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If under paragraph 18 hereof the Property is said or the Prapertc is otherwise acquired by bender. bender
<br />shall apply, no later than immediately prior to the. satle of [hr Yropert}• or it< acdui.~ition by Lender. any Funds
<br />held by Lender at the time of application as a credit against the sums «cured by this Mortgage.
<br />3. Application of Payments. Unless applir<tble btw provides otherwise, al payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall he alrplied by T,cndor first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest puval?le on the Notc and on Fu[urc Advances, if
<br />any, and then to the principal of the Notc snd to the principal of Future Advances, if am•.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments snel other charges. fines and impositions attrib-
<br />utable to the Property which may attain a priority over this 3fortgxge, and grom7d rents, if any, at Lender's
<br />option in the n;anner provided under paragraph 2 hereof or by Borrower ntakinn payment, when due, directly to
<br />the payee thereof. Borrower shall promptl}• furnish to Lender alt notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly. Burrower shall promptly furnish to Lender receipts evi-
<br />• denting such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pro-
<br />~ vided, that Borrower shall trot be reyuirett to discharge any such lien so long as Harrower 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 />su^h lien by, or defend enforcement of such lieu in, legal proceedings which operate to preveni 'the enforcement of
<br />~ the lien or forfeiture of the Property or any part 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 witdrin the tern[ ' extended coverage", snd such other hazards as
<br />~ Lender may require and in such amowtts and fc: such per;otis ns bender may require; provided, that Lender shall
<br />~. not require that the amount of such cvverage exceed that amount of coverage required to pay the cams secured'by
<br />~ this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen b}• Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 2 herevf 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 interesC, may procure insurance on the improvements, pay the premiums and such sum shall became
<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 policies and renewals thereof snail be in form acceptable to Lender and shill include a standard
<br />rnartgage clause in favor of and in ~arsar acceptable to Lender. Lender shall have the right tv bald the uolicies and
<br />renewals thereof, and Borrower shall promptly ft€rnish to I.enclcr all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, $orraw•er shall give prompt notice to the insurance carrier and Lender, and Loader
<br />may make proof of loss if nut made promptly by Borrower.
<br />Unless Lender and Barrotver odrer:vise agree in n•riting, insurance proceeds shall be applied to restoration or
<br />repair of the Pmperty damaged. provided such restoration or repair is economically feasible and the security of
<br />this ?tortgage is not thereby impaired. If such restoration or relaair is not economically feasible or if the security
<br />of this Jortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this i4iortgage,
<br />with the excess, if any, paid to Borrower: If the Property is abandoned by Harrower ar ii Harrower fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower drat the insurance carrier offers to settle a claim foe
<br />insurance bens&ts, Lender is authorized to called and apply the insurance prveeeds at Lender's vption either to
<br />restoration or repair of the Pmperty or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any sash upplicatian o2 proceeds to principal shall
<br />trot extend or postpone the due date o: the monthly installments referred to in paragraphs 1 and 2 hereof ar change
<br />tbe arsnunt of such installments.
<br />If under paragraph 18 hereof the Property is acquired by I,entler, aq right, title and interest of $arrower in
<br />sad to any insurance polioie!s sad in and to the proceeds thereof rto the extent of the stints secured by' this Mort-
<br />gage immediately prior tv such sale yr acquisitioni resultin{; from :ixntxtze to the Property prior to the salt or
<br />acquisition shall pass to Lender.
<br />8, Prr~srratian ~ Nfas_af_ae_s~ct of Property; Laaeeholds; Condominiums, f3arrawer .hall keep the Prop-
<br />erty irr gaud repair and shalt not permit or conunit cwasie, impairment, or deterioraiivu of thr Property and shalt
<br />eomply with the provisions of any lease, if this Mortgage is an a Seaseicald. If this Mvrtgs.gr is vri a cvridvrainitt~s€
<br />writ, Harrower shad perivrm all of Barrnwer's vhligatians under rite deciar:,tian ai tondominittm or u€aster did,
<br />the by-laws and regulations at the condominium project and constituent documents.
<br />9. Ptatectiaa of Lsndei s Security. If Borrower fails to perform the covenants anti agreements contained in
<br />this Mortgage, or if any action or prveeeding is catnnrenyed which materially att'eets bender's interest in the Prap-
<br />erty, including, but not limited to, eminent domain, insalccncy, rude: rtrforcement, yr arrangements or prneeed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's vption, ulwn notice to Borrower, may make such
<br />appearances, disburse such sutras and take such action as is necessary tv protect Lender's interest, including, but
<br />sot limited to, dtsbursenrent of reasonable attorney's fees and entry upon the Pra}>erty to make repairs. Any
<br />tenoustA disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall became additivnai indebt-
<br />edneas of Borrower secured by this Mortgage. Unless Borrower and bender agree to other terms of payment, such
<br />amountsi shall be paysbte upon notie~e from Lender to Borrower requesting payment t.hereaf, and shall bear inter-
<br />eetfrom the data of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br />castt'ary to applicable law, in which event such smaut€ts shall hear interest. at the highest rate ptrntiasible by
<br />applicable law. Nothing eantaincd in this paragrapG r shall require Lender to incur any expense or da any set
<br />hereunder.
<br />0. Ln~w•tfgsr. Lender may make ar rsuse to Ire made reasonably entries upon snd inspections of the Prop-
<br />erty, provided that Lender shall giro Borrower natie•r- 1*€•ivr to a€ry sorb insl€eeti€u€ sptriF}-ing r,rra,hle e~,use
<br />thet~,fQr related tc T.~nder's interest in the 1Prap€rty.
<br />9. Cotadeaoriatton. The procetds of nny sward or claim for damages, direct yr consequential, in canneetaon
<br />with arty oondeataation or-other taking of the Property, yr hart therc~t;f, ar far conveyance itt Nett of curxletnna=
<br />tiara, are hereby assigned and shall be paid to Lender.
<br />In the-ewerEt~,o~s{ tata-I taking of the Property, the prneceds shall he applied to the sums secured by this Ylort
<br />gage,. with t~te'eYCCeses; if8ny, paid to Borrower. In the event of s partial taking of the Property, unless I3orrawcr
<br />and Lender otherwise agree in writing, there chaff be applied to the sums secured by this 'liortgagc such propor-
<br />tion a£ the proceeds as is-equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />• diately prior to the date of faking brays to the fair market value of tltc I'roptrty itmmediately prior to the date of
<br />taltisg, wr~h foie iu-lani~ et'ths procasd~ paid to Sar'rawer.
<br />I;f=tatty is abasndaned by $ur3~er er # aft~r• no#iee by Lander to Borrower thsL tlae cwndQmr;or offers
<br />to rtraka an ward or stttlt a aittirn far damages, Harrower fails io respond to bender within iii days of the date
<br />of such notice, Lender is suthargsed to collect snd apply the Iroceeds at Lender's option either to restoration or
<br />repai€ of the grapsr#.•y or to the stuns seeur$d Wy this Martgage-
<br />LTnless Lender and Borrower othernise agree in writing, any such application of proceeds to lrincipal shall
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