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<br />If under paragraph IR hereof the Property is sold or the I'rnpert}~ ~~ nthr~rwir~~ ,~+•yuircd f,y Leader. Lender
<br />.,hall npply, no later than immediately rninr to the sale u! th,• Prnpeny nr rta ;u•quisuioa iw Lender, :un• funds
<br />held by bander at the time of application as a credit against the ~um~ ,rrumd h~~ tl~Ss Mertgar~~.
<br />3. Application of Payments Unless applir•ahlc f:rtc hrasi,le~ nthernisr, ail pa}'meut< rrseive•~i he Lender
<br />under the'_~iote and paragraphs 7 and 2 hereof shall Le applies! h~ Candor fiat in ps}~;nc•nt of amounts payable to
<br />Lender by Borrower under I~aragraph 2 hereof, then to intemst psva6lc on the Aofc ;tnd on Future ddvances, if
<br />any, and then to the principal of Ghe :V`otc and to the principal of Fabler ,ldvauces• ii any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attrib-
<br />utable to the Property which may attain a priority over this ~Sorigagc. and grmmii rents, if any, at Lender's
<br />option in the mariner provided under paragraph 2 hereof or be Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall prompth• furtisl: to Lender all notices of amounts due under this paragraph,
<br />~ and in the event Borrower shall make payment directly, 1orrower shall prompth iurnish to Lender receipts cvi-
<br />~'.~ denting such payments. Borrower shall prmnpth• discharge any hen which bas priority over this Mortgage; pro-
<br />~ vided, that Borrower shall not be required to discharge any- such lien so long as Bm•rower shall agree in writing to
<br />~' the payment of the obligatimt secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />~ such lien hy, or defend enforcement of such lien iu, legal proceedings which operate to prevent the enforcement of
<br />~ the lien or forfeiture of the Property or an}• part thereof.
<br />! 5. Hazard Insuraaee. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />~ arty insured against loss by fire, hazards included within the term "ex±ended coverage", and such other hazards as
<br />tv Lender may require and in such amorous and for such periods as Lender mac require; provided, that- Lender shall
<br />not require that the amount of such coverage exceed ti:at amount of coverage required to pay the sums secured 6y
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonahh withheld. Ali premiums at insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph '? hereof or 6y 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 ra*e set forth in said note until paid and shall be
<br />secured by this lblortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />Ail insurance policies and renewals thereof shall be in form acceptable to I:ender and shall include s standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall lave the right to hold the policies and
<br />renewals thereof, and Borrawer shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of ions, Borrower shall Bice prompt notice to dte 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 in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is economically tensible and the security of
<br />this 3fortgage is not thereby impaired. if such restoration or repair is not economically feasible or if Ehe security
<br />of this Mortgage would be impaired, theSnsurance proceeds shall be applied to the stuns secured by this Mortgage,
<br />with the excess, if any; paid to Borrower. Ii the Yrohet-ty is absndoned by Borrower or ii Borrower fails to respond
<br />to Lender within 30 days alter notice by Lender to Borrawer that the insurance carrier ofl-ers to settle a claim for
<br />insurance benefits, Lender is authorized to collect snd apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Properly or to the sums secured he this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application ot- proceeds to principal shall
<br />not extend or postpone the due date of the ntonthh- installments referred to in paragraphs 1 and ?hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Propert.c 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' ito the extent of the sum. secured by this 3fork-
<br />gage immediatel}- prior to such sale or acquisition ~ resulting from cfsmage io the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation sad Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit or commit waste, impairment, or deteriorstion o2 the Property and shall
<br />comply with the provisions of any lease, ii this Mortgage is on s leasehold. If this \Sortgage is on a condominium
<br />unit, Borrower shall perform all of Borrowei s obligstions under the declaration of condotinium or msster deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Protection of Lendei s Security. If Borrower fails to pertonu the covenants and agreements contained in
<br />this Jortgage, oz if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty, including, but not limited to, eminent dmuain, insoh-ency. e•ocic enforcement, or arrangements ar proceed-
<br />ings invoking a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums and take such action as ;: necessar}• to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's lees and c'ntn- upon the Property to make repairs. any
<br />amounts disbursed b}' Lender pursuant to this paragraph i, with interest thereon, shall become additional indebt-
<br />edness of Borrower secured 6y this \iortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />eatfrom the date of disbursement at the rate slated in the Note unless payment of Snterest at. such rate would be
<br />contrary to applicable law, Sn which Brent such amounts shall bear interest at the highest rate permissible by
<br />applicable law-. Nothing contained in this paragraph "shall require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Iaspeetion. Lender map make or cause to he made reasonable entries upon anti inspections of the Prop-
<br />erty, provided that Lender .halt give Borrower notice prim• to ;un- sur•h inspection specifying reasonable cause
<br />therefor related to bender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in conneeticn
<br />with any condemnation ar other taking of the Property, or part thereof. or for c•onvevance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceed. shall be applied to the sums secured by this Mort-
<br />gage, with the execs,, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender othernise agree in writing, there shall he applied to the stuns secured by this Mortgage such propor-
<br />• lion of the proceeds as is equal to that proportion which the amount of the sums secured by this lortgage imme-
<br />diately prior to the date of taking bears to the fair market value of the Prouerty i;rmediately prior to the date of
<br />taking, with the balance of the proceMs paid to Borrower.
<br />If the Froperty is abandoned by Borrower or ii after notice by Lender to Borrower that the condemnor otTers
<br />W make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days of the date
<br />of such notice, Lender is authorized to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Bon•ower otherwise agree in writing, any such application of proceeds to principal shall
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