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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who nay make proof of loss if not trade promptly by
<br />Borrower, and each insurance company concerned is hereby
<br />authorized and directed to make payment for such toss directly to
<br />the tender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds. or any part thereof, may be applied by the
<br />Leader at its option either to the reduction of the indebtedness
<br />hereby secured or to the restoration or repair of the properly
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby, all right. title and interest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
<br />9. That as additional and collateral security for the payment of the
<br />note described, and all sums to become due under this instrument.
<br />the Borrower hereby assigns to the Lender all profits, revenues.
<br />royaltie% rights and benefits accruing to the Borrower under any and
<br />all oil and gas leases on. said premism with the right to receive and
<br />receipt for the same and: apply them to said indebtedness as well
<br />before as after default in the conditions of this instrument, and the
<br />Lender may demand, sue for and recover any such payments when;
<br />due and payable. but shall not be required so to do. This assignment
<br />is to terminate and become null and void upon We= of this
<br />instrument.
<br />10. That the Borrower will keep the buildings upconai l: pr= .
<br />in good repair, and neither commit otir permit waste. uraz Wd (; id,
<br />nor suffer the said premises to be used for any unlavf,41 �tpose.
<br />11. That if the premises„ or any part thereof, be, camdemned under
<br />the power of eminent domain, or acquired for a pnllic use, the
<br />damages awarded, the proceeds for the taking of, or the
<br />consideration for such acquisition. to the extent gat the full amount of
<br />indebtedness upon this instrument and the note wkkh it is given to
<br />secure remaining unpaid,, are hereby assigned by tlee Borrower to the
<br />Lender, and shall be paid forthwith to said. Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
<br />12. The Borrower further agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Developmear<dated subsequent to the eight months' time
<br />from the date of this itistrament, declining to insure said note and
<br />this mortgagee being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the note mag: at its option, declare all s=
<br />secured hereby immediately ftr astd payable. Notwithstanding the
<br />foregoing, this option mwj not be exercised by the. Lender or the
<br />holler of the note wbea: the ineligibility for insurance under the
<br />National Housing Act is:due to the Lender's failure ta remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<br />13. That if the Borrower fails to make any pa).-ts, is€ mbncy
<br />when the same become due, or fails to conform to and comply, with
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<br />any of the conditions or agreements contained in this instrument, or
<br />the note which it secures, then the entire principal sum. and accrued
<br />interest shall at once become duo and payable, at the election of the
<br />Lender.
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specify: (a) the
<br />default; (b) the action required to cure the default (c) a date, not less
<br />than 30 days from the date the notice is given to Borrower, by which
<br />the default must be cured; and (d) that failure tt)• cure the default on
<br />or before the date specified in the notice may result in acceleration
<br />of the sums secured by this instrument and sale, of the Property. The
<br />realise• shall further inform Borrower of the right to reinstate after
<br />accdcradcn and the right to bring a court vzbw to assert the non-
<br />existence of a default; or any other defense of Tioacwer to
<br />acceleration and sale. If the default is not cured on or before the. date
<br />spew in the notice. Lender at its option, may require immediate
<br />paywRnt in full of all sums secured by this instrument withow
<br />further demand and may invoke the power ofsee and any other
<br />remedies permitted by applicable law. l.+m&x s1 1 be entitled to
<br />collect all expenses incurred in pursuing the re.tWies provided in
<br />this paragraph 13, including, but not limited to, reasonable
<br />attorneys' fees and costs of title evidence.
<br />If the power of sale is invoked, Trustee shalt, revord a notice of
<br />default in each county in, which any pan of the Property is located
<br />and shall mail copies of such notice in the manner prescribed.by
<br />applicable law to Borrower and to the other persons prescribed by
<br />appf&k hle law. After the time required by applicable law, Trustee
<br />shall give public notice of sale to the persons and in the manner
<br />prescribed by applicable law. Trustm without demand on Borrower,
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and under the terms designated in the notice of sale
<br />in one or more parcels and in any order Trustee determines. Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement at the time and place of any previoWy scheduled
<br />sale. Lender or its designee may purchase the Property at any sale.
<br />Upon. receipt of payment of the price bid, Trustee shall &liver to
<br />the purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustees deed shall be prima facie evidence of the truth of the
<br />statements made therein. Trustee shall apply the proceeds of the sale
<br />in the following order. (a) to all expenses of diew)e, including, but
<br />not limited to, Trustee's fees as permitted by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by this Security
<br />Instrument; and (c) any excess to the 'person sac persons legally
<br />entitled to it.
<br />14. Upon acceleration under paragraph 13 or abandonment of the
<br />Property, lender (in person, by agent or by judicially appointed
<br />receiver) shall be entitled to enter upon, take possession of arced
<br />manage the Property and to collect the rents of ft Property
<br />including those grit der-_ Any rents collected by Lender or the
<br />receiver shall. be epoied'first to payment of tbe.costs of management
<br />of the Property ind.collection of rents, including, but not limited to.
<br />receiver's fees, pr=iums on receic)-s bonds and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
<br />HUD - 9214307 -1
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