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<br />If under paragraph 18 hereoi the i'ro~?crty is saki or the Pro;?ert~• is athenvisc acquired b~• Lendrr. Lender
<br />shat! apply, no later than immediately l~rrim• to the sale of thc° Pmpert-~• or it= acquisition b~• Lender.:m}• Funds
<br />held by Lender at. the lime of application as to ereclit ag.rin.~t the saws ~E=cured he rhi~llortg:r~r.
<br />'.~a 3. Appkaatian ai Paymeats. LTnles• applicable law procidcs otherwise, ufl payments received by Lender
<br />~j under t-lie ~ofe and paragraphs I and 2 6eseof shall be apptiecl by Tender fit~t in p:r}anent of amounts payable to
<br />~~ Lender by Borrower under paragraph 2 hereof, rhea to interest. p.ryablc an flu \TOre ,rncl an Fut-arc Advances, if
<br />(~;,; any, andt.hen to the principal of the Note anei to the principal of future Advanms, if any.
<br />r;; 4: Charges: Liens. Borrower shall pay all taxes, assessments anti other chargt:s, fines and impositions attrib-
<br />~ utableco the Fropurty which may attain a ln•iority over ibis Mortgage, and grorind rents, if anv, si Lender's
<br />option in-the r~anaaa• provided underr p:~rabral?h ? !tercel ar by Barrarver making l;atyment, when due, directly to
<br />~ the payee thereof. Borrower shall promptly furnish to Lender all notices of arnoirnts due under this paragraph,
<br />}., and in fhe event Borrower shall make payment ~3irecLly, Barro~ver shall promptly furnish to I.rnder receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has liriority over this Mortgage; pro-
<br />vided, that Borrower steal! vat be required to discharge any such lien sa long as Bcrmwer alto!! agree in writing tar
<br />the payment of the obligation secured b}• such lieu in a manner acceptable to Lender, or shall in good faith contest
<br />such lien by, ar defend enforcement of such lien in, legal proceedings which overate to prevent the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />5. kIazard Insurance. Borrower shall keep the iinprocements Hors existing or hereafter erected an the Prop-
<br />erty insured agai:rat toss by fire, hazards included within rite term "extended coverage", and such other hazards as
<br />Lender mac require :and in such amounts and far s~.rch periods as Lender may require: provided, that. Lender shaft
<br />` vat require that the amount of such cacerage exceed that amaunt of coverage required to pay the sums seeured'by
<br />rhis 34lortgage.
<br />The insurance carrier providing the insurance sl;ail be chosen by Borrower subject to approval b}• Lender;
<br />;.rravidecf, that such approval shall not be unreasonably withheld. AIl premiums an insurance policies slaali be paid
<br />at Lender's option in the manner provided under paragrapl; 2 hereof 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 sum shall become
<br />immediately due and payable with interest at the rate set forth in said Hate until paid and shall be
<br />secured by this Alartgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this b3ortgage.
<br />All insurance policies and renewals thereof sha31 be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form aer_el.~table te. Lender. Lender shall have 'the right to hold the policies and
<br />renewals thereof, and Borrower shall promgtl}• furnish to Lender all renewal noiiePS and. all receip+.s of paid pre-
<br />miums, In the eveait of lass; Borrower shall glee prompt notice to the insurance carrier and Lender, and- Lender
<br />may make proof of loss if not• made promptly by Borrower.
<br />Unless Lender and Borrower ethenvise agree in writir?g insurance proceeds shall be applied io restoration ar
<br />repair of the Property damaged, provided such restoratiou er repair is economically feasible and the seeuritr of
<br />this Dortgage is not thereby impaired. If such resteratio,i or repair is not economically t"easible or if the se -°~v
<br />of this Mortgage wau}d he impaired, the insurance proceeds stial! be applied to the sums secured by This Biartgage,
<br />with the excess, if any, paid to Borrcwer. If the Property is ahanciened by Borrower or ii Harrower fails tb respond
<br />to Lender within 30 day s after notice by Lender to Borrower That the insurance carrier ollers to setti? a as=_m far
<br />insurance benerits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either ttr
<br />restoration or repair of the Property or to the soars secured i>y tdiis Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, anv such application of proceeds io principal shaft
<br />not extend or postpone the due date of the monthly installments referred to in paragraplL, 1 and 2 hereoi or change
<br />the amount of such installments.
<br />If under paragraph I8 hereof the Property is acquired 6y Lender, alt right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof tto the extent of the sums secured by this A3ort-
<br />gaga immediately prior to such sale or acquisitions resulting tram claniage to the Property prior to the safe or
<br />acqussitian shall pass to Lender.
<br />6. Presezvatian and Maintenance of Property: Leaseholds: Condamiaiuras. Borrower shalt keep the Pxnp-
<br />arty in good repair and steal! not permit ar commit yeasts, impairment, or deterioration of the Property and shal3
<br />comply with the provisions of any lease, if this Mortgage is on a leaseliaid. Tf this 3lartgage is on a condominium
<br />aril, T3ariawer sl'iali perform al! of Borrower's abiigatians under the declaration of condominium or master deed,
<br />the l;y-laws and regulations of the condcrninium project. and constituent documents.
<br />?. Protec#ion of Lender s Securitg. If Borrower fails to perform 'the covenants and agreements contained in
<br />this tortgage, or if ary action or proceeding is conimxnced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain. insolvency, rode enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option. upon notice to Borrower, may make such
<br />appearances, disbar e such sums and take such active: as is neressarv to protect Lender`s interest, including, but
<br />not limited to, disbursement of reasonable att.orney's fees and entry upon the Property to make repair3. 9ny
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebt~
<br />edness of Borrower secured by ibis Mortgage. Unless Borrcwer and Lender agree to other terms of payment, such
<br />amounts shalt be payable upon notice from Linder to Harrower requesting payment thereof, and shall bear inter-
<br />esc from the dais of disbursement at the rate stated in the Tote unless payment of interest at such rate would be
<br />contrary do applicable law, in which event such amounts shall bear interest st the highest rate permissible by
<br />applicable lsw. Itirotlaing contained in this;~aragrapli 7 shall require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Inspection. Lender rriay make or cause to be made reasansbic entries upon sad inspections of the Prop-
<br />. erty, provided that Lender shall give Borrav:•er notice prior to ar:y sorb inspe,tion si;ecifyirg reasarabie cease
<br />therefor related to Lender's interestrn the Property.
<br />9. ~'=n=~*•^^°°'~^°. The proceeds of any s:vard or claim for damages, direct or consequential, in c©nneciion
<br />with any candenination or other taking of the Property, or part thereof, or for conveyance in lieu of condeTriiia-
<br />fiony era hereby:sssignedend shall i;e paid to Lender.
<br />r_n the eve:it crf-a fatal t$kirg irf Lhe Property, the proceeds shad be applied to the sums secured by this :Mort--
<br />- -gage, with the excess; if any, paid to Harrower. in the eceui of a partial taking of the Propertyf amass Borrororer
<br />and Lender otherwise agree in writing, there shall' be ajij3lied to the sums secured by this 14fortgage such propor-
<br />tiua of the proce~ls, as is equal f.d thatpiopartion which the amaunt of the sums secured by this :1ortgage imme- -
<br />claately t~rior to the dote of taking bears tcl-the fair niaxkei value: of the Propec6y immediately prior fo the -date of
<br />takiig;, v~ii~h i~he bola^co of~the p~~ds-paid_to-$arrower.
<br />Tf the Pmpert}~ i4 abandoned 6y $oriower or if after notice by I;ender to Borrower shat the condemnor offers
<br />to make an a;•rard ar settle a clsznl for datiisges, Boriower fails to respond to Lender within 30 days rf the date
<br />04 such notice, I;ender is authorised farollact and appi3> the proceeds at bender's option either to restoration nr
<br />repair mf the Property or fo the wins secured by this ~Iartgage.
<br />Unless. Lender and Borrower otherwise-agree in writing, any such application of proceeds to principal shall
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