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<br />If under paragraph 78 hereof the Properly is sold or the }'ropert}• is othcr•,vise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to tbc• sale of the Property- nr its nequisitimt b}• l,c•nder.:my Funds
<br />held by Lender at the time of application as a credit against the awns >ceured 6c this \tortgagr,.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender
<br />under the Note and paragraphs I and 2 hereof shall br applied by Lemler first in payment of amounts payable ~o
<br />Lender ny $orrower under paragraph 2 hereof, then to interest payable on the iS*ote and on Future ~ldvancPS, if
<br />any, and then to the principal of the Note and to the principal of Future .Advances, iC nny.
<br />4. Charges; Liens. Borrower shall pay alt taxes, assessments and other charges, fines and impositions attrib-
<br />utpble to the Property which may attain a priority over ibis \1m•tgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 her. of m• I>p Borrower making payment., when du^, 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, Borrotrcr shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pro-
<br />v;ried, that Borrower shall not be required to discharge an}- such lien so long ae Borrower shall agree in writing to
<br />T..j the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />~ such lien by, ar defend enforcement of such lien in, legal proceedings which operaic to prevent the enforcement of
<br />~j the lien or forfeiture of the Property or am- part thereof.
<br />~ S. Hurd Insurance. Borrower shall keep the improvements poly existing m- hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />~ Lender may require and in 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 />f this lfortgage.
<br />01 The insurance carrier providing the insurance slrsll be chosen by Borrower sui>ject to approval by Lender;
<br />!~ provided; that such approval shall not be unreasonably withheld. 311 premiums on insurance policies shat! be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making pa}•ment, when due,
<br />dinzetly 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 ttris Mortgage. Failure by B:.nower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />:ill insurance policies and renewals thereof sball be in fonu acceptable ro Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender :hall have the. right to hold the policies and
<br />renewals thereof, and Borrower shall promptly Iurnish to Lender all renervul notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrow-er shall give prompt notic^ 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 ir, writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair ]s economical!}- ieas~6!e and the security of
<br />this Mortgage is net thereby impaired. If such restoration or repair is not econamicalh- feasible or it the security
<br />of this Mortgage would be impaired, the ;nsursnce 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 6y Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and app!}• the insurance proceeds at Lender's option either to
<br />restoration ar repair of the Property or to the sums secured b}- this \tartgage.
<br />Unless Lender and Borrower othern°ise agree In writing, any such applicatimt of proceeds io principal shall
<br />not extend or postpone the due date of the montltl-y installments referred to in paragraphs 1 and 2 hereof ar change
<br />the amount of such instaIlments.
<br />If under paragraph 18 hereof the Property is acquired b}• Lender, all riglrt, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof lto tine extent of the sums secured by this Mort-
<br />gage immediately prior to such sale or acquisitionr resulting fmm datnage to the Property prior to the sale or
<br />acgtrisition shall pas; to Lender.
<br />& Preservalioa ~d Mointen~ce of Property; Leaseholds; Condonniniun+= Borrower shall keep the Prnp-
<br />erty in good repair and shall not permit. or commit waste, impsimtent, or deterioration of the Property and shall
<br />comply with the provisions of arty lease, if this \Iortgsge is on a leasehold. If this Mortgage is on a condominium
<br />unit, $orrower shall perform ail of Borrower`s obligarons under the deciarstion of condominium or master deed,
<br />the by-laws and regulations of the condominium protect and constituent documents.
<br />9. Protection of Lender's Seeuritp. If Barrow•er fails to periornt the covenants sad agreements contained in
<br />this Mortgage, or if an}• action or proceeding is commenced which materisL'}• affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent domain, in_olvency, code enforcement. or arrangements or proceed-
<br />ings involving a bankrupi or decedent, then Lender at bender n option, upon notice [o Borrower, tray make such
<br />appearances, disburse such sm>?s and take such action as is necessar}• to protect Lendei s interest, including, but
<br />pat limited to, disbursement of reasonable attorney's fees and entq- upon the Properic to make repairs, any
<br />amounts disbursed by Lender pursuant to this paragraph ', rvitit interesi thereon, shall become additional indebt-
<br />edness of $orrower secured by this Mortgage. Unless Borrower and Lender agree to other teens of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment ±hereof, and shall bear inter-
<br />est frnm the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph i shall require Lender to incur any expense or do any act
<br />hereernder.
<br />8. Inspection. Lender may make or cause Lo lx made reasonable entries upon and inspections of the Ptnp-
<br />erty; prnvided that Lender shall give Borrower notice prior to any such inspection specif1ing reasonable cause
<br />therefor related to Lender's interest in *.he Property.
<br />9- Condemnation. The prac+/eds of env award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, ar part thereof, or for ronrevance in lieu of condemna-
<br />tion, are hereby assigned and s't--ail be paid to Lender.
<br />in the event of s total taking of the Property, the proceed; ehall be applied to the sums secured by this ~iort-
<br />gage, with the excess, ii any, paid i.o Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Leader otherwise agree in writing, there shall be applied to rho stuns secured by this Jlortgage such propor-
<br />tion of the proceeds as is ~tral to that prnpartioa which the amount of the sums secured by this lfartgage imme-
<br />diately prior to the date of taking bears to the #sir market value of the Property imntediateiy prior to the date of
<br />taking, with tl~ balaarr_ of the proceeds paid to Borrower.
<br />I# t]te Property 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 tail to respond to Lender within 30 days of the date
<br />of auah notice, Lender is authorised to collect-and apply the proceeds at Lenders option either to restoration or
<br />repair of the Property or to the sums secured by this lortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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