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<br />If under paragraph 7$ hereof the Property is sold ar the Property is otherwise ucquiced by Lender. Lender
<br />shall apply, no later than inuuediately prior to the sate of the Property or us acqunrion by Lender. any Fun[is
<br />held by Lender at the time of application ac_ a oredrt against the sums secured try this Mortgage.
<br />3. ~,pplieation of Payments. Inless applicable law provi+ics otherwise, all payments received by Lendet
<br />under ti:e Kota and paragraphs I an[P 2 hereof shall he applied by I-ender first- in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note and on Future A[hanr-es, if
<br />i any, and then to the principal of the Note and to the principal of Future Advances, ii any.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and otter charges, fines and impositions attrib-
<br />- utable to the Property which may attain a priority over this \-Iortgage, and gromtd rents, if any, at Lender's
<br />option in Tile manner provided undet• paragraph! hereof ar by Borrower making payment, when due, direety to
<br />~ the payee thereof. Borrower shad promptly furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make paynte;it directly, Borrower shall promptly iurnish to Lender receipts evi-
<br />dencing such payments. Barrower shall promptly discharge any lien which has priority over this Mortgage: pra-
<br />vided, that Borrower shall not be required is discharge env such lien so long ;ta Borrower ,hall agree in writing to
<br />the pa}'inept of the obligation secured by such lie^ in a manner acceptable m Lender. or shall in good faith contest
<br />`~"')`ti such lien by, or defend enforcement of such lien in, legal proceedings +vltich operate to prevent the enforcement of
<br />VV the lien or forfeiture of the Property or any {,art Thereof.
<br />~ S. $sszard Insurtmca. Borrawer shai! keep the improvements paw existing or hereafter erected on the Yrop-
<br />erty insured against loss by ii e, hazards inchtded within the term "extended coverage", snd such other hazards ae
<br />Lender may require and in such amounts and for surf; periods as Lender may require: provided, that Lender shall
<br />' not require that the amount of such cevrrage r.uee+i tun amount- of coverage requited to pay the stuns seaured'by
<br />this ivfortgage.
<br />The insurance carrie;• providing the ;nrarar,eti shall be choset: b}- Borrawer subject to approval by Lender;
<br />provided, that such approval shai! not be w:reaeonabh• withheld. All premiums on insurance policies shall be paid
<br />at Lender`s option in the manner pruvicie~i unticr par;sgrsph '2 hereof or h}• Borrower making payment, when due,
<br />directly to the insurance carries.
<br />In the event any policy is not renewe[i on or before ten days of its expiration, the Lender, to pmtect
<br />its interest, may procure insurance an the Improvements, pa}• the premiums and such sum shai! lttrome
<br />immediately due and payable t4ith interest at the rate set forth in said note until paid and shall be
<br />soured b-• 'his ~4artgage. ;=allure b}° Sarrawer to comply may, at option of Lender, constitute a cic-fault
<br />under thevtenns of this D4ortgage.
<br />Ail insurance l,tclicias antt renewals therein sl;s!1 be in faun acceptable to bender an<I shat! include a standard
<br />mortgage ~ !Huse ir, favor of and in Tartu accepttaltie to Lender. Lender shall have the right to bold the policies and
<br />renewals ti;ereof, and Borrower shall promptly furnish to Lender all renewal notices amd all receipts of paid pre-
<br />miums. In 'the eveni of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of toss ii not made promptly by Borrower.
<br />unless Lender and Borrawer otherwise agree in writing, insurance proceeds shall lie applied to restoration or
<br />repair of the Property damaged. provided such resturskion or repair is ecanamicaily feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such restoration or repair is nut economically feasible or ii the security
<br />of this Mortgage would be impaired, the insurarsee proceeds shall be applied to the sums secured 6y this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower ar if Borrawer fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, bender is authorized to called and apply fhc insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Barrower otherwise agree in writing, any sueit application of prac'e.2ds to principal steal[
<br />not extend or pastmane the dun date a£ the monthly ittstaIhnents referred to itt tasragrsphs } and ~ hereof ar ahan~
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, alt right, title and interest of Borrawer in
<br />and tc any insurance poiicie+ and itt anti t[a tite proecetls thereof tta the extrztt of the suet, sectard 6y thin ~Iart-
<br />gage itnntcdiateiy prior to such sail ar sequisitiattt rc±uitin>_* horn d:tin==; €` tr, the Yra}tert}• pri+=r t~ tl*c sal? ar
<br />acquisition shai! pass to Lender.
<br />g.::•rvaticrz cud itatr~;.a a; FYcpertr; Le€tsehalt3s; Cautlrsrriinituns, Borrower :hall I:oep tht: Yra -
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<br />----erty in g~xl reps:r :and shall trot perntt ar tz,mmlt waste, impainuent, ar dceeriorntian of the Property anti shall -
<br />comply with thu prarisi[nts of any [ease, if this Atartgage is ou a leasehold. If this Jtortgage is an a condominium
<br />unit-, Barrower sltstl perform all of Borrower's obligation. under the declaration of candoutiuiurm or mastor deed,
<br />the by-laws stud regulations of the condominium Itroject and constituent doettntents.
<br />7. Protection at Lender's Security. It Borrower fails to pertorm the cuven:utts and agreements contained in
<br />this Alortgage, or ii nay action oe proceeding is conunenced which materially st}t[ts fender's interest is the Pr~p-
<br />erty, in;duding, but pat limited to, ewint:nt domain, insolvency, cote eniurcemeut, or arrangements or pttueed•
<br />ings involving a bankrupt m• decedent, then Lender at Lender`s aption, upon nati.rc to Borrower, may make such
<br />appearances, disbunc such sums and take such +tetiou as is necessary to protec-t Lender's interest, including, but
<br />not lirniied to, disburacntent of reasonable attorney's lees and entry upon the Property to make repairs, Any
<br />amounts disLun•ed h} Lender p!trsuant to this paragraph 7, ;rich interest thet'con, shall beeatne additianai indent-
<br />etlness of Borrower secured by this \Sortgage. Unless Borrower and Lender agree to other tetrns of payment, such
<br />amounts slualf he paysbin upon notice irtnu Lender to Borrcucet requesting payment thereof, and shall kxear inter-
<br />est from the dale of disbursement at the rate stated in the Notc unless payment of interest at such rate would lie
<br />contrary to applicahlc law, in which event such amounts shall hear interest at the highest rate twrmisaiblc by
<br />spplieabla law.. Nothing contained in this paragraph s shpt! require Lender to imeur any expense or do any act
<br />hereunder.
<br />8. inapatNon, I.endcr utsv maka_ er t•sr~e to lit mattr rea~atra!t!e e•€ttrit!= xp+cm and i~p~~tia:;s of the Pfa}~
<br />et•ty, ln•avided that Lcndor shall give Borrower notice iu•iar to any sorb ins}teetion specifying t~asnnahlit zati>fe
<br />- therefor related io Lender's interest in the Property.
<br />9. Caadetxutatlan. The proceeds of any awani ar claim for damages, diree6 ar oonsequantisl, itt connection
<br />with any t=andemnatian or other taking of the Yra}terty, m• krart thc•reaf, ar for conweyanse in lieu of r-undhzmta-
<br />tion, are hereby assigned snd shall be paid to Lender.
<br />-- - In the event of a total taking aE the Froperty, tic tuocee[is shall lw applied to the runts se+•urgti by thii ~4ari-
<br />gage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />-'end Lender otherwise agree in writing, there shall ba applie[t to-the stuns secured by this 3lortguge such prop~r-
<br />lion of the proceeds as is equal to that proportion which the amount of the sums secured by this \Iartgege imme-
<br />' diately prior to the date of taking bears to Ute fair market value of the Property hnmetliately prior to the date of
<br />Taking; with the balance of the pr: eeeds paid to Borrower.
<br />If the Yroporty is abandoned 6y Barrowee or if after notice b}• Lender to Borrower that the condemnor offers
<br />to make sr. sward or settle a claim far datnsgos, Borrawer fails to respond co i.ender within 3tI days of the date
<br />of such notice-, Lender is authorised to cnileet -and apply tiie proceeds itt Lender's aption either to restoration ar
<br />repair of the Property or to the s.tms secure[! by this Mortgage.
<br />Linters I.enda=°-and 3;arracser othervise agree in writing, any such application of proceeds to principal shall
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