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Lender. In event of loss Borrower will gi%c immediate notice by Lender shall give notice to Borrower prior to acceleration
<br />mail to the Lender, who may make proof of loss if not made following Borrower's breach of any covenant or agreement in
<br />promptly by Borrower, and each insurance company concerned this instrument (but not prior to acceleration under paragraph
<br />is hereby authorized and directed to make payment for such loss 12 unless applicable law provides otherwise). The notice shall
<br />directly to the Lender instead of to the Borrower and the specify: (a) the default; (h) the action required to cure the
<br />Lender jointly, and the insurance proceeds, or any part thereof, default; (c) a date, not less than 30 days from the date the
<br />may be applied by the Lender at its option either to the notice is given to Borrower. by which the default must be cured;
<br />reducti%m of the indebtedness hereby secured or to the and (d) that failure to cure the default on or before the date
<br />restom4on or repair of the property damaged. In event of specified in the notice may result in acceleration of the sums
<br />foreclosure of this instrument or other transfer of title to the secured by this instrument and sale of the Property. The notice
<br />mortgaged property in extinguishment of the indebtedness shall further inform Borrower of the right to reinstate after
<br />secured hereby. all right, title and interest of the Borrower in acceleration and the right to bring a court action to assert the
<br />and to any insurance policies then in force shall pass to.lbr, non- existence of a default or any other defense of Borrower to
<br />purchaser or grantee. acceleration and sale. If the default is not cured on or before
<br />9. That as additional and collateral security for the payment the date specified in the notice, Leader at its option may require
<br />of the note described, and all sums to become due under this immediate payment in full of aU sums secured by this
<br />instrument, the Borrower hereby assigns to the Lcko&r all instrument without further detnazr cl and may invoke the power
<br />profits, revenues, royalties, rights and benefits accruing to t1`, of sale and any other remedies permitted by applicable law.
<br />Borrower utider any and all oil and gas leases on said premises, Lender shall be entitled to•colltica all expenses incurred in•
<br />with the riot to receive and receipt for the same and apply pursuing the remedies providGiJ.W this paragraph 13, including.
<br />them to said indebtedness as well before as after default in the but not limited to, reasontiblh. akaarneys' fees and costs at' Bile
<br />conditious'of ties insiruiurnt, and the Lender may demand, sue evidence,
<br />for and recover any such payments when due and payable. but : ' 1C the power of szle is invoked. Trustee shall record a notice of
<br />shall not be required so to do. This assignment is to tem. b�;ate' default in each c.,mrny in which any part of the Property is
<br />and become null and void upon release of this insThtn -en2: located and shall mail copies of such notice in the manner
<br />10. That the Borrower will kOp the buildings upon said .' . prescribed by applicable law to Borrower and to the other
<br />premises in good repair, and
<br />rer l r commit n ©r,ptacniz war..e . persons prescribed by applicable law. After the time required by
<br />s ar.; applicable law, Trustee shalt give public notice of sale to the
<br />upon said land, nor suffer the said premises to be used £©
<br />uniawf d purpose. persons and in the manner prescribed by applicable law, j, .';jr.
<br />Trustee, without demand on Borrower, shall sell the Property at
<br />11. That if the premises, or any part Thereof, tv condeinged, public auction to the highest bidder at the time and place and
<br />under the power of eminent domain, or acquired for a pu67ic uncles the terms designated in the notice of sale in one or more
<br />use, the damages awarded, the proceeds for the tilting af,' or parcels and in any order Trustee determines. Trustee may
<br />the mneiciarau ^*2 for such ° ui°ftion to t. c ♦ntci +i f i ELI,- 4cv'i p�iparrC 3sic Of Property by public S :vr •
<br />.•� 't all cr arty yatcc; of ire rr
<br />amount of indebtedness upon this instrument and the note announcement at the time and place of any previously scheduled
<br />which it is given to secure remaining unpaid, are t4uby assigned sale. Lender or its designee may purchase the Property at any
<br />by the Borrower to the Lender, and shall be pain foahwith to sale.
<br />said Lender to be applied by the latter on account o,, the next
<br />maturing instaWnents of such indebtedness. Upon receipt of payment of the price bid, Trustee shall deliver - -
<br />r.
<br />to the purchaser Trustee's deed conveying the Property. The
<br />12. The Borrower further agrees that should this instrument recitals in the Trustee's deed shall be prima facie evidence of the
<br />and the note secured hereby not be eligible for insurance under . truth of the statements made therein. Trustee shall apply the
<br />the National Housing Act within eight months from the date proceeds of the sale in the foll4iing order: (a) to all expenses of
<br />hereof (written statement of any officer of the Mpartment of the sale, including, but not limited to. Trustee's fees as _
<br />'Housing and Urban Development or authorized agent of the permitted by applicable law and reasonable sttorneysl•.-fees; (b)
<br />Secretary of Housing and Urban Development dated subsequent to all sums .seuteed by this Semicy Instrurrmi; and`(c) any
<br />to the eight months' time from the date of this instrument, excess to the, person or persons teQally entitled to it.
<br />declining to insure said note and this mortgage. being deemed 14. Upon acceleration under.
<br />conclusive proof of such ineligibility), the Lender' or holder of p° P=z�paph 13 or abandonment of
<br />the note may, at its option, declare all sums se=xed hereby the Property, Lender (in person,. by agent or by judicially
<br />immediately due and payable. Notwithstanding dw foregoing, appointed receiver) shall be er titi . to enter upon, take
<br />this option may not be exercised by the Lender 'car the holder of possession of and manage the Prcperty atd: to collect the rents"
<br />of the Property including those past due.
<br />the note when the ineligibility for insurance udder the National Any rents collected by Lender or the receiver shall be applied first to a
<br />Housing Act is due to the Lender's failure ro re=. -t. the pP payment of the
<br />mortgage insurance premium to the Depanmeec of Housing and costs of management of the Property and collection of rents,
<br />Urban Development. including, but not limited to, receiver's fees, premiums em
<br />receher's bonds and reasonable attorneys' fewi, and then to- tilt
<br />13. That if the Borrower fails to make.- pa.2' =ts of money sums secured by'tlus instrument.
<br />when the same become due, or fails, to conforrtc t&. and comply
<br />with any of the conditions or agreements contained: in this
<br />instrument, or the note which it secures, then the entire
<br />principal sum and accrued interest shall at once be:ome due and
<br />payable, at the election of the Lender.
<br />Page 3 of 5 HUD•92143DT-1
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