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<br /> If under paragraph 18 hereof the Pro�;erLy is sald or the Propert,y is othenvise ar.quired by Lender, Lender
<br /> shall apply, no lster tl�sn immediately prior to thc sulc of tl�c Pro�crty or its acquisition by Lender, any Funds
<br /> held by Lender a£ the time of apnlication as ss credit against tlic swns secured b�� this Viortgage.
<br /> ; 3. Apptication af Paymenls. Unless ap�lieable IRN' PTOVICIPS othern�ise, rsi! payments r•eceived by Lender
<br /> under the Note and psragrapl�s l and 2 hereof sl�all be applied by 7,ender fiist in payment of amounts payable to ` `
<br /> ' Lender,by $orrower under, i3aragrxpl� 2 l�ereof, tlien to interest payablc on the Note and on Future Advnnces, if ;"�
<br /> s any, and then to the �rincipsl of the Notc and to tlie principal of Future Advancea, if any.
<br /> 4• Cfiat4e$: Lieas- : Borrower sl�all pay all taxes, assessments and othr,r charges, fines snd imposit9ons attrib-
<br /> � utpble to the Property which muy attain a priority over tl�is vFortgage, and ground rents, if any, at Lender's
<br /> � option in the manaer provided undec psragraph 2 }iereof or by Borrower making payment, when dtae, directly to
<br /> the payee thereof. Borrotver. shall promptly turnisfi to Lender all notices of amoun[s due under tl�is paragraph,
<br /> and in the eyeat Borro�ver ahall yuake payment directly, Borron•er shall promptly furnish to Lenci¢r receipts evi- �
<br /> � deneing such payments. Borrower shall promptly discharge any lien which has priority over this Vlortgage ; pro- { s
<br /> vided, that Bormwer shall not be required to discliarge any siich lien so long as Borrower shall agree in writing to
<br /> ' ' � tha payment of the obligation seeured by such lien in .i manner ncceptable to LenJer, or shall in gaod fsith conteat
<br /> � CC3 euch lien by, pr defend enforcement of such lien in, legal proceedings wiiich operate to prevent the enforcement of
<br /> ,. � !1'J the lien or forfeiture of the Property or any part tl�ereof.
<br /> , f Ct.: S. Hazard 7asur�ee. Borrower shsll keep tl�e improvements no�c existing or hereafter ereeted on the ProP-
<br /> � *�-f erty insured against loss by fire, hazards included within the term "extended coverage", and auch otl�ei- hazards ss
<br /> i �} Lendermay require and in such amounts and for sucl� periods as Lender may require ; provided, that Lender sha21
<br /> � � not require thut the smounL of snch coversge exceed tl�at smount of coverage reqaired to pay the sums secured 'by
<br /> thia blortgage.
<br /> , i r The insurance carrier providing the insurauce shall be chosen by Borrower subject to approval hy Lender, � � �','
<br /> � op provide�, that such spprovul shall not b� ttnreasonably withheld. Al] premiums on insurance policies shall be paid
<br /> � at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making pa,yment, when due, i
<br /> d'uectIy to the insurance carrier. + n
<br /> i In the event any policy is not renewed an or before ten days of its expiration, the Lender, to protect ` f ''
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<br /> I its interest, may procure insurance on the improvements, pay the pretniums and such sum shall become
<br /> , immediateiy due and payable with interest at the rate set forth in said note until paid and shall be i � "
<br /> � secured by this Mortgage. FaiIure by Boaower to comply may, at option of Lender, constitute a default
<br /> � under the terms of this Mortgage. ; -,
<br /> All insurance policies and renewats thereof �hall be in form ncceptable to I.ender and shull include a standard ` " ' ' "
<br /> inortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to liold the policies and K R ;:
<br /> renewsls thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre- e % ` s:'
<br /> � } miums. In the event of loss, Borrower shull give procnpt notice to the insurance carrier and Lender, and Lender ' ��
<br /> 1 may make proof of loss if not made promptly by Borrower. � r ' � K'
<br /> � � s � ri
<br /> Unless Lender and Borrower otherwise agree in writing, insur3nce proceeds shalt be upplied to restoration or r �;
<br /> repair of the Property damaged, provided such re,toration ur mpair is economically feasible and the security of ' "` �`
<br /> f this Mortgage is not tl�ereby impaired. If such restoration or repair is not economically fensible or if the security � ' '"
<br /> of thia AZortgage would be impaired, the insurance �>roceeds shall be applied to the suins secured by ihis Mortgage, � �
<br /> with the exeese, if nny, p$id to Borrower. If the Yroperty is abandoned by Borrower or if Borrower fails to respond '?
<br /> to Lender within 30 days after notice by Lender to Borrower thnt the i��surnnce carrier uffers to settie a claim for k £ ,�'�
<br /> inaurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to t, ; ;
<br /> restoration or repair of the Property or to the sums secured by this \-fortgssge. , ,. .�,
<br /> Unless Lender and Borrower otherwise agree in �vriting, any such application of proceeds to principal shall F
<br /> not extend or postpone the due dnte of the mont6ly installments referred to in paragraphs 1 and 2 hereof or change y " _
<br /> j the amount of such installments_ .
<br /> } If under paragraph 18 hereof the Property is acquired by Lender, nll right, title and interest of Borrower in r ;
<br /> � and to any insurance policies and in and to the proceeds thereof (to tl�e extent of the sums secured by this Mor� `��
<br /> gage immediately prior to such sale or acquisition) resulting from damage to the Property prior to the sale or '
<br /> � acquisition shsll pass to Lender. �
<br /> 6: Preservatioa �d Mcdateaaace of Property; Leaseholds; Coadominiums. Borrower shall keep the Prop- x
<br /> erty in good repair and shall not permit or commit waste, impairment, or deteriorution of the Property and shall
<br /> comply with the provisions of nny lease, if this �Iortgage is on n leasehold. If this Mortgage is on a condominium
<br /> unit, Borrower shull perform ali of Borrower's obligations under the declaration of condominium or msster deed , { �"
<br /> the by-laws and regulations of the condominium project and constituent documents.
<br /> 7. Protection of Lender's Seeurity. If Borrower fails to perform the covenants and agreements contained in
<br /> thia VIortgage, or if any action or proceeding is commenced �vhich materially affects Lender's interest in the Prop-
<br /> � � erty, including, but not limited to, eminent domain, insoh�ency, code enforcement, or arrangements or proceed-
<br /> in� involving n bankrupt or decedent, then Lender at I.ender's option, upon notice to Borro�ver, may mske such
<br /> sppearances, disburse such sums and take such action us 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 /> smounte diabursed by Lender pursuant to this paragruph 7, with interest thereon , shall become additional indebt-
<br /> edness of Borrower secured by this �fortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> amounts shall be paysble upon notice from Lender to Borrower requesting payment thereof, sad shall bear inter-
<br /> est from the date of disbursement st 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 permissibie by
<br /> - applicable law. Nothing contained in this parsgraph 7 shnll reryuire Lender to incur any expense or do any act
<br /> s�. hereundea
<br /> 8• InspocGon. I,ender may make or cause to lic madc reaeonablc entries upon and inspections of the Prop-
<br /> "-� erty, provided thati Lender shal! give Borrower notice ��rior to nnp such incpection snecifying reasonable cause
<br /> �� therefor related td Lender's interest in the Property.
<br /> r „� 9• Condemnation. The proceeds of nny award or claim for damages, direct or consequential, in connection
<br /> with any condCmnation or other. Eaking of the Property, or part thereof, or tor conveysnce in lieu of condemna-
<br /> �;°� tion, are hereby aseigned and.shall be paid to Lender. ' �`
<br /> In the event of a tota,l taking of the Property, the proceeds ahall be applied to the sums secured by this Mort- "��"'" �
<br /> gsge, with the excesa, if any, paid to Borro�cer. In the event of a partial taking of the Property, unless Borrower "
<br /> �' snd Lender otheewise agre¢ -in writing, there shall' 6e applied to 'thc suma secured by this Mortgage such propor- I
<br /> �^� tion of theiproceeds as is equal.to. that proportion which ttie amount of the sums secured by this Mortgage imme- " t
<br /> diately prior to the date of taking bears to the fair inarket value of tlie Property immediately prior to the date of �� ; "
<br /> ¢�, tslnn8: with thd iialancevofithe proeeeds paid to Borrower. 4
<br /> r� If theProp ,etty.:is 'ubandoned by Borrower or if after notice Uy Lender to Borrower that the condemnor offers t�`;�
<br /> <<� to mske sii awatii"ox' settle a alsim for damages, Borrower fails to respond to Lender within 30 days of the date -:.`� ;r�
<br /> of�such not�ce; Lender is'authorized to collec� snd apply Lhe proceeds at Lender's option either tu restoration or
<br /> .:i repair of the Prope;ty orto the sums secured bp tl�is \iortgage.
<br /> , 'Y Unless Lender and Borrower:otherniae, agree ia writing, any such spplicstion of proceeds to principal shall
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