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ii larder paragraph i€ hereof ihc= Property is said or ;he i'ropcrty is ethcrlvisri aeciuixz•d li.• Linder, l,t¢Idrr
<br />chail appl}•, no later than immediately priur• to nc~ .~a;c of the Propi~rty yr it:: acgzzisition by l,~•ndor, :ray funds
<br />held by Lender at the tithe of application as a ,+redit s:gaiu.~t the hums sr•~~ureil h}• this ~kn•tgagc.
<br />3. Plpplication of Payments. 'C?ales, applicable Isle provirtt•s otherwise; ail 1'rsynrents received by 'Leader
<br />under the Note and paragraphs 1 anti 2 hcreeC sh:di he applied by Lcndc~r first in payment vE amounts payable to
<br />~~ Lender by Borrowar under paragraph 3 hereof, thou to interest payable an the Note and vn Future Advanr_es, if
<br />any, and fhen to the principal of tine (vote snd to the principal of Future Ads::aces, if any.
<br />~+ 4, ila~mss; Liens. Borrower shall pap a1{ taxes, assessments and other charges, fines and impositions attrib-
<br />arable to the Property w11icII Iuay attain a priority over this 1lortgage, snd ground rents: if any, at Lender's
<br />j optics, in the manner provided under paragraph 2 hereof or by Borrower making payment; when due, directly to
<br />~ the payee thereof. Harrower shall promptly furnish tv Lender a!I helices of amounts due under this paragraph,
<br />• - alyd in the eveni Barrawer allall make paynrant directly, Barran•er shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; gro-
<br />vided, that Borrower shall not be xequired to discharge any such lien so long as Barrawer shall agree in writing to
<br />tI`ie paynient_of the obligation secured by such lien in a nranner tleceptable to Lender, or shall in good faith contest
<br />such lien by; ar defend enfarcernent of such tier. in, legal proceedings which operate to prevent the enforcement of
<br />the-lien or forfeiture of the PI°operty or any part thereof.
<br />3. Iicrzard Luauraace. Harrower shall keep the improvements now existing ar hereafter erected on the Prop-
<br />erty insured against lass by fire, hazards included-within the term "extended coverage", and such other tzazards as
<br />Lender may require-and in such amounts anci for such periods as Lender may require; provided, that Lender eha11
<br />not require that the amount of such coverage exceed That amount of coverage required to pay the sums secured'by
<br />this ;vlortgage.
<br />file Insurance carrier pravldmg file assurance ehail be chosen l;y Barra;ver sut;)ect to approval by Lender;
<br />provided, that such approval shall hat he unreasonably withheld. III premiums on insurance policies slzail be paid
<br />at Lender's option in the manner provided under paragraph 2 herreof ar by Borrower making payment, when due,
<br />directly Lo the insurance carrier.
<br />In the event any policy is not renewed on or before ten days of itg expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum- shaIl became
<br />immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br />secured by this ?:4ortgage. Failure by $arrawer to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />:fill insurance policies and renewals thereof shall be in form acceptable to Lender anci shall include a standard
<br />morigage clause in favor of and in farm acceptable to Lender. Lender shall have the right to bald the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notieps arld a}1 receipts of paid pre-
<br />miums. In the eveni of loss, Barrosver shall give prompt nonce to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly b}• Borra~~rer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or
<br />repair of f-he Property damaged, pros•ideel such re=torstion or re-pair == {,conomic• ~llc feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration m• repair is not econornicaliy feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied io the suers secured b r this lllortgage,
<br />with lire excess, if any, uaid to Borrower. If the PI•aperty is abandoned by Borrower ar if Borrower fails to seeps»E.
<br />to Lender within 3f) days 4ftar notice by Lender to Harrower filar the insurance carrier offers to settle a claim tar
<br />insurance benefits, bender is authorized to collect and apply the insurarlee graceeds at bender's option either to
<br />. ataraL'an ar repass -~f rho Property ar to the sums s_nured U~. }Ills Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing,~any such application of proceeds to principal shall
<br />not extend or postpene the due date of the znantlrly iusiallmerlts referredta ir. paragraphs i and 2 hereof or change.
<br />the amoant of suds installments.
<br />If under paragraph lg hereai the Yropertic is acquired by Lene~er, all right, title and interest of Borrowar in
<br />and to any insurance policies snd in and to the proceeds thereof +to the extent of the sums secured by-this `fort-
<br />gage immediately prier to such sale ar acquisitior.r re4ulting frcnr damsge tc the Pingerty prior to the sale ar
<br />acquisition shaiI pass to Lender.
<br />6. Preservation and Mainteacmce of Property: Leaaehoids; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not. permit or commit waste, impairment, or deterioration of the Property and shall
<br />~nsply with the provisions of any lease, if ibis Mortgage is ar. a leasehold. If this ~lertgage is on a condominium
<br />unit, Borrower shall perform ail of Borrower's obligatiars under the deeisration of candamirium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />F. Paoteetion of Lendei s Security. If Borrower fails to l~eriorm the covenants and agreements contained in
<br />this 1lortgage, or if any action or proceeding is commenced which Inaterialic atfects bender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain. insolvency. cads cnfvmement, or arrangements or pxoceed-
<br />iugs involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, Wray make such
<br />appearances, disburse such sums and take such sciion as is necessan• to protect Lender's interest, including, but
<br />not limited to, disburement of reasonable attorney's fees and entry upvu the Property to make repair. Any
<br />amounts disbursed by Lendor pursuant to this gsragraph 7, with interest thereon, ehaIl become additional indebtr
<br />sdness of Borrower secured by this Mortgage. Unless Harrower and bender agree to oiher terms of payment, such
<br />amounts shall be payable upon notice irazrl Lender to Borrower requesting payment Thereof, and shalt bear inter-
<br />est from the date of disbursement at the rate slated in the Note unt~s payment of interest at such rate would ba
<br />contrary is applicable law, ir, which event such amcunss slra4 .bear interest at ttte highest rate permissible by
<br />applicable law. Nothing coniained in tiffs paragrapl; stroll require Lender to incur any expanse ar do any act
<br />tleriunde=.
<br />@= fnapeetion. Lender may make or cause to he made reasonable entries upon and inspections of Lhe Pmp-
<br />erty,-provided that Lender shalt give Horraner notice lu•ior to any such inspection specifying r2uson~liie cause
<br />therefor related to Lender's interest irI the Property.
<br />S. CondeK~otica. The praeeeds o€ any award or cisinr for damages, direct or consequeliLial; iiI connection
<br />with any condenlna8ian or ether taking of the Property, or part thereof, or-for conveyance in Iieu of coademna-
<br />lion, are.hereby assigned and :hail be-paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mort-
<br />gage; xvstti f~ ~xcES$; if env, paid to Borrower. In the event of a partial taking. of the Property; unless Borrower
<br />- and ~eizder otherwise agree in writing, there shell"lie alii>lied to-tile. sums secured by this ~iartgage-such propor-
<br />lion of th€: proceeds as is equal to that praportiosr whiclrtiie amount of the sums secured by this Mortgage imme-
<br />xiiately prior to the date of taking bears to rile fair Ilrarket value of-the Property immediately-prior to rho date of
<br />taking, with the balance of the proceeds gaid_txi Harrower;
<br />II t}'e Prepalty-is abandoned by Borrower or i€ sfter notiae: isy Lender to Harrower LhsL Lhe condemnor offers
<br />tt? make an as;ard or ~tLle a dhitrl for damages, Borrower fails to respond to Lender c°ithin 30-days of the date
<br />of-such notice,.-Under is suLboritied to collect and'stiply the.greieeeds at Lender's option either to restoration or
<br />repair of ttie Property or Lo the sums secured by _this 11ort.gage.
<br />Unless Lender:and Borrower atharwise agree in writdng, any such apglieatian of proceeds to principal shall
<br />,~ ~.~':
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