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If under paragraph 18 hereof the Propert.v is said or the Yroperty is otherwise acquired by Lender, Lender
<br />shall apply, na later then immediately prior to the soh: of the Property or its acquisition il}• Lender, ary Funds
<br />held by Lender at the Time of application as a credit. against the stuns secured b}. this 1Sortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender
<br />under the Nate snd paragraphs I and 2 hereof shall he applied he Lender first in nay-meat of .uuounts payable to
<br />Lender ley Borrower under lsragraph 2 hereof, then to interest payable on the tote and or, Future Advances, if
<br />any, and then to the princilal of the Note and to the principal of Future Advances, iI any.
<br />4. Charges; Liens, Borrower shell psc all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to the Property which may attain a priorit}• over this tilortgage, anti ground rents. if any, at Lender's
<br />option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due, direeth' to
<br />the payee thereof. Borrower shalt promptly 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 />riq dencing such payments. Borrower shall promptly discharge any lien which has priority over this ,`Mortgage; pro-
<br />{~ vided, that Borrower shslI 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 s manner acceptable to Lender, or shall in good faith contest
<br />~ such lien by, or defend enforcement ot• such lien in, legal proceedings which operate to prevent the en#oreement of
<br />v the Iien or £or#eiture of the Property or any part +, hereof.
<br />5. 1•lazard insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />erty insured against loss by fizo, hazards included within the term "extended coverage", and such other hazards as
<br />ax Lender may require and in such amowtts snd for such periods as Lender may require; provided, That Lender shall
<br />t\ not require that the amount of such ecverage exceed that amount of coverage required to pay the sums secured'by
<br />this i4loatgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that suen approval shall not be wtreasonabh- withheld.:111 premiums on insurance policies shall be paid
<br />at bender's option in the marnet provided under paragraph 2 hereot or by Borrower making payment, when due,
<br />directly to the instxranee 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 or. 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 be
<br />secured by ibis 3fortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />Ali insurance policies and renewals tllereoi shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall itsve the right io hold the policies and
<br />renewals thereof, and Borroae+• shell promptly furnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of loss: Borrower shall give prompt noi.ice to the insurance carrier and Lender, and Lender
<br />may make proof of loss ii not. made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, IRSllranCC prOCeed3 shall be applied to restoration or
<br />repair of the Properly damaged, provided such restoration or repair is ecanamieslly feasible and the security of
<br />this Mortgage is not thereby impaired. Ii such ter-location or repair is not econolnicsliy feasible or if the security
<br />of this Aiortgage wcukl be impaired, *_he insurance proceeds shalt be appliedta the sums secured 'uy this Aiartgage,
<br />vital the excess, if any, paid to Borrower. If the Yroperty is abandoned by Borrower or if $orrower fails to respond
<br />to Lender within 30 days afar notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lander is authorized tcl collect and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property er to the stems secured by relic Mortgage.
<br />Unless Lender snd Borrower otherwise spree in writing, anc such application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereot or change
<br />the amount of such installments.
<br />If tinder paragraph I8 hereof the Pmpert}• is acquired by Lender, all right, title and interest of Harrower in
<br />cud to any insurance policies snd in and to the proceeds Thereof 1 to the extent of the sums secured by this Iliort-
<br />gage immediately prior to such sale or acaui.:itioni resulting iron datnage to the Property prior to the sale or
<br />acqui~tion shall pass to Lender.
<br />6. Praservatiaa and i~ia>8ten¢see of Property: Leaseholdst Condasninitsans. Harrower shall keep the Prop-
<br />erty in good repair and shsit not permit or commit waste, impairment, or deterioration of the Yroperty and shall
<br />comply with the provisions of any lease, ii this \iortgage is on a leasehold. If This Mortgage is an s condominium
<br />trait, Borrower shalt pesfonn alt of Borrower's obligations under the dcclaraiion of condominium or master decd,
<br />the by-laws and reguls#ions of the condominium protect and ranstiive;lt documents.
<br />?. cd Lsaader's Sectuitg. Ii Borrower fetes to pariarnt the eavenants and agreements contained in
<br />this Mortgage, oz if any action ar proceeding is commenced whic:r materially affects Lender's interest in the Prop-
<br />erty, including, trot not limited to, eminent domain. insoivem~y, cede enforcement, or arrangements or proceed-
<br />iaga involving a LanL-rupt or decedent, then Lender st Lender'; option. upon notice to Borrower, may make such
<br />sPpmsances, disburse such sums and lake such acUOn as is neeesssn• to protect bender s interest, including, but
<br />not limited ta, disbtusement of reasonable sttomey's ie~ and cntn• upon the Property to make repairs. Any
<br />saaosutts disbursed 6v Lender pttrsttant to this paragraph : , with interest thereon, shall become additional indebt-
<br />eda~a of Bormcaez secured by this liortgage. Unless Borrower and Lender agree to other terms of payment., such
<br />ra~unta shall ~ payable upon notice Imru Lender w Borrower requesting payment thereof, and shall bear inter-
<br />act tram the date of disbttrsemeat at the rate stated i*I the tote unless payment of interet at sash rate would be
<br />matraty to applicable law, in which event sac"p. amounts shall beer interest st the highest rate permissible by
<br />appliesbk law.;iothing container! in this paragraph ;shalt requim Lender to incur any expense or do any act
<br />heresxtx{er.
<br />8. inspwetiaa. Lender may make or cause to ]re made reasonable entries upon and inspections of the Prop-
<br />erty, provided That Lender shall giro $orrower notice I+rsor to arc sorb inspection specifying reasonable cause
<br />tsar 3e3atad #o Lender's intes~i in the Pmpett.,-.
<br />9. Can;- 't'he proc~ds of any an~ard or elaint tar damages, direct or consequential, in connection
<br />such any condemnation ar otdser taking of the Property, or ]tart thereof, or far canveysnce in lieu of eondemna-
<br />-Baas, axe hexehy assigned and shall be paid to Lender.
<br />Ixttlseevent of a total taking of the Pra~r.':y, Lhe praczeds si;all Ik applied to the sums -secured by this mart-
<br />gage, 4he ereeas, it any, paid to Borrower. In the event of a uartial taking of the Yroperty, unless Borrower
<br />snd Ledder ~ egree in writing, theie Fhall be applied to Ilse earns secured by this :ilorigage such propor-
<br />tion of-the proceeds as is equal to that pzopa^tixm which the amount of the sums secured lty this :Mortgage imme-
<br />diatelS prior to Else date of taking fiesta #o the Lair market value of the Property immediately prior to the date of
<br />tatting, with #~ balansx of the groaeeds paid to Borrower.
<br />~ the Pi+nperty is ahsrsdoned sly Borrower ar if aftes notice Ity Lender to $orrower That the condemnor offers
<br />to nsake an swarii or settle a claim for damages, Bormtser fails to respond to lender within 30 days of the date
<br />of such ntstice, Lender is autdtoxised to collect and apply the. proceeds at Lender; option either to restoration or
<br />repair of the Property or to the sums sectu^eeI b}• this liortgage.
<br />Unless Lender and Borrower oimerteise agrce in writing, any such application of proceeds to principal shall
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