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<br />If tinder paragraph I8 hereof the Yroperr} is sold ar life I'ropcety is at3zerwise ae•quired by Lender, 1 Winder
<br />=h III apply, no later than imnrrdiatefy larior to rho sotle vi tLe Props°rt-y or Its acquisition by Lender, any I'uudy,
<br />held by bender af, the Cime of application ns a credit again.~t the aruzs secum~l by this Aortgage.
<br />3. Application of Payme;tta Unless applie;tble l:ztc provides atlrervise, all paynzcnts. rer.civcd by Lender
<br />~~ under the Dote and paragraphs I and 2 hereof shall be applied by 7.endcr first in payment of amounts payable to
<br />~ Lander by Boreawer tinder paragraph 2 hereof, then to interest payable on the i?'ote and on Future Advances, if
<br />~ any, and then to the principal of the \ate and fa the principal of Future Advances, if anv.
<br />C~7 4. Charges: Lams. Bormwer shall ltay all taxes, assesstreents and other charges, fines acrd imisositians attrib-
<br />~ utltble to the Property which map attain a priority over this 1~Iortgage, and ground rents, if any. at Lender's
<br />'~ aption in the manner pmvided under paragraph 2 hereof ar by Borrower making payment, when due, directly Lo
<br />the payee tl:er`af. Barra~•er sl„11 promptly ftxrnislz tO I.zrtiler all notices of amounts due finder this paragraph,
<br />~ and in the evens Borrower shaft make payment direcil}>, Borrower shall promptly furnish tv Lender receipts ovi-
<br />~ deacittg such payments. Borrower shall promptly discharge any Lien which has pr•iarity over this 3lartgage; pro-
<br />vided, that Borrower shall not be required to discharge anF= such lien so long as Borrower shelf agree in writing La
<br />+,he payment of t-he abligaiicn secured by such lien in ~.; manner seceptable to Lender, or shall in good faith contest
<br />such hen by, or defend enforcement of such lien in, Iegai proceedings which operate to prevent the enforcement of
<br />the lien or forfeiture of the Pmpertq or any peel thereof.
<br />S. Flaz~rd Insuroace. Borrower shalt keep the impravemen+s now existing or hereafter erected an the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may require and in such amaunts and far such periods as Lender may require; provided, that Lender shall
<br />not esquire that the amount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />This :4r~; srte,.o
<br />ub~~.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Under;
<br />Izravided, that such approval shall not be unreasonably withheld. All nremiams an insurance policies shaft be paid
<br />at Lender's aption ;n the manner provided under paragraph 2 hereof ar by Borran•er 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 rata set forth fn 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 thi lbiortgage.
<br />.3.11 insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. bender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender al[ renewal notices and alI receipts of paid pre-
<br />miums. In the event of loss, Bormwer shall give prompt rotiee to she insurance carrier and Lender, and Lender
<br />may make proof of loss ii not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restaration or
<br />repair of the Property damaged, pmvided such restoration or repair i< eeauamicall}• feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or rei;air is trot ecanamtcall}- feasible or if the security
<br />of this \gartgage ecould be impaired, the insurance prtr_eads si:all be applied io the sums secured by this Mortga~.,
<br />with the execs, if any, pr;4 :a Borrower. If the Property is abandoned by Borrower or if Borrower-fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance kzeriefits, i ender i a„thar;~ed ra collect and apply the insu once l;zaeecds at Lender's option either to
<br />restaration or repair of the Property or to the awns secured b}- this ~Iottgage.
<br />Unless Lender and Barrower othen•ise agree in writing, any such application of proceeds to principal shall
<br />net ~*.snd or postpone the due date of the monthly installtents referrezl to in paragraphs I and 3 hereof ar change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender. sI1 right, title and interest of Borrower in
<br />and to any in~uraneg policies atad in and to rite p,•aeee•3s t??2reaf ;.ta rite extort of the soots secured by this :Mort-
<br />gage immediately I?rior to such vale rr ac•quisition~ resultif.g Tram damage to lire Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />S. Praseraa8oa mxd ?~:eeda#anaace of Property; I.easehalds; Condomiaiums. Borrower shall keep the Prop-
<br />erty in goad repair and sltail net pe^nit er r•asnmit :{as+_e. i:npairzr.~en*.. o.* :iezzrioration of the Property and shall
<br />comply with tire- },ra:'isione of any Iease, ii this \lertgagc i~ ar. a iea£e}caid. If this Mortgage is on a condominium
<br />unit, Borrower sitsll perform ail of Borrower"s obligations under the declaration of condominium or master deed,
<br />the ay-laws and regulation, of the condaminiurr: project ar•d constituent documents.
<br />7. Proteciioa of Lender's Security, Ii Borrower faits to 1~eriorm the: covenants and agreements contained in
<br />this 1ortgage, or ii any action or proeeedirtg i. commenced chic}; nza=.erially affects Lender's interest in the Prop-
<br />erty, including, but net limited to, eminent domain, ;=zsalvenr_v, rode enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent„ then Lender at I:erder's aption, upon notice to Borrower, ma}• make such
<br />appearances, disburse such sums and tape sucl: action as is necessary to protect Lender's interest, including, but
<br />not limited ta, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender lsursuant to this paragraph s, wit!t interest thereon; shall become additional indebt-
<br />edness of Barrower secured by this =kltuigage. Unless Borrower and Lender agree to other terms of payment, such
<br />amaunts s?iail lie payable upon notice from bender to Borrower requesting payment Thereof, and shall bear in#er-
<br />est fraua the date cf disbursement at the rate stated in the emote unless payment of interest at such rate would be
<br />contrary to applicable Iaw, in which event such amounts shall bear interest at the highest rate permissible by
<br />sppliesble law. \stlting contsine;-} in tEtis Izarag. tplt 7 shall ttquirc Lender to incur any expense or da any act
<br />hereunder.
<br />6: ZEaapeotian. Lender may make or cause #a he rsradc ressanablc entries upon and inspections of the Prop-
<br />erty: pmvided that. bender _=hall give Bormwer notice l:riot~ to any such inspection sl~eifying ressanablc cause
<br />therefor related to Leader's interest in the Property.
<br />S. Crademncsiion. Tire proceeds of any award oi• claim for darczages, direct or consequential, in connection
<br />with. aa~y candernnation or other taking of the Property, or part thereof, or for eonveyarrce in lieri of eondecnfta-
<br />tian, are hereby assigned and shall lee paid to Lender.
<br />Iii the event df a total taking of the Property, the proceeds shall be applied Lo the sums secured by this Mort-
<br />- gage, wth the exCe;B. i# any, paid to Borrower: In the -event of a partial-taking of -the Property, unless Bormwer
<br />and Lander otherwise-agree in writing, there shall he s,ppiiert io the sums secured by this l~fortgage such pmpor-
<br />lion of the proceeds as i& equal to that proportion which: the amount. of -the sums seettred .by thin Moi~gage imme-
<br />disteiy prior to the date of taking bears to the fair tu~rlxet-value of the Prope~•t}• iinittedistelp-prior to the datQ of
<br />taking; kith ~e balariee of the proc~ds paid ta-Iiorrawer.
<br />If rite Property,ls abandoned by Borrower ar if after tiotsce by Lender to Borrower that the condemnor offers
<br />is make an award dr settle a claim for damages, Son'ower fails ter respond to Lender within 30 da~•s of the date
<br />of sash frolics, Lender is suthoiized to collect--and apply. tSte proceeds at Lender's aption either to restoration or
<br />repair of the Property ar to the sums assured ltiy'f.ltis ~foi•tgage.
<br />UrrIess Lender-and Borrower otlreneise agree in writing, any such application of proceeds to principal shall
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