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If cinder paragraph 18 hereof the Yroperty is solri or tiic• Yropert} is oihcnsiie ace;aired by Lender. Lender
<br />Thal] aL~pl}•, nn later titan immediately prior to the sale ai the Protlir•rt}~ or it_a accgri~ittvn be Lender, gray Funcls
<br />head by Lcru:fcr cat the time of aI>l>lication as a creclii against the smc:> xecurrd he• thi- 'mortgage>.
<br />3. Jlpplication of Payments. Unless attplicabie law tarovic;es otherwise>, all pa}•rnents rc;•ccivcd by f.,ender
<br />under the ~ot~e amt paragraphs 1 and 2 hereof r,ltal! i~,c applied by Lc=nder fir9t in payment of amounts payable io
<br />L,cnc[er Lsy Bvrrvwer under paragraph 7 hereof, then ±o inw~rest pa}•a3ilc on the Xotc and on Future advances, if
<br />any; and then to ±he principal of the Aote and to the principal of huture advances, it' any.
<br />4. Chazyes; Liens. Borrower shalt pay all taxes, assessvnenis and other charges, Fines and impositions attrib-
<br />utable tv the Property which may atiain a priority over this Mortgage. an<! groamd rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof yr 6v Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shad prmnptly furnislr to I,encicr all notices oC amounts due under this paragraph,
<br />p~ and m the event Borrower shall make payment directly, Burrower =hall promptly furnish to Lender receipts evi-
<br />(~ denting such payments. Borrvwer shall promptly discharge any lien which has Iriority over this Mortgage; pro-
<br />vided, that Borrower shall not be required to disc•hart;e an}• such lien so Tong as Borrvwer sha!1 agree in writing to
<br />(~ the payment of the obligation secured by such lien in :a manner accept abl. to Lender, or shall in good faith contest
<br />Q such ]ion by, or defend enforcement of such lien in, legal proceedings tchich operate to present the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />Qy 5. Iiaaard Insurance. Borrower shall keep Ii:c im;~rovetnents nvw existing or hereafter erected on the Prop-
<br />n erty insured against loss by fire, hazards included within il?e term "extended coverage", and such other hazards as
<br />~ Lender may r2yuire and in such amounts anti for such periods as bender may recuirc; provided, that Lender shall
<br />noL require that the amount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />This Mortgage.
<br />T'he insurance carrier }providing the insurance :hall be chosen b}- Borrower subject to approval by Lender;
<br />provided, that such approval shalt nut be nureasonabiy withhdld..A11 premiums on insurance policies shall be paid
<br />at Lender's option in t-he manner provided under paragraph 2 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 vn the improvements, pay the premimns and such sum shall becora~e
<br />immediately 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 !nay, at option of Lender, constitute a default
<br />under fhe terms of this Mortgage.
<br />All insurance policies and renewals thereof shall he it? fora? acceptable to Leader and shall include a standard
<br />mortgage clause in favor of and in form acceptable tv Lender. Lender shalt 1?aye the right Y.v hvld the pvlicies and
<br />renewals thereof, and Borrower shall promptly furnish io 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 othernise agree in writing, insurance proceeds shall be applied to restoration. or
<br />repair of the Property damaged, provided such restoration or repair is economir<ilh' feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not econvmicaEly feasible or if the security
<br />of this ~Sort.gage would be impaired, the insurance proceeds shall he applied to the suns secured by this Mortgage,
<br />with the excess, if any, paid tv Borrower. If the Yroperty is abandoned b}• Borrower or if Borrower fails to respond
<br />to Lender within 30 days after notice by Lender io Borrvwer that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this \[ortgage.
<br />Unless Lender and Borrower ot.herwist: agree in writing, any such application of proceeds to principal shalt
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under psrsgrspEr 18 herevt the Prvpert.}• is aequit•etf by Lender, alt right, title and interest of Borrowor in
<br />and to any insurance Iolicies and in anti tv the nreceeds the rcpt i to the extent of the sums secured by this ~Iort-
<br />gage immediately privr to such sale ar acquisition! resultimt; from dautage to the Prvperty prior to the sale or
<br />acaluisiLion s .alt pass tv Lender.
<br />ti. Preservation and Maiateaance of Properly; Leaseholds; Coadomiaiuma. Borretver shall keep the Prop-
<br />erty m ga~cl repair and shall not permit or commit tussle, impairment, or deicrioratton of the Propert-y_ and shall
<br />~-ei_lpty ~... '-e P o:., vi „tit ~c< ......_. Ivrtg sr ,_ a a:_a t:+}]d If iii. Mort a e is t
<br />th = .r .:,._ " : , g g a t c eandominiun7
<br />unit, Bvrruwe.r shall ]~:rforrn ail o: Bvrrawer's vh•1?gativrts under the deciarativn of cond,•m[uium yr master deed,
<br />the by-laws and regulations of the eondvntinium project ;raid constihtent ~iocmuents.
<br />T. Protection of Lender's Security. Ii Borrvwer fails to perivrm the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commer?ced which materially affects Lendt:r•s interest in the Prop-
<br />erty, including, but not limited to, eminent dvnmin• inolvemry, co:k entorcenacnt, or arrangements yr prateed-
<br />ings involving a bankrupt or decedent-, then Lender at Lender', optien, upon notice to Bvrrow•cr, ~r?ay make such
<br />appearances, disburse such sums and take such action as i. nece>ssary tv prvtect Lender's interest, including, but
<br />not limited to, disbursement of reasvnabts aktorncy's toe, and entry upon the Yroperty to make repairs. Any
<br />amounts disl:u*_'sed h}• Lender pursuant tv this paragraph ?, with interest thereon, shall become adc}itivnal indebt-
<br />edness of Borrower secured by this Mortgage. 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, anti shy;! bear inter-
<br />eet from the date of disbursement at the rate stated in the \ote unless payment of interest at such rate a•auld be
<br />contrary to applicable law, m which event such amounts sitali bear interest at the highest rate permissible 6y
<br />applicable law. othing coutartted in this paragraph ;shall require Lender to incur any expense or do any act
<br />hereunder.
<br />8. lnspectioa. Lender rosy make or cause tv 1?c made reasonable entries upon and inspections of fhe Prop-
<br />erty; prvvided that Le~nrier shall clue Bon•otve?• r?vricr prior tv zany -ttc,r it:.-;?eeiiv;? =lzecifyit,g rcaKonalrle cat=s2
<br />therefor related to L Pnde* ~ tateres* >, t]?e Fropert;..
<br />9. Condemnation. 7'he proceeds of any award or claim fur damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Yroperty, or hart thereof, or fur evnycyanec> in lieu of c-vndtsmrtaa-
<br />tion, are hore6v assigned and shat! bo paid i-v Lendet•.
<br />In the event of a total taking of the Property, the proceeds shall 6c ay?plied tv the sinus sec•~ured by this ~Ivri-
<br />gage, with the excess, if any, paid tv Borrower. In the event of a partial taking of the Frvperty, unless Borrower
<br />and Lender otherwise agree in writing, there steal! be applied to the sutras securcai by this Mortgage such propor-
<br />Lion of the proceeds ias is equal io t.tat proportion which the amount of the sums secured by this >fortgage imme-
<br />' diately prior to the date of taking bears tv ttte 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 Pcopet•ty is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make an award or setils a claim for damages, Borrower fails to respond tv Lender within 30 days of the date
<br />of snob notice, Lender is autttorived to collect and apply the proceeds at Lender's option citbcr W restorat.ivn or
<br />repair of the Property or to the sutras secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in n•riting, any such application of proeeeds to principal shall
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