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<br />If under paragraph 18 hereof the Property is sold or rite Property is otherwise acquired by bender, I:ender
<br />shall apply, no later than immediately prior to the sale of the Property or its scquisit.ion by bender. any Funds
<br />held by Lender at. the time of sppiication as a credit again>t the sung securer{ by this A~lortgage.
<br />3. Application of Payments. Unless applicably latt nrot•ides otherwise. ;tl] payments received 6y Lender
<br />under the Note and paragraphs I and 2 hereof shall be applied by Leniter fits in payment of amounts -payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the \otc and on Futm•e Advances, if
<br />any, and then to the principal of the i~~ote and to the principal of Future Advances, if any.
<br />4. Charges: Liens. Borrower shall par all taxes, assessments and other charges, tines and impositions attrib-
<br />utable to the Property which luny attain a priority over this 3ortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrotcer making payment, ;when due, directly to
<br />the payee thereof. Borrower shall prompt h• iurnish to Lender all polices of amounts due under this paragraph,
<br />and in the event Borrotcer shall make 1?ayn:ert directly. Borrotcer shall promptly furnish to Lender receipts evi-
<br />deneiag such payments. Borrower shall 1?rompth• discharge any lien a-hich i>,'ts priority over this Mortgage; pro-
<br />vided, that Borrower shall not 6e 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 aecepiab(e to Under, or shalt in goad faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings o bleb operate to prevent the enforcement of
<br />the lien or forfeiture of the Property or an}° part thereof.
<br />5.. Bastard Insurance. Borrower shall keep 26c itprovements notw exisrin}; 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 pet•iods as Lender stay require: provided, that Lender shall
<br />not 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 he chosen 6t• Borrower sultject to approval by Lender:
<br />prodded, that ~ueh spprots! shall not be u¢treasonsbh- withheld. Ali premiums an insurance policies shall be paid
<br />at Lender c option itt the manner prmided u¢:der ;taragrapi: 2 boreal or by Borrotcer making payment, when due.
<br />directly to the insurance carrier.
<br />Ia the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />it_s interest, may procure insurance on the improvements, pa3• the premiums and such stun shall become
<br />imatedistely due and payable tt~ih interest at the rate set forth in said note until paid and shall be
<br />secured b~ this Bortgage. Failure by Bormw•er to comply may, at option of Lender, constStute a default
<br />wader the terms of this Mortgage.
<br />?tll insurance polities and renewals thereof shall be in iomt arrcptabie to Lender sad shall include a standard
<br />mortgage tlatt_~e io fator ai anti in form scetptsble to Lender. Lender shall have the right ro itnki the policies sod
<br />renewals thereof, and $orrower shall promptly Enrols]; t.o Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier sod Lender, and I~nder
<br />map make proof of loss if not. made promp#iy be Borrotcer-
<br />ZTnless Leader and Borrowes ather•wi_~e agree in :writing, insurance lsraceeds shall ix applied to restoration or
<br />repair ni the Prapetry damaged, provided such restoration or repair is ecanomiyaily feasible and the security of
<br />tits iiartgage is nom, thereby impaired. I: such restorstiort or repair is nai econotnitally feasible or if the security
<br />of tl» \iotttgage would be impaired. the insurance ?3roceeds ;hall ise applied to the sums secured by this \irtgage,
<br />si#h the excess, ii app, paid to Borrower. If the Propent• is abandoned by Borrower or it Borrower tails to respond
<br />to Leader within 3G days after native by Lender to Borrower [ltst rite insurance carrier affet~ to settle a claim for
<br />insurance aenefi#s, Lender is authorized to callett and apply the insurance proceeds at Lender'; option either to
<br />resxorsiiaa or repair of the Property ar to the sums secured by dais \iotigage.
<br />sinless Leader and Borrotcer oihetwise agree in writing. any such application of proceeds to principal shall
<br />rtoL esttmd or postpaare the due data of the tnont.hly irssiali¢nents referred to in paragraphs 1 and ?hereof or change
<br />tie staouat of sttclt instalimexits.
<br />if ttrxles paragraph 18 hereof the Property is segtrired 'a}- Lender, ail rigiat, title and interest of Borrower in
<br />aatl t<t any instrrxnce paficses and ira an3 to the proud= theriroi eta the extent ai tlst sums second by thin Mort-
<br />gage immediateic prior to such sale a.* acquisitiont resulting iron: cis[aage to the PrKt;~zt}- prior to the sale or
<br />acquisitioa -1ta11 P~ to Lender.
<br />$. Psassr++afim sand of Prnparty: Isasehol,ds: Condomiaitrms. Borrotcer shall keep the Pmp-
<br />~ in good repair and sits]] oat permit nr commit wsa-te, impairment, ar tieteriarstiw of the t roperi.y and si!ali
<br />cc+mplg sitlt the pzot-isions of xny lease, if this \Iargage is on a ?es.=ehold_ If this \iartgage is on a condominium
<br />unit, $artoser shall periarm all of Horrower's oblieatians under tlae detiaration of condominium or toaster deed,
<br />the b~-loss end regulatiorb of the candanuairtn project and t•rrnstitucnt daeament
<br />i. P`<ot caf Id's Soeur3ty. If Bnrroa-er iaii tt ;><ritmt ine c•ovenan[s and agrerntents rantxin~ in
<br />the Mortgage, or if anF atti;,n or pro~cecaiing is camraenec~i which ¢r,atc rially atI'ects I_i odor's interest in the Prop-
<br />eltg, ineltating, but rust. limiter] to, ~,,,inent dantain. insolvency. lade enfomentert, ar srrnngements or proceed-
<br />ira~ ittvulving s lasnYrupt or decedent, then Linder at ].,ender opxinn, upon notict w Borrower. may make such
<br />~> dssbttrse such sums and lake strrh act~rn as is ner~sary to pratetd Lender's interest, including, but
<br />asrt limited ta, t of reasnnabie attaraey's feo sad entry upon the Property to rnake repairr_ Ang
<br />aimo~ dis3tnrs,:d by Les3drr ptususnt to this paragraph ?, tciilt intermt thereon, shall }~ecome additional ittdebt-
<br />edaeas ~ $~ a~ured rig tail \iaat. IInless HarravPer and l.x~ler agree w other r,erais of payment, suds
<br />a shtsll be parable upoar notice Erma Lemier to Borrower r+egtre~'na payment thereof, acrd shall bear intet-
<br />mat faaisa tie date of disburseraeat stt the rate stated in the \ote unless pay-meat ni interest at such rate would be
<br />oatatatty to applicable Is~c, in irhirk event arty} amotims shall bear inter~,t at the highest rate perrrrissible by
<br />apple lax, liotlung contained in this psrxgrapl: ;shall mquin~ Lender to incur any exptnsx or do any net
<br />i. ~rpeei~a. L~trler ¢nay male or taw.=e [o he inatlr ressonahle entries upon atttt inspections of the Prop-
<br />erly,~r+•itted that Leader shall give Barra>tres notice ttriar ?o any sutla inpeetian yrteifying reasonable cause
<br />t reisfsd to Le*der's ister~ is the Property.
<br />~ "i'1~ 3 cf nay sssrd or claim for darnagea, direct ar conr~uentisl, in t~tuectian
<br />tt'~ s¢ay ar other takutg of the Property, or ]ran thereof, ar far conyeysnee in hen of coudemna-
<br />tiga, ors aasrgttesl sad shall be paid to Lender-
<br />ta tie evtt q[; loan] taking a{ the Property, the peoceedr sits]! be applied to the sums retured by this y[ort-
<br />'~e=, if tAg, to ~~•. In tlur evert of a dal taking of rLe ~*r+opert~•, unless Borraser
<br />sad Lsadsr dhessase agree hs • tl+ere shs13 be applied to the sums seritred by thss ;tiartgage such propor-
<br />tasit ~ tlss proceeds as is sr~ssl tGS that prcitontism tvhish tie axtmtmt of the sums secured by this hinrtgsge imme-
<br />tdq 1 to tie date ~ ta3ti~ 1>esm fo the fair ittsrket value of tlse Property immediately prior t4 the date of
<br />takir~, with~e ba~aoti s~ tie pr++oeeds paid to Barrareer_
<br />ii#~es Prnptsl~ »al~doced by So~rotrer ar if after native by Leader to Harrower that the condemnor offers
<br />to antkt alt s~iraAtl xa a~tTe s claim -for dsatages, $omtwer fails to t•espoad to Lender within 30 days of the date
<br />of .tae~ee; 7 extder is atitimissd to collect atuf apple the proteerls at Lvader's aptinn tither to restoration or
<br />.:_
<br />agi~:rc~a`~F ~~tl'ie-siw-by-~ :tin gage-
<br />tdakses Leader and Borras~• ot•wsse agree in writing, any such application of proceeds to principal shall
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