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If under paragraph 18 hereof the Property is sold or thc Property is otherwisc acquired by Ler�der, Lender f �
<br /> sholl apply, no later than immediately prior to tlic snlc of the Property� or its acquisition by I.ender, :tiny Funds
<br /> held by Lender at the time of opplication as a credit ugain�t tl�e suins secured by this J4ortgagc.
<br /> 3. Application ot Payments. Unless applicablc Ix�v �n•ovides othenvisc, all payments received by Lender
<br /> under the Note and paragraphs 1 and 2 hereof sl�nll hc ap�ilied by I.ender first in puyment of nmounts payable to
<br /> Lender by Borrower under parsgrapli 2liereof, tl�en to interest pi�yttible on tl�e Note and on Future Advnnces, if
<br /> any, and then to. the principal of the Note nnd to tl�e principal of Future Advancea, if any.
<br /> 4. Chtugea; Liens. Borrower sliall pay a71 taxes, nssessments and other charges, fines and impositions attrib-
<br /> � utpble to the Property which may attain a priority over this vlort�age, nnd ground rents, if any, at Lender's
<br /> option in the manner provided under paragraph 2 hereof or by Borro�ver makin� pnyment, �vhen due, directly to � .
<br /> the payee thereof: Bonower shall promptly furnisl� to 7,endcr alt notices of amounts due under this paragraph,
<br /> �M sad in the event Borrower shall makc payment directly, Borro«•er sl�all promptly furnish to I.ender receipts evi-
<br /> �J dencing sucl� payments. Borrower shall promptiy discharge nny lien �vhich has priority over this \-Lortgrtge ; pro-
<br /> " � r-i vided, that$orrower shall not be required to discl�ar�e any sucl� lien so long as Borrower shall agree in writing to
<br /> +--� the paym�t of the obligation aecured by sucli lien in :i inanner ncceptable to Lender, or shall in good faith contest
<br /> O sueh lien by, or defend enforcement of such lien in , legal �iroceedings wliich opernte to prevent the enforcement of
<br /> - � the lien or forfeiture of the Property or any part tliereof.
<br /> 5. $azard Insur�ee. Borrower shail keep the improvements no«• exist.ing or hereatter erected on the Prop-
<br /> � erty insured against loss by fire, huzards included within the term "extended coverage", and sucli other hrsznrds as
<br /> Lender may require and in sucl� amounts nnd for sucl� periods ns Lender may require ; provided , that Lender shall
<br /> not require thut the amount of such coversge exceed that amount of coverage required to pay the sums secured 'by
<br /> this Mortgage.
<br /> ' The insurance carrier providing the insurance sha❑ be chosen by Borrower subject to approval by Lender ;
<br /> i provided, that such approval shall not be unreasonably withheld. :111 premiums on insurance policies shall be psid
<br /> at Lender's option in the manner provided under paragraph 2 hereof or by Borro«•er 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 insarance policies and renewals thereof �hnll be in form ucceptssble to I.ender and shatl include a stundard
<br /> tnortgage clause in favor of and in for�n acceptable to Lender. Lender shull have the right to l�old the policies and
<br /> ; renewals thereof, and Borrower shall promptly furnish to Lender all rene�vul notices and all receipts of paid pre-
<br /> , � miums. In the event of loss, Borro�ver sliall gi�•e prompt notice to the insurance carrier and Lender, and Lender
<br /> , may make proof of loss if not made promptly by Bonow•er.
<br /> i Unless Lender and Borrower ot2�erwise agree in �vriting, insurance proceeds shall be applied to restoration or '
<br /> ; repsir ot the Property damaged, provided such restoration or repuir is economicslly feasible and the securitv of
<br /> � this Mortgage is not thereby impaired. If such restorntion or repair is not economically feasible or if the security
<br /> of this �fortgage would be impaired, the insurance proceeds shall bc applied to thc sums secured by this Mortgage,
<br /> � with the excess, if aay, paid to Borrower. If the Yroperty is abancloned by Borro�ver or if Borrower fails to respond
<br /> to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br /> ineurance benefits, Lender is authorized to collect. and applp the insurnnce proceeds at Lender's option either to
<br /> restorstion or repnir of the Property or to the sums secured by tl�is \fortgage.
<br /> Unless Lender and Borrower othenvise agrec in writing, any such application of proceeds to principal shaA
<br /> not extend or postpone the due date of the inonthly instAllments referred to in paragraphs 1 and 2 hereof or change
<br /> ; the amoant ot auch installments.
<br /> If under parsgrnph 18 hereof the Property is acquired by I,ender, all right, title and interest of Borrower in
<br /> � and to any insurance policies nnd in and to tl�e proceeds thcreof lto tl�e extent of tl�e sums secured by this Mort-
<br /> ., { gage immediately prior to such sale or acquisition ) resulting frmn damage to the Property prior to the sale or
<br /> ,i acquisition shall pass to Lender.
<br /> y 6. Preservation �d Mmntea�ce of Propezty; Leaseholds; Condomiaiums. Borrower shall keep the Prop-
<br /> :; erty in good repair snd shall not permit or commit �vaste, impairment, or deterioration of the Property and ahall
<br /> � comply with tlie provisions of any ]ease, if this �Iortgage is on a leasehold . If this �lortgage is on �t condominium
<br /> � unit, Borrower shail perform all of Borrower's obligations under the declnration of condominium or master deed,
<br /> ' a Lhe by-laws and regulations oi tl�e condominium project and constituent documents.
<br /> ; 7. Protectioa of Lendei s Security. If Borrower faiis to perform the covenants and agreements contained in
<br /> } this Viortgage, or if sny action or proceeding is commenced which materinlly affects Lender's interest in the Prop-
<br /> ' � erty, including, but not limited to, eininent doma�in, incoh•eticy, code enforcecnent , or arrnngements or proceed-
<br /> r ings involving a bankrupt or decedent, then Lender at I.ender's option , upon notice to Borrower, may make such
<br /> ' } appearances, disbutse such sums and take such action ns is nece�sary 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 disbursed by Lender pursuant to tl�is pamgraph 7, ��•ith interest thereon , shall become additional indebt-
<br /> ( edness of Borrower secured by this riortgage. Unless Borrower and Lender agree to other tern�s of payment, such
<br /> smounts shaI1 be payable upon notice from Lender to Borro«•er requesting payment thereof, und shal! bear inter-
<br /> ;� est from the date of diabursement at the rate stated in the Note unless payment of interest at such rate tivould be
<br /> ;� contrary to spplicable law, in which event such �mounts shatl bear interest at the highest rate permissible by
<br /> ! spplicable law. Nothing contttined in this psragraph 7 shnll require I.ender to incur any expense or do any act
<br /> hereunder.
<br /> ! 8. Iaspoction. Lender may make or cause to hc maftc reasonable entsies upon and inspections of the Prop-
<br /> '{ erty, provided that Lendet shall give Borro�•er noticc ��rior to nn}• sucl� incpection epecifving reasonable csuse
<br /> therefor related to Lender's interest in the Propert5.
<br /> '� 9r:Condemaatioa The proceecis of any awarc( or olaim for damages, direct or consequential , in connection
<br /> ',� with sny condemnation or other taking of the Yroperty, or ��art thereof, or for con��eyance in ]ieu of condemna-
<br /> tion, are hereby assigned and ahall be paid to Lender. �
<br /> In the event of a total taking of the Property, the proceed� sha11 be applied to the sums secured by this ibfort-
<br /> gage, with the exceas, if any, paid to Borro«•er. In the event of a partial tuking of the Pro crt '� " .r�.
<br /> p y, unless Borrower
<br /> and Lender otherwise agree in writing, there slisli be applied to tl�e sums secured by this �iortgage such propor- ;Y, r -� ,
<br /> - tion of the praceeds as is equal to that proportion which tlie amount of the sums secured by this Dlortgage imme- ;, .=
<br /> ; diately prior to the date of taking bears to the fair �nnrket value of the Property immediately prior to the date of J k:. "; +
<br /> ? ' tsldng, with the balance of th� proceeds peid to Borrower. �,. ;_;
<br /> • If the-Pmperty..is abandoned by Borrower or if ntter notice by Lender to Borrower that the condemnor offers
<br /> ;� to make sn award or setEle a claim for damages, Borrower fails to respond to Lender within 30 days of the date } * ' } '
<br /> of sucli noEice, Lender is authorized to collect and appIy the proceeds at I,ender's option either to restoratian or '"�'
<br /> ;s repair of.the Property or to the sums secured by ttiis \Iortgnge.
<br /> ^��- ` �uYo� :i. .. . .
<br /> ; UnIess Lender and Borrower othernise agree in writing, any such applieation of proceeda to principal shull
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