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<br />If ender paragraph 1R hereof the Yropercc i., solrt or !her }'roperty is othern•is~e acquired by Lender. bender
<br />hail apply, na later than imnediately prior to the sale of th.: Property or its aequisitio:: he Lrrder.:in}~ Funds
<br />held by Lender at the time of application as a credit ak;ainst the suvus secured Iry this \Iorigal;o.
<br />~ 3, Appfiection of Payments. L}nlecs applicable fan- provides ot}:enrisc, ai! payment,. received by Lender
<br />,,~ under t`he?v'ote and paragraphs 1 and 2 hereof shall bo applied b~• T.endr•r first. in payment of amounts payable to
<br />~ trader }sy Harrower under paragraph 2 hereof, ihea, to interest payable on the. \ote au<1 on Future tidvanees, if
<br />,,a, any, a;ad they, to the Itrineipal ai the ;late and to the {arme;tral of Future Advances, ii any.
<br />'°°'a ~ ~~ s$, ~_z?24, Tinrr rr } gill i l l t i,- vl n
<br />g_ ow- sa_.- }.ay a. ~~es, assessments a:.., at .or .^,harges, fin es a;,d imgas;tiar,s attrzb-
<br />i~tsiate to the Property which may attain a griorits over tt:is Mortgage, and ground rents, if anv, at Lender's
<br />~ option in the manner laravided under {raragraph 2 trerebf or by Harrower making payment, when due, diree±I; to
<br />~ the payee thereof. Barrawer shall promptly furnaeh fa Lender alI ttat,iees of amounts dne under this paragraph,
<br />~, -and in the event Borrower shall make payment directly, Ba1'rower slaali promptly furnish to Lender receipts evi-
<br />dencing such payments: Borrower shall pramptty- discharge auy Lien n•hich has priority over this Mortgage; pro-
<br />vided, that Barrawer shall-not be required to discharge any such lien so long as Borrower shat! agree in writing to
<br />G}te payment of the.abligation secured try such lieu in a manner acceptable to Lender, ar s-hall in good faith contest
<br />such Iien by, ar defend snforcenrent. of such Henn in, legal {areeeedit}gs which operate to prevent the en€orcernent of
<br />the lien ar forfeiture of the Property ar any parr thereof:
<br />5, Hazard Insurance, Harrower shall keen the itnpravements non. existing er hereafter erected an the Prap-
<br />crty insvrzd against.-toss by fire, hazards included within the term "extended coverage", and such othea' hazards as
<br />Lender may require and in such amounts and for such periods as Lender may require; provided," that Lender shalt
<br />' not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />?'he insurance carrier providing tl;e insurance shall tae choser, by Borrower subject ±a apprava3 by Lender;
<br />provided, that such approval shall not be tmreasonably withheld. ;~Il premiums on insurance policies shall be paid
<br />at Lender's option in 'the manner provided under paragraph 2 I;ereoT 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 ten days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sure shall become
<br />immediately due and payable with interest at the rate set forth in said note unii2 paid and shall be
<br />secured Iay this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance gaIieics and renewals t-hereof shall be in far;n acceptable io Lender and shall include a standard
<br />mortgage clause in favor as" and in fornr acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly fttrnish is bender all renewal notices and all receipts of paid gre-
<br />mivms. In the event of lass; Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if Hat made promptly by Borrower.
<br />Unless !.ender and Borrower otherwise agree in writing, insurancE= proceeds shall Ire applied to rest-0ration or
<br />repair of the Property damaged, provided such restoration ar repair is econanr,-cally feasible end the security of
<br />this liartgage is not tharnby impaired. If such restoration ot• repair is not economic:pity feasible ar if the security
<br />at this Mortgage would be impaired, the insurance pzoseeds sisal! 's;e applied tc t`e sm,ts cured h}• ibis 3fartga},
<br />with the excess, if any, paid to Barron•er. If tl:e Properly is shsndoned lay Barrawer ar if Borrower fails to respond
<br />is Lender within 30 days after notice by Lender to Borrower fleet tlae insurance carrier offers to settle a claim for
<br />insurance benefits, bender is authorized to collect and apply the insurance proceeds at Leader's option either to
<br />restoration or repair of the Propert}• or to the sums secured by_ this 1Iartgage.
<br />Llnlesa Lender and Borrower otherwise, agree in writing, an}• such application of proceeds to principal shalt
<br />not Mend ar posiporie the due date of the monthly installments referreu to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under garasrsph I6 hereof the Property is acquired by Lender, ail right, tiitc and interest of Borrower in
<br />and tQ anv insurance policies and in end to the proceeds thereof Ira the extent of tl=c sums sccure:i b°• thi ~.ar+~-
<br />gage immeciiateIv prior to snch sale or acquisition! resulting from damage to the Property prior to rho sale or
<br />acquisition shs}i gals to Lender.
<br />S. r"zes~er~ation arxd ~3ainfenance of Property; Leaseholds, Condominiums. Bor rawer sltaiI keep the Prop-
<br />erty in good repair aed shall not permit or commit waste, impairment, or rteterioratior. of the Property at:d shall
<br />comply with the provisions of any lease, if this Mortgage is on a leasehold. If this Alert„age is on a candomini;.ssn
<br />unit, Barrawer shall perform all of Borrower's cbligations under tl,e declaration of condominium ar master deed,
<br />the by-laws and regulations of the condominium project an~i constituent docnmenfs.
<br />7. Protection of Lender`s Security. Ii Borrower tails to Irerfarm the covenant, and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erly, including, but not limited to, eminent domain. insolvency, code enforcement, or arrangements ar proceed-
<br />ings involving a bankrupt or decedent,*_lten Lender at lender`s option, upon notice to Barrawer, may make such
<br />appearances, disburse such sums and take curb action as is a:eeessary fo protect bender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to :Hake repairs. Any
<br />amounts disbursed ray Lender pursuant to this paragrauh 7, with interest thereon, shall became additional indebt-
<br />ednacs of Borrower secured by this Stcrtgage. finless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Harrower requesttreg payment thereof, and shall bear inter-
<br />estfrom tl-ie date of disbursement at the rate stated in ti:e -'vote unless payment of interest at such rate would 6e
<br />contrary to applicable law, in which event such amounts shalt bear interest at the highest rate permissible by
<br />applicable law. tiothing contained in this paragraph ? shat requim Lender to incur any expense or da any oaf
<br />hen:tmder.
<br />8. inspection, Lender may make or cause to im made reasana}ale entries upon and inspections of the Prop-
<br />- ert~. provided-that Lender shall give $ormwer notice {~riar to any sorb inspection specifying ressonabte cause
<br />therefor i-elkted to Lender's interest in the Property.
<br />9: C$ndsmnatiom 'l'he proceeds o€ any ax+ard ar claim for damages; diree£ ar consequential, in connection
<br />vrith arsy cardemnaticin ar other taking of the Property, or part-thererif, ar far eanreyanee in lieu of condemna-
<br />tion, are lierelay asFaFned and s'nall be paid to Lander.
<br />In the event of a total taking of the Property, the proceeds shall rte applied to the sums secured by this Mort-
<br />gage, t#ittt the excess; if an3~, paid to Borrower. In the event of a partial taking of the Property;: unless Borrower
<br />attd Leader otherwise agree in writing, there shall tae applied to the sums secured by this :Mortgage such propor-
<br />tian of theproaeeds as is equal to fhat p:~agartian which iho amount of the surras secured by this '±3ortgage imme-
<br />diately prior to the dais of taking bears to the fair market value of the Property mritediately prior €o the date of
<br />taking, with the balance of the pras~ts paid to Borrower:
<br />If trite Property is absadoned by Borrower or if after notice lty Lender to Borrower tfaat the eondemrar offers
<br />to make an award or settle a clairn for damages, l3ormwer faits to respond to Under witttiu 30 days of the date
<br />of stitch"notice, Lender is sutharized to coliert and apply the proceeds at Lender"s option either to restoration or
<br />repair cif" the Property ar #;o the sums secured fry dais Mortgage.
<br />Ilnless Lender and Borrower otherwise-agree in writing, any such application of proceeds to principal shall
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