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<br /> If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender �
<br /> shall apply, no later than immediately prior to thc sule of thc Yroperty or its ucquisition by Lender, nny Funds
<br /> held by Lender at the time of application as a credit a�ainst thc sums secured by this :�Iortgaga
<br /> 3. Application of Payments. Unless apPlicuble law provides othenvise, nll . puymentx received by I.ender
<br /> under the Note and paragruphs 1 and 2 hereof shnll bc applied by Lender first in payment of nmounts payable to
<br /> � Lender ,by Borrower under �arsgrapl� 2 liereof, then to interest ��uyablc on thc Note and on Future Advances, if
<br /> any, and 'then to the principal of the Note and to tl�e principul of Future Advnnces, if any. , �>
<br /> ` 4. C6arges; Liens. Borrower sliaU pay all taxes, assessments and other chsrges, fines and impositions attrib-
<br /> �, utpble to the Property which muy nttain a priority over this Vtortgage, and ground rents, if any, at Lender's
<br /> � option in the mannerprovided under psragraph 2 hereof or by Borrower making payment, when due, directly to
<br /> s R2 the payee thereof. Borrower shall promptly furnish to Lender all notices of nmounts due under this paragraph ,
<br /> � and in the event Borrower shall tnake payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br /> Rl dencing sucl� paymenLs. Borrower shall promptly discharge any lien which has priority over this VIortgage ; pro-
<br /> � vided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to
<br /> � the'payment of the obligation secured by such lien in a munner ncceptnble to Lender, or s6a11 in good faith contest
<br /> � sucfi lien by, or defend enforcement of sucl� lien in, legal proceedings which operate to prevent the entorcement of
<br /> ; � the lien or forfeiture of the Property or any part thereof.
<br /> Op 5. Hazard Insurmice. Borrower shnil keep the 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 sucli other hazards as
<br /> Lender may require and in such amounts and for sueh periods as Lender may require ; provided, that Lender ahsll
<br /> r not require that the umount of such coversge exceed fhat amount of coverAge required to �ay the sums secured 'by
<br /> ' this Mortgage.
<br /> ` The insurance canier providing the insurance sha❑ be chosen by Borrower subject to approval by Lender ;
<br /> � '; provided, that such approval shal! not be unressonably withheld. All premiuma on insurance policies shall be paid
<br /> ' i 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 carrier.
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<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 inaurance on the improvements, pay the premiums and such sum shall become � ;t
<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 temns of this Mortgage. �, `
<br /> } Aii insurance policies and renewals thereof shall be in forni acceptaUle to I,ender and shall include a standard
<br /> ' � mortgage clause in favor of snd in form acceptable to Lender. I.ender shall ha�•e the right to hold the policies and � �
<br /> � renewals thereof, and Borrower shall promptly turnish to Lender all renew•al notices and all receipts of paid pre- � r '
<br /> � miums. In the event of loss, Borrower shall give prompt notice to the insurance currier snd Lender, and Lender ,:;-
<br /> , may make proof of losa if not made promptly by Borrower. s;;
<br /> � Unleas Lender and Borro�ver otherwise agree in writing, insurance proceeds shall be applied to restoration or > � .;
<br /> ` , , repair of the Praperty damaged, provided such restoration or repuir is economically feasible und the security of '��"s
<br /> • � this Mortgage is not thereby impaired. If such restorntion or repair is not economieally feasible or if the security " ' ,-�i�{
<br /> of thie Mortgage would be impaired, tl�e insurance ��roceeds shall bc applied to the sums secured by this Mortgsge, � x �
<br /> � with the excesa, if any, paid to Borrower. If the Yroperty is absndoned by Borrower or if Borrower 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 } ' �v
<br /> � insurance benefits, Lender is authorized to collect and nppiy thc insurance proceeds nt Lender's option either to ` �,;h,^
<br /> restoration or repair of the Property or to the sums secured by this \Iortgage. ' `�'�+
<br /> � IInless Lender and Borrotiver otherwise agree in writing, any such applicntion of proceeds to principal ahall � - � �'�c
<br /> not extend or postpone the dve dste of the inonthly installments referred to in pnragraphs 1 and 2 hereof or chenge
<br /> ; � the smount of such installments.
<br /> :� If under paragraph 18 hereof the Property is acquired by Lender, sll right, title and interest of Borrower in
<br /> � snd to any insurance policies and in and to the proceeds thereo[ (to thc eutent 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 . ` r
<br /> � acquieition ehall pasa to Lender. ?
<br /> 6. Preservation �d Mmatea�ce of Property; Leaseholds; Coadoauniums. Bonower shal! keep the Prop- r
<br /> �, ;� erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br /> comply with tl�e provisions of any lease, if this �fort�age is on a leaseliold. If this Mortgage is on a condominium
<br /> ; unit, Bonower shall perform nll of Borrower's obligations under the declaration of condominium or master deed,
<br /> 1 the by-laws snd regulations of the condominium project and constituent documents_ `
<br /> . F 7. Protec6on of Lender's Sacurity. If Borrower fails to perform the covenants and ugreeraents contained in �:.
<br /> " ; this Vlortgage, or if any action or �roceeding is commenced �vhich materially affects Lender's interest in the Prop-
<br /> :. } erty, including, but not limited to, eminent domain , insolvency, code enforcement, or srrangements or proceed-
<br /> f in� involving a bankrupt or decedent, then Lender at I.ender's option, upon notice to Borrower, may make auch
<br /> 9 appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br /> nat limited to, disbursement of reasonable atLorney's fees and entry upon the Property to make repsirs. Any
<br /> i amovnts disbursed by Lender pursuant to this paragrapli 7, �vitl� interest thereon, ahall become additional indebt-
<br /> :� edness of Borrower secured by this �Sortgage. Unless Borrower nnd Lender agree to other terma of payment, auch
<br /> + amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear iater-
<br /> ' � ''� eet from the date of disbursement at the rate stated in the Note unless payment of interest at such rate wouId be
<br /> ' 8 contrarq to applicable law, in which event such amounts shall bear interest nt the higheat rate permissible by
<br /> , � applicable lsw. Nothing contained in this paragraph 7 shnll require I.ender to incur any expense or do any act j
<br /> hereunder.
<br /> 8. 7aspaction. Lender may inske or esuse to be �nadc reasonablc entries upon and inspectiona of the Prop-
<br /> erty, provided that Lender shall give Borrower notice �+rior ta nnv such inspection epecifying reasonable esuse
<br /> � therefor related to Lender's interest in the Pmperby. -
<br /> y. ,,;� , 9r Condemaation. The proceeds of uny sward or claim for damsges, direct or consequential, in connection -
<br /> x :;,: , with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br /> �!':. tion, are hereby aesigned and shall be paid to Lender.
<br /> K„„ In. the evenbof a total taking of the Property, the pcoceeds shall be applied to the sums secured by this Mort- ,,,,�� v �
<br /> :.„ gage, with the excess; if any, peid to Borrower_ In the event of a partial taking of the Property, unless Borrower
<br /> "`�` 'and Lender otherwise s e in writin there shall be a lied to the sums secured b this Mort a e such ro or-
<br /> ,� ' �� PP Y g B P P " ,�
<br /> tion of the proceeds as is equsl to that�proportion which the amount of tHe sums seeured by thia Mortgage imme- ,;�
<br /> ' diately pnor to the dste of tsking beare ;o the fair raarket vaiue of tl�e Property immediately prior to the date of �
<br /> A.� talnng, with,the'�batance of.the proceeds paid to Borrower. R ,�?�
<br /> y a xf the Pr,opert}r is�sbandoned by Borrower or if atter notice by Lender to Borrower that the condemnor o!t'ers ` �� � }
<br /> ��� to make an. award or settle s claim for damages; Borrower fails to respond to Lender within 30 days of the date � _ � �'�
<br /> ;..� q of;snch n'otice,.Y.eader is suttiorized to colIect snd apply the proceeds at Lender's option eitl�er to restorstion or � '
<br /> rep�r of the Property or to the sams secured bs this \iortgage.
<br /> �,�' � Uriless Lender snd Borrower otherniae agree, in �vriting, any such applicstion of proceeds to principal shall
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