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If under paragraph 18 hereof the Property is sold m' 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.:my Funds
<br />held by bender at the time of application as a credit against the sums ~ecm•cd b}• this 1lortgago.
<br />3. Appliealion o! Payments. Unless applicable law provides otherwise, ell payments receiee~~ by Lender
<br />under 'the Note and paragraphs 1 and 2 hereoi shall he applied by Leralar first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the Vote and on Fut.urc Advances, if
<br />any, and then to the principal of the IVrote snd to the principal of Future Ad~•anccs, if any.
<br />~, Charges; 7aens, Borrower shall usy all taxes, xssesstnents and other cd:arges, fines snd impositions attrib-
<br />Q utabie to the Property which may attain a Iriority over this \iortgage. and ground rents, if any, at Lender's
<br />n.2 'option in the manner provided under paragraph 2 hereof or by Bm•rower making payment, when due, directly to
<br />~ the payee thereof. Borrower shall promptly furnish to Tinder all t.otires of amounts due under this paragraph,
<br />*°! and in the event Borrower shall make paytz,ent directly, Borrower shall promptly furnish to Fender receipts evi-
<br />.~ denting such payments. Borrower shall protnptl}• discharge any lien ir•hirh has priority over this 1"Iortgage; pro-
<br />vided, that Borrower shall not b? te.,,~ired to discharge any such lien so tong a` Borrower shall agree in writing to
<br />the payment of the obligation secured by su'h Lien in :, manner acceptable to Lender, or shstl in good faith contest
<br />(y1 sorb lien by, or defend enforcement of such lien in, legal proceedings a"hich operate to prevent the enforcement of
<br />n the lien or forfeiture of the Property or ant' Pari thereof.
<br />5. Hazard tasurartcs. Borrower shall keep UIe 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 />Lender may require and in such amounts and for such periods as Lender may regain; prat°ided, that Lender shall
<br />not require that the amount of such coverage exceed than Rmount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />-The instrance 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 by Borrower making payment, when due,
<br />dir~tly to the insurance carrier.
<br />t.n the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its interest, may procure iTTSUrance on tits 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 polities and renewals Thereof shall be in form acceptable to Lender and shall include s standard
<br />Tnoztgsge clause in favor of snd in form acceptable to Lender. Lender shall have the right to hold the policies aTld
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. Tn the event of toss, Borrower shsIl give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof o£ !oss ii not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in a-rit.ing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is econontiealiy feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br />of this _lortgage would be impaired. the insurance proceeds shall be applied to the souls secured by this 11lortgage,
<br />wit#I tllf exte55, If aIIY, p81d t0 Borrower. II the P!'Opertv 1S 8bandonerl 1?c BOrrOwfr OS II Borrower Tfl11S to respond
<br />to Lender within 30 days after notice by Lender io Borrower that the itsurance carrier offers to settle a claim for
<br />iastrrano~t benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />T+eaWsatioa or repair of the Property or to the sums securcj by this Mortgage.
<br />Unless Lender and Borrower othel•tvise agree in writing, any such application of proceeds to principal shall
<br />aot eztead or postpone the due date of the monthly installments referred to in paragraphs I and `~ hereof or change
<br />C13e atnoamt of such installments.
<br />iCf tinder Paragraph 1$ hereof the Property is acgtured by Lender, all right, title and interest of Borrower in
<br />aml to any instnance policies and in aad to the proceeds thetroi +ta *.he extent of the sums secured by this Mort-
<br />gaAe immediately prior to such sale or acquisition) reautting irosn damage to the Property print to the sale or
<br />aesluisititra shall pass to Lender.
<br />6. ~ ~ I a! Propatts: ~: Condominiums. Borrower shall keep the Plrop-
<br />erty iTT gaud repair and shall noL permit or commit aru~e. srx:,a.~;c„t. or „eterioratioa of the Property and shall
<br />comply with the provisions of any Tease, if this yfortgagx= ze, c: a ~a;ehaid. If this lortgage is on a condominium
<br />unit, Borrower shall perfaTm all of Borrower a abiigstiw *:. .c.._,. -.~e dccla:•ation of condominium or master deed,
<br />Ure bS'-laws and regulation: of the condominium ;~r+e_r. ^ ... ,~wvtTtuent documents.
<br />7. 8tol~mn of Leuder'a Security. If Borr•ea-rr ;3 `- ::_. ;trtc:rtn the revenants snd agreements contained in
<br />this Mortgagge, or if any action or proceeding is con.r.,~r.~.: a t~zr.-:: ct:,sterislly af9•ects Lender's interest in the Prop-
<br />eaty, irsrlatiing, but net Fished io, eminent donTain. fn=c.xNnz;c, cwt- enforcement, or arrangements or proceed-
<br />- it~gr invmviag a bankrupt ar decedent, then Leader at Ixrtdcr's oiation. upon notice to Borrower, may make such
<br />app~rautxs, disburse such sums and take such action ss is ncrec€aan• to protect Lender's interest, including, but
<br />net limited to, disburseseat of rea~nable attarney•s ter:- scut entn° upox: the Property to make repairs. Any
<br />a dislmrxd by Lender puasuant to this paragraph e'_ with =_ntcrssx t~ret+n, shalt t;ccome additional indebt:
<br />ednaes of Borrower secured by this \iortgage. Unless Borrower and Lender agree to other terms of paymeat, such
<br />amauata shall be payable tlpoa notice £rom Leader to Borrower requesting payment thereof, sad shall bear inter-
<br />asa: #rom tau dart of d~bura`e.^"Fent at t2x rate orated in the \otx unless payment of interest at such sate would be
<br />tont:ary to applicable taw, in which scent such amounts shalt bear interest at the highest rate permi~ihle by
<br />taw. Alrrthing ZontainecF in thi-a paragraph ?shall require Lender io incur any esperse or do any act
<br />t,' Ioetrsc6eq. Lender may make or cause to he made rrasoaable entries upon and inspertioas of the Prop-
<br />erty, pmvidetl tltst header T±hsll give $orroaer notice pT•gor to am• such inspeet.ion specifying trasoasblr cause
<br />tLee+~,aa• related to LendeFs interest, im flu Pmi+erty.
<br />$'CgndemaaRlen. The proceeds of say award or claim for damages, di_*ect or consequential, is connataon
<br />t~ arty ~ or other taking of the Property. or part thereof. or for conveyance in lieu of condemna-
<br />tstm, ass assigned and stroll be psiTi io Lerder.
<br />Ia everst ~ a #etal t-eking ~f tree. Ply, the pruca~ls rdtall l~ applied to the sums secures by this 13ort-
<br />pa t~i#h tie z if arty, paid to Ba!n:ower. In the event of a partial taking of the Property, unless Borrower
<br />~I.e~k+'e is wtitingR t2tere shall tin applied to the sums secured by this 1ortgage such propor-
<br />t1Qq ~tl1e ~ .Sa ~is agtml to #aat m+r~xistiaa tahicb tfie amount ~of the sums settu•~ by ibis Mortgage imTne-
<br />di+~dy prior tai t~ date erf' takes bears to the fair rrrarket value of the Property immediately prior to the date of
<br />teJtiwogy wibtritltis baltr~e of the .praoseds paid to Borroavrer.
<br />I# tilts ~ is itbs~#orsed by Burro~rer aa~ if after nmiee by Lender to Borrower that the condemnor offers
<br />to aaeke rte e:ienrd oo~"settle a claim tar damages, Borrower fails to respond to Lender within 30 days of the date
<br />' - -_
<br />ttfatrtaioe; Linder u aid t+> cr-lFect arm apply the proceeds at Lender's option either to restoration ar
<br />repair of the Property or to'the aroma scoured bq this ?+lortgage.
<br />IIaleas Lender and $armprer otherwise agree in writing, any such application of proceeds to principal shall
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