|
<br />~ if under paragraph t8 hereof the Prnperty- is sold m~ the Property is otherwise acquired i,v Leader. Lender
<br />• ,hall apply, no later than immediately prior to the sale of the Property- or its acqui=ition by Lender, :uty Ptmdr,
<br />held by Lendec at the lime of application as a credit against the sutras secm~ed In• ti;is \fortgaFC•.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Leader
<br />under the Note and paragraphs 1 and 2 hereof shall be app!ied by Lender first in payment of sntounts payable to
<br />Lender by $orrower under paragraph 2 hereof, then to interest payable nn the \ote and on Ft.turc :~dvant;e€, if
<br />any, and then to the principal of the l\rote and to the principal of Future Advances. if any.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attai^ a priority over this Mortgage, and ground rents, if any, at 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 promptly tarnish to Lencicr all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make I>syment directly, Borrower shall promptly furnish to Lender receipts eci-
<br />~ dencing such payments. Borrower shall promptly diseltarge any lien which ]tas priority over this Mortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge any such 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 good faith contest
<br />~"'• 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 Property or any part fliereof.
<br />~ 5. Haaard Iostuance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />- ~ erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may require and in such amomtts and for such periods as Lender may require; provided, that Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured'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 be unreasonably withheld. All premiums on insurance golicies shall be paid
<br />st Lender's option 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 sttm shall become
<br />.immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br />accrued by this Mortgage. r'u'lure 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 be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have tka 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 />. tniums. 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 othernise agree in writing, insursn~e 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 Mortgage-would be impaired, the insurance proceeds shall be applied to the sums secured by this hfortgage,
<br />' with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or iC Borrotc•er fails to respond
<br />to Leader 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 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 ZS hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and t~ any insurance policies and in and to the proceeds thereof (to the extent. of the sums secured by this Mort-
<br />gage immediately prior to such sale or aequisitionl resulting from datnage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation and Maintenance of Progertyt Leaseholds: Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shalt not permit or commit waste, impairment, ar deteriaration of the Property and abet!
<br />complq with the provisions of any lease, if this \Iortgsge is on a leasehold. If this Mortgage is an a condominium
<br />unit, Borrower shall perform 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. Protection of Lendei s Seeuzity. 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 limited to, eminent domain, insolvency, code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />- appearanscs, disburse such sutras and take such action as is necessary to protect Lender's interest, including, but
<br />not limited to, di=bursement of reasonable attorney's ices and entry upon the Properly to make repairs. Any
<br />amt;unte disbursed by Lender pursuant to this paragraph r, with interest thereon, shalt become additional indebt,
<br />_ ednese of Borrower secured 6y this Diottgage. Unless Borrower and 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 />est from the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br />contruy to apglicable law, in which event such amounts shall bear interest st. the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any expense or do any act
<br />hereunder.
<br />- 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Prop-
<br />` erty, provided that Lender shall give Borrower notic•c prier to any such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9. Condemaatioa The proceeds of nay award or claim for damages, direct or consequential, in connection
<br />with any wndenmayion ar other taking of the Property, or }tart thereof, or for conveyance in lieu of condemna-
<br />__ flora, ace hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mort-
<br />; gage, with the excesq; ii any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />,~ and Lender otherwise'&gree in writing, there shall be applied to the sums secured by this :Mortgage such propor-
<br />. floe of the proceeds as ie equal to that proportion which the antouni of the aunts secured by this Mortgage imme-
<br />distelyprior to the date of taring bears to the fair market value of the Property immediate}y prior to the date of
<br />taking, with the balaaee of the proceeds paid to Harrower.
<br />If fete Property i8 abandoned by fSOrrowcr or if after notice by Lender to Borrower that the condemnor offers
<br />to make an avrard or settle a claim-for damages, Borrower fails to respond to Lender within 3fl days of the date
<br />of such notice, Lender is authorized to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Prnperty of to rho ®tima secured by this Mortgage.
<br />Unless Lender and Borrower otherwise setae in writing; any such application of proceeds to principal shall
<br />
|