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If under paragraph 18 hereof the Yroperty is sold or the Property is otherwise acquired by fender. I-ender
<br />xhall apply, no later thun immediately prior to t.hc sole of tho Yroprrtc or its acquisition by Lender, anc Funds
<br />held by Lender st the time ui applirat.ion as a credit against thc• sums sec•urcd be this 1lortgage.
<br />3. Application of Payments. Unless applicable L•~TC proeides otherwise, all payments received by Lender
<br />under the Dote and paragraphs I and 2 hereof shah be applied by Lender first in payment of auwunts payable to
<br />Lender by Borrower under paragraph 2 hereof, tl:eu to inferest p:eyablc on the Note and on Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Fuiurc Advances, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Yroperty which may attain a priority aver this Mortgage, and gromtd rents, if any, at Lender's
<br />option in the manner provided under paragraph `L hereof or by Borron•er 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 furnish to Lender receipts evi-
<br />~ dencing such payments. Borrower shall prmnptly discharge any Lien which has priority over this Mortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge anc such lien so long as Borrower shall agree in writing to
<br />the payment of the obligation secured by such lien in =t manner acceptahle to Fender, 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 />t7 the Tien or forfeiture of the Property m• any part thereof.
<br />~ 5, Hazard Insurance. $orrower shall keep the improvements HDTV existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included withi: the term "extended coverage", and such other hazards as
<br />1 Lender may require and in such amounts an<i for such periods as 3.ender may require; provided, that Lender shall
<br />~ not require that the amount of such coverage exceed Thai amount of Coverage required to pay the sums seoured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be c'TOSen b}- Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. 311 premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under l: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 patd and shall be
<br />secured Irv this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />Al! insurance policies and renewnis thereot shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in Iornt acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renews! 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 Borrcwer.
<br />Unless Lender and Borrower otherwise agree in writing, inswance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is ec•onomicali}• feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoratimt or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the_insurance proceed, shall be applied to the sums secured 6y this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Yropetty 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 b}- 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 dote 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 by Lender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and to tine 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 Property prior to the sale or
<br />scquiaition shall pass to Lender.
<br />6. Pressrvatioa mud Maiatenmsee of Property; Leaseholds; Coadorrtiniutas. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit or cammii waste, impairntent, or deteri^rafion of the Property and shall
<br />comply with the provisions of any lease, if this Mortgage is on a leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shalt perform all of Borrower's obligations under fhe declaration of condominium or master deed,
<br />tee by-laws and regulations of the condominium project and constituent documents.
<br />P. Protecfio~a of Lendei s $eeurity. If Borrower tails to perform the covenants and agreements contained in
<br />this Sfortgage, or if any action or proceeding is commenced which materislh- 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 />appearances, disburse such sums and take such action as is necessary io protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. !>,ny
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional irdebt-
<br />edness of $ormwer secured by this liortgage. 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 />. eat from the date of disbursement at the rate stated in the Note unless payment. of interest at such rate would be
<br />contrary to agplicable law, in which event such amounts shalt bear interest at the highest rate permissible by
<br />agplicable law. \othing contained in this paragraph 7 shat[ require Lender to incur any expense or do any net
<br />hereunder.
<br />_ $. Iaaprction. Lender may make ar eau to he made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause
<br />therefor relates to Lender's interest in the Properly.
<br />9. Condsmnatioa. The proceeds of any sward or claim for damages, direct or consequential, in connection
<br />with any condemnation of other taking of the Property, or hart 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 shall he 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 />cad Lender otherwise agree in writing, there shall be applied to the awns secured by this _lortgage such propor-
<br />tion of the proee~s ss is equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />diately grior tb the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking, with the balanix of the proceeds paid to Borrower.
<br />if tine Property is abandoned by $orrower or if after 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 is sathorized to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the sutras secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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