopRient pursuant to the Nationat Housing Ac1, as amended, and
applicabte Regulations thereunder; or
(II) It and so br?g as said .rwie ot even date and this inslrument are hetd b the Secretary of Housing and Urban
Oevelopment, a monthly charge (in lieu ot a mortgage insurance premium~ whi~h shall be in an amounl equal to
' one-twelfth (1I12) of one-half (t/2j per centum ot the average outstanding batance due on !he note computed >
without tak+ng into account delinquencies or prepayments: ~
(b) A sum equal to the ground rents, it any, next due, plus the premwms that will next become due and payable on policies of ~
, tire and other hazard insuranc~ covenng the mortgaged property, ptus taxes and assessments next due on !he mori-
gaged property (atl as estimated by the mo?tgagee) Isss all sums already paid therefor divided by the number ol months ~
to elapse betore one month pr'ior to the date when such ground rents, premiums, taxes, and assessments w'~11 become ~
delinquent, such sums to be held by mortgagee in trust to pay said ground rents, premiums, taxes, and special
assessments: and
(c) All payments mentioned in the two preceding subsecGons 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 by the mortgagor each month in
a single payment to be applied by the mortgagee to the tolbwi~g items in the order set torth:
(I) premium charges under the contract of insurance with the Secretary o( Housing and Urban Develapment, or
monthty charge (in tieu of mortgage insurance premium), as the case may tre:
(!I) ground rents, taxes, assessments, fire, and other hazard insurance premiums:
(lil) interest on the note secured hereby; and
(IV) amortization oi the principal of said note.
Any deiiciency in the amo~nt ot such aggregate monthly payment shall, unless made good by the mortgagor prior to the due dste
of lhe next such payment, canstitute an event of detault under th~s mortgage. The morigagee may collect a"fate charge" not to
exceed four cents {4~) for each dotiar ($1) of each paymen! more than fifteen (15) days in arrears to cover the extra expense involved
in handling delinquent payments.
3. That if the total oi the payments made by the mortgagor under (b) ot paragraph 2 preceding shalt exceed the amounl of the
payments actuatly made by the morigagee. ~or ground rents, taxes and assessments and ~nsurance premiums, as the case may be,
such excess if the loan is current, at the option of the mortgagor, shall, be credited on subsequent payments to be made by the
mortgagor, or refunded to the mortgagor. If, however, the monthly payments made by the moRgagor under (b) of paragraph 2 ~
preced~ng shall not be suffic+ent to pay ground rents, taues and assessments and insurance premiums, as the case may be, when the
same shall become due and payabte, then the mortgagor shalt pay to the mo~t~agee any amount r~cessary to make up the
deticiency, on qr betore the date when payment of such ground rents, taxes, assessments, or insurance premiums shall be due. If at
any time the mortgagor shall tender to ih~ mortgagee in accordance with the provisions of the note secured hereby, full payment of the
ent;re indebtedness represented thereby, the mortgagee shall, in computing the amount of such indebtedness, credit to the account of
the mortgagor all payments made under lhe provisions of (a) ot paragraph 2 hereot which the moRgagee has not become obli$ated to
pay to the Secretary of Hous~ng and Urban Development and any balance remaining in the funds accumulated under the provisions oi -
(b) of said paragraph 2. fi there shall be a default under any oi the provis~ons of this mortgage, resutting in a p~btic sate af the
prem~ses covered hereby, or if ti~e mortgagee acquires the property otherwise after detault, the morigagee shall apply, at the time of
the commencement of such proceedings or at the time the properry is othervvise acquired, the balance then remaining in the tunds
accumulated under (b) of paragraph 2 preceding as a credit against the amount of principal then remaining unpaid under said note
and shall properly adjust any payments wh~ch shall have been made under (a) of said paragraph.
4. 7hat hP w~!! pay all ta~ces, assessments, water rates. and other governmental or municipal charges, fines, or impositions, for
which provisicn nas not been made hereinbefore, and in default thereof ihe mortgagee may pay the same; and that he w+ll prompily
deliver the ofiicial receipts therefor to the mortgagee.
5. That he will permit, commit, or sufier no waste, impairment, or deterioration of said property or any part thereof; and in the
event of the failure of the moRgagor to keep the buildings on said premises and those to be erectecy on said premises, or improve-
ments thereon, in good ~epair, the mortgagee may make such repairs as in its discretion it may deem necessary tor the proper
preservation thereof, and the tult amount of each and every, such payment shall be immediatey due and payable, and shall be
secured by the lien of this mortgagee. -
6. That he wilt pay all and singular the costs, charges, and expenses, including reasonable lawyer's fees, and costs of abstracts
of title, incurred or paid at any time by the mortgagee because of the tailure on the part of the mortgagor promptly and fully to perform
the agreements and covenants of said prorr~issory note and this mortgage, and said costs, charges, and expenses shall be immedi-
ately dve and payabfe and shall be secured by !he lien ot this mortgage.
7. That he will keep the improvements now existing or hereafter erected on the mortgaged properry insured as may be required
from time to time by the mortgagee against bss by fire and other hazards, casualit+es, and contingencies in such amounts and for
such periods as may be requued by mortgagee, and will pay promptly, when due, any premiums on such insu~ance for payment of
which provision has not been made herembefore. All insurance shall be carried in compan~es approved by mortgagee and the
policies and renewals thereof sha(I be held by mortgagee and have attached ihereto loss payable clauses in favor of and in form
accepiable to the mortgagee. In event o} loss he will give immediate notice by mail to moRgagee, and mortgagee may make proof of
loss if not made promptly by mortgagor, and each insurance company cor?cerned is hereby authorized and directed to make payment
for such loss directly to mortgagee instead of to mortgagor and mortgagee jointty, and the insurance proceeds, or any part thereof,
may be applied by mortgagee at ds opt~on either to the reduction of the indebtedness hereby secured or to the restoration or repair of
the property damaged. In event of forecbsure of this mortgage or other transfer of title to the mortgageci property in extinguishment of
the ~ndebtedness secured hereby, all right, titte, ar?d interest of the mortgagor in and to any insurance policies then in force shall pass
to the purchaser or grantee. '
8. That if the premises, or any part thereoi, be condemned under any power of eminent domain, or acquired for a public use, the
damages, proceeds, and the consideratian for such acqu+sition, to the ext~nt of the full amount of indebtedness upon this Mortgage,
and !he Note secured hereby remaining unpaid, are hereby assigned by the Mortgagor to the Mortgagee and shall be paid forthwith to
lhe Mortgagee to be applied by it on account of the indebtedn~ss secureci hereby, whelher due or not.
9. That the mortgagee may, at any t+me pending a suit upon this mortgage. appy to the court having jurisdiction thereof for the
appointment ot a receive~, and such court shall forthwith appoint a receiver of the premises crnered hereby all and singular, including
atl and singular the income, protits, issues, and revenues trom whatever source derived, each and every of which, it being expressly
understood. is hereby mortgaged as iI spec+fically set lorth and described in the granting and habendum clauses hereof, and such
receiver shall have all the broad and etfective functions and powers in anywise entrusted by a court to a receiver, and such
appomtment shall be made by such court as an admitted equity and a matter of absolute ~ight to sa+d mortgagee, and wiihoui
reference to the adequacy or inadequacy ot the value of the p;operty mortgaged or to the solvency or insofvency of sa~d mort~agor or
the de(endants, and that such rents, profrts, income, issuss, and revenues shall be applied by such receiver a~cording to the lien of
this moRgage ar~d th~ practice ot such court. In ;tue event of any default on the part of the mortgayor hereunder, the morigagor agrees
to pay the moRgagee on deman,d as a reasonable monthly rental tor the premises an amount at least equ~valent to one-twelth (1/12) of
the aggregate of the twelve monthly installments payable in the then current year ptus the actual amount of the annual taxes,
assessments, water rates, and insurance premiums for such year not covered by the aforesaid monthly payments.
10. That (aj in the event of any breach oi this mortgage or detault on the part of the mortgagor, or (b) in the event that any of said
sums ot money herein referred to be not promptly and tully paid without demand or notice, or (c) m the event that each and every the
stipulations, agreements, conditions, and covenants of said note and this mortgage, are not duty, promptly, and tully performed; then
in either or any such event, the said aggregate sum mentioned in said note then remaining unpaid, with interest accrued to that time,
and all moneys secured hereby, shall become due and payable forthwith, or thereafter, at the opt~on of said mortgaflee, as fully and
completeiy as if all of the said sums ot money were orig~nally st~putated to be paid on such day, anything in sa~d note or in th~s
mortgage to the contrary notwithstanding: and thereupon or thereafter, at the option ot said mortga~ee, without notice or demand, suit ,
at law or in equiry, may be prosecuted as if all moneys secured hereby had matured prior to ds institution. The mortgagee may
forecbse this moRgage, 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 alfowances. In case of partial foreclosure of this mohgage, the mortgaged premises shall be
sold subject to the continuing I~en of this mortgage for the amount oi ihe debt not then due and unpaid. In such case the provisions of
this paragraph may again be avaited of thereaRer from t+me to time by the mortgagee.
HUD-92110M (6-79)
08875> Hev Dec 81 f16fOpC
~ • 8~0527 PA~f0963 . ~
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