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Zf under paragraph I$ hereof the Prolsertv is sold cr ±i:e Property is otherwise acquired by Lender, Lender
<br />ahaH apply', no later titan immerlistely prior to the sale o the Property or its acquisition by Lender. sny Funds
<br />herd by Lender at the time of application as a credit against tl;e ±mrs secured by this Mortgage.
<br />3. Applieatioa of Payments. Unless applicable law pruviries otherwise, ail payments received by Lender
<br />under the tiote and pamgrapi:s I and ?hereof shall ]rr applied i,r Lender first in payment of amount payable to
<br />~ Lender by Borrower under paragraph 2 hereof, then to interest payable cn the :tole and on Future Advances, if
<br />~.i any, and Then to the principal of the \ote and to the principal of Future Advances, if any.
<br />4. Charges; Liens. Borrower shat] pay all taxe<, assessments and other charges, fines and impositions a+xrib-
<br />~ arable to the Property which may attain a priority over chic liongage, and ground rents, if an}•, at LendePs
<br />Q option in thz manner provided under paragraph 2 hereof or by Borrower making payment, when due, directly to
<br />Q the payee thereof. Borrower shall promptly funtisit to Lender all notices of amount due under this paragraph,
<br />and in the event Borrower shall make payment :iirectly, Borrower shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any lien w°hich has priority over this Mortgage; pro-
<br />~ vided, that Borrower shall 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 lieu Sn a manner acceptable to Lender, or shall in good faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings which operate to preventt.he enforcement of
<br />the lien or forfeiture of the Property or any part therevf.
<br />5. Hazard Insurance. Borrower shalV keep the hnprovements now existing or hereafter erected on the Prop-
<br />eny insured against loss by fire. hazards included within the term "extended coverage", and such other hazards as
<br />.. Lender may require and in such an:ourts and for such periods a, Lender msy require: provided, that Lender shall
<br />not require thst the amount of such coverage exceed that amount of coverage required to pay the sums secured by
<br />This 3lartgage-
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided; that such approval shsll not be unreasortsbly wiihheld. All premiums on insurance policies shall be paid
<br />'t L°nd¢r's on*,.ier. in th= m _ provided u::cler ; amgmpl: 2 hereof ~r by Borrower making payment, when due,
<br />directly to the insursnce carrier.T
<br />In the event any poIic}• 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 interest aL the rate set forth in said note uniil paid and shall be
<br />secured by this Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />under the terms of this 'Mortgage.
<br />Alt insurance policies and renewals thereot shall be in form acceptable to Lender and sha[7 include a standard
<br />mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and alI receipts of paid pre-
<br />miums. In the event of loss, Borrower snail give prompt notice to the insurance carrier and Lender, and Lender
<br />may make proof of foss if not made prompik by Borrower.
<br />Unless Lender and Borrower otherwise agree in w•ritine. insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged. provided such restoration or repair is economical]}- feasible and the security of
<br />this \iortgage is not thereby impaired. If such restoration or repair is not economicaliv feasible or if the security
<br />of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this i1•iortgage,
<br />with the excess, ii any, paid io Borrower. Ii the Yroperzy is ai>andored by Borrower or ii Borrower fails to respond
<br />Go Lender within 30 days alter notice by Lender zo Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect a:.r: _pplp tl-,~ insurance proceeds at Lender's option either to
<br />restoration or repair vi the Properly or to the sums secured by this \iortgage.
<br />Unless Lender and Borrower otherwise agree i ; ;vriting, am• such applieatimt of lroceeds to principal shall
<br />not extend or postpone the due date of the monthly installments reterred to in paragraphs I and 2 hereof or change
<br />the amount of such installments.
<br />If under paragrsph I$ hereof the Property is acquired by Leader, all right, title and interest of Borrower itt
<br />and to any insurance policies and in and to the proceeds thereof Ito tl:e extent of the sums secured by this Mort-
<br />gage immediately prior to such salt or acquisition) resulting from damage to the Property prior to the sale or
<br />acquisition shall pass to Lender.
<br />6. Preservation sad Maiateaance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not. permit or commit wasie, impairment, or deterioration of the Property and shall
<br />comply with the provisions of an}• lease, it this Mortgage is on a lessehold. If this Mortgage is on a condominium
<br />unit, Borrower shall perform all of Borrower's obligations under the declarstion of condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants snd agreements contained in
<br />this ~Sortgage, or it any action or proceeding is commenced which materially afTects Lender's interest in the Prop-
<br />erty, including, but not limited io, eminent domain, insolvenc}•, code enforcement, or arrangements or proceed-
<br />ings invoking a bsnkrupt or decedent, then Lender at Lender's option, upon notice tv Borrower, may make such
<br />appearances, rlishm•se such sums and take such action as is necessary to protect Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any
<br />amounts disbursed by Lender pursuant to this paragraph i, with interest thereon, shall become additional indebt-
<br />edness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of paymeni, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bea* inter-
<br />est from the date of disbursement at the rate stated in the \ote unless psyment of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible by
<br />applicable law. \othing contained in this paragraph 7 shall require Lender tv incur any expense or do any sci
<br />hereunder.
<br />$. Inspection. Lender may make or cause io 6c made reasomable eniries upon and inspections of the Pirop-
<br />erty, prvvided That Lender shall give Borrower notice prim' to any such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />$. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, m• part thereot, or for convepance in lieu of condemna-
<br />...aa, are h° ~t;y a signed and : ,l by paid tv Len-'-
<br />In the event of a total taking of Che Propertyu the proceeds shall be applied tv the stuns secured by this 4fort-
<br />gage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower
<br />and Lender otherwise agree in writing, there shall be applied to the sums secured by this Mortgage such pronor-
<br />lion of the proceeds as is equal to that proportion which the amount of the sums secured by this 3Ivrtgage imme-
<br />diately prior to the date of taking bears io the fair market slue of rife Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Prvperty is absndoned by Borrower or if alter notice by Lender tv Borrower thst Che condemnor offers
<br />io make an award or seCLle a claim for damages, Borrower fails to re pond to Lender sit.hin 30 days of the date
<br />of such notice, Lender is authorized to-collect and apply i.he proceeds at Lender's option either to restoration or
<br />repaie of the Property yr to the autos scoured by this _]iortgage.
<br />Unless Lender and Bon~vwer otherwise agree in writing, any such application of proceeds tv principal shall
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