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If under paragraph 18 hereof dte Yro}+c r;} is sold or rite I'ropert}- is otherwrse acquired by Lander, Lender
<br />shall aPP1Y, na later than invnediatel}• prior is the s;dc of the Yrol+crty or its acquisition bye Lcudor.:m}- Funri.~
<br />held by Lender att.he time of application as a credit a{;ainst rim snots secured In tide Mortga e.
<br />3. Application of Payments. IIntes.~ aphlirahlr law i~rovidcs othervise~, ail usy-ments rirceiced by Lender
<br />under the Note and paragraphs 7 snd 2 herc•oi ~i~all h,• sppiicd he Lender first in pay-uunt of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to iutcre>t pacahlr on the Aotc and o^ Puture Advances, if
<br />any, and Then to Lhe principal of fire V~atc s[nl to the ;xincipa( of ?;'niure Ailranecs, it any.
<br />4. Charges; £ ens. Borrower siali pay- ai( t:ue_. assesstuents and other charges. finc:c and impositions attrib-
<br />utable to the Property which may attain a prority over this Marig:tgc, and ground rent<, if an}•, at Lender's
<br />option in the manner provided under pargraph 3 ltereot ur sty- Iiarrowcr makim~, payment, when due, directly to
<br />the payee thereof. Borrower sits(] prompth- ;antis(: n> T,en~ier :i! notices of antaunts. dug under this paragraph,
<br />and in the event Borrower shall make payment riirec*;~ ,Borrower sits;! pren~pth• furnish to Lender receipts evi-
<br />~ dancing such payments. Barro,ver shall prontlaiy discharge sn}- lien which has priority user this ~fortgsge; pra-
<br />„~ vided, that Borrower shall not be recuireci to diseltsr~e guy- such iictt sa ioug ss Borrower sh:.ii agree in writing to
<br />~ the payment ai the obligation secured by such tics in :; manner acceputi,ie to Lender, or shall in good faith contest
<br />~' such lien by, or defend enforcema-nt of such lien in, legs; proceedings ++~hie}; operau^ to prevent the enforcement a£
<br />~ the Lien or forfeiture of the Property or str: par; ri:ereof.
<br />~ 5. l±aES~d Iasuranee. Borrower shall keep the itnprocements now existiuo or hereafter erected on the Yrop-
<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 an:rtuas and fur such periods as Lender taay require: provided. that Lender shall
<br />~ not require that the anmtmt of such coverage exceed that amount u( rocerage required to pav the sums secured'by
<br />this Diortgage.
<br />The insurance csrrier providing the itsurance shall be chosen 6}- Borrower ~uirect to approval by Lender;
<br />provided, that such approval shall not be unreasonable :withheld. Ali premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided tinder paragraph 2 hereof or by Borrawer making payment. when due,
<br />directly to the insurance csrrier.
<br />In the event any polity is not renewed on or before ten days of its experation, 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 w th intearest at the rate set forth in said note until paid and shall be
<br />aiuird by this luibgage. iaiiUlC by DaliVN°er to i;vutpiy 3illly, 6t apllt)fl of Lender, l'oI3~Littt[e d defal7lt
<br />under the terms of this Mortgage.
<br />all insurance policies and renewals thereof shall be in form acccptah!c to Lendt•r and ah;il•. include ;a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender =hail bare the right to hold the peliciee and
<br />renewals thereof, and Borrower shall prompth• furnish to Lender ail renewal notices and all receip*.~- cf paid pre-
<br />miums. In the event of loss, Borrower shall give prmnpt notice to the insurance carrier and Lender• and Lender
<br />map Hake proof of loss if not made prompth* by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shah be applied to restoration or
<br />repair of the Property damaged, provided such restoration ar repair is ccorunnicaliy i~~astb;e ;tttd the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible of if the security
<br />of this 1ortgage would be impaired. the it~urance proceeds shall be applie!i to the runts secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Properly is abandoned by Borrower or if Borrower fails to respond
<br />W Lender within 30 days after notice by Lender tc Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance 1xacRds ai ;,ender s option either to
<br />restoration ar repair of the Properly or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such applicsiiot: of proceeds to principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and '? 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 at Borrower in
<br />and to any insurance policies and in and to the proceeds thereof tto the extent of the sums secured by this Mort-
<br />gage immediately prior to such safe or acquisitions resulting from daatage to the Yropertr prior to the sale or
<br />aegttisition shall pass to Lender.
<br />6. Presacvation sad Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit cr commit waste, impairment, or deterioration of the Property and shall
<br />comply with the provisions o2 any :ease, if this \lortgaga is on a leasehold. If this Mortgage is on a condominium
<br />unit, Borrawer shall perforn; all of Borrower's obligations under rite declaration ui condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Pratectioa of Leader"s Security. It Borrower ;ails to perform the covenants snd agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects bender's interest in the Prop-
<br />erty; including, but r, t ;fruited to, eminent domain, insolvency, code enforcement, m• srtangetnents 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 action as is necessary io nrotect Lender's interest, including, but
<br />not limited ta, disbursement of reasonable attorney's fees and entry anon the Propert}• to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebtr
<br />edness of Borrower secured by this Mortgage. Ilnirsc Rnrrnwer and header agree tc other terms of payment, such
<br />amounts shalt be payable upon notice from Lender to Borrower requesting payment thereof, snd shall bear inter
<br />eat from the date of disbursement at the rate etatCd Iri the"ate u^lcss payment of interes± st sash rate would be
<br />contrary to applicable ]aw, in which event such amounts shall hear interest ai the highest raft permissible by
<br />applicable law. Nothing contained in this paragraph i shall require hander to incur any expense or do any act
<br />heretmder. ,
<br />8. iaapsc5oa. Lender tnay make or cause to be tnsdc• reasonable entries upon and inspections of the Prop-
<br />6'd y.r r~." •"dad tl:^t r......~V7 el'alt 6.. R.. ., u, ...., ,~- l:i.~, .~ ~~ i.. ~~ ~~ •iicctiiiti ..iii- iii; '.:uaisnuu.c. cause
<br />there#or related to Lender's ~nteresi in the Pmperiv~
<br />9. Ca~tdemaation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, ot• part thet'eof, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to Lander.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this 3iort-
<br />gage, with the excete,.i~ any, -paid to $arrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lendee otherwiae'sgree in writing, there shall be applied to the earns taco--red by this jortgage such propor-
<br />tion of the gioeeeds 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 nwrket. value of the Property immediately prior to the date at
<br />taking, wit31 the bafatice of the proceeds paid to Borrower.
<br />If the Property is abandoned by $orrower or it alter notice by Lender to Borrower t.ltst the condemnor offers
<br />tc make as sward ar settle a claim for damages, Borrower fails to respond to lender within 3C days of the dale
<br />of such notice, Lender is sutttar'tzed to Collect and apply the proceeds at Lender's option tither to restoration or
<br />repair of the Property or to the sums secured 'by this Mortgage.
<br />Unless Lender and Borrawer othenviae agree in writing, any such application of proceeds to prinrilial shall
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