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If under paragraph 18 hereof the Property s sold or the Property is otherwise acquired by bender, Lender
<br />shalt apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, :zny Fwtds
<br />held by Lender at the time of application as a credit against the sums seemed by this Mortgage.
<br />3. Application of Faymznts. Lnless applicable law provides other+visc, all payments received by Lenrier
<br />under the Note and paragraphs I and 2 hereof shall i~c applied by bender first in payment of amounts trtyable to
<br />Lender by Borrower under paragraph 2 hereof, Then to interest payable on the \TOte and on future Advances, if
<br />~. any, and then to the principal of the Note and to the princil:ai of Future .Adcanees, if any.
<br />4. Charges: Liens. Borrower shalt pay all taxes, assessments and other charges, fines and impositions attrih-
<br />--, arable to the Property which may attain a priority over this Mortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or 6y Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender ell notices of amounts due under this paragraph,
<br />f?t and in the evert Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />tr deneing such payments. Borrower shall pronq:th• discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shall not be required t.o 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 itt 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 Propertc or env part thereof.
<br />5. fla:ard hrstrzmree. Borrower shall keep the impracements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term '`extended coverage°, snd such other hazards as
<br />Leader 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 chat amount of coverage required to pay the sums secured'by
<br />this biortgag_.
<br />The insurance carrier providing the insuraace shall be chosen by Borro+cer subiect to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 2 hereot or by Borrower 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 procare insuraace on the improvements, pay the premiums and suer sum shall become
<br />immediately dtre 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 />All instrranee policies and renewals thereof shall be in iornr acreptstile to !.ender and shall include s standard
<br />ruost~-ge clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the Iwlicies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender ell renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt. nonce io the insurance carrier snd Lender, and Letxler
<br />rosy make proof of los; if not made promptly b}• Borrower.
<br />Unless Lender and Borrower othertc•ise agree in tsriting• insurance proceeds shall be applied to restoration or
<br />repair of 'the Property damaged, provided such restoration or repair is economically feasible and the security of
<br />#his IMortgage is not thereby impaired. If such restorttion ar repair is not econamieal3y feasible or if the security
<br />of t~ Mortgage would be impaired, the insurance proceeds shall i,e apulird to the sums secured by this Mortgage,
<br />eith the excess, if any, paid to Borrower. Ii the Propern- is abandoned by Borrower or it Harrower fails to respond
<br />to Leader within 3{i days after notice Irv bender to Borrower that the insurance carrier offers to settle s claim for
<br />insurance benefits, Lender is suthoriaed to collect snd apply rite insurance proceeds st Ixnder's option either to
<br />restoration or r'eFair of the Property or to the sums secured by this Mortgage.
<br />Caless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />rrat eatead ar postpone the due dale of the monthly installments referred to in paragraphs I snd 3 hereof or change
<br />the amomrt of such installments.
<br />IS wader paragraph l8 hereof the Property acquired by Lender, all right, title and interest of Harrower in
<br />srrd to any insurance policies snd in anti to the proceeds xlzereof txo zhr extent of the runts secured by this Lfort-
<br />gage. imrnediated}• prior ro such sale ar arquisition+ Nuking iron damage to t,l:e Yroperty prior in the sale or
<br />sagt>~iBan shall pass to Lerner.
<br />~, Preeeevat~n ~d Il~iaesaattee of Frol»rtq; Leoasholds: Cordoutaiaiums. Borrow:-r shall keep the Prop-
<br />erty is good repair and shall not permit or commit waste, impairntrnt, or drteriorstian of the Property snd shall
<br />ottmpiy kith tbe provi~ons. of any lease, ii this ~Iongage is on a leasehold. If this Mortgage is on a condoaunitan
<br />tm#„ ]3wrsrtcer shall perform all ai Barroger's abligatinns under the declaration of condominium or master deed,
<br />the try-lards and regulations of the ettndominiunt projc~t sn d ronstituea*, documents.
<br />7. of Leader's Sseucity. ]i Borrower fails to prriarns zhr ravrnants. and agreements contained in
<br />this 9dortgege, or if any anion ar ptncecding is conxntenced which materisliy affects Lender ~ interest in the Prop-
<br />erty, iarludtng, birt not limited to, eminent damaiu. rnsai:rncy, emir rniamement, or arrsngetnents or proceed-
<br />ir~e iatrolvir3g s bankrupt or decedent, then Lender at Ixnder: option. upon notice to Borrower, may make such
<br />appearances, disburse such sums and lake such anion a is ne<'•essarv to protect Lender's interest, including, but
<br />sat lirrrited to, disbursement of reasoarairie attomev's lees snd corn upon the Property to make repairs. Any
<br />a~ diafiiut~i lay i,-ender purbuaat trr this p°zray-raph :. wiLj; irterest therm, shall ~ssme sdditiansl irtdebt-
<br />edoess of $orroses seeund by this `+Iartgagr. t'-' ss Borrower and Lender agree to other temrs of payment, such
<br />amoaaLs shall he payable upon notice from Lender to Barmw•er requesting payment thereof, and shall bear inter-
<br />est from the date of diaburreat at the rate stated in the \ote tmless payment ai interest at such rate would be
<br />Y W a~3iesble law, in rchielr event such amounts shalt bear interest at the highest rate permissible by
<br />app las.'vothiag contaiut+d in this paragraph :shell require Lender to incur any expense or do any act
<br />~. ~spec9im. Leadtt• may make or cause to lx• made teaeonshlr retries upon and inspections of the Prop-
<br />erty, provided that Leader shall give Borrower ostler i~rior to an}• i<ucli inspection specifying reasonable cause
<br />", rsl~ ~ ms's = i; tr.re Ptn, €rty .
<br />+~. Wis. 'i'1~ prooaeds of any atrard or claim for dsr€tages, dir~ei or consequential, in connection
<br />:ikth ae~ n or aPther taking of the Property, ar lrarf thereof, or for conveysnoe in lieu of condemna-
<br />ly see hesebp snd shall be paid to Ixnder.
<br />Ia the ev~i, ~ ~ t:,otal S of the Property, the proceeds shall Ire applied to the sums soured by this Aiort-
<br />w~h t$e ererae, B art~r, paw! to Borrow,. in the event of a pat~ial taking of the Property, unle~ Borrower
<br />asd I of ~ tom, tI-,ere shall l~ aplrlied to the sums secured by this Mortgage such gropor-
<br />tie!!r ~ ~a l ae ~ etprsi Str t~rat pto}wrt~xi which the smoutti of the strma secured 6y this Mortgage imme-
<br />- diaLdg ptioa t<r the date ~ beses to the fair ruarket value of tine Property immediately prior to the date of
<br />taica~, eri~'i~efsttisaae o[ the pa+aeeeric paid to Borrower.
<br />Ii Slits ~. is ahande~net by Bier err if after mrtice by Lender to Borrower drat the wndemnor oilers
<br />to aaaiC_es as_a~eard ~ settle a suite for ilaru~sgsa, $nrnwrr fails to respond to Lender witfrin 30 days of the date
<br />of -niitiiee, ?;,eade:' its armtised tt- utdlect ar< .spplg the proceeds at Lender's option sitter to restoration or
<br />of the ~ ~ ~ the serms eewted by-this \lartgage.
<br />F Leadtsr aerl Surzo~rer ~ in writing, say such application of proceeds to principal shall
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