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<br /> If under paragraph IS hereof thc Property is sold or ihe Property is othenvise acquired by I.ender, Lender
<br /> shull apply, no later than immediately prior to t.hc snlc of thc Yro�icrty or its .icquisit,ion b�• I.ender, any Funds
<br /> 4eld by Lender at the time of application as a credit agninst thc sums .ceured b�• this �iortgaga
<br /> 3. Application of Payments. Unless applicublc 1�;��� providec othenvise, atll payments received by Lender
<br /> under the Note snd pnragrapl�s 1 nnd 2 hereof shall bc npplied by I.ender first in payment ot amounts payuble to
<br /> ' ' Lender by Borrower under paragrapli 2 Lereof, then to interest payublc on the Notc and on Future Advances, if
<br /> r� sny, and then to the principal of the 1Tote and to the principnl of Futurc Advances , if any.
<br /> I � 4. Ch�ges; Lieas. Borrower shal! pay n.11 taxes, nssessments and other chnrges, fines und impositions nttrib-
<br /> � ntable to the Property which may attain a priority over tl�is Vlortgage, and ground rents , if any, at Lender's
<br /> option in the manner provided under paragraph 2 hereof or by Borro�vcr �nssking payment, �vhen due, directly to
<br /> the payee thereof. Borrower shalt promptly furnish to Lendcr all notices of amounts due nnder this paragrsph ,
<br /> snd in the event Borrower shall make payment directly, Borro�cer sh.till promptly furnish to Lender receipts evi-
<br /> '. � dencing sucl� payments. Borrower sh�,ll Promptly discharge any lien which l�as priority over this \Zortgage ; pro-
<br /> ' 3 vided, that Borrower shall not be required to discl�arge any such lien so ]ong as Borrower shall agree in writing to
<br /> ; the pnyment of the obligation secured by such lien in :� �nanner acceptable to LenJer, or shall in good faith contest
<br /> j such lien by, or defend enforcement of suclt lien in, legal proceedings �vhich operate to prevent the en[orcement of
<br /> , :; the Iien or forfeiture of the Property m• any part tl�ereof. :
<br /> % 5. Hazard Insuraace. Borrower shall keep tl�e improvements no�c existing or hereafter creeted on the Prop-
<br /> � erty ineured ageinst loss by &te, hazards inetuded within the term "extended coverage", and such ot{ier hazards as
<br /> � Lender may require nnd in such xmounts nnd for such periods as Lender mny require ; provided , that Lender shall
<br /> � not require that the umount of such coverage exceed that amount of coverage required to pay the sums secured 'by
<br /> " + this Mortgage.
<br /> I The insurunce carrier providing tl�e insurance shall be chosen by Borrower subject to approval by Lender ;
<br /> provided , that such approvaf shall not be unreasonably �vithheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under parugrapli 2 hereof or by Borrower making payment, when due,
<br /> directly ta the insurance carrier. ;;
<br /> � In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect r �,
<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 /> . t secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default r . '.> :
<br /> , t under the terms of this Mortgage.
<br /> � All insurance policies and renewals thereof ehall be in form acccptable to Lender und shall include a standard -
<br /> � mortgage clsuse in favor of and in form acceptable to Lender. Lender shall have the ri�ht to liold the po]icies and p
<br /> � renewals thereof, and Borrow•er shall promptly furnish to Lender all renewal notices and all receipts of paid pre- : ,
<br /> miums. In the event of loss, Borro�ver shall give prompt notice to the insurance carrier and Lender, nnd Lender � `
<br /> may make proof of losa if not made promptly by Borro�ver. ; ' '
<br /> Unless Lender and Borrower othenvise agree in writing, insura��ce proceeds shall be applied to restoration or � ^
<br /> � repair of the Property damaged, pror•ided such restoration or repuir is economicnlly feasible und the security of �� . 4 :,
<br /> ! this Mortgage is not thereby impaired. If sucl� restorntion or repair is not economically feasible or if the security �
<br /> { of this Mortgage would be impaired, the irisurance proceeds shnll be spplied to thc sums secured by this Mortgage,
<br /> _ ,s with the excess, if any, paid to Borrower. If thc Yroperty is abnndoned by Borroc� er or if Rorrower fails to respond y i'
<br /> to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br /> ineurance benefits, Lender is authorized to collect and apply the insurnnce proceeds at Lender's option either to
<br /> reatoration or repair of the Property or to the sums secured by tl�is \Iortga�e. �,
<br /> Unlesa Lender and Borrower other�vise agree in �vriting, any such application of proceeds to principal shall `
<br /> not extend or postpone the due date of the monthly instalhnents referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of such installments.
<br /> IF under paragrsph 18 hereof the Property is 3cquired by Lender, all right, title and interest of Borrower in =
<br /> and to any insurance policies and in and to the proceecls thereof (to the extent of the sums secured by this ll�fort- '
<br /> gsge immedi$tely prior to such salc or acquicition ) resulting frmn dumage to the Property prior to the sa]e or
<br /> acquisition shall psss to Lender.
<br /> * , 6. Presezvation �d Mmaten�ce of Property; Leaseholds; Condominiums Borro�ver shall keep the Prop- :
<br /> q� erty in good repair und shall not permit or commit �vlste, impairment, or deterioration of the Property and shall
<br /> � comply with the provisions of any lease, if this Jlortgnge is ou a leaseliold. If this \Zortgage is on a condominium
<br /> Qj unit, Borrower shall perforn� ail of Borrower's obligafions iinder the declaration of condominium or master deed,
<br /> � the by-laws and regulations of the condominiun� project and constituent documents. ,:
<br /> � 7. Protection of Lendei s Security. If Borro�ver fails to perform the cov�nants and ngreements contained in
<br /> � Lhis �'Iortgage, or if any action or proceeding is commenced �vhict� tnaterially affects Lender's interest in the Prop-
<br /> � erty, including, but not limited to, eminent domain , insoh�encp , code enCorcetnent, or arrangements or proceed-
<br /> inge involving a bankrupt or decedent, then Lender at 7.ender's• option , upon noticc to Borrower, muy make such
<br /> r appearances, disburse such sums and take such action ss is nccessary to protect Lender's intereat, including, but
<br /> not limited to, disbursement of reasonable attorney 's Cees and entry upon the Property to �nake repairs. Any
<br /> � �xnounts disbursed by Lender pursuant to this paragrapli 7, �vitli interest thereon , shall become additional indebt-
<br /> ^ edness of Borrower secu;ed by this �iortgage. Unless Borro�ver and Lender agree to other terms of payment, such
<br /> amounts ah:till be psyable upon notice from Lender to Borrower requesting payment thereoF, and shall bear inter-
<br /> est from the date of disbursement at the rate stated in the Note unleas payment of interest at such rate would be
<br /> contrary to applicable ]aw, in which event such lmounts shsll bear interest at the highest rate permissible by
<br /> applicable law. Notl�ing contained in this paragraph 7 shnll require 1.ender to incur n.ny expense or do any act
<br /> hereundea
<br /> ' � 8: Itiapeetion. Lender may make or cau=e to he mn�le reusonnble entries upon anci inspectione of the Prop-
<br /> erty, provided that Lender shall give Borron�er noticc ��I'107� t0 il�l}' �Urll incpecf,ion s�ecifping reasonable cause
<br /> therefor related to Lender's inte-eat in the Property. �
<br /> 9. Coademnation. The proceeds of any award or claim for damuges, direct or consequential, in connectian -
<br /> with any condemnation or other taking of the Propert,V. or part thereof, or for com•eyance in lieu of condemna- ° z
<br /> tion, are hereby. assigned and shall be paid to Lender. � ;
<br /> In the event of a total taking of the Property, the ��rocceds sl�nll be applied to the swns secured Uy this :blort- � � '
<br /> gage, with the excess, if any, paid to Borrower. In tl�e event of a partiul tnking of the Property, unless Borrower '
<br /> ' and Lender otl�envise agree in writing, th�re shall be applied to the sums secured by this �Iortgage such propor- : � '
<br /> '_� ti,on of the proceeds es is equal to that pmportion which the amouni of the sums secured by this Mortgage imme- ��'r;�;.
<br /> diately prior, to the.date oL, tal:ing bears to tlie fair tnarket value of tLe Property immediately prior to the date of ` �� ��
<br /> ` taking, with the' balance of the proceeds paid to Borrower. "'_,� °�;�
<br /> '' . IftheP ' e ,.ri.: _ :
<br /> � r4p tEy is sbandonecl by Borrower or if after notice by I.en�+er to Borrower that the condemnor offers
<br /> � to make en awerd or settle a claim for dainages, Borrower fails to i•e,poi�d to Lender �vithin 30 days oi the date .
<br /> ;. ' of.such notice, Lender is authorized to coAect und apply the proceeds st I.ender's option either to restoration ar
<br /> � repsir of;the Property or to tl�e suma secured by Ehis ltortgage.
<br /> , � Unless Leader and Borrower othernise agree in �vriting. any such application �f Proceeds to principal ehnll �
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