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Mortgagor fails to respond to Lender within 30 days from the date ~
notice is mailed by Lender to Mortgagor th~+t the insurance carrier
offers to settle a claim for insura~nce benefits, Lender is autho- j
rized to collect and apply the insurance proceeda- at Lender'8 f
optio~ either to restoration or repair of the ~ Property or to the
sums secured by this Mortgage.
Unless Lender and Mortgagor otherwise agree in writi~g, any ~
such application of proceeds to principal shall not extend or i
postpone the due date of the monthly installments referred to in i
paragraphs 1 a~d 2 hereof ar- change the amount of such install-
ments. If under paraqraph 18 hereof the Property is acqufred by '
Lender, all right, tftle,and interest of lriortgagor in and to a~y ;
insurance policies and in and to the proceeds thereof res.ulting '
from damage to the Property prior to the sale or acquisition shall ~
pass to Lender or to the extent of the sums secured by this ~
Mortgage immediately prior to such sale or acquisition. j
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6. Preservation and Maintenance of Pro ert • Leaseholds•
Condominiumss P anne Un t Deve o ments. Mortgagor s a eep e
- Prop~rty n go repa r an s a not commit waste or permit
impairment or deterioration of the Property and shall comply with
the provisions of any lease if this Mortgage is on a leasehold. s
If this i~ortgage is on a unit in a condominium or a planned unit
development,- Mortgagor shall perform all of Mortgagor's obliga-
tions under the declaration or eovenants creating or governing the
condominium or planned unit development, the bylaws and regula-
tions of the condominium or plannea unic develapsnenL, ana consti-
tuent documents. If a condominium or planned unit development ~
rider is executed by Mortgagor and recorded together with this '
Mortgage, the covenants and agreements of such rider shall be : ,
incorporated into and shall amend and supplement the covenants and
agreements of this Mortgage as if the rider were a part hereof. ~
7. Protection of Lender's Securit ; Mort a e Insurance. If ~
Mortgagor ails to perform the covenants an agreements contained j
j in this I~lortgage, or if any action or proceeding is commenced i~
~ which materially a~fects Lender's in~erest in -the Property, ~
~ including, but not limited to, eminent domain, insolvency, code
enforcement, or arrangements or proceedings involving a bankrupt
I or decedent, then Lender at Lender's option, upon notice to Mort-
gagor, may make such appearances, disburse such sums and take such
action as is necPSSary to protect Lender•s interest, including,
but not limited to, disbursement of reasonabl-e attorneys' fees '
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and entry upon the Pr.operty to make repairs, the costs of which ~
Mortgagor agrees to pay. Mortgagor agrees that Mortgagor shall be ~
responsible for the cost of mortgage• guaranty insurance in an
amount not less than the principal amount due under the Note (the ;
-"Mortgage Insurance") until the Note is ful~ly paid and shall pay k
the premiums required to maintain such Mortgage Insurance in ;
effect. Mortgagor shall pay the amount of all mortgage insurance ~
premiums in the manner provided under paragraph 2 hereof.
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Any amounts disbursed by Lender pursuant to this paragraph 7, 3
with interest thereon, shall become additional indebtedness of
Mortgagor secured by this Mortgage. Unless Mortgagor and Lender
- agree to other terms of payment,~ such amounts shall be payable
upon notice from Lender to Mortgagor requesting payment thereof,
and shall bear interest from the date of disbursement at the rate
payable from time to time on outstanding principal under the Note
unless payment of interest at such rate would be contrary to
applicable law, in which event such amounts shall bear interest at
the.highest rate permissible under applicable law. Nothing-eon-
tained in this paragraph 7 shall require Lender to incur any
expense or take any action hereunder.
4 BtbK JJ~ PAGE 9~4
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