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If under paragraph i8 hereof the Propert}• is solri or tine Property is otherwise acquired by T.cuder. Lender
<br />shall apply, no later fhan innnediately 1?rim• to the sale of the Propert}• or its acquisition by Lender, any Funds
<br />held by Lender at the time of application as a credit agaioa the scans securc~l h}• this Sortgage.
<br />3. AppGeation of Payments. Unless applicable late Provides otherwise, all payments received by Lender
<br />under the 1Tote and paragraphs 1 and 2 hereof shall he applied by Lenclcr fn•st. in payment of amounts payable to
<br />Lender by Borrower under paragraph ~ hereof, then to interest payable on tho Notc and nn Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Future Advances, if any.
<br />4. i~harges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utabte to Ghe Property which may attain a priority over this \Sortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph) hereof or by Borrower making naynrent, when due, directly to
<br />the payee thereof. Borrower shah promptly furnish to Lender all notices of amounts dne under this paragraph,
<br />~ and in fire event Harrower shall make payment directly-, Fsorran•er slraa prompt-ly furnish fo Lender receipts evi-
<br />~, dencing such payments. Borrower shall promptly discharge anp lien which has priority over this \lortgage; pro-
<br />~., vided, that BorroFVer shall not be required to discharge env 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, ar shall in goad faith contest
<br />such lien by, ar defend enforcement. of such lien in, legal proceedings which operrfe to prevent the en#orcement of
<br />°"` the lien or forfeiture of the Property or any part hereof.
<br />"` 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included witi:in the term "extended coverage", and such other hazards as
<br />j Lender may require and in such amounts and for such periods as Lender 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 the insurance shall be chosen I}}- Borrower 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 ar 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, pap the premiums and such sum shsL became
<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 />Ala insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in fomr acceptable to "tender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prmmpt notice to the insurance carrier and Lender, and Lender
<br />may make proof of lass if not made promptly uy Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, Tim-ided such restoration or repair is cconomicail}- feasible and the security- of
<br />this Alartgage is not- thereby impaired. If such resteratimr or repair is net econcrnically feasible or if the security
<br />of this Mortgage would be impaired; fife insurance proceeds afro)) l,e applied is rtes sums secured by this ;4iartgage,
<br />witr. the excess, if any, p:.i.d to Borrower. ~f the Property is abandoned by Borrower or if Harrower fails to respond
<br />to Lender within 30 days after nonce by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to coLect and apply rtes 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 or pasipone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />I# under paragraph 18 hereof the Property is acquired by Lender. all righi, 'tide and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof Eto the extent of the sums secured by this ':l4ort-
<br />gage immediately- prior to such sale or acquisitioni resulting from damage to the Property prior to the sale or
<br />acquisition shall ga.~s to Lender.
<br />6. Preservation cad Maintenance o[ Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in goad repair and shall not permit or commit waste, Impairment, or deterioration of the Property and shalt
<br />comply with the provisions of any lease, ii this \lortgage is on a leasehold. If this tiiortgage is on a condominium
<br />unit, $orrower shall perform at1 of Borrower's obligation;; under the declaraiion of condominium or master deed,
<br />the b;-laws and regulations of the candatninitun l;mject and carstitt.ens documents.
<br />7. Protection of Lendei s Security. If Borrower fail to pert"orn the covenants and agreements contained in
<br />this Mortgage, or if any action ar 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 sack
<br />appearances; disburse such sums and take such action as is necessary to protect Leader`s interest, including, but
<br />not limited ter; disbursement of reasonable attarnev's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest therzvri, shalt become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shalt be payable upon notice from Lender to BorraYVer requesting payment thereof, and shall bear inter-
<br />est from the date of disbursement at the rate stated ire the Note unle~ payment of interest at such rate would be
<br />contrary to applicable law, in which event. such amounts steal[ bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph "shall mquirc Fender to incur any exlrense or do any set
<br />hereunder.
<br />8. I~aspeetioa. Lender may make or cause to he made reasonable entries upon and inepectians of the Prop-
<br />erty, provided that Lender shall give Borrower native Iuior to any such inspettian specifying reasonable cause
<br />therefor related to Lender's interest. in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or cansecuential, in connection
<br />with any condemnation or ether taking of the Yropery. or par thereof, or far eonvec-ance in lieu of condemn-
<br />lion, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall ire applied to the sums secured by this Mort-
<br />gage, with the excess, ii any, paid to Barraw-er. In the event of s partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall be applied to the sums secured by #his )lortgage such propor-
<br />tion of -the pmeeeds as is equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />diately grior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking, with tare balance _of the proceeds paid to Borrower.
<br />If-the Property is abandoned by Narrower er if after notice by Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim far damages, Borrower fails to respond to Lender within 30 days of the date
<br />of such notice; Lendei is authorized to collect and -apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to-the sums secured by this \[ortgage.
<br />Unless Lende•-and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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