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ff under paragraph IEf hereof thr Yroperty is salt! or the F'ropcrty is otherwise acquired by Lemder, Lender
<br />:hall apply, na faker than immediately prior to the sale of the Yroperty ar its acquisition by I.endct•, any bands
<br />held by Land¢~r at. the time of application as a credit against the stem secured h~ this :4lortgagce.
<br />3. }Spplication of Payments. Unless applicable law provides athertviae, :,.Il l;+ay)nenis rccaiwad 1>,y Lender
<br />under tire:'Notc and paragraphs 1 and 2 heretrf sltadl be attplieri by Lender first in pavtnent of amounts i)ayable. tct
<br />Lender by Borrower under paragraph 2 hereof, then to interest payal)Ic an fhe Nate and on Futu)°e Advances, if
<br />any, and then to the principal of the Noir,. and to the principal of Future advances, if any.
<br />4. Charges; 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 Mortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof m• by Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnis)7 to bender 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 />dencing such payments. Borrower shall promptly discharge any lien which teas priority over this Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Borrower shell agree in writing to
<br />the payment of the obligation secured by such lien in a manner acceptable to Lender. or shalt 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 o)• any part thereof.
<br />S. Hazard Insurance. Borrower shat] keep the iulprovements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire; hazards included within the te)•m "extended coverage", and such other 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 thai amount. of coverage required to pay rte sums secured'by
<br />this ~Iortgsge.
<br />The insurance carrier providing the insurance shall 6e chosen by Borrower subject to approval by Lender;
<br />~ provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />t`~ at Lender's option it the manr:er provided under paragraph 2 hereof or by Horrower 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 ezpiration, the Lender, to protect
<br />its interest, may procure insurance nn the improvements, pay the premiums and such sum shall became
<br />~nlm~;p±ay d„a part 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 />Ali im.rrance policies and renewals thereof shall he in fora acceptable to ht rider and shall include a stsndatd
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have. the right to bold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and ell receipts of paid pre-
<br />miums. Lt the event of loss, Harrower 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 othervise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided ouch restoraGmt or reiait• is economically feasible anti the security of
<br />this ilfertgage is not thereby impaired. If such restoration or repair is not econamicalh• feasible qr if the security
<br />of thin Mortgage would be impaired, the insin•snec proceeds shall be etpplied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Yroperty 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 clam far
<br />insurance benefits, Lender is authorized to colleei and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured b}• this Jtartgage.
<br />Unless Lender and Borrower othern~ise agree in writing, am- such appGcatian of proceeds to principal shall
<br />nai exiend or postpone the due dale of the ruotlthty installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under r>ara;raph t$ hereof the Property is acquired by Lender, all right, title and interest of Borrower in
<br />and to ary insurance paiicien and in ar;<; to the piravzec#s ihercot Ito the extent of the sums serrurcct by this i~.zart-
<br />gaga irntnediaiely IJrim- to Such lair z)r ;trquisitian 1 resulting from daulage to the Property prior to the sale or
<br />.=c=,u)~itian sl:Al: laa.'V tit 1 ena"ler.
<br />fi. Presgreation and-P+iaintoarrnce of Property; Leaaehalds; Condominiums, Borrower shat! keep the Prop-
<br />erty ir. gnarl rep»is a::d sh»!i not !)errr-tt ee commit w»ste, impsinnent, ar deterioration of the Property and bhall
<br />carnply with the pravi=iaf,= of ar,~ rya- 4~, if trot- ~`~,rtgtsgE t- a:) :s ieaseha,tl. If this Mortgage is an a eondolninit)m
<br />unit, I3urower shall perfar))t ail of Borrower's ot~ligationa under the: deelaz•atian of eiandat)]inium ar master de-@d,
<br />tl)a by-laws and regulations of the eondaminiunt project and constituent dacumants,
<br />"~. Proieation of Lender's Security. It Harrower fails to perform the covenants aril agreen)ents contained in
<br />this ~lartgage, or if any action ar praceetling is ranunenced which materially atiects Lender's interest in the Pr~p-
<br />erty, including, but trot limited to, eminent douurin, iu.alvenuv, corh• eufmren)ent, or arrangeulents or prooead-
<br />inga 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 aetia] as is necessary to protect Lender`s interes!, including, but
<br />not limited to, disbursement ai reasutrable attorney's ices :tad entry upon rite Property to tanks repairs. Huy
<br />a)naunGs disbursed by Lender pursualrt to this paragraph i, with interest thetr+a)), sltali k)acotne additional inde6t-
<br />edness of Borrower secured by this llortgagc. Unless I3orrorrcr and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est from the date a! disbursement at the rote 'stated in the Notc wiles payment of interest at such rate would be
<br />~antrary to applicable !aw•, i:] which evetlt such amount; shall tsar interest at the highest rate pertniKsibie by
<br />applicable law. Ivathing contained in this paragraph 7 shall require Lender to incur any expense or do any act
<br />her>'under.
<br />$. Ins~wetion, Lender rosy make or cause to he made reasanahlc ct;tnes upon and inspections of the Prap-
<br />ert.v, nrow~id.d tt;at I.end~r rl-,all give Barrrxver notice prior to auv such inspection specifying reasanabte cause
<br />therefor r~latcd to Le+v_der w rt;t_err~st in the ptal)errv_
<br />9. Condomnation, The proceeds of any award or claim fot• damages, direct ar consequential, in connection
<br />with any condemnation or other taking of the Property, ur part thereof, m• fur eunveyanee in lieu of condemn)r-
<br />tian, are horeby assigned end shall he paid ka !.,ender.
<br />In the event of a total taking of the Property, the proceeds s!)all he applied to the sums secured by this ~'fort.-
<br />gaga, with the excess, it env, paid to Borrower, In the event of a partial taking of the Propctty, unless Borrower
<br />and Lender otherwise agree in writing, there shall he applied to the sums securcgl by this Mortgage such propor-
<br />tion of tin proceeds as is equal to that. proportion which the amount of the sums secured by this Mortgage imme-
<br />• diatety prior to the date of taking .)ears to `the fair market value of the Property immediately prig to the date oT
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if after notice 6y Lender to Borrower that the condemnor offers
<br />to make an award or settle a claim for damages, Borrower fails to respond Lo Lender within 30 days of the date
<br />of such notice, Lender is authorised to collect and apply the proee•eds at lender's option e$lter to restoration ar
<br />repair of the I'roporty or to the sums secured by this Mortgage.
<br />Unless Lender anal Bat•rowet• otherwise agree in writing, any such aonlicatieu of proceeds to principal shall
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