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<br /> If under paragraph 18 hereof thc Property is sold or thc Yroperty is other�vise acquired by 7,ender, I.ender
<br /> shall apply, no later thnn iinmediately prior to thc salc of tl�c Propert.y or its acquisition by Lender, any Funds
<br /> t�eld by Lender ut the timc of app)ication as a cmdit a�ainst tlic ,ums secured by this �Iortgage.
<br /> 3. Applieatioa of Payments. Unless applicnblc lnw• provide� otherwise, nll payments received by Lender
<br /> under the Note and paragrapLs 1 anci 2 hereof sl�all bc applied hy 7,ender first in payment of amounts payable to
<br /> Lender by Borrower under paragrapl� 2 liereof, tlren to interest puyable on the Note and on Future Advnnces, if
<br /> any, and then to the principal of the Note nnd to Glie principal of Future Advsances, if any.
<br /> , � , 4- Ch�Ses: Liens• Borrower sl�ull pay all taxes, assessments and other charges, finea and impositions attrib-
<br /> utgble to the Property which may attain a priority over tl�is �4ortgage, and ground rents, if uny, at Lender's
<br /> � option in the msnner provided under paragraph 2 hereof or hy Borrower mnking payment, when dve, directly to
<br /> ; � the payee thereof. Borrower shall promptly furnisl� to I,ender all notices of amounts due under this parsgraph,
<br /> r-1
<br /> and in the. event Borrower shall make payment directly, Borroa•cr shull promptly (urnish to t,ender receipts evi-
<br /> � ,r-{ dencing such pnyments. Borrower shall promptly discl�urge any lien which has priority over thia \Zortgsge ; pro-
<br /> p vided, that Borrower shal2 not be required to discliarge uny sucli lien so ]ong as Borrower shall agree in writing to
<br /> : � the payment of the obligation secured by such lien in :t manner acceptable to Lender, or shall in good faith contest
<br /> 1 such lien by, or defend enforcement of suct2 lien in , legal ��roceedings �vhich operate to prevent the eniorcement of
<br /> � the lien or forfeiture of the Property or any part t Lereof.
<br /> � 5. Hazard Insuraace. Borrower shall keep tLc impro��ements no«� existing or hereatter erected on the Prop-
<br /> erty insured sgainst loss by fire, hazards included within the term "extended covernge", 1nd such other hazards as
<br /> Lender may require nnd in such amounts nnd for such pe��ods ;is I,ender muy require ; pro�•ided, that Lender ahall
<br /> not require tl�at the nmount of such coverage exceed t6aL a:nourit. of coverage required to pay the sums secured 'by
<br /> this Mortgage.
<br /> The insurance carrier providing the insurance shall be ck�osen by Borro�ver subject to approval by Lender :
<br /> provided , that such approval shall not be unreasonably withheld. All premiums on insurssnce policies shall be paid
<br /> at Lender's option in the manner provided under parugraph 2 hereof or hy Borro�ver 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 Bonower to comply may, at option of Lender, constitute a default
<br /> under the terms of this Mortgage.
<br /> AIl insurance policies and rene�vAls tt�ereof shall be in fonn ncceptable to Lender and sLall include n standard
<br /> �nortgage clause in favor of and in form acceptable to Lender. I.endur shall have thc right to hold the policies and
<br /> renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br /> miums. In the event of loss, Borrower shnll give prompt notice to the insurance carrier and Lender, and Lender
<br /> may make proof of loss if not made promptly by Borrower. -
<br /> Unless Lender and Borrower othenvise agree in writing, insw•ance proceeds shall be applied to restoration or
<br /> repair of the Property dnmaged, provided such restoration or rept�ir is econo�nicnlly feasible find the security of
<br /> thie VIortgage is not thereby impaired. If such restorntion or repair is not economicnlly feasible or if the security
<br /> � of this \Iortgage would be impaired, tl3e insurnnce proceeds shall bc applied to the sums securecl by this Martgage, � ;
<br /> � with the eaccess, if uny, psid to Borrower. Ii the Yroperty is abandoned hy Borrower or if Borrower fails to respond
<br /> $ to Lender within 30 days after notice by Lender to Borrower that the insurance cnrrier offers to settle u claim for
<br /> j inaurance benefits, Lender is suthorized to colleci and apply t.he insurance proceeds at Lender's option either to
<br /> � reatoratioa or ;epair of the Property or to the sums secured by this �fortgage.
<br /> s Unlese Lender and Borrower othenvise agree in writing, any such application of proceeds to principa! sha11
<br /> ; not extend or postpone the due date of the monthly instailments reterred to in paragraphs 1 and 2 hereof or change ` '
<br /> F the amount of such installments.
<br /> y; If under paragraph 18 hereof the Property is acquired by Lender, atl right, title and interest of Borrower in 'k
<br /> and to any insurance policies and in and to the proceeds tl�ereof (to tlic extent of the sums secured by this Mort-
<br /> q gsge immediaLely prior to such sale or acquisition ) result.ing from dsmage to the Property prior to the sale or
<br /> acquiaition shall pass to Lender_
<br /> $ 6. Preservatioa �d Mmaten�ee ot Property; Leaseholds; Coadominivass, Borrower shall keep the Prop-
<br /> erty in good repair and shnll not permit or commit wnste, impairment, or deterioration oE the Property and shall
<br /> ` eomply with the provisions of any lease, if this \fortguge is on a leasehold. If this �Iort�uge is on a condominium
<br /> unit, Borrower shall perform all of Borro�ver's oUligations uncler the declaration of condominium or master deed ,
<br /> � the by-Iaws and regulations of the condominium project and constituent documents.
<br /> ' 7• Proteetion of Lendez's Security. If Borroceer inils to perform the covenants and ngreements contained in
<br /> ' this Mortgage, or if any action or proceeding is commenced �vhich materially affects I.ender's interest in the Prop-
<br /> � erty, including, Uut not ]imited to, eminent domnin , insol�•ency, code enforcement, or rxrrangements or proceed-
<br /> inBs involving n bankrupt or decedent, then Lender at Lender'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 /> � ' not limited to, diabursement of reasonable attorney 's fees and entry upon the Property to make repairs. Any
<br /> ,�� amounts disUursed by Lender pursuant to this paragraph 7, «•itl� interest thereon, sha❑ become additional indebt-
<br /> ednesa of Bonower secured by this �lortgsge. Unless Borro�ver and Lender agree to other tenns of payment, such
<br /> ? amounts ahall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br /> i eet from the date of diabursement at the rate stated in the Note unless payment of interest at such rate would be
<br /> t contrary to applicable law, in which event such amounts shall bear interest at the highest rate permiasible by
<br /> -. } applicable law_ 1Vothing contained in this paragrnph 7 shall requirc Lender to incur t�.ny expense or do any act
<br /> 1 hereunder.
<br /> ? 8- 7aspeetion. Lender may make or cause to !ic madc reaconnblc entries upon and inspections of the Prop-
<br /> � erty, provided that Lender �hal! give Botrow•er noticc �� rior tu any such inspection �necifying reasonable cause
<br /> therefor mlated to I,ender a interest in the Property.
<br /> ; 8- CendemAation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br /> = with any condemnation or other taking of the Yropeny, or pan tl�creof, or for conveyance in lieu of condemna-
<br /> � Lion, are hereby ussigned and shall be paid to Lender.
<br /> ' � In the event of u tota! taking of the Property, the proceeds shall be applied to the sums secured by this riort- �L � � - `
<br /> ,� gage, �vith the excess,: if any, paid to Borro�ver. In tlie event of a ��artisl tnking of the Property, unless Borrower - ; :�
<br /> and Lender otheravise agree in writing, there shall be applied to tl�e suins secured b y this �ior tgage suc h propor- � ;3 : �
<br /> tion of theproceeds as. is equal to that proportion which tlie amount of the sums secured by thia Mortgage imme-
<br /> '' diatel y p , �; ,.4,�
<br /> y prior to the date of t'B,king bears to tl�e fair market value of the Property immediatel nor to the date of F;�
<br /> talnng, witti tt�e bnlance of'Lhe proceeda puid to Borrower.
<br /> ,; If the Property:,is�sbandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers � °' ` • " �
<br /> to make an awa;rd or settie n ctaim for damsges; Bonower fails to respond to Lender within 30 days of the date . *� '''�`p�
<br /> � of sacH'notiee, F;ender is authorized to collect nnd-ap2>ly the proceede at Lender's option eitl�er to restoration or
<br /> ", repsir of "the Property or to the sums aecured by tl�is \Iortgage.
<br /> , � 'Unlese Lender and Borrower othenvise agree in writing, any such appliastion of proceeds to principal shall
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