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<br /> � If under paragrsph 1S hereof the Property is sold or khe Property is othenvise acquirec! by Lender, Lender '
<br /> shsII apply, no later than immediately prior to the salc ot the Property or its acquisition b,y Lender, nny Funds
<br /> held by Lender ut thc time of application as a credit against thc suins secured bv this Mortgage.
<br /> 3. Applieatioa oi Paymeats. Unless applicablc law provides othenvise, all payments received by Lender
<br /> under the Note and paragrapl�s 1 and 2 hereof shall hc applied by T.ender first in payment of amounts payable to
<br /> Lender by,Borrower under Paragraph 2 hereof, then to interest puyable on ttie 1�'ote and on Future Advances, if �
<br /> any„ and then to the principal of the Note und to tl�e principal of Future Advances, it any.
<br /> � 4. Ch�qes: Liens. Borrowershall pny all taxes, assessments and other charges, fines and impositions attrib-
<br /> O ut�ble to the Property which may attain a priority over tl�is vIortguge, and ground rents, if any, at Lender's
<br /> t W option in the manner provided under paragrsph 2 hereof or by Borrower making payment, when due, directly to
<br /> � � the payee thereof. Borrower sl�sll promptly furnish to Lender alt notices of amounts due under this paragraph, `,
<br /> *-i and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi- �
<br /> c G� dencing such ,payments. Borrower shall promptly discharge any lien which has priority over this Mortgsge ; pro-
<br /> 4 � vided, thst Borrower ehall not be required to discharge any sucl� lien so long ab Borrower sh�ll agree in writing to
<br /> k �' the payment of the obligation secured by such lien in i� manner acceptable to Lender, or shall in good faith contest
<br /> ap such lienby, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of .
<br /> , t�• the Iien or forfeiture of the Property or any part tl�ereof. ,
<br /> 5. Hazard Iasuraaee. Borrower shall keep the improvements no�c existing or hereafter erected on the Prop-
<br /> erty insured against loas by fire, hazards included within the term "extended coverage", snd such other hazards as
<br /> �� Lender may require and in such amounts and for sucl� periods as Lender may require ; provided, that Lender shall r
<br /> ` not require that the amount oi such coverage exceed that amount of coverage required to pay the suma secured 'by
<br /> this Mortgage. ;'' '
<br /> The insurance csrrier providing tlie insurance shull be chosen by Borrower subject to approval by Lender,
<br /> provided, thnt such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under ��aragrapl� 2 hereof or by Borrower inaking payment, when due,
<br /> directly to the insurance carrier.
<br /> In the event any policy ia 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 i
<br /> under the terms of this Mortgage. .'
<br /> All insurance policies and renewals thereof c��all be in fonn acceptable to Lender and shall include a stsndard %
<br /> ` ; inortgage clause in favor of and in form acceptable to Lender. Lender shall havc the right to hold the policies and t`
<br /> renewals thereof, and Borrower shall promptly furnish to Lender all renewnl notices and ull receipts of paid pre-
<br /> � miums. In the event of loss, Borrower shall give prompt notice to the insurance cnrrier and Lender, and Lender 4 .
<br /> may make proof of loss if not made procnptly by Borrower.
<br /> < Unless Lender and Bonower othenvise agree in �vriting, insarance proceeds shall be applied to reatoration or
<br /> - F repair of the Property dxtmaged, provided such restoratim� or repair is economicully feasible and the security of
<br /> � this Mortgage is not thereby impaired. If such restorntion or repair is not economically feasible or if the security
<br /> � of this Mortgage would be impaired, tl�e insurance proceeds shall be applied to the sums secured by this Mortgage,
<br /> with the eaceess, if any, paid to Borrower. If the Yroperty is abancloned f>y Borrower or if Borrower fails to respond
<br /> to Lender within 30 days after notice by Lender to Borrower thut thc insurance carrier offers to settle a claim for ,
<br />� j ineurance benefits, Lender is suthorized to collect and spply the ic�surance proceeds at Lender's option either to
<br /> ? restoration or repair of the Property or to the sums secured b}• this �Lortgage. }'
<br />� � Unlesa Lender and Borrower otherwise agree in �vritivg, any such application of proceeds to principal shall
<br /> '� not extend or postpone the due date of tl�e inonthly instaliments referred to in paragraphs 1 and 2 hereof or change ;
<br />� � the amount of such installments. �
<br /> If under paragrsph 18 hereof the Property is acquired by Lender, all right, title and interest of Bormwer in ;
<br />� � and to any insurance policies and in and to the proceeds thereof (to the extent of the sums secured by this Mort-
<br /> , � gage immediately prior to such sale or ucquisition ) result.ing from damage to the Property prior to the sale or
<br /> acquieition shall pass to Lender. i
<br /> , ::j 6. Preservatioa �md Mmatea�ea of Property; Leaseholds; Condomiaiums. Borrower shall keep the Prop-
<br />` f 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 1lortgage is on a leasehold. If this �lortgsge is on a condominium
<br /> '' unit, Borrower ahall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br /> . f the by-laws and regulations of the condominium project and constituent documents.
<br /> � 7. Protectioa of Leadei s Security. If Bonower fails to perform the covenants and agreements contained in
<br /> : 'i this Mortgage, or if sny action or proceeding is commenced �vhich �naterially affects Lender's interest in the Prop-
<br /> � erty, including, but not limited to, eminent domain, insoh•ency, cade enforcement, or arrangements or proceed-
<br /> in� involving a bankrupt or decedent, then Lender at 7.ender's option , upon noticc 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 /> amounts disbursed by Lender pursuant to this paragrapl� 7, �vith interest thereon, shall become additional indebt-
<br /> ednese of Borrower secured by this �iortgage. Unless Borrower 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 besr inter-
<br /> est fzom the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br /> contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br /> - � appliceb]e law. Nothing contained in this �aragraph 7 shnll require Lender to incur any expense or do nny act
<br /> hereunder.
<br /> � 8. Iaspection. Lender muy inake or cause to hc �nadc reaFonable entries upon and inspections of the Prop-
<br /> . „� erty, provided that Lender shall give Borrower noticc prior to �uro surli inspection specifying reasonable cause
<br /> , therefor related to I.ender's interest in the Property.
<br /> ; 9. Coademnatioa. The proceeds of any award or claim for damages, direct or consequential , in connection
<br /> � � with any ;condemnation or other talang of the Property, or ��art thereof, or for conveyance in lieu of condemna-
<br /> � � tion, sre hereby assigned and shall be psid to Lender.
<br /> r `°� In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mort-
<br /> Y� > ': gage, �vith the excess, if any, paid to Borro�ver. I� the event of a partisl taking of the Property, unless Borrower `
<br />;� � and Lender otherwise agree in �vriting, there shall be applied to tl�e su�ns secured by this D4ortgage such propor-
<br />�� t' tioa of the proceeds ss is equal to that praportion which tf�e amount of the sums secured by this Mortgage imme-
<br />`�„ diately pnor to the date of takmgbears to tlie fair inarket value of tlie Property immediately prior to the date of
<br />�f. ' tsking, witt�'the ;balanCe 'of the proceeds paid to Borrower.
<br />} ,.� If.the P�perty is abandoned by Borrower or if . after notice by Lender to Borrower that the condemnar offers
<br /> :�:i . `tio .mak'e;en,sward `nr settle a claim for damagee; Borrower fails to respond to Lender within 30 days of the dste
<br /> � - � � of� �ch =notfrce; Lender is suthorized to collect 'snd sppYy>the proceeda at Lender's option either to restoration or
<br /> , t repair of,rthe Propeaty or to the eums secured by this \fortgage_
<br /> ; `Unleas I.ender and Boi�rower,otherwise agree in writing, any such application of proceeds to principnl sha❑
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