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<br />If uu~er paragraph i$ hereof the Yro~~ert}- is gold ur the Property- is othcrtci=e arnuired by bender, Lender
<br />shall apply, no later than immediateh• prior to the sale of the Property- or i[~ acquisition by bender, any Funds
<br />held by Lender at. Lhe time of application as a credit against the <unts <ecureri by 1 his A-Lortgage.
<br />3. Applieatian of Payments. Un]ess applicable law provides othcrtsise, a!1 payments rcceiveti by Lender
<br />under the vote and parsgraphs I and 2 hereof sha.il be applied by I,endrr first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest l,ayxble on the Aote and on Future Advances, iE
<br />any, and then to the principal of tl,ta Aote and to the principal of future Advances, if any.
<br />4. Charges; Eiens. Borrower shall pay all taxes, assessments and other charges, fines and in.positions attrib-
<br />utable to the Property which may attain a priority over this \Itnt.gsge, and ground rents, if sr.}•, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment., when due, directly to
<br />the payee thereof. Borrower shall prcezpth• furnish to Lender all notices of amounts due under this paragraph,
<br />and in tfte event. Borrower shall make payment- direct[,, Borroticer shall prarnptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any ]ien n•hiclr has prim-ity over this ~Iortgsge; pro-
<br />vided, that Harrower shall not be required ro cfisrharge any such lien so long as Borrower shall agree in writing to
<br />® the payment of the obligation secured by such lien in n manner acceptable to Lender, or shall in good faith contest.
<br />such ]ien by, or defend enforcement of snch lien in, legal proceerimgs which operate to prevent the en#oreemant of
<br />the lien or forfeiture of the Property or any part thereof.
<br />~~+ 5. Harvard Insurance. Borrower shall keep the int~uot-ements now existing ar 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 snch periods as Lender may require; provided, that Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage require' to pac the sums seeured'by
<br />~ this Mortgage.
<br />1\ The insurance carrier providing d:c insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be nnreasonnbiy withheld. Ali premiums on insurance policies shall be paid
<br />at Lender's option in the manner pmvideci wader paragt.•tph 2 hereof or by Borrower making paeroent. when due,
<br />directly to the insurance rsrrer.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to prated
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum shall become
<br />immediately due and payable a~th interest at the rate set forth in said note until paid and shalt be
<br />secured by this tviortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this tVlortaage.
<br />All insurance policies and renewals thereof ,};all be in form acceptable tp Lender trod shall inetude a standard
<br />mortga~ clause in favor of sad in form acceptable to Lender. bender shall have the rigizt to hold the policies and
<br />renewals thereof, and Borrawer shall promptly- furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall gite prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless• Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or
<br />repair of the Property damaged, provided such restoration or reps=r is eeanomicall}• fcssiblc and the security of
<br />this Mortgage is not thereby impaired. If such restorttimi or repair is oat economically feasible or if the security
<br />of this ortgage would be impaired, the insurance proceeds si,a11 he appiieci to the soots secured by this 1ortgage,
<br />with the excess, if any, paid to Borrower: It tL•e P;•opt rty is abandoned b}• Borrower ar it Borrower fails to respond
<br />to Lender within 30 days after notice by ].ender to Borrawer that nc~ insunutca carrier offer to setila x claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at L.ender's option either to
<br />restoratian or repair of the Property or to the suns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree iu writing. any such application of proceedsta principal shall
<br />not extend er postpone the due dais of the monthly installments referrer! to in paragraphs 1 :and `~ hereof or change
<br />the amount of such installments.
<br />If ttatler ltarueruplt 14 hareo[ tlzc Yropert}• i acquire4i b}• Lender, all right, title ar:d itrterest of Harrower in
<br />and to an}- insurance palioies and in and to tha nrnreeris thereat ttc the ext,~nt of the Burns cured L+v° this !Earl-
<br />~a~,e ham@diatcty priCi' is €uCii sale ar ::c'ijtt i-;t loci! f.-~U if lily iratit dJStia{;a" to till a'rapNr'GS' prior La title', r$I@ ar
<br />ucauisitlon shall uas_s to Lend_r-r,
<br />6. Praservaiion rmd Maiateaance of Property; Leaseholds; Condomiadtrms_ Borrawer sh;;.ll keep the Frop-
<br />erty i:r gead relaair and shall oat permit ar commit waste, irnpairrnent. at• deterioration of the Property sad shalt
<br />canply with the provisions of any lease, it this Mortgage s an a leasehold. IC this ~~Iartgage is on a condominium
<br />unit, Borrower shall perform al! of Borrower's obligations under tttc riedtu•ation o! condmuiuimn ar master deed,
<br />the by-Isrvs sad regulations of the condauinimu project and constituent dacuutents-
<br />7. ProteeHon of Lendei s $ecurity. If Borrawer fail, to per£onn the covenants and agreements contained in
<br />this Mortgage, or ii any action ar proceeding is comnteneud which matt:riaily a$ects Lender's interest in the Pral,-
<br />erty, including, but nor, limited to, cntinent cioutain, itsoh•ency, code enforcement, or arrangeruetds ar prveeed-
<br />ings involving a t>ankrupt or decedent, then Lender at Leader's option, upon notice tc Barraaer, may make such
<br />appearances, disburse such Burns and take such action as is necessary to prateet Landers interest, including, but
<br />oat limited to, disbursement of reasonable attortey's tees anti entry upon the Property to make repairs. An}•
<br />amounts dishnrsaci by Lender pursuant to this paragraph 7, with interest thereon, shalt hecwua ndtiitional indobt-
<br />edness of Borrower secured by this )Ioregage. Unless Borrotvr. r and Lcucter agree to other terms of payment, such
<br />atnauntb shall fte ltayahle upon naticc ftou; I.encler to Borrower requesting lraytnenk thereof, anti ,hall hear inter=
<br />est frvm thu date of disbursement at the rate stated in chc lots unless pa}tntent of iniereat at such rste. would be
<br />t:ontrary to applicable late, in which event such amounts shall hear interest at the highest rate pet•misai6le by
<br />applicable lsw. 'Nothing contained in this paragraph 7 shall requirr Lender to incur any expense or des any act
<br />ttereundcr.
<br />5. Ingpaeaon. i,t-n,iar tnst° tasks ar cattsc io i,e made ret~ mtahie entraa upon anti inspections ai tiro Prop-
<br />erty, provatcul that T ender shall givt~ B+jrrewrr notice iuiw• to .+t:y suc•h insitafitietu sptn-ifying rrasonabta ranr~
<br />thorefor related to Lender's interest in the >aroperty.
<br />9. Condemnation, The proceeds of any awartt or claim far elarnages, direct or consequential, in canneetioa
<br />with any condemnation ar other taking of the. Yraperty, or part thereof, ar far cou.•eyance in lieu of condemna-
<br />tion, are hereby sssignad and shall tre paid to I.rnder.
<br />In the evens of a total taking of the Property, the proceeds shall be applied to the sums aerurecl lry this ~fort-
<br />gage, with the exccres, if any, paid to Barrow•er. I.n the event of a partial taking of the Prolu+rky, unless Bormwzr
<br />and Lender otherwise agree in writing, there shall he appiieri to the sums secured by this llartgage sunh pmpor-
<br />lion of the proceeds as is equa{ *o that proportion which the amount of the soots secured by this ~fartgage imtne-
<br />• diately prior to the date of taktng beat's to the fair market value of the Property imttretliately prior to the data of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Aorrower or if after naticc by bender to Borrower that the condemnor ed'ers
<br />to make an award or settle a maim for damages, Borrower fails to respond to Lender w•itl;in 30 days of the date
<br />of such noi.iee, Lender is authorised to collect anef apply the proceeds :tt Lenders option either to restoration m
<br />repair of the Fraporty or to the sums secured bi•-this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />~.
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