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If under paragraph 18 hereof the Property is solci or the Property is otherwise acquired by Lender, bender
<br />shall apply, no later than immediately prim• to the sale of the Property m• its acquisition by Lender. any Funds
<br />held by Lender at the time of application as a credit against the sums secured I;~~ this ~turt};age..
<br />3. Application of Payments. Unicss applicable law provides otherwise, all payments recriveri by Lender
<br />under the Note and paragraph, i and 2 hereof shall be applied by Leader fl:•st iu payment of amounts payable to
<br />Lender by Borrower under paragraph2 hereof, rhea to interest payable on the ?cote and on Future A<]vr,nces, if
<br />any, and then to the principal of the Notc and to the principal of Future ridvanres, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrih-
<br />utable to the Property which may attain a pricrity over this 1lortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directh• io
<br />the ~ theree€. Barraiwer shall •rorrr~,±Iv furnish to Lender alt notices of amot:nts due under this ara~ra t,
<br />pays, r- , p e p~•.
<br />~ and in the event Borrower shall make payment- directly, Borran•cr shall promptly furnisl: to Lender receipts evi-
<br />~ denting such payments. Borrower shall promptly discharge any lien which has priority over this \iortgage; pro-
<br />vided, that Borrower shall not he required to discharge any such lien so long as Borrower shall agree in writing to
<br />`~ the payment of the obligation secured by such lien in a manner acceptable to Lender, or shaft in good faith contest
<br />~ such lien by, or defend enforcement of suc}r lien in, legal proceedings ;which operate to prewcnf the enforcement of
<br />`~ the lien or forfeiture of the Property or any- part thereof.
<br />5. Hazard Insurance. Borrower shall keep ,ire improvements now existing or hereafter erected on the Prop-
<br />erty insured against Ions by fire, hazards included within the Term `'extended coverage", and such other hazards as
<br />~ Lender may require and in such amounts and far such periods as Lertdcr mac require: provided, that Lender shall
<br />not require that the amount of such coverage exceed that. amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing ttte insurance shall be chosen by Borrower subject to approval by Lender:
<br />provided, that such approve! shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragrapl, 2 hereof or by Borrower 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 pro'~ect
<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 sktall be in ionv acceptable to I:ender and shall include a standard
<br />mortgage clause ir, favor of and in form acceptable to Lender. l,eitder shall have the right to hold the policies and
<br />renewals thereof, and Borrower shaft promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shalt give prompt notice to tl;e insurance carrier ar,r'. Lender, and Ler.dxr
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borro.:Pr othern~ise agree in `writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br />this Mortgage is not thereby impaired. If such rasierition or repair is rot ecanomicall}- feasible or if the security
<br />of this ~Iort~age would be impaired, the insurance proceeds shall be applied to the sums secured by this ?l4ortgage,
<br />with the excess, if any, paid to Borrower. lt' the Property is ahandored by Borrower ar if Borrower fails to respond
<br />to Lender within 30 days after notice by- Lender to Borrower that the insurance carrier offers io settle a claim for
<br />insurance benefits, bender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this Mortgage.
<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 monthly installments referred to ir, paragraphs i and 2 hereof or change
<br />the amount of snob installments.
<br />If tinder paragraph 18 hereof the Property is acquired by Lender, al! right, 'title and interest of Borrower in
<br />sad to any insurance policies and in and to the proceeds thereof ~ to the extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisition) resulting iron damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. t~resezvatioa and Fain#eaance of Prcperiy: Leaseholds: Condominiums. Borrower s'rail keep 'the Prop-
<br />erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br />comply with the provisions of any lease, if this Mortgage is on a leasehold. If this llot•tgsge is on a condominium
<br />unit, Borrower shall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium protect and constituent documents.
<br />7. Protection of LendeY s Securiig. If Borrower fails to perform the covenants and agreements contained in
<br />this llortgsge, 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, code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such stuns and take such action as is necessan• to protect Lender's interest, 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 r, with interest thereon, shalt become additional indebtc
<br />edness of Borrower secured by this Jlortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall he payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />sat 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 shall bear interest at the highest rate permissible by
<br />applioable law. I~Tothing contained in this paragraph 'shall require Lender to incur any expense or do any act
<br />hereunder.
<br />H. Iaspaction. Lender may make or cause to be made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice Ivim•to any such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9. Coadea~aatioa. The proceeds of any-award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br />tian,are hereby assigned and shall 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, with.. the excess; if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender ofi~hetwiss ague in writing, there shall be applied to the sums secured by this ~4ortgage such propor-
<br />tion of the proceeds as is equal to that proportiori which-.the amount of the sums secured by this Mortgage imme-
<br />diately prior to-the date of taking beamto the fair market value of the Property immediately prior to the date of
<br />taking,-with the baianse of tl,e proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make an award orsettls a clairti-for damages, Barrawer faits to respond to Lender within 30 days of the date
<br />of such notice, Lender is authorized *.o collect and aplily the jtroeeeds at bender's option either to restoration or
<br />repair of the Property or to the-sums secured by tihislfortgage.
<br />Unless Leader and Borrower otherwise agree in 4vriting, any such applicatior. of proceeds to principal shall
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