|
<br />If tinder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by bender, Lender
<br />,hall apply, no later than immediately prier to the sale ot` the Property or its aaaluisit=ion by bender, any funds
<br />held by Lender at the time of appication as a credit against the soma ~erured by this Alortgahe.
<br />3. App&cction of Payments. Unless applicable law provides otlrertr-ise, all payments received by Lender
<br />uncter~Ue ih?ote and paragraphs 1 and 2 Siereaf shad he appliett i,y bender first in payment of amounts payable to
<br />Lender by $orrower under paragraph 2 hereof, t}ten to interest, payable on-the Note and on Future advances, it
<br />any, sand then to the prireipsl of-the NotY and to fitt+ itxincilTal of Future advances; if .any.
<br />4, Charges: Liens. Borrower shalt pay all-taxes, assessments and- other charges; fines and impositions attrib-
<br />utable to-ilia Praaerty which msv attain a vriarity over this Zlorteaae, and i~round rents, if anv. at Lender's
<br />optidn in the manner pravideet under paragraph 2 hereof ar icy Bononer making rayment, when due, ctireet}y tot
<br />the payee thereof. ~o;rower shalt proniptty furnish to Z;ender all rtotiees of amouns due-under this paragraph,-
<br />- and in the event Borrower shall make payment directly, Borrower shall rrromEttly furnish to Lender receipts evi-
<br />dfrraaing such payments. Borrower shalt ltromi3tly diseltarge any lien which has pxiot7ty over this mortgage; pro-
<br />~ vided, that Borrower shall. not he reauired to disehargP any surly lien so long as Borrower. shall agree in writing to
<br />r-9 fire payment of the obtigatfon.secured-by such lien in a manner acceptable to Leader, or shad in goad -faith eorteai
<br />rxy such-lien by, or defend enforcement of such lien in,-legal proceedings which operate to prevent.the enforcement of
<br />the lien or forfeiture of-the Property or any part thereof.
<br />~ 5. Hazard Yusurasrce. Borrower shalt keep file improvements oozy existing or hereafter erected on-the Prop-
<br />erty insured against loan by fire; hazards included within the fern: "extended coverage", and such other hazards as
<br />Candor may require and is such amounts-and for suoh periods as Lender may require: provided, that Y.essder shell
<br />~ not require that the amount of suoh coverage exceed that amount of carerag2 required to pay rite soars seaured'l:y
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall 6e chaseri by $orrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. Ail premiums on insurance policies shalt be raid
<br />at Lender's option in the manne° 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 an or before ten days of its expiration, the Leader, to protect
<br />4ts interest, gray procure insurance on the improvements, pay the premiums and such sum shall become
<br />immediately due and payablA with interest at the rate set forth in said note until paid and shall- be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />AlI insurance policies and renewals ti:ereaf shad be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the paticies sad
<br />renewals thereof, and Borrower shall pramptty furnish to bender all renewal notices and all receipts of paid gre-
<br />miums. In the event of lass, Borrower shall give prompt notice to the insurance carrier and Leader, std Leader
<br />may make proof of loss if not made gram~,ily by Borrower.
<br />Unless Lender and Borrower otherwise agree in writiug, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, proe~ided such restoration or repair is economicsliy feasible and the security of
<br />this 14lartgage is rat t-hereby impaired. If suett restoration or repair is not ecarotnically feasible or if the security
<br />of this 1Sartgsge would be impaired, the insurance proceeds s Aall be applied to the sums secured by this ;4iof ~ 3
<br />with the execs; if any e~id to Borrower. If the Yroparty is abardaned i,y Harrower or if Borrower fails to respond
<br />to Lender within 3fl days after native by Lender to Borrower that the insurance carrier offers to seettle a c-Iaim for
<br />2nstisauee ucuBiiuY, Ler,dcr rs alii,ia~$-cd W Qafl"vet :lad apply the infiur,n+;e prve2ct'ia`-au LendeFa Gpifvn ci,.i,2r iu
<br />restoration ar repair of the Fraperty or to the sums secured by this \fartgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not exCead or postpone the due date of the ruonthtyrastailments referred to in paragraphs 1 and 2 hereof ar change
<br />the ~roisrct of such instaltriren~_
<br />if under paragraph l8 hereof the Property is acquired by Lender, all right, bile and interest of Borrower in
<br />and to any insurance patiEira and is and t+-, the pr~,eeeds thereof (to the zxz2nt of the sums secured by ibis Riart-
<br />gage immediately prior to such sate or acquisitioal resulting from damage to the Property prior to the sale or
<br />aequisiiion shall pass to Lender.
<br />6. Prea®rvat'soa sad as~~~~~e of Praperiy: Le~shoids: Candomsaiums. Harrower shall keep the Prop-
<br />eriy in good rap: it and shall not perxait ar commit waste,. impairment, or deterioration of the Property and shall
<br />comply with the provisions of any lease, if this Jortgage is oa a leasehold. If this :°~Iortgage is an a condominium
<br />unit, Borrower shall perform all of Borrower's abtigatione under rite declaration of condominium or master deed,
<br />th? by-taws and regulations of the condominium project. and constituent documents.
<br />7. Protection ni Leadei s Seearity. If Borrower fails to perform life covenants and agreements eantained in
<br />this:~Iortgage, or if any action ar proceeding is commereecl which materially affects Leader's interest in the Prag-
<br />arty; including, but not limited to, eminent domain, insoh°ency, code enforcement, ar arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Leader's option, upon notice io Borrower, may make such
<br />appearanets, disburse such sums -and take such aeticn as is necessary to protect Leader's intErest, including, but
<br />not limited in, dis~,:rsement of reasonable attorney's fees sad entry upon the Property to make repairs. Any
<br />amounts disbursed Ity bender pursuant to this paragraph ; ,with interest thereon, shall besoma additional indebt-
<br />edness of Borrower secured by this llartgan~. Unless Harrower and Lender agree to other ternrs of payment, such-
<br />-- amotmts-shall be payable neon notice from Lander to Harrower requesting payment thereof, and shall bear inter-
<br />eat from the date a# disbursement. at the rate stated rn the Note unless payment of interest st such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />apt~c'ealr3e }rsu. Nafhing contained ir, Yhis paragraph :shah t~uire Lender to incur any exper~ ar do spy-sat -
<br />heresmder•
<br />IL cti~. Lender may make or ear>ve to Ito made reasonable retries upon -and inFpections of the Pmp-
<br />ertg, provided first Leader shall. give Borrower notice prior to anv such inspection specifxdng reasonable cause
<br />thsiefar relatedto-Lender's iat?erest in the Property.
<br />9. @amatatti; -'The pfoceecls at nay ward or claim far damages, direct or consequential; in connectlorti
<br />with any 2t3aiaetion or ottser taking of-the l'r+rperty, ar part. thei•eoi, ar far conveyance fir` Lieu of Eondemrre=
<br />titan, are hereby a~ignad and: shall. be paid to Lender.
<br />lathe-erect oT a total takingof the Property, the. proceeds shaiE he applied to the xume secured by this l+t©t=
<br />gage; tvitlr rho crxce==, if any; paid to Borrower. Ier`tlre eE•ent irf s yrarrfial t.akiag of the froperty; finless Borrower
<br />at~d L::adfr tftlierwi;e agree is writing, them stroll-lie applietf to the aunts seeurezl 1iy this I>iortg>~ge-such proper- -
<br />- flan of the proceeds as is equal to that pro(iortion vrhicli the amount of the' stir>;s secured L~.t1»s Mortgage mine-
<br />- diately prior to the date of takirrgttesrs to the fair tuarket Value of the Property immediately priaY to the dateof
<br />t~:r,~^ng, ~i~tt t~ Ir::Iwn:~ of ;hv pl:.e~d* paid io Boiroivei.
<br />I# the ?roperty is abaud6,.ed by Borrower or it triter notice by Lender to Horxawer that the rrondemnor offers
<br />to make an ,sward or settle a clsirn for damages, Borrower fails to respond to Leader within' 3t? days of the date
<br />of such notice, I.amder is avthori~ui to collect and aplaly 4-he proceeds at Lender's-option either to restoration ar
<br />repair of ins Property or tin the suuisseeurevi by this \lortgsge_ _
<br />tiateas Lender and Barrawer:otherwise agree: in Fvriting, any suoh application of proceeds to principal shall
<br />`..,, - `
<br />
|