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If under paragraph tb hereoi the Yropert}• i.c sold or tLe I'ropcrty is otherwise ac•quiretl h}• Lender. Lender
<br />shall apply, no later than imnxdiateh• prior to the sale vi the I'ropcrty or its ar_quisition 6y Lcndcr. ;tny Ponds
<br />held by Lender at the iinm of applicntiau as a credit against the sinus secued by this A~lortgagc.
<br />3. Application of Payments. Linless applicable law provides othencisc, all ps}•ments received by Lender
<br />under the dote and paragraphs I and '2 hereof hall he applied b}• 1.endcr first. in payment. of autuunts payable to
<br />Lender by Sorrcu•er under paragraph 2 hereof, then to interest. payable on the Aote and rnt Future Adctutces. if
<br />any, and Then to the principal of the tiotc and to the prhuipal of Future Adv~.nces, if any.
<br />4. Charges; Liens. Borrower shs}1 }ray all taxes, assessments and otbcr charges. fines and impositions attrib-
<br />~ utable to the Property which may attain a priority over this \4ot•Lgage, and ground rents, if any, at Lender's
<br />~d option in the manner provided under paragraph 2 hereof or by Borroo~er making payment, when due, direoth• to
<br />~ the payee thereof. Borrower shall promptly furnish ?a Lander all notices of amounts due under this paragraph,
<br />~ and in the event Borrower shall make payment directly, Borratver ehal( pramptl}- furnish to Lender receipts evi-
<br />~ denting such payments. Bon-awer shall prampthT tfischsrge ant lien which has priority over this \°Iortgage; pro-
<br />~ vided, that Borro~r•er shall m,t be required to discharge r.ny such lien so long as Borrower shall agree in writing to
<br />tfae payment of t-he abiigatian secured by such lien in a •osnner acceptable to Lenc4ar, or sha!1 in good faith contest
<br />such lien by, or defend enforcement of such lien in, lel;al proceedings which ol,erate to prevent the enforcement of
<br />q~ the lien or farfeit.rre et the Properly or any part thereof.
<br />f~ 5. Hazard Insurance. $orrower shall kee}~ the improvements now existing m• hereafter erected an the Prop-
<br />crt3- insured against. loss by fire, hazards included within the term "extended caverage", and such outer hazards as
<br />Lender may require and in such amounts anti for such periods as Lender may reyuire: provided, that Lender shall
<br />• not require that the amount of such caverage exceed that amount ai coverage required to pay the sums seeured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen in- Borrower subject to approval by Lender;
<br />provided, that such approval shall nai be unreasonably witleLeld. ai premiums on insurance policies shsl! be paid
<br />at Lender ~ option in the manuer provided under paragrapl: '~ hereof or by Borrower :caking payment, when due,
<br />directly to the insurance tamer.
<br />In the every any policy is not renewed on ar before ten days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the impmvf_-nents, pay the premiums and such svm 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 #his Mortgage. Failure by Borrower to comply map, at option of Lender, constitute a default
<br />......~r ±he .a.Y.~ .,` #his h*.ot;gab~
<br />all insurance policies and renewal- thereof <s:a!I ire in fm-:n aeeei}tablo to Lendrr ami shall include a stanc: rd
<br />mortgage clause in favor of and in form acceptable to I-ruder. i.ender shall bevy ttte right to hold the p~i~cies at,d
<br />renewals thereof, and Borrower shall prontpt~y iurrislt to Lender all renewal noticYS anti all reccin*.s of paid prz:-
<br />miums. In the event of ions, Borrower shah give protuut :tot ice to the insurance carrier and Lender. and ixr,der
<br />may make proof of lam if nai made promptly i>y Bar:au er.
<br />Unless Lender and Barrower othenvise agree in ;rritin~. rnwrauce pr~c•eeds shall be auplied to restoration ar
<br />repair of the Properly damaged, gro?-ideei such trstorat;tzn or repair ;~ t•conu:nicaliv ic•asib}e anti the security of
<br />this 14lortgage is not thereby impaired. It such restor:r.iar: or repair is net cconanricail}- feasible ar if the security
<br />of this Mortgage would be impaired, the insurance }rroceeds sirs!'. ix• appiie,i ;o the suers secured by this ;1ortgage,
<br />wirlr the excess, if any, paid to Borrower. Itthe Property: is aitau~ianc~i },~ Borronc•: ar if Borrower fails to respond
<br />to Lender within 30 daps after notice by Lender ti: Barrower that the insurarce carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect srd apply the insure ice proceeds at Ixnder's option efther to
<br />re<~toration or repair of the Property or to the sums secured tn• this Martgsge.
<br />Unless Lender and Barrower othe.••a-fse agree in writing. stn suet: application of proceeds to principal shall
<br />not extend ar postpone the due date of the nronthiv inscalhrrents referred to in paragraphs 1 and 2 hereof or change
<br />t]te amount of such installments.
<br />If under paragraph i8 hereof the Property is acquired by Lender, a!i right. title and interest of Borrower in
<br />and to any insurance policies and in and to the prv.~ds thereof ; to tire' evt¢nt of rl.e sum; secure=l 6v this \iort-
<br />gsge immediately prior to such soh: or acquisizian+ resuitin, from ~iauta~e to thi Yropen}• prior to the sale or
<br />acquisftit+n shall pass to Lender.
<br />G Preservation cmd Mmntenance of Property; Leaseholds: Coadomiaiums. BormN er ~itssll keep the Prop-
<br />erty in good repair and shall not permit or commit waste, impairment, cr deteriarstian of the Property and shalt
<br />comply with the proc•isians rf any lease, ii this Mortgage is an a lesscirafd. If thi> \iorgsge is on a eondaminium
<br />trait, Borrower shall geriornr all of Borrower's obligstians under the declaration of condominium ar m~";tar deed,
<br />the by-laws and regulations ai the condominium p;oect and constituent documetets.
<br />7. Protection of Lendei s Seetirity. If Barrower fails to perform the corerants and agreements contained in
<br />this \iortgsge, or if any action ar proceeding is commenced tvhic!t mate..*ia113• affrecs Ltnder's interest in the Prop-
<br />erty, including, but not limited to, eminent domain, ursohency, ^a.#e eriorcemert, or arrangements or proceed-
<br />ings involving s bankrupt or decedent, then Lender st ].entier's option, upon nctice to Borroner, may make such
<br />appea*an~, disburse such sums and take such setian as is recessan' to protect Lender's interest, including; but
<br />act limited ta, disbursement of reasonable attorney's fees and etrtry upon the Propert.}• to make repairs. Any
<br />amo•,tmts disbursed by Lender pursuant to this paragraph 'i, with interest thereon, shall become additions! indebt-
<br />edness of Borrower secured by this ~lortgagr. Linless Borrower and Lender agree io other terms of payment, such
<br />sm~im+~ s_hai} b? payghla ,ipnn nn+_ire f_ean, T.oyirt..r rn Ltarrawer re^ytiesting payment tlteierf, and shah i:e8r inter-
<br />est from the date of dishuraemenc at the rats s*.ated in the \ate unless paymeut cf iate.-est at such rate R•ould be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest. rate permissible by
<br />appL+esble law. tiothing contained in this paragraph ~ shall require lender to incur any expense or do any act
<br />heretmder.
<br />8. fr>~-=fios• Lendrr may make ar Catr4e fo l,r made reasonai,ic entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Barrower noricc prior tr am- such irs}reciion s}tecifying reasonably cause
<br />therefor related to Lender's interest in rte Property.
<br />9. ~tiaa,. The grriceeds of any sward or claim for damages: direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, ar for canvr_yanse i^ li_u of condemna-
<br />tion, are hereby at.;igtred and shall be paid to Lender.
<br />in the event of a total taking of the Property. the proceeds :hall I,r sspplied to the sums secured by this tiiort-
<br />S, p'itb:the , if any, paid to Borrower. In the er-ent. of a partial taking of fire Property, unless Borrower
<br />and Lander otl~iwise agree iu writing, there shall be applied w the soma secured by this tortgage such propor-
<br />sa~ of the proceeds as is equal to fleet pt»poniorr which the amount of the sums secured by this Mortgage imme-
<br />diately pear to rite date of taking bears t~ fire fair market value of the Ft•apertv immediately prior tc the date of
<br />taking, ~ the balance of the Sroceeds paid to Borrower.
<br />If fire °rapr„rtp .is abandoned by Borrower or i€ after notice by bender to Borrower that the condemnor offers
<br />to make sn award or settle a claim for damages, Barrower fails to respond to Lender within 34 days of the date
<br />of aueh t~2ioE, 1,ender is authorizt~r} to collect and apply tfu }aroceedn at "Lender's option either tc, restoration or
<br />repair of tdre Properly or to the rums secured by this Mort-gage.
<br />Unless Lender and Borrower otherwise agr~ in writing, any such application of nroeeeds to priucipa! steal!
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