|
If under Paragraphs IS itereot the Property is =old or rhr. Property is ot.herscise ;u•quirer! by Lender. Lender
<br />shall appl}-, rto later risen inmsediat2Jy prior to the sale of the Praperrs or it= acquisition by Lender, ury hued
<br />held by Lender at the tune of appP,cation :r= ce t•a•dit against the ,nms> <:vnrrrd Fc thi- ~Iartgtt;r.
<br />3. Application of 1?oymants. 'unless :tpl;iicalric~ I.rss proc•ide~ nthera•i::c, afl payment= receis•crl by l,emder
<br />under the Note anti 1aragraphs ]and 2 hereof sh:±ll bey tsl;plieci 1*y~ Leader first in payment ,~~f au;ounts payablz t.o
<br />ems. Lender by Borrasvzr under paragraph 2 iszreof, then to interest payable mt the Aatc 3n~i an Future :':drances, if
<br />~,, any, and then xo the principal of the Note and to the principal of future advances, if atty.
<br />,.--, 9. Charges; Liens, Borrower shall pay a!1 korxes, assessments and other charges, Saes and impositions attrib-
<br />utable to the Property ;ahieh may attain a priority over this _llartgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or Icy Barrosver snaking payment, when due, directly Lo
<br />i the payer' thereof. Borrower shall nromntly furnish to Lender atI tratiecs of amounts due uncles this paragraph,
<br />;„ and in the event Borrower shalt make pay:nznt dirzetly, Barran'zr shall lsramptly fnntish to Lender receiptE evi-
<br />- denting Stich payments. Borrawer shall promptly discharge any lien wltirh has priority over this .ilortgsge; -pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Borrower slta!1 agree in writing to
<br />the payment of the obligation secured by such lien in a riratuser acceptable to Lender, or shall in good-faith eantest
<br />such lizn by, or defend enforeemznt at such lien in, legal lsroeeedings svleich operate to prevznt the eniorcament of
<br />the lies or forfeiture of the Property or any part thereof.
<br />5. Hmard assurance. Borrower shall keep the improvements nos;- existing er hereafter erected an the Prop-
<br />erty insured against loss by ftre, hazards included within the term "extended coverage", and such outer hazards as
<br />Lender may require and in such amounts and for such periods ss Lender may require: provided, that Lender shall
<br />4 not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />this Ivaortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall net be unreasonably svithlreld. ~ Ii premiums on insurance policies shall be paid
<br />at Lender's option ir. the manner provided under paragraph 2 hereof or by Borrawer 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 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 this Mortgage.
<br />All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard
<br />mor'~age clause is favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of lass, Harrower eltsll give 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 Horrower othernise agree in writing, insurance proceeds shall 6e appliedta restoration ar
<br />repair of the Property damagzd, provided such restaratiors or repair is econonricaily feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such restorttion os• repair is net ecenornieally feasible or if the scans=ty
<br />of this \fartgage would be impaired, the insurance proceeds shall i,e applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. Ii the Property is abandoned by Borro:s~er ar if $arrower fails to respanrl
<br />to Lender within 30 days after notice by Lender to Borra:~er that the insurance carrier offers to settle a claim far
<br />insurance benefits, Lender is authorized to collect and apply thz insurance proceeds at Lender's option either to
<br />reatvrs.tton or repair of the Property or to the sums secured by this ~lortgagz.
<br />iiniess Lender and Borrower otitent-ise agree in vcri%ing, any suet; application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such instaIImenis.
<br />L under paragraph a& hereof the Property is acquired by Lender, all right, title and interest of Borrawer in
<br />and to any insurance policies and in snr•. to the proeezds thereof tto the extent. of 'the sums' secured by this Mort-
<br />gage immediately prior to Stich sale or aenuisitianl resuming front damage to the Property prior to the sale or
<br />acquisition shall pass io Lender.
<br />li. Fresersatioa sad AQaiaten~ce of Property; Leaseholds: Coadoraiaiums. Borrower shall keep the Prop-
<br />erty in good repair and shat not permit. or commit waste, impairment, ar deterioration of the Property and shall
<br />comply with the pros•isions of any lease, if this ~Iartgage is on a leasehold. If this Mortgage is on a condominium
<br />unit, Harrower shall perform all ai Borowzr's abligatiors under rise declaration of condominium or master deed,
<br />the by-Iaws and regulations of the condominium project and constituent documents.
<br />7. Protecfian of Lender's Seeurify. It Borrower fails to perform rise covenants 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 />erty, including, but not limited to, eminent domain, insolvency, Cade entoreement, or arrangements or proceed-
<br />ings involving a bankrupt ar decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums and take such action as is necessary to protect Lender's 6nterest, including,-but
<br />net limited ta, disbursement of rzasoaable attorney°'s fees and entry upon the Property to make repairs. Any
<br />amotmts disltursed by Lender pursuant to this psragraplr 7, with interest thereon; shall become additional ittdelrt:
<br />edness of Borrower secured by this 1lartgage. L7nless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon aeries from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est from thz date of disbursement at the rate stated in the :vote tutIess payment of intetert at such rate would be
<br />contrary to applicable law, in which event such an;ounts shall bear interest at the highest ratz permissible by
<br />applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any expense or do any act
<br />hereunder.
<br />~. as~geetion, Lender may snake ar cause to he inadc reasonable entries upon end inspections of-the Prop-
<br />arty, pmiided that Lender shall give Harrerrer notice prior to any such inspection specifying reasonable cause
<br />therefor related to Lender`s interest in the Property:
<br />S. Coaderrtaatiaa: Tire proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation ar other taking of the Property, or part thereof, or for conveyance in lieu of condemns--
<br />. tion, are hereby assigned end shs'.i be paid to Lender.
<br />an tine event ^: a io;at taking rf the Property, the proceeds shall be applied to the sum.-: secured by this Mt3rt-
<br />gage, with the ea~eess, if any -ya::: to Borrower. In the event of a partial taking of the Property, unless Harrower
<br />and I,Bnder otherwise wee rzi writing, there slratl be applied to rite sutras secured by this i4fortgage such propoi•-
<br />tion of the proceeds as is ogtial to-that pi•cportian which tile-amount of the attms secured by this l~fartgage imrne-
<br />diatEly prior to the date 3f taking nears ~o rise fair market value of tlrz Property immediately prior fa the data of
<br />taking, will? the Balance of Elie proceeds paid to lorrower.
<br />If t13e-Property i= abandoned by $orra~er or if after uatice by Lender to Harrower that the condemnor offers
<br />to make an sward cr settle s ciaitr~ fdr damsg~; Borrower €aiis 4o r~pand to Lender within 3~ days of the date
<br />of welt notice,-Leader is aritlto=-isr:d to collect and apply the proceeds at Lender's npt.ion either to restoration or
<br />rep~ii of the Property yr tar the ruins secured by this Mortgage.
<br />unless Lender and Harrower otherwise agree in writing, any such application of proceeds to principal shall
<br />
|