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<br />If under paragraph IS hereof the Property i> sold or thr• Property is othcrwi«~ :u~~{uirerl ba Louder. L«-;:der
<br />.hall apply, no later than iuuuedistely Prior to flu sac of the Propcrt;,- or i!- acquisition by L~•nder.:u:v i•'vud~
<br />Held by Lender ut the flea of application as a credit against the styes ..cr turd hr this :tlortgage.
<br />3. AppGeatian of Payments. Unless applicable late provides otherwise, all pnyuteuts received by Lender
<br />under the'_Aote and paragraphs ]and 2 hereof steal br applied by Lmuicr fist in payment of amounts p!t)-ahle to
<br />Lender by Borrower under paragraph 2 hereof, then co interest payairle on the Rote and on future 3~tvances. ii
<br />any, and then to the principal of the Itotc and to the principal of I`uture 3rlcarces, if ang-.
<br />~1. Charges; Liens. Borrower shall pay all taxes, assessments and other chargee., fines and impositions attrib-
<br />utable to the Property which may attain a priority over this \lortgage, and ground rents, it an~-. at Lender's
<br />option in the manner provided under paragraph 2 hereof m• by }3orrower making payment, when due, directly to
<br />the payee thereof. Harrower shall promptly furnish w Lenttcr all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment. directly. 13mrower shall prmuptly furnish to Lemier receipts evi-
<br />!13 dancing such payments. Borrower shall promptly discharge any lien which has priority over this \tortgsgc; pra-
<br />n vided, that Borrower shall not be required to discharge am• suci~ !ion so long ss Borrower shall agree in writing to
<br />Q? the payment of the obligation secured by such Lien in n manner acceptable to Lender. or sloall in good faith contest
<br />C'3 such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of
<br />~ the lien ar forfeiture of the Property or any part thereof.
<br />~ 5. Hazardlnsu:~ce. Borrower shalt 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 amounts and for such periods us Lender may requtre: prodded, that Lender shall
<br />~ not require that the amowtt of such coverage eseeed 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 policies shall be paid
<br />at 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 sum shall become
<br />immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br />soured by this Mortgage, Fnih:re h_y RorrowPr to comely may; at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />911 insurance policies and renewals thereof shall be in torn accept~s6lc to Lender and shall inclndc 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 Borrower shall promptly furnish to Lender a] renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier snd 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 proceeds shall he applied to restoration or
<br />repair of the Property damaged, provided such restoratimr or repair is economically feasible and the security of
<br />this 1ltrrtgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br />of this \lortgage would be impaired, the jrsurance proceeds shall be applied to the sums secured by this biartgage,
<br />with the excess, if any, paid to Borrower. If the Yroperty is abandoned try Borrower or if Borrower fails to respond
<br />to Lender within 30 daps 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 />resWration or repair of the Property or to the sums secured by this \lortgage.
<br />Unless Lender and Borrower athertafse 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 18 hereof the Yroperty is acquired b}' Lender, al! right, title sod interest of Borrower in
<br />and ttr any insurance polieie` and in and to the proceeds thereof (to the extent of the sums secured by this ;tiiort-
<br />gage immediately prior io such sale or acquisition) resulting from damage to the Yropert;~ prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation rmd Maintenaace of Property: Leaseholds; Condominitmrs. Borrower shall keep the Prop-
<br />erty in good repair and shall not perTrrit or commit waste, impairment. or deterioration of the Property and shall
<br />campiy with the provisions of any lease, if this 3ortgage is on a leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shall perform all of Borrow•er•s obligations under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium project snd constituent documents.
<br />7. Proteetioa of Lendei s Security. If Borrower fails to perform the covenants snd agreements contained in
<br />this Aortgage, or if any action or proceeding is commenced which materialh• sffcrts Lender c interest in the Prop-
<br />erty, including, but not limited to, eminent domain. insah-ency, rode enforcement, or arrangements or proceed-
<br />in~ involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums and take such action as is necessar,.• to protect Lender ~ interest, including, but
<br />fret limned to, disbursement of reasonable attorney's fees and entry upon the Yroperty to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 'r, with interest. thereon, shall become additional indebtc
<br />wines of $orrower secured by this ~ior•tgage. Unless Borrower and bender agree to other iernrs of payment, such
<br />amounts snail be pavable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est from the date of disbursement aL the rate stated in the Note unless payment of interest ai such rate would be
<br />contrary to applicable law, in which event such smounts shall bear interest at the highest rate permissible by
<br />applicable law. Nailing contained in this paragraph 7 shall trquirc Lender to incur any expense or do any act
<br />hereunder.
<br />& Lender max make or cause to he made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give $orrower notice prior to any sac!: inspection specifying reasonable cause
<br />therttor related to Lender's interest in the Property.
<br />'~. Cosds~tion. iirt proceeds of say award or claim for damages, direct or consequential, in connection
<br />with any condemnation or otber taking of the Property. or part thereof. or for conveyance in lieu of condemna-
<br />tion, ate 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 excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and T ender otherwise agree in writing, there shall be applied io the scans secured by this .Mortgage such propor-
<br />tiaa of the proceeds as is equal to that proportion which the amount of the atrnrs secured by this Mortgage imme-
<br />• diatety prior to the date of taking bears to the fair market value o€ the Property immediately prior W the date of
<br />taking; with the balance of the proceeds paid to Borrower,
<br />I€ the Prope;Ey ie abandoned by $orrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make aw award or softie a claim for damages, Borrower tails to respond to Lender within 30 days of the date
<br />of such notice, T,eader is authorised to collect and-apply the preceetfs :tt L.ender's option either to restoration or
<br />repair of the Property err to the stuns secured by this \lortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such spplication of proceeds to principal shall
<br />~ 6~
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