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<br /> If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by I.ender, Lender
<br /> shall apply, no later than immediately prior to the salc of the Property or its nequisition by I,ender, nny Funds
<br /> held by Lender at the time of application as a credit agsinct the sums secured by this A�Iortgage.
<br /> 3. Application of Paymonts. Unless applicablc la��� provides othenvise, all payments received Uy Lender
<br /> under the Note and paragrapl�s ,l and 2 6ereot si�all lic applied by I.endur first in payment of umounts payable to
<br /> � Lender by Borrower under paragrapli 2 hereof, then to interest payable on the Note and on Future Advances, if
<br /> ' any, and then to the principal of the Note ssnd to the principal of I'uture Advances, if any.
<br /> � 4. Charges; Liens. Borrower shall pay all taxes, assessments i;nd other chArges, fines and impositions attrib- f
<br /> utable to the Property which may attain a priority over this �Iortgage, and �round rents, if any, at Lender's
<br /> ;� optioa in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directly to
<br /> j � the payee thereof. Borrower shal! promptly furnish to Lender ull notices of nmounts due under this paragraph,
<br /> ? and in the event Borrower shall make payment directly, Borro�ver shall promptly furnish to Lender receipts evi-
<br /> '' � dencing such payments. Borrower shall promptly discharge any lien which has priority, over this hlortguge ; pro-
<br /> i Q vided, that Borrower shalI not be required to discl�arge sny sucl� lien so ]ong as Borrower shnll a�ree in writing to
<br /> � � the payment of the obligation secured by sucli lien in ii �nanner acceptable to Lender, or shall in good faith contest
<br /> a, � such lien by, or defend enforcement of such lien in, legnl proceedings w6ich operate to prevent the en#orcement of ?
<br /> � `^ the lien or forfeiture of the Property or any purt thereof. i
<br /> I b. H�ard Insur�ce. Borrower shall keep the improvements no«• existing or hereatter erected on the Prop-
<br /> ap erty insured against loss by fire, hazards included within the term "extended coverage", und such other hazards ns
<br /> � n Lender may require and in such amounts and for sucl� periods as Lender may require ; provided, that Lender shall '
<br /> not require that the amount of such coverage exceed that amount of coverage required to pny the sums secured 'by
<br /> this Mortgage.
<br /> The insurance carrier providing tl�e insurance shall be chosen by Borrozvcr subject to approval by Lender ;
<br /> provided, that such approvsl shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under paragraph 2 hereof or by Borrower 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 /> ' i All insurance policies and renewals tl�ereof shall be in for�n �tcecptable to I.ender and shall indude a standard
<br /> ; mortgage clause in favor of and in form acceptnble to Lender. Lender shali havc thc right to Iiold the policies and
<br /> renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and nll receipts of psid pre-
<br /> miums_ In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br /> ' � may meke proof of loss if not made promptly by Borrower.
<br /> ; Unless Lender ssnd Borrower othenvise agree in writing, insurauce proceeds shall be applied to restoration or `
<br /> repair of the Property damaged, provided such restoration or repair is economicully feasible and the security of
<br /> this Mortgage is not thereby impaired. It such restoration w• repair is nat economically fensible or if the security
<br /> � of this 14ortgage would be impaired, tl�e insurance ��roceeds shall bc applied t.o the sums secured by this Mortgage, ;
<br /> with the excess, iF any, paid to Borrower. If the Yiroperty is abandoned by Borrower or if Borrower fails to reapond
<br /> to Lender within 30 days a[ter notice by Lender to Borrower that the insurance carrier offers to settle a claim tor
<br /> j inaurance benefits, Lender is suthorized to collect and t►pply the insurance proceeds at Lender's option either to
<br /> : � restoration or repair of the Property or to the sums secured by this \Iortgage.
<br /> Unless Lender and Borrower othenvise agree in writing, any such applicntion of proceeds to principal shall
<br /> not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br /> F tfie amount of such installments.
<br /> If under paragraph 18 hereof the Property is acquired by Lender, all right, title nnd interest of Borrower in
<br /> � and to any insursnce policies and in and to the proceeds tl�ereof ( to tl�e extent of the sums secured by this Mort-
<br /> : � gage immediately prior to such sale or acquisition ) resulting from damuge to the Property prior to the sale or
<br /> � acquisition shall pass to Lender.
<br /> � 6. Preservatioa �d Mmaten�ce of Pzoperty: Leaseholds; Condominiums. Borrower shnll keep the Prop-
<br /> � erty in good repair and shsll not permit or commit waste, impairment, or detcrioration of the Property and shall
<br /> comply with t.he provisions of any lease, if this �Iortgsge is on a leasehold. If this Mortgage is on s condominium
<br /> unit, Botrower shall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br /> the by-laws and regulations of the condominium project and constituent documents. ,
<br /> ' 7. ProtecGon of Lendei s Seeurity. If Borrower fails to perfoim the covenants and ctgreements contained in
<br /> r this Mortgage, or if any action or proceeding is commenced �vhich materinlly atfects Lender's interest in the Prop-
<br /> erty, including, but not limited to, eminent domain, insoh•encp, code enforcement, ur arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrosver, may make such
<br /> ? appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br /> ± not lunited to, disbursement of reasonable attorney's fees and entry upon the Yroperty to make repairs. Any
<br /> smounta disbursed by Lender pursuant to this varugraph 7, with interest thereon, shall become ndditional indebt-
<br /> edness of Borrower secured by this �iortgage. Unless Borrower and Lender agree to other terms of payment, auch
<br /> � amounts shall be payable upon notice from Lender to Borrow•er requesting p»yment thereof, and shall bear inter-
<br /> eet from the date of disbursement at the rate stated in the Note unless payment of interest ut such rate would be
<br /> contrary to spplicable Iaw, in which event such amounts shali bear interest at the highest rate permissible by
<br /> applicable law. Nothing contained in tliis paragrapli 7 shnll requirc 7.ender to incur any expense or do any uct
<br /> hereunder.
<br /> 8. Iaspaetioa. Lender may make or cause to be madc rea.aonablc entries upon and inspections of the Prop-
<br /> erty, provided that Lender ehall give Borroaer noticc ��rior to anp �u��h in�pection y�ecifying reasonuble cause
<br /> therefor related to Lender's interest in the Properiy.
<br /> ; 9: Condeaoaation. The proceeds of any awarci or claim for damages, direct ar consequential, in conneetion �
<br /> 1 with any condemnation or other taking of the Property , a• psM thereof, or for conveyance in lieu of condemna- '
<br /> ° tion, are hereby_ assigned and shall be paid to Lender. ,�
<br /> i In the event of a totai taking of the Property, thc proceeds ehall be npplied to the sums secured by this Mort- ' � ,
<br /> gage, with the excess, if any, paid to Botro�r•er. In the event of a partial taking of the Property, unless Bonower , tf 1 �
<br /> � and Lender otherwise agree in writing, there shnll be applied to the sums secured by this Jlortgage such propor- I "
<br /> _ , ` tion of the proceeds as is equsl to that proporLion which tl�e amount of the sums secured Uy thia Vlortgage imme-
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<br /> >-.i diatelq prior,to the date of taking bears to tl�e fair market value of tl�e Property immediately prior to the date of
<br /> , tslang, with the,balance of the proceeds paid to $orrower. � ,`. � �-'�{
<br /> i ' If the. Property is abandoned by Bonower or if nfter notice by Lender to Bono�ver that the condemnor offers *�:�;
<br /> � to malre'an awaTd "o; settie u claim for damages, Bonower fails to respond to I,ender within 30 days of the date '" °'
<br /> of suclr notiee,- Y.ender is avthorized to collect and applg the �>roceed4 at T,e.nder� option CItII@P fQ rectornt.ion or
<br /> ' � ' repair of,the Property: or to the sums aecured by tliis \lortgnge.
<br /> Unlges Lender and Boriower other�vise sgree in writing, any such application of proceeds to principal shall
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