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If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender. lender
<br />shall apply, no later than immediately prior to the sole of the Yrol'~ertc or iks requisition by I•ender, any Funds
<br />held by Lender at the time ot` application as a r•redit against the sums secured 6y this Mortgage.
<br />3. Application of Payments. Unless applicable Ian- provides tithertvise, all payments received by Lender
<br />under the Note and paragraph, 1 and 2 hereof shall he applied by I•cnder first in payment of amounts payable io
<br />Lender by Borrower under paragraph 2 hereof, rhea to interest payable on the Note and on Futm~c Advances, if
<br />any, and Lhen to the principal of the Note and to the principal of h-afore advances, if any.
<br />4. Charges; Liens. Borrower shall pat all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priorit}~ over this Mortgage, snd ground rents. if any, at Lender's
<br />option in the manner provided under paragraph 3 hereof or by Borrower making payment, when due, drrectly to
<br />~ the payee thereof. Borrower shall promptly furnish to lender all notices of amounts due under this paragraph,
<br />~,,,i arid in the event Borratver shall make payment directly. Barrotver shall promptly furnish to Lender receipts evi-
<br />+--t dancing such payments. Rorrotver shall promp:h• discharge any lien which has priority over this Mortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge any such ]fen so Long as Borrower shall agree in writing to
<br />~ the payment of the obligation secured by-such lien in a manner acceptable to Lender, or shall in good faith contest
<br />~ such lien by, or defend enforcement of such lien in, legal proceeriings which operate to prevent. the enforcement of
<br />the fien or forfeiture of the Property or any part Thereof.
<br />~ 5. Haz:>ad lnsurnnee. Borrower s}tall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against lass by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may inquire and in such amounts and for such periods ss Lender may reauire ; provided, that Lender shall
<br />not require that the amount of such coverage exceed that smount ot" coverage required to pay the sums secured'by
<br />this ivfortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower suhiect to approval by Lender;
<br />pmv ided, that such approval shall not be unreasonably n-ithheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph Z hereof or by Borrower making payment, when due,
<br />directly to Lhe 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, z:ray pmcur'e 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 />sectrred by this Mortgage. Failure by Borrower to comply may, at option of bender, constitute a default
<br />under the terms of this Mortgage. •
<br />Ali insurance policies and renewals thereof shall he in form accepnri>;e *.u Lender attd shnil include a standard
<br />mortgage clause in favor of and in form secepmble to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, snd Borrower shall prompty furtrish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall glee pretnpt notice to the insurance carrier and Ixnder, and Lender
<br />may make proof of Ictas ii not. made promptly by Borrower.
<br />Unless Lender and Borrower othem-ise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property dsrnsged, provided such resmration or repair is eronontiralh- icasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is nor economically feasible or if the security
<br />of this Sortgage would be impaired, the insurance proceeds shall he applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid io Borrower. If fire Property is abandoned hr Borrower or ii Borrower fails to respond
<br />to Letrder within 3[! days sitar notice by Lender to Borrower that t~ ~ insurance carrier offers to settle a claim for
<br />insurance benefits; Lender is authorized to collect and apply the insurance proceeds at 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 1 and 2 hereof or change
<br />the smount of such instsihnents.
<br />If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and #o the proceeds thereof 1 to the extent of the sum; secured by this 3lort-
<br />gage immediately prior to such sale or aequisitioni resulting from damage to the Property prior to the sale or
<br />acquisition shall pas:. to Lender.
<br />& Preaervaiion and Maintenance of Property: Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty irr good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br />comply with the provisions of any !ease, if this \iortgage is on a leasehold. IC this Mortgage is on s condominium
<br />trait, Borrower sh.:ll perfornr all of Borrower": ohiigations under the declarsr_ian of condominium nr master deed.
<br />the by-laws and regtila#ions of the condominium protect and constituent documents.
<br />7. Protection of Lendei s Security. Ii Bormtc-er fail: to periornr the covenants and agreements contained in
<br />this 1•fortgage, or if am action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at I-ender's option, opal notice to Borrower, may make such
<br />appearances, disburse such stops and take such action as is raressarc to protect Lender's interest, including, but
<br />not limited te, dibursement of reasonable attorney's fees 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 />edness of Borrower secured by Lhis \Sartgage_ Unless Borrower and Lender agree to other terns of payment, such
<br />amotrnts shall be payable upon notice front Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est cram the date of disbursement ai the rate stated in the Note unless payment of interest at such rate would be
<br />contrary to applicable law, in which event such smount,:, shall bear interest at the highest rate permissible by
<br />applicable law. Nothing container{ in this paragraph 7 shall require Lender to incur env expense or do any act
<br />irererrnder-
<br />$. ifmpsclioa. Lander may make or cause to he made reasonable entries upon and inspections of the Prop-
<br />erty, grovided that Lender-shall Bice Borrower notice prior to ant sorb inspeeLian :pacifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />& Ctn. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with asq condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br />~icm, are hersby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the ntoceeds shall be applied to the sums secured by this Mort-
<br />gage, with eseess,"if 8ny, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />arul Iieuder otherwise agree in writing, there shalt be applied to the sums secured by this :~forigage such propor-
<br />:Lion of-the proeeeris as is equal to that progort.ion'which the amount of the stuns secured by this Mortgage imme-
<br />dirtely Iz~or to the date of taking bears to the fair market value of Lhe Property immediately prior to the date of
<br />8, wlEh baleace of the pzt!ceerla paid Lo Borrower.
<br />If th8 Property is abandoned ky Bgrrrrwer or if aCier notice by Lender to Eorrower that the condemnor offers
<br />to make an-sward pr settle a claim for damages, Borrower fails to respond to Lender within 30 days of the date
<br />of aiich notice; Tender is atithori:ed to collect and apply the proceeds at Lender's option either to restoration or
<br />rep6sr of Lhe Pmperty ar to ttre aurrss assured by this _lortgage.
<br />Unless I.eQder acrd Borrower otherwise agree 'in writing, sny aue6 application of proceeds to principal shall
<br />"w'~ ~.,,a~:
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