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<br /> If ttnder paragraph I8 hereof the Property is sold or the Property is otherwise acquired by 7.ender, Lender
<br /> shall apply, no (ater thnn immediately prior to ihc sale of tl�e Pro�ierty or its acquisition by Lender, any Funds
<br /> held by Lender at the time of app?icstion as a rraclit ageir.st t�m sums scau:ed h;; t6is _'.�fa:tgagc.
<br /> 3. Applieatioa of Payments. Unless spplicablc la��• ��rovides othenvisc, all payments received by Lender
<br /> under the Note and purngrapGs 1 and 2 hereof shall i�q upplied by i.endcr first in payment of atnounts payable to ",�'
<br /> Lender by Borrower under paragrapL 2 hereof, then to interest payable on t.lic I�Tote and on Future Advancea, if � y� ;.
<br /> I any, and then to the principal of the ATote and to the princi�al of Future Advances, if nny.
<br /> 4. Chargas; Liens. Borrower sliall pay ull tuxes, assessments �tnd other charges, fines and impositions attrib-
<br /> O utable to the Property which may attain a priority over tl�is �4ortgu�e, and ground rents, if any , at Lender's
<br /> ' LC� option in the manner provided under paragrsph 2 liereof or by Borrower muking payment, when due, direcWy to
<br /> , , 00 the payee thereof. Borrower shall promptly furnish to 7,ender a�11 notices of uinounts duc under this paragraph,
<br /> C�2 snd in the event Borrower ahall make payment directiy , Borro�ver sliall promptly Curnisli to Lender receipts evi-
<br /> O dencing sucl� payments. Borrower shall promptly disckiarge any lien which has priority over this �4ortgage ; pro-
<br /> j � vided, Lhat Bonower shall not be required to discharge any such lien so long as Borrower shsil ssgree in writing to
<br /> , � the payment of the obligation secured by such lien in :i �nanner ncceptable to I,ender, or shall in good fnith contest
<br /> , � � auch lien by, oz defend enforcement of such lien in, legal proceedings wl�ich operate to pre�•ent the enforcement of
<br /> the lien or forfeiture of the Property or uny part thereof.
<br /> ' S. Hazard Iasur�ce. Borrower shull keep tLc improvements no�v existing or hereafter erected on the Prop- �
<br /> ; erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br /> , i Lender muy require and in such amounts and for such periods a� Lender may requirc ; provided , that Lender ahall '
<br /> not require that the umount of such coverage exceed thnt amount of coverage required to pay the sums secured 'by
<br /> ; this Mortgage_
<br /> � The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I,ender ;
<br /> j provided, that such approval shall not be unreasonsbly withheld. all premiums on insurance policies shall be paid ;.
<br /> , at Lender's option in the manner provided under pnragraph 2 l�ereof or by Borrower making payment, 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 j
<br /> ' i 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 tFus Mortgage. � �
<br /> � All insurance policies and renewals thereof ehall Ue in fonn ncceptable to Lender and shall include s standard ' t '-
<br /> +, tnortgage c]ause in favor of and in form acceptable to Lender. Lender shall ha��e the right to l�old the policies and .
<br /> y renewals thereof, and Borrower shall promptly furnish to Lender All rene�val not.ices snd all receipts of paid pre- ! �
<br /> � miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier nnd Lender, and Lender � ;:
<br /> may make proof of loss if not made promptly by Borrower. uAs
<br /> � Unless Lender and Bonower othenvise agree in writing, insurance proceeds shall be applied to reatoration or � ,; ,, , �:
<br /> � repair of the Property damaged, provided such restoration or repuir is economically feasible and the security of � � �- },r
<br /> ;± this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security , y � ,;'
<br /> � of this biortgage would be impaired, tl�e insurance proceeds shall be applied to the sums secured by this lbiortgage, � �,�;
<br /> � with the e�cceas, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrocrer fails to respond ` �, � ;
<br /> { to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for ;�;'
<br /> : � insurance benefits, Lender is authorized 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 b}- tl�is \Iortgage. � ;,,;.
<br /> � Unlees Lender and Borrower ott�erwise agree in writing, any such application of proceeds to principal shall t
<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 uader psragraph 1S hereo[ the Yroperty is acquired by Lender, all right, title and intemst of Borrower in �
<br /> � and to any insurance policies and in snd to the proceeds thereof (to the extent of the sums secured by this Mort-
<br /> ,! gage immediately prior to such sale or acquisition) resulting from damage to the Property prior to the sale or
<br /> ,y acquisition shall pass to Lendea �;;
<br /> � ;� 6. Preservation �d Mmnten�ce of Property; Leaseholds: Coadominiums. Borrower shall keep the Prop- �
<br /> erty in good repair and shall not permit or commit �vaste, i�npairment, or deterioration of the Property and ahall
<br /> ,,;� comply with the provisions oF any lease, if this �Iortgage is on a leasehold. If this ,14ortgage is on a condominium �
<br /> 3 unit, Borrower shall perform 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. Protection oE Lendei s Security. If Borrower fails to perform the covenants and agreements contained in
<br /> this Viortgage, or if any setion or proceeding is commenced whicL materially affects Lender's interest in the Prop-
<br /> : ! erty, including, but not limited to, erninent domain, insol�•ency, code enforcement, or arrangements or proceed-
<br /> inge involving a bsnkrupt or decedent, then Lender at 7.ender's option , upon notice to Bonower, may inake such
<br /> -� appearances, disburse sucli sums and take such action ns is necessary to protect Lender's interest, including, but
<br /> not limited to, disbursement of reasonnble attorney's fees and entry upon the Property ta make repairs. Any
<br /> '� smounts disbursed by Lender pursuant to this parsgraph 7, �vith interest thereon, shall become t►dditionsl indebt-
<br /> -'� ednese of Borrower secured by this �lortgage. Unleas Borrower und Lender agree to other terms of payment, euch
<br /> , � amounts shall be payable upon notice from Lender to Bonower requesting payment thereof, and shall 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 /> -, contrary to applicable law, in which event such amounts shall bear interest ut the highest rate permissible by
<br /> •� applicable law. Nothing contuined in this parngrapli 7 shnll require Lender to incur any expense or do any act
<br /> ;� hereunder.
<br /> 8. Iaspaetion. Lender may make or cawe to be made reseonable entries upon and inapections of the Prop-
<br /> ,� erty, provided that Lender shall give Borrower notice ��rior to nnp sucl� inspection specifying reasonable cause
<br /> thereforrelated to I.ender's interest in the Property. �
<br /> . 9. Condemnation. The proceeds of any nwasd or claim for damages, direct or consequential, in connection , :. �
<br /> with any condemnation or other taking of the Property , or part thrreof, or for conv¢yance in lieu of condemna- � �,,,;
<br /> tion, are hereby assigned and shall Ue paid to Lender.
<br /> Isthe event of a totsl taking of the Property, the proceeds sl�all be applied to the sums secured by this MorU � �
<br /> e with ,the.excesa if an gx�s` '
<br /> Sag , , y, paid to Borrower. In the event of a partial taking of the Property, unless Borrower I , i
<br /> and Lender otherwise sgree in writing, there sl�all" be applied to the sums secured by this vlortgage such propor- -+ � ; � ;
<br /> tion of the proeeeds'as is equal,to Ehat prot?ortion which the amount of the sums secured by this Mortgage imme- �t 'tx
<br /> di8tely prior ta the date of taking bears to tl�e fair ivarket value of tl�e Property immediately prior to the date of ' � .,;, '-
<br /> ,;, �
<br /> � talong, with �e ,lial�nce.of,tha proceeds paid-ta Borrower. � ;-`> p p�,
<br /> - If the Propertyis abandoaed by Botto}ver or ii nfter notice by Lender to Borrower tLat the condemnor offers - � f
<br /> �. to;make an awsid or `settle a claixn for dnmages, .$orrower fails to respond to Lender within 30 days o[ the date
<br /> of;suc& notioe, �ender is authorized to collect and apply the proceeds at I.ender's option either to restoration or
<br /> � repair of the Propezty or to.the suins:seoured by tl�is \Iortgage.
<br /> � Unless Lender and Borrosver othernise sgree in -writing, any such application of proceeds to principal shall �
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