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<br /> i If under paragraph 18 hereof thc Property is sold or the Property is othenvise acquired by T.ender, Lender
<br /> shnll apply, no later tl�an immediately prior to tl�c salc of the Property or its acquisition by I.ender, nny Funds
<br /> held by Lender at the time oC application as a cmdit against the �ums secured by� this 1Zortgaga
<br /> 3. Applicatioa of Payments. Unless a��plicablc lu«• provides othenvise, nll paymente received by I,ender
<br /> under the Note and paragrapLs 1 und 2 I�ereof shall l�c npplied by t,ender first in payment of amounts payable to
<br /> Lender by Borrower under paragrapli 2 liereof, then to intemst �sayable on the Note and on Future Advances, if ;
<br /> any, and then to the principal of the Noto and to the principal of Future 9dvances, if any. � `
<br /> ' 4. Cla�ges; Lieas. Borrower shall psyull taxes, assessments nnd other chorges, fines and impositions attrib-
<br /> � utable to the Property which may uttain a priority over tliis 1�Iort�age, and ground rents, if any, at Lender's
<br /> '2, option in the manner provided under parsgraph 2 hereof or by Borrower making payment, when due, directly to '
<br /> : the payee thereof. Borrower shall promptly furni§G to Lender ult notices of amounts due under tl�is paragraph ,
<br /> ; tQ snd in the event Borrower shall make payment directly, Borro�cer shall promptly furnish to Lender receipts evi-
<br /> T--� dencing such payments. Borrower shall promptly discharge any lien which has priority over this �4ortgage ; pro-
<br /> � ; Cp vided, that Borrower shall not be required to discharge any such lien so long as Borrower shall a�ree in writing to
<br /> - p the payment of the obiigation secured by sueh lien in a manner acceptable to Lender, or shall in good faith contest
<br /> p such lien by, or defend enforcement of such lien in , legsl ��roceedings �vliich opernte to prevent the enForcement of
<br /> � the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Insuz�ee. Borrower shall keep the improvements no�c existing or hereafter erected on the 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 sucl� periodc ns Lender may requirc ; provided, that Lender shall �
<br /> ^ not require that the smount of such coverage exceed tliat amount of coverage required to puy the sums secured 'by '
<br /> this Mortgage.
<br /> , � The insurance carrier providing tl�e insurance shall be chosen by Borro�ver suhject to approvnl by Lender ;
<br /> provided, thst such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br /> z at Lender's option in the manner provided under parsgraph 2 liereof or by Borrower making payment, when dae,
<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 inEerest, 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 /> ' Atl insurance policies and renewals thereof shall be in form Zcceptable to Lender and shall include A standard
<br /> ' � mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br /> # renewals thereof, and Borrower shall promptly furnish to Lender sll renewal notices and all receipts of paid pre- ;si;
<br /> , miums. In the event of loss, Borrawer shall give prompt notice to the insurance carrier and Lender, and Lender r
<br /> p may mske proof of loss if not made promptly by Borro�r•er. � .
<br /> " Unless Lender and Borrower otherwise agree in �vriting, insurance proceeds shall be applied to restoration or %
<br /> rrepair of the Property damaged , provided such restoration or repair is economicully feasiUle and the security of , r
<br /> � this VIortgage is not thereby impaired. If such restorntion or repair is not economicslly feasible or if the security `',
<br /> oi this Mort a e would be im sired the insurance roceeds shall be s lied to the sums secured b this Mort a e ''
<br /> SB P > P PP Y 8 B .
<br /> with the excess, if sny, paid to Borrower. If the Yroperty is abandoned by Barrower or if Borrower fails to respond
<br /> � to Lender within 30 days after notice by Lender to Borrower that the msurunce carrier offers to settle a claim for � ';
<br /> insurance benefits, Lender is suthorized to eollect 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 Borro�ver otherwise agree in �vriting, any such application of proceeds to principal shall
<br /> # not extend or postpone the due date of the mont6ly installments reFerred to in paragraphs 1 und 2 hereof or change '
<br /> k the emount of auch installments. �
<br /> ¢ If under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br /> ` � and to any inaurance policies and in and to tl�e proceeds thereof (to the extent of the sums secured by this Mort- r
<br /> " .$ gsge immediately prior to such sale or acquisition ) resulting from dumnge to the Property prior to the sale or ;
<br /> ucquieition shsll pass to Lender.
<br /> ; � 6. Preservaflon �ad Mmatea�ce of Property; Leaseholds; Condomiaiums. 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 \fortgage is on a leasehold . If this �Iortgage is on a condominium ` <"�
<br /> unit, Borrower 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 /> r 7. Proteetion of Lender's Seeurity. If Borrower fails to perform the covenants and agreements contained in
<br /> � this VIortgage, or if sny action or proceeding is commenced �vhich mnterially uffects Lender's interest in the Prop-
<br /> = erty, ineluding, but not limited to, eminent domain , insolvency, code enforcement, or nrrungements or proceed-
<br /> ; inge involving a bankrupt or decedent, then Lender at F.ender's option, upon notice to Borrower, may make such
<br /> { appearances, disburse sucli sums and take sucl� action as is necesssry to protect Lender's interest, including, but
<br /> ; ; � not limitecl to, diabursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br /> - k amounte disbursed by Lender pursuant to this paragraph 7, witli interest thereon, shall become additional indebt-
<br /> � edness of Borrower secured by this �fortgage. Unless Borrower and Lender sgree to other terms of payment, auch
<br /> � amounts ahaII bepayable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br /> esL from the date of disbursement at the rate stated in the Note unless puyment of interest at such rate would be
<br /> , . ; , contrary to applicable ]aw, in which event such amounts shall besr interest at the higheat rate permieaible by
<br /> � applicable law. Nothing contained in this paragrapli 7 shnll require Lender to incur any expense or do any act
<br /> hereunder.
<br /> � 8. 7aspection. Lender may make or cause to be madc reasonsblc entries upon and inspections of the Pmp-
<br /> erty, provided that Lender shall give Borrower noti�c ��rior to nny sucl� inspection cpecifying reasonuble cause
<br /> therefor related to Lender's interest in the Property.
<br /> � 9. Coademnation. The proceeds of any awarci or claim for damages, direct or consequentisl, in connection
<br /> with any:condemnation or other taking of the Property , or psrt Utereof, or for conveysnce in lieu of condemna-
<br /> tion, are hezeby assigned and shall be paid to Lender.
<br /> � In the event of a Cotai taking of the Property, thc proceeds shal] be applied to the sums secured by this Mort- .,. �-.-;- '� � �
<br /> r' ",-, gsge, tivith the esceas, if any, paid to Borrower: In the event of a psMiai taking of thc Property, unless Borrower
<br /> �-`. and Lender otherwise agtee in writing, there sl�all be applied to tl�e sums secured by this \iortgage such propor- � �. ` ` ' '
<br /> �W:
<br /> Eion of the proceeds as is equsl to that proportion which tlie amount of the sums secured by this ;4lortgage imme- � T'
<br /> �" diately,prior to the date of taking bears to the fair n�arket value of the Property immediately prior to the date of ,� ' '
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<br /> h` tsking, �iritlrt�a bsTance of the proceeds paid to Bonower. A
<br /> > If tfie Property is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers � ` �
<br /> fo make an award or settle a claim for dumages, Borrower fnils to respond to Lender within 30 days of the date � : �-� :.n�"
<br /> ^� of suoti `notace, Lender is authorized to collect and agply the prceeeds at Lender's option citlier to restoration or "
<br /> repair of�he Property or to the aum's secured by tl�is liortgage.
<br /> Unless Lender' and Borrower otlienvise agree .in writing, any such application of proceeds to principal shall
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