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Ii tinder paragraph t8 hereoi the 1'r<~aperty is saki +^~rr tEte 1'rop+trt~~~ is cih~rwisir a.r,,R~,t:airetl by Lr~~•n~der; Lender
<br />shall apply, na later than iuar5rediate}y prior to the sale of the Pro}wcrty~ or itE ar~,quisit,',i~on by l,c+nde*.t•. ;iny hund:~
<br />hek} lay bender at the time of appliea~tion as a crediA~~ again„ t, tkzi +rens~ secured b•I• rho - '1~Tartg:tg„c.
<br />3. Application of 'Payrnants. Un}es applicaltlc lays' provides athern•is+t, alt }'aay,m'nants reec^,iv+ee} by Lender
<br />~d under the Note and paragraphs 1 and 2 hereof shalt iSc applied by I'~encier first in payment of amounts }syable to
<br />~, Lender by Borrower under paragraph 2 hereoi, thou to interest payal;le on the Nate nn?i an Future ~.'vances, if
<br />{~ any, and then to the principal of the Note and to the principal of Future :~duances, if any-
<br />4. Charges; Liens. Harrower shall pay aJl taxes, assessments and athe:• charge>, fines and impositions attrib-
<br />Q arable to the Property which may attain a priority over this Mortgage, and ground rears, if any; at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, directly to
<br />t the payee thereof. Borrower shall promptly furnish t.o bender all notices of amounts due under this paragraph,
<br />~ and in the event Borrower s}raH make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />t~- denting such payanents. $orrower shall promptly discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to
<br />the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />such lien lay, or defend enforcement of such hen in, legs! proceedings which operate; to prevent t-he enforcement of
<br />the }tea or forfeiture of the Yropert.y or any part thereof.
<br />S. Hazard Insurance. Borrower shalt keep the improvements now existing or hereafter erected on the Prop-
<br />crty iesured against loss by fire, hazards inchided tvitit}n the term "extended coverage", and such outer hazards as
<br />Lender may require and in such amounts and for such periods as Lender utuy require: provided, that Lender shall
<br />r not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured'by
<br />this :Mortgage.
<br />The insurance rtrrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably wii.hhald. Al! premiums on insurance policies shall be braid
<br />at Lender's option in the: manner provided carder paragraph 2 }tereof or by Borrower making payment, when due,
<br />directly to the insut.znce carrier.
<br />In the event any policy is not renewed on or 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 ;}ue and payable with interest at the rate set forth tit said note until paid and shall be
<br />secured by this :Mortgage. Failure by Borrower to zomph• may, at option of Lender, constitute a default
<br />under the temts of this h4ortgage.
<br />All insurance policies and renecvaks thereat shall be in form accepuable to Lender and shall include a standard
<br />mortgage clause in favor of and in form ucceptshie to Lender. Lender shalt have the right to hold the palioies and
<br />renewals thereof, and Borrower shall prompih- tarnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of Eoss, Borrower shall glee prompt notice to the insurance carrier and Lender, and Leader
<br />may make proof of loss if not made promptly by° Borrower.
<br />Unless Lander and Borrower uthertcise agree in writing, insurance proceeds shall be applied to restoration. or
<br />repair of the Property damaged, provided such restoration or repair is economically feasible and the sect[rity of
<br />t}tis i~iortgage is not thereby impaired. Ii sac}: restoration or repair is sat ecanomiealh feasible ar if the strcnrity
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by- this Ivlortgage.
<br />with the excess, if any, paid to Borrower.7t the Property is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within 3V days after notice by Lender to Bon~ower that the insurance carrier offers to settle a china far
<br />insurance benefits, Lender is authorized to collect. and apply the insurance proceeds at Lender's ogtion either to
<br />restoration or repair of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly instalhneats referred to in paragraphs }and 2 hereof or change
<br />the anacunt of suet; insialimant.
<br />If under paragraph I3 ltereaf t}te Property is acquired 6y Lander, all right, titlf and itttetest of Borrowar in
<br />and to any insurance pahcies and in and to t'tte proceeds thereof Ito the extent of the suns secured by this ~"lart-
<br />gage immediately prior to such sale or acquisition} resulting frmn t}suta};e to the Irro}~ety }trior to s_.'ha die ar
<br />satluisition shalt pass to Lerxier~
<br />S.:z2serza'sion and iMairxtrsrsanca of Prag®riy; Loresehoida: Condarniurtttns» liarraa•er alts}l keep thep Prep.
<br />r±tty in good tt!pair a!?d shall nor permit car eontmit wastr±, irnpairntent, tar ,l~.t.,r•;prat-l.at: of the Aralur+:' a@;#: shat.
<br />camp}y whh t}te provisiar ~ of any }ease, if this Mortgage is un a Cessehald. If tlti+ Atort~age is an- a eosxlgtuini~s~
<br />-unit, Borrawer shalt }aerfarna alt ai Borrowcc's abligatians rux}er the: deelai• lion taf condominium or master Bleed,
<br />the by-taws and regulations of the condominium lrroject and constituent doctunenf-:.
<br />7. Protection of Lendei s Security, if Borrower fails to perform the cuvensttts awl agreements contained in
<br />this \lortgage, or if any action or proceec}ing is conunenced which m;tterialh• affects Lender's interest. in the Prola-
<br />erty, including, t?ut nut limitcc} to, eminent +aontaiu, iuwh•eney. code enfarcerucru, ar arrangements or proaeed-
<br />iags involving ubankrupt- ar decadent, then Lender at }.ender', option, upon notice to Borrawer, may slake sualt
<br />appearances, disburse such scans and take such action as is ncc•esary to protect Lender's interest, including, but
<br />not liaaiced to, disbursement of reasonable attantey's fees :tnc} entry a}ion the Property to make repairs. :any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thare~tn, shalt hecauta additiattt.Itndebt-
<br />ecine,.s of Borrawer secured by this ~iorigagc. Unless Ilorrower and Lender sgreo tot other units of paytttent" such
<br />amounts shall hey payable upgn notice frotu Lender to Borrawer requesking payment thereof, and shall heat inter-
<br />est from the date of disbursentent.at the rate stated in the Not-e unless psyntent, of interest at such rate would 6e
<br />contrary to applicaktla Isw, iu which event such muounts shall bear interest st thu highest rata genniss~ib}e by
<br />applit:able taw. Nothing catttained in tfris 1>aragra}ah ; siutll rcryucre i.cncier tea incur any ex}aanse or do any set
<br />hataundar.
<br />6» Inrpactian. Lender mar utakc ar ranse to he made rest+anabte entries upon aad'}ns}aeetians of the Prag-
<br />ert-y, pri,ytile`.-it ihitt I,e17ttE'r ~hatt gaffe 13'arr(aw tEr nEriiPt' rtriar to `tf ~` ttiti in~p2Pf itifl Rlii`0tfi'in~, r~a~otIahtc' t'auBC?
<br />thsrefar reIatecl to Lender:? internrct. in the Property,
<br />9. Condornnat%on. The proceeds of any award ar c}aim s'or damages, direct ar cansequetttial, in eatutection
<br />with any condemnation or other taking of the Pro}arty'. ar part Ntrrea~i, or for cwnvayanec itt Nett of c~ndemna-
<br />taon, are hereby assigned and shall he paid to Lender.
<br />I}t the event of a total taking of the Property, the proceeds shall ltc applied to t-he sums securod tn• this ;vlort-
<br />-gage, with the exravs, it any, paid to Borrower, In the event of a partial taking of the Pmperty, unless Idormwer
<br />and I.etader otherwise agree in writing, There sha}} he applicki to the sums secured by this \lat•tgaga such propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the sums secured by this i\tortgage imme-
<br />' diaiely prior to the date of taking beaus to the fair market value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower,
<br />If the Property is sbancioned by Borrowar ar if :titer notice by Lender to Borrower that the condemnor offers
<br />to make art sward or settle s claim for ctatuages, Borrower fails to respond to Lender within 3ti days of the date
<br />oaf such native, Lender is authorized to co}}cct and spp}y the proceede at T,ender'a o}anon either to restoration or
<br />repair of the Property or to the sumo seeurFCt by this ~Iartgage.
<br />Uet}ass Lender' and Borrawer othern'isa agree in writing, any suolt application of •.roceeds to priucipa! shill
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