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<br /> If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I,ender, Lender �
<br /> shall apply, no later than immediately prior to tlie saic of the Yroperty or its acquisition b,y I.ender, nny Funds
<br /> held by Lender at the time of application as a credit again�t thc sums securod by this vlortgage.
<br /> 3. Applieation of Payments. Unless applicublc la��• provides othenvise, all payments received by Lender
<br /> under the Note and paragruplis 1 and 2 hereof shall bc applicd by I,endcr first in pay�nent of nmounts payable to
<br /> � Lender by Borrower under paragruph 2 liereof, then to interest pnyaUlc on the Note and on Future Advances, iP <
<br /> � any, and then to the principal of the \Totc and to the principnl of Fvture Advances, if any. ` ' ,:�
<br /> 4. Ch�ges; 7.iens. Borrower sliall payall tnxes, assessments and other chsrges, fines and impositions attrib- � r �
<br /> `�' ut,able to the Property whieh may uttain a priority over this Mortgage, und ground rents, if any, at Lender's ` '
<br /> option in ,the manner provided under paragraph 2 hereof or by Borrower making puyment, when due, directly to �
<br /> f Ehe payee thereof. Borrower shall promptiy furnish to Lender nll notices of arnounts due under this paragraph,
<br /> j � and in the event Borrower shall make payn�ent directly, Borrower shull promptly furnish to Lender receipts evi- f ;`
<br /> s, dencing such payments. Borrower shall promptly dischssrge nny ]ien which has priority over this \lortgage ; pro- ' �'
<br /> a � vided, that Borrower ahall not be required to discliarge any such lien so long us Borrower shnil agree in writing to
<br /> � � the payment of the obligation secured by such lien in :ti manner acceptable to Lender, or shssll in good faith contest '
<br /> ' � auch lien by, or defend enforcement of such lien in, legal proceedings wl�ich apernte to prevent the entorcement of
<br /> '-� � the lien or forfeiture of the Property or any part thereoL
<br /> �° � 5. Hazard Insuraace. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br /> ' erty insured against loss by fire, hazards ineluded within the tertn "extended coverage", and euch other hazards as
<br /> .� � Lender msy require and in such amounts and for sucl� periodc as Lender �nay require ; provided, that Lender shall
<br /> � not require that the amount of such coverage exceed that amount of coverage required Eo pay the sums secured 'by
<br /> % this Mortgage.
<br /> � The insurance carrier providing tl�e insurance shall be chosen by Borrower subject to approval by Lender,
<br /> � provided, that such npproval shall not be unreasonably withheld. All premiums on insurance policies shall be paid ; :;
<br /> � at Lender's option in the manner provided under paragraph 2 hereof or l�y Borrower �uaking puyment, when due,
<br /> � directly to the insurance carrier.
<br /> `� In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br /> y 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 b this Mort a e. Failure b Borrower to com 1 ma ' ' ^ :
<br /> � Y g B Y p y y, at option of Lender, constitute a default �,,
<br /> under the terms ot this Mortgage. ;
<br /> � All insurance policies and renewals thereof shall be in forn� ncceptnble to Lender and shall include n standsrd
<br /> � mortgage clause in fsvor of und in form acceptable to Lender. Lender shall have the right to l�old the policies and '
<br /> � �.
<br /> renewals thereof, and Borrower shall promptly furnisli to Lender all renewal notices and all receipts of paid pre- �;:
<br /> miums. In the event of loss, Borrower shall give prompt notice to the insursnce carrier and Lender, and Lender , ;,[ *'�.
<br /> ,� may make praof oi loss if not made promptly by Borrower. � r�„�iti
<br /> Unless Lender nnd Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or � '� � `•'µ'
<br /> repair of the Property damaged, provided such restoration or repair is economicnlly feasible and the security of � ' �k�`�*
<br /> ,� thie Mortgage is not tl�ereby impaired. If such restarntion or repair is not economicnlly feasible or if the security ^k`��
<br /> t of this Mortgage would be impaired, the insurance proceeds shnll be applied to the sutns secured by this Mortgage, : �h�
<br /> with the excess if un aid to Borrower. If the Yro ert �
<br /> � Y, p p y is abnndoned by Borro�c*er or if Borrower fails to respond : l � u,��'
<br /> to Lender within 30 days after notice by Lender to Borro�ver thut the insurance carrier offers to settle a claim for ;,�? � �,#,��.
<br /> insurance benefits, Lender ie authorized to collect and apply the insurance proeeeds at Lender's option either to �,,; r ,.
<br /> restoration or repair of the Property or to the sums secured by tl�is \Lortgage. �,�
<br /> Unless Lender and Bonower otherwise agree in writing, any such application of proceeds to principal shall ';:E
<br /> not extend or postpone the due date of the �nonthly instaliments reFerred to in parugraphs 1 nnd 2 hereof or change
<br /> the amount of such installments. �
<br /> If under paragraph 18 hereof the Yroperty is acquired by Lender, all riglrt, title and interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds tl�ereof (to tt�c extent o£ the sums secured by this Mort-
<br /> gsge immediately prior to such sale or acquisition ) resulting from dsinuge to the Property prior to the sale or
<br /> acquieition shall pass to I,ender.
<br /> 6. Presezvation �d Mmatea�ace of Property; Leaseholds; Condomiaiums_ Borrower shall keep the Prop-
<br /> erty in good repair and ahall not permit or commit waste, impairment, or deterioration of the Property and shall � :%
<br /> comply with the provisions of any lesse, if this 1Tortgage is on a leasehold. IF this DQortgage is on a eondominium `
<br /> unit, Bonower sholl perforn� all 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 /> 7. Protecbon of Lender's Security. If Borrower inils to perform the covenants and agreements contained in
<br /> this Mortgage, or if any action or procecding is commenced which materially affects Lender's interest in the Prop-
<br /> erty, including, but not limited to, eminent domuin, insolvency, code en[orcement, or arrangements or proceed- 1 ''
<br /> ings involving s bankrupt or decedent, then Lender at I.ender's option, upon notice to Borro�c•er, may mske such ' '�,
<br /> appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br /> � not ]imited to, disbursement of ressonable attorney's fees and entry upon the Property to make repairs. Any
<br /> amounts disbursed by Lender pursuant to tl�is paragraph 7, �vitli interest thereon, shall Uecome additional indebt- � X�'
<br /> ednesa of Borrower secured by this biortgage. Unless Borrower and Lender agrae to other terms of payment, such
<br /> smounts ehall be payable upon notice from Lender to Borrower requesLing payment thereof, and shall bear inter-
<br /> est from the date of disbursement at the rate stated in the I�Tote 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 /> applicable law. Nothing contuined in this paragraph 7 shnll reryuire Lender to inccr any expense or do any act
<br /> hereunder.
<br /> 8. Iarpection. Lender may tnake or cause to be inade renronablc entries upan and inspections of the Prop-
<br /> ertp, provided that Lender shall give Borroa•er noticc ��rior to nny surL inspection ;pecifying reasonable cause
<br /> therefor related to Lender's interest in the Property.
<br /> 9• Condemnatioa The proceeds of uny awarci or claim for damsges, direct or consequentisl, in connection `
<br /> with any condemnation or other tsking of the Property , or part thereof, or for con��eyance in lieu of condemna-
<br /> tion, are hereby assigned and shall be paid to Lender. , ,. ., ;;
<br /> _ In t5e event of s total taking of the P;operty, the proceeds shall be applied to the sums secured by this Mort- ,- �
<br /> gage, with the excess, if any, paid to Borro�ver. In tl�e event o! a partisl taking of the Property, unless Borrower � * •
<br /> snd Lenderatherwise agree imwriting, there sl�all` be appliecl to the sums secured by this Mortgage such propor- > ' '
<br /> tion of the proceeds as is equsl to that proportioa which tl�e amount of the sums secured by this Mortgage imme- J � ,�� t �':
<br /> diately pnor to the dste of taking bears to �he fair market value of, tl�e Property immediately prior to the date of ,�r,`
<br /> taking, witlr;�tlte balanee of°'the proceeds paid to Borrower. ;�� :. .'
<br /> If the Eroper'ty. i� aliandoned !iy'Borrower. or if. nitcr notice by Lender to Borrower that the condemnor offers � '�
<br /> to make an :awsrd or settle a claim for damagea, Borrower fails to respond to Lender within 30 days of the dste �+� .R::,
<br /> o�stlCh'notice; I:ender is anthorised to colIect and ap�ily tlie proceede at Lender's option either to r�atoration or
<br /> repair of the Property,or to;.the sums secured by this \lortgage.
<br /> T7nleas-.Lender snd Borrower other�visetagree in .�vriting, sny auch . application of proceede to principal shsll
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