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<br />If under paragraph 1$ hereof the Property is sold or rhr Proprrt7 is otherwise acquired by Lender, Lender
<br />shall apply, no later than nnmediateh• prior to ihr, sale of the prolzert}- or it, acquisition be Lender. any Funris
<br />held by Lender at the time of applicatiwr its s ezcilit against the some secured by this V~Iortgage.
<br />3. Application of Payments. Unless applicable fan' provide. otherwise, all payments received br Lender
<br />under the Note and paragraphs I and 2 hereof shall he applied by Lender &rst in payment cf amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, theu to interest payaldc on the Vote and nn Future Advances, if
<br />any, and then to the principal of the Note earl to the principal of Future Advances, if any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments ;earl other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority over this ~-Iortgssge, 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 furnish to Lender all notices of smounts due under this paragraph,
<br />and in the event Borrower shall wake payment. directly, Borrower shall prompt.iy furnish to Lender recsipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Borrower shat' spree in writing to
<br />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, or defend enforcement of such lien in, legal proceedings which ol?erate to prevent the enforcement of
<br />the lien ot• forfeiture of the Property or any part thereat.
<br />5. Hazard Iasuraaee. Borrower shall keep the i:nnrovements note existing or hereafter erected on the Prop-
<br />erty insured rgainst loss by fire, hazards included within the term "extended coverage", and such oilier 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'b}•
<br />'this \iortgage.
<br />The insurance carrier providing the insurance shall 6e chosen be Borrotcer subject to approval by Lender;
<br />provided, that such approval shall ro[ be unreasorshh- withheld. Ali premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under psragraplt ?hereof 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 Ibiortgage. 1''aalure by Borrower to comply may, at option of bender, constitute a default
<br />under the terms of this ltiortgage.
<br />All insurance policies and renen•als thereof shall be in form acceptable to Lender sod shall include a stsndanf
<br />mortgage clause in favor of and Sn form acceptable to Lender. I-ender ;hall have the right to held the policies sod
<br />renewals t.heree#, and Borrower shall promptly furnish io Lender sli renewal notices and sll receipts of paid pre-
<br />tnit_ms. In the event of loss, Borrower shall pit e prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly i;y Borrower.
<br />Unless Lender and Borrower othernise agree in writiug, insurance proceeds shall be applied to restoration or
<br />~ repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br />~ this 3iottgage is not thereby impaired. It such restoration m- repair is not economically feasible or if the security
<br />~y of this \iortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this 1lfortgage,
<br />~ with the excess, if any, paid to Borron er. If the Property is abandoned by Borrower or ii Borrower faits to respond
<br />~ to Lender within 30 days after notice by Leader to Borrower that the insurance carrier offers to settle a claim for
<br />_ inanrnnee benefits, Lender is authorized to coLeci and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or tc the sums secured by this Mortgage.
<br />t71 Unless Lender and Borrower othencise agree in writing, anc such application of proceeds to principal shall
<br />l~ net extend or postpone khe due date of the tnonthl}' installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such insialiments.
<br />If trader paragraph 1$ hereof the Property is acquired by Lende*, all right, title and interest of Borrower in
<br />sad to any i-tstrranee policies sod in and to the proceeds thereof ,to fire extent o*" the su*.n soured be this '_liort-
<br />gage immediately prior to such sale or acquisition i resulting from dsntsgc to tl;c Propert} ;prior to the sale or
<br />segtriffition shall pass to Lender.
<br />& Proseraation and Maier#eaaace of Properly: Leaseholds; Condoxniaiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not p?emit c.* commit was*.e, impsirnzer*., or deterorstior, of the Property and shalt
<br />comply wixh the provisions of any ieae, ii ibis \iongsge is un a lessel:ol,i. If this ~Iongage is on a condominium
<br />unit, Borrower shall nerfonn all of Borrcuer'_ obligstion~ under the deciarition of rondominium or master deed,
<br />the by-laws and regulations. of the condomirium }vojrct and cor.stftz;ent documents.
<br />7. Protection of Lender's Security. Ii Borrower ists> to prror.^.; the eovrrzsnts and agreements contained in
<br />than liortgage, or ii any action or proceeding is comtnr~cc+i „h3rh :steriaiiv at+.rrts Lender-e interest in the Prop-
<br />erty, including, box noc limned *_o, eminent domsam.:n-owrnry. ezAfr rnforcemi•at. or arrangenzenxs or proceed-
<br />ings invehing a bankrilpt or decedent; teen Lender :s: i.endrr'- optton upat: notice to Borrower, may make such
<br />appearances, disbtttse such sums and take suci: eerier: as ,. r;rcesary- to protrc*. Itnder's interest, including, but
<br />not limned to, disbursement of reasonable sttomey's fermi and entry- upon the Property to make repairs. Any
<br />amountadisbursed by Lender pursuant tc this pat-agr33rh i. uiti: interest thereon. snail become additional indebt-
<br />~ae€s of Burrower secured 1sy ti.s \ioY«gsge. Unic~= Born3tt er and Lender sgrrr to other terms of paymeni, such
<br />smounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall hear inter-
<br />e~. from the date of disbursement at the rate stated in the tiote unless payment of interest st sucFi sale would be
<br />contrary W applicable Ian-, in which event suet; smounts shall bear interest ax the highst rate permissible by
<br />applicable law. \othing rnntaintai in ti,is paragraph ;snail mgmre Lender to incur any expense or do am ac[
<br />bereuwier.
<br />& shaft. Lender rosy make or rsuse to },c. made reasonable entries upon and inspections of the Prop-
<br />erty, provided That Lender shall give Borrower notice Irrior to any such inspection specifying reasonable cause
<br />• there#or related w Lender's interest in the Property.
<br />9. Cam. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any zondem;;stion or other taking of the Property. or hart thereof, or for conveyance in lieu of condemns-
<br />tian, are hereby assigned and shall Ise paid to Lender.
<br />In the event of a tetal raking of the Property, the proceede shall be applied to the sums secured 6y this liort-
<br />gage, with the t~c2ss, it any, paid to Borrower. In the event of a uartial taking of the Property, unless Borrower
<br />and bender othertc•ise agree in writing, there shall be applied to the emus secured by this ?fortgage such propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the sums secured by Phis Jiartgage imme-
<br />' diately prior to the date of faking beats to the fair market value of ti:e Property immediately prior to the date of
<br />taking, wirer tie balance of the proc~ds paid to Borrower-
<br />IS tie Property is abandoned by Borrower or if after notice b}- Lender to Borrower thai the condemnor offers
<br />to make an award or settle s claim for damages, Borrower fails to respond to Lender within 30 days of the date
<br />of each notice, Lender is authorised to collect and apply 'the proceeds at Lender's rption either to restoration or
<br />repair of the Property or to the sums Berm-ed by this _ltortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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