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If under paragraph IS hereof the Property is sold or the Property is othe:;cisc acquired by I:ender, Lender
<br />shall apply, no later tl'ian immediately prior to t6c sates of the Yropcrt}- or its acquisition by Leveler. env Funds
<br />held by Lender at the time of applinatiou as a oredit aesinct the sum, wcurcd by this Aortgage.
<br />3. AppIIcaflon of Payments. Un(eas applirab!e laic ~>rovities othenci=n all payments received by Lender
<br />under the Mote and paragraphs ?and 2 hereof shed be applied I>y Lender first in payment of amounts payable to
<br />Lender by Harrower under paragraph 2 hereof, thmt to interest payable on the Vote and on .Future 9dvancea, if
<br />any, and then to t-he principal of the Veit: and to the princi!~al ai Future -~dt'ances, ii anv-
<br />4. Charges; Liens. Borrower shall pay all t-axes. asse~ments nnrl ofhe:• charges, fines and impaaitians art-rib-
<br />ntable to the Property which may attain a priority over t![is \iortgage, and ground rents, if any, at Lender's
<br />opiion in the manner provided under paragraph 2 }:ereoi or by Borrower making payment, when due, directly to
<br />the payee thereof. Borrower sha!1 promptly fun[ish to L,endar all natives of amounts due under this paragraph,
<br />and in the event. Borrower shall make payment directly, Borr~~«-cr shall promptly iurnish to i:ender receipts evi-
<br />devolve such payments. Borrower shalt promptly disd:srge an7 lien which has priority over this \Iartgsge; pra-
<br />~ vided, lief Berrew•er shall rct be required to discharge an} such lien so long as Borrower shsli agree in writing to
<br />the payment of rise obligation secured by such lie[: i[[ a manner acceptable to Lender, or shall in good faith contest
<br />such lien 6y, or defend enforcement of such Lien in, legal proceedings which operate to prevent the enforcement of
<br />~ the lien ar forfeiture of the Property or any part t!:ereoi.
<br />~ S. ffazerd Insurance. Borrower shah keep tl[e imnracements now existing or hereafter erected on the Prop-
<br />erty insured against lass be fire, hazards included within. the term "extended coverage". and such ether hazards as
<br />Lender may require and in such amounts and far such periods as Lerner mac require: prayitled, that Lender shall
<br />not require that the amount. of such coverage exceed titaT. amount of coverage required to pay rtes sums secured'by
<br />this 3iartgage.
<br />The insurance carrier providing Lhe insurauce shall be chosen lac $orron•er subject to approval by Lender;
<br />provided, i!tat such approval shall not be uureasonabiy withheld. zll premiums on insurance policies shall be paid
<br />at Lender's opiion in the manner provided under parsgrspit '? hereof or h}• Harrower making payment, when due,
<br />directly to the insurance esrrier.
<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 in#eresi 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 Lender, constitute a default
<br />under me Lerrns of tnis ~ion.gaage.
<br />~Il utsurnrce policies and renewals thereof shall he in form acceptable to Lender and shall include a standard
<br />nmrtgage clsase in favor of and in fora acceptable to Lender- Lender si;all have the right to hold the policies and
<br />renewals Thereof, and Harrower shall uromptiy iurnish to Lender all renewal notices and all receipts of paid pre-
<br />miums. In the event of lass, Borrower shall giro protnpe notice to the insurance esrrier and Lander, and Lender
<br />map make proof of loss if not made prompty> iiy Borrower.
<br />Unless Lender and Borrower athervise agree in •,vriting. insurance uroceeds steal? be applied to restoration or
<br />repair of the Prape:•iy damaged. provided such restoration er repair is economically icssible and the security of
<br />this Mortgage is not thereby impaired- Ii suelt restoratiett or reuair is not economicaiic feasible or if the security
<br />of ills Jlortgaga would be impaired, the iasurance proceeds shall he applies. to the sums secured by this ~Sortgage,
<br />wile the excess, if any. paid to Borrower. Ii t?te Yral,erty is ai?andoned hp Borrower ar if Borrower fails to r_spand
<br />to Lender within 3i? days afier notice by Linder to Borrower that the insurance carrier offers To settle a claim for
<br />insurance benefits, Lender is authorised to collect std apuly the insurance proceeds st Lenders opiion either to
<br />restoration or repair of-the Property or to the sums secured by this \iortgage.
<br />Unless Lender and Borrower oiherwiss agree in writing, any such application ai proceeds to principal shall
<br />not attend or posipore the due date of the momt?y installment; refer: ~ to in uaragraphs 1 and 2 boreal or change
<br />the amotstt of such insisllmenf.=.
<br />U tinder parsgrsph i8 hereof the Proper}• is acquired by Lender. ail right, title and interest of Borron•er in
<br />and to any insurance policies and in and to the proceeds thereo*' [ta the extent of the sums secured by this _liort-
<br />gage immediately prior to such sale. or acquisition+ resulting Tram damage to t!:e Propert. !prior to the sale ar
<br />acquisition shall pass to Lender.
<br />fi. F:`eservatioa and Maintaarmce of Property; Leaseholds; Coadominium~. Borrower she:i keea the Prop-
<br />srty in gaud repair and shall rect. permit. or commit waste, impairment. or deterioration of the Property and shall
<br />eatnph vita lire p*acisians of gay lease, ii this \iortgage is on s 3easel[ok?. Ii thi= \Iartgsge is an a condominium
<br />un;~'z, $arrower stall perform all ai Borrower's abligstiana tinder t he :?ee!sration of condominium or master deed,
<br />t.lse by-laws and regulations ai the cor_dominiur.; project anti carstituert documents.
<br />T. Protection of Leader's 3eeurity. If Borronet `ails to periortu the covenants anc' agreements contained in
<br />#hi iortgage, or if any action ar praeseding is cortmeneed which rnaterislic a5eets Lender's interest in ±he Prop-
<br />erty, including, but net lin?itetl Lo, eminent datusin, insolvency, ~•ade enforcen;en[, or arrangements of proceed-
<br />ings invalvirg a banknpt or decedent, i?ten Lender st Lender's option. upon, notice to Barrow-er, may make such
<br />appearanezs, distrurse such sums and take such act==-on as i? neeessan- tc protect Lender's interest, including, teat
<br />not limited Ta; disbursement of reasonable attorney's ices and entry upon tae Property to make repaits.:ivy
<br />arraur:ts disbursed by bender pt:..uaat to this paragt-sph :,with interest thereat.. etali become additiansl indeat-
<br />edtte~ of Borrower secured by ibis \iortgage. lnles_~ Borrower and I:ender agrz< to other terms of payment, such
<br />amounts shall tx payable upon na i~ e tram Lender to Barrow er requesting payment. ttereoi, std shall bear inter-
<br />~ fry the date ai disbutsement at the rate stated u: the \ote unless nsyment of interest st snct rate would be
<br />contrary to applicable laR-, in whie}: event such amounts shall bear interest at the highest. rats permissible by
<br />applicable law. \athing canTainai its this ?[aragraph- snail inquire I_end+:r to incur any expense ar do any act
<br />asader.
<br />& Iaspscticm. I.eni.er : =ar =make ar cause to be made reasansbic trtries upon and inspections of tae Prop-
<br />' ertp, prnrided Ttat Lender shall give Borrow-er Tie; irc~ l.rior to :iin• s,er-i: inspeeti:tn speciiviug reasonable cause
<br />therefor relates W Lender's inteest in tie Property.
<br />9. Coademaatian. The praetlcds of any award or claim far damages, direct or ronaequential, in connection
<br />with srp rz,nd~sr:siirn ar ~`kr taki,_~ . e Ysaperty, Ur part tl:erfof, ar far t°anveyanee in lieu of condemna-
<br />tion, are hereby assigned and stsl3 be paid to Lender.
<br />In the event of s total taking ai the Property, tie procee=is shall be slrnlied to the sums secured by this \iort-
<br />gage, $'!th the excess, ii guy, ;said to Borrew•er. In the event of a partial taking of the Property, unless Borrower
<br />and Lender atherwi~ agree in writing, there shall tin applied to life sums secured by th>>: iortgage such propor-
<br />tiaa of the proceeds as iff equril to That riraportioa avhirh the amount of the sums secured by this ~fartgage imme-
<br />diaielp prier to tie date of taking bears Lc the fair market value of the Proper}' imtnediatsly prier to the date of
<br />tatting, with t~ ttalance of the proceeds paid to Borrower.
<br />if trite t?JOperty is absadoned by Eorrawer or if afier notice by I:ender to Borrower that the condemnor offers
<br />W make sa award or set#Ie s olefin fir damages, Barrow'er iai!s to respond eo Lender within SO days of the date
<br />of stfeh notice, Lender u sutktorised to callert and apply the proceeds at Lender's opiion either to restoration or
<br />repels of the Prapertp or to the sums secured by this =1larfgage.
<br />Unless Lender and Borrower ataenrise agree in writing, any such application of proceeds to principa': shall
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