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<br />If under paragraph IS hereof the Property is said or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funrls
<br />held by Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law lu•ovides otherwise, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall be applied lay Lender first in payment of amaunts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the. Note and on Future Advances, if
<br />any, and ther. to the nrincipal of the Note and to the principal of Future Ad•.~ances, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and o"they charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority over ibis Mortgage, and gromtd rents, it any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or lay Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender all notices of amaunts due under this paragraph,
<br />.,~ and in the event Borrower shall wake payment directly, Borrew-cr shall promptly furnish to Lender receipts evi-
<br />s~ denting such payments. Borrower shall promptly discharge any lien which has priority over this _lortgage; pro-
<br />,~ vsded, that Borrower shall not be required to discharge am- such lien sa long as Borrower shall agree in writing to
<br />and the payment of the obligation securedrby such lien in a manner nccept.able to Lender, or shall in goad faith Contest
<br />such lien by, or defend enforcement o. such lien i,., legal proceedings which operate to prevent the enforcement of
<br />1 the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. $orrower shall keep the ir. provements now existing or 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 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 insurance shall be chosen by 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 or }>y 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 shaII be
<br />secured bg this IVfortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />A11 insurance policies and renewals thereof shall be in form acceptable to he.nder and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have tl:e right to bald the policies and
<br />renewals ihereaf, and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt noiice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />IInless Lender and Borrower atherwise agree in ;.•rit.ir;g, it ,~. ace proceeds shall he applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is ecanorniCally feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration ar repair is not econa;nicslly feasible or if the securi.,,
<br />of this Mortgage would b. impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower ar if Borrower fails to respond
<br />to Lender within 3Cr days after notice by Lender to $orrower 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 eiiher to
<br />resttrrstion or repair of the Property or to the sums secured by this _lortgage.
<br />tmless Lender and Borrower otherwise agree m wriiing, ant- suctr application of proceeds to principal shalt
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />Ii 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 ito the extent of the sums secured by this bfart-
<br />gage immediately prior to such sale or acquisition! resulting from damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. preservation and Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall noL permit or commit waste, impairment, or deterioraiion of the Property and shall
<br />eomgly with the provisions of any lease, it this \Iartgage is on a leasehold. If this \Qortgage is on a condominium
<br />unit, `3arrawer steal! perform all of Bermwer's obligations under the declaration of condominium oz master deed,
<br />the by-laws and regulations of the condominium project and Constituent documents.
<br />7. Protection of Lendei s Security. If Borrower isiis to perform the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but nat. limited ta, eminent domain, insoh•encr, 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 />appesrsaces, disburse suClr sums and take such action as is necessary to protect Lender's interest, including, but
<br />not 1smited to, disbursement of reasonable attorney's fees and entn• upor. +r,a Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interesi thereon, shall become additional indebt-
<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 requestittg payment thereof, and shall bear inter-
<br />est from the ds#e of disbursement at the rate stated in the Note unless payment of interest st such rate would be
<br />Contrary to sgplicsble law, in which event such amounts ehall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph ;shall require Lender to incur any expense oz do any act
<br />hereunder.
<br />8. Fnapaclion. Lender may make or cause io he made ressonatale entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Harrower notice prior to ant such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9. Caades~atien. 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 tlcereof, 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 proceeds shall be applied to the sums secured by this ~Iort-
<br />gage, with the_ex~ess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />sad LenBp.>s ottreza Tae' 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 that proportion which the amount of the sums secured by this Mortgage imme-
<br />~diatel_y prior to the date of felting bears o the fair market value of tlra Property. immediately prior to the date of
<br />taking, with: the balance of -the proc2Cds paid to Borrower.
<br />If the Property is abandone4, by $orrower or if after notice by Lendor to Borrower that the condemnor offers
<br />to make an award or settle a eisinr for ~tamages, Borrower fails to respond to Lender within 30 days of the date
<br />of such notice, Lendor is authorized to cotlett and apply the proceeds st Lender's option either to restoration or
<br />repair of the Property or Yo the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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