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If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br />shalt apply, no later than immediately prior to the Sala of the Property or its acquisition by Lender any Funds
<br />held by Lender at. the time of application as a credit against the sums secured he this \dortgage.
<br />~ 9. App&eation of Payments. L7nless applicable lau- provides otherwise, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall be applied !>}- Lender first in pay°tuent of amounts payable to
<br />~., Lender by Borrocver under paragraph 2 hereof, thou to interest p;tyablr on the No+c ant on Future Advances, if
<br />,~ any, and then to the principal of the Note and to the principal oi' Future Advances, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes; assessments anti other charges, fines and impositions attrih-
<br />_ utable to the Property which may attain a priority over this Mortgage, and ground rents, it any, at Lender`s
<br />option in the manner provided under paragraph Z hereof or by Borrocver 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 />tT and in the event Borrower shall make payment. directly, Borrower shall promptly furnish to Lender receipts evi-
<br />r dencing such payments. Borrower shall promptly 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 a manner acceptable to Lender, or shall in good faith contest
<br />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 />S, Hazard Iasuranee. Borrower shall keep the in:procements nose 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 />not require that the amount of such coverage exceed il,at amount of coverage required to pay the sums secured'by
<br />ibis Mortgage.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject. to approval by Lender:
<br />provided, that. such approval shall not be unreasonable withheld. Ali premiums on insurance policies shall be paid
<br />st Lender's option in the manner provided under paragraph '3 hereot or by Borrower making payment, when due,
<br />directly to the insttzance carrier_
<br />In the event any policy is not renewed on or before tan days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, par Lhe premiums and such stun shall become
<br />immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br />setatred by this \iortgage. Failure by Borrower to comp}y tnay, at option of Lender, constitute a default
<br />itattr'er the ie [ru Vf tau viol crag°c.
<br />All insurance policies and renewal tlecreoi =hall be ir. iurnt acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and Sn iomt acceptable to Lender. I_enicr shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall prompt]}• iurnislt to Cruder ail renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower alts]] give prompt notice to the insurance carrier and Lender, and Lender
<br />trap make proof of loss if not made promptly by Borrower.
<br />finless Lender and Borrower oflterwie agree is tcriting, tnursrce proceeds shall be applied to restoration or
<br />repair of the Property tlsmaged, provided such restoration or repair is econortirall}- feasible snd the security of
<br />iliffi lortgage is not thereby impaired. Ii such re_toritior. or repair is not t~:onomicallr feasible or if tape security
<br />of this \iartgage would be impaired, the insurance 1?ruceeds sh;all i,c applied to !hc sums secured by this '.4iartgage,
<br />with tbe excess, if any, paid to Bormw-er_ if the Pro{terty- is abandnnec; !n- Borron-er or ii Borrower faits io respond
<br />to Lender within 34 days after notice by Leader to Borrower that the itsurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect snot apph• the insurance proceeds at. Lender's option either to
<br />restoration or repair of Lae Property oz to the sums secured Icy this \lortgsge.
<br />finless Lender and Borrower otherwise agree in writing, sn}- surf: application of proceeds to principal shall
<br />mob ar postpone the due date of the uaorrth$• installments referre~tt to in paragraphs 1 and 2 hereof or change
<br />the asttwat of sorb ms#allments.
<br />If under paragraph 18 hereof the Property acquired by Lender. ail right, title snd interest of Borrower in
<br />and Car any instrtanre policies and in and to the protect] the;eoi ato tl:e extent ai the _utns secured by this >iort-
<br />gage immediately prior to such sale or acquisition: resulting from damage u, tlrc Property prior to the sale or
<br />aognitatiorn shall pass to Lender.
<br />~ Pres~ssv~an cad of Praparty: Leaseholds: Condomitaituras. Born;; er shalt keep the Pmp-
<br />ertr in goad aeteair snd shall not permit or commit ws`-te. impairment. or de*.erir~ration ni the Property anti shall
<br />ertly with the provisions of any lease, if this \lortgsge =.s us. a lesselaal*3- Ii this \tongage is on s condominitmt
<br />unit, Harrower s~iail perform all a# Harrower s olsligstions tinder rite derisrstiaL of eondotniniunt or master deed.
<br />the by-laws snd regtriations of the candontiniuni l+roaert srt:i runstituent dartm2ent.=.
<br />9. pioteeii9ey a~ Laaader's Secruity. if Borraw-er fails to };eriortn the ruvertaats snd agreements contained in
<br />itt~ mortgage, or if soy action or prtx~tding irornn;enreti which rrxsteriaily affects i_ender•s interest in the Prop-
<br />erty, including, but not limited to, errunent dattasin, it}:olva•nry. eodi• enforcement. or arrangernent_, or praceed-
<br />ioga invah-ing a bankrupt or deeedent_ then Izutter at 3xnder'= option. ulx,n notice to BorroR•er, may tttake such
<br />aaatxs, disburse ;trrlt sums and take such senior, as as nece~i*ary to prairct Lender's interest, including, but
<br />awl lianited io, disbtaaaement of reasonable suarncy"s fee; snd entn• upon the Propery w n.ake repairs. Any
<br />as disbutseu by Lender ptir~+~rt to this paragraph :, with iaterrst thereon, shall xrame additional indebt-
<br />edarrs of $t>nower secured by this _lortgage_ Liniess Borrower and Lender agree ro other terms of payment, such
<br />sarsatmta shall be psvabie upon notice frons Lender to Batrower regtasstirtg payment thereof, and shall bear inter-
<br />ead fry the date ai difiba<rsement at. tlae rate stated in the Nate anless payment of interest st such rate would lee
<br />t~taary to applicable law, is wlaieh event sorb amounic shall bear incerea-t at the highest rate permissible by
<br />ads law. ?+Eatlring contained izi thi- Ijar,~graph 'shall resluire Lender to incur any expettse or do any act
<br />i. I.ersder may tn.lrr ar reuse to l,e mode reacanablc entries upon and inspections of the Pmp-
<br />caip, praridai that I.exrder shsil give Boraowrr notitr prior to am ,urlr inspection yx~rifying trasonable cause
<br />tsar #.v I.er+d~'s ism in tl~ P;y.
<br />9. Caadamma3ioa. 3'lae pmoeedrb of any award ar claim far damages, direct ar ronaequential, in connection
<br />w1Eh nay aoas~aation ~ ottaer lofting of ttx Propeny, ar part thereat. ar far conveyance in lieu of eondemna-
<br />tagm, alto hstr~ap assigned and shalt be paid ifl Lender.
<br />Ian the etRent of a total taking of the Property the psraceeda shall l,e applied to the sums secured by ibis 4tart-
<br />;9~• sriih the , ii sop, pxagl to Htxro~aer_ Ira the event of a partial taking of tli~ Property, unless Borrower
<br />ape is writing. ila~+e rltsli be fsgplied to the strm€ stxured by thatt Zortgage sorb propor-
<br />taoa o[ tip ga+aiee~ its ~ tgYat to allot proportion which the amount of the sttma secured by this Mortgage imme-
<br />dit~' to tla date cd taking bests Lo the fair market value of tlae Property immediately prior to the date of
<br />t wal~ttlrs halsPae of the pmoeeds paid W Baraower_
<br />If fora pfigpetf,~ nr ahs~ndaned h9 Borrower ar if after notice by Lender to Borrower That the condemnor offers
<br />to mq as i+rani ca se~lt a e3sita for damages, Boxxower fails to tsspond to Lender within 34 days of the date
<br />of aaeah aati~ge, I,ectder fat st>tlrarised to called, said apply the }rroreeds at Lenders option either in restoration or
<br />t of this Propprty cw to tlae arms seEUrcd by this \Sartgage.
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<br />f7alet~-beads curl Bormtsar hiss sgr~ lit writing, any such application of proceeds t.o principal she
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