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if under fiaragraph l& i~erecf :i:e F'rrpert°.- i> aol~` or ai;e Property :, ,thenv~~e aegaired rc Lender, Lender
<br />-Lail apa.y, no lacer than immediately poor re ql~c .,,lo r.; rh+= Prvprrt.s or it_ aryui=itiua i,p bender. an:' F;mds
<br />1 , ~~••? r ~- tl:,• lion nasn
<br />f+eld by ender aL the time of ~a},i ti t :.;;a;r.-[ •6e _
<br />3. Applicetioa of Payments. Tinle~:} anc;hrahk lau nrovid~ other~z~i.~e. all ssaymert= received tsy Lender
<br />uncle; Lhe'-~:oie an<i paragraphs 1 ar:cl 2 hereof siiaii ?,c apt:fir-:1 f>y- I.ende* firs*_ in payrnea± : ; an;aurts payable to
<br />Lender :,y Borrower under paragraph 2 bereot, ther+ to inurrtst. payable on the, tote and on Future Advances, ii
<br />any, and then Lo the principal of ±he Sole and to the pnrcrpai of Furore a[ivanccs. ii any.
<br />4. Charges; Liens. Borrower shall pay all faze=. a=5essments and other charges, fines and impositions attriir-
<br />uiable Lo the Property which may attain a priority ever toil ~Iotgsge; and grotmd reds. if ar,}°, ae Lender's
<br />~ aption in ire manner provided under paragraph 2 hereof or b}' Bnrrox~er making payment, a-hen due. directly to
<br />~ the payee thereof. Bo:rnwer shall prompt]; furnish to Lender aI! notices of amounts due under this paragraph.
<br />and in the event Borrower shall make payment directly, Borrower steal! promptly furnish to Lender receipts evi-
<br />~ der:cing such payments. Borrower shall promptly discharge any !fen which has priority over this >tortgage; Iirn-
<br />r-ined, that Borrower shall not be required to discharge any sueir lien so long as Borrower shall agree in writing Lo
<br />the payt ,ent of the obligation secured by sucle lien in a manner acceptable to Lender. or shad in good faith contest
<br />such lien by, or defend enforcement of such Tien in, legal proceedings which operate to prevent the enforcement of
<br />~ the lien or forfeiture of the Property or ar.}• part thereof.
<br />~ 5. Hazard Insurance. Borrower shat! keen the nuprovemenis now existing or iremafter erected ot; the Prop-
<br />erly insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender tray require and in such amounts and ;for such periods as Lender mac requ;re: provided, that Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage required to pay Lhe sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject Lo approval by Lender;
<br />provided, that such approvaE shall rot be uareaso:tnbly withheld. All premiums on insurance policies shall be paid
<br />at Lender's optior, in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />Ier the event any policy is r:ot renewed on ar before ten drys of its expi ~tian, the twnGer, rn ..,roc
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum shah become
<br />iuunediately due and payable with interest at the rate set forth in said note until paid and shall be
<br />secured by this Mortgage. 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 Lender anu shalt include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the 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 shah be applied to restoration or
<br />repair of the Property- damaged. provided such restoration or repair is economically feasible sod the security of
<br />this mortgage is not thereb}• impaired. If such restoration m repair is nut economically feasible or if the secvnty
<br />of this 3ortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Aortgage,
<br />with the excess, if any, paid to Borrower If the Property is abandoned by Borrower or if Borrower tails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />irsurarcc bane*:is _T~nder ~v uthorized to caliert sod apply the insurance proceeds at Lender's optSor. either Lo
<br />rest~trati^n ar repair of tl?e Property or to the sums secured be this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due darn of the monthly installments referred io in paragraphs i and 2 hereof or change
<br />the amount of such insiaiimenis.
<br />If under paragraph iS hereof the Properly is acquimd by Lender, :~!1 right, title sod interest of Borrower in
<br />and to any insurance policies and in and to fife proceeds thereof (to rite extent of the sums secured by this MorL-
<br />g ae iru,,,rx.iately - - such _ale ~, a _ tionl resuit~ _ tram damage to ti:e Prapert~ pr .,. to the _sle .,.
<br />acquisition shalt pass3to bender.
<br />&. Preservation and tiaintenance of Property; Leasehaids; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit. or commit waste, impairment, or deterioration of the Property and shall
<br />comply with Lhe provisions of any lease, ii this Mortgage is on s leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shall perform ati of Borrower; obligations under [he declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Prataction of Lender's Security. if Borrower fails to perform the covenants and agreements contained in
<br />this \iortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />erty; including, but not limited to, eminent domain, insolvency, code enforcement-, or arrangements or proceed-
<br />ings involving 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 ss is necessary to protect Lender's interest, including, but
<br />apt limited ta, disbursement of ressonsble attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebt-
<br />coneys of Borrower secured 6y this ~Iartgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower reyuesting payrnent tharzoi, and shall bear inter-
<br />est from the date of disbursement at the rate stated in the Note unless payment of interest aL such rate would be
<br />contrary to applicable !aw, in which event such amounts shall bear interest aL the highest rate permissible by
<br />applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any expense or do any set
<br />hereunder.
<br />€. Inspection. Lender may make or cause io be made reasonable entries upon and inspections of the Prop-
<br />erty, pravidefl that Lender sha!1 give Borrower notice prior ro any such inspection specifying reasonable cause
<br />therefor related Lo Lender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In the event of a Le4*:I raking of the nri,pa~., ths. nrnrgtyls shall lie anolied to the sums secured by this Mort-
<br />- gage, with the excess, it any, paid to Borrower In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agrPa in writing, there shall be applied to the sums secured 6y this Mortgage such propor-
<br />tion of Lhe proceeds as is equal to that proportion which the amount of Lhe sums secured by this \4ortgage imme-
<br />diately prior io the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />io make sn sward or settle s claim for damages, Borrower fails io respond to Lender within 30 days of the date
<br />cf n:eh notice, Lender is authorized Lo caltect and apply the pinceecis at bender's option either to restoration or
<br />repair of the Property or to the sums secured by this \tortgsge.
<br />i.Ini~ Lender and Borrower oihern~ise agree in wri+,ing; any such application of proceeds Lo principal shall
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