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<br />IY under paaragraph 18 hereof th€ Property i~ ,.=alit or the- }'tropert.t i., o•.hcrtei>e~ acquired br Leudcr, Lender
<br />-hall apply, no later than inuneciiatel}- pa;or to thi~ sole ac thr Prolrcrty or it= acr{uisitian by L+tuler. nin~ I'und~
<br />held by Lender at Htc time of ap}+licatiorc :as .t : rcilit ahaiu~t the sump sccurrd h~~ this ~Iartga~r.
<br />~. AppHca$on of Payraenfs. [inlcs~ apl+lieahlc Iaw pravid+~s nthcr:ti,w~, ell payments recei:~ud b} Lmnder
<br />under the Natc and }rueagraphs 1 and 2 hereof sh:il! ht' aplclied Ir: Len+Iti r first in payment of arnonnts pay<s61e to
<br />Lender by Borrower under paragraph 2 hereof, then to inU~rest. payable on fhe Aote. amt au Future eldvances, if
<br />any, and then to flee Icrin€ipat of tits tiatc :tint to the ;+rincipal of huture :}dvances, if any.
<br />~. Charges; Liens. Borrower shall pay all taxes, acs€ssrnents and other €harges, fines and iml,tositions attrib-
<br />~"°b12 ~^ the I'r^~*t=- ~„h;ch =n ~.f fain ,~ priarit.y over this 3fartgage, and gromtct rents, ii any, at Lender's
<br />option in the manner prodded under paragraph 2 hereof ar by Borroc+•€r making payment., ashen due, directly io
<br />the payee thereof, Borrower shall proanpt-ly iuruish to Lender all notices of amounts due tinder this paragraph,
<br />and in the event Barroccer shall make payment directly-, Borrower shaft promptly iuruish to herder receipts evi-
<br />dencing such payments. Borrower shat! promptly discharge any lien which has priority eer this Mortgage; pro-
<br />vided, that Harrower snail not l.e r€quireci to discharge ant such lien so long as Borrower shaft agree in writing to
<br />the payment of the obligation secured by such lie;r in a manner acceptable to bender, m• shall in good faith contest
<br />such lien by, or defend en*'orcement of such !fen in, lega3 luoceedings which operate to prevent the enforcement of
<br />the lien ar farieiture of the Property m• spy part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements nose existing or hereafter erected on the Prop-
<br />erty insurzd against loss by fire, hazards included within ttae term "extenrieti coverage", and such other hazards as
<br />Lender may require and in such anrounis and for such period= as Lender may require; prodded, that- Lender shall
<br />not require that the anmunt of such caterage exceed that amount ai coverage required to pap the scans secured'by
<br />this 3ortgage.
<br />The insurance carrier providing tree insurauee shalt he chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not tae unreasonably ctithheid.:yll premi,rrats on insurance policies shalt he paid
<br />a+, Lender`s option in the manner hravided under paragraph 2 hereof ar 6y Borrower staking payment, wfter, 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 Lander, to protect
<br />its interest, map 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 thereat ,hall he in form aec~ptable ro Lender anti shall include a standard
<br />mortgage riause in i'avor of and in form acceptable to Lender. Lender stroll ha:-e the right to hold the policies and
<br />renewals thereof, and Borrower shalt promptly furnish to Lender alt renewal noticQS and all receipts of paid pre-
<br />miums. In the event. of lass, Borrower shall glee prompt nonce ut the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly i.y Horro:ter.
<br />Unless Lender and Borrower otherwise agree in writing, insurance uraeeeds snail be applied to restoration or
<br />repair of the Property damaged, prodded such restoratiart ar repair i= econamicsilp feasible creel the security of
<br />this ;tilortgage is not thereby impaired. Ii such restoration or repair is c.oi eeanamir:il~ fcasit;le ar if the security
<br />of this _lortgage would be impaired, the insurance proceeds shall be aI3}iieu is the sum; secured lay this \Iartgage,
<br />with the excess, if arty, paid to Harrower- If the FropetK.r is ahancioned hr Bann=er sr i Ilarrawer fails to respond
<br />to Lender within 3t) days after notice by Lender to Borro:c-er that tl:e insurance earritr a'ter tv saute a claim snr
<br />insurance benefits, Lender is aat;larizeci to caller and apply the insurance proceeds ai Lender's option 8itiier to
<br />restoration ox repair of the Property or to the sums secured b}- this ~forigage.
<br />Unless Lender and Borrower ot.herwis€ agree in writing, any sue;: application of proceeds to principal shall
<br />not extend or postpone the due date of the mantht}- irstallnteats referred to in paragraphs I and 2 hereof or change
<br />the aaaount of such installments.
<br />If under paragraph I$ hereof the Property is acquired by Lender, all right, title and ',merest of Borrower in
<br />and to any insurance policies and in and to ttte proceeds tiaereaf to the. extent of the sums secured by this ~•Iort-
<br />gage immedia--rely pria!• to such sale ar acquisitions resulting from damage to the Properly prior to flee sale or
<br />acquisition shall pass to Lender.
<br />6. Frsservation and Maimtenaace of Property; Leaseholds; Condominiums. Borrower shalt keep the Prop-
<br />erty in good repair and shall not permit or commit caasie, impairment, ar detenoratuact ci the Property and shall
<br />comply wi±h the proc-isions of any lease, if This Mort:gage is o^ a leasehold. If this Mortgage is an a condominium
<br />urwt, Barran:er shall perform all of Borrower's abIigatiens under the declaration of cortiominium ar master decMi,
<br />the by-taws and regulations o3 'the condominium protect and constituent doeument~.
<br />9. Frotectian of Lender's Security. If Borrower fail: ;o perform the cotenants sad agreements contained in
<br />this \4ortgage, ar if any action or proceeding is cammer;ced which materualh• atTects Lender ; interest in the Prop-
<br />erty, including, but not limited to, eminent domain, insah-encc, code erafarcement. ar carrangem~nts ar proeeerl-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borracter, mac make such
<br />appearances, disburse such sums and take such action as is necessary to protect Lenders ineerest., including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to- this paragraph 7, with interest thereon, shall become additianaf indebt-
<br />edness of Borrower secured by this lforigage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be psyablo upon native from Lender to Borrower requesting pa}•naeni. t.hereaf, and shall bear intxr-
<br />est from the date of disbursement at the rate stated in the \ote unless payment of interest at such rate would be
<br />contraryta applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applfeabie law. tiothing contained in tl;is paragraph shall tti.quire Lender to incur any expense ar do spy act
<br />hereunder.
<br />$. Iaspaetiom Lender may make or cause to be inadc reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall rive Borrower ratiee }+rior to any such inspection specif}•ing reasonable reuse
<br />therefor related to L•ender's interest. in the Property.
<br />9< Coademaatiozr. The proceeds of any award ar claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or for eanveyance in lieu of condemna-
<br />tion, are. hereby sssigne;~ and shall be paid to Lender.
<br />Iu the event of a total taking of the Property, the proceeds shall be applied to the sums secured by ±his Mort-
<br />gage, with#.~t~plc~gs~;;ftany, paid io Harrower: In fire event of s partiat taking of the Property, unless Borrower
<br />amI Lender'othei•taise'agrae ir. r:riting, there shall he applied to the stuns secured by this Mortgage such propor-
<br />tion of the proceeds as is equal to that praporiion which the smount of the sums secured by this ~Sortgage imme-
<br />' diateiy priest to the date of taking I>ea.ra to the fair ansrket value of floe Property-immediately prior to the data of
<br />tsfsing, with the laslanea of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower ar if after notice by Lender to Borrower that the condemnor offers
<br />to snake art aivattl or settle a elaira for damages; Barcower faits to respond ta-Lender within 3fl days of the date
<br />of sueli notice, Lender is authorized to collect, and split}• the itmceeds at Lender's option either to restoration or
<br />repair of the Property arto-the sums secured by dais \Im•tgage.
<br />Unless Lender and Borrav.er otherwise agree in :vriting, any such application of proceeds to principal shall
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