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HomeMy WebLinkAbout0961 shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property. 6. PROTECTION OF LENDER'S SECURITY. If Borrower i fails to perform the covenants and agreements contained I in this Mortgage, or if any action or proceeding is commenced ' which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement or arrangements or proceedings involving a bank.rupt or decedent, then Lender at Lender's option; upon notice to Barrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, d•i~bursement of reasonable attorney's fees and entry upon the Property to make repairs. Any amounts disbursed by Lender pursuant to this paragraph 6 with interest thereon, shall become additional i;~debtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower 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 interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under ~ applicabl2 law. Nothing contained in this paragraph 6 - shall require Lender to incur any expense or take any action hereunder. 7. INSPECTION. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 8. CONDEMNATION. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part t thereof, or for conveyance in lieu of condemnation, are ~ hereby assigned and shall be paid to Lender. ~ In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, unless Borrower and Lender otherwise agree in writing, tnere shall be applied to the sums secured by this Mortgage such proportion of the proceeds as is equal to that proportion which the amount of the sums secured by this Mortgage immediately prior to the date of taking bears to the fair market value of the Property immediately prior to the date of taking, with the balance of the proceeds paid to Barrower. If the Property is abandoned by Borrower, or if , after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 daxs after the date such notice is mailed, Lender is authorized to collect ~ and apply the 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 the due date of the payments referred to in paragraph 1 or change the amount of such payments. 9. BORROWER NOT RELEASED. Extension of the time for payment or modification or amorti2ation of the sums . 3 B0~( ~ ~ _ -