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<br />If under paragraph 18 hereof the Propert}• i> <old or the Property ie other•.rise; acquired h}• Lender, Lender
<br />shall apply, no later than immediately prior to the sale of fire Praperr}~ m• its aegt,;isitiun i~,,y- l.c•nder.:urv Funds
<br />held by lender at the time of application as a credit again:~t rlur =urns ~e•r, umd b4~ r}ti..ALortt;agr.
<br />3. Application of Payments. Unless appticabic lac+ provides othcanvi>,•, all p:iyn'ients receiycd by Lender
<br />under the ;Vote snd paragraphs I anc~ 3 hereof shall he applic,i by Lender first in payment eri ;amounts p:tiyahle to
<br />Lendet• by Borrower under paragraph 2 hereo`i, theu to interest pavai,le ou thc~ ~;otc and on Fuhrre Advances. if
<br />any, and fhen to the principal of the Foie and to the principal ni Future .t,i~•anres, it am•.
<br />4. Charges; Liens. Borrower shall p;n- all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority over this Mortgage, and ground rents, it any, at Lender's
<br />optior. in the manner provided under paragraph 'l hereof or by Horrower making payment., when due. directly to
<br />the payee thereof. Borrower shalt promptly furnish co Lender all notices ui amaunis due render this paragraph,
<br />and in the event Borrower shall make paymeni, directly, Bm•rower shall pron;pd}' iurnish to Lender receipts evi-
<br />dencing such payments. Borrower shah promptly discharge am- lien which ha. priority Deer ii;is \Iortgsge; pro-
<br />vided, that Borrower shall not be required to discharge any such lien su long as Borrower shall agree in writing to
<br />the payment of the obligation secured by such lieu in a manner acceptable to Lender, or shall in good faith contest
<br />such lien b}•, or defend enforcement of such lien in, legal lu•oceediugs, which operate to prevent the enforcement of
<br />the lien or forfeiture of the Property m• any part thereof.
<br />5. Haaard Insurance. Borrower shall keep the improvements now existing ur hereafter erected un the Prop-
<br />erty insured against loss by fire, hazards included rvithiu the term "extended coverage", :end such other hazards as
<br />Lender may require and in such amounts and fur such pericris as I,cuder may require: i;ruvidcxl. that Leitdcr shall
<br />not require that the amount. of such coverage exeeeci than amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurauca shalt be chosen by Harrower subject to approval by Lender;
<br />provided, that suoh approval shall not be unreasonably withheld. Afl premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided undar• paragraph 2 her, ai or by Borrower making pa}•ment, 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 may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance pollutes anet renewals thi.reof shall 6c in form acceptitblc to Lender sod shaill im•lude s stamiarti
<br />tnartgage clause in favor of rind in form secepiable to Lender. Lender siesll have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender ell renewal twt-ices 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 Lender and $orrower otherwise agree in writing, insm-ana: proceeds shalt be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is ccononticalh• feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not cconomirilly Feasible or if lire security
<br />at this \lortgage would be impaired, the insurance proceeds shall be applied to the soots secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. It the Property is abandoned by Harrower or ii Borrower iails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurauca cat•rier offers io setWe a claim for
<br />insurance benefits, Lender is authorized to colteat and apply the insurance proceeds at Lender's aption either to
<br />restoration or repair ai the Property or to thr sums secured by this \Lortgage.
<br />Unless Lender and Horrower athenvise agree in writing. any such application ui proceeds to principal shalt
<br />not extend or postpone the due date of the ntonthh• installnteuts referred to in paragraphs 1 and 2 hereof or change
<br />the atnaunt of such installments.
<br />If undar paragraph Ig hereof the N.*operty is acq:tired k>r I.en.ler. a.!! right, tiflr snd interest of $orrowar in
<br />and to any insurance poliaies and iu and u'r the proceeds thr're>of stn thr rxtent of thr swus secured by this Vtort-
<br />gage immediately prior to such sah• ur aequisiUont rr..,.tittug front daeuue4r to !!;,• I'ropert.y prior co the sale er
<br />aequisitian shall pass try le•ndcr.
<br />!#, Pr+r°atlcrt arxd Ie4a*atteuaa~ of )~roperfy; Ler3~holds: Condratisiu~, f3orr,,,,•a~r spa:? keep Ella I3rop-
<br />erc_y itt uaod repatr attd slt:tll rant neCttut ur cuntmit waste, itt?p;4i rr, tr..tt, ~,_ .it.r;•r,c•ru r;c=•te if the= I;rcpesi4y =end steal`=_
<br />cotnplp with tfic provisions of ;tray lease, if iiti> \lurt L.7Le is ~n t ~~ ~,e~i:rtt ; 1+ ti.~. A} - ega~t ~ n ~ ~.o e <snin;~ut
<br />unit, F3orrower shall Iterfunn all of Burrowee~h ubltgx,ti+m> .uedcr ti;,• dcriarnnot: ui .omlonunwm or tnaater deed,
<br />the by-laws and regulations of tltc caudaminium product and ~•ru-auuc•ut .to.•tttueat.~-
<br />7. Ptotection of Lender's Security. li Harruw,•r fati~ to perform the cui•,•nsr;t< :wd nt!reeutenks contaitted in
<br />this Aortgage, or if any action m• proceeding i, cont;ncuc,•d which ntatertally afl•ccts Lender's interest in the Prop-
<br />erty, including, but not limited to, erntntnt dentam, tt;,t,lr~,m,•y, , ~wi.~ ,~nt,rrronu•nt or :,rraorr,~~urrnr, ur 1?raeeed-
<br />inga involving a bankrupt or decedent, then Lender at l,ru,ier',, ul;tiuu. upon entice w Rurroryer. mar' make suoh
<br />appearances, disburse such swus and take such :retiou a, ,s u,~. c~s;tr}• to protr~t t in•ndet's interact, including, but
<br />not limited te, dishursernent pi reasouttble atturney~- Fermi :utd rata ufxtu rtes 1'n~perty to wake repairs, any
<br />amounts disbursed k>y Lender pursuant to this psora};ral:h ;. with urterea*. thereon, shall heeonte additional indebt-
<br />edtt~ of Barrowar secured by this \lartgage l'ttl~:s Iarrower and ..eneier sgrec to oiirer terms of payment, such
<br />amounts shall be payable, upon notice Prow hi•mler to Iiurrowe•r rc•qu1>siing payment thrreat, and shall bear inter-
<br />~t from the date of disbursement at the rate Muted in the talc unless p;tynrcatt of interest at such rate would be
<br />contrary to applicable law, in which event such etutuunts shall t;c~ar interest eft Etta highest rate permissible by
<br />applicable law. tilothing contained in this iaragraph '+ ah:dl r.quuu Lender to incur soy expense ar da an}• set
<br />hereunder.
<br />Q. tasplCtiou. lender may taste ur cause to hr tnada° rrasotrable enerit~; upon and inspections of the Prop-
<br />~riy, presvitlt~t that I,rnder sttttll giG°e Liorrawer ru3tirc I,nor to rury .ooh inpc•ctiou p4cifyin~, reasonable cai~:..r
<br />therefor relat~.x1 to Lender's interest in rho Property.
<br />9. Condeaonatioa. The proceeds of any uwani or claim for damage.4, dirrct or causequetttial, in connection
<br />with any ewndtvnnatian err other trrking at the= Yropetty, or part tbt•rcuf, or fur runyc•_yunet• in lieu of conclanuw-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In the Brent of a U>tsi takutg of the Prot~rty, the praceedn shalt he applied to the scuus se~rrnecl Ery thin 41ot~-
<br />gage, with the exc.esa, it any, paid to Borrower. In the avant of a partial taking of 'the Prapcrty, furless Harrower
<br />and Lewder otherwise agree in writing, there shall bt applied to the sums secured by this Mortgage such propor-
<br />tion of the proceeds as is equal to that Proportion which the amount of the sutras secut•erl by this llortgagc imme-
<br />diately prior to the date of taking bears is the fair ntarkt:t value of the Yraperiv ituarediately }ariar to the dace of
<br />felting, with the balance of the prase-ads paid to Borrower.
<br />If the Prapertlr is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to malts an award ax settle a claim for damages, Horrowet• fails to respond to Lender within 30 days of the date
<br />of such-notice, Lender is authorized to aoUeet and apply the trrooeeds at Lender's option cithrr to revkoratien or
<br />repalr of the Prop6rQy ar to the sutras secured by this ~ Iortgage,
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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