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HomeMy WebLinkAbout0960 thereof. Borrower shall pr~~ptly furnish to Lender all notic~s of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fur.nish to Lender receipts eviden~ing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Horrower shall agree in writing to the payment of the obliqation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Proper~y or any part thereof. 4. HAZARD INSURANCE. Borrower shall keep the ~ improvements now existing or hereafter ~rected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage requir~d to pay- the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurace policies shali be paid ,by Borrower making payment. when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage c~ause in favor of and in form acceptable to Lender. Lender shall have the right ta hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair or i.he Property damages, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds sha11 be applied to the sums secured by this Mortgage, with the excess, ~if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is ~ authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower_otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone and due date of the payments referred to in paragraph 1 hereof or change the amount of such payments. If under paragraph i5 hereof the Property is acquired by Lender, ~11 right, title and interest of Borrower in and to any insurance poZicies and in and to tl~e proceeds thereof res~lting from damage to the Property prior to the sale or acquisitifln shall pass to Lender to the extent of the sums secured by this Mor~gage immediately prior to such sale or acquisition. 5. PRESERVATION AND riAINTENANCE OF PROPERTY. Borrower i i . z BO)K 4s~ PaGE 959 . - .