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Lf -Bader laragraph i8 i•ereof 'l~re~ 1'mar ctty i~~a ~,•o r;a >tee 'F~rrTser~. ;_ o•.:~rw;~~s a~,~grrired by f.~er.der. i.ender
<br />shrall apply, no later than itnmcdia'€,;;la lrrior to tl.u Male ~,r ti ~ Yro)x•rt}• rt tr 3r~~giri: ition lrv i,~eruaer, any Funds
<br />',ehl by L~:nder at the tn::e of u} plirat~iocu ...:. [-'.r<~,,E ~;[,::,inst t :e s~as:~at °cuprd F r l¢is Si]:c'sri',I;a;;r.
<br />3. App&cation of Payments. U~nlcr t}-;vl~i+..a•,l~e 6,~ua~ 1'sro otter, o ncrnv-is.e, all ~y>aytna,nt~,; rcccs:-ed by Lender
<br />under the ~~ote and fiaragrspl'ss 7 anc12 hrria 'hail the :zh~plied tloryr l.er der PBrst itt 1>ayn'wer,} trf .attu~cutstat~s payable to
<br />Lender P;y Borrower tinder paragraph, `2 V,ereof, then to lntcrest }rayahle ors flirt '_WOte an,V eta I'ut'k,ur~'~~~r Ad,var:ees, Sf
<br />any, anti then to the principal of the \otc and to thc• principal of Future Advances, if ary.
<br />4. Charges; Lietta. Borrower shall pay all taxes, assessments and other charges, fines and impositians attrib-
<br />utable to the Property which may attain a priority over this Mortgage, and ground rents, ii anv, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment; when d-ue, directly to
<br />the payee thereof. Borrower shall promptly furnish to bender all notices of amounts due render this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge anv lien which has priority over this Zortgage; pro-
<br />vided, that Borrower shall not. be required to discharge any such lien so long as Borrower shalt agree ir, writing to
<br />the payment of the obligation secured by such iie~n in a manner acceptable to Lender, or shall in good faith contest
<br />: such 1,er, hy, 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 part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now• existing or hereof±er erected on the Prop-
<br />' ! erty insured against. loss by fire; hazards included w•ithi:: the term "extended coverage", nod such other hazards as
<br />~f Lender may require and in such amounts and for such periods as Lender may require: provided. that Lender shall
<br />A nat. require that the amount of such coverage ekcced that amount of coverage required to pay the sums secured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurance shsll be chosen uy Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. all premiums on insurance policies shall be paid
<br />at Lender's option in the manger providedi under psragraph 2 hereof or 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 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 he
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />Ail insurance policies and renewals thereof small be in form acceptable to Lender and shall inchtde a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall hate 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 />°imiums. Tn the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />inay make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise 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 security of
<br />this Mortgage is not thereby irrspaired. If such restoration or repair is not economically feasible or if the security
<br />of this \Sortgage would be impaired, the insurance proceeds shall be applied ':~ the sums secured by this 1l4ortgage,
<br />with the excess, if any, paid to Borrower. It" the Property is abandoned by Borrower or if Borrower fails to respond
<br />to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Fender's option 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 oi• postpone the due date of the monthly installments referred to in paragrap}ts 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of $orrower in
<br />,had to any iusuranee policies and in and to the proceeds thereof t,to the. extent of the sums secured by this ~~Sor%-
<br />gage imrnedi;aiely prior to such sale or acquisition) resulting from damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />S. Preservation Ord I~Iaintaaance of Property; Leaseholds; Condominiums, Barrower shall keep the Pron-
<br />arty in goad repair and shall nut permit or commit waste, impairment, or cieterioratian of the Property and shall
<br />comply with the pravis o is of any lease, if this liurtgagt is an a leaselrald. If this A`Iartgage is on s condaminiurn
<br />~ tn3it, Barrower shall perform all of Barrotver's abiigatiatts under the dec:lnrattan ai eandominiurn or master deed,
<br />the by-laws and regulation; of 'the condominium project and censtitaeni. documents.
<br />7. Protection at Lender's Security. It Borrower tails to perform the covenants and agreements contained in
<br />this ~Sortgage, ar if any action or proceeding is commenced which materially affects Lender's interest. in the Prop-
<br />erty, including, but not ]imited to, eminent dom tin, insoh•ene}•, code enforcement, or arrangements or proceed-
<br />ings involving a hankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such Burns and take such actimr as is necessary to prated Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to Phis paragraph 7, with interest. thereon, shall become additional indebt-
<br />edness of Borrower secured by this ~Sortgage. Unless Borrower earl Lender agree to other ternts of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est tram the date of disbursement at the rate stated in the A'ote unless p:tyntent. of interest at suoh rate would be
<br />contrary t.o applicsble law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. \othing contained in this psragraph i shaft require Lender to incur any expense or do any act
<br />hereunder.
<br />&. Inspection. Lender may u,akc ar cause to hr nutclc reasonable entries upon and inspections of the Prop-
<br />erty-, prtevidctl tl,a,t Le,}cler shall give Borrau'er notice- Irrior to at»- such inspection stieiifying reasonable ee~rse
<br />therefor rein"fed to L ender's interest. in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condentnatior. or other taking of the Property, or part Ehereaf, or far conveyance in lien of conc}emnn-
<br />lion, are hereby assigned and shall be paid to Lender.
<br />It, the event of a fatal taking of the Property, ttte proceeds shall be applied to tt,e sums secured by this Mart-
<br />_ _ _ gage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall he applied to the sums secured by this Mortgage suoh prapor-
<br />tion of the proceeds as is equal to that proportion which the amount of the sums secured by this Aiartgage imme-
<br />' diatel}• prior to the date of taking bears to the lair market value of the Property immediately prior to the dale of
<br />taking, with the balance of the proceeds ,,aid to Barrower.
<br />If the Property is absndoned by Barrower or if after notice b_r• Lender to Borrower that the condemnor offers
<br />to make ar award or settle a claim for cimnages, Borrower fails to respond to Fender within 30 days of the date
<br />of such notice, Lender is authorized to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of Ghe Property or to the sums secured by this \iartgage.
<br />Unless Lender and $orrower othervise agree in writing, any such application of proceeds to principal shall
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