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<br />Ii under paragraph i$ hereof the Yra,~erty is sold or the Ptoperzv i, otherwise acquired by Lender, Ltzsder
<br />shall appl}•, no later Aran immediately prior rn zhe sah• of the Pzo!.ens or its acquisition by Lc octet. ary Fun%s
<br />hr,;d by Lender at the time of application :rs a rt~diT aaain~t the =mr>< •eeur!xl by this 33ortgagc.
<br />3. Application of Payments, unless alrplicsble Ian' provides ofl:erwi.~• aII nayrnents received by Lender
<br />.~ ender *.he tiote and paragraphs I and 2 hereo[ shelf be aplriieai be i.endcr &rst in payment- a*" amounts payable io
<br />tee Lender by Borrower under paragraph ?hereof, rhea to interc_t lravable ccn zire lets and on rotate advances, if
<br />~ any, and then to the principal of the Aiote and to the prineipai of Fufure Advances, if any.
<br />4. Charges; Liens. Borrower s[ratl pay all taxer, assessments and other charges, fines and impositions atfrib-
<br />arable to the Property :vhich may attain a prinriiy dyer this 13ortgage, and ground rents, if any, at Lender's
<br />option in the manner provided under paragraph ?hereof nr in• Borrower making payment, when due, directly to
<br />ti're payee thereof. Borto+ver shall gtompfly funrisit to Lender all notices of amounts due under this paragraph,
<br />-and in the event Borrower sI:all make payment directly, Borrower shall promptly furnish to Tender receipts evi-
<br />deneing such payments. Borrower shall promptly discharge any lien which has priority over this \3ortgage; pm-
<br />vided, fltat 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 lien in a manner acceptable to Lender, or shalt in good faith contest
<br />such lien by; or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of
<br />the lien or forfeiture of the Property or any part thereoi-
<br />5. Hazed L-rsuraaee. Borrower shall keep the improvemerts now existing or hereafter erected on the Prop-
<br />erty insured against loss b}- fire, hazards included within the term "`extended coverage", and sash other hazards as
<br />Lender may require and in such amounts and for such periods ss Lender may require: provided, that Lender shall
<br />not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by
<br />this 13ortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval U}• Lender;
<br />provided, that such approval shall noE be unreasonably withheld- All premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof er by Borrower making payment, when due,
<br />directly to the insurance c-artier.
<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 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 />under the terms of this Mortgage.
<br />all insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard
<br />mortgage clause in favor of and in faun acceptable to Lender. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all rene;cal notices and all receipts of paid pre-
<br />miums. In the event ai loss, Borrower shall give jrrompi nonce to the insurance carrier and Lender, and Lender
<br />-may make proof n1 loss if not made promptly by Borrower.
<br />• Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be apnlied io restoration or
<br />repair of fire Propeny damaged. provided such restoration or repair is economically feasitt~le and the security of
<br />this Mortgage is not thereby impaired. Ii such restorat-ion or repair is not r-conomically feasible or if the security
<br />of this \3origage would be impaired, the itrsurance proceeds shall be applied to the sums secured by this 33ortgage,
<br />with the excess, if any, paid to Borrower. If the Property is ai~sndoned by Borrower or if Borrower fails to respond
<br />io Lender within 30 days after notice by Lender to Bon•o+ver iliac the insurance carrier offers to settle a claim for
<br />insurance benefits; Leader is authorized to collect and apply the irsurance proceeds at I_ende-r's option either io
<br />- restoration or repair ot- the Property or to the sums secured l,y this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall
<br />not extend or postpone fbe due dale of the monthly installments reterred to in paragraphs I and 2 hereof or change
<br />the amount of such installments.
<br />Ii under paragraph 18 hereof the Y!roperiy iy acquired by Lender, al! right, title and interest of Harrower in
<br />and to any insurance policies and i^ and to rite proceeds thereof :to the extens of the sums secured by this Mort-
<br />gage_immedistely prior ±o such sale ar aequicit-fool resulting from damage m the Property prier to the Qale or
<br />acquisition shall pass to Lender.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit m• commit waste, impairment, or deterioration of the Propert-y and shall
<br />comply with the provisions o[ any lease, it this Mortgage is on a leasehold. If this Mortgage is on a condominium
<br />unit, Borrower shat] perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents.
<br />7. Protection of Lendei s Security. if Borrower fails to perform the covenants and agreements contained in
<br />this Mortgage, or if any action or proceeding is commenced which materially affects bender-s interest in the Prop-
<br />erty, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums and take such action as is neces=sty fo 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 7. with interest thereon, sha!i become additional indebt-
<br />edness of Borrower secured by this 1lorigage. Unless Borrower and bender agree to other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting traymeut thereof, and shall bear inter-
<br />- eat from the date of disbursement at the rate stated in the Vote unless payment 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. \TOthiug contained in this narsgrsph 7 shall require bender to incur any expense or do any act
<br />hereunder.
<br />- tt. Tnapecfion. Lender may make or cause to on_ made reasonable entries upon and inspectias of the Prop-
<br />. erty, provided That bender shall give Borrower notice prim to unr such inspection specifying reasonable cause
<br />therefor related to Lender's interest in the Property.
<br />J. Condemnation. The proceeds of ssny award or claim for damages, direct or consequential, iu connection
<br />with e+ny candc:mnation or other faking of the Property, or part thereof, o• for conveyance in lieu of condemna-
<br />lion, ate horeby assigned and shall be paid to Lender.
<br />tint of a fatal faking of =~he `rroperiy, the proceeds s!raii ire applied to the sinus secureri by this aulort-
<br />gage, w•itlethe excess, if any, paid to Borrower. Ia the event of a partial taking of the Property, unless Borrower
<br />and bender otherwise agree in writing, there shall be applied to ilte sums secured b}° this Mortgage suoh propor-
<br />tion of the proceeds as is equal to that proportion which the amount of the awns secured by This Mortgage imme-
<br />diately prior to the date of taking hears to the fair utarket- value of the Property immediately prior to the date of
<br />taking, with the balance of the proceeds paid to Borrower.
<br />If the Property is abandoned h}' Borrower o!- ii after notice icy Lender io Agrrower that the condemnor offers
<br />to make su award o• settle a claim for damage:=, Borrower fails to ,,*espor:d to ix:;der within 30 days of the dais
<br />of suoh natioe, Lender is sutitarizett to collect anal al;ply Che proceeds at Lender's option eiihr~~ to r~craration er
<br />repair of t-I+e Yraperty or to the sums securccl by this \lortgage.
<br />Gofers I-as}der and Borrows-r otherwise agree in writing, any such uppliratian of procecd.~ ro prim~ipal shall
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