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If under paragraph IS hereof the Property is snld ar she Propert:• is cthenvise acquired be Tender, Lender
<br />shah apply, no later bran immediately prior fo xhe sate of the Property cr its acquisiticn by Lender. nm• Funris
<br />held by Lender at the time of application as a credit againax rice -urn. ~eeure~! !rv ihic 1lorigage. -
<br />3• Application of Payments. unless applicable lain pro. ides othervise, alt payments received by Lender
<br />under the Vote and paragraphs I and 2 hereof sltnit he, applied by Tender first Sn payment eI amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to intere~~ payable on the Vote and on Future ~rlvances, if
<br />any, and then to the principal ci the Vote and to the principal of Future .ldvances, if anp.
<br />d. Glaarges; Liens. $orrower shall pay all taxes, assessments and other charges, fines and impositions attrib-
<br />utable to Lhe Property which tray attain a prioritc over this lfertgage. and ground rents, if any, aL Lender's
<br />C"~ optian in the manner provided under ]raragraph 2 hereof or by Borrower making ]rayment, :vhen due. directly to
<br />the payee thereof. Borrower shall promptly furnish to Lender all notices of anrounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borroccer shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower sha(1 promlaly discharge any lien which has priority over This Mortgage; pro-
<br />vided, that Borrower shall not be required to discharge an}• such lien so long as Borrower shall agree in 5vriting to
<br />the payment c` `he obligation secured by such lien in n manner acceptable to Lender, or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings a hick operate to prevent the enforcement. of
<br />Q the Lien or forfeiture of Lhe Property or any part thereof.
<br />m 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereatter erected on the Prop-
<br />erty insured against Loss by fire, hazards included within i,he term `'extended coverage", and such other hazards as
<br />Lender may require and in such amounts anci for arch periods as Tender may require; provided, that Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage required to par- the sums secured"by
<br />this 1lortgage.
<br />The insurance carrier providing tiro insurance ;hall be chosen b}~ Borrower subject to approval b}' Lender;
<br />provided, that such approval shall not be unreasonably withheld. _111 premiums on insurance policies shalt be paid
<br />at Lender's option in the manner provided under paragraph ? hereot or by Borrower narking payment, +vhen 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 Bach sum shall become
<br />immediately due and payable µ*ith interest at the rate set forth in said note until paid and shall be
<br />secured by this bortgage. Failure by Borrower to comply utay, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />1111 insurance policies and renewals thereof shall be in form ac.rs^ptable m Lendet• and shall include a standard
<br />mortgage clause in favor of anti in form acceptable to Lender. Lerartr:,r shall hate the right to hold the policies and
<br />renewals thereof, ssnd Borrower stroll prtnnptiy furnish to Lender trEl renewal notices and ail receipts of paid pre-
<br />miums. In the event of loss, Borroccer shall give prompt notice to the insurance carrier and Lender. and Lender
<br />may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in trriting. insurm.ec proceeds shall be applied to restoration or
<br />repair of the Property damaged. provided such restoration or repair is econon::callc ieasil.rlc sort the security of
<br />this Mortgage is not thereby impaired. If such restoration or repair is not vconomicall}- feasible ar if the security
<br />of this Mortgage would be impaired, the insurance proceeds sirall 6e sppiicd to the scuts secured i:y this \lartgage.
<br />with the excess, if any, paid io Borrower. If the Property is abandoned by Borrower or ii Borrower fail., to respond
<br />to Lender within 30 days after notice by bender to Borroccer that the insurance earner offers to :zetae a Maim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance 1>roceeds at Iender's optian either to
<br />restoration or repair of the Property or to [he sums secm-ed hr this \tottgage.
<br />Unless Lender and Borrower othnrwise agree in writing. any suc)i application of proceeds to principal sirall
<br />oat en erd or postpone "the due date of Lhe :nn ~thlc installments referred to in [tsragraphs 1 and :hereof or change
<br />the amount of such installments.
<br />If under raragraph t8 hereof tiro Property is acgwred in' Lender, all right, tide ;tad interest of Borrower in
<br />and *_o a Wince holisies attd in Lnc[ to t!te ~:raceeds tltere:tf ~ to t h;' cxtrnv ;. .arcs _~. ,,, ,. r.
<br />gage immedistel}• prim• to such sale ur acnursition ~ resulrigq irmn damage to t~hr ~Yropm•ty ~p t•icr ~o the-sate er
<br />acquisiticn shall pass io Lender.
<br />8. Preservation and Matatenaace of Property; Leaseholds: Condominiums. Borro+ct•r sirall keep the r rop-
<br />erty in good repair and shalt not permit ur commit +vasre, impairment. or deterioration of nc~ R•opert}• un(I shall
<br />comply with the provisions of any Jesse, it this Mortgage i= on a leasehold. If [his \Im~tgage is en :. condominium
<br />unit, Borrower shall perfonu all of Borrorcer's obligations under the declarattat ot` condotinium or master deed.
<br />the by-laws and regulations of the condominium project anci constituent doeumc nts.
<br />7. Protection of Lender's Security. If Borrower fails to pertorm the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects l.encter's. interest in the Prop-
<br />erty, including, but not limited to, eminent domain, iusnivency, cor{c enfm•cement, or arratgements or proceed-
<br />ings invoh•ing a bankrupt or decedent, then Lender at Lender's option, upon uo[ice to Borrower, mac make such
<br />appenrsnees, disburse such evens and take such action ns a ^esessary ?n Itrotect Lendor•s interest. ia:clutling, hta
<br />not limited to, disbursement of reasonable attorney ~ ices and voice upon the Property to make repairs.:1ny
<br />amounts disbursed by Lender pursuant to this paragra}th i, +cith interest thereon, shall beconu additional indebt-
<br />edness of Borrower secured be this Mortgage. Unless Borrower and lender agree to other terms of payment, ..=.uch
<br />amounts shall be payable upon notice from Lender to Borrower reyucst-ing payment. thereof, and Irali bear inter-
<br />est frost the date of disbursement st the rote stated in the Note unless payment ui interest ut such rate would be
<br />contrary to applicablo law, in which event such :unntmts shall heart interest at the highest rate permissible 6y
<br />applicablo law. ATOthhtg contaiucti in this paragraph ;shall requrre. Lender to incur any expense or do any act
<br />hereunder.
<br />8. Inspection. Lender may crake or cause to be made reasonable ~ ntrics upon and inspections of the Prop-
<br />erty, provided that Lender shnil give borrower notico prior ro :ut}• -uch importinn specrictng reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />9. Condemnation. The proceeds of an}• .Heard or claim inr damages, direct or consequeotisl, m connection
<br />with an}' condemnation m• other taking of the Pnapcrty. or part thrreoi. or for rmtveyasnce in lieu of eondcmna-
<br />tion, are hereby assigned and shall 6e paid to Lender.
<br />In the event of a total taking ei the Prsper-t}•, the proceecia shall be appheri to the sums secured h}~ this \lora
<br />gage, with the excess, ii any, paid to Borrower. In nc~ event of x partial taking of ttu~ Propirty, unless Borrower
<br />-and Lender othern•ise agree in writing, there. siudl 6c applied to the sums secured by this Mortgage vch propor-
<br />tion of tho proceeds as is equal to that proportion +vhirh the amount of the scuts secured by thin \lortgage imme-
<br />Oiately prior to the date of taking bears io the fair market valoe of Clre Property immediately prior to the date of
<br />taking, with tha balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if niter notice b}• l..ender to Borrower that *.he condemnor offers
<br />to tnalte an award or settle a claim for damages. Borroccer fails to respcnci to Lender rvitiun 30 days of the data:
<br />04 such not-ice, Lender is authorized to collect anci apply the proceeds ut Lender's cation Tither to restoration er
<br />repair of the Property or to the sums secured by this Mortgage.
<br />Unless Lender and Bm~rower athencise agree in +rriting, any such application of proceeds to prine:gml shall
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