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If under paragraph IS hereof the Property i= snlri or the property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior Lo the- sic o; the Property or itr' acquisition by Lender, ;tny Funds
<br />held by Lender at the time of application as as credit against the rums secured by this 1~Iortgagc.
<br />3. Fipplication of Payments. IInless applicable isw hravicies uthonvise, all payments receSved by Lender
<br />under t.ite iVate and paragraphs I and 2 hereof sit~alC he applied by Lenetcr first in payment of amounts payahie to
<br />Lender by Borrower under psragralah '~ hereof, ti'usu to interest patvable nn the ?Vote and on Future At'lv:?,nnes, if
<br />any, and then to the principal of t~ha Notc and to ti€e principal of Future Aclvanees, if any.
<br />4 Charges; Liens. Borrower shalt pay all taxes, assessments and athrr charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority saver this Mortgage, and ground rants, it ~ ~y, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directly to
<br />P=
<br />the payee thereof- Borrower =hall promptly furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event. Borrower shall make payment directly, Borrower shall prompth• tarnish to Lender receipts evi-
<br />dencing such payments. Bor!-ow•er ,halt promptly discharge any lien which has priority over this iliertgage; pro-
<br />vilest, that, Borrower shall not be required to discharge any such lien so Imtg as Borrower shall agree in writing to
<br />the psymert of the abiigst.ion secured by such Lien in a manner aceepiable to Lender, or shall in good faith contest
<br />such lien by, or defend enforcement of such Tien in, legal proceedings which operate to prevent. the enforcement of
<br />the lien or forfeiture of the Property or anv part thereof.
<br />~ S. 13azard Insurance. Borrower shalt !peep the improvements now' existing or hereafter erected on the Prop-
<br />b` erty- insured against loss by fire, hazards included within the term "extended coverage", and suet other hazards as
<br />Lender may require and in such amounts and for such periods as Lender Wray require; provided, that Lenrier shall
<br />not require that the amount of such coverage exceed that amount of coverage required to pay- the sums secured-by
<br />i,his i\Iortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject 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 option itt the manner provided under paragraph 2 hereof ar by $orrower 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, ko protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum. spa-1 become
<br />immediately due and payable with interest at the rate set earth ;'n said note until paid and shra13 be
<br />secured by this Mortgage- Failure by Borrower to comply rnay, at option of Lender, constitute a. default
<br />under the terms of tizis Mortgage.
<br />All iT=uranre peliuies and renewals tl',€ereai ~hsll 6e in form aecelatahle to Lender and shall iuehtde a standard
<br />mortgage cl=rose in favor cif and in form scceptahle to Lxrnder. I_Etnder shall 14acrc ekes right taT Iraltt E=ne ,policies and
<br />renewals thereof, and Harrower shall promptly furnish io Lender alt renews! notices and a1I reaeipt~ of paid pre-
<br />miums. In the event esf lose, Barrowaa• shall give prompt notice to the irsurance carrier and Lender, and Lender
<br />may make proof of Loss if trot made promptly 'uy Borrower.
<br />TJnless I_endvr anc9 ''Hnrrawer oth¢rrwi~e agree in writing. insuraurv pttleac'ds shall tae ap~ahed to restoration ar
<br />repair of the Property da~ttaags~i,- I;arorrideN~'ti~ wch restoration or n!~pair is acountniea,tly fe~asiblle n~nd the security of
<br />this 1ortgage is not thereby impaired. ii sorb restoration or repair i,~ not ecanatrticaIIy feasible or it the security
<br />of this Mortgage would be impaired, rite insurance proceeds shall ta<r aI'rtaiicxf ie't the sums secured by this \I'ari:gage,
<br />with the excess, if any, paid to Barrocver. Ii the Yraneny- is abandoned by I3arrrrwe;• ar if Borrawer fai,Es #a restwnd
<br />to Lender within 30 days after notice hy- I.errcicr to Borrower that the irosurane'e• carrier assts to set„tla a china tar
<br />insurance benefits, I-ender is suthorizetf to cohevt amt apply the insurance proceeds at L,ender's ap~~ion utither to
<br />restoration or repair of the Property or to ricer sums secured t:y this \Tartgage,
<br />unless Lender and Borrawer otherwise agree in writing, any suai',o- ±rpplicatiau of proceeds to ',prdatvil'aa1 shall
<br />net extend ar i.ostpnne the due derv a2 t;$e ri9antltly instalhnents referred io in paragraphs I and 2 hereof nr change,.,
<br />Gho ~au~t of such ir:st.all:rrt€ts.
<br />If under paragrapls IS 1'aaraeattl,c' I't^aperty is svquired by Lender, all right, title"and interest of I3arrawer irr'.
<br />and to Wray insuran<e ziraIiv't~ rnnel ire aun~Gt t~q flee prr,ec~eris theraRf its t.hal extent of the; come seeiured Lvt~, this Mortri~'~
<br />~~e imr • dm;,elr rrrYu4 to ,}rya,.} -53a u'.tr ~,.-tttui,ition+ resulting tram damage to rite Property t'~a'~ei[xr tetiire solo erm'~!
<br />a^qu:=tt a 1 .I ;; sk I...un;;i'3':,
<br />ti. Preservation, cad I't'~'iataarrrtow a& Pcaparty: Lwsaholdu, Condaariaiuma, 1~a~arrowar shall keeirs fire Peas.,
<br />art} it- gcx-~f a~~I~ta, ~ .ti ~kna}~a, r~~rsl I,+ertm} t t}r s,rnaeit haste, impai'rnrent„ ar deteldarati~V'an of the I'1'apart~~p and shalf~i
<br />campy wit -.hc pruwisians ai a::y :sass, , t:i:.iortgage is an a ieasehoid. If tiffs ~Tortgage ?e an a candamirsi:~
<br />unit, Borrower shall ; erfon;a ati of Borrower', obligations under the declaration of condominium ar master decd,
<br />the by-laws and regulations of the eerrdaminiutn pro}eet sm3 constttuvnt dovtnnents.
<br />7. Protection of Leadei s Security. It Borrower fails is perform the eaveusnts and sgreentcnta vaniaine€I in
<br />this Jiortgsge, ar if any action r?r larocaerling is rasnr.€enced which utateriaity affects Lender's interest in the Fra~r+-
<br />ert-y, including, t+u* not limited to, emine-nt domain. ut,oivenry, co<Ir enforcement, ar arrangements ar prac~d-
<br />ings involving a bankrupt or decedent, then Leader at Lender's option, upon native to Borrower, nuay male suc}t
<br />appearances, +hsbt;ryc =t€cdt aunts aced take sttatit uterion as iq necessarw~• to Ia'ratrrr,,t Lender's interest, tnelwdiug, lent
<br />not limited to, dishursertirnt of ~iasanak~ie atLarney`s fees and entry trpat~a fhtr Pnpperty to ut~a r^epa Arty
<br />amnunts diaUutgesl toy Lender pttrsttant to tl'~i€i;+ p7a~irstg~,;wph', with irgtarept~t tl~ter~ta, shad become att~litiaaral andeibtr
<br />eclna:s of Borrawer s+•anared hy- tl;ta 'ticrtt*,>gs:. T:'tp~',rs3ts Baraower ctrl 1 t.rt:',1aa•,ag~trr to other termu oi: laa;T+'rnrrut, s}'rah
<br />amounts shall boa pay^ablr. upon u'ro~tdia~e Irau'n ',f,.,q~nd~~tpp^ f~~a Borrower r~tlrltry~st~king' (I;rntyt,rryut+~nt tharoof, and st~urul9l ~+~hasr inuia~rti~
<br />eat from the date; of tlhst+u'~rsamvm'at 8wt the. aro~t~wr st~aG~l;t in the Nata uaa~~ldPe~n 1aaiky,~N,ats~ttt a~i k'~ntarest at suitY:v r'ut~~4au '~u•~auLd'~; kw
<br />contrary to asapliralrlra law, in whtelt cu~,ent rtuetu atlaounts shall kaetrr' iir,temtrsi. trt~ the highest ra&e 14awq~,ttaGNralihPe by^
<br />applicable law. Vathing eontaint-tE 4n tt'mas t'aaragrse'I,h 7 sltalI trqurc~ I~,t'rrldMPr #o incur any expand err' t'Ea arty act
<br />hereunder.
<br />8. IaspactiwX, i.eadet may iraakt tar tetras to tm made reasw~ta~alrtth onsirhns t}pan anct inspeatiags 4t tlae'~Prop-
<br />erGy, prr,v:dsd tLw' ~.-adar =I3s.'! g;~:e riar=ut-ar natsrr }+rrcr to a~riy .lt€t: in,sls~+tir€€; sperityiry; ra•r€san~Shle rats«e
<br />therefor related to Lender's interawt in th~r l'rope;tt}°.
<br />9. Coademnafioa. The prsxcaxls of anj^ au-ard ar claana far piautp;grist, direrit ar vorasequential, aaa ~aolrneatian
<br />with any vondemnation ar other taking aai' the k'ro}army. or part tlren wad, ar i""trl- ~aanveyance in lieu ts'f t+prtd4rtlztya-
<br />Lion, era hereby askrijTned and shall Le paid to :l,.ender.
<br />Iu the event, of a tatai taking of khe Property, the proceeds shall i,e applied to the sums secured 6y this Mort-
<br />gage, with cps excess, if any, paid Ea Harrower. In the even6 of a partial taking of the Property, unless Harrower
<br />and Lender otherwise agree in writing, there shall kaa ap}abed to the awns secured Fiy this :Mortgage such propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the stuns secured ray this Mortgage hnme-
<br />- diately prior to the date of faking bears to the fair market- value of the Property imnetvliately prior to the dater of
<br />tasting, with the balance of the proceeds paid to Horrawer.
<br />It the Property is abandoned by Horrower ar it Wrest notice by Leader to Horrower that the eondenmor offers
<br />to make an award or settle a alsstn for damages, $orrower fails to respond to Lender within 30 days of the date
<br />of such native, Lender is uuihorixed to collect and apply the proceeds at T.ender's option either to restoration ar
<br />repair of ilia Property or to the sums secured by this Mortgage.
<br />L`alesa Lender and Harrower otherwise agree in writing, any such application of proceeds to principal shall
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