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<br />~~~-~ If ender paragraph t$ hereof the Yrnperh• i.~ <nld ..n' nc~ Yroperf.y is otheru~i.e acquired by Lende.~. Lender
<br />shell apply, no later than immediately prior to the sale ui nc~ Yropert}• or u~ ucyw~tt ion iiy Lender..un• hunr}t
<br />held by Lender at the time of application ss a credit against the ..-ums -erurcd Lv this 17ortg:rg,~.
<br />3. Application of Payments. Ilnlesx applirtbie Is:v provides atirenvise, all pavu~c•nts recciccil Lv Lender
<br />^nder the tiote and paragraphs 1 and 2 hereof shall be applied b}~ Lender fir::<t in pucment of :unounts pa}•able to
<br />Lender 6y Borrower under paragraph 2 Lereof, thou to interest ps}•aLlc- on the Aote and on Future Advances, if
<br />any, and then to the principal of the tiate and to the principal of Future Ad:~ances. if any-
<br />4. Charges; Lieas. Borrower shall pa}- all t:ixes, assessments and other el+.arges. fines and impositions attrib-
<br />utable to the Property which may attain a priority over tiris Mortgage; and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph ? hereof or b}• Borrower making paym^nt, when due, directh• to
<br />the payee thereof. Borrorr•er shall promptly fatal=li to Lender all notices of amounts due under this paragraph;
<br />and in the event Borrower shall make payment direcii}•, Borrower shall promptly furnish io Lender receipts evi-
<br />dencing such payments. Borrower shat] promptly discharge any lien :vhich has priority over this Mortgage; pro-
<br />G vided, that Borrawer steal! not be required to discharge any such lien so long as Borrower shat; agree in writing to
<br />1A the payment of the obligatimr secured by such lien iu a manner acceptable to Lender, or shall in good faith contest
<br />•t1 such lien by, or defend enforcement of such lieu in, legal hraceedings :vhich operate to prevent the enforcement. of
<br />Q~ the lien or forfeiture of the Property or any part thereof.
<br />,~ 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />C.9 erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender tray require and in such amounts and for such period<. 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 />h this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to spproeal by Lender;
<br />., provided, that such spprova] shall not be unreasonable withheld. All premiums on insurance policiee shall be paid
<br />at Lender's option in the manner provided under paragraph 2 het•eof 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 .rvlortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />-All insurance policies and renewals thereof shat] 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 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 />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 b}- Borrower.
<br />Unless Lender and Borrower otherwise agree in :vriiing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is ecanomically feasible and the security of
<br />this 14ortgage is not thereby unpaired. If such restoration or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this \4ortgage,
<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 34 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 />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />trot extend or postpone the due date of the monthly inst.a}Imen[s referred to in paragraphs 1 and 2 hereof or change
<br />tbe amount of such installments.
<br />If under paragraph 18 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 tta the extent of the sums secured by this ~fort-
<br />gage immediately prior to such sale or acquisition I resulting from damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condorniaiums. Borrower shall keep the Prop-
<br />erty in goad 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 _llorfgage is on a leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shall perform all of Borrower's obligations under the declaration of condominium or master dead,
<br />the by-laws and regulations of the condominium project sad constituent documents.
<br />7. Protection of Leadei s Beeurity. If Borrower fails to perform the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects Lenders 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's interest, including, but
<br />eat limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Anp
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest Thereon, shall become additional indebtc
<br />edness of Borrower secured by this Mortgage- Unless Borrower and Lander agree to other terms of payment, such
<br />amormts 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 iti'ote unless payment of interest at such rate would be
<br />~ntrary tit applicable. law, in which event. such amormts shall bear interest at +.he highest rate permissible by
<br />applicable law. nothing eontaired in this paragraph 7 shall require Lender to incur any expense or do any set
<br />• hereunder.
<br />8. Inapeetion. Lender ma}• make or cause to be made reasonable urtries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice prior to any such inspection specifying tasonable cause
<br />~, therefor reL;tzd to Lender's interest in the Property.
<br />3. Coadersaati~. The proceeds of any award ar claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Progeny, m• part thereof, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and-shall be paid to Lender.
<br />,In tlae event of s total taking of the Properly, the proceeds shall 6e applied to the sums secured by this D1ort-
<br />gage,~withexcess, if any, paid to Borrower. In the eirent of a partial taking of the Properly, unless Borrower
<br />and Lender otherwise agree in writing, there alas]] be applied to the sums secured by this lortgage such propor-
<br />flop of the proceeds ss is equal to that proportion which the amount of the sums secured by this Eortgage imme-
<br />- diately print to the date of taking bears to the fair tuarket value of the Property immediately prior to the date of
<br />taking, with the halanre of the proceeds paid to Borrower.
<br />If the Priipety is abandoned by Borrower 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 authorized to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the sums secured by tl;is Mortgage.
<br />Unless Lender and Borrower otltetwise agree in :vriiing, any such application of proceeds t.o principal shall
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