|
<br />If under paragraph 78 hereof tine Praprrt}' i,~ sal+! o!~ rlu 1'raperty is ather.vise acquired by Lender. Lender
<br />shall apply, no later titan irntnediately prior to the gale of the Yropertc ar its acquisition h.y Lender.:zuy Funds
<br />held by i.ender at. the tithe of application as :a rrr in =tunnt the ,u, i, c•curc a h}• thin lkntta};t-
<br />3. APP&cation o4 Payments, UnleFS api>ltcahl.. !as praviac. otiierav. t, al! payments received by Lender
<br />under the Note and paragraphs l and 2 hereof ;dra!t Ire vpplicd he l.cudcr first in ]rayment of amounts payable to
<br />Larder by Borrower under Iraragralrlc 'Z Itereo(, then ra interest payable on the Not=z and an FUt1~rC .gdvances, if
<br />any, and thenta the principal +>f the foie and to the principal of Put-ure advances, if any.
<br />~~ ~8. Charg¢:~; Lions. Harrower slaall pay all loxes, assessments and atirer eharg~,, tines and im{rositions attrib-
<br />~= uable o the Property which may attain :~ I;ra~;ty aver this Iartgste, and graurr.'. rents, if any, at Lender's
<br />~> ep'ian in fire manner provided under paraeratih ? hereof or by Borrower making payment, when due, directly to
<br />the payer tlrereaf. Borrawar shall promptly furnisi~ to Lerdcr all rzafices of amounts due under this paragraph,
<br />i,~,. and in the event Borrower shall make payment ciireetly, Barrawer strati promptly furnish to Lender receipts evi-
<br />~ deneing such paytrents, Borrower shall pramlriI}~ discharge any lien which Itas priority over this Mortgage; pra-
<br />vided, that Borrower shall not be required to discharge any such lien sa long as Bormv,-er shall agree in writing to
<br />the payment of the obligation secured by such lien in :L ittanner acceptable to Lender, or shalt in good faith eontast
<br />t~t3 such lien by, or det'end enforcement of such lien in, legal proceedings which operate to prevent the enforcement of
<br />~ tl:e-lien ar forfeiture of the Property or any }cart thereof.
<br />5. Hazard insurance. Borrower s}zall keep fire inznrovements now existing or hereafter erected an the Prop-
<br />erty insured against loss by fire, hazards included within the tern "extended coverage"; and such other hazards. as
<br />Lender Wray require anti in such amounts and for such periods as Lender may require; provided, that Lender shall
<br />,. hat require that the amount of such coverage exceed tdrai amount. of coverage required t.o nay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Harrower subject. to approval by Lender;
<br />provided, than such approval shall not be unreasonably withheld. All premiums on insurance policies shall be pard
<br />at Lender's option in +.he rramrer provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />dtreetly to fife insurance carrier.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum shall become
<br />imrrrediately due and payable with interest at the rate set Earth in said nofP 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 terns of this Mortgage.
<br />Ali insurance policies and renewals tlrerxrf shat hc- in form :receptable to L~z;der and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lander. Lender shall have the right to bald the policies and
<br />renawais thereof, and Borrower shall prampt.ly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shat( give prompt notice to the insurance carrier sad Lender, and Lersder
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, prav:ded such restoration or repair is economically feasible and the security of
<br />this 1ortgage is not thereby impaired. if such restoration or repair is net economically feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied to the atoms secured by this 1bSort~~et,
<br />with the excess, if any, paid to Borrower. Iftlre Property is abandoned by Barrawer or if Borower fails to rospond
<br />to Lender within 30 days after notice by Lender to Borrower tlrai the insurance carrier offers to settle a claim #or
<br />insurance benefits, Lender is authorised to collect and app(}- the insurance proceeds at Lender's option-either to
<br />restoration or repair of the Property onto the sums secured by tizis 3lartgage.
<br />Unless Lendar and Borrower otherwise agree ir. writing, any such application of proceeds to principal shall
<br />hat extend or postpone the due date of the manthty installments referred to in paragraphs l and « hereof or change.
<br />the amount of such installments.
<br />if under paragraph i8 hereof the Property is acquired by Lender. ail right; title and interest of Borrower in
<br />and to say insurance policies and in and to fire proceeds thereof tto fire extent of the sums secured by this l~fart-
<br />~ i:-~mediat„el„ ~ ar t suelr sale a. ;=:r;nn ~ *~sult=ng f.__~, cla=„~g*~ to =tae Prapsrt • prior to the sale or
<br />rig" y p.. ~sqt:..,.....,., - y
<br />acquisition shall pass to Lender.
<br />6. Preservation and I+7ainterxarrce of Pza~rty; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in goad repair and shall not penult or commit waste, impairment, or deterioration of fire Property and shall
<br />comply with the pravisiors of any lease, if this ]lartgage is an a leasehold, if ibis Mortgage is ar. a candaminium
<br />urat, Harrower shall perform atl of Borrower's atrligatians under t.lze declaration of condominium ar master deed,
<br />'the by-laws and regulations of the canciaminium , roject and constituent documents.
<br />?. Protection of Lender's Security. If Borrower fails ro perform the covenants and agreements contained in
<br />this ~iarigage, or if any action or proceeding is conmrenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain, insolvency, Cade enforcement, or arrangements or graceed-
<br />ings involving a bankrupt or decedent, then Lendar at Lender ; option, aeon notice to Borrower, may make such
<br />app=.araneo.Q, disburse such sums and take such action as is neczcsar}• to protect I,endar's intent, uteluding,-but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make. repairs. tiny
<br />amounts disbursed by Lender pursuant to this paragraph ?, ,t•ith interest thereon, shall become additional indebt-
<br />educes of Borrower secured by this 3larigage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts sha21 be payable upon notice from Lender to Eorrawer requestitrg payment thereof, and shall bear inter-
<br />estfrom the date of disbursement at the rate skied i, :Ire \ote unless payment of interest aG such rnte would be
<br />contrary to applicable lazy, in which event such amounts snail bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph i' shad require Lender to incur any expense ar do any act
<br />hereunder.
<br />$, Ixa~ciioa. Lender may make or causeta be made reasonable enfries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice prior to ant suelz inspection specifying reasonable cause-
<br />- therefor related #,o I.endsr's interest in the Property.
<br />~. Gc>udarglac#i+tn. 't'he. proceeds of any Sward or claim far damages; direct or consequential, in connection
<br />with shy eondenrnation or atlter taking o€ the Property, or part ttzcreof, or for conveyance in-lieu of candemna-
<br />thsn, are-hereby assigned and shalt lie paid to Lender.
<br />~n the event of a total taking of the Property, the proceeds shall Le applied to the sums secured by this-Mort
<br />gage,-.with. #<lie excess, if any, paid to Borrower. Iri the: event of a partial taking. of the Property, unless Borrower--
<br />- and I~nderotheiwise agree in writing, there shall be applied to the sums secured by this ;'.fartgage such propor-
<br />tion of t#,e proceeds a& is equal to that proportion which file amount. of the sums secured. by this I6fortgage imme-
<br />• diately prior-tic tlZe elate of taking bears to the fair urarkat vailrc of t#te Praparty immadiat~Iy Prior to file date of
<br />taking, with floe balance of the proceeds pad;tc~ Borrower.
<br />If the-1?raiperty is abandoned by Borrfawar or if after naLic~ by Lender to Borrotrrer that the condemnor offers
<br />fin make an sward or settle a cixiiri for damages, Biri-raa-sr fails to respond to Lender within 30 days of iha date
<br />of gush notice, Leader is authorised fn aallest and a~rlrly ~ilc proceeds at Lender's option either to restoration or
<br />repair of the Property ar to the surirs secured by this tilortgage.
<br />Urrl~ bender and Barrawer atlrenvise agree.in tvriting, -any such application of proceeds to principal snail
<br /><.~, ~
<br />
|