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<br /> k If under psragraph 18 hereof Lhe Property is sold or the Property is otherwise acquired by Lender, Lender �
<br /> shall apply, no later than immediately pcior to the sale of the Yropert.y or its ucquisition by I.ender, any Funds
<br /> held by Lender at the time ot npplication as a credit against the sums �ecured b�� this �fortgage.
<br /> 3. Applieation of Paymeais. Unless applicablc la«• provides otl�envisc, :ill pnyments received by Lender
<br /> under the Note and paragrapLs 1 and 2 hereof shull bc applied by I.ender firsf, in payment uf amounts payable to
<br /> Lender by Borrower under, paragrnph 2 l3ereof, then to interest pnyuble on the Note and on Futurc Advances, if
<br /> any, and then to the principal of the Note nnd to �ic principal of Future Advances, if any. ' ;;
<br /> 4. Chargesr Liens. Borrower sliall pay all tiaxes, assessments and otl�er charges, fines und impositions attrib- < <
<br /> � utable to : the Property which may attain a priority over tliis Mortgage, and �round rents, if any, at Lender's
<br /> rs �y option in the manner provided under parsgraph 2 hereof or bv Borrower inaking payment; �vhen due, directly to
<br /> , �, 0 t l�e payee t hereo f. Borrower a ha l t promp t ly furnis h to Len der u l l no tices o f smounts due un der t his paragrap h,
<br /> " � and in the event Borrower shall make payment directly; Borro�eer shall promptly furnish to Lender receipts evi-
<br /> � " d dencing sucU payments. Borrower shall promptly discharge any lien which has priority over this �fort�age ; pro-
<br /> .� vided, that Borrower shall not be required to discharge any sucli lien so long as BorrowQr sha11 agree in writing to
<br /> � the payment of the obligation secured by such lien in ;� �nanner acceptable to Lender, or ahall in good faith contest
<br /> � i', such lien by, or defend enforcement of such lien in , legal proceedings wLich operate to prevent the en#orcement of
<br /> �, � the lien or forfeiture of the Property or any part tl�ereof.
<br /> E pp 5. Hazard lnsuzaace. Borrower shall keep tlie improvements now existing or hereafter erected on the Prop-
<br /> erty insured against loas by fire, hazurds included within the term "extended coverage", and such other hazards as
<br /> ' Lender may require nnd in such arnounts and for such periods as Lender may require ; provided, that Lender shaA
<br /> � not require that the amount oF such coverAge exceed that amount of coverage required to pay the sums secured 'by
<br /> � thia Mortgage.
<br /> ' The insurance currier providing tlie insurauce shall be chosen by Borrower subject to approval by Lender ;
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<br /> provided, that such approval shall not be unreasonsbly withheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under paragraph 2 Lereof or by Borro«�er making payment, when due,
<br /> d'uectly 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, msy 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 Bonower to comply may, at option of Lender, constitute a default
<br /> under the terms of this Mortgage.
<br /> � Ali insurance policies and renewuls thereof sl�all be in fonn a�cceptable to I.ender and shnll include a standard - �"
<br /> t mortgage clause in favor of and in form acceptable to Lender. I,ender shall have the right to l�old the policies and ?
<br /> r renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of puid pre-
<br /> {.. miums. In the event of loss, Borrower shall give prompt notice to the insurance essrrier and Lender, and Lender
<br /> � may make proof of loss if not made promptly by Borrower.
<br /> � Unless Lender and Borrower othenvise agree in �vriting, insurnnce proceeds shall be applied to restoration or
<br /> � repair of the Property damaged, provided such restoration or repair is economically fessible and the security of
<br /> ', this Nlortgage is not thereby impaired. If such restoration or repair is not economicnlly feasible or if the security �
<br /> 7 of this Mortgage would be impaired, tl�e insurance proceeds shall be applied to thc sums secured by this Mortgage, : ,:
<br /> � with the excess if an ';
<br /> , y, paid to Bonower. If the Yroperty is ssbandoned by Borrower or if Borrower fails to respond �
<br /> � to Lender within 30 days after notice by Lender to Bon•ower that the insurance carrier offers to settle a claim for ' `,
<br /> � ineurance benefits, Lender is suthorized to collect and apply thc insurance proceeds at Lender's option either to ; `
<br /> reatoration or repair of the Property or to t1�e sums secured by tl�is \Iortgage. , '
<br /> Unless Lender and Borrower othenvise agree in �vriting, any such application of proceeds to principal shall
<br /> not extend or postpone the due date of the inonttily installments 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 Lender, nll right, title und interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds thereof (to the extent ot the �ums secured by this Mort-
<br /> gsge immediately prior to such sale or acquisition j result.ing from damage to the Property prior to the sale or i°
<br /> acquieition shall pass to Lender.
<br /> 6. Preservation �d Mmntea�ce of Property; Leaseholds; Condominiums. Borrower shall 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 with the provisions of any lease, if this \ [ortguge is on a leasehold. If this VLortgage is on a condominium
<br /> unit, Bonower shall perforn� 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 /> R Pzotection of Lender's Seeuzity. If Borrower fnils to perform the covenants and agreements contained in
<br /> this Mortgage, or if nny action or proceeding is commenced which muterially affects Lender's interest in the Prop-
<br /> erty, including, but nat limited to, eminent do�nain , insoh•ency, code enforceinent, or arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender at Lender's option , upon notice to Borrower, may make such
<br /> appearances, disburse such sums and take such action ns is necessary to protect Lender's interest, including, but
<br /> not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br /> amounts disbursed by Lender pursuant to this paragraph 7, �vith interest thereon, shall become additional indebtc
<br /> � ednese of Borrower secured by this �fortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> amounts shall be ,psyable 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 ot interest at auch rate would be
<br /> � contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br /> spplicable law. Nothing contnineci in this Puragranli 7 shnll requirc Lender to incur any expense or do any act
<br /> hereunder:`
<br /> 8. 7aspeetion. Lender may make or cauce to f�c inadc reseonable entries upon and inspections of the Prop-
<br /> erty, provided that Lender eGall give Borroa�er notice � n•ior to nm• such inspection specitying reasonable cause
<br /> therefor relsted to Lender's interest in the Property.
<br /> 9.; Condemaation. The proceeds of uny award or claim for clumages, direct or consequentisl, in connection
<br /> , , � � with anp condemnation or.other� taking of the � Property, or part tl�ereof, or for conveyance in lieu� of� condemna- �
<br /> tion, are hereby assigned and ahall bc paid to Lender.
<br /> "`�` In'the event of a total taking of the Property, the proceeds sl�all be anplied ta the sums secured by this Mort- .,, �.�_,. ��
<br /> r gsge, withthe exceas, if any, paid to Borro�ver. In thc event ot a partial taking of the Property, unless Borrower �
<br /> � u: sad Lender otherwise agree, in writing, there ehall be applied to the swus secured by this Alortgnge such propor- .�; a!
<br /> -� tion of thaproceeds as.is..equ91 to t1�st proportion whiclr tl�e amount of tlie sums secured by this l�fortgage imme- , ,�.�; -'
<br /> e, diately prior to the date of taking bears to. the fair �narkeG value of the Property immediately prior to the date of �� ��
<br /> �- - takmg, with the balsnc`e`ot'the proeeeds paid to Borrower. �`
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<br /> �' If the;Pmperty �s abandoned by:Borrower or if Rfter notice by Leader to Borrower that the condemnor offers �w �' ��•. .
<br /> ^ to make sn aw�rS or'settle, a cisuri Yo� d'amages, 'Borrower fails to respond to Lender within 30 days of the date ; ., µ;k ,, ;tw,
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<br /> �'` � o€ such:no�ice;` 7.ender is authoriaed •to -coitect and ap��ly the �iroceeds at Lender':� option citlier to restoration or
<br /> `.�i zepair of.the PtoperEy or to:the aume secured ; by tUis \lortgage.
<br /> , ;p IInlcss Lender'and Borrower otherivise agree in writing, any such appiication of proceeds to principal shall
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