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If under paragra}~,h rS t+a~reof the Prohc rv , ~sarrl a~ flue Pro}_rty s othertc, acrluirel by Lender, Lender
<br />shall apply, na later tV+ut, intmeriiatvh^;,rim to the s,l raf elru Pmop,,+t~• nr rt- a~;•q u~itit>n by Fender. au}• Funds
<br />held by Lender at th+r, brae of application an a credit a},anrs~t flu u~+i~w .,~ccure:i b~ uu.: tlortga~a>.
<br />3. Application a€ Payxraents. Urtlc>ss apphcahlc 1, ,a~ prn5 xde.~+ ottrencrse, ab p a~t r ass receiv,~a 1 lrv I~,,ancier
<br />under u,e iota and paragraphs 1 ~sn+1 2 hereoF sital9 hr. st}s~pi]crd he t.t~sndcr fiat in p.a} metu of amounts payableta
<br />Lender by Borrower under paragraph '2 hereof, then to interest lrayablc on the dote and an Future Advances, if
<br />any, and then to khe principal of the \ote and to fire principal of Future 3dyances, if any.
<br />4. Char«es; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Praperty which inay attain a priority ever ±l,is Mortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof ar by $orrotcer making payment, when due, directly to
<br />Ehe payee thereof. Borrower shall promptly furnish to Lender all notices of anrounte due under this paragraph,
<br />and in the event Borrower shall make payment directly, Harrower shall pramptl}• furnish to Lender receipts evi-
<br />denting such payments. Borrower shalt promptly discharge any lien which has priority over this :Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such Iiez, 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 />such lien hy, or defend enforcement of such lien in, legal proceedings trbich operate to precept the enforcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. $orrower shall keep the improvements paw existing ar hereafter erected an the Prop-
<br />art}• insured against loss by fire; hazards included within khe term '~extendnd coverage", and such other hazards as
<br />t7), Lender may require and in such amounts :mod for such periods as :,ender mac require ; provided, that Lender shall
<br />~ not require that the amount ot" such coverage exceed that amount of coverage required to pay the sums sectn~ed'by
<br />this Mortgage. _
<br />The insurance carrier providing t!re insurance shat; be chosen by Horrower subject to approval by Lander;
<br />provided, tha6 such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided miler paragrapi+ 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 expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum 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 Bo: rower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />All insurance policies and renewals thereof sh+~i( be in farm acceptable to bender and shall include a stair+iard
<br />tnnrts~nga c~.lattsa in laver of and iu fort.: at^e•:tahha to Lrr~' ,
<br />•. ~ ,~cr. i,-ender ehaii have the rigizi to hold the polities an+.
<br />renewals Glzereof, and Borrower shall promptly furrrish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, $orrower shall give prompt natice to the insurance carrier and Lender, and Lender
<br />znay make proof of loss if not made prompt!}• by Borrower.
<br />Unless Lender and Borrower otherwise agree in t~•rit-in};, instn•ance praeeds ehall be applied to restoration or
<br />repair of the Property damaged, provided curb restoration ar repair is ecouamir;ally feasible and the security of
<br />this Mortgage is not thereby im}>sired. If such rrstontian ar repair is not ecanarnicalh• feasible or if the security
<br />of this Mortgage would be impaired, the insuratce }n•oceeds shall L•e applied to the sows secured by this Aortgage,
<br />with the excess, if any, paid to Borrower. If the Yra}}arty is ahandenecl by Horron•er ar if Harrower fails to respond
<br />to Lrrder within 30 days after notice by Lender to Borrower that the insurance. carrier offers to settle a claim for
<br />insurance benel?s, Lender is authorized to eathct and apply [hc insurance praeeeds at herder's option either to
<br />restoration or repair ci fire Propert}• ar to the suns secured b}• this \lor,gage.
<br />unless Lender and Borrower otherwise agree in rvritin}:, any such application of proceeds to }>rincipal shall
<br />not extend or postpone the due date at the ;Want!,!}• installments raierred to in paragraphs 1 and `> hereof or change
<br />the amount of such installments.
<br />if under paragraph ifi hereof fire Property is acq,wre,f by Ic:nder, all right, title and irate-rest at Berrc'aer in
<br />and to any insurance policies and in and to tlrc proceeds thereof Ito the extent of the sums seeurec} by this ~lart_
<br />gage immediatEly prior to suctt sale ar vt>f}ui.i:ionr t•esulting from damage to thi Yropert}• prior to the sale or
<br />~.,.r}ni~itiar slrali pass to Linder.
<br />g. r~Yvaorir6tic'iZ1V ~$'s$eristananc~ of PrQ~riy; I~~ghotds; ~ondcrnniutns. F~.~ssa[{•a; al; ;seep t.ha 1'rc~p_
<br />arty ir: goad repir and shall uof. permit r?r ,,rornrnit waste, impairment, m• datarioxation of the Propnaty and shgt!
<br />ranpl;, a ._e Frs.°L:tiiis ai uny lease, ,f thr~ tlort.gage is uti :, izaschai+l. fi this ilor[gagc rs on a condowiufum
<br />unit, I~arrow~r shat, perforn, all of Bort-awer ahigations un+ier lire tiec}aratia:, bF condominium or u3aster deed,
<br />the by-laws and regulations of th!r condominium project and constituent documenks.
<br />7. Protection of Lender's Security. If Harrower tails to perform the covenants :urd agreements contained in
<br />thin ~fort.gage, or if any actio:t or proceeding it: consmencccl which materially affects Lender's interest in the Prop-
<br />erty, including, but trot limited ta, eminent danrain, insalvencv, Cade cnfartemenC, or• arrangements or• ptviceed-
<br />ings involving n bankntpt or decedent, then bender at l,encicr`s option, upon natice to Harrower. may make such
<br />appeaeanees, disburse such Bums and take such ;motion ua is necessary u, Izrotect Lender's interest. ineludiug, but
<br />not limited to, disbursauuent of reasonable attorne}°'s fees ants t•ntn• upon the Pruperi}• to make repairs. Any
<br />atnaunts disbursed by Lender pursuant to this paragraph 7, with interest thereon, sitatl 6ecama additional ind~bt-
<br />edness of Borrower seeuracl by this \lortgagc. ilnless Harrower and 1',ender agree to outer t-arms pf payment, suelt
<br />amounts shall be payable upon natice front Lender to $arrawer recptesting payment thareaf, and shall bear h~tter-
<br />eat from the date of drshut~emettt rat t.hc rate slated in the \'otc unless payment nF interest at such rate would br
<br />contrary to applicable la;v, in which etent such arnot,nts shall bear interest at ttre highest rate permissible by
<br />applicable Ir,w, Aathirrg eantair?ed i,t this paragraph "shall rs>quire Fonder to incur any c+xpense er do any set
<br />hereunder.
<br />8. Inrpectloa Lcndct u+av make + r eau t to be malt reason thh• autrtc~ npor rural msprcttans of the Prop-
<br />?'rtY, pru~ ided tl f r,e•nd?.p _t it p:~ - ~ -:rrau-~_ i+?++.'~' pr+il' to ,i,., _-n+°!+ .+.: pee-ttat+ '~pf,, ftvrnt; rc~-a+ci 3,,,,_ muse
<br />therefor rebated tc: Lender`:; inter€st in t he PrCrt~crty.
<br />9. C.andetrurtEtion, The praeeeds of un}~ award m' clairtt tar eian,:igas, direct or aonaequrantial, in aautrectimt
<br />with any randemnatian or oth€r taking of the Praprrt}•, tu~ part thoreol, ar for canveyancr in lieu of randfwna-
<br />tiaa,are hereby assigned sud shall ba paid to Lender.
<br />In the event of a total taking ot'the Property, the. proceeds shall 6e uppticd to the sows secured by this 4tart-
<br />gage, with *ha excess, if any, paid to Barrotvar. In the event of a partial taking of the PraFx>rty, aule~~ Borrower
<br />-and Lenderotharwise agree in writing, theca shall 6e applied to the sums secured by khislfortgage ~ueh prapar-
<br />. Lion of Lhe proceeds as is equal to that proportion which the amount of the sums secw•ed b}° this ~fartgaKe imme-
<br />diately prior to the date of taking bears to the fair nu;rket valor u{ the 1'ro}warty inunt>cliately prior to the date of
<br />taking, with th© balance of tho pmceada paid to Barrawcr.
<br />.lf the Praperty is abatulonetl by }3orrowar ar if after notice h}• hander to Borrower that the con;iemnor offers
<br />to make alt award or settle :} claim for damages, Barrawcr fails to ras}rand to Lender within 30 days of the date
<br />of such rtaticc, I:ender is authorized to collect and ap}rh• Ghe proceeds st Lender's option either to restoration or
<br />repair of the Property ar t.a the stuns secured by this \iartgag,t•.
<br />Unless Lander a::tl Borrower atherwisa agree in writing, any such application at praeeeds to principal shall
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