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If under paragraph lS hereot the Property is sokt or the Property is o±herwise acquired by Lender. Lender 1
<br />shall apply, no later than iounediately prior to tha sale of the Property or its acqui=ition by Lender, any Funds
<br />held by Lender at. the time of application as a credit against t he ~:nus secured by this :llortgagc.
<br />3. ApplisaGoa of Payments. Unless applicable lain provides otherwise, ail payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall he applied by Lender first. in payment of amounts payable to
<br />Lender by Borrower under paragralrb 'l hereof, then to interest pa}able on the \ote and on Future Advances if
<br />any, snd then to the principal of the fiote 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 attain 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 furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shell make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />r'i dancing such payments. Borrower shall promptly discharge any lien which bas priority over this ~4ortgage; pro-
<br />G': vided, that Borrower shall not be required to discharge cry such lien so long as Borrower shall agree in writing to
<br />r-t the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in goad faith contest -
<br />~ such lien by, or defend enforcement of such lien iu, legal proceedings which operate to prevent the enforcement of
<br />O the lien or forfeiture of the Property- or anv part thereof.
<br />~ 5. Hazard Insuraace. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />, arty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may require and ir. such amounts 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 wrreasonably withheld. All premiums on insurance policies shalt be paid
<br />at Lender's option in the manner provided under paragraph 2 hereoY 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 improver ~.ents, pay the preniums 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 />us'efl by t.~;o ~•i~~'gage. Fail.4rg by Rnrr_nnr to rnm_gly rnay, at antian of Lender, egret tote a default _
<br />tinder the terms of this Mortgage.
<br />All insurance policies and renewals thereof shall he in font acceptab]e to Lender and shall include a standard
<br />mortgage elause in favor of and in form acceptable to Lender. Lender shall hate 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 />- tnitttns. In the event of loss, Borrower shah give. prompt r:otice to the insurance enrrier and Lender, and Lender
<br />may make proof of toss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherntse agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is econavically ieasible and the security of
<br />this Mortgage is not theretay impaired. If such restoration or repair is not economically feasible or if the security
<br />of this 14ortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any; paid to Borrower. If fhe Property is abandoned by Borrower or if Borrower faits 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 by this Mortgage.
<br />Cnless Lender turd Borrower otherwise agree in writing, any such application of proceeds t.o 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 amotmt of such installments.
<br />If under paragraph i$ hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and to any insuranc:~ policies snd in and to the proceeds thereof ito the extent of the sums secured by this Mort-
<br />. gage immediately prior to such sale or acquisiiionl resulting from damage to the Property prior to the sale or
<br />acgttiaition shall pass to Lender.
<br />6. Preservation cad Maiateaaace of Property; Leaseholds; Caadominiums. Borrower shalt keep the Prop-
<br />erty in good repair and-shalt not pertnii ar commit waste, impairment, or deterioration of the Property and shall
<br />comply vt~th the provisions of sny !ease, if this Mortgage is on a leasehold. If this liortgage is on a condominium
<br />unit, Borrower ahali 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 Security. If Borrower fails to perform the covenants end agreements contained in
<br />ibis Mortgage, or ii any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />- arty, including, but not limited to, eminent domain, insolreucc, code entorcement. 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 sction as is necessary to protect Lender's interest,ineluding, but
<br />not limited to, disbursement of reasonable attorney's fee: and entn• upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant fo this paragraph 7, with interest thereon, shall become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shalt be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />- est from the date of disbutsement at the rate stated in the \ote unless payment of interest at such rate would be
<br />contrary to applicable law, is which event such amennts shall bear interest at the highest rate permissible by
<br />agpGcabte law. Nothing etrntnined in this paragraphs 'r shall require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Inspection. Lender may make or rouse to hc• trade reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall give $arroa•er noticr pttim• to any su~•b inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />fi. Coadetmaatian. The proceeds of any award or claim for damsges, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or far conw•eyance 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 shalt 6e applied to the sums secured by this Mort-
<br />gage; 3vith tope excess, if sny, paid fo Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall be applied to the scans secured by this Mortgage such propor-
<br />tion of tfie proceeds as is equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />'diately grior to the date of taking bears tv the fair market value of rite Property immediately prior to the date of
<br />tslcing; with the balance of rile proceeds paid to Borrower.
<br />Lf the Property is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />- tomske ati award ar settle aclaim-for damages, Borrower fails to respond to Lender within 30 days of the date
<br />of such notice, Lender is authorised to toll^et and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property ar to the sums secured by this Mortgage.
<br />Unless Lender and Borrower othernise agree in writing, any such application of proceeds to principal shall
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