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<br />� � If under paragraph 1 £, hereof ihe Property is cold or tl�c� Yroperf,y is o 'th� i �rise acquired by I.ender, Lender � �
<br /> shall npply, no later tl�un iinmediately prior to t6c srtic of the 1'ro��ert�� m� it � :tcqui�ition by I.ender, :ury Funds .
<br /> held by Lender st the t,iii�e of spE�lication 1s a credit igain�t tlie sums �cureci by tlii� �fortgagc.
<br /> 3. Application of Payments. UnlesG ap��licabic ] atic piovide� oi}iei•�vi�i , .ill payment5 receive�9 by Lender
<br /> under the Note ancl �paragrr�,pLs i and 2 hcreof shal ! hc :�p��lieti l��y Leni:lcr fir•st in p� }•n�ent of a�uoiint,s �>uyable tn � �
<br /> Lencier by Borrower w�der paragraph 2 Lereof, thev to interest � riy.able on tlie Notc and on Fuiui•e Advances, if
<br /> � � any, and then to the principal of the i�Tote anc� to the princi��ni of Futurc Ad �- �nce� , ii any. �
<br /> 4. �harges; Liens. , Borro«�er �l�all pay a.11 taxes , �ssessments and other cluirgcn , fines ancl impositions attrib-
<br /> utpble to the Pro�erty which ma:y attain :t priorit,y over tliis 1lorte�,ge, and ground reuts , if any , at Lender's
<br /> r � � option in tl3e �inanner l��rovided under paragra��h 2 hereof or by I3orro�ver making payment, wtien due, directly to
<br /> 1 ' � the payee thereof: Borrower shall i�romptly furnish to Lender all not.ices of amounts due under this paragraph ,
<br /> � and in the event Borrower shall �uake payment directl}• , I3orro���er shall proinptly furnisli to I,ender receipts evi-
<br /> � dencing such payments: Borrower shall promptly discharge avy lieu �vl�ieh l�ns priority over tl�is �fortgage ; pro-
<br /> � vided , th�t Borrower shall not be reguired to discl�xrge .zn}� sucl� lieu so long as ]3orrowei• si�all agree in writing to
<br /> p the .paymenti of the obligation secureci by sucli lien iii a ma�xner xLecept,�ble to I,e�ider, or shall in good faith contesti
<br /> � such ]ien b,y, or defer� enfercement of sue?i lie�� in , legai ��roceedings tivliich o,�er:tte to prever�k. the en£orcement of
<br /> the lien or forfeiture of the Property or any part thereof.
<br /> � , 5: Fiazard Insurmiee. Borrower shali keeptlic imE�ro��ements now exieting or hereafter erected ou the Prop-
<br /> ^ erty insured against loss by fire, hazards included within the term "extended coverage'', :�nd such other hazards as
<br /> � liender may require �and in such amounts and for such periods ns I.ender ma�• reqiiire ; pro��ided, that. T�ender shall �
<br /> not require that the amount qf such co��erage exceed tl�nt atnount ol" coverage required to pay the sums secured 'by
<br /> this Mortgage.
<br /> The insurance carrier providing iLe insura�ice sLall be chosen by Borrower subject to approvyi by Leiider ;
<br /> provided, that such sspproval sl�all not be unreasonably withheld . All premiums on insurance �iolicies shall be paid
<br /> at Lender's option i�i the manner provided under t?aragrZpl � 2 liereof oi• by I3orro«�ei• rnalcing paVinent, 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 improvement5, 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 tl�e terms of this Mortgage.
<br /> � AlI insurance policies and renewals tl�ereof shall be in fm��n acee{�table i:o I.en�:ler and sl��all include s standard � �
<br /> rnortgage clause in fuvor of and in form .�cceptable to 7.endcr. Lender shall havc ihe righi to hold the policies and
<br /> renewals thereof, and Borrower shall promptly furnisii to Lender a,lt renewal notices Sncl sll receipts of paid pre-
<br /> miums. In the event of loss , ]3orroz�rer sliall �ive prom�.� 't notice i,o ti�e insurnnce carrier and Lender, and Lender
<br /> " may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borro���er otl�er�vise agrec in writing, insurauce E� roceeds shall be upplied t.o restoration or
<br /> repair of t.he Property damaged , provided sucli restoration or repair i� economicully feasible iin<i tl�e security of
<br /> this 11�Iortgage is not thereby impaired . If such restoration or repair is not ecananically fe.isiblc or if the security
<br /> ; of tl�is llortgage would be impaired , ilie insurance ?�roceeds shall lic aE�plied to tl�e sums secured by tliis b4ort6age,
<br /> with the excess, if 3ny, paid to Borrower. If the Yroperty is abandoned by I3orrower m• if Borrower fails io respond
<br /> to Lender rvithin 30 days afier notice by� I.ender to Borroticer tl �at the in�urancc carrier offers to settle a claim for
<br /> insurance benefits, Lender is authorized to collect snd appl5• the insurance proceeds ut Lender's option either to
<br /> restoration or repair of the Properf,y or to the su�ns secured by tl�is \lortgage.
<br /> Uniess Lender and Borrower otherwise agree in writing, any such applic�tion of proceeds to principal shall
<br /> not extend or postpone the due date of the monthly insta] ]ments referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of such installments.
<br /> If under paragraph 18 hereof the Property is acquired by I,ender, all right, title and int.erest of Borrower in
<br /> f and to any insurance policies and in and to the proceecls tLereof ( to the extent of the sums secumd by this 1�Sort-
<br /> gage iminediately prior to such sale or acquisitionj resulting f'rom damage to tl�e Yropei�ty prior to the sale m�
<br /> acquieition shall pass to Lender.
<br /> 6. Presezvation �d Mmntenance of Property: Leaseholds; Condominiums. 13orrower shall keep the Prop-
<br /> erty in good repair and shall not permit or conunit waste, impairment, ur deterioratiai of the Property and shall
<br /> comply with fl�e provisions of any lease, if this \tortgage is on a lcaseliold . If this �lortgs�e is on a condominium
<br /> unit, Borrower shall perform all of Borrower's obligation� under tt�e decluration of condominium or master deed ,
<br /> the by-laws and regulations of t�lie condominiuw pro� ect :incl constit,uent docuir�ents. � �
<br /> 7, Protection of Lendez's Secuzity. If I3orrower fails to perforni the covenants and ugreements contained in
<br /> � this �'Iortgage, or if any action or proceeding is aoinmenced whic(� materially affects Lender's interest in the Prop-
<br /> erty, including, but not limited to, etninent dmiiain , insoh�eucy , cod� enforccinent , or arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender �t Lender's option , upon notice to Borrower, may make such
<br /> appearances, disburse such swns and tuke such action :is is necessary to prot.ect Lender's interest, including, but
<br /> not limited to, disbursement of reasonable attorney 's fees and entry upon t,he Yroperty to make repairs. Any
<br /> umounts disUursed b,y Lender pursuant to this paragrapli 7 , �aith interest thereon , shall become additional indebt-
<br /> edness of Borrower secured by this \iortgage. Unless Borro�i•er and Lendcr sgrec to other terms of payment, such
<br /> amounts shallbe payable upon notice frmn Lender to Borrower requesting payment thereof, and shall Uear 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 /> contrary to applicable law, in whicli event sucli amounts shall bear ii�terest at the hi�hest rate permissible by
<br /> applicable law. Nothing contained in this paragraph 7 sh.lti requirc l.ender to incur uny expense or do any act
<br /> hereunder.
<br /> 8. Inspeetion. Lender may inake oi• c�use to he madc reasonable entries upon and inspeckions oF the Prop-
<br /> erty, provided that Lender sl�all give 13orrow•er noticc � �rior to an�• sueli inspect.ion specif3�ing rensonable c�u�e
<br /> therefor related to Lender's interest in the Property.
<br /> 9. Condemnation. The proceeds of any uward or elaim ior dssrnages , direct or consequential , izi cannection
<br /> with any condemnation or other taking oS the YT•opert}� , w• �iart thereoi , or ior coii��eyance in lieu oi condeinna-
<br /> tion, are hereby assigned and shall be paid io Lender.
<br /> In the event of a total taking of the Yroperty , the �iroceed� .hsi] lie applied to the sums secured by this VIort- °
<br /> gage, tivith t.he excess, if any , paid to Borro�ver. Tn ihe event oi .x partial t:iking of the Yroperty, nnlees Borrower ,.,�� .. :. � �
<br /> + and Lender otl�erwise agree in writing, tliere sliall be applied to il�e suins secured Uy thie �Iortgage such propor- TM t� ,�„
<br /> t.ion of the proceedc a� is equal to that propot•2ion �vhirh thc amount of the sums Seci�red b}* this D4ortgage imme- �� � '
<br /> diately prior to the date of taking beai•s to the fair inarket value of tlie Yroperty iinmediately prior to the 3ate of � ; �' ,°
<br /> L taking, with the }�alance of the proceeds paid to Borro«�er. °°"" ' � ��
<br /> If the Property is absndoned 6,y Borrorver or if �ifLer notice by LeT'�der to Borrower that t.he condemnor offers ' �'"
<br /> to make an award or settle u claini for da�nages, Borron�er faits t,o respond to Lender witl�in 30 days of the date
<br /> of such notice,'Lender is authorized to collect and ap�?ly the proceed, at. I,enc9er's option eitl�er to rest.oration or
<br /> repair of the Property oz to thesums secured by tl�is \iortgage. ,.,.
<br /> Unless Lender and Borrower other�vise agree in �vriting, any such application of proceeds to principal sliall
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