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<br />If under paragraph 18 6ereo( the Propert~• i~ void or the Property is rrthenvi~r ;uquircd br f.~•r,der. Lender
<br />shall aPPtY, uo later Than immediately prior tri the Hale ui the YnvE,r°rh• ur iL .u•yui~,itiun by Leruirr, :ui~' Fumh
<br />held by herder at the time of application :+~ a credit a~ttiust the ~un:F ~ccum~l by thi~~ Mortgage.
<br />3. aLppGcation of Payments. Unless applicable law provide= otl+crvi~c, aI1 paymer+i~ receisc+l trv Lender
<br />under the Note and paragraphs 1 and 2 hemof shall Ito aplriierl hs Lender first in payment of amounts payable to
<br />Lender by Barrewer under paragraph '> hereof, then to int«~t'est pacahlc on the Aot-e anal on Fu#,ure Advances, if
<br />any, and then to the principal of the Note and to the principal oC Future Advances, if an}•.
<br />4. Charges: Liens. Borrower shall pa}• ail taxes. assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain s priority-over this Mortgage, and ground rents. if any, at Lender's
<br />option in the manner provided under paragraph 2 hercaf or try Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall promptly Eurnish t.o Lender receipts evi-
<br />T°f denting such pa}anents. Borrower shall promptly discharge any lien which has priority over this lortgage; pro-
<br />''~ vided, that Borrower shall not be required to discharge ant such lien so long as Borrower shall agree in writing to
<br />'~ :he 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 whirl; operate to present the enforcement of
<br />J the lien or forfeiture of the Property ar any part thereof.
<br />.~ 5. Hazard Iasueaace. $orraw•er shall keep the improvements Hove 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 as Lender may require: provided, that Lender shell
<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 insurauee shall be chosen by Botrawer subject. to approval by hender;
<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 Len3er, 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 Mortgage. Pallure by Borrower to comply may, ai option of i.ender, caasiiiute a default
<br />under the terms of this Mortgage.
<br />All insurance policies and renewals thereat shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Linder. Lender shalt 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 />mitmts. In the ereni of loss, Borrower shall give prompt. notice to the insurance carrier and Lender, and Lender
<br />may ?Hake proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance 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. IY such restoration or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, ti+e insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within 30 days after notice by Lender to Botrawer 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 be this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, am' such application of proceeds to principal shall
<br />not extend or postpone the due date of the tnonthly installments referred to in paragraphs I and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph IS hereof the Property is acquired by Lender. all right, title and interest of Borrower in
<br />and to any insurance policies and ir. and to the proceeds thereof tto the extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisition) resulting from damage to the Properly pre<r to the sale or
<br />requisition shall pass to Lender.
<br />6. Preasrva&on artd Mai:ttsnance of Property; Leaseholds; Condominiums. Botrawer shall keep the Prop-
<br />erty in good repair and shall not penal or : ommit waste, impairment, or deterioration of the Property and shall
<br />comply with the provisions of any lease, if this Mortgage is on a leasehold. If this Jiorcgage is on 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 anti constituent documents.
<br />7. Protection of Leadei s Security. It Borrower fails to perform the covenants and agreements contained in
<br />this Mortgage, or if any action er proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not litnited to, eminent domain, insohency, code entoreetnent, 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 />appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br />not limited tc, disbursement ai reasonable attorney': fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant io this paragraph ^r, with interest Thereon, shall become additional indebt-
<br />edncs of Borrower secured by this tortgage. 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 />contrary to applicable Isa•, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph i shall require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Inspection. Lender ma}• snake or cause to be made reasonable entries upon seed inspections of the Prop-
<br />, erty, provided that Lender shall give Borrower native prio:• to :u+y sorb inspection specifying reasonable cause
<br />ttte;efor related to ixnder's interest in the Property.
<br />~. Condamnatioa. The proceeds of any award er claim far damages, direct or consequential, in connection
<br />with any condenmation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds ..=,hai! be applied io the sums secured by this Mort-
<br />gages with °t~te'esttDtr$; if any, paid to Borrower. In the event o1 a partial taking of the Property, unless Borrower
<br />-and Lender othei'avise agree in wtitfing, there alas)[ be applied to the sums secured by this \~rtgage such propor-
<br />lion of the proceeds as is equal to that proportion which the amount of the sums secured by this .i-frtgage imme-
<br />diately prior to the date of taking bears to the fair u+arket value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the'Property is abandoned by Borrower cr if niter notice 6y Lender to Borrower that the condemnor offers
<br />to make an award or settle s claim for damsge~, Borrower fair to respond to Lender within 30 days of the date
<br />of such-notice, Lender is sutlaorized to collect and apply the proce~Is at Lender'; option either to restoration or
<br />repair of the Property ar to the sums secured by this \Iortgagr.
<br />Unless LentLer sad Borrower otherwise scree :n writing, env such applacetian of proceeds to principal shall
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