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If under paragraph IR hereof the Propert}- i, sold or the Properh~ is otherwise acquired by fender, Lender
<br />shall apply, no later than immediately briar to rbr s:dc of tin= Property- ar is acquisition hp Lender. =:uy Fonds
<br />held by Lender at the time of application as a credit against tin stuns secure<( be ,his Aim~t~+age.
<br />3. Application of Payments. Limes, applienblc late provides ot.ltarwi=c, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hcreoi shall br applirl b~• Lender tit:a in payment of amounts payable to
<br />Lender by Borrower under parsgrsph 2 hereof, tPtcu ro interest payable on rha Note unit ou Future advances, if
<br />any, and then to the principal of the Note and to the prinicipal of future Ad~~anrrs, if any.
<br />4. Charges; Liens. Borrower sl!all pad- al l tuxes, assessments and outer chatges, tines and impositions attrib-
<br />utable to the Property which tray attain a priority aver this \Iortg2ue, anti ground rents, if env, at Lender's
<br />option in the manner provided under paragraph ~ hereof or by Bortower making payment, n•hen sine, directly to
<br />~ the payee thereof. Borrower shall promptly fin•nish to Lender all notices of amounts due under this }:aragraph,
<br />~ and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I,e.nder receipts evi-
<br />,~ dancing such payments. Borrower ehall prontptlc discharge any lien tahieh has priority over this Mortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge any such lien so long as Bar.oteer snail agree in n•riting to
<br />the payment of the obligation secured by such lien in n manner acceptable to Lender, or ,hall 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 />the lien ar forfeiture of the Property or any part thereof.
<br />f S. Hazard insurance. Borrew•er shall keep the improvements now existing or hereafter erected on t.ha Prop-
<br />erty insured against loss by fire, hazards included within the term ''extended coverage", ante such other hazards as
<br />Lender tray require and in such amounts and for such periods as Lender utay squire: provided, that Lender shall
<br />not require that the amount of such coverage exceed that amouni of rocerage squired to pay the sums secured'by
<br />this bfcrtgage.
<br />The insurance carrier providing the insurance shall itP chosen by Borrower subject to approval by Lender:
<br />provided, that such approval shall not be unreas..nabh tvithheld.:1I1 premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Lorratvet• making payment, when due,
<br />directly to *_he 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 he
<br />secured by this Mortgage. Failare by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />y}} insurance policies anti renett`a} iitereai si;ali be in ions arc cptable to fen^er anti shall inciurie a standard
<br />mortgage clause in favor of and in fornt acceptable to Lender- Lender shall have the right to }!old thc• policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />n<it:ms. In the event of loss, Borroz••er sitali give nrout}it not-ice ro the insurance carrier and bender, snd Lender
<br />may make proof of loss if sat made promptly h}- Borrawer.
<br />Ufinless Lender and Borrower otherwise agree is .t rills;, insurance proceeds shall he applied to restoration or
<br />repair of the Prapet•ty damaged, prawided such restorstiar, ar s}?air is econo!tacnih- feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such resters*_ion ar repair is not economirsll}- feasible or if the security
<br />of this ~fortgagz would be impaired, the insurance proceeds ;hall be applieri to the sums secured lty ibis Mortgage,
<br />with cite e,:.:evs, if - .•, paid to B~-aver- Ii t;;e P,::}ttr i~ .,, ;cicned try B~,rro.ver ar ii Borrower fails io respond
<br />to Lender within 30~dsvs alter notice by Lrndcr to Borrower that the insurance carrier at?ets to settle a claim for
<br />ittstusnce benefits, Lender is authorized to collect snd spill}- tlx. insurance proceeds at Lender's. option either to
<br />restoration or repair of the Properly or to rite sums secured be this ~Iortgage-
<br />Unless Lendez rod Barron-er otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due date of the monthl}- installments referred to in paragraphs. 1 and 2 hereof or change
<br />the amount of such installments.
<br />Ii under parsgrsph IS hereaf the Property is required by Lender, ail right, title and interes•*. of Borrower in
<br />err? to any insurance aolicies and in and to the proceeds tltereui its ti,e extent of the runts secured br this llort-
<br />gaga immediately prior to =uch sale or acquisition, rc_nltin irant damage to the Y:roperty prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation sad Maintenance of Property; Leaseholds: Condominiums. Borrower shall keen the Pron-
<br />eay in good repair and shall not permit or commit waste. impsirntent. or deterioration of the Propert}• and rha}1
<br />comply with the prowisiors of any lease, if this _llortgsge is ou a leasehold. I: this Mortgage is on a condominitint
<br />unit, Borrower shall perform all of Borrower'; obligations under rite declaration of condomittium ar masier deed,
<br />the by-lavts and regulations of t}te condominium proieet and constituent document,.
<br />7. Protection of Lendei s Seeuriiy. Ii Borrower fail; to perform the rove-nan:s and aFreemeats contained in
<br />this \iottgnge, or if snv aeries or proceeding is commenced whici, msierially aiiecta I tinder's interest in the Prop-
<br />erty, including, but not limited to, eminent doutsin, insolwrnrti, code enfarcr•ment. ar arrattgetnents or proceed-
<br />in~ involving a baakrttpt or decedent. then Lender at Lender's option, upon notice io Borrower, may stake such
<br />appearances, disbure such sums and take ouch action as is necessan• to protect Lender's interest, including, but
<br />not limited te, disbursemznt of reasonable sttorney~s lees and entn• upon the Ytnperty to make repairs. any
<br />smotmts disbursed by Lander pursuan*, to *.I:is paragraph ; ,with interesc thereon, shall become additional indebt-
<br />edn~s of Bor-ncwer seeurzd b tl-,is lortga ~. Ltnless Borrawer and Lends-r ogre tc other Qrrs of payment. such
<br />amattnts shall be payable upon native from Lender to Borrower requesting payment thereof. and shall bear inter-
<br />est ;tom the date of disburse°=ertt at thr rate stated in the Note unless payment ai interest at such rate would be
<br />contrary to applicable Saw. m whirls ewent such amount`. shall bear interest at the highest vale permissible 6y
<br />applicable lau•. Nothing contained in this }~srsgrapi! " seta?! require I-ender to incur am' expense or do any act
<br />heretsder.
<br />8. Inspaetion. Lender may make or cattle to be mad. res-<onable entries upon and inspections of the Prop-
<br />eriy, provided that Lender shall give Borrower notir-c prior to am ~urh inspection specifying reasonable cause
<br />therefor relafzd to Lender's interzsi in the Propert}-.
<br />8. Caademoatioa. The proceeds of any awani or claim for danta„•*es, dim•t or consequential, in connectio:t
<br />with any eomiemnation or other taking of the Ptvpercy, or part !'~ereof, or for rmtreyanre in lieu of condemna-
<br />taon, arc hereby assigned and snob be paid to Lender.
<br />In the evert. of a total taking of the Property, the proceeds shat! Ile applied to the sums secured by this ~tori-
<br />ga~, witb the ezce~s, if any, paid to Borrower. in the event of a paYiai taking of the Froperty, unless Borrower
<br />and Lender otherwise agree in writing, (here shall be applied to the sums s:.cured by thin Mortgage such propor-
<br />taoa of tht: proceeds as is equal to that proportion which the amount of the sums securer} by this Mortgage imme-
<br />dietety prior to the date of +eking hears to the fair market value of the Ptnpeny immediately prior to the date of
<br />tom, ..; ika balance tf the prof-zeds paid to Bor,vwer.
<br />If the Property is abandoned vy Borrawer or ii after notice by Lender to Borrower that t:te condemner offers
<br />to make an award or settle a claim for damsgzs, Borrower fails to respond to Lender within 3U days of the date
<br />of such notice, Lender is authorised to rxille-ct and ail;?lv the proceeds at bender': option either to rc-,toration or
<br />repair of the Property or to the stems secured by this 1ortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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