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<br /> q � If under paragraph 18 hereof the E'�ropei•ty is sold or the Property is otherwise ncquii•ed b}� Lender, Lender �
<br /> 5ha11 apply , no later tl�an i�nmediately �7rior to the sule of tl�c Yro�>erty or its acqui<ition bv Lender, nny Funds �
<br /> held by Lender at the tirne of ap7�lication as .� crec[it again�t tLe su �ns secui•ed t�y this :vIox•tgssge.
<br /> 3. Application of Payments. Unless apiilicablc 1a��� lirovides otherwise, :till }>ayinents received by Lender
<br /> under tlie Note and paragraplis 1 .�nd 2 heretif sh311 bc caj>plied I>y Lendcr first in puy�iient of amounts �iayable to
<br /> Lender, by Borrower under paragr�pli 2 hereof, t.lieu to interest ��ayable on the \Tote and on F'uturc Acfvances, it
<br /> sny, and then to fhe principnl of ;theiVotc und to they�Tincipal of Futwe :1ci ��ances, if any.
<br /> 4. Charges; Liens. Borro�yer shnll prsy atl tnxes, zssessments and other cliur�es, fines and impositions attriU-
<br /> utable to the Property which may attain u priority over tLis �lortgage; and grouu�9 rents; if any, at Lender's
<br /> ( option in the munner nrovided under paragraph 2 `hereof or by $orrower inaking payment, when due, directly` to
<br /> 1 the payee �hereof. Borrower shall promf�tly furnisli to Lender all notices of amounts due under this paragraph,
<br /> � and in the event Borrower sLa(1 inake nayiuent directly, Borl•ower sl�.ill pro�nptly furnisli to Lender receipts evi-
<br /> dencing sucl� payments. Borrower shall promptly discharge any lien which has priqrity over this \2ortgage ; pro-
<br /> � vided, t1�at �3orrower shall not be required to discharge, any sucl� lien so long us I3orrower shall agree in writing to
<br /> � the payment of the obligation secured Ly such lien iti n manner acceptable to Lender, or shall in good faith contest
<br /> � such lien by, or defend enforcesnent of "such lien in, legal proceedings which operatc to preve�it the enforcement of
<br /> ` � the lien or forfeiture of the Property or aiiy parEtl�ereof: �
<br /> � S: Hazard Insur�ce. Borrower �hall keep tlie i�nprovements no«� existing w� I�ereafter erected on the Prop-
<br /> erty insured against loss by 'fire, hazards included within the term "extended coverage'; and such otlier haiards as
<br /> � ' Lender may require and in such amounts and for such periods as I,ender may reryuire ; provided ; that Lendei shaU
<br /> � not require t6at the amount of sueN coverage exceed thai amount of coverage required to pay the sums secured 'by
<br /> 1`ti. this Mortgage.
<br /> The insurance carrier providing' tlie insurance shall be chosen by Borrower subject to approval by Lender ;
<br /> provided, ttrat sucl� approval shall not be unreAsonably withl�eld. all premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under paragrapl� 2 hereof or by Borro�ver 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 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 shall be in forn� acceptable to Ilender nnd shall include a standard
<br /> inortgage ciause in favor of and in form ncr.eptable to Lender. Lender shull have the rigl�t to hold the policies and
<br /> renewals thereof, and Borrower shall }�romptl}� furnish to Lender all renewal notices and all receipts of paid pre-
<br /> miums. In the event of loss, Borro�ver sl�all give prompt notice to the insurance carrier and Lender, and Lender
<br /> may make proof oi loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insursnce proceeds shall be applied to restoration or
<br /> � repair of the Property damaged, provided such restoration or repair is economically fensible and the security of
<br /> this n4ortgage is not thereby impaired. If such restor�tion or repair is not economically feasible or if the security
<br /> of this il4ortgage would be impaired , the insurance proceeds shall be applied to the sums secured by this A'lortgage, }
<br /> with the excess, if any, paici to Borrower. If the Yroi�erty is abandoned by Borrower or if Borrower fails to respond
<br /> to Lender within 30 da,ys after notice by Lender to Borrower ttiat tlie insurance carrier offers to settle a claizn for
<br /> insurance benefits, Lender is authorized to collect and apply the insur�nce proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums secured by tliis \fortgage.
<br /> f ' Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br /> � not extend or postpone the due date oF the montlily installments referred to in paragraphs 1 and 2 hereof or change
<br /> : the amount of sueh installments.
<br /> If under paragraph 18 hereof the Property is acquired by Lender, all riglit, title and interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds thereof (to tlie extent of the sums secured by this S�Zort-
<br /> gage immediately prior to such sale or acquisit.ionl resulting from damage to the Propert,y prior to the sale or
<br /> acquisition shalt pass to Lender.
<br /> ? 6. Pzeservation �d Mmntenance of Property; Leaseholds; Condominiums. Borro�ver shali keep the Prop-
<br /> ,; erty in good repair and shall not pei•mit or commit wnste , impairment, or deterioration of the Property and sl�all
<br /> eomply with the provisions of uny lease, if this \Iortgage is on s leasehold . If this tilortgage is on 3 condominium
<br /> unit, Borrower shall perform all of Borrower's obligations under the declartition of condominium or master deed ,
<br /> the by-lawa and regulatioiis of the condominium project and constituent documents.
<br /> 7. Pzotection of Lendez's Seeurity. i .` Borrower fails to perform the covennnts ztnd agreements contained in
<br /> this ARortgage, or if any action or prooeeding is cominenced whiclt materially affects Lender's interest in the Prop- �
<br /> erty, including; but not limited to, eu�inent domain, insolveucy, code enforcement., or �rrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender at I,ender's option , upon notice to Borrower, may make such
<br /> appearances, disburse such sums and take sucki action �s 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 inake repairs. Any
<br /> amounts disbursed by Lender pursuant to this paragrzpl� i, �vitl� iuteresL thereoi� , shall become udditional indebt-
<br /> edness of Borrower secured Uy this \fortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> `amounts shail be payable upon notice from Lender to Borrower requestin� payment thereof, and sliall bear inter-
<br /> est from the date of disbuY•sement at the rate stated iu the Note unless p�yment of interest at such rate would be
<br /> x eontrary to applicable la�v, in which event such �mounts sl�all bear interest at the highest rate permissible by
<br /> applicubie law: NotUin� contained in this paragrapli 7 shnll reryuire I.ender to incur any expense or do any act
<br /> hereunder.
<br /> 8. Inspeetion. Lender may inake or cause to be �ncide reasonable entries upon and inspections of the Prop-
<br /> erty, provided that I,ender shall give Borro�vei• notice ��i•ior to .inti• �ucli in�pertion �pecifying reasonahle cause
<br /> therefor related to Lender's interesi in the Yroperty�. '
<br /> � 9. Condemnation. The nroceeds of any award or claim for damages, direct or consequential , in connection
<br /> with any cundemnation or other taking of the Yrot�erty , or part tliereof, or for conveyance in lieu of condemna-
<br /> tion, are here6y assigned and shall be I�aid to Lender.
<br /> In the event of a total taking of the Yroperty, the proceecls shall be upplied to the sums secured by this Mort- -
<br /> gage, tivith ihe excess, if any, paid to Borrot��er. In ilie event of a partia! taking oi the Yroperty, unless Borrower � - �ti
<br /> " and Lender otherwise ugree in ���riting, there sl�all be applieil to tlic sums secured by this �fortgage such propor- ` "^
<br /> tion of the proceeds as is equal to that proportion which tlie amount of the sums secured by this D4ortgage imme- � � �'"
<br /> �'. diately prior Yo the date of taking bears to tl�e fair ivarket vatue o[ tlie Property i�ninediately prior to tdie date of �y , '
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<br /> �, taking, with the balance of the praceeds paid to Borroa�er. -
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<br /> • If the Property is abandoned by Borrower or if nfter notine by Lender to Borrower that the condemnor offers :
<br /> � to make an award'or settle a claini for damages; Borrower Fails to respond to Lender within 30 davs �of the date "' `
<br /> ' j of such notice; Lender is authorized to ` colleat and ap��ly the proceeds' utZender's option either to restoration or '. `
<br /> repair of the Property or to the suxns secured by tl�is _lIortgsge. �A `
<br /> Unless Lender and BorrowEi•, otherwise agree in �ti�riting, any such application of proceeds to principal shall
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