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<br /> If under paragraph 18 hereof the Yroperty- is sold or the Property is otherwise acquired by 7,ender, Lender
<br /> shall apply, no later than immediately �uior to thc stilc of ihc Pror�ert�• or its ucquisition by- I.ender, any Funds
<br /> held by Lender at W�e ticnc of applic�tion as a credit aeaine} thc sums c�curcd b�• this \4ortRaFe.
<br /> 3. Application of Payments. Unless upplicable In��- provides otherwiec, ul} p:tyments received by Lender
<br /> under the Note und psragraplis 1 nnd 2 hereof slisil lic applicrl by Lender first in puyment of nmounts puyable to
<br /> Lender hy Borrower under paragraph 2 Lereof, then to interest pnyable on the ATote and on Future Advances; if
<br /> :� any, snd then to the prinoipal of the Notc snd to the principal of Future Advances, if any. �
<br /> 4. Ch�gea; Lieas. Borrower shall pay uil taxes, assessinents nnd other charges, fines and impositions nttrib-
<br /> ; ut�ble •to the Property which may attain a priority over this ��oi�tgage, and ground rents, if any, at Lender's
<br /> O option in .the manner provided under paragraph 2 hereof or by Borro�ver making payment, when due, directly to
<br /> ,� the payee thereof. Borroaver sha1C promptly furnish to Lendcr all notices of amoi�nts due i�nder tl�is paragraph ,
<br /> � and in the event Borrower shall makc payment directly, Borrower shnll promptly Curnish to Lender receipts evi-
<br /> � dencing sucl� paymenta. Borrower shall promptl,v discharge any lien �vhich has prim•ity over this \Iortgage ; pro- ,
<br /> O vided, that Borrower shatl not be required to discharge nny� sucli lien so long as Borro�ver shall agree in writing to
<br /> O the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith conteat
<br /> ` such lien by, or defend enforcement oP such tien in , Iegal proccedings «•hich operate to prevent the enforcement of
<br /> ! r the lien or forfeiture of the Property or nny purt tf�ereof.
<br /> � 5. FIazazd Insur�sca. Borruwer shall keep tlie impro�•ements noi�- exi�ting or hereafter erected on the Prop-
<br /> n erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br /> Lender may require and in such amounts und for such periods :is Lender muy require ; provide<t, that Lender shall
<br /> � not require that the nmount of such coverage exceed that amount of coverage required to pay the sums secured 'by ,
<br /> i this Mortgage.
<br /> The insurance carrier providing the insurAnce shall be chosen by Borro��•er subject to approval by Lender ;
<br /> provided , that such approvat shall not be unreasonably withheld. All premiums on insurssnce policies shall be paid
<br /> at Lender's option in thc manner provided under p�ragraph 2 l�ereof or by Borrower making payment, when due,
<br /> d'uectly to the insurance csrriea
<br /> 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 paid and shall be �
<br /> 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 and renewals thereof shall be in forin acceptable to Lender and shsl ! include a standard
<br /> mortgage clause in favor of and in form acceptable to Lender. I.ender shall have the ri�ht to l�old the policies and
<br /> renewals thereof, nnd Borrower shall promptly furnish to Lender all renewal noticr,s and all receipts of paid pre-
<br /> miums. In the event of loss, Borrower shall give prompt notice to the insurance earrier and Lender, and Lender
<br /> % may make proof of loss if not made promptly by Borrower_
<br /> ' Unless Lender and Bonower otherwise agree in writing, insurance proceeda shall be applied to restoraEion or
<br /> repsir of the Property damuged, provided such restoration or repair is economically feasible and the security of
<br /> this Viortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the aecurity
<br /> � of tt�is Mortgage would be impaired, the insurance proceeds st�all be applied to the sums secured by this Mortgage, `
<br /> � with the excess, if any, paid 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 insurance carrier offers to settle u claim for �
<br /> fineurance benefits, 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 tliis �3ortgage.
<br /> '` Unlesn Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall ; � '
<br /> ' � not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change '
<br /> the amount of such installments.
<br /> � If under psragraph 18 hereof the Property is acquired by Lender, all right, title and interest af Borrower in
<br /> and to any insarance 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 ncquisition ) resulting from damage to tlie Property prior to the sale or
<br /> � acquisition shall pass to Lender.
<br /> 6. Preseroation �d Mmntea�ee of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br /> erty in good repair and shall not perrnit or commit wuste, impainnent, or deterioration of the Property and shall
<br /> ; . comply with the provisions of any lease, if this lIortgage is on a leasehold. If this 14ortgage is on a condominium ,
<br /> � unit, Borrower shall pertorm all of Borrower's obligations under the declarution of condominium or master deed,
<br /> the by-laws and regulations of the condominium project and constituent docttments.
<br /> � 7. Protection of Leader's Security. If Bonower fails to perform the covenants and agreements contained in
<br /> this Mortgage, or it any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br /> � erty, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceed-
<br /> j inge involving s bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br /> � appesrances, disbutse such sums and take sucl� action �s is necessary to protect Lender's interest, including, but
<br /> ,. , not limited to, diabursement of reasonable attorney's fees and entry upon the Property to make repsirs. Any
<br /> ; : :� amounts disbursed by Lender pursuant to this paragraph 7, �vith interest thereon, shall become additional indebt-
<br /> ,' ) ednesa of Borrower secured by this viortgage. UnIess Borrower and Lender agree to other terms of payment, such
<br /> � amounts ahall be payable upon notice from Lender to Borrower requesting psyment thereof, and shall bear inter-
<br /> eat from 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 /> applicable law. �Tothing contained in this paragraph 7 shnll require Lender to incur any expense or do sny act
<br /> ; ;; hereunder. .
<br /> a 8. Inspection. Lender may inake or esuse to he madc reasonabic entries upon and inapections of the Prop-
<br /> � � erty, provided that Lender shall give Borrower notice �n•ior to any such inspection �pecifying reaQonable cause
<br /> ; � therefor relsted to I,ender's interest in the Property.
<br /> �, � 9. Coadeaoaation. The proceeds of nny awsrd or claim for damuges, direct or 'consequential , in connection �
<br /> with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br /> ,, -� tion, $re hereby aseigned and shall be paid to Lender. . . �' `
<br /> r Tn the event of a total taking of the Yroperty, the proceeds shssll be applied to the sums secured by this Mort- } ,a ,
<br /> , ,,, ; gsge, with"the e�xcess, if any, paid to Borron•er.. In tl�e event of a partial tnking of the Property, unless Borrower `�`
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<br /> ;; and Lender. otherwise agree in writing, there sliall be applied to the aums secured by this l�fortgage such propor- 3': "��
<br /> a,� tiou' of tha proceeds as is egual to thaL proportion which the amount oF the aums secured Uy this biortgage imme- �`' -'=`"
<br /> diately prior to the date o£:tsking besro to.the fair inarket value of the Property i�nmediately prior to the date of � ` �
<br /> taking, with the:belanoe af the proceeda paid to Borrower. A,� :t� t
<br /> If.the;P.,copetEy,.is,abandonedby Borrower or if after notice by Lender to Borrower that the condemnor offers ; t� v �:.:�`
<br /> i to make sn aws;d or aettie a cisim for damsges, Borrower fails to respond to Lender within 30 days of the date
<br /> 3 of ei�o& noLioe, Lender is suthoriied to collect and apply the proceeds at Lender's opiion either to restoration or
<br /> ; „ # repair of the Prnpetty or to tbe suroa secured by £liis \Iortgage.
<br /> „ � �Jnlees Lendersnd Borrower 'othenvise' sgrea . in writing, any such application of proceeds to principal shall
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