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<br />If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately prior ko tlrc sale of the Yroper•ty or its acquisition by Lender. any Funds
<br />held by Lender at the time of application as a credit against the sums secured by this Vlortgagc.
<br />3. Application of Payments. Unless applicable law provides otherwise, a1! pa}anents received t>y Lender
<br />under the DfiotE and paragraphs 1 and 2 hereof shall he applied by Lenricr first. in payment of amounts payable to
<br />Lender by Borrower under Irsragraph 2 hereof, then to interest payable on the -Rote and an Future Adt•anees, if
<br />any, and rhea to the principal of the \~ote and to the principal of Future Advances, if an}•.
<br />4, Charges; Liens. Borrower shat? lraw all taxes, assessments and other cha des, fines and impositions attrib-
<br />ufable to the Property which may attain a priority aver fhis 3ortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directly to
<br />the payee thereof. Barrower sltail promptly furnish to Lender all notices ot" araounts due under this paragraph,
<br />snd in the evert Borrower shall make psXment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien cahich has priority over this \'Iortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long ss Borrower shall agree in writing to
<br />the payment of the abiigatiou secured lay sucl, lien in :t manner acceptable to bender, or shall 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 />.he lien or forfeiture of the Property or any part thereof.
<br />S. Hurd Iastumace. Borrower shall keep the improvements non• existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may require snd in such amounts and for such periods as bender may require; provided, that Lender shall
<br />not require that the amount of such coverage exceed that. amouni of coverage required to pay the sums secured'by
<br />this 1ortgage.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject to approval by Tender;
<br />provided, that such approval shall not be urxreasonably withheld. All premiums on insurance policies shall be paid
<br />at Leader's option in the manner provided under paragraph '? hereof or by Borrawer making pa}•rnent, when due,
<br />directly to the insurance carrier.
<br />In the event any policy is not renewed on cr before ten days of its expiration, the Lender, to protect
<br />its interest, array 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 be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />tinder the terms of this MortEa>;e.
<br />911 insurance policies and renewals thereof shall be in toms acceptable io Lender and shall include a standard
<br />mortgage clause in favor of and in fornz acceptable t~ Lender. Lender shall hati•e the. right to hold the policies and
<br />renewals thereof, and Borrower shall prompty famish to Lender all renewal notices sad all receipts of paid nre-
<br />miums. In the event of loss, Borrower shall giwe prompt nonce to the insurance carrier and Lender, and Lender
<br />may make grovf of loss if not made pnurxptlc b}• Borrower.
<br />Unless Lender and Borrower otherwise agree in writirg, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, prodded such resmration or repair i. ecorocnicaiiy feasible and the security of
<br />this Itfortgage is not thereby impaired. If such restoration or repair is not economicall}• feasible or if the securiiy
<br />of ~ Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. Ii the Pro}xrty is abandoned hp Borrower or if Borrower faits to respond
<br />to Lender within 30 da}-s after notice b}• Lender to Borrower that the insurance carrier offers to settle a claim for
<br />iaaurane:e benefits, Lender is authorized to caltect and apply the instrance proceeds at Lender's option either to
<br />restarati~ or r~sir of the Propertp or to the arms secured by this \Iattgage.
<br />Unless bender and Borrower oiherwise agree in writing, env sue3s application of proceeds to principal shall
<br />t~ extend or postpone the due date of the monthly installments referred #o in paragraphs I and 2 hereof or change
<br />the aaeourrt of such installments.
<br />If tinder paragraph IS hereof the Property is acquired br Lender, nit right, title snd interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof r to the extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisition r resulting from damage to the Property prior to the sale or
<br />acgtriation shall pass to Lender_
<br />fL P~rvation sad Maiatea®ce of Property: Lecaslsolda; Coadomiait:ms. Borrower shall keep the Prop-
<br />ertg in good repair and shall not permit nr commit snare, impai.^.txent. or deteriorst.ion ai the Property snd shall
<br />e~piy with the provis:~r~ of any Jesse, ii this \Iartgage i_- ~ leaselrold_ If this \iartgsge is on a condominium
<br />unit, $orrower shall perform all of Borrower`; oblige=ions under the declaration of condominium or master deed,
<br />the by-laws and mgulations of th? cotxdvminiun: srrojeet and constituent documents.
<br />7. Pro~elim of Lender's Security. If Borrow-er lolls to lreriomx the coc•enants and agreements contained in
<br />this ?tfortgage; or if any action oz proceeding is commenced whi,-h tnszerially affect Lender's interest in the Prop-
<br />erty, incluuding, but not limited to, eminent dorsals. inw)rencv. code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent. then Lender at Lender; option, upon notice to Borrower, may make such
<br />appesrant~, disburse such sums and take such action ss is neczcan• to protect Lender's interest, including, but
<br />toot limited to, diaburs®cnt of reasonable attomev"s fee` snd entr}• upon the Property to make repairs. Any
<br />ssuaunta disbursed by Leader pursuani #a this paragraph "r, wrth interest thereon, shall become additional indebt-
<br />ed of Borrower secured by this lfattgsge. Unless Borrower snd Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Bormu-er requesting payment Thereof, and shall bear inter-
<br />est from the date of disbursement at the rate stated in the \ote unless payment of interest at such rate would be
<br />~t''~3` to 3pplirable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in flue paragraph 7 sha!1 require Lender to incur any expense or do any act
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<br />ff. Lender may make or cause to lm rnadc reasonable entrees upon and inspections of the Prop-
<br />erty, provided that Leader shall give Borro,rrer ratite prior to arty sorb inspection specifying reasonable cause
<br />therefor related to header's i~.erest in the Props y.
<br />~ ~. Tice ptveseds of say award yr claim for damages, direct ar consequential, in connection
<br />with arty eontlemnat8on or other taking of the P»opert}•, or part thereof, or for conveyance in lieu of eondemna-
<br />-, are her~ay a~igned and aha11 be paid to Ltmder_
<br />Ira the event of a total taking ai the Property, the proceeds shall be applied to the sums secured by this Mart-
<br />, with thaenc~8s; ~ any, paid to $ozrower_ in the event of a partial takittg of the P:operty, unless Borrower
<br />sad i,eadea otfirawiae sgFec m wnttng, there shall be app9i+<xl tv the -sums secured by ttsis \iortgage each propor-
<br />~ tproeeetiass is egt~l &t mat proporiiori-which the amount of the sums secured by this Mortgage imme-
<br />tliatelp grtaz ttltbie date of ta$itt~ bears to floe #air market value of tlse Propertp immediately prior to the date of
<br />talEits$, frith the. balance of#be proceeds paid to Barrower.
<br />If:tl~ Prenerty;$ abandoned by Boaawer or if after notice 6y Lender to Borrower Shat the condemnor offers
<br />to makg aaz attta[d or settle a eiaiar for damages,-Barrower fails to respond to Lender within 30 days of the date
<br />of suclitroiiee, Lender i8 suthoriaed to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the PinperEy or to the sums secured by tlxis Jortgage.
<br />finless Lender-and BorrnvRes otihertviae agree in writing, any such application of proceeds to principal shall
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