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<br />If under paragraph 18 hereof the Yropert}• is sold or the Property ie otherwise acquired br T.ender. Lender
<br />shall apply, no later than imrediately prior to the sale of the Yrvtpcrty or its acquisition by Leader. arc H'unds
<br />held by Lender at the time of application as a credit against the sous secured by thi= Martgsge.
<br />s,~ 3. Application of Payments. Unless applicable law provides otherwise, all payments received Ivy Lender
<br />".,~ under the Note and paragraphs I and 2 hereof shall he applied by- Lender first in payment of amounts parable to
<br />~ Lender by Borrower under paragraph 2 hereof, then to interest payable on the Aoie and on Future Adcsnces, if
<br />~j any, and then to the principal of the Notc anal to the principal of Future .'~drances, if any.
<br />O 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />Q arable to the Property which may attain n priority over this Mortgage, and ground rents, if any, at Lender
<br />option in the manner provided under paragrsph 2 hereof or by Borrower staking payment, when due, directly to
<br />~ the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due tinder this paragraph,
<br />i\ and in the event. Borrower shall make paymere directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower ;hall promptly discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such Len so long as Borrower shah agree in writing to
<br />the payment of the obligation secured by such lien in a mamter acceptable to Lender. 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 />the lien or forfeiture of the Property ar any part thereof.
<br />S. Hazard Iasurrmce. Borrower shall keep the improvements saw existing or hereafter erected on the Prop-
<br />erty- insured against loss by fire, hazards included withit: the term "extended coverage", and such other hazards as
<br />Lender ms}• require and in such amounts and for such I~eriods as I-ender may- require: provided, that Lettder shall
<br />not require that the amount of such coverage exceed that. amount of coverage required to pay the sums secured'by
<br />"this Mortgage.
<br />The insurance carrier providing the insurance. =hall be chosen b}• Borrower subject to approval by Lender;
<br />provided, that. such approval shall not be unreasonable withheld. All premiums on insurance policies shall 6e paid
<br />at Lender's option in the manner provider. under paragrsph 2 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 pmcure insurance on the improvements, pal• the premiums and such sum shall become
<br />immediately due and payable wtith interest at the rate set forth in said note until paid and shall be
<br />secured by [iris aiorigage. raiiure be Borrower to comply may, ai. option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance policies and renen•sls thereof shall be in ions acceptable to bender and shall include a standard
<br />mortgage clause in favor of and is iornt acet:ptabic to Lender. Lender shall pace the right to hold the policies and
<br />renewals thereof, and Borma•er shall promptly furnish to Lender all renewal notices and all receipts aF paid pre-
<br />miums. In the ei•ent of loss, Borrower shall pile prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof ni loss if not made promptir b}• Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or
<br />repair of the Pmpem- damaged, provided such re=toration or repair is ec•onomirtlh- feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such restoration w• repair is not economicaih• feasible or ii the security
<br />of this _`.Iortgage would be impaired. *.he insurance proceeds shall tic applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. It rite Property is abandoned by Borrower or if Borrower fails to respond
<br />to It_~nder within 30 days liter I:o*.ice by Lender to Borrower drat the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apph• dtc insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured lie this >longage.
<br />Unless Lender and Borrower otherwise agree in writing, any- such application of proceeds to principal shall
<br />not extend ar postpone the due date of the monthh• installments referred to in naragrsphs 1 and ~ hereof or change
<br />the amo=.ult of such installments.
<br />r_f 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 anr, to dte urviceeds thereat ~ to the extent of the sums secured be ibis ~Iort-
<br />gage immediately prior to such sale ar acquisitionr resuhing from damage to the Pronertc prior to the sale or
<br />acquisition shall pas; to Lender.
<br />6. Preservation sad Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Pmp-
<br />erty in good repair and shall sat Itennit, or camtnit waste. impairment. or deteriaratiat: ai the Property and shall
<br />comply with the provisions o; sm• ?ease. if this \lartgage is on a leasehold. Ii this lortgage is or. a condominium
<br />unit, Borrower shall perform all of Borrower's obligations tinder the declaration of condominium ar master deed,
<br />the by-laws and regulations of fhe condomir.iun: }~rajec•*. and constituent documents.
<br />7. Proteetiea of Lender's Security. If Borrower falls to perfonu the cm•ensnis and agreements contained in
<br />this Mortgage, or if any sctior. or proceeding is commenced which materially- atiects Lender'_ interest in the Prop-
<br />erty, including, but not limited to, ennnem dornsiu. n„oh•enc•e. eerie enforcement, ur arrangements or proceed-
<br />ings involving a bankrupt or decedent, *.hett Lender at l.enner s opuori, upon notice to Borrower, may make such
<br />agpearancer, disburse such _•~ras and take sacl: action :ts . necessan- to protect Len:iers interest. including, but
<br />not limited to, disbur_-ament of reasonable attorney's fees and ertn upon t h2 Pro},ere to make rrepairs. Any
<br />amounts disbursed by Lender puruant to ibis paragrsph :. critlt interest thereon, shall became additional indebt-
<br />edness of Borrower secured 1>}• th \iortgage. Ethical Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting pavment thereof, and shall bear inter-
<br />est from the date of disbursement at the rate stated in the tiote unless pavment of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall Bear interest at the highest rate permissible by
<br />aggiicable law. Nadting cortaineci in this {*sregrsph ;shall require Lender to incur any expense or do any act
<br />hereunder-
<br />. Inspection. i,ender mar make or cause to he made reasonalrlc entries upon and inspections of the Prop-
<br />erty, pravideti that Lender shall gi;•e Borrower natic» {+rie!• to any -uc!i insper*.ian :-pecifyisg reasonable cause
<br />therefor related to Lender's interest. in the Property.
<br />9. Condemnation The proceeds of any award ar claim for damages, direct or consequential, in connection
<br />with any condemnation or ocher taking of the Property, or part thereof, ar for canvevanee in lieu of condemna-
<br />tion, era hereby assigned and shall be paid to Lender.
<br />In 'the event of a total taking of the Property, ti,e proceeds .hall be applied to the sums secured by this Mort-
<br />gage, a•itlr the excESS, if any, paid *.o $arraw•er. In flee event of a partial taking of the Property, unless Borrower
<br />and Lender otlter'a~iae-agree in writing. there shall be applied to rite sums secured be this \lortgage such propor-
<br />tion of the proceeds as is equal to that proportion which tits amount of the sums secured by this lortgage imme-
<br />diately prior to the date of faking beats to tl:e fair market value of the Property immediately prior to the date of
<br />inking, with the balance of the proceeds paid to Borrower.
<br />If-the Property is aban$ane;: by Borrower or ii after notice by Lender to Borrower that the condemnr,r offers
<br />to make sn aw-ard or settle a claim for damages, Borrower fails to respond to Lender within 30 bays ai the date
<br />of loop notice, Lender is authorized to collect and apply the proceeds at Lender's option ciiber to restoratio^ m•
<br />repair of the Property or to the snrns secured by this 3lartgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ;hall
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