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If ender paragraph IS haraaf the Property is sold ar t}re i'roparty is otherwise acquired by i,ender, Lender
<br />shall apply, na later than imnxediataly lxrior to the sale of the lroperty or its acquisition by Lender, nny Funds
<br />held lry Lender at t1re time of applreatiorc as a credit against the sums teeurerl by this Viarkgage.
<br />3. AppBcation of Payments. TJnless alrplicablc htrc• provides otherwise, all payments received ny Lender
<br />under the :vote and paragraphs i Red 2 hereof shall he applied by Loader first in payment. of nmounts payable tar
<br />Lender by Borrower under paiagrapla 2 hereof, trace to interest payable on fhe Nate and an Future Arivances, if
<br />any, and then tai the principal of ilie Nate and to L1te principal of future tLdvaneas, if any.
<br />9. G$arges; Liana. Borranrer shall pay all taxes; assessments and other charges, fines and irnpasitions attrib-
<br />utable to the Property irhich may attain a priority. over this 13artgage,-and. ground rents,- if -any,. at bender's-
<br />- optiorF ix the rxisrinar providCd under paragraph `t lxereof ar.liy-Borrower tusking payment; when-due, directly to
<br />~~tho pavae ehereaf: 3orrower sixall`granxptly furtaisla to Letxcier all notices of:ainounLs due. under this paragraph,
<br />and inthe event Burrower shall make-,,.avu,anb directly, Barratier shall prrimgtly furnish to Lender receipts evi-
<br />~ dereiTig suc'a psynaeuts. t3oriowex s3xelt prong}rtly discharge any }ten which liar priority Duos this i4iortgage; pm-
<br />video,-that $orron°rr s1;aEl.not be required to discharge any aueh lien so long as Borrower shalt-agree-in writing- to
<br />~ tlae payment of the ob}igation secured. by such lien in a manner acceptable to Lender, pr shall-in-goad- faith contest
<br />aueh ]ren t,y, tr defend enforcement of such lien in, legal proceedings x>hielt operate to 3irevent the enforcement of
<br />the lien or forfeiture of the Property or any part thereo€.
<br />'~ 5. #Icsard Tsiatuanee: Borrower shs}! keep Llae improvements nok• existing or hereafter erected an the Prop-
<br />tfl artyiii3ured against lass by fire, hazards included within the term "eactended coverage", and such other. hazards as
<br />r'' Lender tray require and in such amounts and for"such periods as Lander may require; piovided, that Lender shall:
<br />not req~lire that the amount of sue}x coverage exeeeil that. amount of coverage required- to pay the sums secursd'lsy
<br />ibis ~3oz'tgago..
<br />'1'he insurance carrier providing the"insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shad not be unreasonably withheld. t'xll premiums on insurance policies shaft be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any policy is not renewed on or before-test days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the itnprovemer¢ts, pay-the premiums and. such sum shall become
<br />immediately due and payable with interest at the sate set forth in said note until paid gad shalt be
<br />secctred by this Mortgage. Failure by Borrower to comply may, at option of lender, constitute a default
<br />under the terms of this Mortgage.
<br />rill insurance policies and- mnewats thereof shaE1 be in faun acceptable to Lender and- shad include n standard
<br />mortgage clause in favor of and in farm acreptable fa Lender. ender shall lxaae the riglxt to bald rite policies and -
<br />renewals thereat; and Borrower shall promptly t'urnish is Lender all renewal notices and aH receipts of paid pre-
<br />miums. ir. ±he event of ]ass, Borrower shad give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance uraceeds shall ba applied to restoration or
<br />repair of the Property damaged, pro;>ided such restoration ar repaie is econotniball}- feasible and the security of
<br />this Mortgage is not thereby impaired. if such restorntion or sepsis is not economics}iy feasible or if the seourity
<br />of this hortgage would be impaired, the insurance proceeds shall he applied to the songs secured by this 14Sartgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Barrawar or if Borrower foils to respoe+h
<br />to Lender within 3f1 days after notice by'Lender to I;arrowcr that the insurance easier offers to Settle a claim €ar
<br />insurance benefits, Lender xs authorized to collect and apply the insurance proceeds aL Lender's option either to
<br />rastnratioa or repair a# the Property or to'the sums secured. lry this Mortgage.
<br />uale~ Lender and Borrower otherwise agree in writing, any such applieatian of proceeds to principal shalt
<br />eat extend or postpone the due date of the monthly installnxants referred to in paragraphs 3 and 2 hereof ar change
<br />the amattnt of aueh installments.
<br />if under paragraph 1$ hereof the Property is acquired by Lender, all right; title-and interest o, Sosru~aer
<br />and to any insurance policies and in and to tlae proceeds thereof tto the extent of the sums secured. by this Iviart-
<br />gage immediately prior to such sale or acquisitioni resulting from damage to the Property prior to the sa}e or
<br />acquisition shall pass to Lender.
<br />6. Fraser°afioa3 tmdlvltanteaaace of D'egarty: Lsase}3olda•' C.ondcsxiniurns. Borrower shall keep tfie Prop-
<br />erty in good repair and shall eat permit er commit waste, impairment, or deterioration of fhe Property and shall
<br />comply with the grovisieas of any lease, if this \iorigage is on a leasehold. if this 34orLgage is on a condominium
<br />unit, Borrower shall perform all of Borrower s obtigafions under the declaration o€ candoxninium or master deed,
<br />the by-laws and iegulations of the condominium project and constituent documents.
<br />?. FroYeetiaa of Lender's Security. If Borrower iaiL to perform the covenants and agreements crantsinal in
<br />this iVxortgage; or if any action ar groeeeding is commenced which nxaterialiy at~'ects Lender's interest in the Pra~r-
<br />erty, ineiudiaxg, but not limited to, exxiinent domain, insolvency. code enforcement, ar arrangements or proceeds
<br />legs ixvolving a bankrupt or decedent, then Lender at. Lender's option, upon no"rice to Borrower, may make such
<br />appearances; disburse such sums and take such action as is necessary to protect Lender's interest, inciudia$, but
<br />nab limited to; disbtarsement of reasonable- attorney's fees and entry upon the Property to make repairs. Any
<br />amounts dist}uroc-c!-.try Lendac pursuant is this parsgrapla 7, with interest thereon, sttsll beGOme scdditionai indebtc
<br />edness of Harrower scoured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, aueh
<br />amonnes shall be payable upon notice from Lender to $orrower requesting payment. thereof; grad ss :ll bear inter-
<br />est from flee dates of die:;°.r.°~.meut at t',--:e rate stated in the Note unless payment of interest at such rate would be
<br />contrary La applicable Iarv, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph 7 s}nt}1 regraira Lender to incur any expense or da 1ny art
<br />hereunder.
<br />~ -- Lender may make ar cause to tm made reasanslifc entries upon $nd inspections of.the Proit-- -
<br />nrty> provided thatT,ende:, shalt give. $arrower rxotiee prior fo ace-such: inspection speeifyine reestisnable cause-
<br />Fnerefar related to Leader`s iiatet~esi in theProperty_
<br />~adsaaaaticsa. The-proceeds of any sward dr-claim for damages, direct or consequentisi, in ca»rsaon `
<br />with candaaiian ar otizer taking of the Property, or part thereof, or for conveyanee-in;-lieu of. eoniiemaa-
<br />floe, are!xareby ~sigaed and sbatl be paid to Fender.
<br />iu the eveaG oT a total taking of the ?rgperfy, the pmseeds shat} he applied to the slims seeureii by this -A~iart-
<br />gage, with'the excess, if any, paid to Bor over: La fhe event of a i>artial taking of the Property; unle~ Bart^owe
<br />and Lender otherwise awe in writings tlrera shall he applied to the sums secdrul by this ~fottgtt~sueh p~gor-
<br />tion ai the prtaeeetis ae is equa'. tai-that proportion w}iirh t?ae amount of the sums secured fiy this Aiartgege imn-ie-
<br />'diately pier to the date o; taking bears to the fair market valor of the ['roperi3• immc~}iately prior to the date of
<br />:€<•sking, tvitlx tlxe hslance of fhe proceeds paid to Borrower.
<br />Ii the Prupert~ is abandoned by Borro~tier or if after entice by Lander to I3orrcwer That tli¢ coudenaaor, offers-
<br />-- t r3-keen a:ra~ ar :xttla a elate for da,nages; ;~orrower fails to respond to Leerier'z6ithin 34-days of~the-date-
<br />at s.xah nottc,e; iea;dcr ~ arltE,orized to col}ert. and apply the proo>?eds at Lender's option ~itlxer tv restoration-or'-
<br />repatr of brae iroperty arto tlxa some secured try t}xs ylortitage.
<br />ilrless :,r-nder and Bon~ower otiterrvise Rgree in writing, any sunh,applicstian of proceeds to principal shall
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