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If a.trder pa~rtml,;raplt 38 hereof the Property is sold ot• the Property is ather~ri3e~ acrluireil by Lender. bender
<br />:; h:a,ll ,t~plsly, ;ao letter than immediately prior to the sale of the Property cr its act~tulisition by Lender.:usy Femds
<br />held b, ' c ;der at tlxe t;icne. of application a., a credit against the Sutus ~erun~d tn• thts S-iortgage.
<br />3. Applicat,iart of Payments. Iintess a,)plirablc law provides otherut e, all psytxtent,s received by I,encier
<br />.a~t~der the i'~o~tr .mti Irtragralahs 1 and 2 hereof sltai} be al;rpiied t>y Lendet first.. in pa~~ymenC of antoants payable to
<br />Lender by= 13orroc•er under naragrap!t 2 hereof, then to interest payable on the Note and on Future Advances, if
<br />any. and then to the principal of Cite foie and to the principal of Future Advances, if anv.
<br />Q. Charges: Liens. Borrower shall pay- all taxes, assessments and other charges, fines and impo_citions attrib-
<br />utable to the Property which may attai^ a priority over this \4ortgage, and ground rents, if any, at Lender's
<br />option in the manner provided undet• paragraph 2 hereof or fay Borrower making payment, when due, direeth• to
<br />the payee iherecf. Borrow°er shall promptly furnish to Lender all notices of amounts due tinder this paragrap}t,
<br />,~ and in the Brent Borrower shall make payment directly, Borrotver s}tall prompth• furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; prc-
<br />~ vided, that Bnrrou•er shall not be required to discharge any such lien so long as Borrower shalt agree in writing to
<br />the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings witieh operate to prevent the enforcement of
<br />the lien or forfeiture of the Property or an}• part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prop-
<br />01 erty insured against loss by fire. hazards included within the term "extended coverage", and such outer hazards as
<br />~ bender may require sod in such amounts and for such periods as Lender may tequire; provided, that Lender sha31
<br />not require that the amount of such coverage exceed that. amount of coverage required to pay the sums secured'by
<br />this l•4ortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not. be unreasonably withheld. All premiums nn insurance policies shat! be 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 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 be~nme
<br />immediately 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 Lender, constitute a default
<br />tinder the terms of this Mortgage.
<br />.411 insurance policies and renewals thereof shall be in form acceptable to Lender and shall incittde a standard
<br />mn,~gage clause in favor of sad in form aeceptab}e to Lender. Lender site}i have the right to hold the po}ides and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts o€ paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />tray make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower of}terwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Propert}• damaged, provided such restoration or repair is e,onomically feasible and the security of
<br />this 4ortgage is not thereby impaired. If such restoration or repair is not economieaily feasible or }f the security
<br />of this Mortgage would be impaired, thesnsurance proceeds shall be applied to the sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Yroperty is abandoned by Borrower nr 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 Lender'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, anv such application of proceeds to principal shall
<br />noL extend or postpone the due date oT the monthly installments referred to in paragraphs 1 and 2 hereof or change
<br />the amount of such installments.
<br />if under paragraph 18 hereof the Yroperty is acquired by Lender, all right, title and interest of $orrowcr in
<br />and to any insurance policies and in and to the proceeds thereof Ito the extent of the sums secured by phis Mort-
<br />gage immediately prim•to such sale or acquisition) resulting froth darmtge to the Yroperty prior to the sale or
<br />acquisitiau shall pass to Lender.
<br />8. Pct=3e~ra~ian ~d IL`~sta~sanee at Pra~rty; Lettsehalds; Caztdaminiutzts. Isarrnwer shall keep the Prop-
<br />erty in good repztir and shall not uerntit or commit tvnste, impairment, or deterieratint: of the PrcperLv and shall
<br />comply with the provisions of any lease, ii this Mortgage is oa a leasehold. If this ~Iottg~ge is on a condominium
<br />uuit, Borrower shall perfortu a!1 of Borrower's obligations under the decisration of condominium or master deed,
<br />the by-laws and regulations of the condominium laroject and constituent documents.
<br />7. Prateetion o€ Lender's Security. If Borrower fails to })erfortn the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Prop-
<br />- erty, including, },tut. oat iitnited to, eminent domain, insolvency, code onforcemem, or arrangements or Proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upmt notice to Borrower, may make such
<br />appearances, disburse such sums and take such uctiou as is necessary to protect Lender's interest., including, but
<br />-not limited to, disbursement of reasonai~le attorney's fee; and entry upon the Yroperty to make repairs. Any
<br />amounts disbursed by Lender put*uant to this paragraph r, with interest thereon, shall become additional indebt-
<br />edttess cf Borrower secured by this \4art.gage. Unless Borrower and Lender agree to other Lernts of payment, such
<br />amounts shall be payable upon notice Crom Lender to Borrotver requesting payment thereof, and shall bear inter-
<br />est from the date of disbursement. at the rate stated in the Nate unless payment of interest at such rata wotald be
<br />cotttrary to applicable law, ut which e-vent such amounts shall bear interest at the highest rate permissible by
<br />applicable law. Nothing contaiued in this paragraph i shall) require Lender to incur any expense or do any act
<br />hereunder.
<br />8. Inspection. bender may make or cause to he made reasonable entries upon and inspections of the Prop-
<br />---- erty, provided that Lender shall give Borrotver notice lutes to any sorb inspection specifying reasonable cause
<br />therefor related to Lender`s interest in the Prnpeety.
<br />9. Candemnatioa. The proceeds o£ any award or claim for damages, direct ar consequential, in connection
<br />with any condenmat}nn or other taking of the Property, ot• part thereof, or for conveyance in lieu of condemn-
<br />-lion, axe hereby assigned and shall be paid to Lender.
<br />In the event of ~ total taking of the Yroperty, thz proeeecls shall he applied to the sums secured by this ~4ort-
<br />_; gage, with the excess, if any, Paid to $orrou•er. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otlasrwise agree in writing, there shall be applied to .the sums secured by this Mortgage such Propor-
<br />• -lion of the proceeds as is equal to th•.t proportion which the amount of the sums secured by this \4ortgage imme-
<br />diately prior to the date of taking beans to the fair ntsrket value of the Yroperty immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrotver.
<br />if the Property is abandoned by Borrower or if alter notice by Lender to Borrower that the condemnor offers
<br />to make an award or settle n claim €or damagos, Borrower fails to respond to Lender within 3Q days of the date
<br />of such notice, Lender is authorized to coilnct anti apply the proceeds nt Lender's option either to restnrntiori or
<br />repair of the Property or to the sums saettreti 6y this Mortgage.
<br />Unless Lender and $orrower otherwise, egret: in writing., any such application of Proceeds to prmctpal shal}
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