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<br /> If under paragraph 18 hereof the Property is sold or the Property is othen��ise acquired b,y I.ender, Lender
<br /> shall apply, no later than immediately prior to thc salc of the Property or its riequisition by I.ender, any Funds
<br /> held by Lender at the time of npplication as a credit ttgttinst the suins secured by this Vlortgsge.
<br /> 3. Application of Paymeats. Unless applicablc In�r provides otherwisc, all p�yments received by Lender
<br /> under the Note nnd parsgraplis 1 and 2 hereof shall he applied by I.endcr first in payment of amounts payable to
<br /> Lender by Borrower under paragrapli 2 hereof, then to interest pxyuble on thc Note and on Future Advances, if
<br /> �-! any, and then to the principal of the Note and to the principal of Future Advunces, if any.
<br /> � 1'�`- 4. Charges: Liens. Borrower sliall pay all taxes, nssesstnents and other charges, fines and impositions attrib- �
<br /> Lfa utable to 'the Property which m$y attuin a priority over this �Iortgage, and ground rents , if any, at Lender's
<br /> O option in the manner provided under paragraph 2 hereof or by Borrower making psyment, �vhen due, directly to
<br /> C7 the payee thereof. Borrower sha}I promptly furnish to Lendcr all notices of amounts due under this paragrsph,
<br /> �J and in the event Borrower shall makc payment directly, Borro�ti•er shall promptly furnish to Lender receipts evi-
<br /> � dencing such payments. Borrower shall promptly discharge any lien which has priority over this \4ortgage ; pro-
<br /> pp vided, that Borrower ahall not be required to diseliurge uny such lien so long as Borrower shaYl agree in writing to
<br /> � ', ^ the payment of the obligation secured by suc13 lien in n manner acceptnble to Lender, or shnll in good faith contest
<br /> such lien by, or defend enforcement of such lien in, legat proceedings which operate to prevent thc entorcement of
<br /> the lien or forfeiture of the Property or nny part thereof.
<br /> S. Hazard Insur�ee. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br /> erty insured against loes by fire, hazsrds included within the term "extended coverage", and such other huzards as
<br /> Lender may require anc! in such amounts und for sucle periods as Lender muy require ; provided, that Leader shs1l
<br /> not require that the amount of such coverage exceed thnt amount of coverage required to pay the aums secured 'by
<br /> this Mortgage.
<br /> The insurance carrier providing the insurance shall be ehosen by Borrower subject to approval by Lender ;
<br /> provided, that such upproval 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 pnyment, when due,
<br /> directly to the insurance csrrier.
<br /> In the event any policy is not renewed on or before ten days of its espiration, the Lender, to protect
<br /> t its interest, may procure insurance on the improvements, pay the premiums and such sum shall become
<br /> unmediately 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 inaurance policies and renewals thereot shall Ue in forin ucceptablc to Lender and shall include a standard
<br /> mortgage clause in favor of and in form acceptable to Lender. I.ender shnll httve thc right to liold the policies nnd
<br /> renewals thereof, and Borrower shnll promptly furnish to Lender ull 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 /> msy make proof of loss if not made promptly by Borro�ver.
<br /> Unless Lender and Borrower othenvise agree in writing, insurnnce proceeds shall be applied to restoration or
<br /> s repair of the Property damaged , provided such restoration or repair is economically feasible nnd the security of
<br /> ; this Vlortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br /> of this Mortgage would be impaired, tl�e insurance proceeds shall bc applied to the sums secured by this Mortgage,
<br /> � with the excesa, if any, psid to Borrower. If the Yroperty is abandoned by Borrower or if Borrower fails to respond �
<br /> to Lender within 30 days after notice by Lender to Borrower tlint the insurance cnrrier offers to settle a claim for :
<br /> s insursnce benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br /> � restoration or repair of the Property or to the sums secured by tl�is \Iortgage.
<br /> ` ; Unless Lender and Borrower othenvise agree in writing, nny suct� application 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 a :
<br /> E the amount of such installments. ,,,.F.;
<br /> t 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 tliereof (to the extent of the sums secured by this Mort- ��
<br /> �f gage immedistely prior to such sale or ncquisition) resulting frmn damage to the Property prior to the sale or ,
<br /> . 1 acquieition shall pass to Lender.
<br /> , . � 6. Preaezvation �d Mmaten�ce of Propezty; Leaseholds; Condomiaiums. Borrower shnll keep the Prop-
<br /> erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Yroperty and shsll
<br /> t comply with the provisions of any lease, if this viortguge is on a leasehold. If this vlortgage is on a condominium
<br /> � unit, Borrower ahall perform all of Borrower's obligations imder the declarution of condominium or master deed,
<br /> the by-lawa and regulationa of the condominium project and constituent documents.
<br /> � 7. Proteetioa of Lender's Seeuzity. If Borrower fails to perform the covenants and agreements contained in
<br /> this vlortgage, or if any setion or proceeding is commenced �vhich materi�tlly affects Lender's interest in the Prop-
<br /> erty, including, but not limited to, eminent domain , insoh�ency , code enForcement, or arrangements or proceed-
<br /> , � inge invoiving a bankrupt or decedent, then Lender at I.ender's option, upon notice to Borrower, may make auch
<br /> appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br /> ; ; not limited to, diabursement of reasonnble attorney's fees and entry upon the Property to make repsirs. Any
<br /> " '� amounts diabursed by Lender pursuant to this paragrnph 7, �vith interest thereon, shall become ssdditional indebt-
<br /> . � edness of Borrower secured by this tiforLgage. Unless Boaower and Lender agree to other terma of payment, such
<br /> amounts shall be payable upon notice from Lender to Borrower requeating payment thereof, and shall bear inter
<br /> ' I eat from the date oi diabursement at the rate stated in the Note unless payment of interest at such rate would be
<br /> < j contrsry to applicable law, in which event such amounts shall bear interest at the higheat rate permiesible by
<br /> 9 applicable law. �Tothing contssined in this paragrnph 7 shall require Lender to incur any expenae or do any act
<br /> hereunden
<br /> ' :� 8. Inspsetioa. Lender may make or cause to bc inadc reaEopable entries upon and inspections of the Prop-
<br /> ^ i erty, provided that Lender shall give Borrower notice ��rior ro nm• such inspectian ::pecifying reasonable cause -
<br /> � therefor related to Lender's interest in the Property.
<br /> . 9. Condemaatioa. The proceeds of uny award or clsim for damuges, direct or consequential, in connection
<br /> ; i with any condemnation or other talcing of the Property, or part thereof, or for conveyance in lieu of condemna- ;
<br /> � tion, are hereby assigned and shall Ue paid to Lender. , .= -
<br /> # In the event of a totai taking of the Property, the �iroceeds el�a❑ be applied to the swns secured by this Mort- - �
<br /> � gage, �vith the excess, if sny, paid to Borrower. In the event of a partiul tnking of the Property, unless Borrower w ,�; � '
<br /> "N � and Lender otherwise agree in writing, there shal! be applied to the suma secured by this \Lortgage such propor- ; :
<br /> tion of the proceeds as is equsl to thst proportion which the amount of the sums secured by this Mortgage imme- ! ' ' "
<br /> diatel nor to the date of takin bears to the fair market value of the Pro ert immediatel ", 4
<br /> .s Y. P � 8 P Y Y Prior to the dste of F.., ,. i
<br /> " j , taking, with t�he balance of the proceeds paid to Borrower. ;i 4,.
<br /> ;� If the Property is abandoned ,by Borrower or if nfter notice by I,ender to Borro�ver that the condemnor offers � " *+;�,�„
<br /> ,-: � . to make.an, award ar settle a claim for damages, Borrower fails to respond to Lender wit4in 30 days of the date -�..� :�:, , •--
<br /> ' = of such notice, Lender is uuthorized to coilect 'and apply ihc proceeds at Lender's option eitHer to restoration or
<br /> repair of the Property ar to the sums aecured by this \Iortgage.
<br /> ;-;� Unless Lender and Borrower othenvise agree in svriting, any auch application of proceeda to principal shall
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