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<br />If under paragraph 18 hereof the Property is sold m the Property is othen+•ise acquired by bender, Lender
<br />shall apply, no later than immediately prior to d:c sole of the 1'roperh• or it., acquisition by Lender, env rands
<br />held by Lender at t-he time of application as a credit against the sums secured Pay this aortgage.
<br />3. Application of Payments. Unless applicah!c l:zw provides otherwise, oil payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof slsall be applied b}- Lender fir_t in payment o[ amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the \ote and on Future ?.dvsnces, if
<br />any, and then [o the principal of the 4ote and to the principal of Future advsrces, if any.
<br />4. Charges: Liens. Borrower shall pay all taxes, assesstnents and other charges, fines and impositions attrib-
<br />ui;able to the Property which may- attain a priority over this ~'Iortgage, 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 iuruis6 io Lender atl notices of amounts due under this paragraph,
<br />~ and in the event Borrower shall mske nayment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />denting such payrzzenw. Borrower shall prompt l• discharge any lien which bas pt•iority ever this Mortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge asrc such lien so long as Borrower shall agree in writing to
<br />~ the payment of the obligation secured by such lien in a moaner acceptable to Lender, or shall in good faith contest
<br />Q svch lien by, or defend enforcement of such lien in, legal proceedings which operate to precen* the enforcement of
<br />~ the lien or forfeiture of the Property or sm• part thereof.
<br />5. Ha¢esd Insurance. Borrower slsall keep the nnprovements now existing or hcresfter erected on the Prop-
<br />erty insured agairst loss b}' fire. hazards included within the term "extended eocerage", 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 coces•age exceed that- amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance slsall be chosen by Borrower subject to approcsl by Lender:
<br />provided, that such approval shall not be unreasonably withheld. all premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided order I+aragraph ?hereof or by Borrower making payment, when due,
<br />dire„-`ply to the insurance carrier.
<br />In the event cry 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 />itmediately due and payable with interest at the rate set forth in said note until paid and stall be
<br />secured by this hortgage. Failtrre by Borrower to comply may, at option of Lender, constitute a default
<br />~~n.lnr the tPrmc ¢f tlz~c Mortgage.
<br />all in`,uranee policies and renewal thereof shall be in ions scceptsble to Lender and shall include a standard
<br />tnodgage clause in favor of and in form acceptable to Lender. Lender shalt have file right to hold the policies sad
<br />renewals thereof, and Borrower shall promptly furnish #o Lender all renewal notices and all receipts of paid pre-
<br />mittms. In the event of loss, Borrower snail give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />IInless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Propertc damaged, provided such restoratoa or repair is economically feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such restoration or repair is not economicslh- feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this :tfortgage,
<br />with the excess, if any, paid to Borrower. Ii the Yzropenc Ss abandoned by Burrower or ii Borrower fails to respond
<br />to Lender within 30 days sf#er notice by Lender to Borrower That the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is sutharized to collect and apply the insurance proceeds st Lender's option either to
<br />restoration of repair oY the Property cr to the gums secured by ibis 1ortgage.
<br />Unless Lender and Borrower otherwise agree in writing, an}• such application of proceeds to principal shall
<br />oat extend or postpone the due date of the months} installments referred to in paragraphs 1 and ?hereof or change
<br />the 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 tto the extent of the sums secured by this ?ilort-
<br />gage immediately prior to such sale or acquisition'+ resulting from damage m the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />fi. Pre>sarvat=an sad Maintenance of Property: Leaseholds: Condoraiaiuau. Borrower anal! keep the Prop-
<br />erty in goad repair and shall no: permit or commit waste, impairment, or deteriorstlon of the Property and shall
<br />comply with the provisions of any lease, if this \Iartgage is on s leasehold. It this Mortgage is on s condominium
<br />urzit, Borrower shall perform all of Borrower ; obligations under the declaration of condominium or master deed,
<br />t#ze by-laws and :~gsrlations of the condominium project and constituent documents.
<br />7. Proteelion of Leader a Security. li Borrower fail to neriorm the covenants and agree,-:cats contained in
<br />this Mortgage, or if am action or proceeding is commenced which tnsterislly affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent dom-sin, insolvency. ende enforcement. or arrangements or proceed-
<br />ings invalcing a bankrupt or decedent, then Lender at I-ender's option, upon notice to Borrower, tnsy make such
<br />appearances, disbttrse such sums and take such action ss is necesssn- to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's lees and earn, upon the Propertc to mske repairs. Aay
<br />amounts disbursed by Lender pursuant to this paragraph ", with interest thereon, shall became additional indebt-
<br />edress of Borrower secured by thss mortgage. Unless Borrower and Lender agree to other Terms of payment, svch
<br />amounts shall be payable upon notice franz Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est from the date of disbursement at the rate stated in the \ote unless payment of interest at such rate would be
<br />contrary to applicable law, in which erect such amounts shall bear interest at the highest rate permissible by
<br />applicable law. \othing contained in this naragraph ;shall require Lender to inter any expense or do any act
<br />heretmder.
<br />8. Iz>opeetioa. Lender may znake or rsti-e to lk made srasonshlc carries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower notice Ieior to any sorts in~pectian specifying reasonable cause
<br />therzfor related to Lender's interest in the Propertc_
<br />1 Casder~atmn. The proceeds or any award or claim for damages, direct or cansequertial, in connection
<br />with soy eaudemnatian ar other taking of the Property. or part thereof, or for conve},once in lies: of condemns-
<br />tirm, are hereby assigned and shall be paid to Lender.
<br />In the event of s total taking of the Property, the proceeds shall be applied to the sums secured by this ~Iort-
<br />gage, with the eseess, if any, paid to Borroner. In the event of a partial taking of the Yropetty, unless Borrower
<br />and Lender othercr'sse agree in writing, there shall be applied to the sums secured b}• this Mortgage such propor-
<br />tion of the l,roeeeds as is equal to that. proportion which the amount of the sums secured by this ]Iortgage imme-
<br />dutelg prior to the date of taking beats to the fair market value of the Propem- immediately prior to the date of
<br />taking, with the balance of the praeceds paid to Borrower.
<br />If the Yrraperty is abandoned 1* Borrower or ii after notice by Lender to Borrower that the condemnor offers
<br />W make an award or settle s claim far damages, Borrower isils to respond to Lender within 3o days of the date
<br />of such notice, Lender is suthoriaed #a collect and apply tlse proceeds at Lenders option eitlser to restoration or
<br />repair of tlse Property or to the-sums secured by this Mortgage.
<br />Unless Lendei and Borrower otherwise agree in tvrting,• any such application of proceeds to principal shall
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