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<br /> If under paragraph 18 hereof thc Property is sold or the Property is othenvise acquired by T,ender, Lender
<br /> shall apply, no lster thnn immediately prior to the sale of tlie Property or its ucquisition by Lender, �ny Funds
<br /> held by Lender at the time of application as a credit against the suins secumd by this Mortgnge.
<br /> 3. Application of Payments. Unless uppliceblc la«• provides othenvise, ull payments received by Lender
<br /> under the Note and paragrapl�s 1 and 2 hereof shall bc applied by Lender first in payment ot atnounts payable to
<br /> Lender by Borrower under paragrapl� 2 bereof, tl�en to interest pnysblc on the Note and on Futurc Advances, if
<br /> ` any, and thea to the principnl of the Note und to the prinr_ipnl of Future Advances, if any. �
<br /> ; 4. Charges; Liens. Borrower shull pay all taxes, assessmenta und other chsrges, fines and impositions attrib- `
<br /> , � utpble to the Froperty which may attain a priority over this viortgage, and ground rents, if any, at Lender's F
<br /> ' " � option in the manner provided under paregraph 2 hereoF or by Borro�ver making payment, when due, directly to
<br /> ;;� e� the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due imder this paragraph ,
<br /> ' i �{ and in the event Borrower shsll innkc payment directly, Borrower sl�ull promptly furnish to Lender receipts evi-
<br /> � p dencing such payments. Borrower shall promptly discliarge any lien which has priority over this �4ortgage ; pro- ;
<br /> :z � vided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to %
<br /> I � the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest ;
<br /> auch lien by, or defend enforcement of sucl� lien in, legal proceedings whicli operate to prevent the en£orcement of
<br /> i � the lien or forfeiture of the Property or any part thereof. ,
<br /> � 5. Hazard lnsurmnee. Borrower shall keep the improvements no�v existing or heresfter 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 uinounts and for sucli periods as Lender may require ; provided , thut Lender shsll '
<br /> � not require thnt the amount of such coverage exceed that amount of coverage required to pny the sums secured 'by '
<br /> } this Mortgage.
<br /> � The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender ;
<br /> provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shrsll be paid
<br /> `j at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br /> directly to the insurance carrier.
<br /> `i In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br /> j its interest, may procure insurance on the improvements, pay the premiums and such sum shall become ;
<br /> immediately due and payable Kzth interest at the rate set forth in said note until paid and shall be '
<br /> i 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 /> ,j All insurance policies and rene�+-als thereof shall be in form acceptable to Lender �tnd shall include a standard !
<br /> � martgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br /> ; renewals thereof, and Borrower shall promptly furnisl� to Lender All renewul notices and all receipts of paid pre-
<br /> � miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier snd Lender, and Lender
<br /> � may make proof of loss if not made promptly by Borrower.
<br /> � Unleas Lender and Borrower otherwise ugree in writing, insurance proceeds shall be applied to restoration or
<br /> � repair of the Property damaged, provided such restorntion or repair is economically feasible and the security of
<br /> � this Mortgage is not thereby impaired. If such restoration or repAir is not ecouomicnlly feasible or if the security
<br /> of this �4ortgage would be impaired, the insurance ��roceeds shall be applied to the sums secured by this Mortgage,
<br /> with the excess, if any, paid to Borrower. If the Yropet�ty is abandoned by Borrower or if Borrower fails to respond p
<br /> y to Lender within 30 days after notice by Lender to Borrower tliut the insurance carrier offers to settle a claim for
<br /> � inaurance benefits, I.ender is authorized 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 Uy this \•iortgage. '
<br /> Unless Lender and Borrower otherwise agree in �vriting, any such applicntion of proceeds to principal shall
<br /> ., not extend or postpone the due dnte of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of such installments.
<br /> � If under paragraph 18 hereof the Yroperty is scquired by Lender, flll right, title and interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds tliereof ( to tlie extent of the sums secured by this Mort-
<br /> gage immediately prior to such sale or acquisition ) resulting from dninage to the Property prior to the sale or
<br /> acquisition shall pass to Lender.
<br /> 6. Preservation �d Mmaten�ee of Property; Leaseholds; Condomiaiums. Borrower shoil keep the Prop-
<br /> erty in good repair and ahall not permit or commit waste, impairment, or deteriorution of the Property and shall
<br /> comply with the provisions of any lease, if this \4ortgnge is on a leasehold. If this VIortgage is on u condominium
<br /> unit, Borrower shsll perform all of Borrower's obligations under the declaration of condominium or master deed,
<br /> the by-lawa and regulations" of the condominium project and constituent documents.
<br /> � 7. Proteetioa of Leader's Secuzity. If Borrower fuils to perform the covenants and agreements contained in
<br /> this ylortgage, or if any action or proceeding is commenced �vhicli materially affects Lender's interest in the Prop-
<br /> erty, including, but not limited to, e�ninent domain , insolvency, code enforcement, or arrungements or proceed-
<br /> � inge involving a bsnkrupt or decedent, then Lender st I.ender's option , upon notice to Borrower, may make such -
<br /> „� • appearances, disburse sucl� surns 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 /> ) amounte disbursed by Lender pursuant to this paragraph 7, witl� interest thereon, shall become additional indebt-
<br /> � edness of Borrower secured by this liortgage. Unless Borro�ver and Lender agree to other terms of payment, such
<br /> � amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br /> eat from the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br /> contrsry to applicable law, in which event such amounts shall bear interest at the higheat rate permiesible by
<br /> applicable law. Nothing contained in this paragraph 7 shnll require Lender to incur any expense or do any act
<br /> hereunder.
<br /> S. Inspection. Lender msy make or cause to be mndc rea�onable entries upon and inspections of the Prop-
<br /> erty, pmvide�i thut Lender shsll gi�•e Borrow•er notice �.rior to unc such inspeetion �pecifying reasonable cause
<br /> therefor related to Lender's interest in the Property.
<br /> 9. Coademaation. The proceeds of any acva "rd or claim for damages, direct or consequential , in connection
<br /> with sny condemnation or other taking of the Pro��erty, or part thercof, or for con�•eyance in lieu o[ condemna-
<br /> tion; sre hereby assigned and shall be paid to Lender.
<br /> In the event of a total taking of the Property, the proceeds slisll be applied to the sums secured by this Mort- � �
<br /> gage, with the excesa, if sny, psid to Borrower. In the event of a partisl taking of the Property, unless Borrower �
<br /> and Lender otherwise agree in writing, tfiere sliall be applied to thc sums secured by this Alortgage such propor
<br /> tion of-the .proceeds as is equsl to that proportion which the smount of the sums aecured by this Mortgage imme-
<br /> diatelypriorto the date of taking:beare to the fair insrket value of tlie Property immediately prior to the dste of
<br /> takiag, with'the b�ance df'the;proceeds paid to Borrower.
<br /> I�the'Property is abandoned by Borrawerorif after notice by Lender to Borrower that the eondemnor offers
<br /> to ms}ie'sti'sw'atd"or settle a c3sim for damages, Borrower fails to respond to Lender within 30 days of t.he date
<br /> of,auch notice, I.ender is authori2ed to' collect and spply' the proceeds at Lender's option either to restoration or
<br />� zepsir of the Property or to the aums secured by tliis liortgage.
<br /> 'T3nless Lender and Borrower othenviae agree in �vriting, any such application of proceeds to principal shall
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