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If udder paragraph I8 hereof the Property is soh] yr the }'roperty is other:vi;e acquired hr bender. Lender
<br />shall apply, no later than immediately prior to the laic of t!:c Property yr its ar•quisition by Lender, any funds
<br />held l,>y Lender at the time of application as a credit against the saute ~crurc•~{ by this. ~lortgagc.
<br />3. Application of Payments. Unless appiical.ilc law provides athenvi~c, all paayments received isv Lender
<br />ut;der, the dote and paragraphs 1 and 2 hereof shall he applied by Lender first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the toter and on Future Advances, if
<br />any, and then to the I?rincipai of the ~~ote and to the principal of huture Advances. if anv.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments red other charges, fines and impositions attri~-
<br />utable to the Property which may attain a priority over this .lortgage, 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 prompth• furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payuaent directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge :uty lien which has priority over this ~Iorigage; pro-
<br />~ vided, that Borrower shah not be required to discharge an}• attch lien so long as Borrower shall agree in writing to
<br />~ the payment of the obligation secured by such lien in a manner acceptable to T-ender, or shall in good faith contest
<br />~ such lien by, or defend enforcement of such lien in, legal proceedings which operate to 1?reyent the enforcement of
<br />~ the lien or forfeiture of the Property cr any Bart thereof.
<br />5. Haaard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against lass by fire, hazards included withiu the term "extended coverage",and such other hazards as
<br />! Lender may require and in such amounts and for such periods as Leader may require: provided, that Lender shall
<br />i• not require that t:he amount of such coverage exceed that amount of coverage required to pay the sums secuted'by
<br />~ this Mortgage.
<br />The insurance currier providing the insurauce shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shalt be paid
<br />at Lender's option in the manner provided under paragraph '2 !~.,reof or 6y Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any policy is not renewed on or before ten daps 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 shaii 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 shall be in form acceptable to Lt:ndcr tmci shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. lender shall have the right to hold the lsolieies and
<br />ran.=.wats thereof, and Borrower shall promptly Furnish to Lender all renewal notices and ail receipts cf psid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />may tnske proof of lass if not [Wade promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance {sroceeds shalt he applied to resWration or
<br />repair of the Property damaged, provided such restoration or re};air is economically feasible and the security of
<br />this Mortgage is not thereby impaired. if such restoration or repair is not economically feasible or it the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this 1ortgage,
<br />with the excess, if any, paid to Borrower. If the Yrolaerty is abandoned by liorro:ver or if Borrower tails to respond
<br />ttr Lender within 30 days after notice by Lender to Borrows[- that the insurance carrier ofTers io settle a claim far
<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 ar to the scans secured 6y this \lortgagt.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or poatpoae the due date of the monthly installments referred to in y.taragraplts 1 and 3 hereof or change
<br />the amount of such installments.
<br />If under paragraph 1$ hereof the Property is acquired by Lender, all right, iitlc and interest of Borrower in
<br />and ttt any insurance policies and in and to the praeeecls thereof tto the latent of rite sums seeurect by this tinrt-
<br />gage immediately prior to such sale ar ace{uisitiont resulting from damage to the Property prior to the sale or
<br />eaquisition shall pass to Lender.
<br />& Frawsvation and &Iaiatenmtee of R~apsrty; Leaseholds; Candomiuiunu. Borrower shalt kip rho Prop-
<br />erty in g repair and shr.l! riot permit or crirrtmit. waste, itnpair.e:ent, or detorioratio.: of t'r=e i'ropt+Fy and shall
<br />comply with the pravisione of any lease: if the; \lurtgagc is uu a leasehold. If this Martgale is ctt a sondcminiutn
<br />unit, Borrower shall perform sit of Borrower`s obligation, tmdsr the declarauute of cont~ot~tinium or tns~ter deed.
<br />file hgolaws and regulations of the eondonvnimu project art] conatitusut docuttteats.
<br />7. 1?rotsctiaa of Lendei s Security. It Borrower fails to perform the covenants and agreements contained in
<br />this Mortgage, or it any action ar proceeding is conunsrced which matc.rialiy atTects Lender's interest in Ute Prop-
<br />erty, including, but not limited to, eminent domain, insalvenuy, cale enforcement, or arrxngeatents or proceed-
<br />ings involving a bankrupt ar decedent, then Lender at Lender's optton, upon notice to Burrower, may tnske such
<br />appearances, disburse such sums xnd take such action as is necessary to protect Lender's interest, inctuding, but
<br />not limited to, disbursement of seasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, w•itlr interest thereon, shall becamo additional indobt-
<br />edneae of Borrower secured by this Mortgage. TJtiless .borrower anal ].ender agree to other terms of payment, such
<br />amaunta shall be payable upon notice from Tender to Barrow•er requesting payment tFiet~eof, and shaii bear inter-
<br />est from the date of disbursement xt the rate stated in the Nota unless payment of interest xt such rate would be
<br />oontrary to applicable law, in which event such amounts shill hear interest at rho highest rate pertnissibie by
<br />applicable law. Nothing containetfrn this paragraph 7 shell require lender to incur auy expense or do any set
<br />heretmder.
<br />8. Ios~eetien. I:ender [nay make ar cause to lx• made reasonable entries neon and inspaetions of the Prop-
<br />'~ erty, provided that Lender shall give Batrower notice prior to nttc such i»speetion sltccifying reasonable cause
<br />themfor related to Lender's interest in the Property.
<br />Ccatdap~tation, the proc~ds of anp award nr claim for damages, direct or consequential, in aonnaotion
<br />with any condemnation or other taking of the Property, or part thereof, ur far conveyanes in lieu of conclemnta
<br />lion, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall br applied to the suers secured by this ~fort-
<br />gege~witlttihe=,iE-any, paid to )3orrawer..Inthe event of a partial taking of Lhe Property, unless Borrower
<br />and Loader othei~vvise agree in writing, there shat[ be applied to the cams seourei by this biartgaga auoh prapor-
<br />tion of the ptoceeda as is equal to the'. proportion which the amount o[ the sums secured by this Mortgage imme-
<br />diatety prior to the data of taking hears to the fair market value at the Property immediately prior to the date of
<br />~~6, with the kralance 9f the proceeds paid to Borrower.
<br />If the Frape=tyta abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make an a~irard or setWe a claim for damages, Borrower fails ro respond to Lender within 30 Jaya of the date
<br />of lush notoar Lender is attthoriatal to collect xnd apply the praeeeds aE Lender's option either to restoration or
<br />repair of the Property or to the sums secured ley this Mortgage.
<br />Unless Lender-and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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