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<br />If under paragraph 13 hereof" the Property is sold or *•hc Property is otherwise acquired by Leander. fender
<br />tltall apply, no later than immediately prior to the sale of rive, Propcru' or its acquisition 1>p Lender. atry Funds
<br />held by Lender at the time- of application. as a creriit against rtes anus -scared !n- this \Iortgagc.
<br />3, Applicatiaa of Payrrreats. Unless alrplirable l:nv provir!es otherwise, all payurerttc- received by Lender
<br />under the Nate and paragrapl4 1 and 2 hereof shell I,r, applirzd I,v 'Lender fir,=t in payment ui mnounta payable to
<br />Lender by Burrower under paragraph 2 hereof, then to interest payable uu the Vote oust on Future Advances, if
<br />any, and then to the Irrineipal of the Note and to the !principal ut Future 9dvancea, if env.
<br />4. Charges; Liens. Borrower s!}all pay al( taxes, assessments and other charges, fines and impositions atfrib-
<br />utabte 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 by Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender all no±ices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge amr lien which has priority over this lIortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Burrower shall agree in writing to
<br />the payment of the obligation secured by such lien in a manner acceptahle to Leader, or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in; legal procerdings :vhiclz operate to prevent the enforcement of
<br />the lien or forfeiture of lire Property m• any part thereof.
<br />5. Hazard lnsurmrce. Harrower shall keep the improvements now existing or hereafter erected on the Prap-
<br />crty insured against loss by fire, hazsrdsinohrded within i,he term °extended coverage",and Bach other hazards as
<br />Lender may require and in such amounts and for such periods a- L-ender may require; provided, t-hat Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage required to pay tkte sums secured'by
<br />this Rlortgage.
<br />The insurance carrier providing the insurance shall he chosen by Borrv+err subjeeC to approval by Lender;
<br />provided, that such approval shall not he unreasonabl}• withheld. All premiums mr insurance policies shat! be paid
<br />st Lender's option in the manner provided under paragraphr 3 hereof or by Borrower making pad recut, when due.
<br />directly to the insurance carrier.
<br />In the event an}> policy is not renewed on or before ; rn 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 set forth in said note until paid and shall be
<br />secured by this Rlortgage. Failure by Borrower to comply nray, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />Aft insurance policies and renewals thereof shall he in forvr arceptahlc to Leerier and shall include a, standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender she!! have the right to !roll ±he policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal nottecs 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 by Borrower.
<br />Unless Lander and Borrower otherwise agree in w•ritiug, insurance proceeds shalt be applied to restoration or
<br />repair ot` the Property damaged, provided such restoration or repair is cconumically feasible and fire security of
<br />this Rlortgage is not thereb}• unpaired. Ii such restoration ur repair is not ecunomirr4ly feasible or it the security
<br />of this Rlortgage would be impaired, the insurance proceeds sha(I !a• applied to the sums secured by this Rlortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned b}• Barrew•er or ii Borrower fails to respond
<br />to Lender within 30 days after nonce by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at bender's option either to
<br />restoration or repair of the Property or to the sums secured by this Rlortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any sur'h app!icatiun of proceeds W principal shalt
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />It under paragraph 18 hereof the Property is acquired by Lender, all right, rifle ssnd interest of $orrower in
<br />and to any insurance policies and in and to the, proceeds thereof itv the extent of the soma secured by this Mort-
<br />gage immediately prior to such sale or acquisition! resnltiug iron; ,tamszge tea rtes Prclrerty prior to the sale ar
<br />azoquisition steal! Iaass to Lender.
<br />S. Prr~xrervatian atsd Maiatarance of Property; Larueholds; C©ndorniniuma. 13orrowcr shall keen the Prop-
<br />erty in gaud repair acrd 4trall not porrnit or commit r;-rite, itrq+ainnent, cu• dr`.t«•riueaeiun of the Property uud shall
<br />cgsszply'tvth thq previsions of any lease, i. r.,,a i!ortgagc~ i .,.: a l~aeh€:,.; If tl;i_=. =iart~:sgt. i- un rs eondaminium
<br />unit, F#errswer ahs11 p~rf^rttr tart of Borroher's uhligatiott- under t#;e .lee!aratt~3n u, rondarrrir,iurrc ;}r raster deed,
<br />the by-taws and regulations ut floe candominuuu project and eunstitueut documents.
<br />7. Ftote~tioaotLandaraSeeurity. If Borrower tai!: n.r perform the cuveuams and agrrements contained in
<br />this Mortgage, or if any action or proceeding is conuuenced whic!t nrsteriall}• affects Lender's interest in the Prop-
<br />erty, including, but not luniteri to, eminent domain, m~olvt•nenc, code rnturcenunnt, ur urrangeutents yr proeeerl-
<br />iage involving a bankrupt or decedent, then Lender at Lender', option, upon notice fo Borrower, may make such
<br />appearar_aes, disburse such sums and take such action us i5 necessary to profs et ' seder's interest, including, but
<br />sot limited to, disbursement of reasonable attorney's ices and entry upon the 1'raperty to make repairs. Any
<br />aaronrrttr dtabtzrsed by Lauder pursuant to this paragraph i . +vittt interest thereon, shall became additional indebt-
<br />educes of $orrower aecrn'ed ray this Mortgage. Unless Borrows r and Leader agree to other terms ot• payment, such
<br />attwuate shalt tae payable ulaon notice front Lender .u Borrower requesting payment thereof, and shall bear inter-
<br />adtlrom the elate q*. disbursement at rtes rate stated in rtes Rote unless payment of interest sst sash rate would 6e
<br />coatnzcy ~ spphca63e law, ur whiolr event such amounts shall taaar intPrct ai the highest rate permiseihle by
<br />applioabie law. Nothing cantainert in this paragraph ~ shall require Lender to incur any expense or do any act
<br />trere+zurder.
<br />9. z~1. Lender tnay make or cause tc ik• uradc resaunalale retries upon and inspections of the Prop-
<br />erty, provided that Lander shall give Burrower nariec prior tv an}• .twit inslaectiun kpecifyimg reasonable cause
<br />therefor related teo Leader`s intorast in the Pwpnrty,
<br />8. 'Fhe proceeds of nny aware{ or claim tvr damages, direct or consaquentiai, in eonueetaon
<br />with any ca'tdamnation or other taking of the 1'ropewty. ur part tlterr'<af, ur for runve once in lieu of condemna-
<br />tion, are hereby assigned and shall tar' paid to bender.
<br />In theeve~t-qf a total taking of the Property, the proceexls :thsll bc• applied to the snroa aerurz~cl by thin Rtort-
<br />gr-ge, with the dace, if any, paid fo Borrower. In thr avant of a partial taking ut the Frotac-rty, umte:?x Aerrrewar
<br />atzd Leader tNdterwisr agree is writing, there shalt be appticci to the suers securett ray thrs MortKaQ€n such propor-
<br />tiga of the proceeds as is equal to that proportion wt:ieh the amount of ttra awns securrvl by this Rturtgatge imma-
<br />diaWly prior Ip the date of taking kacarx to the fair market value of the Yropert}• immcztiatciy prior tv the data of
<br />diking, with the hat8anec ut the ptoceedrt paid to Harrower.
<br />If t~ Prgpert}r ur abandotzerl by 3grrgwer or if after notice by l.encier to florrnwer that the candenanor offers
<br />to malts sa award ar settle aclaim-for damages., Barrewar fails to t`NSponrl to Lrndrr w•ifhur 30 Jaya, o[ rho date
<br />of such rrot.fee, Lander is authotyserf tgcalloct sad atruty the I+roetrcls at I.tander' orrrie,,, enither to rest~=ratiura or
<br />t'sysir of tree Property car to the suznat seeure+l by this Rlartgaxe.
<br />Unte~r tinder and Barreat=<er othe?twise azrree in writing, anv fru?tt appl~s~?tir,_..rt , _....,.- ., *u:e -..~1!
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