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If under paragraph 18 hrn•eoF tLe Property is .ukl ur thr Property iv t,tP,c•rrci~r a~~quir~~l hr Lend[:r. Lender
<br />shall apply, no later than inrtnerhaG;iy prior to the nal,: of rho Property or itr acquisition by Lrmf~~r. uu}- F^iulr~
<br />held by bender ut the time of application a~ :: r•rerlit aKuinai the ~o:r= .ecured b~~ thi 1lortga~c.
<br />3. Application of Paymr-nts. IJnles:~ applioai,le Inrt~ provide: othenri>e, ai! payment:< rer^ived icy Lender
<br />under the Note and paragraphs 1 and 2 hereof shall l;c applied Ly Lender first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note and on Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Future .advances, if any.
<br />d. Charges: Liens. Borrower shall pay nll taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain apriority-aver this Mortgage, and ground rents, if sop, 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 protptly furnish to Lender all notices of amounts due under this paragraph,
<br />CZI and in the event Borrower shall make payment directly, Borrower shall pranpily furnish to Lender receipts evi-
<br />~J dencing such payments. Borrower shall promptly discharge any lien w Inch has prim•ity over this \Iartgage; pro-
<br />'- vided, that Borrower shall not be required to discharge any such lien so long as 13orrawer shall agree in writing to
<br />C' the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />C,.> such Iien by, or defend enforcement of such lien in, legal proceedings which operate to present the enforcement. of
<br />O the lien or forfeiture of the Property or an}• part thereof.
<br />S. Hazard Insurance. Borrower shall keep the in=.provements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, Itazarde included withir. the term °extended coverage", and such other hazards as
<br />~ Lender may require and in such amounts nud ,•'or such periods as Lender nm}• require; provided, that Lender shall
<br />not require that the amount of such coverage exceed the? amount of coverage required to pay the sums secured'by
<br />This IiZortgage.
<br />The insurance carrier providing the insurance shall be chosen b}' Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unrexsanai~ly withheld. all premiums on insurance policies shall be paid
<br />at Lender < 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 ar before ten days of its expiration, the Lender, to protect
<br />its interest, may procure insumnce 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 />under the terms of this Mortgage.
<br />Ail insurance policies and renewals thereoY shall be in form acceptable to Lender and sir<tli include a standard
<br />mortgage clause in favor of and in forth acceptable to Lender. Lender c_hall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to bender all renewal notices and all receipts of paid pre-
<br />mituns. In the event of loss, Borrower shall givt; 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 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. It such restoration or repair is not economically feasible or if the security
<br />of Lhis Mortgage would be impaired, the-irsuranee 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 b}- Lender to Borrower that the insuraree carrier offers to settle a claim for
<br />instuance 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 ihis \tort_gage.
<br />Unless Lender and Borrower otherwise agree in writing, any such spplicatiun of proceeds to principal shall
<br />sot 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 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 tto the extent of the sums secured bw this 1lort-
<br />gage immediately prior to such sale or acquisitions resulting front damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />ti. Preservation and Maintenance of Property; Leaseholds; Condominiums. 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 />comply with the provisions of any lease, if this \iartgago is or. a leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shalt perform all of Borrower's obligations under the declaraiion of condominium or master deed,
<br />Lhe by-laws and regulaiions of the condominium project and constituent documents.
<br />?. Protection of Leadei s Security. If Borrower fails to perform the covenants and agreements contained in
<br />this 14fortgage, or if any action or proceeding is commenced which materially sheets Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent don;ain, 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• to protect Lender; interesi, including, but
<br />not limited to, disbtrsement of reasonable attorney's fees and corn upon the Propertv to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph i, with interest thereon. shall become additional indebt-
<br />edness of $orrower secured by this Mortgage. Liniess Borrower and Lender agree to oilier 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 Nate unless payment of intermit at such rate would be
<br />contrary to applieable law, in which e~•ent such amounts shall gear interest st the highest rate permissible by
<br />applieable law. Nothing contained in this 1'>arsgraptt ;shall require I.r•nder to in.^ur any expense or do any act
<br />hereunder.
<br />B. Iaapgction. Lender may make ar cause to }+<• made reasonab!c entries ul+on and inspections of the Prop-
<br />- erty, prowided that Lender shall give Borrower ^otiec Imior to ens su~•ii insiteMion specif}•ing reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />S. Caademaation Tl'ie proceeds of any awanl or claim for damages, direct or conseouential, in eonnettion
<br />with any condemnation or other taking of the Propertv, ar par thereof, or for eom•eyxnce in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In Lhe event of a total taking of the Property. the proctrcla shall be applied to the sums secured by this \lort-
<br />gage, with the excess, if any, paid to $orrower. In alto event of a partial taking of the Property, unless Harrower
<br />and Letiiler othersc~se agree in writing, there stroll be app}ied to the awns secured by this Mortgage such propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the sums secured by thie -Mortgage imme-
<br />diateiy prior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking, witls the balasice of the proceeds Iisid to Borrower.
<br />Ifthe P.mperty ie abandoned by $orrovser or if after notice by Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim fvr damages, Borrower fails to respond to Lender within 30 days of the date
<br />of snob ntitice, Lender is authorized to collect xnd-apply the proceeds at Lender's option either w restoration or
<br />repair of the Property or to the sums secured by this \iortgagi•.
<br />Unless Lender and Borrower othernise agree in writing, any such application of proceeds to principal shall
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