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If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediatelyy prior to Lhe sale of the Propert}• ar its acquisition by Lender, any Funds
<br />held by Leader at the time of application as a credit against, the sums secured h}• this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments rerciverl by Lender
<br />under the !'ore and paragraphs I and 2 hnreoi shall be applied by Lender first in payment al amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, tdten to interest. payable on the Vote and on Future Advances, if
<br />any, acrd then to the principal of the Note and to the principal o? Future Advances, if any.
<br />4. Charges; Liens. $orrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priority over ±bis Mortgage, and growtd rrnts, if any, at Lender's
<br />optSon in the manner provided under paragraph 2 hereof or by Borrmver making payment; when due, directly to
<br />~ the pspee thereof. Harrower shall prmnptl_v furnish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evi-
<br />dancing such payments. Borrower shat! prwnptly discharge any lien which has priority over this Mortgage; pro-
<br />vided, that Borrower shalt not be required to discharge any such lien so long as Borrower shall agree in tvrrting to
<br />~ the payment of the obligatior. secured by such )fen in ;t manner acceptable to Lender; or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings whicf~ operate to prevent the enforcement of
<br />~' the lien or forfeiture of the Property or any part thereat.
<br />~ 5. Hurd Irrstrranee. Borrower _c}tall keep the improvements now existing ar hereafter erected on the Prop-
<br />eri}• insured against Ioss by fire, hazards include.9 within the term "extended coverage", and such other hazards as
<br />Lender may require and in such amounts and for such periods as Lender may require; provided, that 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 Mortgage.
<br />The insurance cairrier providing the insurance shall be chosen b}• Borrower subject. io approval by Lender;
<br />provided, that such approval shall not be unreasonably «~ithheId. Ail premiums on insurance policies shall be paid
<br />at bender's option in the manner provided under paragraph ° hereof or b}- Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any poucy 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 sha;l become
<br />imma3iately due and payable with interest at the rate set forth in said note until paid and shall be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lander, constitute a default.
<br />trader the terms of this Aiortgage.
<br />A=tl i ,.. ~•,I•siss.:nd ,b ,.91s the..., _ -I?'.-~ opt°l;l° a I.r^d° °d shall °t..ao - °dard
<br />mortgage clause in favor of snd in form acceptable to i.endetT~•l.ender shall 4hsve chef right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish m Lender all renewal notices and all receipts of paid pre-
<br />mitmrs. In the event of loss, Borrower shall give l:rompt notice to tire. insurance carrier and Lender, and Le,~der
<br />tnap make proof of loss if not made promoth• by Borrower.
<br />Urless Lender snd Borrower athezwise agree in writing, insursuce proceeds shall be sppfied to restoration or
<br />repair of the Prop>riy ciamsged. provided such restoration or repair i~ economically feasible and the security of
<br />this d3ortgage is net thereby impaired. If such restoration or repair is not economically feasible or if the security
<br />of this Mortgage would be impaired, the insuranae poeeeds shall l,c applied to the sums secured by this ;4iortgsae,
<br />with the excess, if any, paid to Borrower. If the Propem• is al:sndoned by Borro«•er 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 antbari_ed to collect snd sppl}• the insurance proceeds st Lender's option either to
<br />restoration or repair of the Property or to the sums secured b}- this \iortgage.
<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 tnonthl}• installments referred to in paragraphs 1 snd 3 hereof or change
<br />the ttmotmt of such installments.
<br />If under paragraph 1$ hereaY the Property is acquired by I,ende-, all right, title and interest of $orrower in
<br />and w any insurance policies and in and to the proceeds thereof tto thr extent of the sums secured by this 1iort:
<br />gage immediately prior to such sale nr acgt,.sition, resulting from damage to the Property prior to the sale or
<br />acgniaition shall pass to Zander.
<br />6 Pteaervafraa oxed Maiaienonce of Property; Leaseholds; Candor.*++»»++= Borrowe. shall keep the Prop-
<br />erty is good repair and shall not permit ar commit waste, impainvent, or deterioration of the Property and shall
<br />imply with the provisions of any lease, ii this 3lortgage is on s leasehold. If This Mortgage iy on a condominium
<br />unit, Borrower shall perform all of Borrower's nbligstions under t}ae decisration ai condominium or master deed,
<br />the by-lam and rag-ulatians ai the eandamiaium l;rojeet snd c~ansiituent documents.
<br />3. Pmteeti~ of Lender's Seearity. Zf Borrower fsi'•s to perform the covennnis and agreements contained in
<br />this Mortgage, or if any eerier, ar proceeding is commenced =.vhich materially affects Lender's interest in the Prop-
<br />erty, including, but not limited ta, eminent domain, insolvent}-, cede eniorcemetrt, or arrangements or proceed-
<br />ings involving a bankrupt or decedeni, then Lender at Lender': option, upon notice to Borrower, may make such
<br />appearances, disburse such sum; and take such action ss is necessar}• to protect Lender's interest, including, but
<br />net limited to, disbursemeni of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amotm#a disbursed by Ixndes pursuant to this paragraph ', with interest thereon, shall become additional indebt-
<br />edness of $arrawer seetu•~ by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting usyment thereof, and shall bear inter-
<br />~ f.-om the date of disbursement at the rata stated ir, the Vote unless payment of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest ai the highest rate permissible by
<br />applieadole law. Nothing contained rn this paragraph' shall require Lender to incur any expense or do any act
<br />hereunder.
<br />$- foapsctian. Lender may make or carve to he made reaspnshlc entries upon and inspections of the Prop-
<br />erty, provided that Lender anall give Borrower notice prior to nnc suet, inspection specifying reasonable cause
<br />therefor related to Lender's interest in rho Property.
<br />5. ~. The proceeds of any sward or claim for damages, direct or consequential, in conneotion
<br />with a~ aoattemnatipn or other taking of the Property, or hart thereof, or for conveyance in lieu of condemna-
<br />taon, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall I,e applies to the sums secured by this Mori-
<br />-gage, math Lhe exeeas, if any, paid to Harrower. Zn the even[ of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agrn: in writing, there shall be applied io the sums secured lay this \iortgage such propar-
<br />tittn of the proceeds as is equal to that proportion which the amount of the sums secured by this 1lortgage imme-
<br />drat+.ly Prr['r to the date of taking bears. to the fair market value of the Proporty imtediately prior to the date of
<br />taking,w~b Lhebal of tk« p3aceeds paid io Burrower.
<br />It tF~Pmpertyis abandoned by Harrower or if after notice by bender to Borrower that the condemnor offers
<br />W make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days of the date
<br />of atrch notice, Lender is authorized tp col!e•M. azxi apply the protec-ds tit I.ender'e option either to restoration ar
<br />repair of the Property or to the sums secured by ties Mortgage.
<br />Unless Lender and Borrower pthercwise agree in writing, any such application of proceeds to principal shall
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