|
~-i
<br />@rJ
<br />c70
<br />C'*3
<br />G
<br />O
<br />QS
<br />If under paragrapl! 18 hereof the property is sold or rhr I'm;x~rty is othcr~si~~• ucquhrd Ls I•,:nder. Lander
<br />„hall apply, no later tbarr inrmediaudy prior to the ..:rlc of the l'u~;rr•rty ar u.= arqui<ition by l.r•!nler. soy 1'und,~
<br />held by Lender at the time of application as a crc~Iit again.~t tiro >u;n> sr•rurrd by thin 1lor[gugo.
<br />3. AppGeation of Payments. Unees,= applicable !acv presides othenci~c, :dl paymentr: receiscd by fender
<br />under the Note and paragraphs 1 and 2 hereof shall lre applied by Lender first in payment of amounts paystth to
<br />Lender by Borrower under paragraph 2 hereof, Yhen to interest payable on thr_ Aote anri on F~.rturc Aduanr,•es, if
<br />any, aced then to the principa! 01' the tote and to the principal of Future A<lsances. if any,
<br />4, Charges; Lietrs. $orrowersha![ pay all taxes; assessments anri other charges, fines cud impositions attrib-
<br />utable to the Property which may attain a priority over this Mortgage, and ground rants, if any, at Lender's
<br />option in the manner provided under paragrapu 'L hereof or h}- Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Leader rll notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment. directly, Barroa•er shall promptt}• furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which iras priority over this Mortgage; pro-
<br />vided, that Borrower sha!1 not be required to discharge any such lien so long as Bormwer shall agree in writing to
<br />tt~e 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 lien in, legal proceedings which operate to present the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insuraace. Borrower shall keep rile iurprocements noa• existing or hereafter erected an the Prop-
<br />erty insured against loss by fire, hazards included within the Term "extended coverage°, and such other hazards as
<br />Lender mss require and in such amounts and for arch periotL as Lender rna}• reyuirc; provided, that. Lender shall
<br />not require that the amount of such coverage exceed th;it. amount of coverage required to pay the sums secured "by
<br />this Mortgage.
<br />The irsur•ance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably evithheld. All premiums on insurance policies shall be paid
<br />at Lender's optian in the manner provided under paragraph '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 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 due and payable with interest at the rate set forth in said note until paid and shaIl be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />_nd°=• rite t~..^n, :;f tlti° l:I°_tgage.
<br />all insurance policies and renewals thereof shat' be in loan acceptable to Lender and shall include a standard
<br />~rortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to 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, insm•ance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br />of this ASortgage tirould be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the exee~s, if any, paid to Harrower. If the Property is abandoned by 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 apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this \lortgage.
<br />Unless Leader 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 parsgraplt 18 hereof the Property is acquired by Lender, al! right, title and interest of Bortbwer in
<br />and to soy insurance policies and in and to the proceeds thereof (to the extent of the sums secured by this ~•Sort-
<br />gage immediately prior to such sale or acquisition) resulting from damage to the Property prier to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not. permit ar commit waste, impairment, or deterioration of the Property and sirall
<br />comply with the provisions of any lease, it this \lortgage is on a leasehold. If this Mortgage is an a condominium
<br />unit, Harrower shall perforn: all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Proleetion of Lender's Security. If Borrower fails to perform the covenants 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 Iimited to, eminent domain, insolsenc}•, code enforcement, or arrangements or proceed-
<br />ings involving a bankrupi or decedent, then Lender at Lender's option, upon nok,ce to Borrower, may make such
<br />appearances, disburse such sums and take such action as is necessar• to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorneys tees and entn• upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7; tcith interesi thereon, shall become additional indebt-
<br />ednes of Borrower secured by this Mortgage. Unless Borrower and Lender agree Lo other Terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est #rom the date of disbursement at the rate slated in the \ote unless payment of interest at such rate would be
<br />contrary to applicable laa~, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. ~iothing contained in this paragraph 7 shall require bender to incur any expense or do any act
<br />hereunder.
<br />$. Inspection. Lender may snake ar cause to he movie reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shaA give Borrower notice pria• to env such inspection specifying reasonable cause
<br />therefor related to 7 ender's interest in the Property .
<br />g 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 {;art thereof, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid io Lender.
<br />In the eveni of a total taking of the Properly, the proceeds shall be applied to the sums secured by this Mort-
<br />gage, with the excess, if any, paid to $orrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, them shall be applied to the sums secured by this lortgage such propor-
<br />tion of the proeepds as i;a equal to that proportion which the amount of the sums secured by this :~Sortgage 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 />taking, with the balance of the proceeds paid to Borrower.
<br />Ii the Property is abandoned liy Borrower ar if after notice by bender to Borrower that the condemnor offem
<br />to make an award or settl~s a claim for damageu, $orrower fails to respond to bender within 30 days of the date
<br />of-such notice, Ixnder is authorized to collect and apply the proceeds at Lender's optian either to restoration or
<br />repau of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />
|