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If tinder Iraragraplt 18 hereof the Property is sold as q,l~ia> Prra}:rerty is otheru~i_ae acquired by Lender. Lender
<br />shall apply, na lager than i,rnm[~'sdiately pri~ar to the ;,;tale of t'ht° iararitet•ty ar its ac•yui~~ition by Lender. any Funds
<br />held'ny lender st~ tl?r: thrte of application a a credit against the sta~rias :aarnrc-ri by this ~~Iortgage.
<br />Ir 3. Application aI Paymmnts. Unless applical'tlr. la:v prnt•itl,r~a atl~erwtse. all payments received fay Lender
<br />under the Note and paragra}>]ts i artd'l hetaof shall I~tr: alapl,it~i by l',.endrr first itr pa}=mane of arnourtt5 paayable tv
<br />Lender by Borrawer under paragraph 2 hereof, then fo interest. payable m? the Note and o:: Future Advances, ii
<br />~ any, and 'then to the principal of the Note and co the prh?cipal of Future Acfcances, if any.
<br />~ 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attriFi-
<br />j°J' utable to the Property which rosy attain a priority over this \lari.gage, and Around rents, if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or lay Borrmver making payment, when due, directly to
<br />` the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,
<br />~ and in ti;e event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evi-
<br />deneingsuch payments. Borrawer shalt promptly discharge any lien which has priority over ibis \lortgage; pro-
<br />vided, that Borrower shaP not be required io 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, ar 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 lion ar forfeiture of the Property or any part thereof.
<br />S, Hazard Insurance. Borrower shall keep the improvements now- existing or hereafter erected an the Prop-
<br />erty insured against ]oss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Linder may require sad in such amounts and far such periods as bender may require; provided, Thai 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 iylortgage.
<br />The insurance carrier providing the insurance shell be chosen by Bormw•er subject to approval by Lender;
<br />provided, that such approval shall not be unreo-asonabh withheld. All premiums on insurance policies shall he paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any pulley 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 becom<
<br />immediately due and payable with interest nt the rate set forth iii said note until paid and shall be
<br />secured by this hiorkgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the tet•nas of this Mortgage.
<br />A11 ins,.?rance policies and renewals thereof shall i?c in form accepiabla ro l.aoder and shall include a standard
<br />mortgage+•lause in favor of and in fonu acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Harrower shat} prompti}• furnish to Lt:nder ail renewal notices and all receipts oI paid pre-
<br />miums. In the event of loss, Borrower shalt give prompt notice to the insurance currier and bender, and Lender
<br />may make proof of loss if not made promptly 6y Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds; shall he applied to restoration nr
<br />repair of the Property damaged, provided such restoration or repair is econamiealh• feasible and the security of
<br />this Ninrtgage is not thereby impaired. Ii such restorntion or repair is not economically feasible or if the security
<br />of this lortgage would ba impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. It the Property is abandoned by Burrower or if Borrawer fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier ofrers ro settle a claim for
<br />insurance benefits, 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 sums secured by this \lortgage.
<br />Unless Lender and Burrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone the due date of the tnnnthly installments referred to in paragraphs i and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 78 hereof thr Praperiv is acquired by Lender, all right, title and interest of Borrower in
<br />and to at?v i;., rand I:alia,iars d in ar:rl to t.€ pnxd; thereof its t#tr extrtnt of ttie sums =ecutti•tl by this aiinrt-
<br />gage inrmcriiately pria• to such saia ar ac•quisiticanf resulting from damage to the Property prior to the sale or
<br />acquisition shall }arras to Lender.
<br />C. Freaervatlan rind Maitata~~ce ai Property; I,erarehalde; Cartdatttiniuats. Borrawer shall Ramp the Prap-
<br />erLy is ~, : n r~p..r; .t~ ,. .r,rii na; pe.r.:it or eamr,:i; waste, smpairt??Er,C, ttt' ~i~tt~rEra,:itrii oI the i'r~?periy and anall
<br />cwmply with tl?c pigwiaiart= gf itnv 1?~-qe, it t_hic \Inrts~age ~g ni; a t~~,nV?nl~l. ii f I?i~ 4lnrt~°~ i~ nt. ,, t.,^•ia;;t'n`tr.~
<br />unit, 3lorrowar shall perfmn? alt of Bnrrawer's alsligatians under the declaration of candgtniniutr? or master~d~i.
<br />the by-taws sad regulatinne n€ the condnn?iniuut project. and ronstitaent doeuntents. - -
<br />7. Yratettion of Lends:'a Sectuity. If Borrower (ails to perform the covenants and agreements contained in
<br />Ghis \lortgage, ur if any action ar proceeding is cot?unenc•ed which materially affects Lender's interest in the Prop-
<br />orty, including, but not limited tn, enunent domain, iusalvency, code en[aroentent, ur arnaugcments or proeeutl-
<br />inga invah•ing a bankrupt or decedent, then Lender at i.ander's nptian, upon notice to Borcowar, may make aueh
<br />appearances, disburse such sums and take such action as is necessary to protect hander's interest, including, but
<br />not limiter! to, disbursement of reasonable attorney's lees :urd entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7. wit!? interc>"t ther~un, shall 1>mewue additional indehtc
<br />odnass of Borrower secured by khis \lortgagc. Finless I3orraw°er and Lender agree to other recasts oS Iaayntent, sash
<br />amour?ts shall be payatela upnt? nat:ce from Lender to Burrower regteextirtg }?:ymant thetcnf, attd shall bear iatar-
<br />vet from the date of disbursement at d?c rata statarl iu the Nutt unless pttynteut of interest at such rate would be
<br />eantrary to ap}alicuble law, in which event wurh amotmts shall ktear interest at the hlgheat rate permisaibla by
<br />applicable Iaw~ Nothing captained in tl?u l~ragraltlt f slutli re~~}uin• lender to incur any expat?ss nr do any set
<br />hereunder.
<br />8. irtxpaetian. Lender may make or cause to he made reasonable cutrfea u}wst and' inspertians of the Prttp-
<br />erty, provided that lender shalt giyc Harrower tiatirc pt~ot to any such inslxctiatr ~po~ ifyinf{ re~onahle ,'ease
<br />that~tnr r~iai@cz Lit I.,entt~r ~ 5'[ycercat ,8 tut: i`rf`3perty.
<br />9. Cartdetrtn~tla>3, il~e proceeds of any awarYi ar claim fur daptage~, direct ar tt~tnr_It~ratiai, iu r_«ttnw=titan
<br />with any condemnation or other taking ot` the l'rol>erty, or hart thereat, or tar canvRyanr•« in l1KH gf condr=tttna-
<br />tion are hereby assigned and shall be paid to I~nder.
<br />a.~-the event of a tatat taking of the Property, the procc~sis shat} he al?plies; to the sums seaut'rd by ibis M~rt-
<br />gage, wit;, the excess, if any, paid to Harrower, In the event of a paniai taking of the Piaperty, audsea Borrawer
<br />and Lender atherivise ogres in w•ritinn„ there shall he applied to-the sung securers by thix ~igrt}taga such prgpar-
<br />tion of the proceeds as is equal to ih>kt proportion which the amount ai the sums secured by this afortgagc imms-
<br />' diately prior to the date of taking-bears to the fair market value of the l?eoparty imtrtediately prier to the slats of
<br />taking, with the balanoe of the proceeds paid to Bnrrowar.
<br />If the Property is aban<toned by Borrower or if after notice by Lender to Borrawer that the cnndenmur offers
<br />to make an award ar settle a claim for damages, Borrower fails to respond to lender within 3f1 days of the date
<br />of snub pntiee, Lander is authari;aeLi to en}lse and apt?ly the proceeds at I.aader's aptint? eiti;er to restoration or
<br />repair of ttte Froparty nr to the lama se^ured by this liartgage.
<br />Unless Lender at?d Burrower ntharwiss agree in w'riLing, any aueh application of prncseds to principal si?atl
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