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If tinder paragraph 18 hereof the Property is sold or the Property is otherwise acquirer) by bender, Lender
<br />shall apply, no later than immediately prior to the ~ ilc of the Property nr it- .uyuisition by Tender. am• Funds
<br />held by Lender at the time o[ application xs at credit again: ~ the sums sec•umri b,- this A~fortgage.
<br />3. Application of Payments. Unless applicable Ia++' provides othervise, all payments received by Lender
<br />under the Note nod paragraphs 1 and 2 hereof shall be applied bs Lender first- ir: payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable wt the Note and on Future Advances, if
<br />any, and then to the principal of the Note and to the principal of Future ad+-ances, it 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 grotutd rents, if any, at Lender's
<br />~7 option in the manner provided under paragraph 2 hereof or bt Borraw•er 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 tnakc payment directly-, Borrower shall promptly furnish to Lender receipts evi-
<br />O denting such payments. Borrower sball promptly discharge any- lie: which 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 lien in a manner acceptable to Lender, or shall in good faith contest
<br />t such lien by, or defend enforcement of such lien in, legs( proceedings which operate to present the enforcement of
<br />the lien ar forfeiture o{ the Yroperty or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements no+v existing or hereafter erected on the Yrop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other i:azards as
<br />bender may reyuire and in such amowtts and for such periods as Lender ntay require, provided, that Lender shall
<br />' 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 the insurance shall be chosen by Borrower suhject [o approval 6}- Lender;
<br />provided, that such approval shall trot 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 insursnce carrier.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />±. inCerect may nrnc•ure insuran^e on the improvements, pay the premiums and such sum shall become
<br />immeaiately due and payable with interest at the rate set forth in said note uniiI paid and shall be
<br />secured by this \.ortgage. 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 renewals thereof shall by in form acceptable to Lender xnd shall include a -tandard
<br />mortgage clause m favor of and in form ttcceptahle to Lender. lender shall hsse tfte right to hold the policies and
<br />renev: als thereoi, snd Borrower shall promptly furnish to Lender all renews) notices and all receipts of paid pre-
<br />miwrs. In the event of loss, Borrower shill givy 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 otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided such restoratiot or repair is ecanomirtliy feasible and the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not econonitxlh- irtsible or it the security
<br />of this 9ortgage would be impaired, the utsurance proceeds shall be applied w the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. if the Yropert}- is abandoned by Borrower or if Borraw•er fails to respond
<br />to Lender within 30 days after notice by Lender to Bonrow'et• that the insurance carrier offers to settle a claim 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 Mortgage.
<br />Lrnless Lender and Borrower otherwise agree in writing, any suyh applitntion of proceeds to principal shall
<br />not extend ar postpone the due date of the utontltly instalitnents referred to in paragraphs 1 and ~ hereof or change
<br />the armount of such installments.
<br />If under paragraph I8 hereof the Yroperty is acquired 6y I_encier, al} right, title and interest of Berrewer in
<br />and to an+• insursnts polities and in snd to the proceeds thereof i to the extent ut the same ~ecu~~ by thi :vlsxt_
<br />gage imm€~:iattly prior to such sale or acquieitioni rr,ulting from dautaRy to fire Yro~rty prier to tilt sate ar
<br />acatrisitian shall pass to Lender.
<br />6. Prerarvation and iKmnfenance at Prop~riy: Leassholda; Condominiums. Harrower shall keep the Yrop-
<br />erty in good repair and shat) net permit or commit was*_y, impairment, ar deteriaratio: of the Yroperty and shall
<br />comply with the previsions of any lease, it thi, \[ortgage is mr a Iexsehold. If this \[artgage is on a condmninium
<br />unit, Borrower shall perform all ai $arrower's ohiigations under the dtttaratian at couioninium or master deed,
<br />the by-laws snd regulations of the condtminium project :ua1 constituent documents.
<br />7. Protection of Londai s Sr,eurity. if Borrower fail. to perform the cavtnanks anti agreeruents tantnined in
<br />this \Iortgagc, c±r tf any- actian or proceedhtg is commented which materially at3etts Lender's interest in the Pralr-
<br />arty, mtlm,ling. i,ttt net limited ta, eminent dontetin. insolvency, ra-ie enforcement, or urrxngements or proceed-
<br />ings love+h•ing a bankrupt oe dea~dent, thee, I-ender :~t Lender'. option, upon twtice to torrower, may tnakc sue~h
<br />appearances; disburse such sums and take such actian :as is necessarr• to protect Lender's interest, including, but
<br />noE hooted !,?, dtsbt.rrsement of reasonable attorney'- ices and entry- upon the Property- to make repairs. Any
<br />amounts dtsbur=ee! by finder pursusm- to this garagrap;i: ;.:vitlt interest thereon, shall i>eeotme additiocsal irrdaht-
<br />etlnessot Iiarrower.~ecarrd by this ~lorgage. Unless Borrower and Lender xgrcm to other tams of {aayment, such
<br />amounts shall hr payable olran outlet Irani lender to Harrower requesting payment ttrereoi, and sire)) bear inter-
<br />est from the date of disbursement at cite. rate stated in the Aote unless payment of interest st such rate would be
<br />contrary to applicably law, in which tvcnt such amounts shall brae interesk st thy high+~+t rate permissible by
<br />applicable Inw. VotirurE~ contsinecl in thin parngraplt i ehail regtrirc Lender to incur any ezpe!.se nr do any act
<br />herewtder.
<br />B. ltfrpeetion. Lcntler rrtay utake a' cause ro be made trta~nnhl+• entries uix?n an,i inspection:? of the Pttru-
<br />trty, [mtvidyd that Lender ehaII give Harrower Holier lu•iar ro nny- stn-Ir inspection -peoifyinc reanunabie cause
<br />khert3far related to I~nder'e iatarest in the Yrapertr.
<br />9. Caudemnatioa. 'The progeeds of any aw'artl or :laiat far tiarnages, direr[ ar consequentiat, in nonnection
<br />with any conderunatian nr other taking of the Yraprrty°. ur hart thereoi. or far c•onveyanee in Sian of condemna-
<br />tion, are hereby assigned and shat{ be paid to lender.
<br />In the event oC a total taping oC the Property, Che proceeds sha[I by npI?lied to the sunv, secured by this ~iart-
<br />gage, with the excess, if any. paid to Borrower. In the event of s partial taking of the Yroperty, unlek Harrower
<br />and Lender otherwise agree in writing, there shalt be applied to the sums secuxvi by this ~Iortgago such prop~r-
<br />tion at the proceeds as is equal to that proportion which the amount ai [he sums secured by this Mortgage ir+me-
<br />diately prior to the dote of taking bears to the fair market watue of the Yroperty imnu•diatcl}• prior to the date of
<br />taking, with the balance at the proceeds paid is Harrower.
<br />If Che Property is abandoned by Borrower or if after notice by Lentier to $or~ow•er that the condemnor offers
<br />to mnke an award or settit a claim for damages, Harrower fails to respond to bender within 3Q days of the date
<br />of such notice, Lender is authorized to collect and app!}- the proceeds at I-ender'- option titlcer to restoration or
<br />repair of the Property or to the sours secured by- this Mortgage.
<br />Linless bender and Borrower otherwise egret in writing, any soup apphtativtn of proceeds to principal shall
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