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If ut}der paragraFih ]R hereof the Property is sold or the F'rt>perty is otherwise acgt.ired by Leader. Lender
<br />shalt apply, no later titan immediately larior to the sale of the Yrapert}• or it acquisition b}- Li+tider. any Ftnnl:
<br />held by Lender at the time of application as a credit again t thcr, sums ~ccurer,{ by this +lortga;;e.
<br />3. nppiicais;z at Paw::entc• i7nless apnlic2hic law provides otherwise, all payments received by Lender
<br />under the Note and paragraphs I and 2 hereof shall be. applied In•. Lender fiat in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof. then to interest payable nn floe 1Tote anti on Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Future Advances, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to Lhe 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 'l hereof or by Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly f•.trnish to I:ender all notices of amounts due under tlris paragraph,
<br />~ and in the event Borrower shall make payment directly, Borrower shall promptly furnish t.o Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has priority over this llortgsge; 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 />M the payment of the obligation secured by such lien in n manner acceptable to Lender, or shat! 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 />5. Hazard fnsuranee. Borrower shall keep the improvements Haw existing or hereafter erected on the Prop-
<br />erty insured against lass 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 a=. [..ender may require: provided, that Lender shall
<br />~ .not require that the amount of such coverage exceed that amount of coverage required to pay fife sums secured'by
<br />this Mortgage,
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />directly to fha 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 premiums and such sum shall become
<br />immediately due and payable with interest at the rate se! 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 />under the terms of this Mortgage.
<br />All insurance policies and renewals thereof shall he in farm acceptable to Lender and shun include s standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall he~~e [ht: right to hotel the policies and
<br />renewals thereof, and Borrower shall promptly furnish to 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 and Lender, and bender
<br />may make proof of loss if not made promptly icy Borrower.
<br />Unless Leader and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restore*.ion or repair is economically feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be spptied to the sums scoured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Yroperty is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within ~0 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits,I_ender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this 1ortgage.
<br />Unless Linder and Borrower otherwise agree in writing, any such application of proceeds to principal steal}
<br />oat extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change
<br />the aunt of such installments.
<br />If under paragraph 18 hereof the Yroperty= is acquired by Lender, a!1 right, title and interest of Borrower in
<br />and tq any insurance policies and in and to the procoecis thereof tto the eateut oC the sums sccur~i by this ~Iort-
<br />gage immediately prior to such sale or acquisition[ resulting; from damage to the Yroperty prior to the sale or
<br />acquisition shall pass to Lender.
<br />S. pr+~ ~ i~Iaintaraas•a of Property; Laasahalds: Caadaminiuau. F3arru:t'er shall keep the Frop-
<br />ert} iA gezaf rapa6r and shall oat ~nrit ar camtnit waste, hnpairt*.:ottt, or ,leteriorttion of the ?raperty and steal!
<br />cwnp~ wt_th the provisions of any lease, it this ~Iortgagc is on a leasehold. If this \fartgal;e is on a condominium
<br />unit, Borrower obeli perforru all of Borrower's obligations under the deotaration of condaminiutn ar master deed,
<br />the by-laws and regulations of fha condominiun projece and constihtene documents.
<br />7. Protection ~ Landvi a Security. IE Borrower lolls to perform the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materialh• atTerts Lender's interest in the Prop-
<br />erty, including, but not limitot! to, eminent domain, insoh•ency, code enforcement, a• anangetnents ar proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice t.+ Borrower, ,nay [Hake such
<br />appearaAeas, disburse such sums and Eake such action as is necessary to protect I.ender'a interest, including, bat
<br />Tuft, limited ta, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amount8~abttteetl by Lender pursuant to this paragt•aph 7, ;cith interest thereon, shall become additional indebt-
<br />edAetu of Barrat~er scoured by this viartgage. Unless Borrower anti Linder agree to other terms at payment, auah
<br />amounts shall be payable upon notice fro=.n Lender to Borrower requesting payment thereof, and shalt bear inter-
<br />eet (coin the date of disbttrsetrtent at the rate atateti in tho \ote unless payment of interest at. such rate would Its
<br />eonteaxy to applicable+ law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable lee. Nothing contained in this paragraph 7 shall t•cquire I:ender to incur any axpenae ar do any act
<br />hereunder.
<br />8. Inapecti~, hander may [Hake or cause to he tootle t•easonahle entries upon and inspections ai' the Prop-
<br />erty, provided that bender shalt give Harrower native prior to any suelt inspection specifying reasanahte cause
<br />therefor related to Lender's interest in the Property,
<br />8. Coatdemnatiaa. The proceeds of any award or claim for damsgea, direct or conaequcntial, in canneetian
<br />- with any condemnation ar other taking of the Property, or part (hereof, or far ranveyanee in Nett of eandemna-
<br />taon, are hereby assigned and shall be paid to Lender.
<br />Ip eta±•ent of a fatal taking of the Property, the 1?racceds shall be applitKi to the sums secut~etl by this ~lort-
<br />gage; w~h the excess, if any, paid to Hotmower. In the event of s partial taking of the Fropert.y, unless Bortower
<br />and Lender otherwise agree in writing, there shall be applied to the swtua secured by Chia Mortgage such propor-
<br />tion of fha praeeeda as is etlusI to that proportion which the amount of the sums secuted by this \lrtgage itrune-
<br />distely prior to the date of taking lwars to the fair market value of the Property immediately prior to the date at
<br />taking, with the balance elf fha proceeds paid to Borrower.
<br />I# the;Proge~g is abandoned by Borr'awer or if-after ratice by Lender to Borrower that the condemnor offers
<br />to make an bviraxd or settle a elairit for damages, Harrower fails to respond to Lender within 30 days of the date
<br />ataueh notice, Lender is authorized to collect and apply the proceeds at Lender's oution either to restoration or
<br />ropair of the Property or to the eumti secured by this ~lartgage.
<br />Unless Lender-and Burrower otherwise agree in writing, any auoh applioatiar. of proceeds to principal shall
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