|
<br />If under paragraph IS hereof the Property is sold or the property is otherwise acquired b}• Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Yropert-c or it> acquisition by Lender, nny Funds
<br />held by Lender at thv' time of apphcatior. as a credit against the. sums secured by this \-Iortgagc.
<br />3. Application of Payments. Unless applicable law provides otherwise, :al payments received by Lender
<br />under f-he ?dote and paragraphs I and 2 hereof shall he applied by- Lender first in payment of atnounts payable to
<br />Lender by Borrower under paragraph 2 ilereoi, then to interest payable a1 the Tote and on Future Advances, if
<br />any, and then to the principal of the Vote and to the principal of Future Advances. it any.
<br />4. Charges: Liens. Borrower shall pay all 'taxes, assessments and other cll:trges, fines and impositions attrib-
<br />utable to the Property n•hich may attain a priority over this \iortgage. snd firotmd rents, if auy, at Lender's
<br />option in the manner pmcided under paragraph 2 hereof ar be Borrower making }taymant, 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 mskc payment directl}.Borrower shell promptly iurnish to Lender receipts evi-
<br />denting such pa}:menu. Borrower shall promptly discharge ary lien which has priority over this Mortgage; pro-
<br />^'i 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 b}• such lien in a manner acccpiable to Lender, or shell in good faith contest.
<br />~' such lien by; or defend enforcement ai such Tier, in, legal proceedings tcl:ich apertte to prevzrt the enforcement of
<br />the lien or forfeiture of the Property or sm• part thereof.
<br />~ 5. Hazrad Insurance. Borrower shell keep d1e impmventetas now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", sad sudt other hazards as
<br />~ Lender tnsy require and in such amounts and for such periods as Lender mac inquire: provided, that Lender shall
<br />~ not require that the amount of such coveragz exceed that amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing die insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be tutressonabh- wii.hheld, All premiums an insurance policies shall be psid
<br />at Lender's option in the manner provided under paragraph 2 hereof or he Borrower making pscment, 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 interes*_, may procure insurance on the improvements, pay the premiums and such sum shall become
<br />immediately due and payable with interest at the role set forth in said note until paid and shall be
<br />secured by this Mortgage. Faiitue by Borrower to comply may, at option of Lender, constitute a deiauii
<br />under the terms of this Mortgage.
<br />911 in_c-trance policies and renenals thereot" shat] be in fonu acceptable to I-ender and shall include a standard
<br />mortgage clau_ce in isvor of and in form scce+ptable to Lender. Lands-r shell have the right to hold the policies and
<br />renewals thereof, and Borroner shall promptly iurnish to Lender sli renewal notica~ and ell receipts of paid pre-
<br />miums, in the Brent of loss. Borrower shell giro ysompt r:aticz to the insurance carrier and Lender, and Lender
<br />map make proof of loss i# not made promptly be Borrower.
<br />Inless Lender and Bormn•er otherwise agree is writing. insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged. provided such rrtoration or repair is econantieall}- iessible snd the securiiv of
<br />this Mortgage v not thereby impaired. Ii such restoration or repsir is not economicsllc feasible or if the security
<br />of this Mortgage would be impaired. the insurance proceeds shall 1>e applied to the sums secured be this ;'.iortgage,
<br />with the excess, if any. psid to Bnrrowzr. Ii die Y:•olserty is abandoned by Borrower or ii Borrower fails to respond
<br />to bender within 30 days after notice by Linder to Borrower that the insurance carrier offers io settle a claim for
<br />insurance benefits, Lender is suthorzed to collect and apply the insurance proceeds st. Lender's optior. either to
<br />restorsiian ar repair of the Pmpert}- or to the sums secured by this \iortgage.
<br />Unle~ Lender and Borrawer othencise agree in writing, env such soplication of proceeds to principal shall
<br />net extend or postpone the due date of the monthly installments referred to in paragraphs l snd 3 hereof or change
<br />the amount of such itt.°tallments.
<br />If un,'+er paragraph I$ hereof the Property is acquired by Lender, sl! right. titl? and interest ai Borrower in
<br />and to any insurances policies srd in and to the proceeds thereof tto tfte za-tent of the sums secured b}• this ~fort-
<br />gage immediately prior to such sale or arquisir_on{ rzsultin__ iron dsmsge *o the Yropertc pr_.,r to the sale or
<br />acquisition shall pass to Under.
<br />& Aresescatioa cmd Mt~.tentmee o: Property: Leaseholds: Condominiums. Borrower shell keep the Prop-
<br />erty in goad repsir and sha31 not permit or cemtnit waste. impait:ttent. ar deteriora*.ian of the Propert}' and shall
<br />camgiy with the provisions of any lease, if this \Iortgsge is on s lease}:oid. ii this \iortgage is on a condominium
<br />unit, Borrower shall periotm all of Borrower's abIigaticros under the dzciarstian of candontininm or master deed,
<br />tine t>y-laws snd regulatfon_= of the condominium protect srd constituent document;.
<br />7. Protoelsoa of Leadei s Seeuritg. li Barrowzr iai!s to perform the caversms and agreements contained in
<br />this liortgege, or ii any setion or proceeding i; cammen-°ed whist; msterisll}• a3erts Lender ~ iniertist in the Prop-
<br />erty, inrduaing, but net limited to, eminent datnsin. in~olcencc, cadr zniorcentem. or srrsngements or proeeeti-
<br />ings incolvitsg a bankrupt ar dec~eni, they: Landes st i.ender s option- upor. notice to Borrower. may make such
<br />appearances, disburse such stnns snd ta'se suet: setiaa as is necesssrc to protect Lender's interest, 'tnrIuding, but
<br />not 5mite.3 to, disbursement ai sessanable attorney's izes snd entn~ upon the Ptronertv to snake repairs. 9ny
<br />amounts disbursed by Lender put~usrt to this asrsgrapl::. with interest thereon, shell betrome additional iadebt-
<br />tsdn~ of I3orrovrer secure-d ur tnis Aia-tgag~•. l'niess Harrower snd Lender agree to other *_erms ai payment, such
<br />amounts shall be payable upon nat.re ironer Lander to Borrowes requesting payment tlieteoi, and shall bear inter-
<br />est from the dale of disbursement at tltz rate stated in the tiote unless payment of inieresL at such rate would tie
<br />toatsary to agghcabe lave. ir. which e:-ent such amaunt~. shall hear interest at the highest rate pertnisaibte by
<br />a}~liesble law. \othing cantssne{s ir. this Ixarag^aph 7 shall rt~tlutre Lender to incur ant expense or do any set
<br />.
<br />& Impeetiam. Lender trsv maL-z or settee to Ix made masonsblc• entries upon and i:,spettions of the Prop-
<br />erty, provided that Lender shaPi give Borrawer rntttr ;prior to am sort: mspeMion specifying reasonable cause
<br />therefor reiat~ to Lender's interest in the Progeny.
<br />~ Caodet®atiae~ 31te pro.-Eeds of say sward ar claim for damages, direce or consequential, in connec#ion
<br />with any t~deatnation or other taking of the Profxn}•, or part thereof. or for eonceyance in !feu of cordemna-
<br />tioa, arc hmteby assgned attd shall be paid to Lender.
<br />In the event of a total taking of the Property, ts,t, pznczecis stint! ate applied to the sums secured by this ~iort-
<br />gage, with :~ et.tx~as, if any, pain to Borrower. In the event of a partial taking of the Propem,-, unless Borrower
<br />anti Ltmder otherwise agree is aritittg, tl>ere shall be applied to the sums secured by this Afartgage such propor-
<br />t70II Of site p•'8 as ffi equal to that proportion which the amount of the some secured b}- this ?iortgage imme-
<br />diately prurto the date of taking heats to the fair markzt vsluz of the Ptaperty immediately prior to the date o{
<br />taking, witkt the balance of the proceeds paid to Borrower.
<br />u the Pmgerty is abandoned by Borrower ar if after notice Uy Lender to Botron•er that the condemnor offers
<br />to make en award or settle a claim fir datnag+r«. Borrower fail= to respond to Lender within 3t1 days of the date
<br />of auclt notice, Louder is auihoriaed to collect and aprtl}' thz proceed; at Lender's option either to restoration ar
<br />repsir of the Property or to the sums secured by this \Iortgsge.
<br />(3nIess Lender and Borrower oihertvi~ agree in writing, any such application of proceeds to principal shall
<br />
|