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<br />If under paragraph tS hereof the Properti• i sold or the Property is otherwise acquired hp Lender, Lender
<br />shall apply, no later khan itnmedistBly prior to the sale of the PropBrtr nr its acquisition ley Lender. any Funds
<br />C'ilheld by Lender at the time of apl>licat-ion as a credit agsin:=t the stuns se:airs°d h~ t13is Jtortnagc~.
<br />~Li 3. AppGeation of Payments. Uzale=s applicable law provides othervisc. all payments receivs~sl by Lender
<br />C.'~under ihe?Vote and paragraphs i sod 2 Iterecf shall he-applicil lay Lender first in payutent of aznonnts payable to
<br />~7Lender by Borrower under paragraph 2 hereof, sliest to interest liayalale on rite Mote and or. Future Advances, if
<br />,.;,,zany, aiadthen to the principal of sloe tiotB and to tl!e prineilaa! of Future Advances, if an}'.
<br />4. CFaarges; Liens, $orrower shalt pay al! taxes, assessments and other charges, fines-and impositions attrib-
<br />utsible ~ the I?i'operty which may attain a pnonti over this Mortgage, anti ground mats of any, at Lender's
<br />~~ 1,,~ option in the manner provided under-paragraF,:i s nere[a# yr l;v Born,wer ,Txassiug pays, : ~, ..~; duE, dirt sly to
<br />rtes pa~>?~ t~a*eof. $orrewer .hull nrornptey furnish #o :ender all notices of amoants_ due under this uaragiaph,
<br />a grad in the event I3¢ro ter shalt make payment directly; Bo'•r4 aer shall p ronptf~ _ urriah to Lender receipt`, evi-
<br />~ denting such payments. Borrower shall promptl} discharge aza~ lien which has priority over this iortgage pro-
<br />vided;that Ii¢rrower shill not be requn°ed to disBlaarge an} such lien ~a long as Borrower shall agree in n sting to
<br />the payment ¢f the obkigation secured by such lien iii a manner aBBeptalzle to Under, or shalt in good faith contest
<br />3~ susb lien ~*, or defend enforcement of such lien in, legat proceedings which operate to prevent the enforcement of
<br />the lieai or forfeiture of the Property or any part thereof.
<br />-5: ~:~d lasuzarice. Borrower slialk keep fire improvements notz' existing or hereafter erected on the Prop-
<br />. ~ erty insaued against loss by fire, hazards included within the Term "extended coverage", and such other liazaicls as
<br />Under may require and in such amounts and for such periods as I,eaader may require; provided, that Lender shall
<br />not require that the amount of such- coverage exceed that auwunt of coverage required to pay the-sums seeured'hy
<br />' this I4lortgage. -
<br />Th~ insurance carrier providing the insurance shall be chosen hg Borrower subject to approval be bender;.
<br />provided, that sueli approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />ai Lender's option in the manner provided under paragraph 2 hereof ar by Borror.-er making payment, when due,
<br />direesly to the insurance carrier.
<br />In the event any poliicy is not reaewed on or before ten days of its expiration, the Lender,- to protect
<br />its interest, may procure insnrance on the improvements, pay the premiums and such sum shat become
<br />immediatzly-due and payable with atterest at the rate s¢t €orth in said Hate until paid and shall be
<br />secured by this Ikfortgage. Failure by Borrower to comply may, at option of Lender, constt#u#e a default
<br />under the terms of this IVlortgage.
<br />fill insurance policies and ,•enawaIs thereof shall be in form acceptable to Londe: and shall include a standard
<br />mortgage claaz:=e in favor of and in form aeeepiable to Lezader. Lender shall have the right to hold the policies and
<br />renewals thereof, end Borrower shall promptly furnish to Lender ail renewal notices end slI receipts of paid grz-
<br />miums. Ire the event of Lass, Borrower shall give pr¢mpt notice to the insurance carrier and Louder, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in avriting, insurance proceeds si;ali be applied to restoration or
<br />repair of the Property damaged, pratded such restoration or repair is BcanoiriiBaily feasible and the secnrit}• of
<br />this ~Iartgage is not tlaerehy impaired. If such restoration or repair is not economically feasible or if the security
<br />¢f this ~forzgage would be impaired, the insurance proceeds shall lee applied io the sums secured 6y this ~fortg~,~,
<br />wife the excess, if any, Y~:d io B¢rrow•er. If the Property - is abandoned I}~- Borrower or it Borrower fails to respond-
<br />taLender within 3() days after notice by Lender to Borrower tort the instt_><ance Barrier offers to settle a claim fur
<br />insurance bene5ts, Lender is authorized to BolleBt• and apply t'ne insurance proceeds at- Lender's option either €o
<br />restoraiimt sir repair of the Property or to tike stems seeu>l ay this Mortgage.
<br />Unless lender and Borrower otherwise agree in writing, env such application o€ proceeds to principal shall
<br />not extend ¢r postpone the due date of the monthly instatiments referred to in paragraphs i and 2 hereof ¢r change
<br />the amount of such instaIhrieats.
<br />Zf under paragraph iFs-hereof the Property. is acquired by LendBF, all right, title sad irezt of $arrawer in
<br />and to any instiranBe policies and in and to the proceeds thereof {to doe extent of the sums secured by this ltifart-
<br />gage immediately prior io such sale ¢r acquisitionl resulting from damage to the Property Briar to the sale or
<br />acq = ' ~ :, shall paw to Lerider~ : -
<br />S. Pr@aervatian and kKat"at~aace of Property: Leaseholder Coadontimiams. Borrower shall keep the Pr¢p-
<br />erty in goad repair and shall not permit or Bommit wssis, impairment, or deterioration of -the Property end shall
<br />esmgly with the pr¢visions ¢f any lease, if this .llortgagB is on s leasehold. If this iiiortgage is an a condominium
<br />unit, Borrower shall perform all of Borrower's obligations under the deeia=^scion of condominitm or master deed,
<br />-the by-laws and regulati¢ns of the condominium propeet and constituent documea#s.
<br />T. Protection of Loader's Security. If Borrower fails to perform the edvenants and agreements contained in
<br />this ifartgage; ar ii am aBtion or proceeding is Boanmenced which anaarisily affects Lender's interest in the Prog-
<br />erty, including, but not limited to, eminent domain, insol=ency, Bode enforcement, or arrangements or procc~-
<br />ings invoiviag a bankrupt or decedent, then Lender at 2_ander's option, upon notiica W Borrower, may make such
<br />appearances, disburse such sums and take such setion as is necessary to protect Lender's interest, including, but
<br />not iintited t¢, disbu~~Bmr;iit of reasor_able attorney's fee; end ezatsy upon +.lie Property to make repairs. Any
<br />aneounts disbursal by Lender pursuant to this paragrapl; i, with interest thereon, shall bec¢ane additional indebt-
<br />edaess of $orrawer secured by this Mortgage. Unless Borrower and Lender agree to other scone o€ gaymeat, such
<br />amounts s2sall he payable upon nom ee tram Lezzder tc Borrower requesting payutent thereof, and shall bear' inter-
<br />estfrom the date of disbursement at the cafe stated in the Note unless payment of interest st such rate wozrld be
<br />c¢ntrary to applicable law, in vhiclz event such smotmts shall bear interest at the highest rat® peible-ley
<br />applicable law. ;Nothing trontained in dais paragraph 7 shall require Lender to-incur any expense or do any set
<br />iiereiirider. _ -
<br />$.-~ Lender-may make or csu_se to lee snack reasonable entries upois ante insgeetions of-the Pmp-
<br />., f, ~=v~,~~ ~ ucisucr shall give- iao"zzt*;ser ztrzt4-e: Iszior io any sueia uzspeciion specifying, r'easanahie rauae
<br />tlior related to Lender's intt 3n the Prrperty.
<br />~. 'S'he groseeds of any'award or claim for damages; direct or coxsst~tiential; in aonaectiats
<br />with sn}^ eozideinaatiort or other t>3kivg of the. Proyerty; or laart_ thereof, or €nr-concevanehzn tieu of eondemnaa-
<br />tic+[r, are liei'elry s sighed and snall:be paizl tssI3eIIder. -
<br />I8 the et•ent of a total taking of the Pror~ez•ty; tSe proceeds slisil l~ app)ieti to the sums secured ley this Mort-
<br />- gage, with the excess, if aa~-. paid-to Borrower, in tNe event nF u paztial taking of-tike Frogerty; sailers $orresrtTer
<br />-and Leader othe_*wise agme in siir+tirg, their,. steal? 6e apjslied to Elie stuns secur~'bt~tlti;? i4for"tgag'e'stiCtt propor^
<br />tian of t},e proceeds as i=equal to That proportion which We :ctnoant of lire ram.: ~tcred fay this h44rtg iE3trie=
<br />:iiately prior to the date of taking bears to rtes fair snorter value of the P..*opery immediafelg-prior to''the date of
<br />taking, with the bslsnse of t:he proceeds paid to Borrower.
<br />?# t'se °TCN'eiL} :;, ahandsred k;y Bor.~tier or if ..'ter rcticx i;t- Les:der ;o Hprro:ver that the eorzdemrxir tt$ors
<br />to malts; an surd c ~ the s alsim far claHvx~, P~arrohe fails to rzsps;nd to I;eader-~thitt 38 days of the date
<br />of sucks Holies, I.xnder is autlieriz~ l to entlect. enrl apply the proceeds gt L_etader's option "elthe?' to restoration or
<br />r0p8_ i[ t~f tkie Property or tablae suites secured. by this l[nrtgage.
<br />tltile~ Lender and Borm4€Er otlaenviac agree izt wri*irag,-say snclz application of proceeds tiQ principal shall
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