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<br /> If under paragraph IS hereof thc Yroperty is sold or the Property is otherwise acquired by Lender, Lender
<br /> shall apply, no Iater than immediately prior to the sale of t6e Propc�ty or its acquisition by Lender, any Funds
<br /> held by Lender at the time of application as a credit against the swns secured by this Vlor'tgage.
<br /> 3. Application of Paymeata Unless applicablc In«• provides othernise, all payments received by Lender
<br /> i under the Note and paragrupl�s 1 xnd 2 hereof shall hc applied by I.ender first in ��ayment of amounts pnyable to
<br /> � Lender by Borrower under paragraph 2 hereof, then to intcrest i�ayablc on the Note and on Future Advnncea, if
<br /> i Q� any, and ' then to the principal of the Note and to the principal of Future Advnnces, if uny. „
<br /> 3 Q� 4: Ch�ges; Liens. Borrower sl�all pay all tuxes, assessments nnd other charges, fines and impositions attrib-. ' � `
<br /> � �+'J utable .to the Property which may attain a prioriEy over tl�is \4ortgage, and ground rents, if any, at Lender's i�
<br /> p option in the manner provided under paragraph 2 hereof or by Borrower �unking payment, when due, directly to � `
<br /> p the payee thereof. Bonower shaA promptly furnish to Lender sll notices of amounts due under this paragraph, ;' , '
<br /> �� Q and in the event Borrower shall make payment directly, I3orro�eer shall promptly furniah to Lender receipts evi- � ' ��
<br /> � dencing sucl� payments.Borrower shall promptly disci�srge sny lien which has priority over this Mort n e • s
<br /> S B > Pro-
<br /> � vided, that Borrower shall not be required to discharge any sucli lien so long as Borrower sl�all' agree in writing to
<br /> � the paymeat of the obligation secured by such lien in m m�nner acceptuble to Lender, or shall in good fsith contest F
<br /> I� auah lien by, or defend enforcement of sucli lien in, legal proceedings wl�ich operate to prevent the enforcement of
<br /> the lien or forfeiture of the Property or any part tl�ereof.
<br /> ' f 5. Hazard Iasuraace_ Bonower shall keep tlie i�nprove�nents now existing or hereafter erected on tl�e Prop-
<br /> � erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br /> Lender may require and in such amounts and for sucli periods as Lender may require ; provided, that Leader shstf
<br /> '� not require that the umount of such coverage exceed that amount oP coverage required to pay the sums secured'by
<br /> ?� this Mortgage.
<br /> " The insurance carrier providing tl�e insurance shall be chosen by Borrower subject to approval by Lender ; t
<br /> ;.� provided, that such approval shall not be unreasonably �vithheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner ptovided under puragraph 2 hereof or by Borro�ver mAking payment, when due, �
<br /> :i 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 j
<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 snd renewals thereof shall be in form acceptable to Lender and shall include a standard '
<br /> mortgsge clause in favor of and in form acceptable to Lender. Lender shall have the right to liold the 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 prompt notice to the insurance carrier and Lender, and Lender � , °
<br /> may make proof of ]oss if not msde promptly by Borrower. ` y �,,,
<br /> Unless Lender and Borrower otherwise agree in writin�, insurance proceeds shall be applied to restoration or ' " ,,�,�
<br /> repair of the Property damaged, provided such restoration or repair is economically feasible and the security of `:'�'_
<br /> thia Mortgage is not thereby impsired. If such restoration or repair is not economicaIly feasible or if the security ' , � � ' ;;��
<br /> of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, ` ;' �
<br /> with the excess, if any, paid to Borrower. If the Yroperty is abandoned by Borrower or it Borrower fails to respond � ��;��
<br /> to Lender within 30 dsys after notice by Lender to Borrower thut the insurunce cnrrier offers to settle s claim for r w'
<br /> inaurance benefits, Lender is nuthorized to collect and apply the insurance proceeds at I.ender's option either to
<br /> restoration or repair of the Property or to the sums secured by this �Iortgage. � '' '
<br /> �` f;s;, .
<br /> Unlees Lender and Borrower othenvise agree in �vriting, any such application of proceeds to principal shall ° zr•"
<br /> not extend or postpone the due date of the inonthly instollments referred to in parugraphs 1 and 2 hereof or change ;�.
<br /> the amount of such inetallments.
<br /> If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in � �..�'`�
<br /> and to any insurance policies and in and to the proceeds tl�ereof (to the extent of the sums secured by this Mort- -�
<br /> gage immediately prior to such sale or acquisition) resulting from datnuge to the Property prior to the sale or
<br /> ncquieition shall pass to Lender.
<br /> 6. Preservation mzd Mmtstea�ce of Property; Leaseholds; Coadomiaiums. Borrower shnll keep the Prop- ' �^a�zs
<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 Jlortgage is on a leasehold. If this vlortgage is on a condominium ' ';�`
<br /> unit, Borrower shall perform all of Borrower's obligations under the declaration af condominium or master deed �;
<br /> the by-laws and regulations of the condominium project and constituent documents. � 4.
<br /> 7• Pratectioa of Lender:s Seeurity. If Borrower fails to perform the covenants snd agreements contained in �:
<br /> this Mortgage, or if any action or proceeding is commenced which mnterially affects Lender's interest in the Prop- ;�.
<br /> erty, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceed- =�r„
<br /> inga involving a bankrupt or decedent, then Lender at I,ender's option, upon notice to Bortower, may make such
<br /> appearances, disburse sucl� sums and take such action as is necesssry to protect Lender's interest, including, but
<br /> not limited to, diabursement 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 thereon, shsll become udditional indebt-
<br /> edness of Borrower secured by this �fortgage. Unless Borrower and Lender sgree to other terms of. payment, such
<br /> amounte shall be payab]e upon notice from Lender to Borrower requesting payment thereof, 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 /> cohtrary to applicable law, in which event such amounts shall besr interest at the highest rate permissible by �
<br /> applicable law. Nathing contuined in this �aragrapli 7 sl�all re�uire Lender to incur any expense or do any act
<br /> bereunder_
<br /> 8• Iaspeatioa. Lender :nay inake or cause to hc �nadc reasonable entries upon and inspections of the Prop-
<br /> erty, provided that Lender sl�sli give Bonower noticc �u•ior to nnr such inspection specifying rensonable cauae
<br /> tberefor related to I,ender's interest'in the Property.
<br /> 9. Condamaatioa The proceeds of any a�vaxi or claim For damages, direct or consequential, in connection
<br /> with any eondemnation or otlier taking of the Property, or part thereof, or for conveyance in lieu of condemna- '
<br /> tion, are hereby assigned and ahall be paid to Lender. � �
<br /> In the event of a total taking of the Property, the proceeds slisii be applied to the sums secured by this Mort- � t
<br /> gage, with the eaccess, if any, paid to Borrower. In. tl�e event of a partial taking of the Property, unlesa Boaoober � ' ' ''
<br /> and Lender oZherwise agree in writing, there shall be applieci to the sums secured by thie vIortgage such pro or- s' �i
<br /> tion;of the proceeds ae is equsl to thatproportion which tlie umount of the sums secured b this Vlort p ;� "' '
<br /> Y gage imme- �� ��
<br /> diatelypnorto the date of taking bears to the fair inarket value of tLe Property immediately prior to the date of
<br /> ��6, ��.�e balsnce of�the proceeds,paid to Borrowen �x;i
<br /> If the Prt�perty.is abandoned by Borron�er or i£ After notice by Lender to Borrower thst the condemnor o$ers
<br /> Lo mgke an awaid 'or:settle a clsim for damages, Borrower fails to respond to I.ender within 30 duys of the date �`� ��
<br /> of.uauch notice�• Itiender is suthorised to"collect and apply 'the' �iroceeda st Lender's option either to restoration or �
<br /> repau of,the Property ar to the 8um� seaurec} by,this \iortgage.
<br /> ; Urileas Lender and Borrower othernise sgree in writing, any auch application of proceeds to principa! shall
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