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If under paragraph IS hereof the Yroperic is soLl or the i'ropert.y is otherwise acquired by Louder. Lender
<br />shall apply, no later tl,:m immediately prior to the Talc of the Property or it>~ acquisition by Lender. any Funds
<br />held by Lender at the time of application as a credit against the sums secured Lc ti,is lortgage.
<br />3. Application of Payments. Iinless applicable late provides otbern•iec, sIl payments- received be Lender
<br />under the AtotE and paragraphs I and 2 hereof shall he applied be Lender fires in payment of smounts payable to
<br />Lender by Borrower under paragraph 2 hereof, thou to interest pnyablc on the Vote and on Future Advances, if
<br />any, and then to the principal of the Aote and fa the principal of Future Adranecs, if arr.
<br />4. Charges; Liens. Borrower shall pay all taxes, scsesements and other charges, fines snd impositions attrib-
<br />utable to the Property which may attain a priority over this Jortgage, snd ground rents. ii any, si Lender's
<br />~ option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directly to
<br />~ the payee thereof. Borrower shall prmnpth- furnish to Tender all notices of amounts due under this paragraph,
<br />~ and in the event Borrower shall make payment directly, Borrower shall promptly furr!ish to bender receipts ev;-
<br />~ denting such payments. Borrower shall promptly discharge avy iron which has priority ai`i~l` this lfartgage; pr~-
<br />vided, that Borrower shall not le required to discharge any such lien so long as Borrower shall agree in writing t.o
<br />the payment of the obligation secured by such lieu in n warmer acceptable to Lender. or shall in good faith contest
<br />such lien hy, ar defend enforcement of such Tien in, legal proceedings whir.h operate to prevent the enforcement of
<br />the lieu or for#eiture of the Property or an}- part thereof.
<br />~ 5. &Iazard Insurance. Borrower shall keep the improvements note existing or hereafter erected on the Prop-
<br />only insured against loss by fire, hazards included within the term `•esterded coverage", and such other hazards as
<br />Lender may require and in such amounts and Ion such periods as Lender ores}- require: provided, that Lender shall
<br />' not require that the amount of such coverage exceed that anrowtt of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing d,e insurance shall le chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withleld. All premiums on insurance policies shall be paid
<br />st Lender's option in the manner provided under paragraph ?hereof or ba 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 sum shall become
<br />immediately dce and payable with interest at the rate set forth in said note until paid and shall be
<br />secured by this iLlortgage. Failure by Borrower to compy may, at option of Lender, constitute a default
<br />under ilre Terms of this Mortgage.
<br />All insurance policies and renewal thereof shall be in form scceptahle to Lender and shalt include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold 'the policies and
<br />renewals thereof, and Harrower shall promptly furnish to Lernfer all renewal notices and all receipts of paid pre-
<br />miums. In the event. of loss, Borrower shall give prompt notice *.o the insurance carrier and Lender; and Lender
<br />may make proof of loss if not. made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance pro cods shall be applied to restoration or
<br />repair of the Propertc damaged, provided such restoration ar repair is ecomm~ically feasible and the security of
<br />this lortgage is not thereby impaired. Ii such restoration m• repair is not economically feasible or if the security
<br />of this _lortgage would be impaired, dre jnsursnce proceeds shall be applied to the autos secured ly this Mortgage,
<br />with the excess, it ant, paid to B~rron•er. If the Yt•operty is abandoned by Borrower ar it Borrower fails to respond
<br />io Lender within 30 days after notice by Lender to Borrower that the insurance carrier often to settle a claim for
<br />insurance 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 the sums secured b}- this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, 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 such installments.
<br />If under paragraph IS hereof the Property is acquired ly Lender. al] right, title and interest of Borrower in
<br />and to any insurance policies and in 2nd to the proceeds thereof ito the extent of the suns secureii by this ~kort-
<br />gage immediately prior to such sale or acquisitions resulting from damage to the Yropen+• prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preserratioa sad Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the 1'mp-
<br />erty in good repair and _chall not permit or commit waste, impsirnrent. or detcriorstiort of the Property and shall
<br />comply wish the provisions of arc lease, if this Mortgage is on a ieaseitoid. I this Mortgage is on a condominium
<br />unit, Borrower shall periornr all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-laps and regulations of the condominium project and constituent documents.
<br />7. Protection of Lendei s $ecurity. Ii Borrower fails to perform the covenants and agreements contained in
<br />this \iortgsge, ar ii any action or proceeding is commenced which msterisslh• a7ects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain. insah-encr. Cade enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender st Lelder's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, tut
<br />not limited to, disbursement of reasonable attorney's fees and entn• upon the Propertc to !Hake repairs. Any
<br />smounts disbursed by Lender pursuant to this paragrapl. i, with interest thereon, shall become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other towns of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />estfrom the date of disbursement at the rate elated in the Vote unless payment of interest at such rate would be
<br />contrazy to applicable law, in w•hielt event such amounts shall bear Snterest at the highest rate permissible by
<br />applicable isn-. \othing mntaintvi in dris }~aragrapir 'shall requir• Lender to incur any expense or do any act
<br />heretmdez
<br />$. Iaspeetiom Lender may maize or cause to Ix' trade reasonable i•ntries upon sort inspections of the Prop-
<br />erty, provided !tai Lender shall give Borrower notice prior to nnc -ut•1, inslxetion specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />4, Condom*+~*}+^^ The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Propem-. or part thereof, or for ron+•evsnce in lieu of condemna-
<br />tion, are hereby assigned and shall le paid to Lender.
<br />In the event of a total taking of fire Property, Chc proceeds :=hall be applied to the suns secured by this Mort-
<br />gage, with the excess, ii any, paid m Borrower. In the e+•ent ai a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing- there shall be applied to the awns 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 iortgage imme-
<br />diately prior to the date of faking bears to dre fair market value of the Property inmrediateh• 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 by Lender to Borrower that the condemnor offers
<br />to make an award or settle a clriun for damage`, Borrower iai!s to respond to Lender within 30 days of the date
<br />of such notice, Lender is authorized to collect and appl}- the proceeds at Lender's optiar! either to restoration or
<br />repair of the Property or to the sums secured b}-this Mortgage.
<br />Unless Lender and Borrower othervise agree in writings any such application of proceeds to principal shall
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