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<br /> y} If under paragraph 1S hereof the Property is sold or the Yroperty is otherwise .ic;quired by I,ender, Lender �
<br /> shull apply, no later thun immediately prior to the salc o( thc Property or its acqui�itiion by Leucler, .iny Funds
<br /> l�eld by Lender at the time of application as a credit ag�inst the sums secured bt- this 1�Iort,gage.
<br /> 3. Applieation of Payments. Unless applicable ]a�e provides ot}ierwise, all payments received by Lender
<br /> under the Note and paragrapl�s 1 :�nd 2 liereof sl�all bc applied 1>y Lender first in payment of ainounts payable to
<br /> .T�n�er by �o±•rewer un�ler paragranh 2 liereof, then to interest pa,yablc. on tl�e I��ote and on Future Advances, if
<br /> any, and then to the principal of the Note and to the principal of Puture Advances, if any. �
<br /> 4. Charges; Liens. Borrower sl�all pay all taxes , assessment,s and other charges, fines and iinpo�itions attrib-
<br /> � utable to the Property which may attain a priarity over tfiis �4origage, and ground rents, if any, at Lender's
<br /> option in the manner procided under ��aragraph 2 hereof or I>y Borro�ver �nakin� puyment, when due, directly to
<br /> � the payee thereof. Borrower shall promptly furnisl� to Lender all notices of amounts due under this paragraph ,
<br /> and in the event Borrower stiall i�iake payinent directly, Borro�vcr shall promptly furnish to Lender receipts evi-
<br /> deneing such payments: Borrower shall prom;�tly discharge any lien whicli IYas priority over this \4ortgage ; pro-
<br /> " vided, that Borrower shall not be required to discl�arge any sucl� lien so long as Borrower shall agree in writing to
<br /> the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith, contest
<br /> such lien by, or defend enforcement of such lien in ; legal proceedings which operat,e to prevent the en£orcement of
<br /> the lien or forfeiture of the PToperty or any part tliereof.
<br /> S IDER `5. Hazazd Tnsurance. -
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<br /> Init . �
<br /> �C�QQQQ The insur�nce carrier ��roviding the insurance shall �e chosen by 8orrower subject to appro��ai by Lender ;
<br /> � : 'In� provided, thatsucl� approval shall not be unreasonably withheld . All premiums w� insurance policies shall be paid
<br /> by I3orrower making payment, when due,
<br /> directly to the insurance carrier.
<br /> In the event any policy is not renewed on or before ten days of its expization, the Lender, to protect
<br /> ,. its interest, may procure insurance on the improvements, pay the premiums and such sum shall become
<br /> immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br /> secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br /> under the terms of this Mortgage.
<br /> All insurance policies and renewals thereof �liall be in form acceptahle to Lencler and shall include a standard
<br /> mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br /> renewals thei•eof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br /> miums. In the event of loss, Borrowei• shall give proinpt notice t.o the insurance currier and Lender, and Lender
<br /> may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br /> repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br /> this Mortgage is not thereby i�npaired . If such restorztion or repair is iiot econoinically feasible or if the security
<br /> of this i�Iortgage would be impaired, the insurance 7�roceeds sliall be applied to tlie sums secured by tl�is Mortgage,
<br /> with the excess, if any, paid to Borrower. If the Yroperty is abrsndoned by Borrower or if Borro�i�er fails to sespond
<br /> to Lender within 30 days after notice by Lender to Borrower tl�at the insurance carrier offers to settle a claim for
<br /> insurance benefits, Lender is authorized to collect und apply the insurance proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums secured by this \Sortgage.
<br /> Unless Lender and Borrower otherwise a�ree in writing, any such application of proceeds to principal shall
<br /> not extend or postpone the due date of the montl�ly installments referred to in paragrapl�s 1 and 2 hereof or change
<br /> the amount of such installments.
<br /> If under paragraph 18 hereof the Yroperty is acquired by Lender, all right, title and interest of Borrower in
<br /> � and to any insurance policies and in and to t.lie proceeds thereof (to the extent of tl�e sums secured by this Mort-
<br /> gage immediately prior to such sale or ncquisition ) resulting frotn dainage to the Property prior to the sale or
<br /> acquiaition Shall pass to Lender.
<br /> 6. Preservation cmd Mmsssstenance of Property; Leaseholds: Condominiums. Borrower shall keep the Prop-
<br /> erty in good repair and shall not permit or commit waste , impairment, or deterioration of the Property and shall
<br /> comply with the provisions of any lease, if this Mortgage is on a leasehold . If this Mortgage is on a condominium
<br /> unit, Borrower shall perform all of Borrower's obligations under the declaration of condominium or master deed ,
<br /> the by-laws and regulations of the condominium project and constituent documenGs.
<br /> 7. Protection of Lendei s Security. If Borrower fnils to perforni the covenants and agreements contained in
<br /> this lyfortgage, or if any action or proceeding is commenced which �naterislly affects Lender's interest in the Prop- `
<br /> erty, including, but not limited to, eminent domain , insolvency , code enforcement, or arrangements or proceed-
<br /> ings involving a Uankrupt or decedent, then Lender at T.ender's option , upon notice to Borrower, may make such
<br /> appearances, disburse such suins and take such action as is necessary to protect Lender's interest, including, but
<br /> not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br /> T-..( amounts disbursed by Lender pursuant to t6is paragraph 7, �vith interest thereon, shall become additional indebt-
<br /> j� ednesa of Borrower secured by this D4ortgage. Unless Borrower snd Lender agree to other terms of payment, such
<br /> � amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br /> � est from the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br /> G,; contrary to applicable ]aw , in which event such amounts shall bear interest at the highest rate permissible by
<br /> ,;,,,: applicable law. Nothing contained in this psragraph 7 sl�nll require Lender to incur ssny expense or do any act
<br /> � hereunder.
<br /> � 8. Iaspection. Lender inay make or cause to be madc reasonable entries upon and inspections of the Prop-
<br /> ert,y, provided that Lender ehall give Borrower n�tice ��rior to aim- such inspeet.ion �pecifying reasonable cause
<br /> therefor relate3 tu Lender'a intere;t in tl�e Property.
<br /> 9. Condemnation. The proceeds of �ny award or claim for damages, direct or consequential, in connection
<br /> with any eondemnation or other taking of the Yroperty, or parY tllereof, or tor conveyance 'in lieu of condemna-
<br /> tion, are hereby assigned and shall be paid to Lender.
<br /> In the event of s total taking of the Property, the proceeds sl�all be applied to tl�e sums secured by this Mort-
<br /> gage, with the`excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower _ �-� ' '� . '+ '
<br /> and Lender otherwise agree in writing, tliere shall be ap�>lied to tl�e suins secured by this lfortgage sueh propor- M- ' �x
<br /> ; tion of the proceeds as is equal to that proportion whieh the aniount of the sums secured by this Mortgage imme- �� ` ;"'e
<br /> t �� diately prior to the date of taking bears to tlae fair market value of tlie Propert,y immediately prior to the date of ` `
<br /> L taking, with the balance of the proceeds paid to Borrower. x���"�
<br /> If the Property is abandoned by Borro�ver or if after notice Uy Lender to Borro�ver that the condemnor offers
<br />�p to mnke an uwarci nr se�iie a claim ior �sisitiges, Borrower faiis io respond tu Lender within 3U days oi the daie
<br /> of sucli �uQ,ice, Z.ender is suGLorizecl Lu, c�lleeL aiiit ��ply LLe ��ro�eeds at Leuder'o opi.ion ei6her 6u re�toratiou ur
<br /> repair of the Property or to the sums secured by this \iortgage. `
<br /> Unless Lender and Borrower other�eise agree in �vriting, any such application of proceeds to principal shall
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