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If tinder paragraph 1S hereof the Propene is sold oe the Property is otherwise acquired by bender, Lender
<br />shall apply, no later than immediately prior to the sale of the Yrapcrt}- or itc Jot}ui:ition F,ty Lender, any S~unrls
<br />held b}%Lender at. tdtc time of applieat-ion as a ~•rrdit ag,tina the suns r~cured h}- this _l-Mortgage. -
<br />3. Application of Payrrtents. Tlnless applicable Iaw pravidrs otherwise, ail pacmeuts received by Lender
<br />under t~te Note and paragraphs 1 ancf 2 hereof shat{ Ire applied h}- Lender t3rit. in Izayutent of amount„ payable to
<br />Lender`by Borrawer under paragraph 2 hercuf, then to interest payable on the Note and on Future Advances, if
<br />any, and then to the principal of the Note Berl to the principal of future Advances, if env.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments anti other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority over this Mortgage, and ground rents, if an}•, 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 T,endcr all notices of amounts due under this paragraph,
<br />and in the event Borrower shah make payment. directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing steep payments, Borrower shall prompt-1}° discharge sue lien which has priority over this \Inrt•gage: pro-
<br />~ vided, that Borrower shall not be required to discharge any such lien so long ac Borrower shall agree in writing to
<br />~ the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, Iegal proceedings which operate to preveni the enforcemera of
<br />N the lien or forfeiture of the Property or any part. t hereof.
<br />3. Haaard Inauraace. Borrower shall keep the improvement; now existing or hereafter erected on the Pr~p-
<br />`'' eels insured against loss by fire, hazards included +vithin the term "extended coverage'', and such other hazards as
<br />~ bender may require and in such amounts and for Bitch periods as bender may require: providedi, that Lender shall
<br />not require that the amount ot- such coverage exceetl that amount of eaverage required to pa}• the sums secured'by
<br />tS this Mortgage.
<br />cam- The insurance carrier providing the insurauce shall be chosen b}• Borrower suitject to aplx•oval b}- Lender;
<br />provided, that such approval shall not be unreasonably +vithheld. All premiums on insurance policies shall be paid
<br />at Lender's optimt in the manner provided ender paragraph ?hereof or b}• Borro~+•er 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 premiums and such stun shall became
<br />immediately due and payable with interest at the rate act 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 form acceptable to Lt•uder and shall include a standard
<br />mortgage clause in favor of ancf in form acceptable to Lander. ].ender shall lta+-c the right to hoici 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 gi+•e prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if eat made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurauce proceeds shall be applied to restoration or
<br />repair of the Propert-y damaged, provided such restoration or repair is ecanomicall}• feasible and the security of
<br />this Mortgage is not thereby impaired. It such restoration or repaie is not economieaily feasible or if the security
<br />of this ;\irtgage would be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned hp Borrower or it Borrower fails in respond
<br />to Lender within 30 days after notice by Lender to Borrower that ttiC insurance carrier otTers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the. insurance. proceeds of Lender's option either to
<br />restoration or repair of the Property ar to the awns secured by this Mortgage,
<br />Unless I:e:rder std Harrower otherwise agt•ee in writing, au}• such application of prnceeiis tc> principal sha13
<br />not extend or postpone the due date of the month]}• instalhucuts referred is iu paragraphs 1 and ~ hereof ar change
<br />the amount of such inatailmentr;. ,~. - --
<br />If under paragraph I$ hereai the Ymperty is acquired by Lender, all right, title and ittter'est of Borrawer in
<br />and to any insurance policies and iu and to the proceeds thereof tto the extent of the aunts secured by this Mort-
<br />gage immediately prior to such sate ar sequisitionl insulting from damage to the Property prior to the sale or
<br />acquigitaon ®ha}l peas to Lender.
<br />EI. Fe'ea+krva#iop c> ts~t4tt~a~ce of Property; I.easel;olds; CQndoartiniuma. Borrr,wt=r 5}t;;l; '~:eal, the, Prop=
<br />eels in goad repair and shall eat permit. or commit waist , intpaierntrnt, nt tiucrim•aiiou ui the I'rapert}• :utd sFiall
<br />comply with the pravisiorta of any t2a~s., if *_lit \Iortgag€, is on t t •tsenoi t. it this Jlurtga{;c is on a condominium
<br />unit, Bat'rc~'~sz=rl~l1 par€a~i a31 of Harrower abligstions eerier tur• rl~rtaration of candatuuntm ar tuasier deed,
<br />the by-laws and regulations of the condominium project sad cousciutent documents.
<br />?. Paw4aetioa of Iandei s ;3ectuity. If Borrower fails to perform the ruvenautts ant] agreements contained in
<br />this A4artgage, ar if any action or proceeding is commenced which materinlh• affects Leader's interest ht the Yrap-
<br />erty, including, but eat limiwd to, eminent danteniu, insalveucy, code entareenu•nt. or urraugements uc proceed-
<br />ings involving a bankttzpt ar decedent, then Lander at Lender's option, upon notice to Boreower. may make such
<br />appearanrata, disburse auclr surr3s and take such actiat us i. necessary to protect ]seder's interest, including, but
<br />not liaiitad to, diabureement aI reasonable attontey's fees and entry upon t-he Yraperty to make repairs. Any
<br />aanour#ts disbursed by Lauder pursuant to this paragraph ; ,with interest thereon, shall hueanme additianal indebtr
<br />adneatt of Iorrower secured by this Mortgage. Unless Barrow•er and Lender agree to otlt?r teens of payment, such
<br />amounts shall be payable upon nartice from Lender to harrower requesting payment. thereof, and shall bear inter-
<br />est tmm the data of diaburaement at the rate stated in the \ote unless payntent of interest at such rate would be
<br />contrary to agplioabte law, in which event sorb amnuttrs shall heae interest at the highest rate patmiaaibly by
<br />appGeable law. ;Nothing eontait~d in this paragraph T shall rtstuire Lcudcr to tneur any expense ar da any set
<br />hereunder.
<br />8. 6uparcriota. I ender alas make ar reuse to he teaelc rer,.anable entries upon and inspections of the Yrop-
<br />erf:y, provided that Under shall givE Iiarraa-+•r =a€~tiec- .-r s, 'tit -t t+• Buell iusl~tttt=tt peeifyina rraanahEr: cattsr
<br />theretar rc+latetl to Lenders interest in the Fropcrtti•.
<br />8, Caudaresnatrion. TRte ptaeeeds of any swan] ar ciain: ier damages, direct or canscquoutial, in conueation
<br />whit any condemnation ar ether taking of the Yrapirty, ur part thercaf, ur far rauy~•yant~e itt lieu of candatuna-
<br />Lion, are hereby assigned and shall bt• paid t<> find€r.
<br />In theavw>yota.total taking of the Property, the pracecrds shall Ire applied to than aunts aerated by this \~lort-
<br />gage, with the exc, if any, lurid to Borrower. In the e+-ens of a !,atrial caking nt the Property, tuiless Borrower
<br />at,d Lender atherwiae agree iu writing, there shall he aplrlied to the soma seeurrii by this \lort{tage such prnlmr-
<br />tian of the proceeds as is Huai to that l+ropot'tion wltieh the amannt of the: s+,nts sec-urecl by this Mortgage imme-
<br />diately prior Yo the date of taking beers to the fair warket value of the Yrolx~n}' inuucriiately prier to the daft of
<br />taking, with the balnnse of tlac proceed3 paid to Barcower.
<br />If eha Fraperty sat abandoned by Borrower or it niter nature by Lernfer to lorrawer that the candetnnor oftarti
<br />W make an aweud ar aettia a claim for damages, Borrow•gr futLs to re;ilmn:l *.a lxttder within 33 tlavs t;f tht~ date
<br />of aitGit natiCe, bender is at~tttsari.. to entin~t att,i se'l'l!' the prc~ti~lt i<t Lcncler~s- aptirn richer to retoratian of
<br />ropair of the Property ar to the bunts secured 6v this Mun>rs~+a•
<br />Unless Lettd_eP ~n.t t;.,rr.,wrr c,tl~t..,,ie •.~ iM Rt-it.e
<br />~°°• wtv ••=rr,..+ ati2h a;)piaC$ttrrrl a[ pratiPP+(* [o pYlncipsi BlVall
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