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<br />If under paragraph 18 hereof the Property is sold m• the Property is otherwise acquired Hy Lender, Lender
<br />shaA apply, na later t-iron immediately prior to the sale of the Property or its acquisition by Lender, any Funds
<br />held by Lender at. the time of application as a credit against the -sums secured hs• this 3-tortgage.
<br />3. Alpplieation of Payments. Unless applicable law provides otherwise, all payments received 6y Lender
<br />under the Note and paragraphs I and 2 hereof shall be applied by Lender first. in payment of amounts psyablP to
<br />Lender tsy Borrower under paragraph 2 Hereof, thou to interest payable on the Note and on Future Advances, if
<br />any, and then to the principal of the Note 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 attrib-
<br />uteble to the Property which may attain a priorit}- over this \lortgage, and ground rents, if arty, at Lender's
<br />option in the manner prorided under paragraph 2 hemot or b}~ Borro++~er making payment, when due, directly io
<br />~ the payee thereof- Borrower shall pramptl_v furnisH to Lender all notice. of amounts due under this paragraph,
<br />~ and in the event Borrower shall make payment directh•. Borrower shall protnnth• furnish to Lender receipts evi-
<br />dencing such payments. Borrower shail promptl~° discharge any lien which ltas priority over this Mortgage; pra-
<br />~. vided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to
<br />~ the payment of the obligation secured by such lien in s matures aeeeprrble fo Lender, or shall in good faith contest
<br />~ such lien by, or defend enforcement of such lien in. legal nraceedings ++hich operate to prevent the enforcement of
<br />~ the Iien or forfeiture of the Property or any part tHereoi.
<br />~' 5. Xazard Inauraace. Borrower shall keep the fort+roveu!ents new existing ar hereafter erected on the Prop-
<br />erty insured against 1a~~ bs• 5re, hazards included :v L•ia the ter; "extended coverage", and such outer hazards as
<br />~ Lender may require and in sucH amounts and tar such periods ss l:ender atac require; provided, that. Lender shall
<br />not t•equire that the. amount of such coverage exceed first amount of rorersge required to pay the sums sectrred'by
<br />this Mortgage.
<br />The insurance carrier providing the iusurattce ;hall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval sha!1 not be unreasonabl}• +vithheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner prorided under narsgrapH ° 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 prrxure 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 raid and shad 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 />:1I1 insurance policies and renewale thereof shall be in tone acceptable. to Lender and shall include s standard
<br />mortgage clause in favor of and in fom~ sceepiable to Lender. Lender shall Have the right to hold the policies and
<br />renewals thereof; and Borrower shall promptly furnish to Lender a]I renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shalt give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if nat made promptly Hy Borrower.
<br />Unless Lender and Barrower othenwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair ai the Propert~• damsged, provided such restoration or repair is economically iessiHle and the security of
<br />this Mortgage is not thertibv impaired. Ii such restoraion or repair is not economically feasible or if the security
<br />of this \iartgage would be impaired, the itrsuranee proceeds shall Ha applied to the sums secured by this lortgage,
<br />with the execs, it any, paid to Borrower. If the Yro1x •ty is abandoned by Borrower or ii Borrower fails to respond
<br />to Lender within 30 days after notice by Lender to Bortcwer that the insurance carrier afters to settle a claim for
<br />inen'a++ire benefits, lender is authorized to collect and apply the insurance proceeds st Lender's option either Lo
<br />restoration nr repair of the Property or to the sums secured by this \fortgsge.
<br />finless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not etctead or pa,-tpoae 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 tinder paragraph IS hereof the Propem• is acquired by Lender, a': right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds tltereoi tta the extent of the sums secured by this 3iart-
<br />gage immediately prior to such sale or acquisitions resulting from damage to the Proaertr prior to the sale or
<br />acquisifaon shall pas, to Lender.
<br />G. Pr~eroatias an,3 Mafntsnaace al Prap~-ty; Leoaeholda; Coad~:.~iu~., Borrcwer sl;all keep the Prap-
<br />erty in good repair and shall net permit or commit waste, impairment, ar deterioration at the Property and shall
<br />comply with the provisions of ant lease, r,' this Mangage is oa s ieaseltold- Ii this ~lartgage is on a condominium
<br />unit, Borrower shall perform all of $orrower's abhgatians under the declarntion of condominium or master deed,
<br />the by-laws and regulations of the condominium pro;eet and constituent uocuments.
<br />9. Proleetion of Lsader's Soeurity. If Borrower fails to perionn the covenants and agreements contained in
<br />this Mortgage, or if ant action or proceeding is ramnrenced which materially affects Lenders interesi in the Prop-
<br />erty, isxludiag, but not limited to, eminent damaitt. irsolcencv, code enfomement. or arrangements or proceed-
<br />ir,ge involving a banltrupt or decent, tten Lender at Lender s option, upon naiice to Borrower, tray make such
<br />appearances, dilaurse such =_utns and take such action ~ is necessary to protect Lender's interest, including, but
<br />~, iisrited to, disbw~emertt ai reasonable a*_tarney's fees and entn upon the Property to make repairs. any
<br />amoirtris disb:t-used by Lender p.ttsuant to this paragraph 7, whit inter: iherean, shall become additional indebt-
<br />edmesrt of $orrovrer secured by this 'tiortgage. Unless Bo*roner and Lender agree to o#her terms of payment, such
<br />amounu shall be payable ut*.an notice iron Lender to Barawer requesting payment thereof; and shall bear inter-
<br />ert from tY.e date of disbursement at the rate stated in the \oce unless Ias}znent of interest at such rate would be
<br />cortuary to applicable lea, in which evenx such an~unts shall bear interest at the highest ra±e permissible by
<br />agplieah~le law- Notitrng ecntained in this paragraps : shaS{ t•cx;uire Lender to incur an}- expense or do any act
<br />~.
<br />i. Lender nrav make ar cause to ix~ made reasonable entree upon and insfiections of the Prop-
<br />ettr, grovi~xl that bender sita3l give Bcrrea•er traticc• ;,star to :en ;- . uclt in=laectian s;,ecifring reasonable cause
<br />theiefor related to Lender'. interest in the Property. •
<br />'ffi. `''°-.~..~:ssm~ The proceeds rf any award ar claim for damages, direct or consequential, in connection
<br />with say eorrdemaation ar ether iakirr<g of the Property, or part theteoi, or for conveeance in alto of condemna-
<br />tiae, are terry .ass;gr,ed and shall be paid to Lender.
<br />In the event of a total taking of the Propeny, the proceeds shah l,e applied to the sums secured by this Mort-
<br />ga~, ~vitb ~ , i~-any, paid to Sorstawer. In the event of a partial taking of the Property, unless Barrower
<br />and I.eevltr ~ agree in writing, there shall be applied to the sums secured by this 'Mortgage such propor-
<br />tiem of Ehe proceeds ea u equal w that proportion which the snwunt. of the aunts sec;urtsi by this 3ortgage 3mme-
<br />ditatety prier to tip taste of taking bears to the fair trarlcet value of the Propert} immediately prior to the date of
<br />taking, ~ bad of the paeeeda paid to Borrower.
<br />It ihG Ply is abandoned by $orraveer ar if offer notice try Lender to Borrower that the rondemror offer.
<br />to makR an ateard ar settle a claim for damages, Borrower fails to respond to Lender within :iU clays ai the date
<br />of sueli notice, Leader is authorised to catlx:ct and aplily the pt•oct~de at I.ender'e option citHrr to restoration or
<br />r~air n=s *~^ Pr•~p ~•f, r t3 v ;v ~a'ms ~C-"sir~~ ~ tni6 : i artgage.
<br />L3nlets Lender and Borrower atherwi~ agree in writing, any such application o{ proceeds to l~riuripat .hall
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