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If under luaragrapl: 18r3ereof thr• Pro;aert}• s sold rrr ti,c I'ratx~r: ot~. a-si.~ ura.;ir~N? 'i;s- T.r~t,~_r-. I Y*.~Ier
<br />MhaI! ap;;ly, no later than u.rmediatelly~ prior to she -sic ci !ire Psor ~rt_ .~r , ~ tr lu~i-f:iar~ t; .° Lerrit~r -an Fund=
<br />held by Lender sa the time of application :a=_ s r•rc•tlit • fair:-t tits- rurn- -=~urc~? i~;c ;.his ~Iar?ga}!e.
<br />3, ~gtslicat3aa of Payments. t'n;~== ~,~~e~a};:, i:.+ ,.rr ,_ .~,i cr=gi-+,. ar,i ,,:~ynrents revels^~,d fry- T.encier
<br />under the ;tiotE and Iraragraples 1 and. 2 hereref al~:tll ieo alrphe+~ icy l.en«.-r first in payment t>f anrott~rrt+ payable in
<br />l:,ender try Borrower under paragraph 2 hereof, t};+:=n to irtcrest Is:ayaTSic; an tht^ ~atc and or: F'uturrr Advances, if
<br />cry, arrd then to the principal of the Rote snd to the i,rineilrsl of Future ~daancc~, if any.
<br />4. Changes; Liens. Borrower shad pay all faxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Properly which may attain a priority aver tt,is 1orgage and ground rents. if any, at Lender's
<br />option in the manner provided under paragraph 2 iiereaf or b}• Borrower making paymeni, when due, directly to
<br />the payee thereof. Borrower shall promptly famish to Lender all notices of amounts due under this paragraph,
<br />and in the event Harrower shall make payment. directs}•. Borrower .hail nrantptly iu,•a,ish to Lender receipts Evi-
<br />dencing such payments. Borrower shall promptly discharge an}• lien which bas priority over this \Trtgage; pro-
<br />~ vided, that Borrower shall not be required to discharge env sucL• lien so tong as Borrower shah agree in writing to
<br />~,~ the payment of the obligation secured by such lien in a manner acceptable io I.er:der, or shalt 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 />~j the lien or forfeiture of the Property or any part thereof.
<br />5. Iituard Insur~ce. Borrower shall keep the improvements now existing or hereafter elected on the Prop-
<br />erty insured against loss by fire, hazards included within the teen "extended coverage", and such other hazards as
<br />Lender may require and in such amounts and for such periods as Lender tray require ; provided, that Lender shall
<br />` not require that the amount of such coverage exceed that amount of coverage required to pay the sums seeured'by
<br />~ this Mortgage.
<br />1`he insurance carrier providing the insurance 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 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 may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and
<br />renewals thereof; and Borrower shall promptly furnish ±a Under all renewal ratio and ell 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 Borrower.
<br />Unless Lender and Borrower otherwise agree in n-riting, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such restoration or repair is rot economically feasible or if the security
<br />of this Mortgage would be impaired, the Insurance proceeds shall be applied t_o the sums 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 30 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 in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof fto the extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisitions resulting from damage to the Property prior to the sale or
<br />aegvisitian shall pass to Lender.
<br />6. !;reservation cad Mainteaostce of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair snd shall not permit or commit waste, impairnrent, or deterioration of the Property and shall
<br />comply with the provisions of any lease, if this ~Tcrtgage is an a leasehold. If this \iartgsge is on a aondaminivm
<br />unit, BorrawEr shall perform all of Borrower ~ abiigatians under the deelaratian of condominium ar master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Proteetioa of Lendei s Security. If Borrower fails to perforn: the covenants and agreements captained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain. insoleney, code enforcement, or arrangements or proaeed-
<br />iugs involving a bankrupt or decedent, then Lender at Tender's option, upon notice to Borrower, may make such
<br />anoearances, 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 7, with interest thereon, shall become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Tender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to $orrower requesting payment thereof, end shall bear inter-
<br />est from the date of disbursement at the rate stated in the Note 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 7 shall require Lender to incur any expense or do any act
<br />hereunder.
<br />& Iabpoetion. Lender may make or cause to he made reasonable entries upon and inspections of the Prop-
<br />erty, pr~rvidEd-that Lender shalt give $orrower coffee prior to any sorb inspection specifying reasonable cause
<br />therefor related to bender's interest in the Property.
<br />9. Coademaation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any conaemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br />tion, ale hereby assigned and shall be paid to Lender.
<br />In the event of ~ total Lakiug of the Property, the lroceeds shalt Ire applied w the sumo secured by this Mort-
<br />gage, with the excess, if any, paid to Bvrro~ver. In the event of s partial taking of the Property, unless Borrower
<br />aril Lender otheryyfee agree in writing, there shall be applier-i 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 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 paid to Borrower.
<br />If the Prop•~rtyis abandoai~d by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim for datrrages, Borrower fails to respond to Lender within 30 days of the date
<br />of such notice, mender is authorised to collect clad apirly.the proceeds at Lender's optior. either to restoration or
<br />repair of the Property rrr to-the sums seci:red by this _lortgage.
<br />Unless Lender-and Borrower othernise agree. in writing, any such application of proceeds to principal shall
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