|
If under paragraph ]8 hereof the iroperty is sold or the Property is atherwist• ucyuned by Lender. Lender
<br />shall apply, no later than inunediately prior to the sale of the Iroperty or ih acquisition by Lender. any h•uuds
<br />held by Lender st the time of application ss a credit against the suu,s secured ~,~• this A~Iortgage.
<br />3. Application of Payments. Unless :applicable law fn•ovides otherwise, all payments received by Lender
<br />under the Note and paragraphs :and 2 hereof shall he applied by bender first in payment of amteunts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the Sate and on Future Advances, if
<br />any, and then to the principal of the Nate and to the Irincipal of Future -•ldvances, if any.
<br />4. Charges; Liens. Borrower shall pay alt taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may a±tain a priority over this \'iortgage, and ground rents, ii any. at Lender's
<br />option in the rnanner provided under paragraph 'l hereof or by Borrower making payment., when due, directly to
<br />~ the payee thereof. $orrower shall promptly furnish to Lender all notices o1 amowtts due under this paragraph,
<br />~ snd in the event Borrower shall make payment directly, Borrower c{[all promptly furnish to Lender receipts eci-
<br />~, deneing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; prc-
<br />~ vided, that Borrower shall not le required to discharge any such lien sa long as Harrower shall agree in writing to
<br />~ the payment oY the obligation secured by such lien in :[ manner acceptable to Lender, or shall in good faith contest
<br />:7 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 Pmperty or am• part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements note existing or hereafter erected on the Prop-
<br />~ erty insured against. loss by fire, hazards included within the term "extended coverage".:md such outer hazards as
<br />i~ , Lendennay require and in such amomtts and for such periods ;as Lender mac require; provided, that Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage required to i;ay the sums serured'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 he um-easonabh- withheld. all premiums on insurance policies shall be paid
<br />st Lender's option in the manner provided under paragraph 3 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, 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 Bor_mwer to comply may, at option of Lender, constitute a default
<br />under the tern: of *h•s .^ °
<br />rtgas~
<br />All insurance policies and renewals tltereoi <hail he in loon a=-•centable ut Lender and shall include a standard
<br />mortgage clause in favor of snd in fou„ acceptable [o Under. lender shall bare the right to hold the polictes and
<br />renewals thereof, and Borrower shall prornpfiy furnish 'o Len,ier all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower sitali give }trompt notice [o the iusursnee carrier and Lender, and Lender
<br />may make proof of loss ii not. made promptly a}• Borrower.
<br />Unless Lender and Borrower othern-ise agree in writing, i7tsu[:tnee proceeds shall le applied to restoration or
<br />repair of the Propettc dar.7aged. provided such restoration or repair is economically ieasilie and the security of
<br />this Mortgage is not thereby impaired. Ii such restoration or repair is not eeonomicali}• feasible or if the security
<br />of this 3fortgage would be impaired. the insursr:ce proceeds shall 6e applied to the sums secured by this \iortgage,
<br />wifl7 the excess, if any, paid to Borrower. If rite Yropet-ty is abandoned ly Borrower or if Borrower 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 />insurance benefits, Lender is authorized to collect and spph• the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Berrow-er otherwise agree in writing, am• such app}icafiott of proceed.- to principal shall
<br />not extend or postpone the due date of the montlh• installments referred to in paragraphs I and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph i8 hereof the Property is acquired by bender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and to tle pn'ceeds thereof ito the extent of the ;urns sc-.ured lv this ~iort-
<br />gage immediately prior to such safe ar acquisitions resulting irony dau7agc- to rite Propett}- ;.:for to the sale or
<br />acgttisitaon shall pats to Lender.
<br />& Preservation and Maintenance of Property; Leaseholds. Condomiaiuras. Harrower shall keep the Prop-
<br />erty in good repair snd shall not permit or commit waste. impairntent. or detet•iorara: ui the Property and shall
<br />comply a-ittt the provisions ei an}- 1-ease. ii thi: llortgsge is ett a iessehaid I i t...s :1largsge is ar, s condominium
<br />unit, Borrower shall perform ail oT Borrower's obligatiors under rite decla:atiun of condominium or master deed,
<br />the by-laws and regulations. of the rondaminiuu: prajert snd constituent doct:meras.
<br />7. Protection of Lendei s Security. Ii Borrower ?ails to perform t}se covenant: snd agreements contained in
<br />this aortgage, or if any action or proceeding is commenced w hici; n7aterialiy sects I_er,der's interest in the Prop-
<br />erty, including, but not limited to, eminem domain. in-airrncr. e.aie rnfarce;rent. or arrangements or proceed-
<br />in~ involving a bankrupt or decedent, then Lender st 3.ernirr < opt7or:, upot: nonce to Borrower, may make such
<br />appearances, disburse such sums snd take such action as i= t:ece=sary to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's ices and entr• upon the Yropert~• to make repairs. Any
<br />amaunta disbursed lv Lender pu:~uant to this paragrspl7 i, w-h6 interest thereon, shall becorne additional indelt-
<br />edaess of Borrower secw°ed lv this \Iorigage. Unless Borrower snd Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />. eat from the date of disbursement at the rate stated in the Sore unless payment of interest at such rate would be
<br />contrary to applicable law, In which event =_uc}± amounts shall bear interest at the highest rate permissible by
<br />applicable law-. Nothing contained in this paragraph ;shall require Lender to incur any expense or do any act
<br />hereunder.
<br />& laspaetion. Lender may- make or cause to Ire made reasonable entries upon and in-cpertions of tle Prop-
<br />erty, provided that Lender shall give $orrow-er notice {rrim- ro am such inspection specifyine reasonable cause
<br />therefor related to Lender's interest in the Propert}•.
<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 Property, or pate thereof. or for ronvevance in lieu of condemna-
<br />tion, are hereby assigned attd shall be paid to Lender.
<br />In ttte event of a total taking of the Property, the proceeds shall be applied to the sum, secured by this \iort-
<br />gage, with the exee~, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall be applied to the sums secured by this \iortgage such propor-
<br />tion of the proceeds as is equal to that proportion which the amount o[ the sums secured by this Mortgage imme-
<br />diatzly prior to the date of taking bears to the fair market value of the Propetty immediateh lrrior to the date of
<br />taking, with rife balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or ii after notice by Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim .`sir damages, $orrower fails to respond to I_endcr within 30 does of the date
<br />of sucl notice, Lender is authorized to collect and apply the proceeds at I_ender~ apzion cnher to restoration or
<br />__. ... *P?tatr Rf t}to Prnn?r1<Y. n[ 4n tli!i?tC-r-q;+rttrE*i hK. t4, is \inrtgRgv_
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />
|