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If under paragraph 18 hereof the Property is sold m• the Property is otherwise acquired by bender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any Funds
<br />held by Lender at the time of application as a credit against the sums secured by this 1lorigagc.
<br />3. Application of Payments. Unless applicable Isar provides otherwise, all payments received by Lender
<br />under the Note and paragraphs 2 and 2 hereo[ shall he sppliect by Lender first in payment of amount? oayabie to
<br />Lendet by Borrower under paragraph 2 hereof, thou to intet•cst payable on the Note and on ruturc Advances, if
<br />any, and then to the principal of the Noie and to the principal of suture Advances, if any.
<br />4. Chargesr Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property avhich may attain a priority over this Mortgage, and ground rents, ii any, at Lender's
<br />option in the manner provided under paragraph ?hereof or by Borrower making payment, when due, directly to
<br />~ the payer hereof. Borrower shall promptly furnish to bender all notices of amounts due tinder this paragraph,
<br />y~:~ and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />~ dencing such payments. Borrower shall promptly discharge any lien awhich has priority over this Mortgage; pro-
<br />vided, that Borrower shall not be 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 n manner acceptable to Lender, or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal prueeedings witieh operate to prevent the enforcement of
<br />the lien or forfeiture of the Property or any ixart thereof.
<br />~I 5. Hazard Insurance. Borrower shall keep the iurproa•enxents noav existing or hereafter erected on the Prop-
<br />s, erty insured against lose 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 amount of such coverage exceed that amount of coverage required to pay the sums secured•by
<br />this Mortgage.
<br />The insurance carrier providing the insurauce shall be chosen by Borroawer subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 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 protect
<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 />secure 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 shall bean form acceptab]e to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all reneaval notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt nonce to the insurance carrier and Lender, and Lender
<br />may make proof of toss if not made promptly by Borroawer.
<br />Unless Lender and Born.her otherwise agree in writing, irsurance proceeds shall be appLed to restoration or
<br />repair of the Property damaged, provided such resiaration er repair is economically feasible and the security of
<br />his Mortgage is not thereby impaired. If such restoration or repair is not econvrniaali_y feasible or if the a~~urity
<br />of this Mortgage would be impaired, the insurance proceeds shall 6e applied to the stuns secured by this Aortgage,
<br />with the excess, if any, paid to Borrower.-If the Property is abandoned by Borrower or if Borroawer 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 auhorized 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 liorigage.
<br />Unless Lender and Borrower otherwise agree in avriting, any such application of proceeds to principal shall
<br />not extend or postpone the dos date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof (to the extent of the sums secured by this hfori-
<br />gage immediately prior to such sale or acquisitior.l resulting from damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preaervafion and i+giaiafen~ee of Property; Leaseholds; Condominiums. Borroawer shall keep the Prop-
<br />erty in good repair and shall not permit or comnxit waste, impairment, or deterioratio.r of the Property and shall
<br />comply with the provisions of any lease, if this Mortgage is on a leasehold. If this 114ortgage is on a condominium
<br />unit, Bon~~•er shall perfornx all of Borrower's obligations under the declaraiian of condominium or master deed,
<br />the by-laws and regulations of the condominium project. and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is corrunenced aa•hich materiaih~ affects Lender's interest in the Prop-
<br />erty, inc}uding, but not limited to, eminent domain, insoirencc. 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 sums and take such action as is necessary to protect. Lender's interest, including, but
<br />not limited to; disbursement o£ reasonable attorney's tees and eriry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant. to this paragraph i, with interest. thereon, shall become additional indebtc
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment; such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est from the date of disbursement at the rate staled 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. \TOthing contained in this paragraph 7 shall require Lender to incur any expense or do any act
<br />herearnder.
<br />fi. Iaspeetion. Lender may make or cause to he made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice prior to anc such inspection specifying reasonable cause
<br />herefor related to Lender's interest in the Property.
<br />9. Condernaation. 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 />tion, are hereby assigned and shall be paid to Lender.
<br />in the event of a total taking of the Property, the lroceeds shall be applied to the sums secured by this 1~fort-
<br />gage, wills the excess; if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender oheravise agree in writing: there shalt be applied to the sums secured by this ~4ortgage such propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />• diately prior to the data of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking; with the balance df the proceeds paid to Borrower.
<br />I.f the Property is abandoned liy Borrower-ar if after notice by Lender to Borrower That the condemnor offers
<br />to make nn award of sattl$ a claim for damages, Borrower fails to respond to Lender within 30 days of the date
<br />of such notice, Lender is authorizeii to Dolled-and-apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or th the sutras secured by this\lortgage.
<br />Unless Lender and Borrower otherwise agree irx writing, any such application of proceeds- to principal shall
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