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If under paragraph 18 hereof the Property is so1+1 or the }'roperty is otlcercaise ar•~quirccl by Lender, Lender
<br />shall apply, no later than initrtediately prier to the sale of t-he Pr•alscrl',}• or its acctuisition b~^ Lemfer, ary 'Funds
<br />held by Lender aG the; time of apl~tlication as a credit against. the stuus secured 'rn• this Mortgage.
<br />3. Application of Payments. Unless appiirraiila ]a+v provides athorwiec:, a!f payments received by Lender
<br />under the Nate and I,aatragraphs 1 and 2 here~af shall iC~ alaplied by Lender first, in payment of an'tottnts payable t~o
<br />Lender by Bo,:ower under paragraph 2 hereof, then to interest payable on the Note and on Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Future advances, if any.
<br />4. Charges; Liens. $orrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to Lhe Property which may attain apriority -over this ylortgage, 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, directly to
<br />~ the payee thereof. Borrower 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 />(~ dancing such payments. Borrower shall promptly discharge any lien which has priority over this Jortgage; pro-
<br />vided, that Borrower shelf not t;e 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 insnner acceptable to Lender, m• shall in good faith contest
<br />such lien by, or defend enforcement of sorb lien in, legal proceedings +c}tieh operate to prevent. the enforcement oI
<br />the lien ar forfeiture of the Property or an}• hart thereof.
<br />i S. Hazard Insurmnea. Harrower shat' keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against. lrhti by fire, rszarls included within the term "extended coverage", and such other hazards as
<br />~ Lender tray require and in such amounts and far such periods as Lender may require; provided, that Lender shall
<br />net require that the amaunc of such coverage exceed that amount o[ coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that suci~ approval shall not he unreasonably withheld. All premiums ott insurance policies shall be paid
<br />at Lender's option in the utanner provided under paragraph 2 hereof or by Borrower making payment. wilco 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 rate set forth in said note until paid and shall be
<br />secured b~:• this 'tilorigage. Failure by Borrower to comply may, at option of Lender, constitute a defatdt
<br />under the terms of this Mortgage.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard
<br />morigage clause in favor of and in form acceptable to Lender. Lettder shah nave the right. to hold the policies snd
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In fire event of loss, Borrot+rer shall give prompt notice to the iusurance carrier and Lender, and Lender
<br />may snake proof of loss if net made promptly ley Borrower.
<br />Unless Lender and Horrower otheewise agree in writing, insm•ane~ proceed, shall be applied to restoration or
<br />repair of the Property damaged, provided such restoration m• repair is ecouontically feasible stud the security of
<br />this Rorgage is rat thereby unpaired. If such restoration or repair is not- economically feasible or if the security
<br />of this _Mortgage tvould be impaired, the insurance proceeds shall he applied to the sums secured by this Mortgage,
<br />with the excess, ii any, paid to Borrower. It• the Property is abandoned hp Borrower or if Harrower fails W respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a ctaitn 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 \lortgage.
<br />Unless Lender and Borrower otherwise agree in writing, sm,• such application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly instalttnents referred to in paragraphs 1 and 2 hereof or change
<br />the arsauat of such installments.
<br />Tf ~,ia - ,~k iC i.a, ±h.. r>r,~ n.t.• __ "__ rnr} 1,4. T.nn.d~ ail . ~h+ ±:tle ..::d :::tdreut •,{ R,. .. _ _..
<br />and to any insurance polutes andf in and to the proite<ls thereof tip fife extent of rho sums securedVby this Mort
<br />gage immediately prior to such sali• or acquisitiati rt:sultinr tram damage to the Property prior to the sale ar
<br />aequisitian shall pass io Lender.
<br />f. Pzaservafion mica Mainteaanco of Prcpezty; Leaseholds: Condominiums. Harrower shalt keep tlye Prap_
<br />arty ity goad repair atul shall not permit or commit waste, impairntitnt, or detcrioratioas of the Property and shall
<br />comply with the provisions of an}• lease, if this \lortgage is ai a leasehold. If this Mortgage is an s condominium
<br />unit, Borrower shall pcrfortn all of Borratver's obligations under the declaration ai condominium or master deed,
<br />the by-laws snd regulatiatis of the condominimu project and constituent documents.
<br />7. Protection of Lmndai s Security. If Borrower tails in perform the covenants and agreements eantainett in
<br />this Alortgage, or if any action or proceeding is commenced whieli materially affects Lender's int~restrr. the Prop-
<br />erty, inchuding, but rat litniteii to, eminent doutain, insoh•ency, Cade enforcement, or cu•rangemeots or proreed-
<br />itt~ involving a bankrupt or decedent, then I~nder at Lender's option, upon notice to Harrower. ruay make such
<br />appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable s[tornep's lees :snd entry upon the F'roperiy to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, a•itli interest thereon, shall bt~cotne additional indeht>
<br />edness of Borrower secured by this lfortgage. Unless Borrower and Lender agree to other tarots of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower reyuest.ing payment thereof, snd shall bear inter-
<br />est from the date of disbursement at the rate stated in the Note unless payment, of interest at such rate would lie
<br />contrary to apphca6le late, in which event such amount, shall hear utterest at the ltighPst rate pntTnicaitt!e by
<br />applicable law. Nothing oantained iii this paragraph 7 shall i+~tiuir~ Lender to incur any expanse or do any act
<br />hereunder.
<br />8. inapoetion. Lender may make or cause to be made reasonably entries upon and inepectians of t-he Prop-
<br />ertp, pruvirle~d that Lender shall give Borrower notice prior is any such in+}teyi-ion specifying reasonable cause
<br />thersfar related to Lender's interest in the FroFtrriy.
<br />9. Condemnation. The proceeds of ary award or claim far damages, direct or consequential, in connection
<br />with any condanination or ether taking of the Property, or hart thereof. pr far eaiivoyance_ in lieu of eoudemna-
<br />tion, am hernby assigned and shall be paid to Lender.
<br />In the event- of a total i.aking of the Property, the proceeds shall he applied to the stuns secured by this ~Iort-
<br />gage, with the excess, if suy, paid to Horrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in wr•.ting, there shall be ap-tiiecl to the scuts secured by this \lortgage such propor-
<br />tion of the praeeeds as is equal to that proportion which the sruaunt of the sums secured by this Mortgage imme-
<br />diately prior to the date of taking bears to the fair anarket value of the Property inunediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is aiisttdaned by Borrower or if after notice by Lender to $orrower that the condemnor offers
<br />to 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 authorised to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the sums sactzrzd by this \lortgage.
<br />Uriiess Le;tder and Borrower atiterwise agree in wri"ring, any such application of proceeds to principal shall
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