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<br />If under paragraph 18 hereof the Property is sold m~ the I'ropertc is othern~ise ucyuirt>d t,c Leader, Lender
<br />shall apply, no later than irnmochately prior to the ..<alo of the Property or its acrluisitio^ by Leader, nnc Funds
<br />held by Lender ut-the time of application as a credit skein>t the sows ~ccured bc• this Martgagr•.
<br />3. Application of Payments. Unless zpltlicablc luu~ provie}es otherwise, all paynreuh receiecd by Lender
<br />under the Note and paragraphs 1 and i hereof sharll be s}tplied 6c Lender tirc_t in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, rhea to imcrest payable on the Ao{e and on Future .ldvances~ if
<br />say, and then io the principal of the tiatc and to rho principal ut Future 9d•, ancee, it any.
<br />4. Charges; Liens. Borrower shall pay nll taxes. assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priorin• over this Mortgage, and ground rents, ii any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or b}- Borrower making payment, when due. directly to
<br />the payee thereof. Borrower shall prompth~ furnish to Lender a!I notices of amounts due [order this paragraph,
<br />and in the event Borrower shall make psymeut directly. Borrower shall prontptl}- Tarnish to Lender receipts evS-
<br />dencing such payments. Borrower shall promltth- discharge any lie[: which has priority over this Mortgage; pro-
<br />vided, that Borroner shall not be required to discharge am surli lien 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 goad faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings which operttc to prevent the enforcement of
<br />the lien or torfeiture of the Property m• any parr thcreoi.
<br />5. Hazard insurance. Borrower s}asll keep rile iu;proveatents new existing or hereafter erected on the Prop-
<br />erty insured against loss b}• fire, hazards included within the term ''ex[ended coverage". and such other hazards as
<br />Lender may require and in suelr ;unomrts and for :ash periods ;r- ].ender mac require: provided, that Lender shall
<br />not require That the amount of such coverage exceed th:tt amount ai cm erage required to pas the sums seeured'by
<br />this Jortgage.
<br />The insurance carrier 1?roviding the insurance shall be chaser: in Borrower ,object to approval by Lender;
<br />provided, that such approval shall not be unreasonabic withheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or he Borrower making naymert., 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, pa}• 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 />under the Terms of ibis ivfartKuge.
<br />All insurance policies and renewals thcreoi shall be in ionu acceptable to Lender and shall incladc a standard
<br />mortgage clause in favor of and in form acceptable to Under. Lender shall have the nigh[ to hold the policies and
<br />renewals thereof, and Borrower shalt prompt)}• furnish to Lender all renewal notices acid ail receipts of paid pre-
<br />miums. In the event of loss, Borrower shall giro prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made, promptly ln• Borrower.
<br />Unless Lender snd Borrower othencise agree in writing, insurance proceed: shall 6e applied to restoration or
<br />repair of the Property damaged, provided such restoration or repsir is economirrih- iessible and the security of
<br />this ?lfortgage is not thereb}- impaired. If such restarutiou or repsir is not economically feasible or it the securit}•
<br />of this Mortgage would be impaired, the insurance proceeds shall Ire applied to the sums secured by this Mortgage.
<br />with the excess, it any, paid to Borrower. ti rite Properly is abandoned h}- Borrow er or it Harrower fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insrrance 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 lire sums secured be this Mortgage.
<br />Unless Lender and Horron•er othernise agree in n•riting, 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 amount of sash installments.
<br />If tinder paragraph IS hereof the Property is acouired by Lender. ail right, tiiie snd interest of Borrower in
<br />snd to any insurance noiicies and in and to the proceeds thereof tto Tire extent of the stuns secured by this ~fort-
<br />gage immediately prior to suet: sale or aequisi[ioni resulting from damage to thr Yropertc prim• to the sale or
<br />acquisition shall pass to Lender.
<br />6. preservation sad Maintenance of Property: Leaseholds: Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall net permit or commit waste, impainnc-nt, ar deterioration of the Property and shall
<br />comp)}- with the provisions of any leas:, if this _lortgage is or, a leasehold. If This Mortgage is an a condominium
<br />unit, Borrower shall periornr all of Borrower's obligations under tt:e declaration of condominium or master deed,
<br />the by-laws and regulatiars of the condominium project and c•onstiwent documents.
<br />7. Protection of Lendei s Seeursty. If Borrower Tails to perform the covenant, and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain- insohenc}•, code eniorcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, epos notice to Borrower, may make such
<br />appearances, disburse SUCIf Sums snd take such action. as is necessan- to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney`s ices and entn• upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this psragr•aph i, crith interest thereon.. shall become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment. such
<br />amounts shall be payable upon notice from Lender to Borron er requesting pa}•ment thereof, and shall bear inter-
<br />est iron the date of disbursement at the rate stated in the 'rote unless payment of inierest. at such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest rate pet•missibie by
<br />applicable law. Nothing contained in this paragraph shall require Lender to incur an}• expense or do any act
<br />hereunder.
<br />8. Iaspeetioa. Lender :nnc make ar cause to be tirade reasanahle entries upon and inspections of %he Prop-
<br />erty, provided that Lender shall give Borrower neticc• la•ior to anc -ueL ins}rertion s}teeifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9, C®demnation. The proceeds of any swan) or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property. m• part thereot, m• for tronvecance in lieu ot• condemna-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the }rroteetis shall be apphtal to the sums secured by this tiRort-
<br />gage, w~ttr the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and bender otherwise agree in A-riting, there shall be applied to ibe sums secured by this :Mortgage such propor-
<br />tiion 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 bears to the fair markei value ai the Property immediately prior to the date of
<br />taking, with the balance of the proerzds paid to Borrower.
<br />If the Property is abandoned by Borrower or i f after notice by Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim for damages, Borrower fails to respond to Lender within 3Q days ai the date
<br />of such notice, Lender is authorized to collect and apply the proceeds at Lender's option either to restorat-ion or
<br />repair of the Property or to the sums secured by this \fortgsge.
<br />Unless Lender and Borrower othencise agree in writing, any such application of proceeds to principal shall
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