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If t,uader paragraph 18 ,hereof the YroperY-}- is =o9d ar t he I'roperts is o21.Yrc+;c sc-quir~d 1~w i•~-.;r3~x. l.et~dr~r
<br />- s}7a11 apply, no later than immediately prior to thr• ..~tlr.• cif the Yrapert}- orsts acyu!i~itiun by V.a~aa;der. a;;}• ~unrls
<br />held bv~L~ender at tlu;t time of ~applicatian as a errtdi~t ;gain-;t nc~ smr;ti = ~cure*t by chi- 1lortgag~c~.
<br />3. Aisplfeeitioa 'of Payments. {iniess applir•,al,irr Iau prowi~ie~ othenvise~, alt paymetr# ae~eiwed b~• LHSrdt;r
<br />under tl'pd, dote and paragral>ls I and 2 herwt sh~a18 I+~c appi'ieri in• Lcndrpr firsrt, in Ir~syuumt of a,nrount~ payable fa
<br />Lender lad- Borruwer~ under paragraph 2bereof. theu to interesrt p;,yalyic• on the \ote, azxl on F'+ttura .9dn•ance~s, 'if
<br />,~ any, and then to the principal of the tote and to the principal of Future Advances, if any.
<br />4. Charges: Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions atLrib-
<br />utabte to the Property which may attain a priority over this Mortgage, and grouud rents, if any, at Lender's
<br />~~ ~ optiott in the manner provided under paragraph 2 hereof or i>y Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts clue under this paragraph,
<br />~ and in the event Borrower shat! make payment directly, Borrower shall prompth• furnish to i,ender receipts evi-
<br />if ~ lensing such psyments. Borrower stint) promptly discharge any lien which iyas priority over this \iortgage: pro-
<br />'•~ ~ vided, that Borrower shall not be required to discharge any such fien so long as Borrower shall agree in writing to
<br />' the payment of the obligation secured by such lien in a manner acceptable to bender. or shall in good faith contest
<br />~ such lien hy, or defend enforcement of such lien in, legal proeeediugs which operate to prevent the enforcement of
<br />~ the lien or forfeiture of the Property or any part thereof.
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<br />5. Hazard Insurance. Borrower shall keep the iutprowements motw existing or hereafter erected 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 period.. as Tender mu}• 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 I~Iorugage.
<br />The insurance carrier providing the insurance shall lye chosen b}• Borrower sul,ject to approval b}• Lender;
<br />provided, that such approval shall not be unreasonably withheld.:111 premiums on insurance policies shell be paid
<br />at Lender`s option in the manner provided under harsgraph 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 =hall lye in form acceptable to Lender end shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shalt prompti}• furnish to Lender all renewal notices and all receipts of usid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice fo the insurance carrier and Lender, and Lender
<br />may mske proof of loss if net ;Wade promptly by Harrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Propert}• damaged, provided such restoration or repair is economically feasible and the security of
<br />this Mortgage is not t-hereby 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 Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned b}• Borrower or it" Borrower fails to respond
<br />to Leader 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 ai 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 I and ?hereof or change
<br />the amount of such installments.
<br />If under paragraph 1H hereof the Property is acquired by bender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof lto the extent of the sums secured by this Mort-
<br />gage immediately prior to such sale. or acquisition) resulting tram damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />fi. Preservation and Maintenance of Property: Leaseholds; Condominiums. Harrower stall keep the Prop-
<br />erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br />comply with the provisions of any lease, if this _lortgage is on a leasehold. If tlis liartgage is ou a condominium
<br />unit; Borrower shall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Protection of Lendei s Security. If Borrower fails to perform the covenants and agreements contained in
<br />this ~4ortgage, 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, insoh•enc}•, code enforcement, or arrnngements 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 actimi as is necessary to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's lees 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 />ednesa of Borrower secured by this Mortgage. Unless Borrower and bender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />estfrom the date of disbursement at the rate stored in the A'ote unless payment of interest at such rate would be
<br />contrary to applicable taw, in which event such amounts shall bear interest at the highest. rate permissible by
<br />applicable law. ~tothing contained in this paragraph 7 shall require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Inspection, Lender may make or cause to be made reasonable entries upon and inspections of the Prop-
<br />- erty, provided that bender shall give Borrower notice prior to any such inspection speeiiying reasonable cause
<br />therefor related to Lender's interest fn the Property.
<br />9, Coadenmatioa. The proceeds of nny sward or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, m• part [hercot, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall he paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall lie applied to the sums secured by this Mort-
<br />. gage, with th'e excess„if any, paid to Borrower. In the event of a partial faking of the Property, unless Borrower
<br />and Lender otherwis8~agree in writing, there shall be applied to the awns secured by this Mortgage such propor-
<br />s 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 tl;e Property immediately prior to the date of
<br />taking, with the balaiioe of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make as s~:ard er settle a claim for dan:ag ~, Barrawer faits to respond t- Lender :•`tlun 30 days of t.i18 date
<br />of such notice, Lender is authorized to collect and apply the proceeds at Lender's Dutton either to restoration or
<br />repair of rho Property or to the sutni~ seettred by this Mortgage.
<br />Unless Lender end Borrower otiiervise agree in writing, any such application of proceeds to principal stall
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