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<br /> If underparagraph 18 hereof thc Property is sold or the Property is othenvise acquired by Lender, Lender
<br /> shall apply, no Iater tl�an immedistely prior to tl3c salc of tl�e Pro�icrty or its aicquieition by I.ender, any Funds
<br /> held by Lender at the timc of application as a credit against Yhc sums secured by this vtortgage.
<br /> 3. Application of Paymeats. Unless applicsblc la«• provides othenvise, all payments received by Lender
<br /> under the Note and paragraplis 1 nnd 2 hereof sliall hc ap��lied by I.ender first in payment of umouats payable to
<br /> Lenderby Borrower under psragraph 2 hereof, then to interest p�yable on the I�'otc and on Future Advances, if '
<br /> , any, and then to the principal of the Note and to the principal of Future Ad�•ances, if any. °�
<br /> r 4. Charges; Liena. Borrower shull pay nll tuxes, nssessments and other charges, fines and impositions attrib- ,� � ;
<br /> utpble to the Property which may attain s priority over tliis l�ortgage, und ground rents, if any, at Lender's
<br /> + � option in the manner provided under paragraph 2 hereof or by Borrower making �Ayment, when due, directly to �
<br /> i �, Ehe payee thereof. Borrower 'shall promptly furnish to Lender ull notices of amounts due under this paragraph,
<br /> � and in the event Borrower sha❑ xnake payment directly, Borrower shall promptly furnisl� to Lender receipts evi-
<br /> ` � dencing such payments. Borrower shall promptly discharge any lien which hns priority over this �'Iortgage ; pro-
<br /> -� � vided, that Borrower shall not be required to discharge uny sucl� lien so long as Borrower slialt agree in writing to
<br /> ; � the payment of the obligation secured Uy such lien in a manner acceptabie to I,ender, or shall in good faith contest
<br /> auch lien by, or defend enforceinent of such lien in, legal proceedings �vl� ich operate to prevent the entorcement of
<br /> � the lien or forfeiture of the Property or any part thereof.
<br /> � 5. Hazard 7nsurmiee. Borrower shall keep the improvements no��• existing or hereufter erected on the Prop-
<br /> erty insured againstloss by fire, hazards included �vithin the term "extended coverage", and such other hazards as
<br /> Lender may require and in suc}i amounts and for sucl� periods res Lender tnay require ; provided, Lhat Lender ahal]
<br /> not require that the amount of such coverage exceed thnt amount of coverage reqnired to pay the suma secured 'by
<br /> this Mortgsge.
<br /> The insurance carrier providing tl�e insurance shsll be chosen by Borrower subject ta approvnl by Lender,
<br /> provided , that such approval shall not be unreasonsbly withheld. All premiums on insurance policies shall be psid '
<br /> at Lender's option in the manner provided vnder paragraph 2 hereof or by Borrower making {�ayment, 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 /> 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 shafl be in form acceptaUle to 7,ender and shall i�clude a standard '
<br /> mortgage clause in favor of and in form acceptable to Lender. I.ender shalt have the right to hold the policies and �s
<br /> renewals thereof, and Borrower shali promptly furnish to Lender all renews�l notices and all receipts of paid pre-
<br /> miums. In the event of loss, Borrower sl�all give prompt notice to the insurance carrier and Lender, and Lender �
<br /> ` may make proof of loss if not made promptly by Borrower. ��"
<br /> � Unleea Lender and Bonower otlierwise agree in �vriting, insurance proceeds shall be applied to restoration or i *�>
<br /> repair of the Property damsged , provided such restoration or repair is economically feasible and the security of i ;'>";
<br /> this Mortgage is not thereby impaired. If such restoration or repair is not economically fensible or if the security "
<br /> r of this Mortgage would be impaired, tl�e insurance E�roceeds shall bc applied to the sums secured by this Mortgsge, v`;
<br /> ' � with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Bonower fails to respond r s '' `'
<br /> to Lender within 30 days after notice by Lender to Borrower tl�at the insurance carrier offera to settle a claim for < ' '
<br /> ; t � � �
<br /> $ insurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to ;r
<br /> '� restoration or repair of the Property or to tl�e sums secured by tliis �Iortgage. ! -�'"�
<br /> ,
<br /> i Unless Lender and Bonower othenvise agree in writing, anp such application of proceeds to principal shall '
<br /> � not extend or postpone the due dnte of the monthly installments referred to in paragraphs I and 2 hereof or change
<br /> the amount of such installments.
<br /> j If under paragrsph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br /> ; and to any inaurance policies und in and to the proceeda tliereof (to tlie extent of the sums secured by this Mort-
<br /> ' j gage immediately prior to such ssle or acquisition) reault-ing from damage to the Property prior to the sale or
<br /> S acquieitioa shall pass to Lender. ;.
<br /> { 6. Pzeservatioa rmd Mmataa�ce oi Property; Leaseholds; Condomiaiums. Borrower shall keep the Prop- ` ;:
<br /> ierty in good repair and shali not permit or commit waste, impairment, or deterioration of the Property and shall
<br /> � comply with the provisions of any lease, if this \lortgage is on a leusehold. It this �lortgage is on a condominium
<br /> � unit, Borrower shall perForm ail of Borrower's obligations under the declaration of condomininm or master deed,
<br /> � the by-lsws and regulations of the condominium project and constitvent documents.
<br /> 7. Protection of Leadei s Security. I4 Borrower fails to perform the covenants and agreements contained in
<br /> this vlortgage, or if any action or proceeding is commenced whicii mnterinlly affects I,ender's interest in the Prop-
<br /> ? erty, including, but not limited to, eminent domain, insol�•ency, code enforcement, or arrangements or proceed-
<br /> , � inge involving a bankrupt or decedent, then Lender at I.ender's option , upon notice to Bonower, may make such
<br /> appearances, disburse sucl� sums and tske such action 1s is necessary to protect Lender's interest, including, but
<br /> ' i not limited to, disbursement of reasonable attomey's fees and entry upon the Property to make repairs. Any
<br /> 1 amounts diabursed by Lender puxsuant to thia paragrsph 7, �vitli intereat thereon , shall become additionai indebt-
<br /> � edness of Borrower secured by this Vfortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> j acnounte ahall bepayable upon notice frona Lender to Borrower requesting payment thereot, and ehall 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 /> � contrarq to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br /> >� applicable law. Nothing contained in this paragraph 7 shnll requirc Lender to incur any expense or do any act
<br /> i hereunden
<br /> , � 8. .Iaspeetion. Lender may roake or cause to he madc reasonablc entries upon and inspections of the Prop-
<br /> erty; provided th'at Lender shaIl give Borrower notice �+rior to an}• sucli inspection specifying ressonable cause
<br /> • 3 therefor related to Lender's interest in the Property.
<br /> 9. Condemnation. The proceeds of uny award or claim for damages, direct or consequential, in connection
<br /> �'' � with any%condemnsCion orbther taking of the Property, or part tGereof, or for conveyance in lieu of condemna- ' � .. '
<br /> j tion, are herebysssigned and shsll be paid to Lender. , �
<br /> � In the event of s totel taking of the Property, the proceeds sl�al] be applied to the sums secured by this Mort- " y
<br /> `_� gage, with the ;excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrawer � �
<br /> and Lender otherlvise agree in writing, there shall be applied to tl�e sums secured by this 3'tortgage such propor- R p af -
<br /> "� Eion of,the proceeds sa is equal ta that proportion which the amount of the sume secured by thie Mortgage imme- s¢� $ '.
<br /> ' dietely pnor,to the date ,of taking bears Eo the fair market value of tl�e Property immediately prior to the date ot �° :
<br /> } , takiag, with ttfe� lialance of"the proceeds paid toBorrower. a` �
<br /> ;-�� �� If .the Propeity.,;is,abandoned.by Borrower or i f n fter notice by Len der to Borrower t ha t t he con demnor o ffere s�" °��
<br /> r, �- i to make an awsrd or settle s clsim :for damages, Borrower faila to respond to Lender within 30 days ot the date a ,�r-�? �--
<br /> r ;; of auch notice, Lender is suthorized to coldect snd apply tlie ' ��roceeds at Lender's option eitlier to restoration or
<br /> ri repair-of;yhe Prop'erty,or to the suma secureci by this �lortgage.
<br /> �,. `} Untess Lender; and Borrower other�vise sgree in �vriting, any suoh application of proceeda to principal shall
<br /> � � �
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