|
<br />200606200
<br />
<br />Account No.: 940-2-390-539318
<br />hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices
<br />and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to
<br />restoration or repair of the Property damaged, provided such restoration or repair is economically feasible,
<br />and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically
<br />feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to
<br />the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned
<br />by Borrower, or if Borrower fails to respond to Lender within thirty (30) days from the date notice is mailed
<br />by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is
<br />authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of
<br />the Property or to the sums secured by this Mortgage.
<br />
<br />Unless Lender and Borrower otherwise agree in writing, such application of proceeds to principal shall
<br />not extend or postpone the due date of the payments referred to in paragraph 1 hereof or change the
<br />amount of such payments. If under paragraph 20 hereof the Property is acquired by Lender, all rights, title
<br />and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from
<br />damage to the Property prior to the sale or acquisition shall pass to Lender to the extent ofthe sums secured
<br />by this Mortgage immediately prior to such sale or acquisition.
<br />
<br />If all or part of the Property is damaged or destroyed by a third party and sums are due from that party
<br />or its insurer as a result, whether due to judgment, settlement or other process, those sums shall be applied
<br />in the same manner as insurance proceeds under this clause.
<br />
<br />5. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit
<br />Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit
<br />impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage
<br />is on a leasehold. Ifthis Mortgage is on a unit in a condominium or a planned unit development, Borrower
<br />shall perform all of Borrower's obligations under the declaration of covenants creating or governing the
<br />condominium or planned unit development, the bylaws and regulations of the condominium or planned
<br />unit development, and constituent documents. If a condominium or planned unit development rider is
<br />executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such
<br />rider shall be incorporated into and shall amend and supplement the covenants and agreements of this
<br />Mortgage as if the rider were a part hereof.
<br />
<br />6. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements
<br />contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's
<br />interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or
<br />arrangements or proceedings involving a bankrupt or decedent, then Lender, at Lender's option, upon
<br />notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary
<br />to protect Lender's interest, including, but not limited to, hiring an attorney to appear in the action or
<br />proceeding and entry upon the Property to make repairs.
<br />
<br />Any amounts disbursed by Lender pursuant to this paragraph 6, with interest thereon, shall become
<br />additional indebtedness of Borrower secured by this Mortgage unless otherwise provided in the
<br />Agreement. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable
<br />upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of
<br />disbursement at the rate payable from time to time on the outstanding principal under the Agreement,
<br />unless payment of interest at such rate would be contrary to applicable law, in which event such amounts
<br />shall bear interest from that date of disbursement at the highest rate permissible under applicable law.
<br />Nothing contained in this paragraph 6 shall require Lender to incur any expense or take action hereunder.
<br />Any action taken by Lender under this paragraph 6 shall not cure any breach Borrower may have committed
<br />of any covenant or agreement under this Mortgage. Borrower agrees that any advance notification to
<br />Borrower required by law before Lender may perform duties of the Borrower shall be satisfied if mailed to
<br />Borrower's address as provided in this Mortgage five (5) days before Lender performs the duties, or if
<br />delivered to Borrower two (2) days before such performance. Borrower also agrees that any notification to
<br />Borrower required by law when Lender performs duties of the Borrower shall be satisfied if mailed to
<br />Borrower's address as provided in this Mortgage within sixty (60) days after Lender performs the duties.
<br />
<br />7. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the
<br />Property, provided that Lender shall give Borrower notice prior to any such inspection specifying
<br />reasonable cause therefore related to Lender's interest in the Property.
<br />
<br />8. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br />connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu
<br />of condemnation, are hereby assigned and shall be paid to Lender.
<br />
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this
<br />Mortgage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless
<br />Borrower and Lender otherwise agree in writing, there shall be applied to the sums secured by this
<br />Mortgage such proportion of the proceeds as is equal to that proportion which the amount of the sums
<br />secured by this Mortgage immediately prior to the date of taking bears to the fair market value of the
<br />Property immediately prior to the date of taking, with the balance of the proceeds paid to Borrower.
<br />
<br />If the Property is abandoned by Borrower, or if after notice by Lender to Borrower that the condemnor
<br />offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30)
<br />826 - NE-LOC Mortgage - 01/01/98 Page 3 of 6
<br />
|