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<br />~ If under paragraph IFS hereof the Property is sold or ihr Yropert}• i. othcncise acquired by Leader. Lender
<br />shall apply, no later than inunediatelp prior to the s;ilc of the Property or il.~ :u•quisitioa by Lender, anv hmuls
<br />held by bender at the time of application as a credit agaimt the sum= >crurc:l h~~ this Along;tgr.
<br />3. Application of Payments IInles? applicable Iaw provides otherwix•, all pa}'tuenis recciccd bt- Lender
<br />under the Note and paragraphs I and 3 hereof slu,1l he applied by Lender fiat in pacn,ent ni ;uuounts payable. to
<br />~ Lender by Borrower under paragraph 2 hereof, rhea to inter<•st pa~~rtblr pn the Ante :itn( on future Advances, if
<br />~ any, and then io the prim•ipnl of the \ote curl to the principal of Pl,turc Arl~snc•e=, if any.
<br />~ 4. Charges; Liens. Borrower shall psi all laze,, aesessntents and other charges. lines and impositions attrih-
<br />e utable io the Property which ma} attain a priorit}• over this Mortgage, and ground rents, ii any, ai Lender's
<br />`~ option in khe manner provided under paragraph 2 hercoC or by Borrower tasking pa}•ment, when due, directly to
<br />the payee thereof. Borrower shall protnptl- furnish to Lender all notice; of amounts due under this paragraph,
<br />=' and in the event Borroter shall make payutcat direetlc. Borrower shxil prontptl}- iur,tish to Lender receipts evi-
<br />denCiii- aC,.
<br />6, '• l.act:tents- Bo*mwer shall pronytth~ :Gscharge any lien. which has priority over this \[ortgage; pro-
<br />vided, that Borrower shall not be require,i to discharge am such lien so long as Borrower shall agree in writing to
<br />~ the payment of the obligation secured 6}• such lien in tn;umer acceptable to header. nr shall in good faith contest
<br />such lien by, or defend enforcement of such lieu m. legal }troceedings which operate to prevent the enforcement of
<br />the lien or forfeiture of the Properh• or any part t hereof.
<br />- 5. Hazard Insurance. Borrower shall keep rite intproeemems now existing or itereaiter erected ott the Prop-
<br />erty insured against loss by fire, hazards included within the term `'extended coverage"- ;utd such other hazards as
<br />Lender may require and in such amounts atxl for such periods as Lauder mac require: provided. that Lender shall
<br />` not require that the amount of such coverage exceed that amount of coverage rryuirerl m pa}• the sums secured'by
<br />this Aiortgage.
<br />The insurance carrier providing the insurance shall be chosen h} Borrower suitject to approval by Lender:
<br />provided, that such approval shall not be unreasonable teiihltekl. All premiums on insurance policies shall be paid
<br />at Lender's option ir, the manner provided tinder lsra~raph 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 da}•s 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 due and payable with interest at the rate set forth in said note until paid and shall be
<br />secured by this ;\iortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage-
<br />All insurance policies and renewals thereof shall he in loan acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to ].ender. I .'nder shall have the right tc hold the policies ;:nd
<br />renewals thereof, and Borrower shall promptly furnish to bender all renewal notices and all receipts of paid pre-
<br />- miums. In the event of loss, Borrower shall give prompt notice ro the insurance carrier and Lender, and Lender
<br />may make proof of loss ii not made promptly by Borrower.
<br />Unless Lender and Borrower othernise agree in writing. inananc•e proceed, shall be applied to restoration or
<br />repair of the Propem• damaged, provided such restoration or repair is et•onomicall} feasible and the security of
<br />this ortgage is not thereby itupaired. If such restoration or repair ie not eatnomicallr ieasibie or it the security
<br />of this Mortgage would be impairad, the insurance proceeds shall he spplieri to the sums secured by this Mortgage.
<br />with the excess, if anc, paid to Borrower. Ii the Property is abandoned he Borrow•i•r or ii Borrower fails to respond
<br />to Lender within 30 days after notice b}- Lender to $on-ow-er that the insurance carrier osiers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at header's option either to
<br />restoration or repair of the Pmpem- or to the sums secured be this Mortgage.
<br />Unless Lender and Borrower othenwise agree in writing, anv such application of proceeds to principal shall
<br />not extend or postpone the due date of the ntontitiy installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under }traragraph IS hereof the Property is acauircri it}- Lender, sit right, title sn<i interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof +to tLc extent of the slats secured be *.his bfort-
<br />gage immediately prior to such sale or aequi=ition: tYCUltiug fram riant.;c to the Property pricy to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation and Maiatenonce of Property: Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not perrnit n,- cammit :caste. itnpairr::et:t. er riet~~rioration of the Property and shall
<br />comph• with the provisions of any lease, ii thi, Atortgsge is on a irsseleold. Ii this Aortgage is on s condominium
<br />unit, Borrower shall periornt aii of Borron•er's obligstionx utuii•r rite ~ erlrratiort of condominium or toaster deed,
<br />the by-law°s and regulations of the condominium pro}ect and r~onsritueu[ documents.
<br />7. Protection of Lender's Security. if Borrower iaiid to perfonu the cmenants and agreements eontsined in
<br />this Mortgage, or ii an}• action or proceeding is cotnn:enced wltiri, materiaih affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminetn dmuaiu. n;-ohrucc, co..ir eniorcenr,•nt. or arrangements or proceed-
<br />ings Snvoiving s bankrupt or decedent, then Lender st Lender'; option. upon notice to Borrower, rosy mane such
<br />appearances, disburse each sums and take such action as i~ ~ereessn to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's tees and entn- upon the Property to make repairs. Any
<br />amounts disbursed'oy Lender pursuant to this paragraph ~. with interest thereon, shall i>ecome additional indebt-
<br />etines of Borrower secured by this Mortgage. Unless Borrower and I.en~ier agree to other terms of payment, such
<br />amounts shall be payable upon notice front Lender to Borrower requesting payment thereof, and shall bear inter-
<br />esLirom the date of disbursernent aL the rate stated in the \ote unless payment of interest at such rate would be
<br />contrary to appLcable Iaw, in which event such amounts shall. bear interest at the highest rate permis.?ible by
<br />applicable Iaw. \otiting contained in this paragraph ' shall rcquirr Lender to incur any expense or do any act
<br />hereunder.
<br />8. Iaspectioa- Lender ma}- make or cause to i>t• made rea.~etnabk• entries u;tau snrl inspections of the Prop-
<br />erty, provided that Leader shall give Borrower notice prior to any -ur1: inspection speeiiying reasonable cause
<br />Lherefor related to Lender's interest in the Prapert}•.
<br />9. Coaademnatioa. The proceed. of any awanl or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or patt thereof. or for ronyeyanre in Lieu of condemna-
<br />_ lion, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall he applied to the sums secured by this lfort-
<br />gage, with the excess ii 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 spplieri to tkte soars secured by this \lrtgage such propor-
<br />lion 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 market. value of the Property immediately prior to the date of
<br />tatting, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned'-~y Borrower or if niter 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 30 days of the date
<br />of such notice, Lender w authorized to co11eM and apply the proceed. at Lender's option either to restoration or
<br />repair of the Property or to the sums secured by this \mrtgage.
<br />Unless Lender and Iorrower otherwise agree in writing, any such appiieation of proceeds to principal shall
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