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<br />If under paragraph 18 hereof the Property is sold or the Propcrte• is athencisc acquired by i.ender. Lender
<br />sha11 apply, azo later than imntedfateiy prior to the sale of the Property ur its acquisition by Lender.:uap Funds
<br />bald by Lender at the time of application as a cmdit .against the sun+s <eeurcd h}- chi-. \Iortg«gc.
<br />9. Application of Faymeafs. t7nless anpiicahic ;;tic larovicles otherwise, all puymeuts reeeiceti by Lender
<br />under the Note and paragraphs I and 2 hereol shall be apl+fied by Lender first in payment of amounts payable to
<br />Laender by Borrower under paragraph. B hereof, then to interest payable on tics Note case{ on Future advances, if
<br />any, slid tlae*.i to the principal of the tote and to tics priaaeilzal _ef Future Adva~a.ees, if easy.
<br />4. Cliotgesa. Liens. Harrower shall Pay all taxes, sssc55naents and either charges, fines and impositions attrib-
<br />u#able to, the Property which may attain a uriarity over-this _~iortgage; and ground rents, if any, at Lender's
<br />option in the manner provided uz:iler paragraph 2 hereof ar 1>y Borrower v3sking payment, when due, directly to
<br />~, the payee-tizeroaf. 336rroraer sha11 promptly #urnisl. tti bender-all iaofices of amounfs due under this paragraph,
<br />~ ,and iri the event. Borrower shall make payment directly, Borrower shall promptly ftarnish to Lender receipts evi-
<br />deneirtg sash psyr,ezats. Borrower shall pronzlntly discharge any -Tier. -which has priority over this 3ortgage; Pro-
<br />vide~ct; that .Borrower shall not be rcquirecf to discharge-any szach lien sa-long as Harrower slzsll agree in writing to
<br />file jzayment of the obligation secured by such Tien in a manner acceptable to Lender. or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings which ~gerate to prevent the en#oreement of
<br />~ the lier. or forfeiture of the Property or any Bart thereof.
<br />1\ 5: -Hurd Insuzrmee. Borrower shall keep the improvements now existing or herea#ter erected on the Prop-
<br />erty-insured against Loss by fire, hazards included within the term "erttended coverage", and such other hazards as
<br />Leader may require and in such amounts and for such periods as Lender may require; provided., that Lender.-shall
<br />,~ astir require that the amount of such coverage exceed that amount of coverage required to pay the sums secured`by
<br />this. &irtgage.
<br />The insurance carrier providing the insurance shall be chasm by $orrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. A[I premiums on insurance policies sliali be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />direetty to the insurance carrier.
<br />In the event any policy is not renewed on or before ten days of its expiratiar., the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum shall became
<br />immediately due: and payable with interest st the rate set forth in said note until paid-and shall be
<br />securnd by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the-terms of this-Mortgage.
<br />Al! insurance policies one: renenals thereof shall he in form acceptable to Lander and shall inetude s standard.-
<br />mortgage clause in favor of and in fonn aecepiablP to Lender. Lender shall- have the right fa hold. the policies and:
<br />renewals thereof, and Harrower shall promptly furnish to Lender all renewal notices and all receipts ui paid pre-
<br />mitmzs. Zn the event of loss, Borrower shalt give prompt notice to the instzsanee carrier and Lender; clad Leander
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender snd Borrower otherwise agree in writing, insurance proceeds shall be applied to rest+aratioti or
<br />repair of the Property damaged, procaded such restoration or repair is economically feasible-snd the securit}= of
<br />this iLiortgage is not thereby im},aired. If such restoration or repair is roc economically-feasible or if Iris security
<br />of this Mortgage would be iznpair~l, the in_~riranee proceeds shstl be applied to the sums sec fired hy.this Martee~e,
<br />with the axes; if-any; Paid to Berrower.'I# the Propert:, is aSandened by $arrawer yr if Baz°rawer fails to ~slsond
<br />to Lender within 30 days after not"zee b}• Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to catlect and apply the insurance .proceeds at Lender's optir_~iz either to
<br />restoration or repair of the Property ar to the sums secured by dais _liorigage.
<br />ITnIess Lender and Borrower athenwise-agree in writing, any such application of proceeds to principal shall
<br />net ex#Rntl or postpone the due-date of the inohthly installments r@ferred to in paragraphs I and 2 herealor change
<br />thssmaunt of aueh installments.
<br />If under paragraph 28 hereof the Property is acquired by Lender, all right, title and interest of Borrower-iii.-
<br />and to any insurance policies and in and to the proceeds thereof Ito the extent of the sums secured by Ellis-ZviUrt-
<br />gage Immediately prior to aueh sale ar acquisition) resulting from damage to the Property prior to-the. sale-or-
<br />sequisi`~ion shall paw to Lender.
<br />(i. Pr~rvafiosz trod M®a#earmce of Property: I.easah>zlds: Gondainiaiums. Borrower shall keep the Prop-
<br />erty in goad repair snd sha11 not permit ar commit. waste, impairment, or deterioration o€ the Property and. shall-
<br />comply with the pme~zsions of any lease, if ibis Mortgage is an a leasehold. If this Mortgage is on a condominium
<br />unit, Harrower shall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />die by-laws and regutatior„s of +.he condominium pmjee±- and constituent deauments.
<br />?. Prslfietia~i of Laa3es s fi~ceritg. Zf Borrower fails to perform the covenants snd agreements contained in
<br />this \3ortgage, or if any action or proceeding is commenced which materially affeet~ Lender's interest in the Prop-
<br />erty, including, but not limited to; eminent domain, insolvency, code enforcement, or arrangements ar proceed-
<br />ings involving a bankrupt or decedent, then Lender ai bender's option,-upon notice to Borrower, rnsy make each
<br />spgearanees, disburse such ^ums and take suelz action as is necessary to protect Lender's interest, including, but
<br />not lizei,~t to, clisbuk~semettt of rasonable attorney's leas and entry upon-the Property ttr make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph i; with interest thereon, shall became additional indebt-
<br />edneas of Borrower secured. by this 1linrtgage. unless Borrower and Lender. agree to other terms- of payment, such.
<br />amounts shall be payable upon notices from Lender to Borrower requesting payment tiaereo#, Arid shall bear inter-
<br />~t from. the date of disbursement at the rate stated in lice Note unless paymezzt of interest at aueh rata would be
<br />contrary. to applicable low, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable taw.. Nothing contained in-tiais paragraPlz i shall require Lender to incur any expense or d© any set
<br />iiereutrder.
<br />8. fnsFxcticzs Z.ender r.~ray'make or cause to lie made reascanabie Pastries upon-snd inspectior~ of the Pr!ijr
<br />eiiy, providd thai Lander area#l give Borrower-notice .prior to nnti surii inapeetiiin speeifxing rzssoria#sle ieaisse
<br />ffierefor related io Lender's interesf, in t:he PmperEy.
<br />y. ~~ondemnortion. '~ he proceeds of +iiig .iwaid or elai€ti for dansages; dixirot or oonsequentist; ici-canneoEon
<br />vrit.'a any condenenaiion ar other taking of the Yroisert.~•, or ji&rt tiaere<tf,._or foe-nonweyenice in lieu of soad~na~
<br />lion, are hemhy absigued ant! shalt be paid to Lender.
<br />Z,_ the event of a 20±al ts$ing of t:he 1?rupert-Y, toe, proceeet~ alisii fro applied to the~ums securedby_t~ia 113oit-
<br />gage, with tide excess, it any, pai+i to Boroacer: In t1:e event of n ptartiel taking of-fire Prape~g, nnless>&u~toavar
<br />and Leaxier othaz-s,~ise agree in.ivriting, there shall be ap}ilieti to the amass sc:>=tzred by this .'«kbr~gasruli ptropor-
<br />t.ion of Ilse proceeds as is equal to tlast proportions. which the amount of the stzmsseetued bg:tlt~ :ldortgaga ltuiae-
<br />diately prior io the d&ta of taking iiears to ttae fair marker aalue of the ?mpert}~ iininedistely prior to the dnt~of
<br />faking, Leith the bxiarce a# the proceeds paid to Bm~nwer:
<br />Z#.^,,.a' e Psapc-rtgas a ;aa.doncti by 3orrower or ii after notice by Le_tti~srtra Btirroetcr tha$'-the etSndemnor of£e3ss
<br />to make an a?vaid or settle a elaizn for uiimag~;, Borrower fails to reepoad tie Lenderwitlsia:3D days of the date
<br />of such natiae, Laz:der is authorizesi ts.callect ai+d apl~iy tlaf• pro~.esfs at. ~lxnde''s i?ption either to restoration or
<br />~P~r of ttae Property or to the surrns secured by this STortggge:
<br />L;niess Lender arsd-Borrower atbenvise agree in writing, any suolr-ajipliea#aon of proceeds to prineipst shalt
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