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If under paragraph I8 hereof the Yropertry is sold or the Property is otltcrtvise acquired by bender, Lender
<br />shall apply, no later than inunediately prim• 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 against the sums sectu•ed he this \iorC.gage.
<br />~ 3. Application of Payments. Unless alrplicaP,lc late provides othenvisc, all payments received by Lender
<br />~ under the dote and paragralrhs 1 and 2 hercoE shall he applied by Lender first in payment- of amounts ;;ayablc to
<br />~ Lender by Borrower under paragraph '2 hereof, thou to interest payable on 'the Note. and on Future Advances, if
<br />~ any, and then to the principal of the Note and to the princil>al of future Advances. i£ any.
<br />~ d. Clrtrrge3s: Liens. Burrower shall pay all taxes, assessments and other charge,, fines and impositions attrib-
<br />utable to the Property which may attain :. priority over this 3iortgage, and Kromrd rnnts, if any, at Lender's
<br />option in the manner Provided under paragraph 2 hereof or by Borrower 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 />xnd in the event Borrower shall make payment directly, Borrotcer shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall prompth• discharge any lien which has priority over this \{ortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Harrower shah agree in writing to
<br />the payment of the obligation seeureti by such lien in a manner acceptable to Lender, nr shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings tchich operate to prevent the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Tnn+rance. Borrower shall keep the iurprorements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended cot*erage", xnd such other hazards as
<br />Iandermay require-and fn such amounts and for such periods as Lender mar require; provided, that Lender shall
<br />not require that the amount of such eocerage exceed that amount of coverage required to pay the sums secured'by
<br />this ~iortgag°.
<br />The insurance carrier providing the insurance shall be chosen be Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonable withheld. Ala premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph '? hereot ar he Borrotcer making payment, when due,
<br />directly to the insurance carrier.
<br />In 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 premitrtns and snot sum shall become
<br />irn,-nediately 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 />~.~
<br />trader Lne teI'tIfS DI iilSfl mana~nb~-
<br />All iaurence pehcies and renewals thereof shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in iorm aeceptsble to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall ptYrtnpth• furni_zh to Lender all renewal notices and all receipts of paid pre-
<br />mi.a,:>c In the event of lass, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />rrray make proof of Itus if net made promptlc by Borrower.
<br />Unless Leader and Borrower athera-ise agree in writing. inrurarrce proceeds shall be applied to restoration or
<br />repair of the Property damaged. provided such restoration ar repair it econotnicaliy feasible and the security of
<br />1lortgsge is not thereby impaired. Ii such mstorrttar: ar repair is not economicaii}- feasible or if the security
<br />e# Shia \ia~rtgage would be impairer, the insurance nroeeetis shall be saplied to the sums secured by this Mortgage,
<br />with the ezeess, if anv, paid to Borrower: If the Pralterty is abandvne<i ln• Borrower or if Borrower fails to respond
<br />ur Lender withia 30 days after nvtiee by Lender to Borrower drat the insurance carrier oCters to settle a claim {or
<br />inwrrantae benefits, Lender is authorized to collect and apply the insurance proceeds st Lender's option either to
<br />trstaratioa or repair of the Properte ar to Llre rums secumd by tlsis \lrtgage.
<br />Ureleas bender and Borrower otherwise agree in writing, ant such application ai proceeds to principal shall
<br />not Cs+tend or postfwne the dux date of the monthly installments referred to in paragraphs i and 3 hereof or change
<br />tba ame>,rnt of such installments.
<br />3f under paragraph If3 hereof the Propert}' rs acrlmred by Lender, all nght, title and interest of Borrower in
<br />sad to any insurance policies and in and io the proceed; there vi tri, tlit• extent of the rani; ~cun~d br this Aiort-
<br />gage immediately p,-ior to such sale or acquisition+ resulting from dsruagr to the Property prior io the sale or
<br />se~titoe shall pass xo Lender.
<br />~ ~ t~ ~ ~ propeaty; Laaasholds: Candamuriums. Borrower shall keep the Prop-
<br />~,~ i good repair and shall nat. permit er catnmit waste, itnpainnen=.. or deterioration of the Property and shall
<br />etrtnpls wrth the pro:,-i~;ons ai any less. of alri= \ivrtgage is or: s IracelaaId. ;f ih i3ongage is vn a condo€niniuw
<br />rrait,l3oxxtrwer shall perform all of Burrower: at,ligativns under the decisratian of condominium or master deed,
<br />#~ b3'-laws and regulations of tlse aondonrinitrn: project at:d constituent documents.
<br />}. PrnMetfo+~ of Laedesa SacuritY. Ii Borro+w•er isils tie r+erionn the covenants and sgreeruents contained in
<br />this Aiortgage, or if any action or proceeding rs etrzrrrnenced whie"s, materially affects Lender's interest in the Prop-
<br />erty:including. but not limited to, eminent domain. ino-alccnrc. rva<+e eniorrenrent, yr arrangements or groceed-
<br />~ involving s bankrupt oz decedent, then Lender at tender's option, upon natita to Borrower, may make such
<br />~, disbur+se suala sums sad ta3te suc3: action as i= necesan to protect Lender's interest, including, but
<br />~f. liraiteii ua, diatrttrsement of reascmablc attorney's fees and -enter u}wn the Proper°iy to ntz~ke repairs, Any
<br />a»aaffi distsnraed he Lender pursuant tar this paragraph +, wit°r int::.*~*_ ther~eoc. shall become additional indebt-
<br />of Botxosver seertxsd by this 'tiartigage. Unless Borrower and Lender agree to other terrns of payment, such
<br />artwnsta shall be payable upon notice irrrm Lander to Borrower requesting pavtnent ihem.f, and shall bear inter-
<br />eM, from tIt•e date of disbutszarent at the rata =tstetf in the Vote unless ;.aymez:t of interest at such rate would be
<br />_ q W tipplirable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />apse law. Nothing rs+ntained i3 tlri ;earsgreplr "shall rtx;uirr Lender to incur any expense ez do airy set
<br />g Lett may trrake err eau=e to tee urade reasonably entries upon a.^.d inspections of the Prop-
<br />erty, prided that Les+t~r shall give btrrroxer notice 1+revr to anv :url3 inspertivn =lxcif}•ing reasonable cause
<br />ii~etr re~teaei 6o Lam: i~ iu t~ Prty_
<br />~, +raeds~mgliao. 1~e proceeds of any sward or efaim fo, damages, dire+rt or consequentasl, in connection
<br />widJr ~% ,#ioa ~ other Lakisrg o{ t`ne >'rppt'rty, or pan thereof, ar #or tYnrt•eyance in lieu of conderuna-
<br />'tine, are hmrehp ash atu3 shall be paid to Lemfer.
<br />In She esa-t cif a taitst tskiag of tlxe Property. ilrr larereceds shall lm applied to the sums secured by this ~iort-
<br />- gage, aithtistsees~>~~ ~ g~ to Bozrmr~r. In the event o{ a partial #.aking of the Praperty, unless Bonr~wer
<br />and ~" ~yy~, t2 ~~11 tee ~ to the earns secured by this `siortgage such propor-
<br />tim o[ She p=auea~t as is sgautl tc that proportion which the ameuent of tote sums set---ed by this 'iiortgage im»re-
<br />J to the ems of sieina hrtrs to tlm fair marltet vslur of tlm Property itntrrecliately prior to the data of
<br />E~,'ai#ie#itstlEe ~ tht%pa~e~ to Borrower.
<br />~' ~'ened b9 $ or if after srotiee by I-ender to Borrower #hat the condemnor offers
<br />to mf3Oe ~ swm+i eu se'Ztle a eLira for damngra, Borrower {ails to respond to Lender within 30 days of the date
<br />Q¢ r#iee, L~der is a»3i~isd3 to extileet and apply the Iaroeeeds at Lender's option either to restoration or
<br />t+e~afx e~_the Preup~y err too thss smms twcnzed lay this \iengage.
<br />- - . ' g y ~ Pp p _~ i ,~ s' shah
<br />L3el~s I,entier• and Borrowat' otiieratse agree in wnitn , an euerr s iica~ion a{ _rceoeaa ~a rrr'r. tl•°.
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