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If under paragraph 18 hereof the property is soir„I +:n• the 1'rn}~terty is nthcrvise acquired try Lender, Lender
<br />;hall aPP1Y, no later than immediately prior to the sa'rlr., of the Prnpul,t•ty or its act}uisitian by Lmtuier. any Funds
<br />held by Lender at the time of ap}aiitrat•inn as a ca•cdit at;aint the sum,:, .~icurtr~d by Lhis :Mortgage.
<br />3. rFipplicaGon of Payments. Unless tnp}nc~mthii~ lsw }~rrovidr,•t;i otherwise, all g?as~ymtaaats a•er..iivet:l i?y Loader
<br />under tkae Note and paragraphs 1 .sad '~ ht,~reof sPaaall be ;applied by I.e~nder first itr paytraent of amounts 1?ayahie to
<br />Lender by Borrower under paragraph 2 hereof, i~,hert to interest Irayrat,ble on the Iota and on F'nture Advaniis, if
<br />any, and then io the principal of the Notc and to the arincipal of Future Advances, if any.
<br />4. Charges; Lieas. Borrower shalt pas all taxes, assessments find other charges, flues and impositions attrib-
<br />utable to 'the Property which may attain a priority over this Mortgage, and gromad rents, if auy, at Lender's
<br />option in the mr~ner provided under paragraph 2 hereof or 6y Borrower making payment, when due, directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender all notices of amouuts 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 pranptly discharge any lien which :?aa priority over this Mortgage; pro-
<br />vided, that Borrower shat! not be required to discharge any such lien so long as Borrower shall agree in writing to
<br />the payment of tree obligation secured by such lien in .a manner acceptable to Linder, or shall in good faith contest
<br />! such lien by, or defend enforcement of such lien iu, legal proceedings which operate to prevent. the enforcement. of
<br />~ the lien or f.;rfeiture of the Yropiriv or any part thereof.
<br />i\ 5. Hazard Iztsuraace. Borrower shall keep the inaprnvements now existing or itereatter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lander may require and in such aaanants and far such periods as Lender may require; provided, that Lender shall
<br />not require that the amount of such !overage exceed that amount of coverage required to pay the surus 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 such approval shat; not be unreasonably withheld. 111 premiums on insuran~i policies shall be paid
<br />at Lender's option in the manner }arovided under paragraph Z 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 prenuums and such sum shall become
<br />immediately due and payable with !nieces( :ii rue ;•ata ~,t fart!: i.. Ica ~~te ~+!?±i1 turid and shall be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of bender, constitute a default
<br />under the terms of this Mortgage.
<br />111 insurance policies and renewals thereof shall hi in fonu acceptable to Louder and shall include a standard
<br />...^:•tgage ei :..- in fv.. of and fortzr ,.~ e},tat,l~ .; L~rrde:• Lendir shall have tl•i tight to bold the policies ..._•.:
<br />renewals thereof, anii+Porrower steal[ promptly~turnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In rim event of loss. 13orraw•er shall give prompt notice to the insurance carrier and Lender, and Lender
<br />:nay make prr!of of foss i2 not made promptly by Borrower.
<br />Unless Lender and Borrue•ir ntherwisi agree- in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restornnon or repair is ironomically fissibie and the security of
<br />this Mortgage is not thereby impaired. If such restoration or re}?air is not economically feasible ar if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be sppiied to the sums secured by this Mortgage,
<br />with the excess, if auy, paid to Borrower. Ii the Property is abandoned ray Borrower or if Borrower faits to respond
<br />to Lender within 3O days after notice by Lender to Borrower that the insurance carrier otTers to settle a claim for
<br />insurance benefits, Linder is authorized to collect and apply the insurance proceeds at bender's option either to
<br />restoration or repair ni the Property or to the sums secured by this Mortgage.
<br />Unless Linder and Harrower otherwise agree in writing, any suet? application of proceeds to principal shall
<br />not extend or postpone the due dsti of the monthly irastalhnents referred to in paragraphs I and 2 hereof or change
<br />th; at avant. cf such installments.
<br />ii nn,iir ;=araL,s~1. 1° .~rcrf ' :~ °r^a°-•~• << _ ,~_*•~ t,v i.en,ier •,ll rieht. title and interest of Borrowar itt
<br />and t:~ aras• insurances pnficies and in ,tad m rite prnee~{s tlairenf its the extent of the sauce secured by this ;t~Iart-
<br />gage rtnnu~diately !crier ui such sale or aequisihazt rewltin}; tram damage to rhr Prope~y prior to the ~k or
<br />acquisition shat[ pees to Linder.
<br />&. Y:r:sarvatian sad Mmuteactnce of Prspertg; Leaseholds: Cendominiuacs. Borrow•ir shall loop the; Prop-
<br />erty in good reuair and shall not pennu nr cnuuuit waste, impairment: or diterioratiaa of the Property and allot!
<br />iompiy with the provisions of any !ease, rf this Martgagi is ccn a liasehohi. If this Mortgage is on a condatuinium
<br />unit, Horrowir shall perfoa-m all of Barracver's n'trligations under the derlaratiari of condominium ar master deed,
<br />the 6y-laws and regulations of the condaminiuru prnjcct sad rnnstituent doiumints,
<br />7. J?rotecWon of Lender's $ecurity. li Harrower !alto to perfm•m rhr: rovinants and aKrientents inntained in
<br />this llortgagi, or if any action ar prnicedang is eonauencid which naatirittlly affects Lender's interest in the Pralr-
<br />erty, including, but nut limiter! to, eminent dnuuuu, nasolviney, crxie enfnrcetnint-, nr arrauginaiute or pracied-
<br />inga involving s bankeupt or ciicedint, thin Linder at I,ender•s option, upon notiii to Borrower, naay° make such
<br />appearances, disburse such suans and cake such :cation as is ueci-ssary to protect: Lender's intirisk, Gseludh?g, teat
<br />pot limited to, dishursetucnt of reaaansble attorney's leis and curry upon thR Property to make repairs. Any
<br />arnnants disbursed by Linder pursuant to this paragraph 7, with Interest thereon, shall hicanrc additiana! indibt,
<br />edttess ai Borrower secured by tlai& Mortgage. Unless Barrowir anil Lender agree to other leans of payment, such
<br />amounts shall be payable apron notice from Linder to Borrower requesting payment thereof, and shall bear intec-
<br />eat from ilte date si disbursement st ilre rate stated in rho Nate unless payment of interest at such rate would be
<br />inr:tr':j .~.::pptrcahli tau, .. which ee•ent ..:cl: arzaunts aloe!! liar rntsrest at the srghest call. ,^.crs.~st:ssble ~y
<br />appiieable lziw-. ~iothing contained in this l,aragraph i shall r~ryuirc l,ondrr to incur env expense or da any act
<br />hereunder.
<br />g= Lnsgectaexs. Linder may snake ar corral to he rued! t~easarrahle entries upon and inspcetions of the Pmp~
<br />erty, trrnvidMt that Condit shall t~ivi Eorrower noHer tu•ior to trm• such instliPhnn yxrifvin~ ria~nabli leas!
<br />therefor related to Lender's intemst in the Property.
<br />9. Condramaatioa. The proceeds of ashy award nr claim for damages, direct. or eouaequential, in connection
<br />rvittt env eoudernnation or other taking nF the 1'roperey°. or part thrr~•zr[. or t'or eonti-ry_•an1P in lieu a( roudimna-
<br />tion, are hereby assigned and shall be paid to Lendet•.
<br />In the avenk of a total taking rat the Property, t-hi pracied~: shall be7 alrplied to the srnua .*terurirl by this :4iort-
<br />gage, with the excess, if any, paid to Harrower, In the ivint of a partial taking ni the Property, uuir~ns Borrower
<br />and Lendir otherwise agree in writing, there shall bi applied to chi sutras allured by this Mortgage such peopor-
<br />. tiara of +he prnneeds ass is equal to that proportion which the amount of the sums secured by this Mortgage imme-
<br />diately prier to the date of taking hears to the fair market value of the Property inunerliately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Horrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make an award m• settle a claznt for damages, Horrotwir tails to respond to Linder within 3(1 davs of the date
<br />of such notice, Lender is atttlrorizetl to collect and apply the }?rncer~rls xt t.endir's option either to restoration nr
<br />spear of the Property or to the auras secured by this Mortgage.
<br />Unless bender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
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