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<br /> If imder paragrssph 18 hereof thc Property is sold or thc Yroperty is othertvisc acquired by Lender, Lender
<br /> �hall apply, no later than immediatcly prior to tk�c ,alc oC tlic YroE�crtp or it� acqui�ition by 1,ender, :tiny Funds
<br /> lield by I.ender a�t the time oF application as u cmdit againvt tlie ,um� .ecured b�� this �Iortgssbc.
<br /> 3. Application of Payments. Unless applicflblc la«• �irovides otherwise, :ill payinents received by Lender
<br /> undertheNote and paragrapl�s 1 anct 2 hereof shall bc applied by T.endcr first in pa.�ment of amounts payuble to
<br /> Lender by Borrower under paragraph 2 liereof, then to intcrest pi�yal�lc on thc Notc and on Futurc Advttinces, if
<br /> any, and then to the principal of the Note anct to the principnl of I'uture :1d��nnces , if any.
<br /> 4. Charges; Liens. Borroryer st�all pay nll taxes , assessments and other charges, fines and impositions attrib-
<br /> utable to the Property which may attain ss �.�riority over this �Iortguge, and ground rents, if any, so Lender's
<br /> option in the manner provided under-pssragraph 2 hereof or by Borron•er �naking pa,ytnent, when due, directly to
<br /> the payee thereof. Borrower ehsll promptly furnisl� to t.endcr all notices of atnounts duc i�nder U�is para�raph ,
<br /> �O and in the event Borrower shall makc payme��t directly, Borro��•er �hall promptly Curnish t.o Lenrier receipts evi-
<br /> � dencing such payments. Borrower shnll prom��tly discl�urge any lien which hns priority over this \Iortgage ; pro-
<br /> Ct2 vided, that Borrower shall not be required to ctischurge :iny such lien so long as Fiorro�ver shall a�rce in writing to
<br /> � the payment of the obligation secureci by such lien in .� uinnner accept:ible to Lender, or shal ! in good fAith contest
<br /> t7 auch lien by, or defend enforcement of such lien in , legal proceedings �chich operatc to pre��ent the entorcement of
<br /> ..""'� the lien or forfeiture of the Yroperty or nny part thereof.
<br /> 5. Hazard Insurance. Borrower shnll keep tLe im�n•o��emen[s no�s existing a• hereafter erected on the Prop-
<br /> r erty insured against loss by f9re, hazards included �vithin the term "extended coverage", and such otlier hazards as
<br /> � Lender may require und in such umounts and for such periori. as Lender ma�� require : provided , that Lender shsll
<br /> ^ not require that the amount of such co�•ersge exceed thnc :�mount of coverage requireci to �iay the aums secured 'by
<br /> this Mortgage.
<br /> The insurance cnrrier providing the insurance shall be choseu by I3orro�ver subject to approvai Uy Lender ;
<br /> provided , thut such approvat shall not be unreaconably �vithheld. All premiums on insurance policies shall be paid
<br /> at Lender's option in the manner provided under t�aragrxph 2 hereof or by Borrower making pnyment, 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 Borrower to comply may, at option of Lender, constitute a default
<br /> under the terms of this Mortgage.
<br /> All insurance policies und renewals thereot �hall bir in forin acccpt:ible to I.ender and sl�nll include a standard
<br /> inortgnge clause in favor of and in form acceptable to 1.ender. Lcnder shall ha�•c thc rigLt to hold the policies and
<br /> renewals thereof, and Borrower shall promptly Curnish to Lendcr all renewul noticrs und ull receipts of puid pre-
<br /> miums. In the event of loss, Borrower shull gi�-e prompt not.ice to [ hc insurance carrier and Lender, und t.ender
<br /> may make proof of loss if not made promptly by Borro�ver.
<br /> Unless Lender and Borro�ver othenvise agrec in writing, ]i]gW 3t)CC procceds shall be applied to restoration or
<br /> repair of the Property damaged , provideci such rc�toration or repair i, economicnlly feasible aud the security of
<br /> this Dlortgage is not thereby impaired. If such restor:itio�i oi• repair is not econoinically feasible or if the security
<br /> of this �lortguge would be impaired, the insurance procecds ahall De spplied to the sums secured by this Mortgage,
<br /> with the excess, if any, paid to Borrower. If thc Yroperty i. abundoned b�• Iiorrower or if I3orrower fuils to respond
<br /> to Lender within 30 days after notice by Lender to Borrower thnt thc insurnnce carrier offers to settle ss claim for
<br /> insurance benefits, Lender is auihorized to coliect und applp the insurance proceeds at Lender's option either to
<br /> restoration or repair of the Property or to the sums sccured b�• this \ lortgage. �
<br /> Unless Lender and Borrower otherwise a�ree in writing, any such application of proceeds to principal shall
<br /> not extend or �ostpone the due date of the inontLly inscall�nents :•eferred to in paragraphs 1 and 2 hereof or change $
<br /> the amount of such installments.
<br /> If under paragraph 18 hereof the Yroperty is acquired by Lender, 3ll right, title and interest of Borrower in
<br /> and to any insurance policies and in and to the proceeds tl�ereof (to tlic extent of the sums secured by this Mort- 1
<br /> gage immediatel3• prior to sucli sale or acquieitionl re�i�lting from �lum:tige to thc Property prior to the sale or
<br /> acquieition shall pass to Lender.
<br /> 6. Preservation �d Mmnteacmce of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br /> erty in good reoair and shall not permit or commit �vaste, impairment , or deterioration of the Property and shall
<br /> comply with the provisions oi any lense, if this \Iortgage is ot� n le:�seliold . Tf this \-Sortgage is on n condominium
<br /> unit, Borrower sholl perform ail of Borrower's obligations iinder the declaration o( condominium or master deed ,
<br /> the by-laws snd regulations of the wndominium project uc�d constituent documents.
<br /> 7. Pzoteetion o! Leader's Seeurity. If Borrower fails to perform the coveni;nts and agreements contained in
<br /> this Vlortgage, or if any action or proceeding is co�nmenced which �uateriallv affects I.ender's interest in the Prop-
<br /> erty, including, but not limited to , eminent docnaiu , in�oh•ency , code enforce�nent, or arrangements or proceed-
<br /> ings involving a bankrupt or decedent, then Lender at Lender's option, upon noticc to Borrower, may xnake such
<br /> appearances, disbutse sucl� sums and take sucl� actinn as is neceesary to protect I,ender's interest, including, but
<br /> not limited to, disbursement of reasonabie attorney's fees and entry upon the Property to make repairs. Any
<br /> amounts diebursed by Lender pursuant to this paragraph 7, �vitli interest thereon , shall become udditionai indebt-
<br /> edness of Bonower secured by this biortgage. Unless Borro�ver and Lender agree to other terms of payment, such
<br /> amounte ahall be payable upon notice from Lender to Borrower requesting p�yment thereof, und shall besr inter-
<br /> est from the date of disbursement at the rate stated in the IQote unless payment of interest at such rate would be
<br /> contrery to applicsble law, in which event such aamounts shall bear interest at the highest rate permissible by
<br /> applicable law. Nothing contained in this paragraPh 7 shnil require I,ender to incur any expense or do nny act
<br /> hereunden
<br /> 8. Iaspeetion. l.ender mav makc or cause to hc mn�ic rca�onable entries upon anci inspections of the Prop-
<br /> . erty, provided that Lender chall give Borro�eer notice ��rior to an}� �u��h insrect.ion s��ecifving reasonable cause
<br /> ; therefor relnted to I,ender's interest in the Property_
<br /> ' : 9. Condemaation. The proceeds of any a�vard or rlaim tor dainnges , direct. or consequential, in connection !
<br /> ; with any candemnation or other taking of the Property , or ��art tl�ereof , or for co�n•eyanee in lieu ot aondemnu-
<br /> . tion, are hereby assigned and shall be paid to Lender. r..�---; � ; ;
<br /> In the event ot u total taking of the Property. the proeced� ehall I �c applied to Qhe sums secured by this VLort- D ;
<br /> gage; witk the excess, if any, paid to Borro�ver. In the event of a partial taking of the Property, unless Borrower � {' '� '
<br /> and 'Lender otherwise u ree in writin there shall be u > >lic<t tu tl�e smus secured by this \lort a e such ' �
<br /> B B, ( I g B Propor- w w�
<br /> tion of the proceede as u equal to that praportion which the amaunt of the sums secured by this �lortgage imme-
<br /> diately prior to ttie date of takin� bearr, to the fair market value ot the Property immediately prior to the dnte of ` ;`�, � '
<br /> talring, witl� the balattce of the proceeda paid to Borrower. , " A�
<br /> If the Pmperty is abandoned by Bonower or if nfter notice by Lender to Borron•er that the condemnor offers . ` ;�.
<br /> to mske aa award or settle a claun for damages, I3orrower tails to rexpond to Lender within 30 duys of the date
<br /> of such notice, Lender is suthorized to collect snd apply the proceedn ut I,ender's option either to restoration or
<br /> repair o€ the Property or to the euma secured by this \fo�tgage.
<br /> T1nle�a T,ender and BornweT c�thenrise ngrec in ti�•riting, an�- such application of procceds i,o � irinci�ul nLall
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