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<br />if ut.der psragraph 1$ hereof tf~;c Property is soEd ar the Property is otherwise acquired by i_ender. Lender
<br />shall apply, no later than nnmediately Irrior to the sale of the Proper(-v or it= acquisition by Lender. any Funds
<br />held by Lender at 'the time of application as a credit against the suns secured by il:is Mortgage.
<br />3. Application of Payments. Unless applicabl^~ la:v provides othertise, all payments received by Lender
<br />under the Note and paragraphs I and 2 hereof shah be applied by- Lender 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 Advances, if
<br />any, and then to the prinaipal of the Note and to the principal of Future Advances, if any.
<br />4. Charges; Iaens. Borrower shall pay ail taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority. aver this Mortgage, and ground rents, if any, at Lender's
<br />^~ option in the manner provided under paragraph) hereof or by Borrower making payment, when due, directly to
<br />the payee thereof. Borrawer shall promptly furnish to Lender all notices of amounts due tinder this paragraph,
<br />"y°~ and in the event Borrower shall make payment directly, Bor•o'a-er shall promptly furnish to T..ender reeeip~ evi-
<br />dancing such payments. Borrower shalt promptly discharge any lien which has priority over this Mortgage; pro-
<br />^,,,,~ vided, that Borrower shall not. he required to discharge any such lien so long as Burrower shalt agree in writing to
<br />the payment of the obligation secured by Buell lien in a manner acceptable to Lender, or shall in good faith contest.
<br />~~ such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of
<br />~ khe lien or forfeiture of the Property or any part thereof.
<br />~ 5. Harald Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />, arty insured against lass 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 periods as Lender may 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 illartgage.
<br />The insurance carrier providing the insurance shall ee chosen by Borrower subject to approval by Lender;
<br />pnn•ided, than suctr approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid
<br />at Lender's aptiar. in the meaner provided uudrr paragraph 2 hereof or by Borrower making payment, when, due,
<br />directly to ttte insurance carrier.
<br />In the event any policy is not renewed on ar 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 h.- This 'Ltortgage Failure by Borrower to comply m-ay, at op*.iar. of Isnder, constitute a default
<br />under the terms of this Mortgage.
<br />Atl insurance policies and renewals Thereof shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shat] promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and bender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insuranw proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided suer restoration or repair is eeenomic:ell}- feasible and the security of
<br />this Oortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the insurance prareeds shall be applied to the sutras secured by this 1\Iortgage,
<br />with the excess, if env, paid to Borrower. If the Property is abandoned by Borrower or iC Borrawer fails to res{wad
<br />to bender :vithin 30 days after notice by bender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to calleet and apply the insurance }?roceeds at Lender's option either to
<br />restoration or repaie of the Property or to the sums secured by this \(ortgage.
<br />Unless Leader and Borrower otltenvise 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 pamgranhs I and 2 hereof or change
<br />the amount of such insiaihnents.
<br />If under paragraph i$ hereof the Property is acquired by I.erder, all right, tit'e and interest of Borrower in
<br />ar;d to any- insurance pahcice find in and to tltc• Itrasrs~ls thrreaf tta thr• extent of tIu runts securest by this ~Iott-
<br />gage ira:nes}lately prier to sorb sai:z r:r acs}ui,iti~:n restrlting from dautagr to eitr Pra}>erti'-prior to the sale ar
<br />acquisition shall pass to Lender.
<br />5. ~-~rc~aa ~d ~'•i~a#arrar=aa ~ r=rap~ar~,*; haida: Cenaemiaiuma. Borrawer .:h ;ii ;:gip t. ° P gyp=
<br />--_- arty in geed repair t {shall not ~erttit er ~asn.jit waste ,s:x~xirt?ten' ~ «:~rtrtrat.att ~f the Ytxspert~ and 3tiap-- -
<br />compiy with the provisions of say lease, rt thts Mortgage rs vu a leasehahl. lC this Mortgage is an a vondominium
<br />unit, Borrower shall perform all of Harrower'; vbiigatian; under ti:e declaration of condoutiniutn ar master lord,
<br />the by-laws and regulations of the condominium projrc: and cunstih;ent documents.
<br />?. $rotection of Loader's Security. If Borrower fails tv perform thr covenants and agreement-0 contained in
<br />this Mortgage, or if any action or proceeding is comtuencrd which nmterially atlects Lender's interest in the Prap-
<br />erty, including, but not limited to, mninent domain, insoh•ency, eale enloreentent, yr arrangements ar proceed-
<br />ings involving a bankrupt ar .decedent, then Lender rat Lender'. option, upon notice to Borrower, ;tray snake such
<br />appearances, disburDe Buell Burns and take such action as i.s ttccessan^ to protect Lender`s intet~t, including, buG
<br />not limited to, elishursement of reasonable attorney's tees and entn• upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon. shall lwcome additia~tal indchta
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amomtts shall be payable upon notice Crom I.andce to Hornnvcr requesting payment thereof, and shall bear inter-
<br />~t from the dirtx of disbumememt at. the rate stated in the Nota tmlee~ payment at interest at such rata would be
<br />contrary to appfirtLte late, in which event such amounts shalt (tear interest at the highest rata permissible by
<br />applicable law. Nothing contained in this paragraph .shall require bender [o incur any expense or do any act
<br />hereunder.
<br />8. Inspsetion. (.ender may make m• cause to Ire made reasanahlc entries upon altd inspect_iaas of the Prag-
<br />er<y, pruvidod that Tender shall give Borrawer notice lu•ior to any such insp~ctimi apeeifying reaaanahae eau~e
<br />therefor related to Lender's interest in the Praperty.
<br />9. Condamrratiaa. The proceeds of am• award or claim for damages, direst or cansrquantiai, iu cannectian
<br />with any condemnation or ether taking of thr. Praprrt}•, or part thereof, or tar rtmveyance in lieu of condetuna-
<br />tion, are hereby assigned and shall be paid to Lender.
<br />In the event of a rota! taking of the Property, the proceeds shall be aieplieci ko the sums secured by this Mort-
<br />-- gage, n•ith rho excess, if any, paid to Borrower. In the avant of a ;>_tirtiat taking of the Property, unless Borrawer
<br />and Lender otherw°ise agree in writing, there shall ba applied to the runts secured by this llprtgage such propor-
<br />tian of the pmaeeds as is equal to that proportion which the amount of-the sums secured by this iliartgage imma-
<br />diateiy prior to site date of salting bears is the fair tuarket value of the Praperty immediately prior to the date at
<br />taking, with the balance of the proceeds paid to Hormwer•
<br />If the Praperty Is abandoned by HorNwer or if after notice by Lender to Borrower that the condemnor offers
<br />to make nn award or settle a claim far damages, Borrower fails to respond fu Lender within 3D days of the dale.
<br />of each notice, L.ensler is authorized to s;allect and apply the proceeds at Lender's option either to restoration ar
<br />repair of rho Property or to the sums secured by this Mortgage.
<br />Unless Lender and Bat•rawer cthenvisa ag:'eo in writing, any such application of pnceeds to prittcipaf sh;iil
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