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<br />If under paragraph 18 hereof the Propert}• i- suki or rite 1'rnperty is utl;ervise acquired by Lender. Lender
<br />Piln1l apply, no later than immediately prior to the sale of d;e Property or its acquisition by Lemaer'.:ury Funds
<br />held by Lender at t}ra time of application as a credit against the rums secured he this -1TOrtgage.
<br />3. Applicatfon of Payments. Unless apniicable law provides cthenvise, all payments received by- Lender
<br />under the Note and paragraphs 1 and 2 herecf shall e applied by Lender first in payment of amounts payable to
<br />Lender by Borrower under l;aragraph 2 hereof, then to interest payable on the Note anti on Future Advances, if
<br />any, and than to the principal of the Note and to the principal of Future Advances, if any.
<br />9. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, final and impositions attrib-
<br />utable to the Property which may attain a priority over this ~iort.gage, and ground rents, if any, at Lenders
<br />option in the manner provided under paragraph 2 hereof or by $ormrver making payment, when due, directly to
<br />the payee thereof. $orrower shall promltly furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Burrower shall make payment directly, Borrower shrdi promptly furnist: to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shad not be required to discharge any such lien so long as Borrower shah agree in writing to
<br />the payment of the obligation secured by such lien is 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 />~%`` the lien or forfeiture of the Property or any pari thereof-
<br />5. hazard Iasurmrce. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against loss 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 Lendar may requ!ra: provided, that Lender shall
<br />~ - not require that- t.ha amount. of such coverage: exvred that amount of coverage required to pay the sums secured'by
<br />®` this 1orgage.
<br />Q1 i'he insurance carrier providing the ursurance shall be chosen by Borrower subject to approval by Lender;
<br />t"" provided, that such approval shall uoi l:e unreasonably withheld. all premiums on insurance policies shall 6e paid
<br />at Lender; option in the manner provided under paragraph '2 hereof ur by Borrower 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 prote{•t
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum shall become
<br />immediat{rly due and payable with interest at the rate set forth in said note until paid and shall be
<br />s.:~ ad !:• this l~I^t•tgage Failure by Borrower to comply may, at optic.. of Lender, ecnstitute a default
<br />under the•terms of this Mortgage.
<br />Al! insurance policies and renewals thereof shall be in Conn acceptable to Lender and shall include a standard
<br />morigage { ]cola in favor oI and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the eveni of loss, Borrower shalt give prompt notice to the insurance carrier and Lender, and Lander
<br />may make, procf of lass if not made promptly by Borrower.
<br />Unless Lender and Borrower cthenvise agree in writing, insuran~^ proceeds shall 6e applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is economically feasible and the security of
<br />this'1lortgage is not thereby impaired. If such restoration or repair is not esonotnicatly feusibte or it the security
<br />of this .Mortgage would be impaired. the insurance proceeds steal! Le applied to the sums secured by this A4ortgagc,
<br />with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within 30 days after Halite by Lender to Borrower That the insurance carrier offers to settle a claim for
<br />insurance benefit,, Lender is authorized to collect. and apply the insurance proceeds at bender's option either to
<br />restoration or repair of the Property or to the stuns secured by this ;ltortgaga.
<br />LTrrless Lender and Borrower otherwise agree is writing, any such application of prneaeds to principal shall
<br />not extend or postpone the due date of rite monthly installments referred to in Iaragraphs 1 and `L hereof or change
<br />the amount of such insta!lmettts,
<br />IE under paragraph 18 hereof the Property is acquired by Lender, alt righ, tills ami interest of Borrower in
<br />and to any iusurant°c palteies and in and to the l;rarar{is #her{~of tto the extent of the- stiYl6 sec~urt:d by° this t~fori-
<br />gage iimnie}iaiel{• pr,ar to such sale or arnlnserar,; r~tultir~ from daenaga to t!te Protract}- nriar to tits sale ur
<br />acquisition shall paw to Lender.
<br />g. Pr ~rvatiea and ~~uterr€~nce Qa Preperiy; Lholda; ~rendQrsi~iarrta. Bcrrtrwer s kQep t. P:`op-
<br />art; in g!_ {repair ~-..' sl}all ur,t perruit ur cn~mzriit >}ast¢, iurpairrrae~rt, nr ,ie~rts~ratiaoze of th€•P;•cr}~st; . ^.d s}~l.I-
<br />comply with the pror:sions of any !ease, if this lortgage is on a leaseltol{t. If this Mortgage is ou a condominium
<br />unit, Borrower shall perforn} all of Borrower'. obligations under the deciarstion of condominium or roaster deed,
<br />the by-]alas and regulations of the condominium project and constituent documents.
<br />7. Protection of Lender's Security. if Borrower fails to perform the covenant.. and agreements contained in
<br />this Mortgage, or if any action or proceeding is coauuenced which ma[ariall}• affecW Lenders interest in the Prop-
<br />erty, including, but nut limited to, eminent dmuaiu, insuh•ency, uncle enforcement, or :rrrangemanis or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Boxrowar, may make such
<br />appearances, disburse such sums and cake such action ns is uucessary to protect. Lender's interest, including, but
<br />not limita{I to, disbursement of masonal,lc attorney's teas :}nd c'ntrY upon the Property to make repairs, Auy
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional itrdtthtr
<br />edness of Borrower secured by this Jortgage. Unless Burrower and Lender agrne to other terms of payment, such
<br />amounts shall be payable upon notice front Lender to Borrower requesting payment. thereat, and stw!1 bear inter-
<br />act from the data of disbur~eu;ct}t at the rate state{i in the Note unless payment of intete~t at such rate would be
<br />contrary to apphcable taw. in which event ~ueh amauats shall Isar interest at the highr~st rate perYnisaible 6y
<br />applicable law. Nothing cnntaineri in this paragraph ?shall raquim Lendar to incur any expense or da any act
<br />hereunder.
<br />8. Jnepeehon. Le!}{!er may ]cake ot• cans€' to be made trasnnnhlu entries utxtn and inspr{_sti4nv u[ the Ptep-
<br />arty, provided that bender she(} give Burrower notice prior to any such inapeatinn speeifyin{; reasonable cause
<br />therefor zelatecico bender's interest itr the Property.
<br />9. Condenvtation. 'Pha proceeds of any award or claim for damages, dzrect ar conse{luantial, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or for conceyanea hr lieu of con{Ianma-
<br />tion, cry hereby assigned and shall lx paid to Lendar.
<br />In tiro event of a total taking of the Property, the procae€is shall Ile applie{i to the stuns sacure{i by this Mort-
<br />gage, with the excess, ii any, paid to $orrow•ar. In the avant of a partial Laking of the Property, unless linrrowar
<br />and Lander otherwise agree in w fling, there shall be applied to tho sums secured by this \Sortgage such propor-
<br />tiun of the proceeds ns is aqua! to that proportion w•hiah the amount of the sums saeurad by Ehis Mortgage imme-
<br />' diately prior to the date oC taking bears to the fair market value of the Property immediately prior to tho data of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property, is abandoned by Borrower or if after notice 6y Lendar to Borrower thai the conda:nnor offaes
<br />t~ nicks an arverd ar sat-tie a a}aim for datrragas, Borraaver falls to respond to Lender within 30 days of the data
<br />of such uotiee, I~nder is authorised tc calleet and ep[?i}' the proceeds at Lender's n{~tiar, aiiher to restoration or
<br />repair of the Property or to the sums s?curad by tltis \Inrtgage,
<br />U:rler-s 1:encler and Bnrros:•ar oih~revise agree ir. writing, any €uch application of praeaeds to principal shat'
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