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<br /> If under paragraph 18 hereof thc Yroperty is sold or the Property is othenvise acquired by I.ender, Lender
<br /> shnll sspply, no later than immediately prior to thc sxle of the Propert}• or its ucquisition by I,ender, nny Funds
<br /> held by Lender at the time of application as u credit aguinst tlic sinns .ecured by this 14ortgage.
<br /> 3. Applicatioa of Payments. Unless npplicablc ls�r provides otherwise, all payments received by Lender
<br /> under the Note and paragraphs T und 21�ereof shall bc npplied by 7.ender first in payment of Amounts payable to
<br /> ? Lender by Borrower under paragrapl� 2 hereof, then to interest puyable on the Note and on Fature Advances, if I
<br /> atyy any, and then: ta Lhe principal of the Note and to the principal of Future Advances, iP nny.
<br /> d Rj 4. Charges; 7.iens. Borrowershail paysll taxes, assessments and other charges, fines and impositions attrib-
<br /> ,S � utable`to the Property which may c+ttain a p�iority over this Vlortgage, and ground rents, if any, at Lender's
<br /> ? � option in the mannerprovided under �>aragraph 2 hereof or by Borro�ver �naking payment, �vhen due, directly to
<br /> �� � the payee thei�eof. Borrower shall promptly furnish to I.encicr ail notices of amounts due under this para�ra.ph,
<br /> � and in the event Borrower shall make payment directly, Borro«•er shull promptly furnish to Lender receipts evi-
<br /> dencing such payments. Borrower shall promptly discharge any lien which has priority over this vlortgage ; pro-
<br /> � , r vided, that Borrower shali not be required to dischsr�e uny such lien so long as I3orrower shali agree in writing to
<br /> `r, � the payment of the obligation secured by such lien in a manner ucceptable to Lender, or shall in good faith conteat
<br /> such lien Uy, or defend enforcement of such lien in , ]egal proccedings �vhich operate to prevent the enForcement of
<br /> the lien or forfeiture of the Property or Any part. thcreof.
<br /> 5. Hdzard Insuzaace. Borrower shnil keep tLe improvements no«• existing or herenfter erected on the Prop-
<br /> erty insured against loss by fire, hazards included �vithin the term "extended coverage", nnd such other hazards us
<br /> Lendermay require and in such amounts And for sucli periods us Lender may require ; provided , that Lender shall
<br /> j not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured 'by
<br /> this Mortgage.
<br /> 'j The insurance carrier providing ttie insurance shall be chosen by Borrower subject to approval by Lender ;
<br /> provided, that such approval shall not be unreasonably �vithheld. All premiums on insurnnce policies shall be paid
<br /> at Lender's option in the manner provided under paragraph 2 hereof or by Borro�ver making payment, when due,
<br /> directly to the insurance canier.
<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 prerniums and such sum shall become
<br /> 1 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 insursnce policies and renewals thereof �half bc in form acceptable to Lencler and shull include a standard
<br /> ' ; mortgsge clause in favor of and in form acceptable to Lendeit Lender shall hnve the right to l�old the policies and
<br /> , ; renewals thereot, and Borrower shall promptly furnish 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 insurance carrier and Lender, and Lender
<br /> � � may make proof of loss if not made promptly by Borrower_
<br /> Unless Lender and Borrower othenvise ngree in �vriting , insurance 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 restorntion or repair is not econo�nically feasible or if the security ti<
<br /> ' � of this Mortgage would be impaired, t6e in§urance proceeds shall be applied to the sums secured by this Mortgage, �
<br /> � with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fuils to zespond
<br /> � to Lender within 30 days after notice by Lender to Borrower thnt the insurance carrier offers to settle a claim for <
<br /> ineurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to g . -'`
<br /> � restoration or repair of the Property or to the sums secured Uy this �Iortgage.
<br /> IInless Lender and Borrower othenvise 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 ehange �"
<br /> the amount of such installments.
<br /> If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br /> and to any insurance poIicies and in snd to the proceeds thereof (to the extent of the sums secured by this Mort-
<br /> gage immedistely prior to such sale or acquisition) resulGing from dnmage to the Property prior to the snle or
<br /> acquiaition shsll pass to Lender.
<br /> 6. Presezvation mid Mmatenaace of Property; Leaseholds; Condominiums. Borrower shull keep the Prop-
<br /> erty in good repair and shsll not permit or commit waste, impnirment, or deteriorution of the Property snd shall
<br /> comply with the proviaions of any lease, if this �fortgage is on a ]easehold . If this �1ort�age is on n condominium
<br /> ;j unit, Bonower ahall perform all of Borrower's obligatians under the declaration of condominium or master deed,
<br /> 3 the by-lawa snd regulations of the condominium project and constituent documents.
<br /> �. � 7. Proteetioa of I.eadei s Security. If Borrower fuiis to perfotm the covenants rsnd agreements contained in
<br /> tius Mortgage, or if any action or proceedin� is commenced �vhich inateriallp uffects Lender's intereat in the Prop-
<br /> ; , erty, including, but not limited to, eminent domain, insoR•ency, code enforcement, or arrangements or proceed-
<br /> � inge involving a bankrupt or decedent, then Lender at 7,ender's option, upon notice to Borrower, may make such
<br /> appearances, disburse sucl� sums and take sucl� action as is necessary to protect Lender's interest, including, but
<br /> not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br /> , � amounta diebursed by Lender pursuant to this paragraph 7, �vith interest thereon, shall become additional indebt-
<br /> edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such
<br /> .� amounts shall be payable upon notice from Lender to Borrower requeating payment thereof, and shall bear inter-
<br /> j eat from the date ot disbursement at the rate steted in the l�ote 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 permisaible by
<br /> applicable law_ Nothing containeci in tl�is paragraph 7 shnll require Lender to incur any expense or do any act
<br /> . j hereunder.
<br /> � � - , 8. Inapeetioa. Lender may make or esuse to be madc reasonablc entries upon and inspections of the Prop-
<br /> � erty, pm��ided that Lender sl�all giceBorroner notice prim� to an}• sucl� inspection specif;•ing reasonuble eause
<br /> ` therefor related to Lender's interest in the Property. �
<br /> ,''.� ' 9. Condemaation. The proceeds of uny award or claim for damages, direct or consequential, in connection Y
<br /> `-'+ , with any 'condemnation or othertaking of the Property, or part thereof, or for com•eyance in lieu of condemna-
<br /> �� tion, sre herebg sasigned and shsll be paid to Lender. `" =="�`
<br /> �� In the event ofs total takingbf the Property, the proceecls shall be applied to the sums secured by thie Mort-
<br /> � gage, with the excesa, if any, paid to Borrower.. In the event of a partial taking of the Property, unless Bonower s� '' '�
<br /> � iand Lender otherwise agree in writing, there shall be applied to the aums secured by this iliortgage such propor- f�` =
<br /> ��>� �tioa of�the proeeeds as is equel to that proportion which tl�e amount of the sums secured by this biortgage imme- �-;
<br /> diately prior to the date of :taking bears to tlie fair inarket value of tlie Property immedietely prior to the date of �"' � �
<br /> h. � taking, wi�h-Lhe balance of'the proceeds paid to Borrower. ;� ? * p S�� '
<br /> .f ,s If-tfie�ProperEq�is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers ��' �' "-:'
<br /> ' � ' to make'sn 'sws'id or'settle a clsiun'for damages, Borrower fails to respond to Lender within 30 days of the date
<br /> .; of,such-notice, Lender is suthorized `to callect und ' apply the ��roceeds at Lender's option either to restoration or
<br /> ; � repd5x of the Property or to the auma eecured by t[iis \fortgage.
<br /> , � IInless Lender and Borrower othernise agree in �vriting, any such application of proceeds to principal shall �
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