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<br /> If under paragraph 18 hereo[ the Property is sold or the Property is otherwise acquired by I.ender, Lender
<br /> shall apply, no later than immediately prior to tl�c salc of the Propert�• or its acryuisition Iry Lender, any Funds
<br /> held by Lender at the time of application as a credit a�ainst the sum� secured by thi. VLortg�ge.
<br /> 3. Applieation of Paymeata Unless aliplicabic l:nc provides othenvi�e, all payments received by Lendet
<br /> under the Note and paragraphs 1 and 2 hereof sl�all hc applied by I,ender first in payment oP flmounts payable to
<br /> Lender by Borrower under paragraph 2 I�ereof, then to interest puyable on the Note and on Future Advances, if
<br /> � any, and then to the principal of the Note and to the principal ot Future Advances, if 3ny.
<br /> ? 4. Charges; Lieas. Borrower sl�all pny All taxes, assessments nnd other charges, fines and impositions attrib-
<br /> Q ut,able to the Property which may �ttain a priority over tl�is �Iortgage, and ground rents, if any, at Lender's
<br /> ;,� option in the manner provided under parugraph 2 hereof or by Borrower making pnyment, when due, direcWy to
<br /> �,'u the payee thereof. Borrower shall promptly furnish to Lender ali notices of amoimts due under this paragraph ,
<br /> �� and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br /> ;= dencing sucl� payments. Borrower shall promptly discl�arge uny lien �vhicli has priority over this \4ortgage ; pro-
<br /> � vided, that Borrower shall not be required to disc►iarge any such lien so ]on� as Borrower s6sil agree in writing to
<br /> � the payment of the obligation securecl by such lien in c� manner acceptable to Lender, or shull in good faith contest
<br /> auch lien by, or defend enforcement of such lien in , legal proceedings �vliich operate to prevent the entorcement of
<br /> � the lien or forfeiture of the Property or uny part thereof.
<br /> pp S. Hazard Insur�ee. BorroH-er shal! keep tl�e improvements no«• existing or liereafter erected on the Prop-
<br /> n erty insured ssgainst loss by fire, hazards included within the term "extended coverage", and such ot6er hazards as
<br /> Len@er may reqaire nnd in such amounts nnd for sucl� periods as Lender rnay require ; provided , that Lender aha21
<br /> not require that the amount of such coverage exceed that amount of coverage required to puy the sums secured 'by `
<br /> � this Mortgage.
<br /> ' The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender ;
<br /> provided, that such approval sha11 not be unreasonably withheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under paragrspl� 2 hereof or hy Borro�ver �naking payment, when due,
<br /> directly to the insurance carrien
<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 /> ' AII insurance policies and renewals thereof shnll be in fonn acceptable to I,ender and shnll include a stsndard
<br /> mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br /> i renewals thereof, and Borrower shnll promptly furnish to Lender all renewssl notices und all receipts of paid pre-
<br /> E miums. In the event of loss, Borrower shall give promE�t notice to the insurancc enrrier and Lender, and Lender
<br /> may make proof of loss if not made promptly by Bonower.
<br /> : � Unless Lender and Borrower otherwise agree in writing, insurnnce proceeds shall be applied to restoration or
<br /> , repsir of the Property damaged, provided sucli restoration or repnir is econornicnlly ieseible and the security of
<br /> ! thia Mortgage is not thereby impaired. If such restorntion or repair is not economicnlly feasible or if tlie security
<br /> i of this \�ortgage would be impaired, tl�e ingurance proceeds shall be appIied to thc sums secured by this Mortgage,
<br /> � with the excess, if nny, paid to Borrower. If the Yropeity is abandoned by Borrower or if Borrower fails to respond
<br /> � to Lender within 30 days after notice by Lender to Borrower that thc insurnnce 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 /> ' j restoration or repair of the Property or to the sums secured by tl�is \Iortgage.
<br /> • .a Unless Lender and Borrower othenvise agree in �vriting, any suc}i applic�tion of proceeds to principal shall '
<br /> Z not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change �`
<br /> 1 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 policies and in and to the proceeds thereof ( to the extent of tfie sums secured by this Mort-
<br /> : � gage immediately prior to such sale or acqui�itionj resulting from da:nage to the Yroperty prior to the sale or
<br /> : ; acquieition shall pass to Lenden
<br /> '- j 6. Preservation �d Mmaten�ace oi Properiy; Leaseholds; Condominiums. 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 nny lease, if this �Iortgage is on a lcasehold. If this Mortgage is on a condominium
<br /> unit, Bonower shall perform all of Borrower's obligstionx under t6e declaration of condominium or master deed,
<br /> � the by-Iaws and regula£ions of the condominium project flnd constituent docttments.
<br /> +� 7. Proteetioa of Lender's Security. If Borrower fails to perform the covenants and agreements contained in
<br /> this Mortgage, or if uny action or proceeding is commenced which materially affects I.ender's interest in the Prop-
<br /> � erty, including, but not limited to, eminent doniuin , insoh•ency , code enforcement, or arrangements or proceed-
<br /> t ings involving a bankrupt or decedent, then Lender at 1.ender's option , upon noticc to Borrower, may make such
<br /> appearances, disburse snch sums snd take such action ns is necec<ary to protect Lender's interest, including, but
<br /> , ; not limited to, disbursement of reasonable attorney's fees and entry upon the Yroperty to make repsirs. Any
<br /> .; amounts disUursed by Lender pursuant to this paragraph 7, �vitli interest thereon , sha❑ become additional indebt-
<br /> ` � edness of Borrower secured by this Viortgage. Uniess Borrower and Lender agree to other terms of payment , such
<br /> '' amounts shall be payable upon notice ftom Lender to Borrower requesting payment thereof, und shsll bear inter-
<br /> ,� eet from the date of diabursement 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 nmounts shall bear interest at the highest rate permiasible by
<br /> '; applicable law. Nothing contained in this paragraph 7 shnll require I.ender to incur uny expense or do any act
<br /> :� heteunder.
<br /> ! 8. Inspsctioa. Lender may make or cuuse to lic mndc reaconable entries upon and inspections of the Prop-
<br /> � erty, provided that Lender shall give Borrower notice ��rim• to 117�' SUCII inspection cpecifying reasonahle cause
<br /> � therefor related to Lender's interest in the Property.
<br /> � 9. Coademaation. The proceeds of any award or claim for damsges, direct or consequential, in connection
<br /> with any condemnation or other tsking of the Property, or part thercof, or for conveyance in lieu of condemnn-
<br /> t '� . tion, are hereby assigned and shal! be paid to Lender. "1;,
<br /> In'the event of a total taking of the Property, tlie proceeds sliall be applied to the sums secured by this vIort- �
<br /> gage, with the excess, if any, paid to Borro�ver. In the event of a partial tuking of the Property, unless Borrower " , .�
<br /> ` 9 and Lender othera*ise agree in writing, there sl�sll be applied to the sums secured by this 34ohgage such prapor-
<br /> ;� ' tion of the proceecls as is equal to that praportion which the amount of the sums secured by this Mortgage imme- � ,�` ", "
<br /> „ � dlately prior to the date of taking besre to tlie fair inarket value of t1�e Property immediately prior to the date of ;' ?y ' ' F �
<br /> y
<br /> takmg, wif,htlie baience of':the proceeds paid to Borrower. , �
<br /> 'i If tht'Pzoperty is abandoned by Borrower or if after notice Uy Lender to Borrower that the condemnor offers � ,;. � ,. ;'"'
<br /> ' to tqake an award or settle a claim for damages, Bonower fnils to respond to Lender within 30 days ot the date
<br />� ".' of'such notice; I:ender is authorizeci to collect nnd apply thc procceds at Lender's option cither to re�Loration or
<br /> r ^ repair of the Property or to the aume secured by tliis \iortgage.
<br /> Ualess Lender and Borrower ot6envise agree in writing, any such application of proceede to principal shall
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