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If under paragraph IS hereof the Property is sold or tire. Yroperty is otherwise acquired ln• bender. Lender
<br />shall apply, no later than immediately {rrior to the sale of the Property or it, aeyuisition by bender. ,ray Funds
<br />held by Lender ai; the 'time of application as a credit againaf the sums <ecured 4i• tlr~ \~furt~a;;e.
<br />3. Applicatiofl of Faytnerits. Ltnless aplrlcable Ian- provides otherrt=i-e, a!1 payments rs~~eived by i.en~ter
<br />under the'Note and paragraphs 1 and 2 Lcreof shall he apl,iicd by Lender first in paymeni of amounts payable to
<br />Lender by borrower under paragraph 2 hereof, then to interest p=ayable on the Vote and on Future Advances, if
<br />any, snd then to the principal of the Note and [o Hxr principal of Future Adcanees, if any.
<br />4. Charges; Liens. Borrower anal! pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a pnority over this Jlortgage, 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. Harrower shall promptly furnish to Lender all notices 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 />~ deneing such payments. Isorrorver shall promptly discharge any lien which Iran priority over this 3lortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge an}• such lien so long as Berrocver sliali spree in writing tc
<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, legal proceedings which operate to prevent. the enforcement of
<br />~ the lien or forfeiture of the Property or any I>art thereof.
<br />~ 5. Hazard Insurance. Borrower shall keep the improvements now existing 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 />r71 Lender may require and in such amounts and for such periods as Lender Wray require; provided, that Lender shall
<br />r` ` 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 be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not he 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 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 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 Mortgage. Failure by Borrower to comply mag•, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance policies and renewals thereof =hall he in form ac•ccptrzblc to Lender and shall include a standard
<br />mortgage clause in favor of and in forte aceepiahle to Lender. !,ender shell have the right to bold the policies and
<br />renewals thereof, snd Borrower shall promptly furnish to Leader all renen•al notices and all receipts of paid pre-
<br />miums. In the event. of loss, Borrower shall give prompt notice ro the insurance carrier and Lender, snd Lender
<br />may snake proof of Loss if not made promptly by Borrow•cr.
<br />Unless Lender and Borrower otherwise agree in writing, irtuu•ancc proceeds shall be applied to restoration or
<br />repair at the Frnperty damaged, provided such mstoration nr repair i~ ecazomfcnlty feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration ur repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall 6c uplrlied to the -sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Yroperty is abandoned 1>y Borrower nr if Borrower fails to respond
<br />to Lender within 30 days after notice by bender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect :md apply the insurance proceeds at bender's option either to
<br />restoration or repair of the Yroperty nr to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend nr postpnne the due date of the monthty installmenis reierred to in paragrrphs I mrd 3 hereof or change
<br />the amount of such installments.
<br />If under paragraph Its hereof flee Propeny is acquired by Lender, :ell ri;;ht, title srcl interest of Borrower in
<br />and ttz any ism-urauce pniicies and in and en the- prncccds thereof fto tin= exernt of the sums secaret by this t~Iort-
<br />gage immediately prier in such sale to acqursitiou: resulting irons druuagc to the Prupz~rfy prior to the sale or
<br />aequieition slrali pas>- to Lerrder-
<br />~ rtrctir~ ~ 1!rlctint~ance of Paogerty, Leaaehalds. Coadoreriniwars. 1Sorrczsver dull keep the Prop-
<br />erty iW geed repair and shah nee iferrnit ur commit w.•:rstc, irnpairuzent ~ ur• ,ieteriorat-ion ut the Property and shall
<br />eori:RiY with tlr€ Qicns =• Is' s,, 'f this ~Iortr~age ~s on a Ieasclroht It this \I zriga~e i. t. . ror;dntriini3n,
<br />.unit, Bcrmwer snail lzerfvretr a!!•of Harro?aer's obligations under tf ~ cleclarstrcarr of orrdcirrtrr=•i13rt] ,:r rn~te~• dam,
<br />the by-Yawn snd regulations of the coudonrinium project :urd constitrreut ,tocunrent,.
<br />?. Prataetion of Lendar`>b Security. It Borrowver !ails to perform the i•ocr=Want.. and srl;reements contained in
<br />this Mortgage, or if any action or proceeding is comnrent•ed which nuuerialty atlcrts Lcnder'n interest in the Prop-
<br />erty, including, hart eat !incited to. eminent domain. in>oltr,ncy'. ccxie eniurrenrent, ur arrangenreWts or proeeed-
<br />inge involving a bankrupt or daeedawt, then Lender at tender's option, upar notice to Borrower, may make such
<br />appearaacea, disburse such sums and take suelr action ae is uecrssary to protect Lender's uuerest, including, but
<br />rMd. limited Lo, disbursement at reasonable attorney's iec:: ;ur,l entry upon the Yroln•rty to make repaifi. Any
<br />ataounEadjtaburaed by Lender pursuant to this paragraph 7, wit-h interest there~ntr, shalt bectame additional indebt-
<br />utlnssa of gorrnwer secured by this Mortgage. ilnless Borrower and bender agree to other teens of payment, such
<br />ar-pouats shall be payabio apori natica froriz I,aWdcr to Borrower requesting payment thereof, and shall boar inier-
<br />eatfrom the data of disbursement at the rsa• ntate<I in the Vote unless payment of iutereat at such rate would be
<br />uanfnuy tt~ applicable law, in which event xueh amounts shall heir interest at khc higlreat rate ~rmissible by
<br />appltaablir law, NathiWg contained in this paragrapl, ' shell! requfro Lender to incur any expanse or do any act
<br />hereunder.
<br />N, )dRi>~ion. l.atu#er may make or cause- to Iu~ made reasonable entries upau acrd inspections of the Prop-
<br />erty, provided that Lander shall give $orrawer notice l,rinr to cur}` sorb inspcetion 4pecifyhrg roasonablc cause
<br />therefor-related to Lattdar`s ntetes~. in the I'rnperty.
<br />$. ~ The proe~cls of any award ar claim for damages, direct or eonsequential, in cunnaetion
<br />with any condemnation or other taking of the Yrapcrty. ar {cart thereof, or for enwveyance in Lieu of cnadatnna-
<br />tian; are itereby esaigued attd shall be paid to Lewder.
<br />In the e~tert of a total taking of the Property, the procetivls shalt he applirKi to the suers secuttini by this yiort-
<br />gage, with the exes~s, if any, paid to Barrtrwer. In the everrt of a partial taking of t.hr Pralx~rty. unless Borrower
<br />and Lender otherwise agree in writing, the-re shall !za app{ier! to the urnrt sec°uerci by thin \1c,rtgaga such prerpor-
<br />tion oI the proceeds as is equal to that pro}wrtion which the anwunt of the sutus sr;curc~ti by this ~lartgage inune-
<br />diataly prior to the data of taking bears to the fair market value of the 1''ropertv inuaediately prior to t-hr date of
<br />taking, wit the balance of the prnceeds Iur.id to 13orroaor.
<br />If the Property is abandatied by I3orrawer nr if niter nonce by bender to 13orrorver chat the roudeWUror offers
<br />tts rnaka art award ar settle a claim for damages, Borrower fails to respond to !.ender wvittiin .IO days! crf the date
<br />of truah trtetsea, Lander is authorized to collect artd apply the prrtc~rls at Lender's 4pticut either to restoration ur
<br />emir of the Ympeny or to the atcrtrs at:curad 6y thin \lortgagc,
<br />Utrfe Leruler-and idorr±swar oti-.erxrise ~r~ in writing, any such applieatinrr of pr[~erd;~ to trnrrripal shall
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