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<br />Lender. In event of loss Borrower will give immediate notice by
<br />mail to the Lender, who may make proof of loss if not made
<br />promptly by Borrower, and each insurance company concerned
<br />is hereby authorized and directed to make payment for such loss
<br />directly to the Lender instead of to the Borrower and the
<br />Lender jointly, and the insurance proceeds, or any part thereof,
<br />may be applied by the Lender at its option either to the
<br />reduction of the indebtedness hereby secured or to the
<br />restoration or repair of the property damaged. In event of
<br />foreclosure of this instrument or other transfer of title to the
<br />mortgaged property in extinguishment of the indebtedness
<br />secured hereby. all right, title and interest of the Borrower in
<br />and to any insurance policies ,then in force shall pass to the
<br />purchaser or grantee.
<br />9, That as additional and v.1 meW swuTity for the pakvment
<br />of the note descaibed,•and 41 sums to bewnze due un &-r this
<br />znstiment. the Borrower hereby assigns to the Lender z"U
<br />prafits, revenues, royalties,'sights and benefits accruing to the
<br />&,. -rower under any and all oil and gas leases on said premises,
<br />with the right to receive and receipt for the same and apply
<br />them to said indebtedness as well before as after default in the
<br />conditions of this instrument, and the Lender may demand, sue
<br />for and recover any such paymen4 when due and payable, but
<br />shall not be required so to do. This assignment is to terminate
<br />and become null and void upon release of this instrument.
<br />10. That the Borrower will keep the buildings upon said
<br />premises in good repair. and neither commit nor permit waste
<br />upon said land, nor suffer the said premises to be used for any
<br />unlawful purpose.
<br />11. That if the premises, or any part thereof. be condemned
<br />under the power of eminent domain, or acquired for a public
<br />use, the damages awarded, the proceeds for the taking of. or
<br />the consideration for such acquisition, to the extent of the full
<br />amount of indebtedness upon this instrument and the note
<br />which R is o vwen to sevwre _- - -„mina .,nnaid arp hereLsy acdoned
<br />by the Borrower to the Lender, and shall be paid forthwith to
<br />said lender to be applied by the latter on account of the next
<br />maturing installments of such indebtedness.
<br />12. The Borrower further agrees that should this instrument
<br />and the note secured ha by not be eligible for insurance under
<br />cba- National Housing Act within eight months from the date
<br />hereof (written statement of-any officer of the Department of
<br />Housing and Urban Development or authorized agent of the
<br />Secretary of Housing and Urban Development dated subsequent
<br />to the eight months' time from the date of this instrument,
<br />declining to insure said mete and this mortgage, being deemed
<br />conclusive proof of such iiuligibility), the lender or holder of
<br />the note may„ at its option, declare all sums secured hereby
<br />immediately due and payable. Notwithstanding the foregoing,
<br />this option may not be exercised by the Lender or the holder of
<br />the note when the ineligibility for insurance under the National
<br />Housing Act is due to the Lender's failure to 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 payments of money
<br />when the same become due, or fails to conform to 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 become due and
<br />payable. at the election of the Lender.
<br />100425
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in
<br />this instrument (but 1101 prior to acceleration under paragraph
<br />12 unless applicable law provides otherwise). The notice shall
<br />specify: (a) the default; (b) the action required to cure the
<br />default; (c) a date, not less than 30 days from the date the
<br />notice is given to Borrower, by which the default must be cured;
<br />and (d) that failure to cure the default on or before the date
<br />specified in the notice may result in acceleration of the sums
<br />secured by this instrument and sale of the Property. The notice
<br />shall furti!xr inform Borrower of the idght to rdnstate after
<br />a=leration and •tlte right to bring a court acrit+.n Eo msrse tht
<br />nori- existeit,,e of a drSa >m!t or any other defense of lrta izweT W .
<br />acoleradan and sale. If the default is not curod on wr before
<br />the'dzre specified in the notice, Lender at i.s.option may require
<br />immediate payment in full of all sums socur+ed by this
<br />instillment without further demand and may invoke the power
<br />of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in
<br />pursuing the remedies provided in this paragraph 13, including,
<br />but not limited to, reasonable attorneys' fees and costs of title
<br />evidence.
<br />If the power of sale is invoked, Tnistee shall record a notice of
<br />default in each county in which any part of the Property is
<br />located and shall mail copies of such notice in the manner
<br />prescribed by applicable law to Borrower and to the other
<br />persons prescribed by applicable law, After the time required by
<br />applicable law, Trustee shall give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee, without demand on Borrower, shall sell the Property at
<br />public auction to the highest bidder at the time and place and
<br />under the terms designated in the notice of sale in one or more
<br />parcels and in any order Trustee determines. Trustee may
<br />postpone sale of all or any parcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />sale. Lender or its desiance may purchase the Property at any
<br />sale.
<br />Upon receipt of payment of the price bid. Trustee shall deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the
<br />proceeds of the sale in the following order: (a) to all expenses of
<br />the sale, including, but not limited to. Trustee's fees as
<br />permitted by applicable law ;khd reasonable attorneys' fees; (b)
<br />to all sums secured by this Se ffty Instrument; and (c) any
<br />excess to the person or persoitss, regally entitled to it.
<br />14.' Ripon acceleration under paragraph 13 or abandottment: of
<br />the Property, Lender (in person, by agent or by judicially
<br />appointed receiver) shall be entitled to enter upon, take
<br />possession of and manage the Property and to collect the rents
<br />of the Propent p ircl'uding those past due. Any rents collected by
<br />Lender or th& receiver shall be applied first to payment of the
<br />costs of management of the Property and collection of rents..
<br />including, but not limited to, receiver's fees, premiums on
<br />receiver's bonds and reasonable attorneys' fees. and then to the
<br />sums secured by this instrument.
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