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<br /> If tmder parugrnph 18 hereof thc Yroperty is sold or the Yropertp ie otherwise acquired by i,ender, Lender •
<br /> shall apply, no later thun immediately prior to thc sxlc of tl �e Yro� �crty or its acquisition by I,ender, any Funds
<br /> held by Lender nt the time of appiication us a credit againvt the sum� securcd b�• thi. Vlortgnga
<br /> 3. Applicction of Payments. Unless np��licablc la«� providc� otherw�ise, :�II paymenGS reccived by Lender
<br /> under the Note and paragrapl�s7 and 2 hereof shnll hc ap��lied by Lendcr firet in payinent of amounts payablc to
<br /> Lender by Borrower under paragrapli 2 hereot, then to interest payablc on tlie \Tote nnd on Futurc Advances, if
<br /> ssny, and then to the principal of the iVote ancl to the princinal o[ Future Advances, if any.
<br /> 4. Ch�ges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions nttrib-
<br /> � utable to the Property which may attain a priority over tliis Vlort�age, and ground rents, if any, at Lender's �
<br /> option in the manner provided under pnragraph 'L hereof or by Borrotiver making payment, when due, directly to
<br /> the payee thereof. Borrower shall promptly furnish to I.ender all notices of amounts due imder this parsgruph ,
<br /> ` � and in the event Borrower shatl makc payment directly , Borrowcr shalt prompt.ly furnish to I,ender receipts evi-
<br /> ' *—i dencing such payments. Borrower shall promptly disc6arge any lien which has priority over this \Iortgage ; pro-
<br /> � *-1 vided, that Borrower shall not be required to discl�arge any sucli ]ien so long us Borrowcr shall a�ree in writing to
<br /> +--�! the payment of the ot�iigation secured by such lien in :i mnnner ucceptable to Lender, or sLall in good faith contest
<br /> O such lien by, or defend enforcement ot such lien in , legal proceedings wliich operate to prevent. the enforcement of
<br /> � the lien or forfeiture of the Property or nny part ti�ereof.
<br /> � 5. Hazard Insur�ce. Borrower sh�ll keep the i�nproveinents no��� existing or liereufter erected on the Prop-
<br /> � erty insured against loss by fire, hazards included �vithin the term "extended coverage", and such other hazards as
<br /> ^ Lender may require and in such amounts nnd for such ��eriod� ns I.ender muy require ; provided , that Lender shaIl
<br /> ' not require that the amount of such coverage exceed tl�at amount. ot coverage required to ptty the sums secured 'by
<br /> thie Mortgage.
<br /> The insurance cnrrier providing tl�e insurauce shall Ue chosen by Borrower suhject to ttpproval by Lender,
<br /> provided, that such approval shall not be unreasonably �vithlield. :111 premiums on insurance policies shall be paid
<br /> ; at Lender's option in the manner provided under paragrapli 2 hereof or by Borrower making payment, when due,
<br /> directly to the insurance carrier.
<br /> In the event any policy is not renewed on or beEore 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 /> 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 and renewals thereof �hall I.>c in fonn scceptable to I.eurler and sha11 inctude a stanclard
<br /> mortguge clause in favor of and in form acceptable to Lencler. I.ender �I�all have the right to holci the policies und
<br /> ' renewals tl�ereo[, and Borrower shall promptly turnish to Lender nit rene�val notices und all receipts of paid pre-
<br /> ' miums_ In the event of loss, Borrower shall gi��e prompt uotice to tl�e insurance carrier and Lender, and Lender
<br /> ` may make proof of loss if not made procuptly Uy Borrower. G
<br /> Unless Lender and Borrow�er othern�ise agree in writiug, insurancc proceeds shall be upplied to restoration or r'
<br /> 4 repair ot the Property damaged , procided such restoration or repuir is economicall}� feasible and the seeurity of '
<br /> ' y thia Mortgage is not tlzereby impaired _ If such restorntion or repair is not economicall}• fensible or if the security 7"
<br /> � of this \-Iortgage would be impaired, tlie insurac�ce proceeds sliall Lc applied to thc sums secured by this A4ortgsge, �
<br /> � with the excess, if any, pnid to Borrowett If the Yropm•ty is abandoned by I3orrower or if Bortower fssils to respond ;
<br /> ; to Lender within 30 days after notice by Lender to Borrow•er tliat the insurnnce carrier ofTers to settle u claim for
<br /> � ineurance benefits, Lender is authorized to collect and applt• the insurance proceeds at Lender's option either to
<br /> f restoration or repair of t6e Property or to the sums secured b}' tliis \fortgage.
<br /> Unlesa Lender and Borrower other�vise agree in writing, any such applicntion of proceeds to principsl shall
<br /> f not extend or postpone the due date of the monthly instaliments referred to in paragr$phs 1 and 2 hereof or change
<br /> ' the amount of such instsllments. �
<br /> � If under paragraph 18 hereof the Yroperty is acquired by Lender, nll right, title and interest of Borrower in ' ; '
<br /> � and to any insurance policies and in and to tlie proceeds tl�ereof Ito thc extent of the sums secured by this biort- ;'
<br /> ' • gsge immediately prior to such sale or ucquisitionl resultin� from damsge to tl�e Property prior to the sale or '
<br /> ? ucquieition shall pass to Lender. �
<br /> ' ; 6. PreaervaGon �d Mmaten�ce oE Property; Leaseholds; Coadominiums. 13orrower shall keep the Prop- �
<br /> : � erty in good repair und shall not permit or commit waste, impsinnent, or deterioration of the Property and shall
<br /> .j comply with t.he provisions of any lease, if this \Iortguge is on a leasehold. If this �Iortgage is on a condominium
<br /> unit, Borrower shall perform all of Borrower's obligutions under thc declar:it.ion of condominium or master deed , �
<br /> ; the by-laws and regulations of t,he condominium project and constituent documents.
<br /> 7. Protaetion of Lander's Security. If Borrower fails to perform the covenunts nnd :tigreements contained in
<br /> ' F this �4ortgage, or if any action or proceeding is commenced rvhich �naterially affects I.ender's interest in the Prop-
<br /> ' + erty, including, but not limited to, eminent doroain , insoh•ency, code enforcement , or urrangements or proceed-
<br /> ` i ings involviug a bankrupt or decedent, then Lender nt I.ender'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 /> f not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repairs. Any
<br /> ' � amounte disbursed by Lender pursuant to this paragraph i, �vitl� interest Lhereon , shall become additional indebt-
<br /> - = edness of Borrower aecured by this �Sortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> ' : � amounta shnll be payable upon notice from Lender to Borrower requesting puyment thereof, and sl�all bear inter-
<br /> ,t est from the date of disbursement at the rate stuted in the �Tote unless payment of interest at such rate would be
<br /> : i contrary to applicable law, in which event such amounts shall benr interest at the highest rate permissible by
<br /> ; � applicable Iaw. �Tothin� contained in this paragraph 7 shnll reryuire I.ender to incur any expense or do any act
<br /> ,; hereunder.
<br /> ; 8. Iaspeetion. Lender may make or cause to he madc reasonable entries upon and inspections of the Prop-
<br /> ' ' erty, provided that Lender ehall give Borroa•er notice ��rior to nnv surli in:pection specifying reasonable cause
<br /> � therefor related to Lender's interest in the Proper6p.
<br /> 9. Condemnation. The proceeds of any award or claim for dama�es, direct or consequential, in connection
<br /> with any condemnation or other taking of the Property, m• part tliereof, or for con��eyance in lieu of condemna-
<br /> � � tion, are hereby assigneci and shall be paid to Lender. °
<br /> 5� In the event of a total taking of the Property, the ��rocceds shall bc applied to the sums secured by this Mort- � .
<br /> �,:� gage, �vith the excess, if uny, paid to Borrower. In tl�e event of a partiul takifig of the Property, unless Borrower =-
<br /> and" I.ender othetwise agree in writing, there shail be spplied to tl�e suins secured by this \Iortgage such propor- „~ ,, � � .
<br /> tion of the proceeds us is equul to that proportion which the amount of the sums secured Uy this \iortgage imme-
<br /> diately prior to tlie date of aking bears to the fair market value of tlie Yroperty immediately prior to the date of ,, >t "
<br /> tsking, with the balance of-t�e proceeds paid to Bonower. v'
<br /> � If the Property is abandoned by Borrower or if ntter notice by Lender to Borrower that the condemnor offers s� �' .�
<br /> to make sn awsxd or settle n clsim foc damages, Borrow er fails to respond to Lender within 30 days of the date �' ' 4�,
<br /> ; � of such notice, Lender i5 suthorizedlo collect and apjyly the proceeds at. Lender'� option either to reatorxf.ion or - �� ;
<br /> . j repair of the Property or to the sums secured by tl�is \Iortgage.
<br /> '! Uniess Lender `and Borrower otl�envise agree in writing, any auch application of proceeds to principal shall
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