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If tinder paragrnp6 1R hereof the Property is gold or nc~• Propert~~ is otherwise s~~quired by !,ender. lender
<br />shall apply, no later than immediah•I;• ~:rior to the rule of the Pmpr•rty ur ir• acquisition by Lc•nder.:uro Funds
<br />held by Lender ai the time of application ss a credit agains[ the rune secured b~- tills A~lortgagc.
<br />3. Applica€ion oI Faymeais. Urtles upltlicahlc law provides otherwise, all payments reeeivc•d he Lender
<br />under the Note and paragraphs 1 and '2 hereof sire!! Lo applied In- Leader tn•st in payment. of amounts payable to
<br />Lender by Borrower under paragraph ?hereof. then to intcrost puyuLlc on 'the Aote and on Ftriuro Advances, if
<br />any, acrd then to khe principal of the Nate and to the lerincipa! of Future Adesnces, if :arc.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, hoes and impositions attrib-
<br />utable to the Property which may attsiu a priority over ti;is \Sortgage, anti ground rents. if any, at LenderE
<br />option in the manner provided under paragraph 2 hereof or b}• Borrower makin, 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 shall make payment directly. Borrower shall promptly furnish to Lender receilas evi-
<br />dencing such paynents. Borrower shall prompth• discharge any Lien which has priority over this \Iortgsge: pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to
<br />the payment of the obligation secured by such lien in ursnner acceptable io Lender, os- shalt in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings whieli operate to prevent the enforcement of
<br />fhe lien or forfeiture of the Propert}• or any inert thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements non' existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included rvithin the term "extended coverage", and such other hazards as
<br />Lenderrnay require and in such amounts and for each periods .xs Lender roue require: provided, that Lender shall
<br />not require that the amount of such coverage exceed filet amount of coverage required to pay the sums seeured'by
<br />this :Mortgage.
<br />The insurance carrier providing the insurance sirs!! be chosen by Borrower subject to approval by Leader;
<br />provided, that such approval shah not be unreasonably withheld. Ail gremiums on insurance policies shall be naid
<br />at Lender's option in the manner provided wider paragraph 2 hereof or by Borrower making pawnent, n'hen due.
<br />directly to the insurance carrier.
<br />In the event cry police 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 ASortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />tutder the terms of this iblortgage.
<br />Aii insurance policies and renewals thereof s .ail iii• in form acceptable to i,ender and shah include a standard
<br />mortgage clause Sn favor of and in fern acceptable to Lender. Lender shall have the rigitt to hold the policies and
<br />renewals i.hereof, 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 promo notice to the insurance carrier and Lender, and Lender
<br />mey make proof of loss if not. made prompth by Borron er.
<br />Unless Lender and Borrower otherwise agree in writing, insm:ance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided suci: restoration or repair is economically feasible and the security of
<br />this \Iortgsge is not thereby impaired. Ii satin restoration or repair is not economically feasible or ii lire security
<br />of this \iortgage would tie impaired, the insurance proceeds shall be aupiied to the sums c_eeured by this \iortgage,
<br />with the excess, if any, geld to Borrower. Ii tine Property is abandaneti be Ban'ower or ii Borrower fails fo respond
<br />to Lender within 34 days after notice b•r Leader to Borrower that the insurance carrier ou'ers to settle a claim fen
<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 b}- this \Iortgsge.
<br />Unless Lender sad Borrower otherwise agree ir, writing. any such application of proceeds to principal shall
<br />not extend or gostpune the due date of the month!}- installments referred to iu paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, ail right, title and interest of Borrower in
<br />and to any insurance policies and in and to the proceeds thereof ±to the extent of the sums secured by this ~Iort-
<br />gage immediately prior to such sale or acouisition~ resulting from damage to the Property :prior to the sale or
<br />acgai.:iiiatr shall pass to Lender.
<br />& Preservation cad Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair snd shall not, permit or commit waste, impairnrent. or iieteriorstior. ai the Property and shall
<br />wmply pith the protsians of ant lease, Sf this Mortgage is on a ;easehgld. If this \iortgage is on s condominium
<br />unit, Borrower shall perform aIl of Borroa-er's obligations under lire declaration ai condominium nr master deed,
<br />the by-laws and regulsticas of t e ccadar.;iriu;u project snd cgrstituent documents.
<br />7, Ptoieetioa of Lender's Security. Ii Borrower fails to perierrrr the covenants and agreen;ents contained in
<br />this Siortgage, or it any action or proceeding is commenced n hiclr urateriall}- anects Lender ~ interest in the Prop-
<br />erty, including, but not limited to, eminent domain.:nsolvenc}. tale eniorcenrent. or arrangements or proceed- ~
<br />lags involving a bankrupt or deceden€. Then Lender at Lender's optiaa. upon native to Borroc er, may make such ~p
<br />appearances, disburse such sums and take such action as is ucc•essan- to protect Lender's interest, including, but '
<br />not limited to, disbursement ai reasonable attorney's ices and errtr- upan the Property to make repairs. Any ~
<br />amotm€s disbursed by Lender atrrsuant to *_his psragraglr ;, rwrtlr imemst thereon, rtes!] become additional indebt- ,--
<br />edness of Borrower secured bw ~:ris \Iortgsge. Itntess Borrower at:d Lendec agree Lo other terms of payment, such -`
<br />aroounts clean be payable upan notice from Lender to Borrower requesting payment Thereof, and shall bear inter-
<br />est iron the da€a of disbursement at ?he rate stag: in *.Ire \ot~ unless payment ai iaierest at satin rata would be
<br />contrary to applicable law. in which event such amounts shat'. !tear interest at the highest rate permissible by
<br />applicable Isa°- tiothing contained in tins paragrap!, :steal! rer;uir~ Lender to incur any expense ar do any set
<br />hen:under.
<br />& Inspection. Lender may make or cause to l+r rrradc reasonable entries upon tint! inspections of the Prop-
<br />erty, prot:ded that Leader shall ghe Borrower naticc }prior to a,c surli inspe.°tiar, specitring reasonable cause
<br />themfor related rA Lender s interest in the Propert}-.
<br />9. Coaderanatian. fine gmceeds of any award or claim for damages, direct or consequential, in connection
<br />x•itlt any condemnation ar other tsktng ai the Prolxny, ar pan thereof, or 2or eanveyanc•e in lieu of eondemna-
<br />tioa, are hereby s_csigned snd shall he paid to Lender.
<br />l:n+_heeven€rf a±oi~l taking of the Progercy. the proseed~ rsll br applied to the sums set~ured fry this ~fort-
<br />gage, with the excess, if sac. »aid to Borrower. In rite event of a partial taking of the Property, unless Borrower
<br />cad Lender otherwise agree in writing, there shall be applied to the Burns secured by this \iortgage such gropor-
<br />tian of the proceeds as is equal to that proportion which the amount of the sums secured by this 1ortgage imme-
<br />diately prior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />tsuioag, withSdte balance bf the proceeds paid to Borrower.
<br />It the Property u abandoned by Borrower or if after notice be Lender to Borrower ±hat the condemnor offers
<br />to make an avrard or settle a claiz.-for damages, Borrower fails io respond to Lender within 30 days of the date
<br />of each notice, Lender is authorised to collect and apply the lroceeds at Lender's option either to restoration or
<br />repaiz of the Property or to the sums secured by this \iortgage.
<br />Unless Lender and Borrower othernise agree in writing, any such application of proceeds to principal shall
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