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<br /> If t:nder paragraph 18 hereof the Property is solci or the E'roperty is other�visc sicquired b,y Lender, Lender
<br /> shali apply, no later tl�an immediately prior to tlie snlc of t6c Prorierty or it; acquisition f �}� l,ender, any- P'unds
<br /> held by Lender at the time of application as a credit .lgainst the sums secured 1>y tliis Dlortgagc.
<br /> 3. . Application of Payments, Unless ap��]icaLlc la�v provides otherFvise , .ill payments received by Lender
<br /> under the Note and paragraplis l and 2 hereof sl� nll I>e applieci by I.ender first in payment of a2x�ounLs payable to
<br /> < Lender }�y Borrower under paragrapli 2 Gereof, tl�en to interest �iayaUlc on thc Note aud on I'uturc, Advances , if
<br /> ' any, aTid theu to the principal of the �Tote und to tlie � irinci�ial of Future _1c�vances � if ariy.
<br /> 3 4. Charqes; Liens. Borro�yersliall pay all taxes, assessments and other charges; fines and impositions attrib-
<br /> ! utable to the Property which may attain u priority over tlais Moi�tgr�ge, . and ground rents , if any, at Lender's
<br /> ' "� optionr in the manner provided under paragraph 2 I�ereof or by ]3oriower inaking payment, when due; directly to �'
<br /> � �a the payee thereof. Borrower 5hall proinptly furnisIY to Lendcr aIl' notices of amounts- due under this paragraph , � '
<br /> C�i a,nd in the event Borrower shall make }�ayment direct]y ; I3orro�ver sliall promptly fus•nisti to Lender receipts evi- ± ',.
<br /> i � "dencing such payments. Borrower shr� ll Promi�tly discharge any lieii whic}r has �iriority over this J'Iortgage ; pro-
<br /> � C7 vided; that Borrower sha11 not be required to diseharge a.ny suclr lien so long as Borro�ver shall agree in writing to
<br /> ;� Q the payment of tlle obligation seCured by such Jien in :ti manner acceptable to Lender, or s6a11 in good faith contest
<br /> � "such lien by, or defend onforcement of such lierr in; legal �>t•ocecdings �vliicli operate to prevent the entorcement oF i� '
<br /> r the lieu or forfeiture of the Pro ert or an
<br /> 1� p y y par£ tliereof. � ; ;
<br /> s .,
<br /> ; t�. 5. Hazard Insurtmce. $ orrower shall keeYi tlie improvements now existing or hereaFter ereeted on the Prop-
<br /> +� , crty insured against loss by fire, l�azards included �vitliin the term "extended coverage ", and sucli other l�azards as ;
<br /> Lender may require and in; such umounEs ancl for such ��eriods as Lender mfly rec� wre ; provided , that Lender shall �
<br /> � not require that the amount of sacl� coverage eaceed that amount of coverage requirecl to pay the sums secured 'by
<br /> this Mortgage. ;
<br /> � The insurance carriei• ��roviding the insur2iice shall be chosen �y Borrower subject to approval by Lender ; �
<br /> 'z provided, that such approval shall not be unreasona}�ly withheld . All premiums on insurance policies sliall be paid }
<br /> � at Lender's option in the manner provided under pa.ragrapl� 2 hereof or by Borrower making payment, when due , y'
<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 t
<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 Bonower to comply may, at option of Lender, constitute a default
<br /> • } under the terms of this Mortgage.
<br /> y All insuranc.e golicies and rene�vals thereof shal l be in forui acceptable to Lender and sl�all include a standard
<br /> mortgage clause in favor of and in form acceptnble to Lender. I.ender shall have the right to hold t.he 7�olicies and
<br /> `� renewals tliereof, and Borrower shall promptly furnish to Lender all renewal notices anct all receipts of paid pre-
<br /> tniums. In the event of loss , Borrower shall give protnpt nutice to the insurance carrier and Lender, and Lender
<br /> � may ,make proof of loss if not made promptly by Borrower.
<br /> � Unless Lender;and Borrower otherwise ngree in writing, insurance proceeds shall be applied to restoration or
<br /> repair of the Property damaged , provided sucli restoration or repair is ecnnurnically feasible und the security of
<br /> ; this Mortgage is nottl�ereby impaired . If sucli restorntion or repair is not econoinicail,y feasible or if the security
<br /> of this Mortgage would be im�aired , the insurance �� roceeds sliall be applied to tt�e sums secured by tliis Moztgage,
<br /> � with the excess, if any, paid to Borrowei•. If the Yro�>crty is abandoned by Borrower br if Borrower fails to sespond
<br /> � to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br /> � insurance Genefits, Lender is authorized to collect and apply the insurunce proceeds ut Lender's option either to
<br /> restoTation or repair of the Property or to the sums secured by this J4ortgage.
<br /> � Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br /> not extend or postpone tlie due dnte of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of such instaliments,
<br /> If under paragraph 18 hereof tl� e Yroperty is acquired b,y Lender, aill right, title and interest of Borrower in
<br /> and to any insuranee policies and in and to the proeeeds thereof ( to the extent of the sums secured by this Mort-
<br /> gage immediately prior to such sale or acquisition ) resultin�; from damage to tlie Property prior to the sale or
<br /> acquisition shall pass to Lender.
<br /> � 6. Preservatioa �d Mmntenance 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 �4ortgage is on u leasehold . If this Mortgage is on a condominium
<br /> i unit, Borrower shall perform all of Borrawer's obligations under the declaration of condominium or master deed ,
<br /> i the by-laws and regvlations of the condominium project and constituent documents .
<br /> ' 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in r
<br /> this Mortgage, or if any action or proceeding is comrnenced �vhich ma.terially ttffects Lender 's interest in the Prop-
<br /> erty; including, but not limited to, eininent doinain , insoh�ency, code enforcement, or arrssngements or proceed-
<br /> s ings involving a bankrupt or decedent, then Lender at l,ender's option , upon notice to Borrower, may make such
<br /> ? appearances, disburse such sums and take sucl� action :is 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 /> ,� amounts disbursed by Lender pursuant to this paragraph 7, with interest tl�ereon , shall become additioaal indebt-
<br /> � ' edness of Borrower secured by this liortgage. Unless Borrower and I.ender agree to other terms of payment , such
<br /> amounts shall be payable upon notice from Lender to Borrower requesting payment tltereof, 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 /> ;y' contrary to applicable law, in which event such amounts shall bear interest at tl�e highest rate permissible by
<br /> � appliaable law . Nothing contained in this paragraph 7 shnll require Lender to incur uny expense or do any act
<br /> ` 6ereunder.
<br /> B. ,Inspection. Lender may make orcause to he mncle rea�onable entries upon and inspections of the Prop -
<br /> ' erty, p;�i�ided that Lender slzn ? I girc Borro��� ec• iioticc priur . o .�uti• :ucli in�pection c�,ecifying reasonabie cause
<br /> � tHerefor related to bender's interest in tlie Property.
<br /> � 9. Coademnation. The proceeds of any a�vard or claim for da�nages, direct or consequential , in connection
<br /> �vith any condemnation or other taking of tlie Property, or part thcreof, or for con�-ey�ance in lieu of condemnn-
<br /> ' t�on, are hereby assigned and shall ue �aid io Lender. .,� `
<br /> � In' the event of a totaP #Aking of 'tl�e Propertv , the ��roceeds sliall t�e upplied to the sums secured Uy this Mort- - � , �'
<br /> gage, with the excess , if any, paid to Borro++�er. In the event ;of a partial taking of Lhe Property, unless Borrower � !� � �
<br /> f and Lender otherwise agree in writing, there sl�all �e applieci- to tiie sums secured by this Mortgage such propor- �`�
<br /> tion of the proceeds as is equal to that proportion wkiich tl�e amount of the sums secured by this �4ortgsge imme- � ���
<br /> diately prior to the' date of tnking beai� ta t�ae fair uzarket value of tl�e Propert3� immediately prior to the date of =��
<br /> � taking, with the balance of the proceeds paid to Boa•rower.
<br /> if t.#Ze Praperty i, abundoned by Borrower or iI. xiber notice by Lender to Borrower thnt the condemnor offers
<br /> � to mxke sn, a,t��srcl or scttic a claim for claniageo, 13ua-ru�scr faila lu resyoud to Lender tiviihin 30 days of the date ' �, ^ -
<br /> ` of such notice, Lender is uvthorized to collecG and ap�>ly the }�roceeds at Lender's option either to restoration or
<br /> repsir of the Property or to the sums;secured by ttais �fortgage.
<br /> Unless Lender and Bori•ower ohher�viFe a�rr.e in �vriting, nny such application of procceds to principal s6a11
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