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If under paragraph IS hereof the Property is sold or the Propert} is otherwise acquired by Leutier. Lender
<br />shall apply, no later than immediately prior to rho sale of the Property or its acquisition by Lender, any Funds
<br />held by Lender at. the time of application as a creriit against the sores secured bt• thisl'lortgage.
<br />3. Application of Payments. Unl-ess applicable Into provides otherwise, all payments received by Lender
<br />^•~der the 'Vote and paragraphs I and 2 hereof shall be applied by Lender fiat. in pscment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, rhea to interest payable on the Vote and on Fuhsre Advances, ii
<br />any, and then-tn i-he principal of the dote and to the prine-ipal o: Ruture Ad.-anres, if any.
<br />4. Chargers Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a pricrity over this Mortgage, and ground rents, if any, at Lender's
<br />,r,,,i option in the manner provided ender paragraph 2 hereof or b}• Barrotcer making payment, when due, directly to
<br />~ the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,
<br />~,,,t and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evi-
<br />~ descing such payments. Borrower cull promptly discharge any lien which has priority over this Mortgage; pro-
<br />'~ vided, that Boroaer shall ,-3a+, be r<quiretf to ::iseharge any such lien so long as Borrower shall agree in writing to
<br />~ the payment of the obligation secured b}• such lien in a manner acceptable m I:ender. ar shall in good faith contest
<br />e such lien by, or defend enforcement of such lien in, ]egal proceedings wiiic}t operate to prevent the enforcement of
<br />( the lien or farfeiture of the Property or any part thereof-
<br />d1 5. Hazard Insurance. Borrower shall keep the improvements Wort- existing a hereafter erected on the Prop-
<br />erty insured against}ors by fire, hazards included within the term 'extended cocerage",and such other hazards as
<br />Lender may require and in such amounts and for such periods as Lender mar t•equire; provided, that Lender shall
<br />' not require ihat the amount, of such coverage exceed that amomtt of cocerage required to pay the sums seeured'by
<br />this ?Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonsbh- withheld. All premiums on insurance policies shall be paid
<br />st Lender's option in the manner provided under paragrapl: ° 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 procure insurance on the improvements, pay the premiums and such stun shall become
<br />immedia#ely due and payable with interest at the rail set forth in said note until paid and shall be
<br />:awl by this A,in;f o9 FWha-e ht* R~,rm,•..r t^ ....*::piy ,. ay, at aption of T....und@r, .,n sLttute a default
<br />under the terms of this Mortgage.
<br />All insurance polices and renewals t}sereof shall be In form acceptable to bender and shall include a standard
<br />mortgage clause in favor of and in form sceeptsble to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall prompth• furnish to Lender all renen-al notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower sha}1 glee prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender sad Borrower otherwise agree in ~t-riting, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged. prorided such restoration or repair is economically feasible and the security of
<br />this ~4ortgage is not thereby impaired. I*' such restoration or repair is not economically feasible or if the security
<br />of Lhis lortgage would be impaired, the insurance proceeds shall he applied to the sums secured by tl-iis A4ortgage,
<br />with tLe excess, if any, paid to Borrower. If the Property is abandoned by Borrower or ii Borrower fails to respond
<br />to Lender within 30 days after notice b}• Lender to Borrower that the insurance carrier offers to settle a claim for
<br />Sorurnn~ benefits, Lender is authorized to collect and apph• the insurance proceeds of Lender's option either to
<br />restoration or repair of the Property or io the sums secured by this Mortgage.
<br />IInless Lender and Borrower otherwise agree in wriiing, anc such appliestion of proceeds to principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, sit right. wile and interest of Borrower in
<br />and to any insurance policies and in and to the proceed, thereof do the extent of the sum= secured by ibis Sort-
<br />gage immediately prior to such sale or arquisitiont resulting tram damage to the Yraperiy prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation cad Maintenmsce of Property: Leaseholds; Coadosniaitsms. Borrower shall keep the Prop-
<br />erty in gaud repaiz and stir}1 rot pemtit ar commit waste, impairment, ar cietenorstion of the Property and shall
<br />comply with the provisions of anc lease, if this \Iongage is on s leaselsoid. if this \lortgage is on a condominium
<br />unit, Borrower shaft perform ail of Borrower's obligations under the rice}arstion of condominium or master deed,
<br />the by-lams and regulations of the condominium project and cos;stituert documenis.
<br />7. Protection of Lendei s Security. if Borrower fsi}s to perforns the eoversnts and agreements contained in
<br />thin -Mortgage, or ii any aetian or proceeding is commenced tchiclr materially slicers Lender ~ interest in the Prop-
<br />erty, including, but not limited to, eminent domain. snsolcency. cafe enforcement, or arrangements or proceed-
<br />ings inrol~:ng a bankrupt or decedent, then Lender at Lender's option. open notice to Borrower, may make such
<br />appearances, disburse sorb sums and take such action ns is necessan- to profec? Lender's interest, including, but
<br />not limited to, disbu,*sement of reasonable attorrev"s lees and entn• upon the Propert*,• #o make repairs. Any
<br />amounts disbursed by Lender pursusnt to this paragraph ; , with interest thereon, shall become additional indebt-
<br />edaes of Borrower secured icy thislfortgage. Unless Borrower and Lander agree to other terms of payment, such
<br />amounts shall be payable upon notice from bender to Borrower requesting payment thereof, and shall bear inter-
<br />est #t•~ the date of distrur°,ement at the rate stated in the tiote unless payment of interest at such rate would be
<br />contrary to app}feeble laa•, in which event such amount-s shall bear inte*esi at the highest rate permissible by
<br />applicable IaR'. `+iothing contained in this }rsragrsph "shall require Lender to incur cry expense or do any act
<br />heretmder.
<br />S. Iaspsetios;. Lender rear make or eau_~e to tx• sriridc reasonahk entries upon and inspections of the Prop-
<br />erty, provided that Lendez shall give Boraw•er notice }trios to any :ucb in-pection specifying reasonable cause
<br />trse3efor related is Letder's intrresri~ in the Properly,
<br />9. Cam. 1'he proceeds of any award or claim for damages, direct nr consequential, in connection
<br />wills anc condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of t•ondemsta-
<br />Li~, are hereby assigned and shall lee paid io iender.
<br />In trite event of a total taking of the Property, the }rroceeds shall be applied to the suns. secured by this \9ort-
<br />gage, with tlie-rzce.~, if any, paid to $arroR•er. In the event of a partial taking of the Property, unless Borrower
<br />and IzndEr atEtanvipee agree in a-riting, ti^sere shall be applied to the razes secured by this Sortgage such propor-
<br />tion of-the proceeds ss is equal zo that propoRion which the amount of thr sums secured by this 3lortgage imme-
<br />-diakely prior to the date of taking bears to the fair market. value of tlse Property immediately prior to the date of
<br />taking, with-.the balatiee of the proceeds paid to Borrower.
<br />if the Property is abandoned by Borrower or if after notice by Lender to Borroter that the condemnor offers
<br />W make ors award or settle a claim for damages, Borrower fails to respond to Lender within 30 days c the date
<br />of such native, Letsder is authorised to collect and apply the lroceeds at Lender's option citlser to restoration or
<br />repair of the Property or to the surszs secured by ibis Mortuaee.
<br />Unless Lender and Harrower otherwise agree in writing, any such application of proceeds to principal shall
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