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if under paragraph I8 hereof the Property is said or tkie I'eoperty is otherwise; aer•piired 1>v Lender. Lender
<br />shall apply, no later than immediately prior to the salt; of the property or it, sac{tilsition by Lender, :any I+unds
<br />leap! by Lender at the t-ima of application as «z clsac it al,TC~:inct khc sums scoured l~iy thus :Mortgage.
<br />3. Application of Pa~.nents. TJnlass applicaable '~Isw pi•avidcrs otticrwi e, iall psiyrnenis eci~>rived by Lender
<br />under the dote and paragraphs 1 and 2 h€re;of shalt tic ai~>l~tlieiei by L.enr'ier first. irz payinuint of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable an the :vote and on Future Advances, if
<br />any, and thee] to the principal of the Notc and to the principal of Future advances, if any.
<br />4. Changes; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the :'ropert•y which may attain a priority over this Mortgage, and ground rents, if any, at Lender's
<br />option in t}±e manner provided under paragraph 2 hereof or 6y Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shat! prompt.ky furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borrow-ar shall promptly furnish to Lender receipts evi-
<br />dancing such payments. Borrawer shall promptly 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 shalt agree in writing to
<br />the payment of the ob]igation secured k>y such lien in a manner acceptable to Lauder, or shall in good faith oontest
<br />such lien l.y, 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included +vithin the term "extended coverage", and such other hazards as
<br />Lender may require and in such amounts ;aid for such periods as Lender may require; provided, that Lender shall
<br />n ~ not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing i.he insurance chat! be chosen by Borrower subject to approval b}- Lender:
<br />provided, tkiat such approval shall not 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 />rr the eYe.,t Any I,nl,ry 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 Mortgage. 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 renaw•sls thereof shat! be in form acceptable to Leader and shall inchrde a standard
<br />tnar;gagc- , _u....e .., f°var .....nd for:n acceptable to Lender. Lender shalt !lave the rigl!t- to hold the petioles and
<br />renewals Thereof, snd Borrawer shall promptly furnish to Lender all renewal Helices and sll receipts of paid pre-
<br />miums. In the event of loss, Borrawer shall give; prompt notice to the insurance carrier and Lender, and Lender
<br />may triakc proof of loss if not made promptly by Borro+ver.
<br />Ilrless !:ender and Borrower ot.henvisa. agree in writing, insurance proceeds shell be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is econoruicully feasible and the security of
<br />this A~Sortgage is not thereby impaired. If such restoration or repair is not econantically fc-ssibl€ or if the security
<br />of this Mortgage would be inioaired, the uisursnee proceeds shall be a,~piied to the sums secured b}• this Mortgage,
<br />with the excase, if any, paid to Barrow€r. If the Yrop€rty is abandonec! b}• Borrawer ac if Borrower fails to respond
<br />to Lander within 30 days aftet• notice by Lender to $orrower that the insurance carrier offers to settle a elaien 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 scans secured b}' this Mortgage.
<br />finless Lender and Borrawer otherwise agree in writing, any such application of proceeds to principal shall
<br />eat extend or postpone the due date of the monthly instalhnants referred to in paragraphs 1 snd 'd hereof or change
<br />the amount o*-" such installments.
<br />If urlrter paragraph lt3 hereof th€ Property is acquired by Leader, all right. tit-le and intetest at ~3orrawar in
<br />and to any insurance policies and in and to the pracaed± thereof tta the extent cz tlae Burns secun~d by this ;t4tut-
<br />gage itnntediatel}' prior to such sale or aequisiti~ni resulting from damage to the Property prsm• to the solo or
<br />acquisition shat! pass te] Leader.
<br />5. Preservation amd Maintenance of Property: Learsehnlda: Coadomiaiums. Borrower shall keep the Prop-
<br />erty in goad repair and shall not permit or catnmit waste, impairment, or dateriaratian of the Propert-y and shall
<br />carnpiy w-itt the pr:wisians of any ;ease, if ;his ~iartgage i. all a 1€a=;€holci. If ;his 3lartgage is an a eondaminiutn
<br />unit, Borrow€r shall parfarm al! at Borrnts€r`- ohiigatian under ti,€ tlectaratiat. of t~andamiviuni rr rvastar did,
<br />the by-laws and regulations of the condonur.inm project and constituent dacuinenis.
<br />7, Protection o! Lendei a Security. Cf Borrower fails to p€rianu the covenants nud attreameuts container in
<br />this Mortgage. or ii any action ar pracecding is emmuanced whi€h trait€rlally af[€ets Lender', intarast in the Prnp-
<br />arty, includmg, Ittn not limited to, eminent domain, iusah•cnry• rode etaforcenirnt, ur arratigemcnts or proceed-
<br />ings involving a bankrupt or• dc~•edt nt. then L€nder at Lander', pptiau, upon uatirr to Borrower. maY make Bach
<br />apk>earanecs, ciisbure such sums and take au€ii serion as is necessary to protect Lender's interest, including, but
<br />not :unit€d ta, dsstursemeat of rcaaanatlta atmrney's fees and ante}- upon the Prolwrfy to snake repairs. Any
<br />amounts disbursed b}- Lender pursuant to this paragraph 7, with interest thar~n, shall 1]ecoma additional indent-
<br />edness of Borrawer s€cur€ci b}• this ~lorigage- Unless Borrawer and Lender agree to other tertus of }taynrant, such
<br />amounts shall he payabl.~ upon notice frtnu Lender to Barruwer rayuestiug payment thetraf, and shall trear inter-
<br />est Tram the data of disbursement su the rnte sterol! in the tiara unless payment of intareat at such rate would be
<br />contrary to apS>licable law, in which event spell amounts .hall bear interest at the highest rate permissible by
<br />applicable law. Aothing contained ru this paragraph i shall require Lander w incur env expense or da any act
<br />hereunder.
<br />8. Inspection, Lander uiav niak€ or eausc to 6e made r€asonahle entries upon and insl~>Netiane of the Prop-
<br />erty, pea\'ide(3 that 1.C°nd€r siiaii 6rvc• Barrow€r natiPt` l,riai' €e% any ~iif•ii ini`pi^?t iris tperrfY`tn~ rca-SV~a:iic t=ails:-
<br />- ttreP$Si1r retstect to I~:uder's lntelY it to tkle f rtlpgrt\'.
<br />S. t::andemnatian. The proceeds of arty &ward or maim for ciatnages, dit•ert ar ronsequantial, iti eonneation
<br />with env condatmiatian or ether taking of the Property, ar part thereat, oe for conveyance in lieu of condemna-
<br />tion, are hereby assigned and shall be paid to Lauder.
<br />In the event of a total taking of the Propert-y, the proceeds shall lle~ applied to this slun+ secured by this Mort-
<br />gage, wiih the excess, if am•, paid to Borrower. In the t:vent of a partial taking of the Propert}°, nnlass Borrower
<br />and Larder othewsise ag.*~e in writing, there ahsll be applied to the sums sacunrri by this Mortgage such propor-
<br />tion of the proeee<ls as is equal to that proportion which the amount of ttie sums secured by this 3lortgage imme-
<br />diately prior to the date of taking bears to the fair market value of the Property immediately prior to the date at
<br />taking, with the balance of the pr]eaeds paid to Borrower.
<br />If the Property is abandoned by Borroaer or if sitar notice by Lender to Borrower that the condemnor offers
<br />to make an award ar settle a claim for damages, Borrower tails to respond to bander within 30 clays of the data
<br />of saoh notice, Lender is nuthorizad t-o collect trod apt>ly the proceeds at Leader's ol,ltion either to restoration or
<br />repair of the Property or to the sums secured by Uiis Mortgage.
<br />Il.i.2ss Ladder and Barrov.ar ath2rwis2 agt•~o in writing, any snot: spplication of prac,eeds to principal shall
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