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If under paragraph IS hereof the Properf~y is sold a~ the 1'ropert}• is othervise acquired by Leader, Lender
<br />shall apply, no later than immediately prior t.o titc sale of the Property or its acquisition by Lender, nny Funds
<br />{a"~~ held by Lender at. the time of application as a credit agaimt the sums secured by this Mortgage.
<br />Q ~ 3. Applicafian of Payments. Unless applicable I:ns provides othencisc, all payments received by Lender
<br />~~ ender the Dote and paragraphs ]and 2 hereof shall he applied by Lender rust. in payruent of amounts payable to
<br />O Lender by Burrower under paragraph 2 hereof, then to interest payable on the Note arn.l on Future Advances, if
<br />-~ any, and then to the principal of the mote and to the principal of Future Advances, it' any.
<br />~ ~f 4. Charges; Liens. Borrower shall lra}• ai! taxes, assessments and other charges, fines and impositions attrib-
<br />' ! utable ip the Property which may attain a priority aver fhis 3ortgage, and ground rents, if any, at Lender's
<br />n-~~ option in the manner provided under paragral?la 2 hereof or lay Borrower making liayment, when due, directly to
<br />the payee thereof. Borrower shall promptly flrrnisir to bender all notices of amounts due tinder this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall pronalatl}• iw•nish to bender receipts evi-
<br />CI/ dencing such payments. Borrower shall promptly discharge any Gen which has priority over this \~tortgage; pro-
<br />vided, that Borrower shat! not be required to diseitarge any such lien so tong as Borrower shall spree in writing to
<br />G the payment of the obligation secured by such lien irr a manner aerept.able to Leader, or shall in good faith contest
<br />:A= such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of
<br />.~ the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower alto!! keep the iutl;rovements new existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included witi,in the term "ext.ended 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 />t 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 shah 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 tfae 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 shat' become
<br />immediately due and payable with interest. at fhe 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 alto!! be in form acceptabic to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall hate 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 giro prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, l,rnvided such restoration or r ~:>ir is ecano.ni:~a!1}• teasib!e and the s catty of
<br />this ;blor~gage is not thereby impaired. If such ,-estoratiar. cr repair is not economically feasible or if the security
<br />of this \tartgage would be impaired, the insurance proceeds snail l.c applied to the sums secured by this ;•iartgage,
<br />with the Excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if BO1TOwer fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower That the insu°anee carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's optior. either to
<br />restoration or repair of the Property or to the scans secured 6}- this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing. an}- such 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 />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 ita the extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisitions resulting from damage to t}te Property prior io the sale or
<br />acquisition shall pass io Lender.
<br />S. Preservation and Maintenance of Property; Leaseholds; Coadominiun>.s. Borrower shall keep the Prop-
<br />erty in goad repair and shall not permit or commit waste, irnpairttent, or deterioration of the Property and shall
<br />comply with the provisions of an}• lease, if this Mortgage is on s leasehold. 1f this \Sartgage is on s condominium
<br />unit, 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 }aroiect anti cons[ituent documents.
<br />7. Protection of Lender's Security. If Borrower tails to perform the covenants grad agreements contained in
<br />this liortgage, or if any action or proceeding is commenced which materially affect. Lender's interest in the Prop-
<br />erty; including, but not limited to, eminent domain. insolvency, code cnforcenaent, 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 necetian• to protect Lender's interest, including, but
<br />not 3imited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph r, avith interest tnereon, shall become additional indebt-
<br />edness of Borrower secured by this 3lortgage. Unless Borrower and Leader agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borraw•er requesting payment thereof, and shall bear inter-
<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 taw. Nothing contained in this paragraph "shall require Lender to incur any expense or do any act
<br />hereunder.
<br />6. Ia~pectiaa. Lender may make or cause to he made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shalt glee Borrower notice prior to an}~ such inspection specifying reasonable cause
<br />therefor related to Lender`s interest in the Property.
<br />9. Caademaatioa. 'I'he proceeds of any award or claim for darnsges; direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemns-
<br />tion, s-herab~,Iss~igned and shall be paid to Lender.
<br />In the event-of~ total taking of fhe Property, the proceeds shat( be applied to the sums secured by this Mort-
<br />- gage,lxith the excess, if any, paid to Borrower. In the event of a partial taking of the Properly, unless Borrower
<br />and Leaadoi• otherwise agree in writing, there shalt 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 thiE 1lortgage imme-
<br />- diateIy prior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking, with•tlre,balanee of the proceeds-paid to $orrower.
<br />If floe Prtigerty is abandoned lay Borrower or if after notice by Lender to Borrower that the condemnor otters
<br />tp make an award or settle a claim far damages, Harrower fails to respond to Lender within 30 days of the date
<br />of such notice; Lender is authorized to collect and aptly the proceeds at Lender's option eiilrer to restoration or
<br />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
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