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If under paragraph 18 hereof the I'raperty is sold or the Property is otizei rwise acquired by bender, Lender
<br />shat! apply, no later than immediately prior to the sale of Yhc Prapcrt}- or its acquisition kzv Lenciez•, any Ftmds
<br />held by Lender at the time of applicatian as n credit against the sums securcii by this 'tlortgagc.
<br />3. Application of Payments. Unh>ss alrplicatrle lacy provides otherwise., alt payments received lay Lender
<br />under the Note and l.utragraphs a utnd 2 1Fereal• shall hc. cep},lied by Lcaider first. in paysnernt ot" smaunt-r: payable t-o
<br />Lender by Harrower under I~~aragF°aph 2 hereof, then to interesC ]raytable on eho Note and on Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Future =ldvauces, 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 ibis Mortgage, and ground rent:, if amp, at Lender's
<br />~ option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directdw to
<br />the pnyce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,
<br />~ and in the even,: Borrower shall make payment directly, Borrower shall prompt]}• furnish to Lender receipts evi-
<br />Q dencing suet payments. Borrower shall promptly discharge an}• lien ,vhich 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 ]left in a manner acceptable to Lender, or shall in good faith contest
<br />h such lien by, or defend enforcement of such lien in, legal proceedings ,vhich operate to prevent. the enforcement of
<br />t:he lien or farfeiture of the Property m• any part thereof.
<br />5. Hazard Tnstuance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insw•rd against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may require and in such amounts and for such period. as Lender may require: provided, that Lender shall
<br />not require that the amount of such coverage exceed .hat amount of cos•eragc required io pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower sub}ect to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's opt-ion in the manner provided under paragrnph 2 hereof or by Borrower making pa.}-went; when due,
<br />directly io 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 />immerhateiy due and payable with interest at the rate set iori%t in said pole until paid and shaii be
<br />secured 6y this '<lortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this iyiortgage.
<br />:111 insurance policies and renewals thereof shaii be in form acceptable to Leader and shall include a xt;Fmlard
<br />^rortgage Blause in favor of and in form acceptable to Lender. Lender shall have the right to ho;d the policies std
<br />renewals thereof, and Borrower shall promptly furnish to Lender all ;~netval notices ana ail receipts of paid }>r~-
<br />miums. In the event +~: loss, Harrower shall glee prompt notice to the insurance carrier and bender, and Lender
<br />may make proot of lass if not mane promptly by Borrower.
<br />unless i_cuder and Born;wcr athenvise agree in a citing, in;~arance procec+i< .hall be applied i.o restoratian or
<br />reusir of the Property damaged, provided such restorattion or repair is econouucally feasible and fife =scarify of
<br />this Mortgage is not thereby impaired. If such restoration or repair is nut economically feasible or if the security
<br />of this lortgage would he impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. Ii the Yropet•t}• is abandoned h}• Borrower or ii Borrower fails to respond
<br />to Lettde;r within 34 days after notice by Lender to Son•ower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to oollect anti apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the stuns secured by this ~[ortgage.
<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 1 and 2 hereof ar change
<br />the amount of suclt installments.
<br />ii u+,ue. t.wrag+ntiu io ucf .~ -LE,c: i;r .5 di.~tli ~ - T -"-• icr ~.u ,'i.-'~;, - ..:;c~. 1,:.~,~- - ----- - -
<br />and it7 n; tn-ttrant'x 1FOhetes tF;td tP. and t6 Lhe proeeedsLtlieCeaftiLO thi' e;;Ci'Ft OSlClie ,rn7~ sctilretiu[=}~ihts ~iart-
<br />gaga ttntncxliatel}' prior ut such sale or scquisitieni resuiting from damage to the Yropert}° prior to the sale or
<br />acquisition shall pass to Lender,
<br />~. ptHkerV4tipA and NlarAt4AanS;e Of Property; Leaneh0[da; 4^OEdprnt$iyafe. Borrower shall keep the Yrop-
<br />crty iu geed repair and shall not permit or commit waste, impairment, or +ietrrioratian of the Property and ells]]
<br />comply with the provisions of stay least, if ihi Alort4age is ,~a a leasehold. Tf this \iortgsge is oft a candominium
<br />unit, Borrower shall perform all of Borrower`; ohligz~tions under the declaration of rondominiwn or master deed.
<br />the try-lakes and regulatiotr of the cantisntinium project and constituent documents.
<br />7. Protection of Lender's Secyrity. l,t Harrower tail,. to l,eriizrm the covenant, aFtui agreements contained in
<br />this Mortgage, or if any netion or proceeding is corruuencad which mateeialh• affect: bender's interest in the Prop-
<br />erty, including, but not limited to, eutmrnt dnm;un. insoivvm•y, code enforcc•nu•nt, or' areetngeuu•ttfs or proceed-
<br />ings involving a hankrulrt. or decedent, then Lender ut Lender's option, opal notice to iorrower, may make such
<br />appearances, disburse such autos and take ,uch etctiuu as is urcessary to protect Lender's interest, including, but
<br />not limited to, dishursemcnt of reasonable attorney's fees ttnd catty upotF the Yroperh• to make repairs. Any
<br />amaunta disbursed by Lender pursu~tt to this paragraph "r, ,with interest thereon, shah l+ecome additional indebt-
<br />edness of Borrower secured be this ~lortgrFga. Unless Horron•er and Lender agree to other tettns ai psyntent, such
<br />amounts shall be payable upon uoticc Pram Lender to Burrower requesting psytnent thereof, amt shall bear inter-
<br />est fmtn the date of disburvement at the rate stated in the Note untess payment of interest at such rate would be
<br />contrary to applicable lnw•, iu which event such amounts shall hear interest nt the highest rate permissible by
<br />applicable latr_ Nothing contained in this paragraph % slnF!! rt=quire ],ender to ittot:r ary exir•rse nr do any act
<br />herewtder.
<br />~. InspeCtipA. Lender may niskc or sauces to hr mndc reasonahlc entries u}wn anti inspection, of the Prop.
<br />ert}•, prcroided flint Lender shall give Borrower notice tutor to nn}- such inspection specifying reasonabh: cause
<br />therefor relatcti to Lerder's interest in the YrelFeriy.
<br />s. Caudetaaut[on. i he proceeds of puny award or claim for damage:,, direct or rr,tlsequential, in connection
<br />with env condemnation or other inking of that Property. ur p:Frt thereof, or for rane•yance in lieu of contlemna-
<br />tian, era hereby assigned and shall be paid to ],ender.
<br />In the event of a total taking of the Property, the proceeds site]] he applted to thn sums secured by this ~iort-
<br />gage, with the excess it an}•, paid to Borrawer. hr the event. of a partial taking of the Property, unless Harrower
<br />and Lender otherwise agree in writing, there shall be applied to the soma secured by this Mortgage such propor-
<br />tion of flit; proceeds as is equal to that. proportion which the amount of the sums secured by this \iortgage imme-
<br />• diately prior to the date of taking bears to the fair markzt value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />if the Property is abandoned by Borrower or if after notice by Lender to Borrower 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 cafleet and apply the procetds at Lender's option either to restoration ar
<br />rtspair of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Borrawer otherwise agree in writing, any such application of proceeds to principal shall
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