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<br />If under paragraph 18 hereof the Yroperty i= sold or the Property is otherwise acquired Irv Tender. Lender
<br />shall apply, no later than immediately prior to the sale of the Y:operty or it.q acquisition by Lender. nny Funds
<br />held 6c Lender at the time of apltiication as a credit again t the sums ..ecured by this \Iortgagc.
<br />3. Application of Payments. Unless applicable lan provides otherwise, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall he applied by Lender first in payment of amounts payable to
<br />Lender by $orrower under paragraph 2 hereof, then to interesC payable on the Note and an Future advances, if
<br />any, and then to the principal of the Aotc and to khe principal of Future .4de•ances, if any.
<br />9. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />~ utable to the Property which may attain a priority over this Mortgage, 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 shah promptly furnish to Lend,:r al} notices of amounts due under this paragraph,
<br />a°i and in the event Borrower shall make payment directly, Barrower shall promptly furnish to Lender receipts evi-
<br />...'r dancing such }tayments, Borrower shall promptly discharge any lien which has priority ever this Mortgage; pro-
<br />.;s vided, that Borrower shall not be required to discharge any sucl} lien sc long as $orrower chalk agree in writing to
<br />the payment of the obligation secured by such lien in a man_ter acre},able to Lerdcr, or coal} in good fsith contest
<br />~ such lien hy, or defend enforcement of such Ilea ur, legal proceedings n•hieh operate to prevent. the enforcement of
<br />>` the lien or forfeiture of the Property m• any part thereof.
<br />5. Hazard Insurance. Borrower shall keep ih ~ improvements non existing ar hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term °extended coverage", and such other hazards as
<br />Lender :nay require and in such amounts and for such periods ar Lender may require; provided, that bender 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 by Borrower subject to approver by Lender:
<br />provided, that such approval shall not be wrreasonably withheld. all premiums on insurance policies shall be paid
<br />at Lender's option iu the manner provided under paragraph 2 hereof or by Borrower making pap•ment, 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 />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 steal! he in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable ro Lender. Lender .hall have the right to IroLd the policies and
<br />renewals thereof, and Borrower shalt promptly furnish to Lender ail renewal notices and all receipts of paid prz-
<br />miunrs. Irr the event of Loss, Borrawer she}} give prompt notir_e to the insurance carrier and Lender, and Lender
<br />may make proof o€ loss if not made promptly by Borrower.
<br />Unless Lender and Borrowe° othencise agree in writing, insurance proceeds steal} be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is eccnamieaily feasible and the security of
<br />this vfortgage is not thereby impaired. If such restoration or repair is net ccenomical!y feasible or if the seezi=coy
<br />of this `:fortgage wou:M be impaired, the insurance proceeds sirali l,c applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Yroperty is ahan<loned by Barrower or if Borrower farts to respond
<br />ttt Lender within 30 drys after notice by Lender to Borrower *_}rat the insurance carrier offers to sett}e s claim for
<br />insurance benefits, Lender is authorized io collect and appi}- the insurance praceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured br this 1ortgage.
<br />Iinl~s 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 installments referred to in paragraphs 1 and 3 hereof or change
<br />tIae amotmt of such installments.
<br />If under paragraph I$ hereof the Property is acquired by Lender, alI right, title and interest of Borrower in
<br />and to anp insurance policies and in and to the proceeds thereof tto the extent of the suers secured by this ~Iort-
<br />gag? immediately prior to such sate o_* acquisition ~ resuitint from daruage to lire Property prior tB the sale or
<br />acquisition shall pass to Lender.
<br />8. Fraservation and Maintenance of Property; Leaseholds; Condominiums. Borrower sh~Ll 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, ii this ?Iortgage is on a leasehold. If this Mortgage is on a condominium
<br />ui;it, 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 project and constituent documents.
<br />7. Protection of Lender's Seeusity. It' Borrower fair to perform the covenants and agreements contained in
<br />This \3ortgage, or if any action or proceeding is commenced :vhiclt materially affects Lender's interest in the Prop-
<br />erty, including, but not Limited to, etninent domain, insoh•ency, code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender`s option, upon notice to Barrower, may make such
<br />appearances, disburse such sums and lake such action as is necessary to protect Lender's interest, including, bat
<br />net limited to, disbursement of reasonable attorney's fees and entry- u}~.a the Property to make repaita. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest. thereon, shall become additional indebt-
<br />mess of Borrower secured by this Mortgage. Unless Borrower and Lender agree to outer Terms of payment, such
<br />amounts shall 6e payable upon notice from Lender to Borrower requesting payment thereof; and shall bear inter-
<br />est from the date of disbursement at the rate stated ir, 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. Nothing contained in this paragraph 7 shall require Lender to incur any expense ar do any set
<br />hereunder.
<br />8. Inspection Lender may make ar cause to he made reasonable entries upon end inspections of the Prop-
<br />erty, provided that Lender shall give $orrower notice prior to any such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9> Corads~eatian. The proceeds of any award or claim for dsmsges, direct or consequentiaP, in connection
<br />with any condemnation or other taking of the Property. or part thereof. or far conveyance in lieu of condemna-
<br />tion; are hereby assigned and shall }>e paid to Lender.
<br />In the event of a torsi taking of the Property, the proceeds she!} he 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 Borrawer
<br />anti bender otherwise agree in writing, shale shall be applied to-the sums secured by this 1ortgage such propor-
<br />tion of theproceeds as is equal to-that proportion which the amount of the sums secured by this Mortgage imme-
<br />diately griurto the date of taktng-bears to-the fair market value of the Prapertc immediately prior to the- date of
<br />taking, with the balance of the ~^oeeeds 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 or settle a claim for damages, Borrower fails to respond to Lender within 3Q days of the date
<br />of srieh notice, Lender is authorized to collect and-apply-the praceeds at Lender's option either to restoration or
<br />repair of the Property or to the sums secured by this _llcrrtgage.
<br />tTnLess Lender and Borrower otherwise agree in writing, any such applioatian of proceeds to principal shall
<br />,;
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