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If under paragraph IS hereof the Property is sold or the Property is otherwise acquisd by f:ender, Lender
<br />shall apply, no later t-Lau immediately prior to the sale of tlic Property or its acquisition by bender. am• Funds
<br />field by Lender at. rho time of applcation as a ~ redit against`nc~ sums ~crured h}- this Aortgage.
<br />3, Application of Payments. Unless applirthlc lain provides othencisc, all payments received by Lender
<br />under the Note and paragraphs 1 snd 8 hereof stall he applied by Lender first in Itayment of ;unounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payshlr on the Aote and on Future Advances, if
<br />any, snd then to the principal of the Vote and fa the principal of Futum ~ dvanres. it snv.
<br />4. Charges; iaens. Borrowar shall pa}- all taxes, assessments and other charges, flues snd imposif.imts attrib-
<br />utable to the Property which may attain a priorit.^ over this \lortgage, snd ground rents. if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or he Harrower making pstymcnt, when due, directly to
<br />the payee thereof. Borrower shall prompth• furnish to Lender all notices of anxwnis dne under this paragraph,
<br />snd in the event Borrower shall make partnent directly, Horrowcr shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower spa11 promptl}- discharge anc• lien which has priority Deer this Mortgage; pro-
<br />vided, that Borrower shall not fie required t.o discharge arn- stick lien so lone as Borrower shall agree is writing to
<br />the payment of the obligation secured by suet lien in a msuner acceptable to Lender, or shall in goad faith contest
<br />~ such lien by, or defend enforcement of such lien in, legal t>roceedings which operate ro prevent the enforcement of
<br />c~ the lien or forfeiture of the Property or any part thereof.
<br />,-,~ 5. Hozard fnstum~ee. Borrower s}ssll keep the iutprove;nenis now existing ar hereafter erected on the Prop-
<br />ert3• iusuted against loss be are, hazards ine?uded within the term •`extended coverage". and such other hazards ss
<br />Lender may require snd in such amounts snd for such periods ss Lender nta}- require; procsdecl, that Lender shall
<br />~ not require that the amaunt of such coverage exceed that amount of rocersge required to pav the sums secured'by
<br />'"' this Mortgage.
<br />The insurance ;srrier providing the insurance shall be chosen b}- Borrawcr sul,iect to approval by Lender;
<br />pZ provided, that such approval shalt net be unressonabh• withheld. _4i1 premiums on insurance policies shalt be paid
<br />f~ at Lenders option in the manner provided under naragrapit 2 her^nf ar l,y Barrows!- making payment, when due,
<br />directly to the instrance 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, pap the premiums and such sum shall become
<br />immediately due and payable a~th interest at the rate set forth in said note until paid and shall be
<br />a~slre~ by this R~nrt~aoe, Failure by Sormwer to comply xnay, at option of Lender, t~Ltgtitt3te a defgt,lt
<br />under the terms of this Mortgage.
<br />ail insurance policies snd mnea-sls t}trreaf shalt be in farttt scce?~tsldr to I_rmier and shall include a standard
<br />ttaaxtgage clause in fav°or of snd 3n fornt arcrptshh tti Lender. Len,icr stall pace tLe riglx ae hold the policies and
<br />renewals #hereof, and Borrower ~1ts11 prampzlc furnish to Lenin all renewal notices and all receipts of paid pre-
<br />sitsms- In the event of Ions, Borrower spas] give prompt notice to the insurance carrier snd Lender, and bender
<br />may make proof of lass if pat made prompth• uc Botzon-er.
<br />lntess Under snd Horrva-er othe*u-ir agree n writing. in=urancr. pracey.ds :hall be applied to restoration or
<br />repair ai the Property damaged, ItmvidcYz suet n•sto:ation ar rt=pair i ei~on~:nic•s1h- ;easih!e and the security of
<br />stria Mortgage is not thereby impaitYd. Ii sucit restortticut or rep:,tr as net econuntica?1}- tensible or if the security
<br />8f tr'i151iarfgsge a-OUld be lmpati~d, t12e-it'SUraii`e }>roeeeris slta:'s he s>tp?ire: to the wms secured by this Mortgage,
<br />faith t}ae eiceas, if any..paid to Borma-er_ ii rhr Yro}rem- is shsr.+loned Icy Bornncer ar ii Borrea-er tails to mspond
<br />ut Lander wix#tin 30 days after nonce by I_et;uer to Bermaer that rite insnrattcr carrier afters to settle a claim for
<br />i beertefits. Lender is suthorued to collect an<i apple the- insurancY pn~ceeds at Lender= option eit-her to
<br />zestoration oz z~epair of the Pmprric or =.o rite :urn: secured be thi: \longsge.
<br />tnless Lender and Botroa-er rxherwisr 3gme itt writing. anc :ugh applicstiat: a; pmrerds to principal shall
<br />atN, etttrnd or posLlwne the due date at the montLly instalhnettts rrferre~i to ir. paragraphs 1 and 2 hereof or change
<br />the amaunt of such installments.
<br />if under psragralth i$ hexettf the Propene acquired by Lender, all ri>;ttt, title snd interest of Borrower is
<br />a~ to any instrrsncr Iwlieies snd in sad to the pmcettis thes~r; ,to tLe extent ai the sums securx~ri by this '~ton-
<br />gage itnrr~diately r~riaz to such sale ar acquisition, re•ultiug irotn :latt:sgr to rite Pt4~perty prior to the sale or
<br />acgtrisitiaa shall pass to Lertder.
<br />~ P:+saea*s;#iors ms+d ~ ~ Property: Leasohotds: Coadoraiaiums. Borrower altsli kreep ilte Prap-
<br />crty in good revair snd shall not permit ar commit snare, in.psir!ttent_ or dcteriarsttan ai =,he Propem• and :hail
<br />Damply ;•it3a itae pntrisians of anc Iense. it this llongage is au a -rssraalri. li tlti; \iongage is on a candatninitun
<br />trait, Baara~rer shah pertoznt x31 of Borro~rer'- obligsttan- under t?:= ~eeiaritiu=.: of ~~ dontiniuttt or tt~ster decd,
<br />rise bl`-lams snd trgulaxians ai the tv3ndaminium pro~rtt 3t::i {•ansrturnt dtx•utuents.
<br />7. lion d I.aave:'a Security. It Harrower tail.. to perionn tltr covenan.; snd agreements contained in
<br />this :4iatrt~ttge, or ii sry articur or pxa~cot-ding is e4nirtrnt-r~i w}s;ri, u~ateriallr siic~rtj Lt~:sdrr s :ntere4t in tLe Prap-
<br />erty, iaeltsding, lent na^. ?united to, eminent dtrsasts. trs~acrncy, rttie rnfarermrnt, or arrangement. or proceed-
<br />is~s inral>.ing a ttarlrupt or deradestt titer. Lender st 1_ender'~ option. u}!an notice to Barrtwer, near make suett
<br />durse sucl_ n>.t~is and ta1:e fuel; 3etsat; ss ;~ :.rc•rs~~srn• =_o pr~ttret L~en:ier's interest. including, but
<br />~ i;~.-. te< ~~ --mot cf rile at=o.'~y'R f~= std ~ntt~• upon the Properxy te. make repairs. tn.-
<br />-°•-autsed by irreder puzsuant tai tl=is ~~aragraylt 7, with interest thereon. :;hall inctyttr additional indebt-
<br />ef~GeSS of B~oaroaer taect:reti in tail ?iottgagc- Ltnlea Horroaer and lxtader rsgree to other terms of payment, such
<br />am~otrata atoll be payal~~~~ upon notice froaa Lender w HaITOwc'r ttiquesting payment. t.hereni, snd shall bear inter-
<br />act from the date of distr::rs~erix at the rate ststsi in the '_\otz unless payment of intet+eat at such rate would be
<br />rasirar4 to spplicaile IatF, in ahiClt ex-~x steep amounts shall bear interest at the highest rate permissible by
<br />law_ Nothing :ontaioed in tlaic r=aragrapl: ? shalt s>Nquirr Lender to incur any expense or do any Set
<br />f3. ie~tee, Leader may tna3te ar rats=z t~~ IK• tnsrlr t~rxFonalde entries upon and inepeetions of the Prop-
<br />esty, amvided that Lem mall gisw~ Besr~'er nt~tirt• 1„iar to s?,}- .asrit an_y,en;an .=1~•ifyiag rea~attable eater
<br />t4tas~aa rriatt,ti to Leer's iateaest is ttte Prapestg-.
<br />'~, ~ 'brae pto~ds of any a~rard or claim iar iat»age-a, dircrt or rotcsequentisl, in tronnneetion
<br />t~rith sag or other taiu~ of the Prgtem•. or hart t?trreof, qr for canvepance in lieu of eondemna-
<br />t8on,ate 3sandby a and shall i+e paid to Lender.
<br />T.ta the. et^tat of s fatal tatdt~ of the Pmtrerty, the pia shall br .applied to the gums secured 6_y this '~ivrt-
<br />„ may, i~d ~ l3t~rsraer. In the e•~a ©f a partial taking of tip Pro}+erty, unl~ $orro~rer
<br />atttl i~+s etii~e ages in ~, iher+e shall be applied to the sums seacurcri bti this lortgage such ptupor-
<br />taap ~ tl+e edi as is equal to tl!rat propar~n wttielr sire amount of the sums secured be train 9iortga~ge inane-
<br />- '~ 1 to tfife date of btarfi to the tai: uzar'iet t•altx of the Property immediately prior to the date of
<br />Lttir~g, f;;~e l ~ tie proeaeda prid io $ormwer.
<br />I# ~6a is sbnadoae3 by Borrrrtcer or if after native by Lender to Botzower that the condemnor offers
<br />W ma1>t:e>rrtawra2d or setAae a claim dog dame, Horroner fails xo respond to Lander within 30 days of the date
<br />cf aaeli , lender 'ia ~ to collect and apply the proceeds at Lender's option richer to restoration or
<br />'~imePrap~sy+ttri4taeeet'edTrYt31>r 3lortgagr.
<br />i3aietr Leads and Barrvwer ot~a•eritse agree in xriting, any suoh application of proceeds co principal shall
<br />t~ ~,
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