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<br /> �� If under paragraph 18 hereof the Property is sold or the i'ro{�erty is other�vise acquirecl by� T.ender, Lender �
<br /> shall apply, no later than immed 'aately prior to thc salc of the Yrot�erty or its ur.quisiCion hy Lcuder, nny Funds '
<br /> held by Lender ut the t.ime of ap�>]ic�,tion as a credit againat tlic suin� ,ecurect h�� this Mortgage.
<br /> 3. Application of Payments, Unless aI>plicable ]a�v ��rovides other�vise , all payments received by Lender
<br /> under the Note and paragruphs 1 und 2 hereof sha11 be ap��lied by Lender first in ��ayment of amounts payable to
<br /> C'� Lender by Borrower under paragrapli 2 l�ereof, then to i�rtemst �iayable a� the Note :�nd on Future Advanees, if
<br /> Lt',: any, anci then to the princip�l of t,he IvTote and to t6e principal of Future Advances, if an,y.
<br /> L✓ 4. Charges; Liens. Borrower sl�a]l pay nll taxes, nssessments and other ehnrges, fines 1t;d impositions attrib-
<br /> Lf;? utable to the Property which may attain a priority over this \iortgage, and ground rents, if any, at Lender's
<br /> � �^ option in the maimer provided under paragraph 2 hcreof or by I3orroNer making payment, when due, directly to
<br /> .,.'"y,. the payee thereof: Borrotiver shall promptly furnisli to Lender all noticcs of atuouuts duc under ttiis para�rapir,
<br /> � and in the evsnt F3orrower sha11 make 1�ayment directly, I3orro«•er shall promptly furnish to Lender receipts evi-
<br /> � dencing sucl� .payments. Borrowershall promiztly discl�arge any lien which has priority over this \fortga�e ; pro-
<br /> vided, that Borrower shall not be 7equired to discI�ar�e nny sucl� liexi so ]ong as 13orrower sl�all agree in writing to
<br /> the payment of the oUligation secured by sucl� lien in .i manner acceptable to Lender, or sh �ll in good faith contest `
<br /> such lien by, or defend enforcement of such lien in , lega] proceedivgs �vliich oper:�te to prevent the entorcement of
<br /> � the lien or'forfeitiure of the Property oi• any part tl�ereof.
<br /> 5. Hazard Insurance. Borrower shall keep tl�e iivproveinents now exist,ing or liereafter erected on the Prop-.
<br /> erty insured against loss by fire, hazards included witl�in the term "extended covernge ", and sucl� other hazards as -' '
<br /> Lender may require and in such amounts and for sucli periods as Lender may require ; provided , that Lender shall - '
<br /> � not require that the smount of such coverage exceed khut amount of coverage required to pay the sums secured 'by
<br /> this �Iortgage.
<br /> The insurance carrier providing tl�e insuraiice shall Ue cl�osen by Borrower subject to approval by Lender ;
<br /> provided , that such approvat shait not be unreasonabty wi8hheid. Ail premiums on insurance policies shalt be paid
<br /> at Lender's option in the manner provided under psragra�h 2 hereof or by Borrower ma.king payment, when due,
<br /> directiy 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 chall bc in forui tzcceptable to Lender and shall include a standard
<br /> mortgage clause in favor oF and in form acceptable to I.ender. Lender shall ha,ve the right to hold the policies and
<br /> renewals thereof, and Borrower shall promptly furnisli to Lender all rene�vul notices nnd all receipts of paid pre-
<br /> miums. In the event of loss, Borrower sl�all give prompt notice to tl�e insurance carrier and Lender, and Lender , ''
<br /> may ;nake proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower ot.herwise agree in �vriting, insurance proceeds shali be applied to restoration or
<br /> repair of the Property damaged , provided such restoration oi• reEiair is econornically feasible and the security of
<br /> this Mortgage is not thereby impaired. If such restoration or repair is not economicully feasible or if the security
<br /> of this �Iortgage would be impaired, tl�e insurance ��roceeds shall be spplied to the sums secured by this Mortgage,
<br /> - with the excess, if any, paid to Borrower. If the Yropei•ty is abandoned by Borrowei• or if Borrower fails to respond
<br /> to Lender �vithin 30 days after notice by I.ender to Borrower that the insurance carricr offers to settle a claim for
<br /> insurance benefits, I.ender is authorized to collect and apply the insurance proceeds at Lender's option either to �
<br /> ; restoration or repair of tl�e Property or to the sums secured by t.his \ fortgage.
<br /> � Unless Lender and F3orrower otherwise agree in writing, any such sspplic+�tion of proceeds to principal shall
<br /> 7 not extend or postpone the due date of the mont6ly installments referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of sucli installments.
<br /> ' If under paragraph 18 hereof the Yroperty is acquired by I.ender, all right, title and interest of Borrower in
<br /> and to any inhurance policies and in and to tlie proceeds tl�ereof ( to the extent of the sums secured by tl�is Mort-
<br /> gage immediately prior to such sale or acquisition ) restiltin�; from dawage to the Property prior to the sale or
<br /> � acquisition shall pass to Lender.
<br /> 6. Pzeservation cmd Mmuten�ce of Property; Leaseholds; Condominiums. I3orrower shall keep the Prop-
<br /> erty in good repair and shall not permit or commit waste, impairment, or deterior3tion of the Property and shall
<br /> t comply with the provisions of any lease, if this \iort�age is on a leasehold. If this i�7ortgage is on a condominium
<br /> unit, Borrower shall perform all of Borrower's obligations under tlie declaration of condominium or master deed ,
<br /> the by-laws and regulations of the condominiwn project snd constituent documents.
<br /> 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in
<br /> this �4ortgage, or if any action or proceeding is commenced whici� inaterislly affects Lender's interest in the Prop-
<br /> erty, including, Uut not limited tq eminent domuin , insol�•ency, code enforcement, or arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender itt Lender's option , u��on notice t� I3orrower, may make suc6
<br /> appearances, disburse sucli sums and take suc1� action as is necessary to protect Lender's intcrest, ineluding, but
<br /> not limited to, disbursement of reasonable attorney's fees and entry upon the Properiy to make repairs. Any
<br /> amounts disbursed by Lender pursuant to this paragraph 7 , �vith interest thereon , shall become additional indebt-
<br /> ' edness of Borrower secured by this �Sortgage. Unless Borro�ver and Lender agree to other terms of payment, such
<br /> amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, an�i shall bear inter-
<br /> � ? est from the date of disbursement at the rate stated in the �'ote unless payment of interest at such rate would be
<br /> ^ contrary to applicable law, in which eveut such amounts shall hear interest z�t the highest rate permissibie by
<br /> � applicable law. Nothing contained in this paragrapL 7 sl�ull require Lender to incur any expense ar do any act
<br /> hereunder.
<br /> 8. Inspection. Lender may make or cuuse to he madc= rcasonablc entries upon and inspections of the Prop-
<br /> erty, provided that Lender shall give Borro�� er notice � �rior io an}• �ueh in�peci,ion _pecifying reasonable cause
<br /> therefor related to Lender's interest, in the Propert.y.
<br /> 9. Conder.•.nation. The p:oceetls of sn}• a�ra:d o� cla:tn ;or dar.iage;, d:rect ar con.-,equential, in counection
<br /> with any condemnation or qt,her taking of the Yropert5• , or pzrt tliereof, m• for con�•ey�ance in lieu of c�ndemna-
<br /> tion, are hereby assigned and shall be paid to Lender.
<br /> In the event of � total taking of the Property , thc procecd� nhall bc apptied to the sums secured 6y� this Mort-
<br /> gage, with the excess; if any, ' }�aid to Borrower. In tl�c event of a partial taking of the Property�; unless Borrower � ^se �,,
<br /> and Lender otherwise agree in writing, tltere shall be at3plied to the sums securec3 by t.his D-lortgage sucli propor- " ' a� �y a„"� .
<br /> tion of the proceeds as is equal to that proportion which the amount of the sums secured by this Biortgage imme- $_ ' r,�
<br /> diately prior to tlie date of taking bears to tl�e f� ir market value oi tl�e I'roperty �mmediately prior to the date of .��a
<br /> �� � � � taking, with the balanee of the proceeds }�aid to $orrower. � � �� � � � � � �� � � , �
<br /> If the Property is a�andoned by Borrower or if after notice by Lender to Borro�ver that the condemnor offers �'
<br /> to make an award or settle a claim for damsges; Borroi��er fails_ to respond to Lender within 30 days of the 3at� ' . � 1
<br />� �f aucfi notice, iender ia autlioi•izeLL to <;oliecc x�z+= },,;;; tf�e pruceed:, at l.ender's option either ro restoration or
<br /> .:r::;r �. ;,iic �rop2riy ar to tha sums oecuir�l �y tLi� ZSurt6xge.
<br /> Unless Lendei• and Borrower otlierrvise agree 9n writing, any such application of proceeds to principal shall
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