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<br /> � - If under paragraph 18 hereof t.he Property is sold or the Property is oEher«�ise acquired by Lender, Lender �
<br /> shall apply, no later tl�an immediately In•ior to thc �ulc of ti�e Pro��erCy or its xcqui�ition by I,ender, any Funds
<br /> lield by Lender atthe time of applicntion as a ci•edit zgainst the suins secured by this 1lortgage.
<br /> 3, Application of Payments. Unless npplicahlc 1:��+� provides otherwisc, ull payments received by Lender
<br /> > under the Note and paragraplts l and '2 l�ereof shalC I>c upplied I�y Lender first in ��nymez�t of smounts payable to
<br /> Lender by Borrower under parhgraph 2 liereot, t}ien to interest ��ayablc on tlic Note and on Future Advances, if
<br /> any, and then to the principal pf , the i�Tote and to tlie principal of ruture Advnnces, if any.
<br /> 4. Charges; Liens. Borrower sl�ali pay all taxes, assessinents and otlier chsrges, fines and impositions attrib-
<br /> utable to the Property whicli may attain a priority over this �Zortgage, an�l grouii�i rents, if any, at Lender's
<br /> e� option in the`manner provided under paragruph 2 hereof or by Borrower �naking payment, when due; direetly to
<br /> ' . � � the payee thereof. Borrower sl�ull promptly furnish to Lender all notices of amounts due undur tliis paragraph,
<br /> LTM'j - and in the event Boriower sl�all rnake E�uyipent directly; I3orro�t�er shc�11 pron�l�tly furnish to Lender receipts evi-
<br /> � dencing such payments; Borrower shall ��romptly discharge any lien �vhich has priority over this A4ortgage ; pro-
<br /> p; • vided;,thatBorrowershall not be required to discliarge any sucl� lien so long as' Borrower shsll agree in writing to
<br /> (� the payment o£ the obligation secured Uy sucli lien in ai inanner acceptable to Lender, or sl�all in good faith contest
<br /> such lien by, or defend enforcement of sucli lien in ; legal pruceedings wLich operate 'to prevent tlie en{orcement of
<br /> t ' the lien or forfeiture of the 1'roperty or uny part tl�ereof: `
<br /> + � _ 5. Hazard Insurance. Borrower shall keep the improvements no�i� existing or 1�ereafter crected on the Prop-
<br /> ; erty insured against loss by fire, hazards included �vithin the term "extended coverage", :md sucl� other hazards as
<br /> $ Lender may require and in sucki amounts 'and for such t�eriods as I,ender may require ; provided, that Lender shall
<br /> not require that the amount of such coverage exoeed that amount of coverage required to pay the sums secured 'by
<br /> this Mort�age.
<br /> { The insurance carrier providing tl�e insursnce shall �e chosen by Borrower sub,-� eet to approval by Lender;
<br /> provided, . thAt such sgpraval sha12 not be unreasonably :vithheld. All premiums on insurance policies sh�11 be gsid
<br /> ; at Lender's option in the manner pTovided m�der paragrapl� 2 liereof or by Borrower inaking payment, when due,
<br /> directly to the insurance bar;ier.
<br /> � In the event any policy is not renewed on or before ten days of its expiration, 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 sliall be in fonn accept�ble to I.,ender und shall include a standard
<br /> zmortgage clause in favor of and in form acceptable to Lender. I.ender sLall l�ave the right to hold the policies and
<br /> •`. j renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br /> � miums. In the event of loss, Borrorver sl� all give promE�t notice to tiie insurance carrier and Lender, and Lender
<br /> may make proof of ]oss if not made promptly by Borro�eer.
<br /> i Unless Lender und Borrower otl�erwise ugree in writing, insur:�nce proceeds shall be applied to restoration or
<br /> repair of tihe Property damaged, provided such restoration or i•epair is economically feasible and the security of
<br /> j this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br /> � of this \lortgage �vould be impaired, the insurnnce proceeds sfiall be applied to tl�c sums secured by this Mortgage,
<br /> t with the excess, if any, paid to Borrower. If the Yroperty is abandoned by Borrower or if Borrower fails to respond
<br /> to Lender within 30 days after notice by Lender Eo Borrower ttiat the insurnnce carrier offers to settle a claim for
<br /> insurance benefits, Lender is uuthorized to collect and apply tl�c insurance proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums secured by tdiis _lioitga�e.
<br /> Unless Lender and Dorrower otherwise agree in writing, any such application of proceeds to principal shall
<br /> � noti extend orpostponethe due date of the inonthly installtnents referred to in paragraphs 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 /> 4 and to any insurance policies and in und to the proceeds thereof (to ihe extent of the sums secured by this Mort-
<br /> �age immediately prior to such sale or acquisitionl resultin� fl•om damage to the Property prior to the sale or
<br /> aequisition shall pass to Lender.
<br /> � 6. PreservaGon �d Mmnteaance oi Property; Leaseholds; Condominiums. Borrower shttl! keep the Prop-
<br /> erty in good repair and shall not permit or co�nmit �vaste, impairment, or deterioration of tl�e Property and shall
<br /> ? ' comply with the provisions of a,ny lease, if this �lortgage is on a leasehold. If this \4ortgage is on a condominium
<br /> unit, Borrower shall perform ail of Borrower's obligations under the declaration of condominium or master deed,
<br /> theby-laws and regulations of the condominium project nnd coi�stituent documents.
<br /> 7. Protection of Lender's Security. If Borrower fails t.o perform the covenants and agreements contained in
<br /> this Mortgage, or if any action or proceeding is comn�enced which materially affects Lender's interest in the Prop- „
<br /> erty, including, but not limited to, eminent domaiu , insoh�ency, code enforcement, or arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender at Lender's option , upon notice to Borrower, may make such
<br /> appear�nces, disburse sucli suins and take such action as is necessary to protect Lender's interest, including, but
<br /> not limited Lo, disbursement of reasonable attorney's fees and entry upon the Property to make repsirs. Any
<br /> amounts disbursed by Lender gursuant to this paragi•aph 7, �vith interest thereon , shall become additional indebt-
<br /> edness of Borrower secured by this DSortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> amounts shallbe payuble upon �iotice from Lender to Borrower requesting payment thereof, and shail bear inter-
<br /> est from the date of disbursement at the rate sta�ted in the Note unless pa�yment of interest at such rate would be
<br /> contrsry to app]icaUle law, in which event such amotmts shal! beai• interest at the highest rate permissible by
<br /> ' applicable lativ. Not6ing contained in tliis paragraph 7 shnll require I.ender to incur any expense or do an}• act
<br /> 1 hereunder.
<br /> S. Inspection. Lender may make or cause to t�e madc reuc�nablc c:ntries upon and inspections of the Prop-
<br /> erty, prorided that Lender shall give Borro«�er notirc l�ria• to am• surh inspection �pecifying reasonable cause '
<br /> therefor related to Lender's interestin the Property.
<br /> 9. Condemnation. The proceed� of nny n«�ard or claim for damaaes , direct or consequential , in conneekion
<br /> i �vith any condemnation or other taking of the Property, or part thereot, or for convevance in lieu of condemnn-
<br /> tion, are hereby assigned and shall be paid to Lender.
<br /> � � � In the event of a total t�king of the Propert,y, the procee�ds st�all l �c �pplied fo the sume secured by this Mort- �� � ' � �
<br /> ' gage; with the' excess, if any, paid to Borrower. In the event of a partial taking of the I'roperty, unless Borrower � ,
<br /> and Lender otherFvise agree in tivriting, tl�ere shall Ue a��plied to tl�e smns secured Uy this !�fortgage such propor- ��. .,, : . ��� '
<br /> tion of the proceeds as is equal to that proportion which tl�e amount of the sums secured by this Vlortgage imme- w . ���
<br /> ° diately prior to tl�e date of taking bears tio the fairnaarket value of tl�e Property i�mnediately prior to the date of �{ ° .
<br /> � , taking, with the balance of Lhe proceeds paid to Borrower. , a �� '
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<br /> li the Property is abandoned by BoTrower or if atter not.ice by I.ender to Borrower that the condemnor offers `�'- �
<br /> to make un award or settle a clain� for damages,-Borrower fails to resl�ond to I,ender within 30 days , of the daLe
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<br /> ,, of such'.notice, Z.ender is authorized to co;2ect and ap�ily t`.�c procecd� at i.ender's opi.ion eitl:er io restorxtiun ur
<br /> , repair of the Propert3- or to the sur�s secured by� tliis _liortsa�e. , � ,,, ' "
<br /> Uiiless Lender and Borrower otk�eravise agree in �vriting, any such application o£ proceeds to principal shall
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