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If rattde~r paragraph ]g hereof the Property is sold o,~ tl,c Property is of},ervise acquired Liy Lcncler, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or eta ace}uisition by henries. troy Fonds
<br />hetld lay Loonier at. the time of sp}slication ass ,relit against the sums secured };y t}tis ilrlortgage.
<br />3. Application of Payrnaentr. Unless altpl•acablc law provides other•+wise, all payments rceeived P,ry Lender
<br />tinder the Note and paragraphs 1 and 2 hereof shall be alsltlicd by Lender [first in putyntent of amounts l~rayable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note and nn Future Advances. if
<br />any, and then to the principal of the Note and to the principal of Future advances, if any.
<br />4. Chargers 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 ~iort.gage, 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, directh to
<br />® the payee thereof. Borrmver shall promptly furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment. directly, Borrower shall promptly furnish to Lender receipts evi-
<br />lensing such payments. Borrower shall prompth~ 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 shall agree in writing to
<br />the payment of the obligation secured by such lien in a mariner acceptnb}e to Lender. or shall in good faith contest
<br />® such lien by, or defend enforcement. of such lien in, legal proceedings which operate to prevent the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />' 5. Iiaaard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />Q1 erty insured against loss by fire, hazards includes} within the term "extended covernUe", and such othet• 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 th;u amount of coverage required to pay the sums secured"by
<br />this D~Iortgage.
<br />The insurance carrier proviriing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall Woe be unreasonably withheld. all premiums on insurance policies shall be paid
<br />at Lender's option in the 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 on the improvements, pay the premiums and such stun 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 may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance policies and renewals thereof shall be in form accept-able to Lender and shall include a standard
<br />mortgage clause in tavor of and in form acceptable io Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to henries all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall Bice prompt notice to the insurance carrier and Lender, and Lender
<br />may make prom of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in reciting, insm•sm~a prnceeds shall be applied to restoration or
<br />repair of rite Property damaged, provided such restoration ot• repair u cconotnieally feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such restoration or repair is not economically feasible or if the security
<br />of this 3ortgage would be impaired, the insm~ance laracceds shall be applied to the sums secured by this Mortgage,
<br />with the excess, it any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fails 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 />inrttrance benefits; Lender is authorized to collect and apply the insurance proceeds sf. Lender's option either to
<br />restoration or repair of the Property or to the sums secured l;v 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 date of the monthly installments referred to in paragraphs I and 2 hereof or change
<br />else t~maunt of sash instalments.
<br />If under tarsgraph It3 }tea•eof the Property is acquired by Lender, all rig:ti, tit}e and interest ttf Borrower in
<br />and tt, any insurance policies and in and to the Itrnceels thereof :to the extent of the :awns sccurctil by this ~tort-
<br />ga¢e immediately urior to such sale nr acquisitions resnltine front datuage to 1e Pral~erty }?r+_nr to t~ n Wit,. or
<br />acquisition shall pae~ to hencier_ ~ - --
<br />6. Prarervatiort and Maintananca of Property; Learaholdss Gorsdominiu~ Bcrrovt•er shtsil keep the Prop-
<br />erty in Qood repair and shat] t,ot perntat or coin=.ait waste, impairment, _ ~ deteriorati;tn of the Property and gall
<br />comply with the I>rovisiou_=, of any lease, ii thi>` ~lortgagt; is on a Ie;tseho}d- If tht. Mortgage t? on 1 1=andomini~m
<br />unit, Borrowershall perfnrn all of Barrawer's nbiigations under rht= declaration of eondmuiniutn or master die?,
<br />the by-laws and regulation, of the ewtilotniniunt project and constituent document,.
<br />7. Protection of Lender's Security. If Borrower (ails to perform the covenants and agreements enntained in
<br />this Mortgage, or if :toy action or ptveeeding is connucnced which materially affects l.ender•s interest in the Prop-
<br />erty, inchading, taut not limited to, eminent dootain. nt,otvcncy, code enforcement. or arrangements or proceed-
<br />ings involving a bankrupt ar ;}eeedent, then Lender at l.encier's option, upon notice to 13orrosver, Wray stake such
<br />appearances, disburse such stops and take such ;tenon as is necessary to protect- I.etn,?er's interest, inc}uding, but
<br />not limited t-e, c}istmrsetnent of reasonable attorney's lees and entry upon the Property to make t~prirs, Any
<br />amounts disbursed by Lender ptu•nuant to this paragraph ', with interest thereon, shall became adlit-ional indebt-
<br />elness of Borrower secured by the: \Iart.gagc. Unless Borrower and !.coder agree to other terms of psy'nu~nt, such
<br />amounts shall he. payable upon notice front Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est front the date nC disttumement at the rate stated in the NotE unless payment of interest aG seen rate would be
<br />enntaarv t+, applu~able late. in which event such s*.nortnts sha!1 hear interest a± the highest rata panni°sible lsp
<br />applicable htw. `nthittg contained in this psragrap}t "shat! rcv~uire Lender to incur any expense nr to any act
<br />hereunder.
<br />. f3- Ictitaa. Lender utav make er cause to lte rater!„ ressoraah!e +~ruries ulasn anc? inspections of the Prop-
<br />erty, ptti,ricied that Lender saal`t give I3nrrawcr :uf#,rc- }>rra; to an_c .uric itt.peetican stteeif_ving_ reasonable cause
<br />thcrefnr relaLcd to Lsrdar's interest fir. the Pre}tv-xty°.
<br />f3. Condemnation. The proceeds of any awartt nr claim far c?nmages, direct or consequeniial, iu connection
<br />with any eoadcmnatiott ae other taking of the Pro?testy, nr !,art tht~rc+sf, or for ccnaveyanee in lieu of condemna-
<br />tion, ate hereby assigned and shall rte paid to Lender.
<br />In the event of a total taking of the Yroprrty, the prrnrae+?n shall hr tapplied to the sums secured Ley this a4ori-
<br />gage, with t.lae excess, if any, paid to Borrower. Ire the event of a },atrial taking of the Property, unless Borrower
<br />and Lender otherwise agree in tvrititag there stool! be a{tl>lia~+i to t}ae sums secured by this Mortgage such prapor-
<br />lion of the proceeds as is equal to that proportion wtsiclt tkte amount of the sums secured by this ~tartgage imme-
<br />diately prior to the date of taking bears co the fa?r market value ttf the }'roltercy immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Harrower or if after notice bt• Lender to Borrower that the condemnor offers
<br />to snake an sward or settle a claim for dautages. Borrower fails to respond to Lender within 30 days of trite date
<br />of such notice, Lender is authorized to collect and apply t}te proceeds at Leader's option either i,o restoration or
<br />repair of the Property or to the sums seeureti lty this1[ortgagc:.
<br />finless Louder and Borrower othertvisc agrne in writing, any such application of proceeds to principal shall
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