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` If under paragraph tg he-reo; the Prap°rt.ti• is Bald e,~ rt~,~ t>roh~,rt., s ot.}tprv,~iE. ,,.rquir+~d by Lender; Lender
<br />shall apply. no later than immediately prior Cn tho sa;c of the .Property or ifs sedui.sition by Lender, any Ftmds
<br />held by Lender at the time of application ae a credit against the sums eernred by rhis \Iort;;at;c.
<br />3. Application of Payments. Uciless applicaicic late !n•avi<}rs oiicerwi,=c, ail puyment5 received h}' bender
<br />tinder the lbote and paragrrphs I and 2 hereof shall l,c~ ;,tl~+Itlied by Lender first iu payment of amounts payable to
<br />Lender by Borrower under psrmgrapli `l hereof, then to interest payable an the lots and an Future Advances, if
<br />,r~+t,o„ to t1,r nr;nri,ltal of the tote accil to Cho lrincipal of L+'ut.ure Advances, if any.
<br />ac.~, ac., .....,.. -_ ~-- _-
<br />4. Charges; Laeas. Borrower shall pay all taxes, assessments acrd other charges, fines and impositions sttrib-
<br />utabls to the Property which msp attain s priority over this lfartgage, and ground rents, if any, at Lender's
<br />option in the mariner provided under paragraph 2 hereof ar by Borrower making payment, when due, directly to
<br />the payee thereat.. Borrower-shall l;ramptly furnish co T ender all notices of amounts due under this paragraph,
<br />and in the-avant Dorrawer shall rnar•e ,ray:c:cr:t d'ereE~lg, I'_arraner ~t.rtli prarriptly farrxieh to Lender c~ei}~tn evi-
<br />dericing suelt paymenis. Borrower shall promptly din }i.rrge `;nv lieu n~hich has priority-over this 1~Iartgage; pro-
<br />- '~ vided, that Barrowei• shall na+ be required to .t, <harg wn~ ,.~cii lien so Iong as ;3c?rrotiver shall agree in writing to
<br />~ the payment of the ahligation secured 1>y such lien in a manner acceptable to Lender: ar shall in gaol faith contest
<br />? ~ such Lien by, or defend eafareement of suck Iierc ia, legal groceediugs whirl? operate to prevent the enforcement of
<br />the lien or forfeiture of the Property nr- any pari thereof:
<br />~ 5. Hazard Insurance, Borrower shall keep 'the irnproc•ements now existing or hereafter erected on the Yrop-
<br />~ erty insured against. loss by fire, hazards included within the ierrn "extended cacerage", and such other hazards as
<br />~` Lender may require and in such amounts anei for such periods as Lender may require: provider}, that Lender shall
<br />-- not require tfcat the snrount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />this lortgage.
<br />The insurance carrier providing ilce insurance sl-ra11 'ne chosen t;y Borrower subject to approval by Lender;
<br />provided, that such approval sha11 not be tmreasonabiy withheld. Ali premiums on insurance policies shsll be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />direct[y to the insurance carrier.
<br />in the event any policy is not renewed on ar before ten days of its expiration, the Lender, to protect
<br />its interest, mac procure insurance an the improvements, pay the premiums and such sum shall become
<br />immediately due and payable with interest at the rata 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 />Atl insurance policies and renewals thereof shsil be in forte acceptab}e to Lander and shall include a standard
<br />;nnrtgage clause in favor of and in form aeceptahle to Lender. Lem}ir shall have the light to hold the policies and
<br />renewals thereat, and Borrower shall prnmotly furnish to Lender all renewal notices sad all receipts of -paid -pre-
<br />miums. In the event of loss, Borrower shall give prompt nonce to the insurance carrier and Lender, and i;endei•
<br />may make proof of loss if not made promptly by Borrotvee.
<br />Unless Lender and Borrower ot.henvise agree in writing, cusurance proceeds shall be applied to restoration ar
<br />repair of the Property damaged. provided sncic restoration or repair is ecoramically teasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not eavnornically feasible or if the security
<br />of this 3'Iortgage would be imgaired, the insurance proceeds shall 4ie applied to the sums secured by this ,Mortgage,
<br />with the excess, if any, paid to Borrower-. If the Yral~erty i:. abaaalaned h_y Borrower or if Borrower fails to respond
<br />to Lender within 3Q-days after notice by Lender to $arrow•er That. rite in::=trsnce carrier offers to settle a claim`-
<br />insurance benefits,. Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />restoration ar repair of the Property ar to the sums secured by this ~Ca=:,gage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend ar postpone the due date of the monthiv instsllments referred La in paragraphs I and 2 hereo# or change
<br />the smouni of such installments.
<br />I# under paragraph f8 hereof the Yroperts is acquired by Lender, all right; Title and interest of Banower in
<br />and to any insurance Iwlicies and in snd to the proceeds thereon" 1 to the extent of the srmrs secured- by this ~Iarl;-
<br />gsge immedistely prior to`sucir sale or acquisitian± resulting fratn da===age to the ProperLy~prioi• to the sale or
<br />acquisition shall pass to Ixnder.
<br />6. Preservation rind Maizttenanee of Pro~rty: Leaseholds: Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit or commit wasie, impairneni, or deterioration of the Property and shall
<br />comply with the pravisians of say lease, it this Mortgage is an a leasehaid. If this Mortgage is oa a candamioium
<br />unit, Borrower sha11 perform ail of Borrower`s obiigatians under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium ltroiect and constituent documents.
<br />7. Pro#ee#ion of Condor's Security. I: Borrower fails to perform the covenants and agreements contained in
<br />this = fortgage, or if any action pr proceeding is commenced which rnaierially affec?s i.ender ~ interest in the Prop-
<br />erty, including, but not limited to, eminent domain. iusolcenoy, code enforcement, or arrangements. or proceed-
<br />-- lugs involving a bankrupt ar decedent, t'ren Lender st Lender's optiar., upon notice to Borrower, may make-such
<br />appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including; but
<br />not limited to; disbursement of ressanable attorney's feES and entry upon the Property to make repairs. Tiny
<br />amounts disbursed by Lender pursuant to this paragraph 7, wiih interest thereon, shall become additionat indebtr
<br />edness of Harrower secured by this 3ortgage. Unless Harrower and Lender agree to other Terms of payment, such
<br />amounts shall be paya'ole upon notice from Lender to I3arrawer requesting psyrnent thereof, and shall bear inter-
<br />- eat from the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br />contrary to applicable law,- in which event such amounts shay, bear interest at the highest rate permissible }ry
<br />° applicable. law. lothing contained in this paragraph ;shall require Lender to incur any expense or do any set
<br />lrereu~er.
<br />6. Tasgactioa, Lender may make-ar esuse to !te made reasanahle entries upon and inspe~tians of the P.~vp-
<br />erty; .provided that Lender,slial} gtve Borrower nonce prior to snv such inspection specifying reasanal>le cause
<br />+~ therefor related to Lender's interest in the Property.
<br />9. Condeauseiiiia. Th® proceeds of any award or claim. for damages, dixect or eonsegneatiai, in canxcior
<br />- with any eandemnation or other taking of the Property, or hart thereof, or far conveyance in line of condemns-
<br />tion, are hereby.assigned snd shall be paid to Lender.
<br />In-these^nt of a total takingof-the Prapezty, the proceeds sl>all Ytc applied to the sums secured by this Mort-
<br />gsge, veif.le the excess; if any, gold to Borrower: In the event:of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, tL-ere shall fie apptic~# to *'.he scans secured by this Mortgage such propor-
<br />lion of thepmceeds as iscqusl to that proportion which the ksnount of the sums secured by this liartgage iratne-
<br />• _distBly prior to the-date of taking hears to tfte lair toarket value of tLe Property= immediately prior to the date of
<br />~ingrwi;~ ~hR 6"slst~e a€ t.I~=pr~c~~ds paid to I3arro~s-er
<br />Tf the Property ~abandai,ed 'ny 13orraw•er cr if niter notice b~ Lender ta.Borrower that-the condemnor affars
<br />#Ci~ake an aarard a. settle ~clsim fa darasges, Barrouer Sails to resporrcl to Lender within 3tl days of the date
<br />of sash notice, Lender is authmiived to collect x,nd apply ti:e lu•acatril at Lender`s-nptian either to restoration or
<br />repaitaf~thePr~Zerty-or tofhe,sunL scoured by rlu.=. llortgagF '-
<br />Unless Lender and Borrower gtl,arwire agree in writing, any such applieatian of proceeds to principal Rhali
<br />° _., ,_
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