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<br />If under paragraph 1$ hereof the Ymperty is sold or the Propert}• is otherwise. acquired by Lender. bender
<br />:hall apply, no later than immediately prior to the sale of the Property or its xrquisicimt by Lender, :env Funds
<br />held by Lender at the limn o{ application ss a credit against the sums secunxl ;,y this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, sIl paymenL~ received by Lender
<br />under the Note and paragraphs I and 2 hereof shall he applied by f.endcr first iu pay m,^nt of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable mt the Aotc turd on Future Advances, iE
<br />any, and then fo the principal of the Notc and to the principst of Future Advances. if any.
<br />4. Charges; Liens. Borrower shall pa}- all taxes, assessments and oilier charges, fines and lint ositimts attrib-
<br />ttt:able to the Property wyhich may attain apriority- over this Mortgage, anti ground rents. if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment, whet. Niue, directly to
<br />the payee thereof. Borrower shall prompth• tarnish to Lender alI notices of amounts due under this paragraph,
<br />and in the treat Borrower shall make pacment direct)}-. Borrower shall promptly- tartish to Lender receipts ev;-
<br />J dancing such payments. Borrower shall prompt)}' discharge au}' !ten which has priot•it}- over this Mortgage; nro-
<br />c:ided, 'that. Borrower shall not be required to discharge snc curb lieu so long as Borrower shall agree in writing to
<br />the payment of the obligation secured he such lien in a manner steep±able to Leader, or shall in good faith contest.
<br />~' such tier bv, or defend enforcement of snc:: lien ir,. legs' proceeding> tvhich operate to prevent the enforcement of
<br />the lien or forfeiture of the Property- m an}- part titcreoi.
<br />~ 5. Hazard Insurance. Borrower shall keep ti:c iua,roremencs now existing or hereafter erected on the Prop-
<br />erty insured against loss b}• fire, hazards included trithin ilia term "extended coverage".:uui such other hazards as
<br />Lender tray require and in such amounts and for such periods ss Lender ntay require: provided, that Lender shall
<br />~ not require that rho amount of snob coverage exceed tilt amount of coverage required to psq the sums secured by
<br />this 1#ortgage-
<br />The insurance carrier prodding the insurance shall be cito;en b} Borrower suitiect to approval by Lender;
<br />provided, that such approval shall not be unreasonably- withheld. all premiums on insurance policies shall be paid
<br />at Lender ~ option in the manner provided under l,arsgrsph °hereot or by Borrower making pa}'meat-• when due,
<br />directly to the insurance carrier.
<br />In the event any 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 Aortgage. Failure by Borrower to comply ma}•, at option of Lender, constitute a default
<br />.radar iL'< ie^n~ of ibis 1#or+.gage.
<br />X11 insurance policies and renewals thereof s!;a!1 he in form aecentsble to Lender and shall include s standard
<br />mortgage clause in isyor of and in ions srcu,tshle to Lender. Lender shall hate the right to hold the policies and
<br />renewals thereof, and Bortrow-er shall promptly- tarnish to Lender all renewal notices and stl receipts of paid pre-
<br />miums. In the areal of lox:, Borrower sita!I give prompt notice to rite insurance carrier and Lender, and Lender
<br />may make proof of loss ii not made promptly- br Borrower-
<br />Ltnless Lender and Borrower otherwise agree in writtteC. ansurar,cc proceeds shall be applied to restoration or
<br />repair of the Prapeny damaged. pmridetl such restoration or rrnair is eronomirallc iessible attd the security of
<br />this l#origage is not thereby unpaired. IC such resroratiou ar repair is not ecanomicsllr feasible or if the security
<br />of this jortgage would be impaired, rite insursr,ce procecu.~ shaii be applied to the sutra secured b}- this Aortgage,
<br />with the excess. if any, paid to Borivwer. Ii tl:c Yropett} t, abandoned b}- Borrower or ii Borrower fails to respond
<br />to Lender within 30 days niter notice by- Lender to Barrower that the insurance carrier ener to settle a claim for
<br />insurance benefits, Lender is authorized to collect smi apply- the insurance proceeds st I-cadet's optior: either to
<br />restoration or repair of the Property- or to the sums secured by- tltis \lortgsge.
<br />Unless Lender and Borrower othern-ise agree in writing, any su,h applicsuott of nroeeeds to principal shalt
<br />not extend ar postpone the due date of the monthly- installments referred to ir. paragraph; I and 2 hereof or change
<br />the amount N such installments.
<br />if under paragraph IS hereot the Yrooem- is acqutred by- Lender, ail right. title and interest of Borrower in
<br />and 24 an}- insurance iuiicies and in std to the }troceeds thereof tto rite extet:t o the sums secured by this \iort-
<br />gage immediately print to ,ach sale or scgttisit:on~ resulting iron daa~tage to the Property I~rt=s to the sale or
<br />acquisition shall ps` to Lender.
<br />G Preservation and Maiaten®ce of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />ettiy in good repair and shall not hermit or <•om:nit was*.e. itnpsirment. or ,eteriorstiott of rite Property and shall
<br />comply with :he provisions of any !else, ii this Mortgage is ot: s leasehold. Ii this \Sortgaee is on a condominium
<br />emit, BorlLwer hail periprn, all of Rnnnwe*; _t?ligati0u- ~ . _. .. L_. teen of c.^.ndotriu:um or master deed,
<br />the b}'-lave= and regulation; of the condominium protect and constitcent•documerts.
<br />?. Protxtion of Lenders Security. Ii Bo±•rotrzr tails to l~eriamy the cmenants sari sereements contained in
<br />this \Sortgage, or ii anv action cr proceeding : con:nience4i whici~ nstersliw- stT~ts Lender s interest in the Prcp-
<br />eaiy, including. but not limited to, eminent dout:un. u„ohrnvy. code eniorcentent. or srrnugeurent, or proceed-
<br />ings invo7ring a bankrupt or decedent, then Lender a*. Let„ter. Dalton. upon notice to Borrower. may make such
<br />appearance,, disburse such sums and lake such ac+.inn as is ncee~san' to pn~tert Lender's interest. including, but
<br />not limited to, disbursement. of ressonaia!e attorney- ii~er ;and earn' upon the Propert to make repair. any
<br />amounts disburser) by Lender par-usri ro this paragranit-. with interest thereon, shall become additional indebf-
<br />edness of $orrower secured be tits 1lartgage. Ltnle~ Borrower and Lender agree to other terms of payment, scab
<br />amounts shaii be payable. upon native front Linder to Borrower reouestin~ payment *.hereot, and shall bear inter-
<br />est from the dame of disbursement at the tart ,rated in tl:e \otc unless psrme::t of irtcrest at such rate would be
<br />coaL*'arv is applicable isu-, ;n whirl: event s....t amount- <hall tsar interest at the highest rate permissible br
<br />applicable lap-, \othing contained ir. this paragraph eha;i inquire Linder to incur any expense or do any act
<br />hereunder-
<br />8. In~aetian. Lender tray rnalte or pause to lu made reasot;st:lc er.•tries upor. and inspections of the Prop-
<br />erty, prodded that Lender shall give Borraw'er notir-c• lacier to a;,y st:,~3, in>pectirn specifying reasonable cause
<br />therefor related to Lerniei s interim t in the Proaerl-.
<br />S. Ca®detamation. The proceeds of aeti award ur claim is ,iamsge:, direct or consequential, in connection
<br />with any condetnz:ation nr other taking of the Prol>t•m-. or Ilan rhereni, nr far roureranre in lieu of condentna-
<br />Lion, are hereby assigned sad shall he paid re Linder.
<br />In the event of a torsi taking of the Property-the pracreda =hall bt• applied to the awns secured b}• this1Sort-
<br />gage, with the excess, ii an}', paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall be app}led to the ;ant; secured by this Mortgage such propor-
<br />tion of the proceed; as i3 aqua] to that proportion u i=ich the amount of the win; secured by this ~Sortgage imme-
<br />diately prior to the date of taking bears to the fat; market value of the Propent• itnmcdiateh• prior to the date of
<br />taking, with the balance of the proceet?_; paid to Borrower.
<br />Ii the Property is abandoned by Borrower or if steer nouct• by Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim for damages, Borrower fa:L to respond to Lender within 3U days of the date
<br />of such notice, Lender is authorized to eolleM and apply the proceeds at Lcntier's opt-ion either to re-etoration or
<br />repair of the Property or to the sums secured by this \[ortgage.
<br />Unless Lender and Borrower othern-ise agree in wriiing, any such application of proceeds to principal shall
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