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If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by bender, Lender
<br />shall apply, r:o later than immediately prior to the sale of the Property or it_ acyuieition by Lemter, any Nunds
<br />held by Lender at the Time of application as a credit against the sums sraurcri b}• this Mortgage.
<br />9. Application of Payments. Unless applicable L•t;~~ 1'novides otherwise, all pay:ncuts receic•ed by Lender
<br />under the iYote and paragraphs I and `l bereof shall I~~c applied i:g Lender first: in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 Lereof, then to intc:rst payable a? the \Tote ;xnd an Future Advanu~es, if
<br />any, and then to the principal of the \ote and to the principal of Future Advances, i,• any. '
<br />4. Charges; Liens. Borrower shall pay alt lases, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority .over this \Qortgage, 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; directly to
<br />the payee thereof. Borrower shall pramptl}• furnish to Lender all notices of atnoupts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Bon•on•er shall promptly furnish to Lender receipts evi-
<br />~ dencing sue17 payments. Borrower shall promptly discharge any lien which has priority aver this 1lortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge any such lisp 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, ar shall in good faith contest
<br />~ such lien by; or defend enforcement of such lien in, legal proceedings ;vhici: operate to pre.•ent the enfareement of
<br />~ the lien or tt"orfeiture of Che Property or any part thereof.
<br />~ 5. Hazard Irisurance. Borrawer shall keep the improvements now existing or i?ereafter erected on the Prop-
<br />! erty insured against toss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />~ Lender may require and in such amounts and for such periods as. Lender may require: provided, that Lender shall
<br />~ not require that the amour.± of such coverage exceed that amount of coverage required to pac the sums seeured'by
<br />ibis 141ortgage.
<br />The insurance Harrier providing the insurance shall 6e chosen by Bcrrower subiect to annroval by Lender;
<br />provided, that such approval shall not be unreasonably ;withheld. 311 premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 3 hereof or b}• Borrower making payment; when due,
<br />directly to lisp insurance carrier.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its inheres#, 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 Hate until paid and shall be
<br />secured by this !'fortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this hfortgage.
<br />311 insurance policies and renewals thereof shall be ir. form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shalt bare tl:e right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender al} renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />:nay make proof of loss if not made promptly by Borrower.
<br />unless Lender and Bor,•ow•er rtherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />sepsis of the Property damaged, provided such restoration or repair is econnmicaliy fe~ssib!e and 'the security of
<br />this Mortgage is not thereby impaired. If such restoration ar repair is not economically feasible or if the securtty
<br />of this Mortgage would be impaired, the insurance proceeds sitaii lee applied to the sums secured by this i4fortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned b}• Borrower or if Barrower Fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />rAEtoratian ar repair of the Property or to the sums secured b}- ibis 33ortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly irstallments referred to in paragraphs 1 srd 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 28 hereof the Property is acquired by Lender, ail right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof tto the extent of the sums secured by this IVlort-
<br />gags immediately prior is such sale ar acquisitioni resulting frnu? damage to the Property prier to the sale or
<br />acquisition shaI] pass to Lender.
<br />6. Pzeservatioa and Nfaiateaance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in gaud repair and shall not. permit or commit waste, impairment. or deterioration of the Property and shall
<br />aamply with the provisions of any 3ease, if this Mortgage is on a leaseisoid. If this _liartgage is on a condominium
<br />unit, Borrawer shall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium project. and constituent documents.
<br />7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in
<br />this ~4ortgsge, or if any action or proceeding is commenced echich materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminen*_ don?ain, insoh envy, code enforcement, or arrangements or prueeed-
<br />ings involving a bankrupt or deceden<; then Lender at l.ender~s option. upon notice to Barrower, may make such
<br />appearances, disburse such auras and take such action as is necessary to protect Lender's interest, including, but
<br />not limited to, disbursement of reasattable 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 additional indebt-
<br />edness of Borrower secured be this \iortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from bender to Borrawer requesting payment thereof, and shall bear intar-
<br />est 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 />applicable law. >lothing contained in this paragraph r shall require Lender to incur any expense or do any act
<br />hereuader~
<br />13, taspaction. Lender may a?ake or cause to be made reawnabic entries upon and inspections of the Prop-
<br />erty, provided that Lender shall gire Borrower notice prior to any such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9. Coadenmatiaa. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking a5 the Progeny, or part thereof, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall 1>P 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; Brills _tlie_ excess, if any, paid to Borrower. In the event of a partial taking a! the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall be applied to the sums secured by this :Mortgage such propor-
<br />tion of the proceeds as is-equal to Lhat proportion which-the amount of file sums secured by this Alortgage imme-
<br />diately prior to the date of taking bears to the fair market value of -the Property immediately prior to the date of
<br />taking, with Llte balance of lhn pr~eeds paid to Bnrrnwer.
<br />If the Property is abandoned 3xy Borrower ar if after native by Lender to $nrrower that the condemnor offers
<br />to make an sward or settle aclaim-for damages; Borrower fails to respond to Lender within 30 days of the date
<br />of eueli notice; Lender is authorized {a cot2ect and apply the Iiraceeds at Lenders option either to restoration or
<br />repair of the Property or to the sums secured Iiy this Mortgage.
<br />Unless Lender-and Borrower otherwise-agree in writing, any such application of proceeds to principal shall
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