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If tinder paragraph 18 hereof the Propert}• is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prim• to the sale of the Property or it= acquisition by Fender, sin- funds
<br />,~ held by Lender at the time of application as :i t•redit against the sours .~ec•ured by this _lortgage.
<br />3. Application of Payments. T~niess applicalale Ia+; provides otherwise, all payments received :-y Lender
<br />under the Note and paragraphs 1 and 2 hereof shall he atpplied by Lender first in payment of amounts payable to
<br />~ L.ender by Borrower under paragraph 2 hereof, then to intiresC. payahk on the Rote and an Fnturc Advances, if
<br />~ any; and then to the principal of the \otc and to the principal of Future A~ivenc•c , if am•.
<br />~ d. Charges; Liens. Borrower shall pay all tales, assessments and other charges, fines and impositions attrib-
<br />utable to Ute Property which may attain a priority over this \lortgage, and ground rents, if any, at Lender's
<br />option in the manner provided raider paragraph ?hereof or by $orro+yer making payment, when due, directly to
<br />' the payee thereof. Borrower shall promptly 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 io Lender receipts evi-
<br />dencing such payments. Borrower shall prontpti}• discharge an}• lien which has priority over this \{ortgage; pro-
<br />r-ided, that Borrower steal! not be required to discharge an}• such lien so long as Borrower steal! agree in writing to
<br />fhepayment of 'the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />such lien bp, or defend enforcement. of welt lien art, legal procceciings +vitich operate to prevent the enforcement of
<br />the lien or forfeiture of rite Property or any part thereof.
<br />5. Aaaatd Insurance. Borrower shall keep the improvements now existing or heresiter erected on the Prop-
<br />ertc insured against loss by fire, hazards included within the term "extended coveragd'. ;uad 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 />- pat require that the artount of such coverage exceed that amount. of coverage required to pay the scans secured'by
<br />this Mortgage.
<br />The insurance carrier prow'=ding 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 shall be paid
<br />at Lender's option in rite manner provided under paragraph 2 hereof or by Borrower making }asyment, when dve,
<br />directly to the insurance carrier.
<br />In the evert any policy is not- renewed on or before ten days of itc, expiration, rite 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 Ihiortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />tinder the terms of this 1liortgage.
<br />Alt insurance policies and renewals thereof shall - in -~ °c2..°i-1~ ° l.~.tde. , ltd la:ll in^It~.. ntlard
<br />mortgage clause iu favor of and in form acceptable to I.ender~~Lentier shall have the right to hold the laolicies and
<br />renewals thereof, and Borrower shall promptl}• furnish to Lender all renewal notices and all receipt, of paid pre-
<br />miums. In the event of los,, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />map make proof of loss if pat made promptly by Borroner.
<br />Unless Lender and Borrower othernise agree in +yriting, insurance proceeds shall tae applied to restoration or
<br />repair of the Propeny damaged, provided such restoration or repair is econoaticalh• feasible and the security of
<br />this I4fortgage is not therebe impaired. li such restoration or repair is not ecanomicsily ietsible or if the security
<br />of this \lortgage would be impaired, the insurance proceeds sltali I,e applied ro the sum; secured by this \lortgage,
<br />with the excess, ii any, paid to Borrower_ ii rite Ytrol~eny is abandoned by Berro+ver or is: Borrower fails to respond
<br />W Lender within 30 drys after notice b.° Lender to $orrower tits*, tine insurance carrier otfer~ to settle a ct8im for
<br />insurance aenefits. Lender is suthorzed to collect and apply the insurance proceeds st Lender's option either to
<br />restoration or repair of the Property or to the sums secured h}• this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shalt
<br />not extend or postpone the due date of the ruonthty installments reterred to in paragraphs 2 and 3 hereof or change
<br />the amount of such installments.
<br />If under paragraph 2$ hereof tine Property is acquired by Lender, alt right, aide and interest of Borrower in
<br />and to am insurance Iwlicie; and in sn:l to the proceeds therc~oi rto the extent of tht .ants serurctii ray this \iort-
<br />gage lmtrted38tely plrar t0 such sale or acquisition! rruiting iron: damage to rite Propem- prier to the sale or
<br />stxluisitaon shall pass to Lender_
<br />&. Preservation rind A+fanlenance of Property: Leaseholds: Caadominiums. Borrower shall L-eep the Prop-
<br />erty in good repair and shall not permit or commit waste, irnpainnem, ar deteriorstiott of the Property and shall
<br />empty wit#t the provisions ai one lea=s, if this \tnngage is on a lessehoi.i. If tail \lortgage is on s condominium
<br />unit, 13orrowez .shall periorn; ail of Borrawtr ~ abligatiana under the declarstian of eottdaminiun: or rtasstrr deed,
<br />the by-talcs and zcgutations of the rondaminiuna projee*. and constituent doet;ments.
<br />7. Prole~oa ~ Lendei s Seearity. Ii $or;nner lolls to laeriorm the rovensnts and agreements contained in
<br />this \fortgsge, or if any action or proceeding i. canunenced which utaterixlly affects Lender's interest in the Prop-
<br />erty, including, :nut not lumted to. eminent doutaau. utsolyency. ro+fe enforcement. or arrangements or proceed-
<br />ings involving s battkr.rpi ar decedent, titer, Lender az Lender s option. tiptop Warier to Borrower, rosy make such
<br />appearances, disburse such auras and take local srtiota x_ t~ necessary to pn~tect Lender's interest, including, but
<br />ttaR #imited ta, disbuntement of reasonable attorney= iee~ and entrn upon the Property to make repairs. Any
<br />amwmta disburseal by Lender pursuant to this psragrsptt `, with interes=_ thereon, shalt become additional indebt-
<br />eda+~ of 13ozmwer assured by this \lortgage. finless Borrower anti Lender agree to oilier term;; of payment, such
<br />amounts shall be payable upon notice from Lender to Borr+oaer requesting payment thereof, and shall bear inter-
<br />est from the date of disbur~ment at the rate stated in the \ote unless payment of interest at such rate would t>z
<br />ct~attaty to applicable lea-, in whioh event such amounts shall bear interest st the }aighest rate permissible by
<br />ap'lx~ lass-. 1~hing eontaitted in dais rYaragraiah 7 shall tequrm Lender to incur any expense or do any act
<br />der.
<br />& Lender rnsv tusks or cau~ to Ix made reasonatalc entries upon and inspections of the Ptap-
<br />~y:l>ro't' that Lender €#aall give $armR-er ~*.irc prier to :sui° suds inspection staecifyirtg reasonalale cause
<br />theanf~ related to Lender's iateaest is the Property.
<br />?c. ~ Ttie proceeds sf any atcard er e18ir for darrtag~, dr2t't: ar cor.uential, in sar:neetion
<br />srNh nay ar athtr taking of rite Property, or part thereof, or for canveranee in lieu of condemna-
<br />t~au, ate y as~gned and wall 6e paid to Lender.
<br />In the event of s total taking of rite Property, the proceeds shall lac applied to the sums secured by this Mort-
<br />fie, Leith the excess, if any, paid to BMiOrcer. In the event o£ a partial taking of ih~ Property, unless Borrower
<br />i,eatitzx ,'! in trrriting, there stall be applied to tine sums secured by this \#artgage such gropor-
<br />tise of tlu pr»ortietls ~ ~ equa# to Ghat proportion ?Bloch rite amount of the sums secured by this Mortgage imme-
<br />diatedy 1 io the bate of tski~ bears to the fair rnsrket value of tlm Property immediately prior to the date of
<br />talt~, with rite 1talanee s{ tlxe proceeds paw to Borrower.
<br />I# t$~ ~ is eksaudaned by Bortomer ar 4f after notice be Lender tta Borrower that rite condemnor offers
<br />to taza~e an a>arwrd or settle s eiaatta for damages, iorrower fails to respond to Lender within 30 days of the date
<br />of stub a[#aee, Iaeader is atrthnriaed to collect Bad apply the proceeds at Lender's option either to restoration or
<br />t+efiair ~ ides Property or Lo the scans aecared by this \tartgsge.
<br />i~n}er Lens and Sorrvwva._oiltrnvise agree in writing, any such application of proceeds to principal shall
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