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<br /> If under �>ar3graph IS hereof ihe Property i, sold or the I'roperiy is oihern•i,e acquired by T.ender, I.ender
<br /> shall apply, no later tl�nn immediately prior to the �alc of the Property- or its acquisition by Lender, any Funds
<br /> ' held by Lender st the tiine of npplictLtion as a crcdit agninst tl�c siuus secured by tliis vlori�age.
<br /> 3. Application of Payments. Unless applicnhlr l��c provides otl�erwise, all payments received by Lender
<br /> uncier ine ivoie und paragrapLs I an�i 2 iiereoi siiaii i>e upplied iiy l,enrier nrsc in payment oi amouncs puyaDIe to
<br /> Lender by Borrower under paragraph 2 hereof, then to interest puynbic on t.he Note un�l on Future �ldvances, if
<br /> any, and then to the principal of the Note and to tl�e prineipai of Tuture Advances, i( any.
<br /> �'. 4r Ch�ges; Liens. Borrower shull pay all taxes, a.ssessments nnd otl�er charges, fines and impositions attrib-
<br /> , utable to the Property which may 4ttain s priority over this �Iortgtige, and ground rents, if any, at Lender's
<br /> opt4on in the manner provided under ��aragraph 2 hereof or by Borro«•er making payment, when 3ue, directly to
<br /> � the payee thereof. Borrower ahall promptly furnish to Lender all notices of umounts due under tUis paragraph,
<br /> � and in the event Borrower shall makc payment ciirectly, Borro�ccr shall promptly furnish to Lender receipts evi-
<br /> � dencing sucli payments. Borrower shall promptly discharge any lien which lias priority over this J4ortguge ; pro-
<br /> � vided, that Borrower shsll not be required to dischar�e snp <u�li lien so long ss Borro�ver shnll agree xn �ti�riting to
<br /> }. � the payment ot the obligation secured Uy sucti lien in :i �nnnner acceptaUle to Lender, or c}�A,11 in good faith contest
<br /> � auch lien by, or defend enforcement of sucl� lien in, legal proccedings which operate to prevent the enforcement of
<br /> ! the lien or forfeiture of the' Property or �ny part thereof.
<br /> � 5. Hazazd Insuranee. Borrower �hall keep tlic iroprovements no«• existin� or hereafter erected on the Prop-
<br /> ' � erty insured against loss by fire, haznrds included tvithin tl�e term "e�:tet�ded covernge", and such other l�azards as
<br /> ` Lender may require nnd in such amounfs and for sucL periods as Lender muy requirc ; r�rov5ded , thnL Lender shall
<br /> not require that the amount of such coverage exceed thnt nmount of coverage required to pay tlie sums secured 'by
<br /> ^ = this Mortgage.
<br /> � The insurance carrier providing thc insuraucc shall be chosen by Borrower subject to approval by Lender ;
<br /> provided, that such npproval shull not be unreasoneblp withheld. Al! premiums on insurance policies shali Ue paid
<br /> � at Lender's option in the manner provided under paragrapL 2 l�ereof or by Borrower mraking payment, when due,
<br /> directly to the insurance carrier. ,
<br /> ' y 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 naid and shall he
<br /> � r 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 nnd renewals thereof �Lnll be in forin ncceptable to I.ender and shnl! include a standard
<br /> mortgage clause in favor of and in form ncceptable to Lender. I.ender shall havc ti�e right to hold the policies and
<br /> ; renewals thereof, and Borrower shall promptly furnisli to Lender all rene�vnl noticr.s and all receipts o[ paid pre- �
<br /> , � miums. In the event of loss, Borrower shall gi�•e prmnpt notice fo the insurance currier and Lender, and Lender `
<br /> msy make proof of loss if not made promptly by Borro«�er.
<br /> - Unless Lender and Borrower otl�er�vise ugree in writing, insurance proceeds shali be npplied to restoration or
<br /> ; repair of the Property dumaged, provideci such restoration or repair is economicaliy feasible and the security of i
<br /> � this Vlortgage is not thereby impaired. If such restorntion or repair is not economical(y feasible or if the security � -
<br /> � - of this Vlortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, xk�
<br /> ' � with the excess, if any, psid to Borrower. If the Yroperty is abandoned by Borrower or if Borrower fnils to respond �o'�.
<br /> � to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle n claim for � �
<br /> � inaurance benefits, Lender is uuthorized to collect and apply tl�e insurance proceeds at Lender's option either to �� A"
<br /> restoration or repair of 6Lr Property or to tl�e �um� �ecured by this \Iorigage. „�;
<br /> ' Unless Lender and Bonower othenvise ngree in �vriting, any such applicution of proceeds to principal shall
<br /> � not extend or postpone the due date of the monthl0 installments referred to in paragraphs 1 and 2 hereof or change . �"
<br /> the amount of auch installments. „
<br /> � If under paragraph 18 hereof the Yroperty is acquired by Lender, sll right, title and interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds thereof (to tlie extent of thc sums secured by this Mort-
<br /> � gage immediately prior to such sale or acquisitionl resulting from damage to the Property prior to the sale or r
<br /> ucquieition shall pass to Lender.
<br /> 6. Preservatioa �sd Maintea�ce oE Property; 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 /> 1 comply with the provisions of any lease, if this \tort�uge is on a leiisehold . If this �iortgage is on n condominium
<br /> f unit, Borrower shall perform ull of Borrower's obligations under the declaration of condominium or master deed,
<br /> � the by-laws and regulations of the condominium project and constituent documents.
<br /> , y 7. Protectioa of Lendei s Security. If Bortotver fails t.o perform the covenants and agreements contained in
<br /> this Mortgage, or if any action or proeeeding is commenced �vhich materially affects Lender's interest in the Prop-
<br /> � erty, including, but not limited to, eminent domain, insoh•ency, codc enforcement, or arrangements or praceed-
<br /> ; ings involving a bankrupt or decedent, then Lender at 7_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, ineluding, but
<br /> } not limited to, disburaement of reasonnble attorney's fees snd entry upon thE Yroperty to make repairs. Any
<br /> i amounts disburaed by Lender pursuant to this puragraph 7, �vith interest thereon, ehall become ndditional indebtc
<br /> � edness of Borrower secured by this \4ortgage. Untess Borrower and Lender agree to other ternis of payment, such
<br /> amonnts ahall Ue payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br /> .., ; eat from the date of disbursement st the rnte stated in the Note unless payment ot interest at such rate would be
<br /> � contrery to applicable law, in which event such amounts shall bear interest ut the highest rate permisaible by
<br /> � . � applicable law. Nothing contained in this paragraph 7 slinll require Lender to incur nny expense or do any act
<br /> hereunder.
<br /> ' � 8. 7nspeefion. Lender may make or cau�e to bc mndc reasonabic entries upon and inspections of the Prop-
<br /> 3 erty, provided that Lender shall give Borrow•er notice ��rior to any such inspection epecif3�ing masonable cause
<br /> therefor related to Lender's intereat in the Property.
<br /> , � , 9� ; Coademuation. The proceeds of any award ar claim for damages, direct or consequential, in connection �
<br /> , F , with any ,bondeinnaLion or other taking of the Property, or part thereof, or for conveyance ia lieu of condemna-
<br /> ' � tion, are hereby assigned and shall be paid to Lender. "''� �
<br /> r In the event of s total taking of the Property, the proceeds sl�all be applied to the sums secured by this Mort- � #
<br /> c ,' � gage, with"theexcess, if any, paid to Bono�ven In t.l�e event of a partial taking of the Property, unless Borrower c <;' <:
<br /> � .� and Zender otherwise agree in writing, there si�nll be applied to tl�e sums secured by this viort�age such propor- .k« ' ' a '
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<br /> tioa of the proceeds as is equal to that proportion which the amount of the sums secured by this blortgage imme-
<br /> � �� .diately pnor to the date of .taking bears to the fair u�arket value of tl�e Property immediately E�rior to the date oi �:' � ;
<br /> C� l
<br /> A , ,4 takmg, w�h �}�e }iaFsriae of the proceeds paid,to Borrower. •
<br /> If'ttie"'Propettx is" abandoned by Bonower or i{ after notice by Lender to Borrower that the condemnor offers �,;�� � "�` '
<br /> � " i Eo mskeTsa �wesd 'or settle a claim for damsges, Borrower fails to respond to Lender within 30 days of the date "`
<br /> '"9 of.sacfi riotic�; 7;ender is aaithori$ed to collect and api�ly the proceedr xst. 7.ender'� option either to restorntion or
<br /> ' Te�+a'sr of fih9 Pml+ei�y nr f.o the eums secured bv tl�is \fortgaee.
<br />� � Unless Lender snd Bonower othenvise agree 'in writing, any such application of proceeds to principai sl�all
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