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<br /> � If under paragraph 18 hereof the Property is sold or tlie Yroperty is otherwise acquired b,y Lender, Lender
<br /> shall apply, no later than immediately prior to the sslc o!' the Property or it.s acqui�ition by I.ender, any Funds
<br /> l�eldby Lender at the time of application as a cmdit against the sums .ecumd hy thi5 il4ortgaga
<br /> 3. Application of Payments. Unless applicablc I:u�• provides otherwisc, all payments received by Lender
<br /> under the Note and paragr� pLs 1 and 2 I�ereof shxill be applied by Lender first in payment of amounts payable to
<br /> Lencier by Borrower under paragr�t�l� 2 hereof, tl�en to interest puyablc on tl�e A'ote und on Future Advanees, if
<br /> any, und then to the principal of tLe �Vote and to the �irincipal of P'uture Advances , if :�ny.
<br /> 4r Charges; Liens. Borrowcr st�all pay nll taxes, assessments .3nd other charges, fines and impositions attrib-
<br /> r utable to the Property which niny attain a priority over this 14ortgage; and ground rents , iP any, at Lender's
<br /> option in the mannerprovided' under paTagrapf� 2 hereof o�• by Bori•otti�er �naking p.ayment; `vhen due, directly to
<br /> the payee thereof. Borrowei� shall promptly- furnisl� to T:ender all notices of ainounts due under this paragraph ,
<br /> and in the event Borro�ver shall anake payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br /> ' Z� dencing sucli puyments. Boirower sliall promptly discliurge any lien which has priority ovcr this \lortgage ; pro-
<br /> C� vided, that 13oTrower shall not be, required to disclSarge any such ]ieu so long as I3orrower shall agree in writing to
<br /> CY::+ the payment of the obliga6ion secured ' l�y such lien in a manner accePt�ble to Lender, or sl�all in good faith contest
<br /> Lt; such lien by, or defend enforcement of siich lien in, Jegal proceedings «�Iiich operate to prevent the entorcement of
<br /> � the lien or forfeiture of the Property or any part tl�ereof.
<br /> �^�,, 5. Hazard Insuraaee. Borrower shall keep tl�e irnproven�ents no�c existing or hereafter erected on the Prop-
<br /> erty insured against lossby fire, hazards ineluded �vitl�in the term "extended coverage", snd such other hazards as
<br /> � Lender mayrequire and in such amounts and for such periods as Lender may require ; provided, that Lender shall
<br /> `- � not require that the amount of such coverage ezceed tliat amount. of coverage required to pay the sums secured 'by
<br /> i this Mortgage.
<br /> „ , The insurance carrier providing tlie insurauce shall be chosen by Borrower subj ect to approvaf by Lender ;
<br /> provided, that such approval shall not be unreasonably withheld . All premiums on insarance policies shall be paid
<br /> `' at Lender's option in the inanner provided under I�aragrapl� 2 hereof or by Borro�ver making payment, when due,
<br /> i directly to tlie 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 tl�ereof shall be in fonu scceptable to Lender and sliull include a standard
<br /> mort,gage clause in favor of and in fonn acceptable to I�ender. Lender shall have the right ko l�old t.he policies and
<br /> 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, Borrower shall give procnpt notice co tl�e iusurance carrier and Lender, and Lender
<br /> may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender ssnd Borrower otherwise agree in �criting, insurnnce proceeds shall be applied to restoratian or
<br /> repnir of the Property damaged , provided such restoration or repair is econoinically� ieasible and the security of
<br /> this Mortgage is not thereby impaired . If such restoration or repaii• is not economical ly feasible or if the security
<br /> of this 114ortgage would Ue in�paired, the insurance �aroceeds shall bc applied to the smns secured by this Mortgage,
<br /> with the excess; if any, paid to Borrower. If tl�c Yroperty is abandoned by Borrower or if Borrower fails to respond
<br /> to Lender �vithin 30 days after notice by Lender to Borrower il�at the insurance carrier offers to settle a claim for
<br /> insurance benefits, Lender is authorized to collect and apply tl�e insur� uce proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums secured by� tliis JSortgage.
<br /> Unless Lender and Borro�i•er other�r-ise agree in �vriting, any such application of proceeds to principal shall
<br /> not extend or postpane the due date of the montlily instnllments referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of such installments.
<br /> ? If under parsgruph 18 hereof t6e Yropert}� is acquired by Lender, i�ll riglit, title and interest of T3orrower in
<br /> � and to any insurance policies and in and to the proceeds thereof (to tl�e extent of the sums secured b� tl�is 1�4ort-
<br /> s gage immediately prior to such sale or acquisition ) resulting from damage to tlie Property prior to the sale or
<br /> acquieition shall pass to Lender.
<br /> 6. Presezvation cmd Mmntenanca of Property; Leaseholds; Condominiums. Borrower shull 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 �vith the provisions of any lease, if this \fortgage is on a leaseliold . If this \Zortgage is on a condomininm
<br /> unit, Borrower shall perform all of Borrower's obligations under the declai•ation of condominium or master deed ,
<br /> the by-laws and regulations of the condominiutn project and constituent documents.
<br /> 7. Protection of Lender's Security. If Borrower inils to perform the covenants snd agreements contained in
<br /> this �4ortgage, or if any action or proceedin� is commenced whicli materially affects I.ender's interest in the Prop- '
<br /> erty, inclnding, but not limited to, eminent domfiin , insoh•ency , code entorcement, or arr� ngements or proceed-
<br /> ings invoiving a bankrupt or decedent, then Lender .zt Le�ider's option, upon notice to 13orrower, tnay make such
<br /> appearances, disburse sucl� sums and take such action as is necessary to protect Lender's interest, including, but
<br /> notlimited to, disbursement of reasonable at6orney 's fees and entry upon the Property to make repairs. Any
<br /> amounts disbursed by Lender pursuant to this paragrapl� 7 , �vitl� interest thereon, shall become additional indebt-
<br /> edness of Borrower secured by this \lortgage. Unless Borrower and Lender agree to other tenns of payment, such
<br /> amounts shall be payable upon notice frouz Lender to Borrower request,ing payment tHereof, and st�all bear inter-
<br /> est from the date of disbursement at the rate stated in the \Tote unless payment of interest st such rate would be
<br /> contrary to applicable law, in �vhich event such amounts siiall Uear int.erest at the highest rate permissibie by
<br /> applicable law. Nothing contained in tliis paragrapl� 7 shall requirc l:.ender to incur any expense or do any act
<br /> hereunder. '
<br /> 8. Inspectioa. Lender inay make oi• cause to be madc reaeonablc entries upon and inspections of the Prop-
<br /> erty, provided that Lender �hall give Borrower rrotice ��rior to m�}• such incp�ction �pecifuing reasonable cause
<br /> � therefor related to Lender's interest in the Praperty .
<br /> 9. Condemnation. The proceeds of any 3ward or claim for damages, direct or consequential , in connection
<br /> �vith,any, condemnation or. othei' taking of the Property, oi• part thereof, or for con��eyance in lieu of c.ondemna-
<br /> tion, are hereby assigned and shall be paid to Lender. �� . . ., "
<br /> In the event of s total taking of the I'roperty, the �iroceed; sl�all l�e applied to the sums secured by this Mort- � , k ;? k
<br /> ga�e, �vith tl�e excess, if any, paid to Borro«•er. In thc erent of a partial tskin�; of the Fropertp, unless Borrower "�r � ' �w��"
<br /> sndLender otherxvise agree in writing, tliere sliall be a��plied to the suins secured by this �lortgage such propor- �" �� •
<br /> � tion of the proceeds as is equal to tl�at proporLion wliicl� the aniount of tl�e sums secured by this 17ortgage imme- �a��,����
<br /> diately prior to`the date of taking hears to t3ie fxir market value of tl�e Property i�n�nediaf,ely prior to the date of ;n'"�+' ;
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<br /> taking, with the balance of, the proceeds paid to Borrow-er,
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<br /> i Tf the Pranertv is'abandoned by Borrocver or if sfter noticP hv I,ender to Borro�vPr t.ht�t tlxP conder.tnor offnre ^ " " '
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<br />� Lo muke an nward or settle u claim for tlamageH, Borrower fz�ils t,o respciud to Lender �vithin 30 duyn of t.he date
<br /> of such notice, Lender is avthorized to collect and ap��]y the }�roceedn ai I.ender's opiion eitiSer to restoration or �
<br /> repair of the Property or to the suins secured by t.liis \Iortgage.
<br /> Unless Lender and Bprrocver othersvise agree in writing, any such spplication of proceeds to principal shall
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