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<br /> If tmder paragraph 18 hereof the Propert,y is sold m• the Property is otlienvise sc,ui:cd by Lender, Lender Y I . �
<br /> shall apply, no later than immediately prior to thc snlc of tLe Pro��crty or its acquisition by Lender, any Punds
<br /> held by Lender at the time of applicution as a credit against the sums secured b}� this il4ortgage.
<br /> 3. Applicetion of Payments. Unless aPplicable ]n«� provides otherwise, all pnyments received by Lender
<br /> under the Note and paragrspl�s l and 2 hereof shnll bc npplied !>y Lender first in psyment of nmounts payable to
<br /> I.endet by $orrovrer under par�grapl� 2 i�ereof, then to interest pnynl�le on the Note and on Future Advances, if
<br /> any, und then to 'the principal of the Note ,and to tl�e principul of Future Advances, if any.
<br /> 4. Chm�ges; Liens. Barrowershull. pay all tuxes, sasessments and other charges, &nea flnd imposiEions attrib- ,
<br /> � utable to the Property which may attain a priority over this R'Ioetgage, and gmund rents, if sny, at Lender's
<br /> (; option in the msnner provided under paragra�h 2 hereof or by Bonower making payment, whei� due, directfy t�
<br /> ; � the payee thereof. Borrower shall promptly tusnisl� to Lender a! 1 notices af amounts due under this paragraph,
<br /> � snd in the event Borrower shall make payment directiy, Borrower shall promptly furnish to Lender receipts evi-
<br /> � �`' dencing sueh payments. Borrower shall Promptly disclsurge any lien which has priority over this hlortgage ; pro-
<br /> ' � vided, thatBorrower shall npt be required to discl�arge any sucl� lien so Iong as Borrower shall agree in writin� to
<br /> - ; � tihe payment of the obligation secured by sucki lien in :s manner ucceptable to Lender, or shall 5n good fnith contest
<br /> ; a: = such lien by, or defend enforcen�ent of sucli lien in, legal proceedings wliich operate to prevent the entorcement of
<br /> � � tbe lien or forfeiture,of the Property or any ��ai�t thereoL
<br /> � f h 5. Fiazard Insuramce. Borrower shall kee�� tlie i�nprovements no�v existing or hereufter erected on the Prop-
<br /> `' erty insured against loss by fire, hazards included �vithin the term "extended coverage", snd such other hazards es
<br /> ; Lender may require �nd in such amounts and for such periods as Lender mny require ; provided , thst Lender shall
<br /> ; not require that the amount of such coverage exceed that amount of r,over�ge required to pay the sums secured 'by
<br /> � this Mortgage.
<br /> � The insurance carrier providing the insurance shall be chosen by Borrower subject to appruvnl by Lender,
<br /> provided, that such approva! shall not be unrensonably withheld. All premiums on insurnnce poticies shall be paid
<br /> j at Lender's option in the manner provided undei• para�raph 2 hereot or by Borrower muking payment, when due,
<br /> directly to the insuraace carrier.
<br /> In the event any policy is not renewed on ar before ten days of its expiration, the Lender, to protect
<br /> F its interest, msy procure insurance on the improvements, pay the premiums and such surn shall become
<br /> immediately due and payable with interest at the rate set forth in said note until paid and skall be
<br /> - � secured by this Mortgage. Failure hy Bormwer to compiy may, at option of Lender, constitute a deFauYt
<br /> under the terms of this Mortgage.
<br /> ' " All insurance policiea and renewals thereof ehall Ue in fumi acceptable to Lender nnd shall include a standard
<br /> . # inortgage clsuse in favor of und in form acceptable to Lender. Lender shnli have the right to l�old the policies and
<br /> ` renewals thereof, and Borrower Shall promptly furnish to Lender all renewal notices and nll receipts of paid pre-
<br /> ; miums. In the event of loss, Borrower shall give prampt notice to the insurance cs►rrier snd Lender, an3 Lender
<br /> imay make proof of loss if not made promptly by Sorrower.
<br /> Unless Lender und Borrower other�vise agree in �vriting, insurance proceeds shap be upplied to restoration or
<br /> ' t repair of the Property damaged, provided such restorntion or repair is economicully feasible and the security nf
<br /> ; � this Vlortgsge is not thereby impaired. If such restorntion or repair is not economically fensible or if the security j
<br /> Y of this R'Iortgage would be impaired, the insnrance proceeds sl�all l�e appiied io the sums secured by thia Mortgage,
<br /> -_ ; with the excess, it any, paid to Borrower. If the Property is abandoned by Borrower or if $orrower tails to respond :
<br /> � to Lender within 30 days ufter notice hy Le:�der to Borrower tl�at thc insurance cnrrier o$ers to settle a claun for ,��;.
<br /> f inenrance benefite, Lender 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 tl�is \Iortgage.
<br /> Unless Lender and Bonower othernise agree in tvriting, any such Application of proceeds to principsl shall
<br /> not estend or postpone the due date of the montlily instsllments referred to in paragraphs 1 and 2 hereof or change ; ,, ;
<br /> � the amount ot such installments. . ,
<br /> `� If under paragraph 18 hereof the Property is acquired by Lender, nll right, title and interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds tl�ereof ( to the extent of the sums secured by this Mort-
<br /> fi gage immediately prior to such sale or acquisition ) resulting frorn damage to the Property prior to the sale or
<br /> t sequieition sball pass to Lender. k�
<br /> � 6. Preservation �d Mmateacmee of Pzoperty; Leaseholds; Condominiums. Borrower shssll keep the Prop-
<br /> � erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br /> r comply with t.he provisions of any lease, if this �4ortguge is on s leasehold. If this Mortgage is on u condominium
<br /> � unit, Borrower shall perform sil of Borrower's obligations under the declarsstion of condominium or master deed,
<br /> the by-laws and regulations of the condominium project and constituent documents.
<br /> 7. Proteetion of Lendei s Seaurity. If Borrower fails to perform the covenants and agreements contained in
<br /> � this NIortgage, or if any action or proceedin� is commenced which materially affects Lender's interest in the Prop-
<br /> � erty, including, but not limited to, eminent domain, insol�•ency, code enfarcement, or arrangements or proceed-
<br /> � 3 ings involving a bankrupt or decedent, then Lender at Z.ender's option, upon notice to Borro�ver, may make such
<br /> appearances, disburse such sums snd take suct� action as ie necessary to protect Lender's interest, including, but
<br /> • f not limited to, diabursement of reaeonabie attorney's fees and entry upon the Property to make repairs. Any
<br /> amounte disbursed by Lender pursuant to this paragraph 7, �vitl� 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 /> � smouats shall be paysble upon notice from Lender to Borrower requestin� payment thereof, and shall bear inter
<br /> est from the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br /> t contrsry to applicabie law, in which event such amounts shall bear interest at the higheat rate permisaibie by
<br /> i applicable law. Notl�ing contained in this paragraph 7 sl�nll reryuire Lender to incur any expense or do any nct
<br /> � hereunder.
<br /> 8. Iaspaetion. Lender may make or cauee to t�c �nade reasonable entries upon and inspections of the Prop-
<br /> ierty, pcovided that Lender sl�all give Bortower notice �n•ior to nny �uch inspection specifying reasonable cavse
<br /> 5 therefor relsted to Lender's interest in the Property.
<br /> ; 9. Condemaation. The proceeds of uny award or claim for damages, direct or consequential, in connection
<br /> with any condemnstion or other taking of the Property , or part thereof, or for conveyance in lieu of 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 shall I�e applied to the sums secured by this Mort- ; .
<br /> 4 gage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower ._ x , ,,
<br /> a;,] and �Lender, otherwise agree in writing, tl�ere shall be applied to the aums secured by this �Iortgsge such propor- :,�' ;
<br /> tion of the proceeds as is equal to that proportion which the umount of the sums secured by this 1VIortgage imme- ;r ,"`
<br /> aiately prior to the date of taking bears to the fair cnarket value of tLe Property immediately prior to the date of I " �
<br /> " � taking, with the balance of;the proceeds paid toBorrower. ��� °
<br /> " If theiProperty:is abandoned by Bonower or if xfter notice by Lender to Borrower that the condemnor offers � ' �
<br /> `� ' : � ,
<br /> �� ta mske.an award or'settle a claim for damages, Borrower fails to respond to Lender within 30 dsys of the date � �� «;:. �
<br /> of 9uc}i notice Lender is`suthorized fo collect and a �l the �roceeds at Lender's o tion either to restoration or � ' ' "` f
<br /> ;�� . � .. _ , , P1 Y I P
<br /> ..:. . . ,r�.;. ;�.. .
<br /> ,. � repair of the Property or to the sume secured- by this \fort.gage.
<br /> •� ,� Unless Lender-and- Borrower othernise agree in �vriting, any auch application of proceeds to principal shall
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