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<br /> If under paragraph 18 hereof the Property is sold or the Yropertv is othera•ise acquired by I.ender, Lender '
<br /> shall apply, no later thnn immediately prior to thc salc of tl�e Property or its acquisition by Lender, any Funds
<br /> held by Lender at the time oF application as a credit uguinst thc sums �ecured h�• this vtortgnga
<br /> 3. Applieation of Payments. Unless applicable ]n�c provide� othenvise, all payments received by Lender
<br /> under tl�e Note nnd parngraphs 1 and 2 hereof shull hc applicd by I.ender first in payinent of ainounts payable to
<br /> Lender by Borrower under paragraNti 2 hereof, theu to interest pnyable on the Note and on Future Advances, if
<br /> any, and then to the principal of the Note and to the principal of Future Advances, if nny_
<br /> 4. Charges; Lieas. Borrower shall pny all taxes, assess�nents and ather charges, fines and impositions attrib-
<br /> ' � utpble to the Property which mssy attain 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 making payment, when due, directly to
<br /> ' i the payee thereof. Borrower ahall promptly furnish to Lender nll notices of amounts due under this paragraph ,
<br /> and in the event Borrower shall makc payment directly, Borrowcr shall promptly furnish to Lender receipts evi-
<br /> � dencing sucli payments. Borrower shsll promptly disclzarge any lien which has priority over this viortgsge ; pro-
<br /> � yided, Lhat Borrower shall not be required to discharge any such lien so ]ong as Borrower shnll agree in writing to
<br /> the payment of the obligation secured by such lien in n �nanner acceptable to Lender, or shatt in �ood faith contest
<br /> '�' auch lien by, or defend enforcement of such lien in , legal proceedings �vhich operate to pre�•ent the enForcement of
<br /> '� the lien or forfeiture of the Property or any part thereof.
<br /> � S. Hazazd lnsuraace. Borrower chall keep the i�nproveenents no�v existing or hereufter erected on the Prop-
<br /> `� erty insured sgsinst loss by fire, hazards included �vithin the term "extended covernge", and such other haznrds as
<br /> Lender may require und in such amounts and for sucl� periods as Lender may require ; provided, that Lender shsll
<br /> � not require that the amount of such coveragc exceed tl�at amount of cuverage required to pay the sums secured 'by
<br /> 0^O this Mortgage.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approvnl by Lender ;
<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 paragrapli 2 hereof or hy Borrower making payment, when due,
<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 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 shall be in fonn acceptable to Lender and shnll include n standard
<br /> inortgage clause in favor of and in forcn aceeptable to Lender. I.ender shall have the right to liold the policies nnd
<br /> renewals thereof, and Borrower shall promptly furnish to Lender all renewttl 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 /> may make proof of loss if not made promptly by Borrower.
<br /> r Unless Lender and Borrower otl�ercvise agree in writing, insurance proceeds shall be applied to restoration or
<br /> repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br /> this Vlortgage is not thereby impaired . If such restorntion or repair is not economically feasibie or it the security
<br /> of this 1-iortgage would be impaired, the insurance proceeds sl�all be applied to the sums secured by this Mortgage,
<br /> ; with the excess, if any, paid to Borrower. If the Yroperty is abandoned by Borrower or iF Borrower fails to respond
<br /> to Lender within 30 days siter notice by Lender to Borrower thnt the insurance carrier offers to settle a claim for
<br /> � insurance 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 tLis �Iortgage.
<br /> ' ; Unless Lender and Borrower othenvise agree in writing, an�• such application of proceeds to principal shall
<br /> not extend or postpone the due dste of the monthly instaltments referred to in paragraphs 1 and 2 hereof or chenge
<br /> ; the amount of such installments.
<br /> If under paragraph 18 hereof the Yroperty is scquired by Lender, nlI right, title and interest of Borrower in
<br /> { and to any insurance policies and in and to the proceeds tl�ereof (to the extent of the sums secured by this lblort-
<br /> ; gage immediately prior to such sale or acquisition ) resulting from damage to the Property prior to the sale or
<br /> ' acquieition shall pass to Lender.
<br /> 6. Preservation cmd Mmatea�ce of Property; Leaseholds: Condomiaiums. Borrower shall keep the Prop-
<br /> erty in good repair and ehall not permit or commit w:tste, impairment, or deterioration of the Property and shall
<br /> ' comply with the provisions of any lease, if this �Iortgage is o�i a leasehold . If this \fortgage is .on a condominium
<br /> i unit, Borrower shall perform all of Borrower's obligations under the declaration of condominium or master deed ,
<br /> the by-Iaws and regulations of the condominium project nnd constituent documents.
<br /> ; 7. Proteetion of Lendez's Security. If Borrower fuils to perform the covenants und agreeroents contained in
<br /> � this Mortgage, or if any action or proceeding is commenced �vhicl� materially affects Lender's interest in the Prop-
<br /> erty, including, but not limited to, eminent domain, insol�•ency, code enforcement , or arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender ut Lender'� option, upon notice to Borro�ver, may make such
<br /> ', appearances, disburse such sums and take such uction as is necessary to protect Lenders interest, inc]uding, but -
<br /> not limited to, disbursement of reasonable attorney's fees and entry upon the Yroperty to make repairs. Any
<br /> ' ? amounts diabursed by Lender pursuant to this puragraph 7, �vitl� interest thereon , shall become additional indebt-
<br /> edness of Bonower secured by this �iortgage. Unless Borrower and Lender ngrec to other terms of payment, such
<br /> ?; � amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall besr inter-
<br /> est from the date of disbursement at the rate stated in the Note unless payment of interest st such rate would be
<br /> ' ; contrary to applicable law, in which event such xmounts shail bear interest nt the highest rate permissible by
<br /> applicable law. Nothing contained in this pnragrap6 7 shnll mquire I.ender to incur any expense or do any act
<br /> ,y hereunder.
<br /> ' ,� 8. 7aspoctioa. Lender may make or cau<e to I�e �nndc reasonable entries upon and incpections of the Prop-
<br /> erty, provided that Lender shall give Borrower noticc ��rim• to nnp s»ch in<pect.ion �pecifying reasonable cause
<br /> therefor related to Lender's interest in the Property.
<br /> ' 9. Condemnation. The proceeds of any a�vard or clnim for damages, direct or consequentisl , in connection
<br /> ' 1 with any condemnation or other taking of the Property . or part thereof, or for can��eyance in lieu of condemna- �
<br /> � tion, are hereby assigned and shall be paid to Lender.
<br /> # In the event of s total taking of the Property, the proceeds sl�all be applied to the sums secured by this Mort- _
<br /> gsge, tivith the excess, if any, psid to Borro�ver. In tlie event of a partiat taking of the Property, unless Bonower 7
<br /> � . and Lender otherwise agree in writing, there sliall be applied to the sums secured by this vlortgage such propor- : � .
<br /> � tion of the proceeds as is equsl to that proportion which tl�e amount of the sums secured by this i�Iortgage imme- � „ '`
<br /> # diately prior to the date of .taking bears to the fair market value of the Property immediately prior to the date of wi '.;
<br /> � taking, with the;lialance'o£the proceeds paid to Borrowez. i ":
<br /> = f If the Property is abandoned by Borrower or if after notice by Lender to Borro�ver that the condemnor offers y , . �
<br /> ? Eo make'an awsrd oYsettle s claim for damages, Borrower fails to respond to Lender within 30 days of the date ; ,,s �`; ;;
<br /> ` .; of'.such notice, Lender is suthorized to collect and apl�ly tlie proceeds xt. i,ender'c ��tion cither to restoration or ` - "
<br /> , ';;� repair of the Prope;ty or to the sums secured by this \Iortgage.
<br /> IInlees Lender and Borrower otherwise sgree in writing, any such spplication of proceede to principal shall
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