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if ender paragraph 18 hereof the Prolrertc is sold or the Prorerty is atherwise acquired by i,ender, Lender
<br />shall apply, no later than immediately prior ka th<< sale of the Pa•opvs•ty or its acquisition by Lender, any Funds
<br />held by Lendea~ at the time of application as a ;credit against tlx: suns secured b~• this 'Mortgage.
<br />3. Application of Peryments. Unless ahiaicsblc lair provfrlas atherwise, all payments received by Lender
<br />under the Note a-nd paragraphs 1 and 2 hereof sita}i ho ap{ylied by Lender first in }zaz•snent of amounts payable to
<br />Lender l;y Barrawer under paragraph 2 hereof, Nsctr to interest payalrlc on the tiote and an Future Rdvsnees, if
<br />any, and tlxesr to the principal of the Vote ant! to the principal of Future advances, if anv.
<br />4. Charges; Liens. Borrower shalt pay a?i taxes; assessments and other charges, fines and impositions attr}h-
<br />utab}e to the Property which may attain a priority over this llartgage, and ground rents, if any, at Lender's
<br />aptian in the manner pra~•ided under paragraph 2 her~:af or be ]3vrrawe,* reeked, pa;•ment, when due, directly to
<br />the pa en th°a~a€. Barrowea• s}tal] prU,nptty furristr tc; L:tder ail naiices of amoursts due under this paragraph,
<br />and in flee event Harrower shad make taavment directly, Barrou-er shalt- prompti•r' tarnish to Lender receipts evi-
<br />deneingsuch aa_vrseata. Barrawors}ral] prarnpfly disslrarge anv ?fen wlrieh fads l;sdoeitc veer this ilvrtgage; pro-
<br />},~ vided, Lhat Harrower shall eat be required to discharge arse suet: lien sa long a` Borrv;ver s!.at] agree in writing to
<br />,,~: t'-.~-a paJrn=nt of the ohligatian secured by su: h lien i•° ° as;;,rr acceptztuie to Lender, or she}i in good faith vontest
<br />---q such }fen by, or defend enforcement of sac.}s }fen in, legal proceeding;, which v};crate to prevent the enforcement of
<br />~} the ties or forfeiture of the Property or anv part thereof.
<br />"~- 5. ii'azard &tsurance. Borrower shall keep the improvements pan- existing or hereafter erected on the Prap-
<br />,,;~ ertp insured against loss. by fire, hsaards included within the term "extended coverage", and suet other ha2ards as
<br />Lender rosy require and in such amounts and. for such periods as Lender mac regaire; provided, drat.I,ender aha}3
<br />eat require that the amount of such coverage exceed t}rat amount of coverage required to pay the-sums secsrred'by
<br />~ this ~sortgage.
<br />1'. The insurance carrier providing the insurance shad ue cirasen by Borrower subject to approval by Lender;
<br />provided, that such approve} shall eat be unreasonably ~vithheid. 311 premiums an insurance policies s}ral] be paid
<br />at Lender's option in the manner provided under paragraph 2 lsereaf ar by Barravrer making payment, when doe,
<br />directly to the insurance carrier.
<br />In the event any policy is eat renewed on or before tea 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 />i~iediatefy due and payable with interest at the ratz set forth in said note until paid and shalt be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a defatrit
<br />under the terms of this Mortgage.
<br />A]} insurance paiicias snd renewals thereof shall lee in farm acceptable tv Lender and shad include a standard
<br />urartigage clause in favor of snd in form acceptable tv Lender. Lender shall have ±he right to hold the policies and
<br />renewals thereof, and Borrower shall lxamptfy furnish to L-ender all renewal notices and a}l receipts of paid pre-
<br />miums. In the event of loss, Borrower shalt give prompt notice to the i.zsursnce carrier and bender, and Lender
<br />snag make proof of lass if not made promptly by Barrow•er.
<br />Lrnless Lender and Horrow•er otherwise agree in writin_; insurance praeseds shall be aap}ied to restoration or
<br />repair of the Property damaged, provided such restoration yr repair v eeononrically feasible and the security of
<br />this Mortgage is not thereby impaired. If such resturaivr, ar repair is rot- vcvnamicsliy feasible ar if the security
<br />of this &ivrtgage would be impaired, the insurance proceeds shall be applie€i to the sums secured by this ~tortgsge,
<br />avitls the excess, if any, paid to Borrower. If €hr Prai;ertp is a6snd~nefi be Barrawar ar ii Borrower fails to tesponc
<br />to Lender within 34 days ,.ct,,. notice l;p Lender to Borrower that the insurance earner offers to settle a claim far
<br />ineu once ^.°nefrts, I ender is auth:,r`~ed to ea}lect and a lu the insurance rveeeds at
<br />Pp . p Lender's aptian either to
<br />restoration ar repair of the Property arto flee sums secured be this ~tartgage.
<br />Unless Lender and Borrower otherwise agree in ws•iiiug, anv such applicai"ion of proceeds to principal shat}
<br />not eztsnd or postpone the due date of the rnanthty insiallments referred to in paragraphs l and 2 }iereof or change
<br />the arxaunt of such installments.
<br />If under paragraph iS hereof the Praoer•ty is acquired by Lender, ail right: title and interest of $orrawer in
<br />and to app insuranc:: policies and in andta flee psveeeds tlterevi f to the extent. of flee sums secured by this 14fart-
<br />gage imm~liatzlp prier to such sale v'r acquisitivni resu;cin_u irons damage to tlae Property prior to the sale or
<br />acquisition shale pass to Under. .
<br />&, Presezvatioa ~d Maintenance of Properly; Leaseholds; Coadosainiums. Borrower shall keep the Prop-
<br />c~ty in good repair and shell rat. peg uit ar commit waste, irupairnent, or deter?aratian of the Property and shall
<br />comply w}tlx the provisfans of any Lease, if this Mortgage is on a Icaseholci. If this ~Iortgsge is on a condominium
<br />unit, Borrower shall perform a}1 of Borrower's obligations under the der?aratian of condasninium v.* masher did,
<br />the by-laws and regulations of the candaminiunr lxra;ect and constituent documents.
<br />7. Protection of Leader's Security. If Harrower fail, tv l;crfar•cn the covenants snd agreements eontaxued in
<br />this ~iartgage, ar if any aetian ar ps.aceeding is commenced which tnaterially affects Lenders interest in the Prop-
<br />erty., including, but zsvt Limited to, eminent :iemain. insvi~•csscy. code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at ?-ender ~ option, upon notice to Harrower; spay make such
<br />appearances, disbar e suelr sums and take sue}; action as is necessan• to prateci Lender's interest, including, but
<br />not limited. ta, diabsrrsemont of reasonable attorney`s fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph ,with interest thereon, shall become additional indebt-
<br />edness of Borrower secured by this Sortgage. 1?nless Horrower aril i.ersder spree to other terms of payment, such
<br />amounts shall be parable upon notice imne Lender *_o Borrower requesting payment thereof, snd sbal} bear inter-
<br />est from the date of disbursement at the rtste stated err the :dote unless payment of interest at such rate would be
<br />contrary to app}ieable law; in which event such smounis shall bear interest st the highest rate permissible by
<br />appticsble Saw. nothing contained ir. f{us paragraph i shah require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Lzsgsetian. Leader redo make ar cause to i;r saadc: seasonable ent.Fies upon and inspections of"the. Prop-
<br />arty, faravided that Lender slxal} gee Borrower notice lu~ierr to anv suelt irapectian specifying reasnnafile csti.~e
<br />'therefor related to"Lender's-interest in the Property.
<br />S- Coitder~satiezi. The proceeds of any award or-claim for damages, direct ar conseq•.xentisl, in ca.~tne~tic>n
<br />with 8ny condernnatlon or other taking of the Property, ar Bart thereof, ar far conveyance. in Lieu of candemna~
<br />Lion, sm herntay assigned and shelf ho-paid to Lender.
<br />Ire the avant of s total taking of the Property, the prareeds shall he applied to the sutras secured by this Mort
<br />gage, _svit~the ex+;ess, if any, paid to Borrower. in the event of a prartial taking oZ tkie Property., unless-Borrower
<br />acid Lieiider otiserWi agree in writing, ttxere sli~tl be applied to-the sisins secured leg thrs Mortgage: stieh propor-
<br />tioa of the proceeds as i$ equal to 4~at proportion which the. ainaunt of-the sums secured: by-.this A4aitgage imme-
<br />di~tely piece to the date ~= t::killg iaesir r . fir y, fah tiiseket value irf the: Prapcrty-inxniediateiy prier itj the date of
<br />t&~ipg, with the naiance o3 the proceeds paid to I3ot Qtves.
<br />If the Pra{;crty ;s sb&ndonecl bs• Bn; rawer ar if after notice bj Lender to Burrower that the condemnor offers
<br />to make an award or settle 3 ciainr ter damages, i3errower fails to respond fu Lander within 3fl days of-the date
<br />of a3seis-notice, Fender is authorised to collect aunt apply the-Praeeede=at I:eiider's-option eitlser to restoration or
<br />repair a` t.Iie Property ar to ihes'quss Fei;ttr~i bg fl;is livrtgage:
<br />Ltzile~ Lander- auc; Bvrroc~er otherstisr lea in writing,-anv sash appliuatian of proceeds to principal shall
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