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If under paragraph IR hareaf the Properf}• is sa(d ar the Property is otherwise- acquired bay Lender. J.ender
<br />shad apply, no later than immediately prior to the salt of the Property m• its acquisition l,y I,cnder, au}- 1^'w,ds
<br />held by Under at- the time of app[icatiou as a credit. against the sums secured hr this A~Im•tgage.
<br />3. t~pplication of Payments. €-nless applicable lace provides a[[[ces°isc, all IiaymenLs received by Lender
<br />under the'1vTote and paragraphs I and 2 hereof shah he applied by Lender fiz•st in payment of amounts payable to
<br />Lender by Borrawer under paragraph 2 hereof, then tv interest, luayabka oft the emote and on future 9dvanees, it
<br />any, and then to the principal of the Dote attc[ fo the princi[ra[ of Future :ldj'ances, if any.
<br />4. Charges; Liens. Borrower shall pay al! taxes, assessments anc[ other charges, fines and bnpositians attrin-
<br />iitaz:I~ to th ~ P.~-arty ,.•hieh .nay att::in }xiarit-~ per this 'lartnage, nd fraar:d .ant= if any, at -L-andor's
<br />option fn rte manner provided under laragraph 2 hereof or t>y Harrower making payment, tchen due, directly to
<br />the payee thereof. Harrower shall promptly furnish to Lender all notices of amounts due under [iris paragraph,
<br />~ and in-the event Borrcwer shall make payment directly, Borroaa•cr shalt promptly tarnish to bender receipts evi-
<br />dencin~ earl[ payments. Borrower steal; pramptly discharge atr;• [ion =.vhich has [>riarity aver this brie.*tgage; pra-
<br />vided, That Borrower stall not be required to discharge any such lien so tong as Borrawer shall agree in writing to
<br />~; the gaymeat of the abIigation secured by sash lien in a maruaer acceptable to Lender, or shall in good faith contest
<br />~, such Ilan by, or defend enforcement of such lien ir., legal praeeedings which aper•ate to prevent the enforcement of
<br />the Tien ar fartoiture of the Proget~ty ar any part thereof.
<br />3. Hazard Insurance. Borrower shall keep the improvements nave- existing or hereafter erected on rte Frop-
<br />~ erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />c~ Lr.,dar racy rehaire and in such an,cur.ts end far such periods as Lender may require; prayided, that Lender slraI[
<br />~. not require that the amount of such coverage exceed tfzat amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier 1>rocicling the insurance shall be chosen b}• Borrower subject to approval by Lender;
<br />provided, that such approval shat[ not be unreasonably withheld. 911 premitrrrts on insurance palioies shall be paid
<br />at Lender's optian in t}se rranne,- provided under paragrauh 2 hereof ar ley $orrower making payment, when due;
<br />directly to the 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 stun shall become
<br />immediately due and payable with interest at tbe rate set forth in said note tintil paid and shall be
<br />secured by this Mortgage. Failure by Borrower to comply may, at optian of Lender, constitute a defaslt
<br />under the terms of this Mortgage.
<br />.4.1[ insurance paheies and renewals thereof she[[ bo in farts acceptable to Lender end shall irehide a standard
<br />t.tarvg .ga clause is favor of and in torn[ aceeptab[e to Leader. Lender siaal't base the righf to hold the policies and
<br />rersews[s thereof, and Borrower shall promptly furnish to Lender all renewal notices end all receipts of paid pre-
<br />miurns. In the crest of loss, Harrower shall giro prompt. notice to the insurance carrier and Lender, and Lender
<br />may :Hake prod of [ass i f not read? pranzpily by Borro:ver-
<br />Fnloss Lender and Borrower atiretwise agree in writing, insurance l,raceec[s shall be applied to restoration or
<br />repair of the Properi}• damaged, rroc•ided such restoration or*epair = ecanamicaiiy ;easible and the security of
<br />this Mortgage is oat thereby impaired. if such restoritia3: ar rel:air is not cconomicai[y feasible or if the security
<br />of this Mortgage would Uc intnaired, 'the i>.zs~rance proceeds s}tall }x. applied to rte sums seettred by this Ibfortga„-;
<br />,.~±h th,_ eirmq :f __nv, . _ =`_-a Barrawer,?t the Pr'aperte• i ahandoneel ha' prep}eer ar if Aorrnn•er fails to %t<-tipanrl
<br />to Under within 34 days after notice by Lender to Borrower that [tee nsurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect amt appl}• fire insurance proceeds at Lender's op+,ior. either to
<br />restarstian err repair of the Frapen•;- ar to the suns secured by tlzi.=. 4iartgage.
<br />Finless Lender and Borrawer otherwise agree in :vetting, aft}- such application of proceeds to princigai shall
<br />not extend ar postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />+.hs emc :nt of such installments.
<br />If under paragraph 1fl hereof the Prapert.y is acquired by Lender, alt right, title and interest of Borrower in
<br />and to any insurance policies ann in ::nd to t[re proceeds thereof i to t[te extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisition, resulting from damage- to the Property lector to the sale or
<br />acquisition shall pass to Lender.
<br />S. Presesvatian e8sd Maiatenance of Property; Leaseholds; Candorniaiuma. Borrower stall keep ine Pmp-
<br />erty in good repair and sta[t not hermit or commit ;baste, impairment, or deterioration of the Preperty and shall
<br />comply with t}te provisions or` any lease, if this :tiarigage is on a [easehoid. If ibis ;vfortgsge is on a condominium
<br />unit, Borrower stall perform all of Borrower's. obligations tinder the declaration of condominium ar master deed,
<br />the Sy-laws and regulation, of the eon,lontiniutt+. l:roject and constituent docatnents.
<br />7. Pzofectiern of Lender's Security. If Barran:er fails io lzerfortn the covenants and agreements contained in
<br />this ?~lortg>age, ar if any action or pracecding is eomtnenecd which materially affects Lender's interes± in the Prop-
<br />erty, ineIuding, but oat limited tn, eminent domain. insoll'ency, code enfarcenxent, or srrsngements or groeeed-
<br />ings involving s bankrupt or deeeclent, then Lender at Lender's option, upon notice to Borrower; may make such
<br />spgoarances, disburse such sums astd take such ;ictior, as is necessary to protect Lender's interest, includsng, but
<br />not limited to, disbursoruent at" reasonable attorney's fee-, and entry upon the Property to make repairs. Any
<br />atnQUnts d+_==burred by Lender pursutsnt a this paragraph ;,with interest thereon, shat} become additionaIsndebt-
<br />edness of Borrower secured by this Mortgage. Iin}ess Harrower sad Lender agree to other terms of payment, such
<br />amounts stall ba payable coon notice front Lender to Borrower requesting payment hereof, and shall bear irtter-
<br />est from the date of disbursement at the rate stated itt the \iate unless payment of inter~,t at such rate would l~
<br />contrary to apg}isable law; in which peen[ such amounts shall bear interest at the -highest rate permissible by
<br />applicable law. Nothing contained in this paragraph i shall t•equire Lender to incur any expense or do any set
<br />hereunder.
<br />>?, :;.syaed.:n. Lender- may make ar cause to be made reasonable entries upon and inspectiarts of the Pry;.-
<br />erty; provided that Lender shall give Borrawer notice prior to any such inspection specifying reasonable cause'
<br />therefor related to Lender's: interest in the Properly.
<br />~: Candeixrairstion. The proceeds of any award or claim for damages, direct or consequentiet, in connection
<br />with ,coy eondemnatian or atFter:t~king of the Property, ar part thereof, ar for conveyance in lied of condemns-
<br />tips, are hereby-assigned and shail'ue paid to Lender.
<br />1n the event of a total taking of tie Property, rte proceeds shall be applied io the-sums secured by this 11ort-
<br />gag„e, sviththe gx:.nss, if any,-paid to Bnrroct!er. 1n the event of a partial taking a# rho Property, unless Borrower
<br />and-Tlender oflterwise agree in meriting, thPresltall hE applieri to the-sums secured by this I4lortgage such prnpor-
<br />ti o£ fhe?roaeect r s;s etlugl_to that prtiportiar. ~hieli the an?ount of the suzna seeu_*ed by. this ~1ort~ge imme-
<br />• t3it.tely [[trite ±o tl:e :fete c1 #aking byres to the tale inaiket value of--the-Property imm€diat:ely prior to the date of
<br />taliiti~„-with oho cniance of the proceeds p&id to Borrawer.
<br />if the Property i~ abandore:l by Borrower or if;after notice by Lender to Borrower that the condemnor offers
<br />tp rnak as av:uz•d or sa;,tic a, e[aira for damages; $orrower fails to respond to Lender withir. 34 days of the date
<br />of such notice, Lender is :iuthorizeri to collect and -apply the proceeds at. Lender's option either to restaratian or
<br />repair of the 2'ra}~erty or to the stiina sesiired; t?y -Lois \lartgage.
<br />rJnless tender. and Harrower ather+vise agree in writing, any such application of proceeds to principal shall
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