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<br />Lentkar. In event of koss Borrower will give immediate notice by
<br />mail c,% t'hc Le ,cleT, ovtto may make proor of loss if not rnade
<br />pT,.Vrptly by Borrower, and each insurance company concerned
<br />I-, hereby authorized and directed to make payment for s;xch 1055
<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 W1 the
<br />purchaser or grantee.
<br />9. That as additional and collateral security for the paytuoat.
<br />of the note described, and all sums to become due under this
<br />Instrument, the Borrower hereby assigns to the Lender all
<br />profits. revenues. royalties, rights and benefits accruing to t;te
<br />Borrower under any and all oil and gas leases on said praw ses.
<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 payments when due and payable, but
<br />shall not be required so to do. This ass*nment is to terminate
<br />and become null and void upon release of this instrument.
<br />10. That the Borrower %,.Tl keep the buildings upon said
<br />premises in good repair, an& neither commit nor permit waste
<br />upon said land, nor suffer the said pret kes 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 />nee. the damages awarded, the proceeds for the taking of, or
<br />the consideration for such acquisition, to the extent of CC ruli
<br />amount of indebtedness upon this instrument and the note
<br />which it is given to secure remaining unpaid, are hereby assigned
<br />by the Borrower to the Lender. and shall be paid forthwith to
<br />said Lender to be applied bg 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 hereby not be eligible for insurance under
<br />the National Housing Act wit94ct eight months from. the date
<br />hereof (written statemertt of any officer of the Deparment of
<br />Housing and Urban Devefoptnent or authorized agent of the
<br />Secretary of Housing and Urbni' Development dated subsequent
<br />to the eight months' time from, the date of this instrument,
<br />declining to insure said note aid OL-, mortgage, being deemed
<br />conclusive proof of such imejipbMtf)", the Lender or holder of
<br />the note may, at its optiort, declare all sums secured hereby
<br />immediately due and payabte..Not -iidtstanding the foregoing,
<br />this option may not be exer, ised. by the Lender or the holder of
<br />the note when the ineligibil4y for4asurance under the National
<br />Housing Act is due to. the Lender's failure to remit the
<br />mortgage insurance prerusiwm to the Department of Housing and
<br />Urban Develepment.
<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 eondidens 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 />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in
<br />this instrument (but not 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 cute 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 further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action to assert the
<br />non-existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before
<br />the date specified in the notice, Lender at its option may require
<br />immediate payment in full of all sums secured by this
<br />instrument 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. Trustee shall record a notice of
<br />default in each count} in which any part of the Property is
<br />located and shall mail copies of such notice in the manner
<br />prescribed by applicablet law to Borrower and to the other
<br />persons prescribed by applicable law. After the time required by
<br />applicable law, Trustee shaft gives 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 />pa,tlsa .c °.TMle of a1 or Any parcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />sale. Lender or its designee 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 and reasonable attorneys' fees; (b)
<br />to all sums secured-by this Security Instrument; and (c) any
<br />excess to the person or persons legally entitled to it.
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Property, Lender (in person, by agent or by judicially
<br />appointed receiver) shalt be entitled to enter upon, take
<br />possession of and manage the Property and to collect the rents
<br />of the Property including those past due. Any rents collected by
<br />Lender or the receiver shall be applied first to payment of the
<br />casts 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.
<br />Pace 3 of 5 HUD- 92143DT•1
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