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If under paragraph I8 hereof rice Property is sold m- the Property is otherwise acquired by 7.ender, bender
<br />,hall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. am• funds
<br />held by Lender at the time of application as a credit against the stuns secw•ed by ti~tis Mortgage.
<br />3. Application of Payments. Unless applicable laa provides otherwise, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall he applied by Lender f}rat in payment of amounts payable to
<br />?~ Lender by Borrower under paragraph 2 hereof, titer to interest pai~shle on the \ete and on Future Advances, ii
<br />;Q any, and then to the principal of the Note and to the principal of Future Advances, if arc.
<br />~++ 4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attrib-
<br />~ utable to the Property which may attain x priority over this Mortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or h}• Borrower tttaking pscment, +vhen due, directly to
<br />~ the payee thereof. Borrower shall promptly t'urnish to Lender all notices of amounts due tinder tbis paragraph,
<br />~ and in the event Borrawer shall make payn;ent directly. Borrower shall promptly furnish to Lender receipts evi-
<br />denting such payments. Borrower shall promptly discharge an}- lien which has priority over this \[ortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge ar,}- such Len 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 lieu in, Legal proceedings which operate to prevent the enforcement of
<br />the lien or forfeiture of the Property m any part thereof.
<br />5. Hazard Insurance. Borrower shall l:cep fire int}pavements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire; hazards ireluded ~: ititi:t the term `extended coverage", and such other hazards as
<br />Lender may require and in such amounts arci for sucl: Aerials as Lender mac require; provided, that Lender sha}I
<br />not require that. the amount of such coverage exceed that autount of coverage required to pay the sums secured by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen be Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonabl• n•ithhetd- _111 premiums on insurance policies shall be paid
<br />ai Lenders option in the manner provided tinder paragraph t~ hereot" o~ in• Borrower staking 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 improvementns, pay the premiums and such sum shall become
<br />immediately due and payable with interest at the rate set 'rorth in said Hots until paid and shall be
<br />secured by this 'Mortgage. Failure by Borrower to compl}• mac, at option of Lender, constitute a default
<br />under the terms of this b4ortgage.
<br />Alt insurance }wlicies and renewals thereoi shall he in ions scceptsnk to Lcn~icr and shall include a standard
<br />mortgage clause in favor of and in fomt seceptable to Lender. Lender shall hs+c th~• rig}rt to hold the policies and
<br />renewals thereof, and Borrower shall promptl}- furnisi: to Louder all renewal notices and all receipts of paid pre-
<br />mituns- In the event of lass, Borrower shall gic-e prompt ^otice to rite insurance currier and Lender, and Lender
<br />may make proof of loss if not. made promptly be Borrow: er.
<br />Unless Lender and Borrower othern•ise agree in n'ritin_, iustcr:u:ce proeevits shall be applied to restoration or
<br />repair of the Property damaged, provided such restoratton or repair i<. ~conamie.+lic fessibce anti the security of
<br />this 3lortgage is not thereby impaired. Ii such restot:rt:on or repair is not eeorotnical}c feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds si,all be a}?piie~t to the runts secured by this \lortgage,
<br />with the exce~, it an}°, paid to Borrower- If rite Yropet2}- is abandoned in- Borron er ar it Borrower fails to respond
<br />to Lender within 30 days after notice by Leader to Borrower that the insurance carrier offer to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either ±o
<br />restoration or repair of the Property or to the sums secured by this \lortgage.
<br />Unless Lender and Borrotcer othencise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due date of the nronthl- insta}Imeats referred to in paragraphs 1 anti 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, all right, title snit itaerast of Burrower in
<br />srd to aat insurance policies and in and to the proceeds thereoi Ito the extent of the sums secured by ibis ~iort-
<br />gage immediately prior to such sale or aequi=it-ion i resuhing from damage to cite Yropem- prior to the sale or
<br />acquisition shall pass to Lender.
<br />& Preservation sad Maintea~ce of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shsll not permit or commit waste, impaimtent. or deterioration of the Property and shall
<br />comply with the provisions of any lease, ii this _lortgage is on a leasehold- If t}cis Mortgage is an a condominium
<br />unit, Borrower shall perfornt ail of Borroner"; obii~atiors under fhe declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium protect and constituent documents.
<br />7. Protection of Lender's Security. Ii Borrower fails to perform the covenants and agreements contained in
<br />this Mortgage, or if an}• action or proceeding is camnteneed which ntaterialh• affects Lenders interest in the Prop-
<br />erty; including, but rat 1_imited to, eminent domain. iusal envy, code enforcement, or arrangement or proceed-
<br />ings involving a bankrupt or decedent, then Lender at lender's option. upon notice to Borrower, may make such
<br />appearances, disburse such sums and take sueit action as is necessar}• to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's tees and entry upon the Property io make repairs. Any
<br />amp+~ta disbursed by Lender pursuan*. *.e this paragraph ;, +cith interest thereon, shall become additional indebt-
<br />edness of Borrower secured b}- this \lortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts sha}} be paysb}e upon notice from Lender 20 Borrower requesting payment thereof, and shall bear inter-
<br />est Pram tkte date of disbursement at the rate stated in the \ote unless payment of interest at such rate would be
<br />contrary to applicable law-, in w}tich event such amounts shall bear intemst at the highest rate permissible by
<br />aopiicab}e fats-. Nothing contained in this paragraph 7 :hail require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Fnspeetion Lender may tttske or cause to he trade reasonable entries upon and inspections of the Prop-
<br />erty, provided That Lender shall give Borrower notice lcrios• to art}• such inspection spet•itying reasonable cause
<br />therefor related to Lender's ]merest in the Property.
<br />9. Condemnation The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Yropert}-. or 1+art thereoi. or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to I.ender-
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this V1ort-
<br />gage, with the excess, if any, paid to Borrawer. In the event of a partial taking of the Prapcny, unless Borrower
<br />and bender otherwise agree in writing, there shall be applied to the sums secured by this Mortgage such propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />diately prior to the date of taking hears io the fair market value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if after notice 6y Lender to Borrower that the condemnor offers
<br />to make an award ar settle a e}sim for damages, Borro++•er fails t~ .espord to Lender n•ithin 30 davs of the date
<br />of such notice, Lender is sutttorized to collect and ap}tIy the proceeds at Lender's option either to restoration or
<br />repair of the Property or W the sums secured by this \lortgage.
<br />Unless Lender and Borrawer other-wise an_ee '-- reciting, arty such application of precceds to principal shall
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