|
If ::r--der paragraph IS hereof the Yroperty :s so!d cr nc~ Properh• i otherwise ;ugvired by Len<ier. Lender
<br />shall apply, no later than immedtately prior to th,~ sale of the proprrt.y ar it- acqui>itiou h}~ Lc:uicr. any Ftmds
<br />held by Lender at the time of application .ts a rreitit esgain c the ~uui~ secured i,v this \Iortgagc.
<br />3. 1Lpplieatioa of Payments. Unless applicable tau provides oti:errvi:=e, all payments recei~:ed by Lender
<br />mtder the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest haya'alc on th«~ Note and on Future 9dc•ances, if
<br />any, and then to the principal of [he tote and to the principal of Future advance=, if any.
<br />4. Charges; Lisa . Borrower shall pay ail taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority over this Mortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof ot• by Borrower making payment, when due. direc~+.ly to
<br />the payee thereof. Borrower shall promptly furnish to Lender alt notices of amounts due under this paragraph,
<br />and in the event $arrower _~hall make payment directly, Borrower shall prompilp tarnish to Lender receipts evi-
<br />M deneing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pro-
<br />,~ vided, that Borrower shall not be required to discharge an}• such lien so long as Borrower shall agree in writing to
<br />the payment of the obligatiotn secured by such lien in a manner acceptable to Lender, or shall in goad faith contest
<br />~ 9uch 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 thereof.
<br />~ 5. hazard fxasurance. Borrower shalt keep the nrprovements new existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "exte:nded coverage", and such other hazards as
<br />Lender may require and in such amounts and for such periods as Lender ma}• require; prodded, 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 />A thhis 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. 911 premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided undet• 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 />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />.--n,Ylup tha t rmc of fhb M~rtgngP,
<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 mace 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 s!tail 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 othern•ise agree is 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. If such restoration or repsir is not economically feasible or if the security
<br />of this \iortgsge would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrowetc 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 authorised 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 Lender and Borrower otherwise agree in writing, any such application o£ proceeds to principal shall
<br />not extend or postpone the due date of the tnonthly installments referred to in paragraphs 1 and 2 hereci or change
<br />the amount of such installments.
<br />If under paragraph I8 hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof f to the extent of the sums secured by this Aiort-
<br />gage immediately prior to such sale or acquisition) resulting from damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation and Maiateaaace of Property; Leaseholds; Coadoatiniums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br />eompiy with the prorisiors of any lease, if this \iortgsge is on a leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shall perform alt 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 Security. If Borrower fails io perform the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding i commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain, insoh•ency, 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 to protect Lender ~ interest. including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. 9ny
<br />amounts disbursed by Lender pursuant to this paragraph r, with interest thereon, shall becatne additional indebtc
<br />edaess of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Under to Borrower requeaiing payment thereof, and shall bear inter-
<br />. _ eat from the date of disbursement at the rate stated in the Tote unless payment. of interest at such rate would be
<br />contrary Eo applicable law; in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph 'shall inquire Lender to incur an}• expense or do an}• act
<br />hereunder.
<br />8. Inspectiem. Lender may make or cause to be made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice ln•im• to any such inspection specifying reasonable cause
<br />therefor related to Lender`s interest in the Property.
<br />3. Candemaatian, The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with-any condemnation ar other taking of the Property, m• part thoreof, or for conveyance in lieu of condemna-
<br />tion~ are hereby assigned and shall be paid to Lender.
<br />In the event of s total taking of the Property, the proce~.'ds shall be applied to the sums secured by this Mort-
<br />g~ge, wit6abe etreeas, if any, paid to Borrower. in the event of a partial taking of the Property, unless Borrowet•
<br />and I.eAder otherwise agree in writing, there shall be applied to the sums secured by this tiiartgage such propor-
<br />tion of the proceeds as is equal W that proportion which the amount of the sums scoured by this Mortgage imme-
<br />• diatefy prior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />felting, with tie balance of the proceeds paid to Borrower.
<br />If tits Property is abandoned by Borrower or if niter notice 6y Lender to Borrower that the condemnor offers
<br />to make an award or settle a claitm for damages, Borrower fails to respond to Lender within 30 da}•s of the date
<br />of such notice, Lender is authdrised t^ collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the sums eecured by this Mortgage.
<br />Unless. Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />
|