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<br />If under paragraph 18 hereof the Property is sold or the Yroperty is otherwise acquired by Lender, Lender
<br />shall apply, no lator than immediately- prior to the sale of the Pt•opcrt-y or its acquisition by Lender, any P`unds
<br />held by Lender at the time of application as a credit against the sums >ecured h}• this :~lortgagc.
<br />3. Application of Payanents. Unless applicabh: law provides otherwi<e, all paym+snts received by Lender
<br />under the Note and paragraphs 1 and 2 hereof slsall be applied by Lender first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the ?Vote and on Future Advances, if
<br />any, and then to the principal of the Tote and to the principal crf future Advances, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessmen+.s 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 Borro~s-er making payment, when date, direstIy to
<br />the payee thereof. Borrower shall I>trompth~ furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />~ dencing such I>ayntents. Borrower shall promptly discharge any lien which has priority over this ~Yorigage; 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 a manner acceptable to Lender, or shall in good faith contest
<br />rq such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent. the enforcement of
<br />•~ the lien ot-forfeiture of the Yroperty or any part thereof.
<br />~ 5. fiazazd Iasuranee. Borroticer shah keep the improvements 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 />~ Leader may require and in such amounts and for such periods as Lender may- require: provided, that Lender shall
<br />~ not, require that the amoun± of such coverage exceed t!tat amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen b}• Borrower subject to approval by Lender;
<br />provided, that. such approval shall not be unreasonably withheld. All premiums on insurance policies shalt be paid
<br />at Lender's option in the manner provided under paragraph ?hereof or by Borrower making uayment, when due,
<br />directly to the insurance carrier.
<br />In the event any palicy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its interest, may precura 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 Iafortgage. 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 be in form acceptable 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 renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice io the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by $orrower.
<br />Unless Lender and Borrower o`lterwise agree in cvritina, insurance proceeds shat be applied to restoration cr
<br />repair of the Property damaged, provided sucl: restoration or repair is econotnicalty feasible and the accurst-- ~`
<br />this Mortgage is not thereby impaired. If such restorttimt or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the-insurance proceeds shall be applied to the sutras secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If 'the Yroperty is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within 8~ days after notice by Lender to Harrower iltat the insurance carrier offers to settle a claim for
<br />insurance benefits; Lender is authorized to collect and apple the insurance proceeds at Lender`s option either to
<br />restoration or repair of the Property or to the sums secured by this \iortgage.
<br />Unless 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 i and 2 hereof or change
<br />the amotmt of such installments.
<br />If under paragraph 18 hereoT the Yroperty 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 lto the extent of the stuns secured Hy this Mort-
<br />gage immediately prior to such sale or acquisitions 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 not permit or commit. waste, impairment, or deterioration of the Property and shall
<br />comply with the provisions of any lease, if this lforigage is on s leasehold. If tF:is Mortgage is on a condominium
<br />unit, Borrower shall perform alt 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 Security. If Borrower fails to perform the covenants and agreements contained in
<br />this tilartgage, or if any action or proceeding is commenced which rnaterially 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 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 of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender putsuan6 to this aaragraph 7, with interest thereon, shall become additional indebtr
<br />edness of Borrower secured by this Mortgage. Lnless Borrower and Lender agree to other ±erms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />estfrom the date of disbursement at the rate stated in the \ote 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 permi4sible by
<br />applicable law. Nothing contained in this paragraph 'r shall require Lender to incur any expense or do any set
<br />hereunder.
<br />8. Inspection. 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 pl'IOi' l0 any such inspection specifying rea?onable cause
<br />therefor related to Lender's interest in the Property.
<br />9: Coademaation. The proceeds of any award or claim for damages, direct or consequentisi, in conneetion
<br />' with any condemnation ar other taking of the Yroperty, or part thereof, or for conveyance in lieu of condemns-
<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 6e ap}~l'ted to tha sums secured by this Mort-
<br />gage, wit,H C1t~F emcees, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />-and Lender otherwise agree in writing, there sltail be aplilieci to the soma secured by this Mortgage such propor-
<br />ti4n n# the proceeds as is equal to that proportion which the amount of-the sums secured by this Mortgage imme-
<br />diately Iirior to the date of taking. bears to the fair market value bf-the Yroperty immediately prior to the. date of
<br />taking, wtth the balanee at the proceeds paid .to Borrower.
<br />I# the Property is-abandarrfxl hp Borrower or 'tf after notice by Lender to Borrower -that the condemnor offers
<br />to make an award or settle a claitil_foi damages, Borrower fs<ils to respond to Lender within 30 days of the date
<br />of-such notice; Lender is authorized t.o collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the saws seeuxed: by tliis'liortgsge.
<br />Lrnless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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