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If tinder paragraph 18 hereof the Yropcrty- is sold or the Yropcrty is otherwise acquired hp Lender. Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds
<br />held by Lender at the time of application as a credit ag:tin;a the sums secured by this Mortgag~•.
<br />r' 3. Application of Payments. Unless applicable lain provides nther+cisc, all paymmtts received by Lender
<br />''"t under the Nofe and paragraphs ]and 2 hereof shall Le a,tplicd ity Lender first in payment of amounts , ayable to
<br />~' Lender by Borrower under paragraph 2 hereof, then to itterest payable oft the A'otc and on Futurr. Advances, if
<br />*°°I any, and then to the principal of the itiTatC and to the, principal of t`uture Adsanecs, if nnv.
<br />4. Charges; Liens. Borrower shall pay nll taxes, assessments and other charges, fines and impositions attrib-
<br />s 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 pro. ided under paragraph 2 hereof m• by Borro++•er 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 to Lender receipts evi-
<br />dencing such payments. Borrower shall protupily discharge any lien which has priority over this Mortgage; 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 ;t manner acceptable to Lender, or shall in good faith contest
<br />such lien by, or defend en#orcement of such lien in, legal proceedings +vhich operate to present the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard fnsur®ee. Borrower shall keep k?tc 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 require: provided, that Lender shall
<br />trot 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 approve! by Lander;
<br />provided, that such approval shall not b2 unreasonably $•ithheld. All premiums on insurance policies shall ba paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />Itt 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 sat 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 />Ail insurance policies and renewals thereof shall be in Iona aceeotable to L+~uder and sl>atl i ,elude a, standard
<br />mortgage clause in favor of and in form acceptable to bender. bender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish io Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrotser shall give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss ii not made promptly by Borrower.
<br />Unless Lender and Borrower. otherwise agree in writing, insurance proceeds shall 6e applied to restoration or
<br />repair of the Property damaged, provided such restoration m• repair is economically teasible and the security of
<br />this ?viartgsge is rot thereby impaired. Ii such restoration or repair is not economically feasible or if the security
<br />of this liortgage would be impaired, the insurance proceeds shall L•e applied io the sums secured by ibis Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fails to tespand
<br />to Lender within 30 days after notice by Lender to Borrower 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 either to
<br />testarativn or repair of the Property or to the sums secured by this Mortgage.
<br />13nless Lender end Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due date of the men#itly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If urtder paragraph 18 hereof the Yropcrty is acquired by Lender, all right, title end interest of Borrower in
<br />sod to app insurance policies and in and to the proceeds thereof t to the extent of the sums secured by this liort-
<br />gage immediately prior to such sale or scquisitioni resulting from damage to the Property prior to the sale or
<br />acquisition shall pass io Lender.
<br />6 Preservation ana Mrdate'aattce of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit or commit waste, impsirn.ent, or deterioration of the Property and shall
<br />comply with the ptncisions o2 any lease, if this Mortgage is on s leasehold. If this liortgage is on a condominium
<br />unit, Borrower shall perform all of Borro+er; obligation; under the declaration of condominium or master deed,
<br />the by-laws and regulstioas of the condominium project and constituent documents.
<br />T. Protectimt of Lender's Security. If Borrower fail; to perform the cosenants and agreements contained in
<br />ibis liortgage, or if anq action or proceeding is commenced which materially affects Lender's interest In the Prop-
<br />erty, including, but not limited to, erninem domain. inwh•ency, cods: enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decadent, then Lender ai Lender's option, upon notice to Borrower, rosy make such
<br />appearances, disburse such sums and take such action as is necessan• to protect Lender's interest, including, but
<br />tint limited to, disbursement of teasoasble attorney's fans and antn• upon rite Property to make repairs. Any
<br />amartnts disbutsaa by Lender pursuant to this paragraph 7, with interest thereon. shall become additional indebt-
<br />edness of Borrower secured by this liortgage. Unless $orrower and lxader agree to other tet•trrs of payment, such
<br />amounts shall be payable upon notate from Lender to Borrower requesting payment thereof. and shall bear inter-
<br />est farm the date of disbut~meat at the rate stated in the \ote unless payment of interest at such rate would be
<br />ottntaary to applicable law, ir, which event such amounts shall bear interest at the highest rate permissible by
<br />applieab~ law. Nothing contained in this naragraplr 'shall inquire Lender to incur any expense or do any set
<br />hereunder.
<br />8. Smpaatfom. Lender may make or cause to l,e made rea_wnable entrie. upon and inspections of the Prop-
<br />erty provided that Lender shall give Borrower notice prior to env sorb in'rpection specifying t•easonable cause
<br />ther+dfor telatea to Lender's interest in the Pmpert}•.
<br />~ ~- 'The proceeas of any award or elairn foe damages, direct or consequential, in cottneetian
<br />with any autdemnatiort or other taking of the Property. or part thereof, or for conveyance in lieu of canaemna-
<br />thsn, aft hereby assigned and shall be paid w Lender.
<br />In the evtstpt~a totlai,taking of the Property, fhe proceeds shall he applied to the sums secured by this liort-
<br />gage, with the excel; i# sa3, paid to Borrower. In the event of s partial taking of the Property, unless Borrower
<br />aad.I+atseier ~ agree in writing, there shall be applied to the stuns secured by this liortgage such propor-
<br />tiort of the proeeeda as is-equal to that proportion which the amount of the sums secured by this 3iortgsge imme-
<br />distt-!y ptam• to the taste of faking bears to the fair market value of the Property immediately prior to the date of
<br />tikirtg, t-ithtlrebalanse of the P paid to Borrower.
<br />If Efle Ptspesty iaabarnioned by Harrower or if after notice by Lender to Borrower that the condemnor offers
<br />tv ttaRke an awsrtl~or ~tLle a skim far damages, Borrower fails to respond to Lender within 30 days of the date
<br />of si=ch tt#rtaCe; I~t3dar ie suthorued to callaet sad apply the proceeds at Lender's option either to restoration or
<br />repair of tbe Property or to trite sums secured by this ]lartgage.
<br />Unla~as Lender end Borrower otherwise agree in writing, any such application of proceeds t.o principal shall
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