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<br /> Account No.:940-2-390-406807
<br /> All insurance policies and renewals thereof shall be in a form acceptable to Lender and shali inciude
<br /> a standard mortgage clause in favor of and in a form acceptable to Lendec Lender shail have the right to
<br /> hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices
<br /> and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance
<br /> carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to
<br /> restoration or repair of the Property damaged, provided such restoration or repair is economically feasible,
<br /> and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically
<br /> feasible or if the security of this Mortgage would be impaired,the insurance proceeds shall be applied to
<br /> the sums secured by this Mortgage,with the excess, if any, paid to Borrower. If the Property is abandoned
<br /> by Borrower, or if Borrower fails to respond to Lender within thirty (30) days from the date notice is mailed
<br /> by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is
<br /> authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of
<br /> the Property or to the sums secured by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree in writing,such application of proceeds to principal shall
<br /> not extend or postpone the due date of the payments referred to in paragraph 1 hereof or change the
<br /> amount of such payments. If under paragraph 21 hereof the Property is acquired by Lender, all rights,title
<br /> and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from
<br /> damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured
<br /> by this Mortgage immediately prior to such sale or acquisition.
<br /> If all or part of the Property is damaged or destroyed by a third party and sums are due from that party
<br /> or its insurer as a result,whether due to judgment,settlement or other process,those sums shall be applied
<br /> in the same manner as insurance proceeds under this clause.
<br /> 6. Preservatlon and Maintenance of Property; Leaseholds; Condomin(ums; Planned Unit
<br /> Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit
<br /> impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage
<br /> is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower
<br /> shall perform all of Borrower's obligations under the declaration of covenants creating or governing the
<br /> condominium or planned unit development, the bylaws and regulations of the condominium or planned
<br /> unit development, and constituent documents. If a condominium or planned unit development rider is
<br /> executed by Borrower and recorded together with this Mortgage,the covenants and agreements of such
<br /> rider shall be incorporated into and shall amend and supplement the covenants and agreements of this
<br /> Mortgage as if the rider were a part hereof.
<br /> 7. Protection of Lender's Security. If Borrower fails to pertorm the covenants and agreements
<br /> contained in this Mortgage,or if any action or proceeding is commenced which materially affects Lender's
<br /> interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or
<br /> arrangements or proceedings involving a bankrupt or decedent, then Lender, at Lender's option, upon
<br /> notice to Borrower,may make such appearances,disburse such sums and take such action as is necessary
<br /> to protect Lender's interest, including, but not limited to, hiring an attorney to appear in the action or
<br /> proceeding and entry upon the Property to make repairs.
<br /> Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become
<br /> additional indebtedness of Borrower secured by this Mortgage unless otherwise provided in the
<br /> Agreement.Unless Borrower and Lender agree to other terms of payment,such amounts shall be payable
<br /> upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of
<br /> disbursement at the rate payable from time to time on the outstanding principal under the Agreement,
<br /> unless payment of interest at such rate would be contrary to applicable law, in which event such amounts
<br /> shall bear interest from that date of disbursement at the highest rate permissible under applicable law.
<br /> Nothing contained in this paragraph 7 shall require Lender to incur any expense or take action hereunder.
<br /> Any action taken by Lender under this paragraph 7 shall nof cure any breach Borrower may have committed
<br /> of any covenant or agreement under this Mortgage. Borrower agrees that any advance notification to
<br /> Borrower required by law before Lender may perform duties of the Borrower shall be satisfied if mailed to
<br /> Borrower's address as provided in this Mortgage five (5) days before Lender performs the duties, or if
<br /> delivered to Borrower two (2) days before such performance. Borrower also agrees that any notification to
<br /> Borrower required by la�ro when Lender performs duties of the Borrower shall be satisfied if mailed to
<br /> Borrower's address as provided in this Mortgage within sixty (60) days after Lender performs the duties.
<br /> 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the
<br /> Property, provided that Lender shall give Borrower notice prior to any such inspection specifying
<br /> reasonable cause therefore related to Lender's interest in the Property.
<br /> 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br /> connection with any condemnation or other taking of the Property,or part thereof,or for conveyance in lieu
<br /> of condemnation,are hereby assigned and shall be paid to Lender.
<br /> In the event of a total taking of the Property,the proceeds shall be applied to the sums secured by this
<br /> Mortgage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless
<br /> Borrower and Lender otherwise agree in writing, there shall be applied to the sums secured by this
<br /> Mortgage such proportion of the proceeds as is equal to that proportion which the amount of the sums
<br /> secured by this Mortgage immediately prior to the date of taking bears to the fair market value of the
<br /> Property immediately prior to the date of taking,with the balance of the proceeds paid to Borrower.
<br /> NE-LOC Mortgage-01/01/98 Page 3 of 6
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