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I2 under paragraph 18 hereof tale Proprrlp i- sol<t w~ cite I'ropt,rt}• i. ptherSat e ur_t}icircd In• f,inc~a•. Lender
<br />shall apply, no later than immedittr_ly prior to tht• Salt. rat alr~ Pdrrpesrtc or afi• acquisition by Lender. any I't.tnd=
<br />held by Lender at the tithe of ztI>plcc rkson a ~; ctr~.lit ~ a:t rt t1t to ~ -~ t ; ,~ f :• ctrl, i1h~7rtt, a;c.
<br />*~ 3. Application of Payments. Unaw~s tai ).,eaten: 1 : , pro s {r,c oti:r n~ ~, a'a l t}'meat rere,n-i.n bo^ Lr!~nder
<br />~ under the No#e and laaragr':.line 1 sari t 7t,tircof shalt Vrc tpp!irri h~ I en~1 r ftr_t in payment of a~rnaunts ,payable: td
<br />'~ Lender by Bprro•,ver under paraigraph 2 honest, t,heu to interest t,uaya6lc mt tits Notts, tall an I!'uturc s!,civtences, if
<br />~ any; and then ih the principal of the Note and to the principal of Future Advances, if any.
<br />4. Charges; Liens. Borrower shall }rap all taxes, assessments and athcr charges, fines and impositions attrib-
<br />~ utabie #a the Property which may attain a priority c[ger this Mortgage, and ground rents, il• any, at Lender's
<br />option ir. the manner provided under paragraph 2 hereof or try Borrower tusking payment, when due, directly to
<br />p~ the payee thereof. Borrower shall promptly furnish to I,endcr all notice, of amounts due under this paragraph,
<br />~ and in the event Borrower she]] make payment- directly, Bm•rowcr shall prompt)}- furnish to Lender receipts evi-
<br />dencing such payments. Borrower snail promptly discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to
<br />the payment of the obligation secured by such lieu in n manner acceptable to Lender, or shalt in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings which onerate to prevent the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Inauranee. Borrower shall keep the improi-emenks now existing or hereafter erected on the Prop-
<br />erly insured against loss 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 as Lender may require: provided, that Lender shall
<br />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 anal! not he unreasonably withheld. All premiums oc insurance policies shall be paid
<br />at Lender's option in thr..manner provided under paragraph ?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 />immediatQly due and payable with interest at the rate set forth in said note until paid and shall he
<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 be in form acceptable to Lender and shall inchcde a standard
<br />mortgage clause in favor of and in form acceptable to Lender. lender shall 6avc the right to hold the policies and
<br />renewals thereof, and Borrower steal! promptly furnish to Lander 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 Lender
<br />may make proof of loss if not made promptly by Borretver.
<br />Unless Lender and Borrower ethenvise agree in writing, insurance proceeds shall be applied to restoration. or
<br />repair of the Property damaged, provided such restoration or repute is economical]y 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 he applied to the suns secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within 3U days after notice 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• Lender's option either to
<br />restoration or repair of the Property or 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 or postpone the due date of the monthly installments referred to iu paragraphs I and ?hereof or change
<br />the amount of such installments.
<br />If under paragraph IS hereof the Property is acquired by bender, rill right., title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof fro thf~ extent of t,ht_ sum: secured by this M~rt-
<br />gage immediately prior to such sale or acquisition) resulting from damage to thr Yropert}• prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation sad Maintenance of Property; Leas®holds; Coadanriniuats. Borrower shall keep the Yrop-
<br />ert,Y in good repair and steal! not ltermi± or t+onunit waste, im;;air;t;F*nt. =;r de'erior:*_io:; of the Proporty and steal)
<br />comply withh the provisions of any Iease, ii this \lortgage is ou a leasehold. Ii this \lortgage is atr a sandeminiun?
<br />unit, Borrower shah perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />the lay-laws and regulations of the condominium project and cunstitucnt documents.
<br />7. Protection of Leadei s Security. If Borrower fails to perform the covenants and ;agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which ntaterialh• affects bender's interest in the Prop-
<br />erty, including, but not limited ta, eminent domain, insoh•ency, Bode rnforeement, or arrangements or proceed-
<br />ings involving a bankrupt. or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but.
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph "r, o•ith interest thereon, shall become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Leneter agree to other terms of payment, such
<br />amounts shall be payable upon notice franc Loader to Borrower requesting payment thareaf, anal shall bear inter-
<br />estfrom the date of disbursement at the rate stated in the Nate unless payment. of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph i shall tYSluiro Lender to incur any exI>cnse or do any act
<br />hereunder.
<br />8. ttsapection. ):ender may make or cause to be made reasonable entries upon and inspections of rho Prop-
<br />erty, provided that Lender shall give Harrower notice prior ni any *ue•h inspection specifying reasonable cause
<br />khfor rotated to Lender's interest in tl,c Property.
<br />$. Candarruscttiaa. The proceeds of any award or claim for damages, direct ar consequential, in eonneetion
<br />with any condemnation or other taking of the Property, m• part thereof. or for eanvepance in lieu of condemna-
<br />tion, are hereby assigned and shall t,e paid to Lender.
<br />In the event of a total taking of the Property, the proceed: shalt be upphed to the sums secured by this :1lort.-
<br />gage, with the excess, if any, paid to Borrnwcr. Itt the event. of a partial taking of the Property, unless Borrower
<br />and bender trtfierwied agree in writing, there shall be applied to the sutus secured by this .)lortgage such propor-
<br />tion of the proceeds as i$ equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />diately prior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds'~aid to Borrower.
<br />If the I?raperty is abandoned by Bo;rower or if after native by Lender to Borrower that the condemnor offers
<br />W mete au sward or settle a claim far damages, Burrower fails to respond W Lender within 3U days of the date
<br />of ch tratie~, Lender is authorised to collet and apply cite proceeds at Lender's option either to restoration or
<br />~pw~ of the rrapeny ox to fire earns secured by tlti 4iartgage.
<br />Unle~ Index and Harrower otherwise agreo in writing, any such applostian of proceeds to principal steal!
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