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<br /> If under paragraph 18 hereof the Property is sold or the F'rnperty is otherwice acquireci b}� I.ender, Lender
<br /> shall upply, no later than immediately prior to tl�c salc of the Propert }• or it. iicquisition by Lender, any Funds
<br /> held by Lender nt the time of application as a credit agssinst tl�c swns .ecured bi• this �Iortgage.
<br /> 3. Application of Paymeats. Unless npplicablc l:i��• provides othenvise, all payments received by Lender
<br /> under the Note und paragrapl�s 1 nnd 2 liereof shall bc applied by Lender first in payment of a�nounts payable to
<br /> I.ender by Borrower under paragrapl� 2 hereof, then to interest i�ayable on the ATote and on Future Advances, it
<br /> [ any, and then to the principal of tlie Note and to tl�e princiral of Futurc Advances, if any.
<br /> I 4. Charges; Lieas. Borrower sl�all pay all taxes, assessments and other charges, fines and impositions attrib-
<br /> utable to the Property which may nttain a priority over this 111ortgage, and ground rents, if any, at Lender's
<br /> option in the manner provided under paragraph 2 }iereof or by Borro�ver inaking payment, �vhen due, directly to
<br /> the payee thereof. Bonower shall promptly furnisl� to Lendcr all notices of amounts due under this pnragraph ,
<br /> and in the event Borrower shall makc payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br /> dencing such payments. Borrower shall nromptly discLarge any lien wl�ich has priority over this \lortgage ; pro-
<br /> � vided, that Borrower shall not be required to discl�arge any cucL lien so ]ong as Borrower shall agree in writing to
<br /> � the payment of the obligation secured by sucl� lien in :i inanner neceptable to I.ender, or shssll in good faith contest
<br /> � such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the eniorcement of
<br /> � the lien or forfeiture of the Property or any part thcreof.
<br /> � 5. Hazard Insuzanee. Borroµer shalt keep tl�e improvements no�s existing or hereafter erected on the Prop-
<br /> 0 erty insured againat loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br /> Lender may require and in such amounfs and for such periods as I,ender may requirc : provided , that, Lender s681t
<br /> � not require that the amount of such coverage exceed that amount of coverage required to pay the sums aecured 'by
<br /> OO this Mortgage.
<br /> � The insurance carrier providing tl�e insurance shall be chosen by Borrower subject to approval by Lender,
<br /> provided, that such approval shall not be unreasonably withlield. All premiums on insurance policies shsll be paid
<br /> st 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.
<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 Bonower to comply may, at option of Lender, constitute a default
<br /> under the terms of this Mortgage.
<br /> All insurance policies and renewals thereof shall be in tonn acceptuble to Lender and sliall include a standard
<br /> inortgage clause in favor of and in form acceptable to Lender. Lender shall have the riglit to l�old the policies snd
<br /> renewals thereof, and Borrower shall prompWy furnish to Lender all renewal notices and all receipts of paid pre- s
<br /> , miums. ?n the erQr.t 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 snd Borrower otherwise ugree in writing, insurance proceeds shall be applied to restoration or
<br /> repair of the Property dnmaged, provided such restoration or repair is economically feasible and the security of
<br /> thia Mortgage is not tliereby impaired. If such restoration or repair is not economicnlly feasible or if the security
<br /> of this Mortgage would be impaired, the insurance proceeds shall bc appiied to the sums secured by this Mortgage,
<br /> with the excess, if any, paid to Borrower. If the Yroperty is abancloned by Borrower or if Borrower fssils to zespond ""'
<br /> to Lender within 30 days after notice by Lender to Borrower thnt the insurance csrrier offers to settle a ciaim for
<br /> ineurance benefits, Lender is suthorized to collect and apply tlie insurance proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums secured bp this �Iortgage.
<br /> Unless Lender and Borrower otherwise agree in �vriting, any such application of proceeds to principal shaU '
<br /> not extend or postpone the due date of the inonthly installments referred to in paragraphs 1 and 2 hereof or change �k
<br /> the amount of such installments.
<br /> If under paragraph 18 hereof the Property is acquired by Lender, nll right, title and interest of Borrower in v
<br /> and to any insurance policies and in ancl to the proceeds thereof (to thc 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 /> � acquieition ehall pass to Lender.
<br /> 6. Preseroatioa �d Mmaten�ce of Pzoperty; Leaseholds; Coadomiaiums. Borrower shall keep the Prop-
<br /> ; erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br /> comply with the provisions of uny lease, if this \iortgage is on a ]easehold. If this �7ortgage is on a condominium
<br /> ' unit, Borrower shall perform sll of Borrower's obligations under the deciaration of condominium or msster deed,
<br /> � the by-lawa and regulations of the condominium project and constituent documents.
<br /> 7. Pzotactioa of Lendei s Security. If Borrower fails to perform the covennnts and agreements contained in
<br /> this blortgage, or if any action or proceeding is commenced which materially sffects Lender's intereat in the Prop-
<br /> ! erty, including, but not limited to, eminent domain, insoh•ency, code enforcement, or arrangements or proceed-
<br /> ' j inge involving a bankrupt or decedent, then Lender at I.ender's option, upmi notice to Borrower, may make such
<br /> i appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br /> � not limited to, diabursement of reasonable attorney's fees and entry upon the Property to make repairs. Any :
<br /> amounts diabursed by Lender pursuant to this paragraph 7, �vith interest thereon , shall become rsdditional indebt-
<br /> ! edness of Borrower secured by this �iortgage. Unless Borrower and 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 /> eat 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 umounts shall besr interest st the highest rate permiasible by
<br /> 1 applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any expense or do any act
<br /> � hereunder.
<br /> # 8. Inspeetioa. Lender �nay make or cause to be �nade reasonable entries upon and inspections of the Prop-
<br /> `' erty, provided that Lender shall gice Borrow•er notice �u•im• to :tin}• sucl� inspection �pecitping reasonable cause
<br /> � therefor related to I,ender's interest in the Property.
<br /> ; 9. , Coudemaation. The proceeds of nny a�varci or claim For damages, direct or consequentiai, in connection �
<br /> with any condemnation or other tnking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br /> ; tion; are hereby assigned and ahall be psid to Lender. " �u.
<br /> � In the evenE of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mort- �
<br /> � gage, �vith the excess, if any; paid to Borrower. In t6e event of a partial taking of the Propehy, unless Borrower ; •�
<br /> � and Lender otherwise agree in writing, there el�alt be applieci to the sums secured by this rlortgage such propor `
<br /> ` � xion of the proceeds ss is equsl to thst pioportion which the amount of the sums secured by this Mortgage imme- e` '
<br /> ' ., � diately prior to the date of taking bears to the fair 3narket value of tLe Property immediately prior to the date of � '.�¢
<br /> ; teking, with the'balance of'the proceeds paid to Borrower. ° . � ' �
<br /> 3 If:tfie.Property is abandoned by Borrower or if after notice by I,ender to Bonower that the condemnor offers -•r^ �' :' - '�
<br /> ; to make anraward or settle a claim for dsmages, Borrower fails to respond to Lender �cithin 30 days of the date
<br /> of such notice, Lender is suthoriaed to collect and apply the proceeds at Lender's option either to restoration or
<br /> repair of the Prope;ty or to the suma secured by this \tortgsge.
<br /> Unless Lender and Bonower other�vise agree in �vriting, any such application of proceeds to principal sha❑ �
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