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If under Paragraph 17 hereof the Propertyis sold or the Property is otherwise acquired by Lender, Lender shall apply, no
<br />later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of'
<br />u application as a credit against the sums secured by, this Mortgage.
<br />S3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and -
<br />Paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender.by Borrower under Paragraph
<br />2.hereof, then to interest payable on the Note, and then to the principal of the Note.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the
<br />Property which may attain a priority over this Mortgage, at Lender's option in the manner provided under Paragraph 2 hereof
<br />or. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to •Lender all notices,
<br />of amounts due under this Paragraph and, in the event Borrower shall make payment directly, Borrower shall promptly furnish
<br />to-.L-ender-receiptsevidencing-such payments. Borrower shall promptly discharge any lien which has priority over this- Mortgage;
<br />other than prior Mortgage against the Property executed -by -Borrower -in favor -of EVANS- PRO DUC-T-S-COMPANY-,-provided-that-- - -
<br />the Borrower shall not be required to discharge any. such lien so long as Borrower shall agree in writing to the payment of -the
<br />obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforce-
<br />ment of such lien in legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any
<br />part thereof. Borrower shall not allow any default,lo exist under any prior mortgage against the Property.
<br />5. Hazard Insurance. Borrower shall keep the- improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term"extended coverage", and such other hazards as Lender may require and
<br />in.such amounts and for such periods as Lender may require;" provided that Lender shall not require that the amount of such
<br />coverage exceed `that amount of coverage required to pay the sums; secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval,by Lender; provided, that
<br />such approval shall not be unreasonably withheld.. All premiums on insurance policies shall be paid by Borrower making pay-
<br />ment, when due, directly to the insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgagee clause .
<br />in favor of and in form acceptable to Lender.. Lender shall have the right to hold the policies and renewals thereof, and Borrower
<br />shall promptly furnish to Lender all renewal notices, the policies and any renewals thereof and all receipts of paid premiums.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender may make proof of loss
<br />if not made promptly by Borrower.
<br />In the event of a loss, the amounts collected shall be payable to the Lender and at the option of the Lender may be used in any
<br />one or more of the following ways: (1) applied upon the Indebtedness secured hereby whether such Indebtedness be matured
<br />or unmatured; (2) used to fulfill any of the, covenants contained herein as the Lender may determine; (3), used to replace or
<br />restore the Property to a condition satisfactory to Lender; or (4) release the same to the Borrower.: Such application of proceeds
<br />to the Indebtedness shall not extend or postpone the due date of the monthly installments referred to in Paragraph 1, -hereof or
<br />change the amount of such installments. If under Paragraph 17 hereof the Property is acquired by Lender, all right, title and
<br />interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to the -Property
<br />prior to the sale or acquisition shall pass to Lender to the extent of the sum secured by this Mortgage immediately prior to such
<br />sale or acquisition.
<br />6. Preservation and Maintenance of Property.. Borrower shall keep the Property in good repair and shall not permit or
<br />commit waste, impairment, or deterioration of the Property and shall comply with any restrictions affecting the Property.
<br />7. Protection of Lender's Security_. If Borrower fails to perform the covenants.and agreements contained in this Mortgage, or
<br />if any action or proceeding is commenced which materially affects Lender's interest in -the Property, including but not limited to,
<br />eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender,
<br />at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is
<br />necessary to protect Lender's interest, including but not limited to, disbursement of reasonable attorney's fees and entry upon.
<br />the Property to make repairs. Any amounts disbursed by Lender pursuant to this Paragraph 7 with interest thereon shall become
<br />additional Indebtedness of Borrower secured by this Mortgage to the -extent permitted by applicable law. Unless Borrower and
<br />Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment
<br />thereof, and shall bear interest from the date of disbursement at the rate of 10% unless payment of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by applicable law.
<br />Nothing contained in this Paragraph 7 shall require Lender to incur any expense or do any act hereunder.
<br />8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property.
<br />9. Condemnation. Borrower agrees that all awards heretofore or hereafter made by any public or quasi -public authority to
<br />the present and all subsequent owners of the Property covered by this Mortgage by virtue of an exercise of the right of eminent_
<br />domain by such authority, including any award for a taking of title, possession or right of access to a public way, or for any
<br />change of grade of streets affecting said Property, are hereby assigned to the Lender; and the Lender at its option is hereby
<br />authorized, directed and empowered to collect and receive the proceeds of any such award or awards from the authorities making
<br />the same and to give proper receipts and acquittances therefore, and may, at the Lender's election, use such proceeds in any one
<br />or more of the following ways: (1) apply the same or any part thereof upon the Indebtedness secured hereby, whether such
<br />Indebtedness then be matured or unmatured; (2) use the same or any part thereof to fulfill any of the covenants contained herein
<br />as the Lender may determine; (3) use the same or any part thereof to replace or restore the Property to a condition satisfactory
<br />to the Lender; or (4) release the same to the Borrower; and the Borrower hereby covenants and agrees to and with the Lender,
<br />upon request by the Lender, to make, execute, and deliver any and all assignments and other instruments sufficient for the purpose
<br />of assigning all such awards to the. Lender free, clear, and discharged of any and all encumbrances of any kind or nature whatso-
<br />ever. The application of such proceeds to the Indebtedness shall not extend or postpone the due date of the monthly.installments
<br />referred to in Paragraph 1 hereof or change the amount of such installments.
<br />10. Borrower Not Released. Extension of the time for payment or modification or.amortization of the sums secured by this
<br />Mortgage granted by Lender to Borrower or to any successor in interest of Borrower,shall not operate to release, in any manner,
<br />the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings
<br />against such successor, to refuse to or to extend time for payment, or otherwise to modify amortization of the sums secured by this
<br />Mortgage by reason of any demand made by the original Borrower or Borrower's successor's in interest. .
<br />11. Forebearance by Lender Not a Waiver. Any forebearance by Lender in exercising any right or remedy hereunder, or .
<br />otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any right or remedy hereunder. The
<br />procurement of insurance or the payment of taxes or other liens or charges, by Lender shall not be a waiver of Lender's right to
<br />accelerate the maturity of the Indebtedness secured by this Mortgage.
<br />12. Remedies Cumulative. All remedies provided in this Mortgage are distinct and cumulative to any other right or remedy
<br />under this Mortgage or afforded by law or equity, and may be exercised concurrently, independently, or successively.
<br />13. Successors and Assigns Bound; Joint and'Several Liability; Captions. The covenants and agreements herein contained
<br />shall bind and the rights hereunder shall inure to the respective successors and assigns of Lender and Borrower. All covenants
<br />and agreements of Borrower shall be joint and several. The captions and headings of the Paragraphs of this Mortgage are for
<br />convenience only and are not to be used to interpret or define the provisions hereof. In the event the ownership of the Property
<br />or any part thereof becomes vested in a person other than the Borrower, the Lender may deal with such successor or successors
<br />in interest with reference to this Mortgage and the Indebtedness hereby secured in the same manner as with the Borrower without
<br />in any manner vitiating or discharging the Borrower's liability hereunder or upon the Indebtedness hereby secured; and in the
<br />alternative, at the option of the Lender, Lender may declare that the unpaid balance of the Indebtedness is immediately due and
<br />payable.
<br />14. Notice.. Any notice from Lender to Borrower provided for in this Mortgage shall be by certified mail to Borrower at the
<br />Property address stated below or at such address as Borrower may designate to Lender by certified mail to Lender's address,
<br />except for any notice given to Borrower in the manner prescribed by applicable law as provided in Paragraph 17 of'this Mortgage.
<br />15. Uniform Mortgage; Governing Law; Severability. This form of Mortgage combines uniform covenants for national use
<br />and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
<br />property. This Mortgage shall be governed by the. law of the, jurisdiction in which the Property is located. In the event that any
<br />provision or clause -of this Mortgage or the Note conflicts with applicable law, such conflict shall not affect other provisions of
<br />this Mortgage or the Note which can be given effect without the confli6ting provision, and to this end the provisions of this
<br />Mortgage and the Note are declared to be severable.
<br />16. Borw
<br />roer's Copy. Borrower shall be furnished a.conformed copy of this Mortgage at the time of execution or after
<br />recordation hereof.
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