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If under paragraph 18 hereof �thc Yroperty is sold or the Property is otherwise ncquired by 7,ender, Lender . �
<br /> shall apply, no later thun immediately prior to the sale of the Property or its ucquicition by 1.ender, nny Funds
<br /> held by Lender at the time of application as a credit u�uinst tl�c sums :ecured by this v[ortga�;e.
<br /> 3. Applicatioa of Payments. Unless npplicable ln«• Providec otherwise, nll payments received by Lender
<br /> under the Note and poragrapl�s 1 nnd 2 hereof shall he applied by I.endcr fir�t in payment of nmounts pnyable to
<br /> Lender by Borrower under paragraph 2 hereaf, tlien to interest pssyablc on tlie Notc and on Future Advances, if
<br /> amy, and then to the principat of the Note nnd to tlie principal of Future Advances, if any.
<br /> 4. .Charges:,Lians. Borrower shall pay all taxes, ussesaments and other charges, finea and impositions attrib-
<br /> Q'� ut,able to 2he Property which muy attain u priority over this tiLortgage, and growid rents, i[ uny, at Lender's �
<br /> Qp option in the manner provided under psragraph 2 hereof or by Borrower making payment, when due, directly to
<br /> v--� the payee thereof: Borrower shall promptly furnisli to Lender all notices of amounts due under this paragraph,
<br /> r—( and in the event Bortower shall make payroent directly, Borrower sl�all promptly furnish to Lender receipts evi-
<br /> p dencing aucli puyments. Borrower shull promptly disctiarge any lien which Bas priority over this Vlortgage ; pro- '
<br /> � vided, that Borrower shall not be required to discl�arge any such lien so long as Borrower shall agree in writing to
<br /> r tha payment of the obligation secured by such lien in :� manner acceptable to Lender, or shull irr good faith contest
<br /> � such lien by, or defend enforcement of such lien in , legal proceedings �vhich operate to prevent the enforcement of
<br /> n the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Insuzanee. Borrower shuli keep the improvements no«• existing or herenfter erected on the Prop-
<br /> erty insured against lose by fire, hazards included within the term "extended coverage", and such other hazards as
<br /> Lender may require and in such amounts and for such periods as Lender mny require ; provided, that Lender shall
<br /> not require that the srnount of such coverage exceed tl�ut amoant of coveruge reqaired to pay ti�e sums secured 'by
<br /> this Mortgage.
<br /> The insurance carrier providing tl�e insurauce shall be chosen by Borrower subject to approval by Lender,
<br /> pravided, that such approva! shall not be unreasonably withheld. All premiums on insurttnce policies shall be paid
<br /> at Lender's option in the manner provided imder psra�rapli 2 hereof or by Borro�ver muking 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 tliereo[ shall be in form acceptable to Lender and shall include a stundard
<br /> mortgage clause in favor of snd in form acceptuble to Lender. Lender shall have the rigLt to liold the policies and
<br /> renewals thereof, and Borrower sl�ull promptly furnish to Lender all renewal notices und nll receipts of paid pre-
<br /> miums. In the event of loss, Borrower shall give procnpt notice to tlie insurance carrier and Lender, and Lender
<br /> may make proof of loss if not made promptly by Borrower.
<br /> Unleas Lender and Borrower otheravise agree in writing, insurance proceeds shall be applied to restoration or '
<br /> repair of the Property damaged, provided such restoration or repair is economicaliy feasible and the seeurity of
<br /> this Mortgage ie not thereby impaired. If such restorntion or repair is not economically feusible or if the security
<br /> of this Mortgage would be impaired, the insurance proceeds s6all 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 Botrower fails to respond '
<br /> to Lender within 30 days after notice by Lender to Borrower titat the insurance carrier offers to settle a claim for
<br /> insurance benefits, I.ender is suthorized to collect and apply the insurance proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums secured by� this �Iortgage.
<br /> Unless Lender and Borrower otherwise agree in writing, any suc}i application of proceeds to principsl shall
<br /> not extend or postpone the due date of the monthly installments referred to in psrugraphs 1 and 2 hereof or change
<br /> the amount of such installments.
<br /> If under paragraph 18 hereof the Property is acquired by Lender, xll right, title and interest of Borrower in ' '
<br /> and to any insurance policies and in nnd to the proceeds thereof (to the extent of the Kums secured by thia Mort-
<br /> gage immediately prior to such sale or acquisitionl resulting from damage to the Yroperty prior to the snle or
<br /> acquieition shall pass to Lendea
<br /> 6. Preservation �d Mmnten�ce of Pzoperty; Leaseholds; Coadomiaiums. 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 \Iortguge is on a leasehold. If this �fortgage 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 und regulations of the condominium project und constituent documents.
<br /> 7. Protectioa of Lender's Security. If Borrower fails to perform the covenants and agreements contained in
<br /> this Mortgage, or i[ any action or proceeding is commenced �vhich materially affects Lender's interest in the Prop-
<br /> erty, iacluding, but not litnited to, eminent danain, insoh•ency, code enforcement, or urrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender at I.ender's option , upon notice to Borrower, may make such
<br /> appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br /> . not limited to, disbursement of reasonable attorney's Fees and entry upon the Property to make repairs. Any
<br /> amounta disbursed by Lender pursuant to this paragrapl� 7, �vit6 interest thereon, sha❑ become additional indebt-
<br /> edness of Borrower secured by this �iortgage. Unless Borro�ver �nd Lender agree to other terms of payment, such
<br /> amounte shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall besr inter-
<br /> est from the dste of disbursement at the rate stuted in the \Tote unless payment of interest at such rate would be
<br /> contrary to applicable law, in which event such amounts shall bear interest rst the highest rate permiasible by
<br /> applicable lnw. Nothing contained in this paragraph 7 sl�aii reryuirc Lender to incur any expense or do any act
<br /> hereunder. .
<br /> 8. Inspaction. Lender may make or cause to be madc reA�onahlc entries upon and inspections of the Pmp-
<br /> erty, provided that Lender shall give Borroticer notice � �rior to an}� �uch inspection �pecifying reasonable cause
<br /> therefor related to Lender's interest in the Property.
<br /> 9. Coademaation. The proceeds ot any awarci or claim for damages, direct or consequentisl, in connection
<br /> with any. condemnation or other taking of the Yroperty, or purt thereof, or for con�•eynnce in lieu of condemna-
<br /> tioa, are hereby assigned and shall be paid to Lenden �
<br /> In the event of a total taking of the Property, the proceeds slial] be applied to the sums secured by this vIort- X„ �.
<br /> • gage, �vith the excess, if any, paid to Borrower. In the event of a psrtial taking of the Property, unless Borrower -• �r� ,,
<br /> and Leader otherwise agree in writing, there shall be applied to tl�e sums secured by this diortgnge such propor- ,;� .. :
<br /> tion oF the proeeeds as ia equsl to that proportion which tl�e amount of the sums secured by this Mortgsge imme- � " +
<br /> diately prior to the date of taking bears to the fnir inarket value ot tLe Property immediately prior to tl�e date ot J * '.
<br /> taking, witfi;the bala►ace of the proceeda paid to Borrower. ��;,: *
<br /> Ef the Property is abandoned by$orrower or if after notice by Lender to Borroaver that the condemnor offers a ' k:
<br /> to.mak� aa awstrd or settle n claim for damsge3, Borrower faiIs to respond to Lender within 30 days of the date w^' ;±`; � ,
<br /> of euah ao�icei Lender isauthorized to collect and apply the proceeds at I.ender's option eitl�er to restoration or * ,,11e `,"""
<br /> � . repair of the Propertiy or to the suuis secured Uy tliis �Iortgage. �
<br /> � Unleas Lender and Borrower :otherivise agree in writing, any such application of proceeds to principal shall
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