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hIf under parsgraph 18 hereof the Property is sold or the Property is otherwise acquired by T.ender, Lender • �
<br /> shall apply, ao later than immediately prior to the snle of t6c Property or its acquisition by Lender, any Funds
<br /> held by Lender at the time of application as u credit ngainst tl�e aums ,ecured by this \�Iortguga
<br /> 3. Application oi Paymenis. Unless applicabic In��• providcs othenvise, ull payments received by Lender
<br /> under the Note und paragraplis 1 and 2 hereof sliall hc applied by I ender first in payment of umounts payable to
<br /> Lender by Barrower under paragraph 2 hereof, then to interest puyable on thc Note and on Futurc Advances, if
<br /> any; and then to the principal of the Notc and to tlie principnl of Future Advances, if any.
<br /> j 4. Ch�ges; Liens. Borrower sl�all pay all tuxes, assessments nnd other char�es, fines and impositions attrib- , ,
<br /> utpble to the . Property which may nttain a priority over this vlortgage, and ground rents, if any, at Lender's
<br /> � option in the manner provided under paragraph 2 hereof or by Borrower �nsking payment, wlien due, directly to
<br /> the payee thereof: Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, �':,
<br /> and in the event Borrower shall make payment directly, Borrower shnll promptly Curnish to I.ender receipts evi-
<br /> denaing sucl� payments. Borrower shall promptly discharge any lien which has priority over this :l�Iortgage ; pro-
<br /> C vided, that Bonower shall not be required to discharge any such lien so long as Borrower shull agree in writing to
<br /> � G the payment of the obligation secured by such lien in ai manner acceptable to Lender, or•shall �in good faith contest
<br /> : 3 euch lien by, or defend enforcement of such lien in , Iegal hroceedings wl�ich operate to prevent the enforcement of +
<br /> Y � the lien or forfeiture of the Property or any part thereof.
<br /> ^ S. H6zard Insurrmce. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br /> � erty insured against loss by fite, hazards included within the term "extended coverage", and suel� other hazards as
<br /> ' ; Lender may require and in such amounts and for sucti periods as Lender inay require ; provided , that Lender shall
<br /> ' ? not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured 'by
<br /> ; this Mortgsge.
<br /> i The insurance carrier providing t6e insurance sha❑ be chosen by Borrower subject to approvssl by Lender ;
<br /> , , - � provided, thut such approval shall not be unreasonabIy withheld . All premiums on insurnnce policies shall be paid
<br /> j at Lender's option in the manner provided under paragrapl� 2 hereof or by Borrower making payment, when due
<br /> j directly to the insvrance 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 /> f 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 /> 7 All insurance policies and renewals therevf sha❑ be in forn� aceeptable to Lender and shall include a stanclard ,
<br /> ' j mortgage clause in favor of and in form acceptable to Lender. I.ender shall have the right to ho]d the policies and
<br /> } renewals thereof, und Borrower shall promptly turnish to Lender all renewul notices and uil receipts of paid pre-
<br /> " 1 miums. In the event of loss, Borrower shsll give prornpt notice to the insurance canier and Lender, and Lender `
<br /> jmay make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower othenvise agree in �vriting, insurance proceeds shall be applied to restoration or
<br /> � repair of the Property damaged, provided such restoration or repnir is econotnically feasible nnd the security of
<br /> this Mortgage is not tl�ereby impaired. If such restoration m• repssir is not economic3lly feusible or if the security
<br /> � of this �4ortgage would be impaired, the insurance proceeds shall bc applied to the sums secured Uy this Mortgage,
<br /> ' � �vith the exceas, if any, paid to Borrower. If the Yroperty is abandoned by Borro�ver or if Borrower fails to respond .
<br /> ' { to Lender within 30 days after notice by Lender to Borrower thrit the insurunce carrier offers to settle a claim for ' ��
<br /> � ineurance benefits, Lender is authorized to collect and apply thc 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 Borroa-er othenvise agree in writing, uny sucl� upplicntion of proceeds to principal shall
<br /> not extend or postpone the due date of the inonthly instullments referred to in paragraphs 1 and 2 hereof or chsnge
<br /> � the amouat of such installments.
<br /> ( If under paragraph 18 hereof the Property is acquired by Lender, nll right, title nnd interest of Borrower in
<br /> i and to sny insura.nce policies nnd in and to the proceeds tl�ereof (ta tlie extent of the sums secured by this Mort-
<br /> gage immediately prior to such sale or acquisition ) resulting frorn damage to the Property prior to the sale or
<br /> -� acquiaition shall pase to Lender_
<br /> j6. Preservation cmd Mmntea�ce of Property; Leaseholds; Condominiums. Borrower shall keep the Prop- �
<br /> 3 erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and ahall
<br /> i comply with the provisions of uny lease, if this \4ortgsge is on a leaseliold. If this Mortgnge is on a condominium
<br /> � unit, Borrower shall perform nll of Borrower's obligations imder the declaration of condaminiurn or master deed ,
<br /> -; the by-lawe and regulations of the condominium project and constituent documents.
<br /> � 7. Protection of I.ender's Security. If Borrower fuils to perform the covenants and agreements contained in
<br /> � this vlortgage, or if any action or proceeding is commenced �vhich materially afTects Lender's interesE in the Prop-
<br /> � erty, including, but not limited to, eminent domain , insolvency, code enforcement, or urrangements or proceed-
<br /> ` ; ings involving a bankrupt or decedent, then Lender at i.ender's option, upon notice to Borrower, may make such
<br /> 5 appearancea, disburse sucl� sums und take sucl� uctiun as is necessary to protect Lender's interest, including, but
<br /> not limited to, disbursement of reasonable attorney's fees ancl entry upon thE Property to make repsirs. Any
<br /> � amounts disbursed by Lender pursuant to this paragrap6 7, �vitl� interest thereon, shull become additional indebt-
<br /> ; ednese of Borrower secured by this Dfortgage. Unless Borro�ver and Lender agree to other terms ot payment, such
<br /> ; 3 amounts shall be payable 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 auch rate would be
<br /> 3 contrary to applicsble law, in which event such amounts shall bear interest at the highest rnte permissible by
<br /> ' 1 applicable ]aw. �Iothing contuined in this parngrapli ? shall require Lender to incur any expense or do any act
<br /> - :� hereunder.
<br /> f 8. Inapection. Lender muy make or cnuEe to he mnde reasonable entries upon and inspections of the Prop-
<br /> - ; erty, provided that Lender shall give Borrower notice prior to an}• such in5pection .pecifxing reasonable cause
<br /> � therefor reIated to Lender's interest in the Property.
<br /> ;t 9. Condemnation. The proceeds of anp nwarci or claim for damages, direct or consequential, in connection
<br /> , � with any condemnation or other taking of the Property, or part thereof. or for conveyance in lieu of condemna-
<br /> � tion, sre hereby assigned and shall be paid to Lender.
<br /> " � _ In the event of a total taking of the Property, the i�roceede sliall De npplied to the sums secured by thie Mort- ;y� �
<br /> , ! , .gage, �vith the excess, if any, paid to Bonower. In the event of a partial taking of the Property, unless Bonower • w �""" �
<br /> and I.endex otherwise agree in writing, there shall be applied to t8e sums secured by this �Iortgage such propor- < .s, ., : ''
<br /> "� tion of.the proceeds as is equal to that proportion which tlie amount of the sums secured by thia biortgage imme- � ' ;�
<br /> �diately prior to. the date of taking bears to Lhe fair market velue of tl�e Property immediately prior to the date of '
<br /> , . 4 �
<br /> ; teking, wit,�i the balance of the proceeds paid to Boaower.
<br /> � ' I£the;Property is abandoned by Borrower ar if nfter notice by Lender to Borrower that the condemnar offers 4"'= `: ^x
<br /> ;� to make sa "award:or settie a claim for damages, Borrower fails to respond to I,ender within 30 days of the date '� i � �,
<br /> ,� ofauch riotice; Lenderis authorized to collect and apply the proeeeds at Lender's option either to restoration or -*'"° -^
<br /> y, . repair of the Propecty or to the amns secured by this \Iortgage.
<br /> } Unleas Lender and Borrower oEherwise agree in writing, any such application of proceeds to principal ahall
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