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<br /> If under paragraph 18 hereof the Property is sold m• the Yroperty is other�vise acquired by I,ender, Lender
<br /> shali apply, no later thsn immedintely prior to thc sale of tlie Prapert}• or its acquisition by Lender, :iny Funds
<br /> held by Lender at the time oF application as a credit against the sums secured by this vIort�age.
<br /> 3. Application of Paymenls. Unless A�7�I1CIIbIC Inw ��rovides otherwise, all paymentr� received by I,ender
<br /> under the Note and paragraphs 1 and 2 hereoi sliall bc applied t�y Lendcr first in payment of amounts payable to
<br /> Lender by Borrower un,der paragrapli 2 hereof, then to interest �iayable on tLe Note and on Futurc Advances, if
<br /> any, and then to the principal oF the Note and to the principal of I'uture Advances, i[ any. '
<br /> 4. Chargesr.Liens. Borrowershall pny all taxes, assessments nnd other chnrges, fines and impositions attrib-
<br /> utable to the Property which may attain a priority over this 1�Iortgage, und ground rents, if uny, at Lender's
<br /> option in themanner provided under paragraph 2 hereof ar by Borro�ver rnaking puyment, when due, directly to
<br /> � Cp the payee thereof. Borrower st:uil promptly turnisl� to Lender all notices of amounts due under tliis parsgraph,
<br /> pp and in the event Borrower shall tnake payment directly, Borro��-er shall promptly furnish to Lender receipts evi-
<br /> u"j dencing such payments. Borrower shall promptly discharge any lien which hus priority over this �Rortgage ; pra-
<br /> �j vided, that Borrower shall not be required to discharge nny such lien so long as Borro�ver shsll agree in writing to
<br /> j p the payment of the obligation secured by such lien in :a manner acceptnUle to Lender, or shssll in good faith contest
<br /> p auch lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the entorcement of
<br /> the lien or forfeiture of the Property or any ��art tl�ereof.
<br /> ' � S. Haa�d Insuraace. Borrower shall keep thc ituprovements no«� existing or hereafter erected on the Prop-
<br /> q ^ erty insured against loss by fire, hnzards included �vithin the term "extended coverage ", and such other hazards as
<br /> Lender may require snd in sach srnounts 3nd for sach pec•iods as I.ender mxty requirc : provided, that Lender shatl
<br /> not require that the smount of such coverage exceed Wiat amount of coverage required to pay the sums secured 'by
<br /> this Mortgage.
<br /> The insurance carrier providing ttie insurance shsll be chosen by Borrower subject to approval by Lender ; .
<br /> provided, that such approval shsil not be unreasonably withheld. :111 premivms on insuronce policies shall be paid
<br /> at Lender's option in the manner provided ❑nder paragraph 2 hereof or by Borro�ver making payment, when due,
<br /> + directly to the insurance carrier.
<br /> r.`.
<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 insuzance 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 shsll be in torm acceptaUle to Lender and shall include a standard
<br /> �nortgage clause in favor of and in form acceptaUle to Lender. I.ender chall have the right to hold the polieies and
<br /> r renewals thereof, and Borrower shnll promptly furnish to Lender ull renewal notices and all receipts of paid pre- '
<br /> miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br /> ; may make proof of loss if not made promptly by Borrower.
<br /> � Unless Lender and Borrower otl�envise ngree in writing, insurnnce proceeds shall be applied to restoration or
<br /> repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br /> this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br /> , ; of this Mortgage would be impaired, the insurance proceeds shall bc applied to the sums secured by this Mortgage,
<br /> j, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fnils to reapond ;;
<br /> to Lender within 30 deys after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br /> ineurance benefits, Lender is suthorized to collect and upply the insurance proceeds ut Lender's option either to
<br /> �- restoration or repair of the Property or to the sums secured by tl�is \Iortgage.
<br /> i Unless Lender and Borrower otherwise agree in �vriting, any such applicution of proceeds to principal ahall �"�' t
<br /> ; � not extend or postpone the due dnte of the montlily installments referred to in paragraphs 1 and 2 hereoF or change
<br /> the amount of such installments_
<br /> f If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br /> : ti and to sny insurance policies and in and to tl�e proceeds ttiereof (to the extent of the sums secured by this Mort-
<br /> ' E gage immediately prior to such ssle or acquisition ) resultin� from damage to the Property prior to the sale or
<br /> � acquieition shall pass to Lendea `'
<br /> t 6. Praservatioa �d Mmntea�ce of Property; LBaseholds; Coadomuaiums. Borrower shall keep the Prop- �
<br /> " { erty in good repair snd ahall not permit or commit waste, impairment, or deterioration of the Property and ehall
<br /> f comply with the provisions of any Iease, if this \fortgage is on n ]easel�old. If this Mortgage is on a condominium
<br /> ! unit, Borrower shall perform ull of Borrower's obligations under the declaration of condominium or master deed ,
<br /> j the by-laws and regu]ations of the condominium project and constituent documents.
<br /> , � 7. Protection of Leader's Security. If Borrower fails to perform the covensnts and agreements contained in
<br /> this Mortgsge, or if any action or proceeding is commenced �vhicli muterially affects Lender's interest in the Prop-
<br /> erty, including, but not limited to, eminent domain, insol�•ency, code enforcement, or arrangements or proceed-
<br /> � , ings involving a bankrupt or decedent, then Lender at T.ender's option, upon notice to Borrower, may make such
<br /> appearances, disburse auch surus and take sucli action ns is necessary to protect Lender's interest, including, but
<br /> not limited to, diabursement of reasonable attorney's fees and entry upon tlie Property to make repairs_ Any
<br /> � amounte disburaed by Lender pursuant to this paragraph 7, �vitli interest thereon, shall beeome additional indebt-
<br /> ;' �� edness of Borrower secured by tl�is Mortgage. Unless Borrower und Lender agree to other terms of payment, such
<br /> amounts ahall be paysble upon notice from Lender to Borrower requesting payment thereof, and ahall bear inter-
<br /> : I est 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 intereat at the higheat rste permissible by
<br /> i applicable law. Nothing contained in this pnragraph 7 shnll require Lender to incur any expense or do any act
<br /> . � hereunden
<br /> � B. Iaspection. Lender may make or cause to he madc reasonable entries upon and inapectiona of the Pmp-
<br /> j erty, provided that Lender shull give Borroa�er notice �n•ior to any ci�c•h inspection speoifying reasonable cause
<br /> � ;.g therefor related to Lender's interest in the Property.
<br /> # 9., Coademnation. The proceeds of any award or claim for damages, direct or consequentisl , in connection �
<br /> , ; with any condemnation or other taking of the Property, or psrt ihereof, or for convevance in lieu of condemna- ,, , : ,
<br /> ' � tion, are hereby assigned and shall be paid to Lender. ,-- �
<br /> � � In the event of a total tsking oi the Property, the proceeds sl�all be appFied to the sums secured by this Mort- " � „
<br /> ;`I gage, �vith the excees, iE any, paid to Borrower. In tlie event of a partial tnking of the Property, unlesa Borrower ,, M { .
<br /> j snd Lender otherwise agree in writing, there shall be applied to the sums secured by this 14ortgsge such propor- , � :: •
<br /> .:� tion of.the proceeds as is equal to that proportion which the amount of the sums secured by this 1liortgage imme- �." ;:.
<br /> �� di'ately prior to the date. of takiag bears to the fair market vaiue of t6e Property immediately prior to the dste of � � `
<br /> talang, with'the lialance of the proceeds paid to Borrower. � - " �` ��
<br /> ,� ' If the;Pro ert `
<br /> p y;is abandoned by Borrower or if nfter notice by Lender to Borrower that the condemnor offers .�. � � ;:�`
<br /> y to malCe 'sa, award or settle a clsim for damages, Borrower fails to respond to Lender within 30 days of the date
<br /> 4 ;; of such notice, Lender.is authorized to collect and appIy tl�e procc:eds at Lender; option eitl�er tu restoration or
<br /> � d repair of the Property or to the snms secured by this \iortguge.
<br /> � Unless. Lender snd Borrower other�oise agree in writing, sny such spplication of proceeda to principal shatl
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