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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of loss if not made promptly by
<br />Borrower, and each insurance company concerned is hereby
<br />authorized and directed to make payment for such loss directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceed% or any part thereof, may be applied by the
<br />Lender at its option either to the reduction of the indebtedness
<br />hereby secured or to the restoration or repair of the property
<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 fora shall pass to
<br />the purchaser or grantee.
<br />9. That as additional and collateral security for the payment cif the
<br />note described, and all sums to become due under this itstrum w2,
<br />the Borrower hereby assigns to the Lender all pwdt_ -� revenues,
<br />royalties, rights and benefits accruing to the Be mover under =y and
<br />all oil, and gas leases on said premises, with the e4ht to. receive and
<br />rocz-ipt for the swi . and apply them to wiN imdtbtcdnCs3 as well
<br />before as after default in the conditions of this imsteament, 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 day. This assignment
<br />is to terminate and become null and void upon release of this
<br />instrtime111.
<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neither commit nor permit wa-Ae upon said land,
<br />not suffer the said premises to be used for any unlawful purpcst
<br />11. That if the premises, or any part thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damalc awarded; the proceeds for the taunt of or the
<br />consideration for such acquisition. to the extent of the full amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the 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 instaEftnents of such
<br />indebterdness.
<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 H'ausing
<br />sad Urban Development dated subsequent to the eight moafits'.time
<br />from the date of this instrument, declining to insure said a= acid
<br />this mortgage, being deemed conclusive proof of si to incU gRadity),
<br />the Lender or holder of the note may, at its opriartT ¢elarc Am sums
<br />secured hereby immediately due and payable. Nomthstanding.the
<br />foregoing, this option may not be exercised by ft Lender or the
<br />holder of the note when the ineligibility for insurance undo the
<br />National Housing Act is due to the Lender's fe ure 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 with
<br />F
<br />89--± 100501
<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 due 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 />Rhea: 30 days from the date the notice is given to Borrower, by which
<br />the default must be cured; and (d) that failure to cure the &Fault on
<br />or before the date specified in the notice may result in =ditmtion
<br />of the sums secured try this instrument and sate of ae lFro# ty. The
<br />notice shall further inform Borrower of the r*ht: to reinstate after
<br />&=Ieration and the right to brkS a court action to assert the non-
<br />existence of a default or any other defense of Borrower to
<br />acceleration and sale.. If the d,-*Wt is not ceased: ow, or before the date
<br />specified in the notes Lender at its option rind, ingpare immediate
<br />payment in full of aU sutras sccurcd by this instrment without
<br />further demand and may invoke the power & sale and any other
<br />remedies permitted by applicable law. Lender shall be erid.02d to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but not limited: tar, reasonable
<br />attorneys' fees and costs of title evidence.
<br />If the power of sale is invoked. Trustee shall record a notice of
<br />default in each county in which any pan of the Property is located
<br />and shall mail copies of such aerate in the manner prescribed by
<br />applicable law to Borrower and to the ether persons prescribed by
<br />applicable law. After the time required by applicable law, Trustee
<br />shall give public notice of sale to the persons and in the manner
<br />MMSC bed by applicable law. Trustee- 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 previously 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 deliver to
<br />the purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustees tied shall be prima fade 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 the sale, including, but
<br />not limited to, Trine's fees as permitted by applicable law and
<br />reasonable attomeys' fees; (b) to all sums secured by this Security
<br />Instrument; and (c) any excess to the person or persons legally
<br />entitled to it.
<br />14. Upon acceleration under paragraph 13 or abandonment of the
<br />Properly, Lender (in person. by agent or by juiiicially appointed
<br />receiver) shall be entitled to enter upon, take possession of and
<br />manage the Property and to collect the rents of the Property.
<br />including those past due. Any rents collected by fender or the
<br />receiver shall-be applied first to payment of the costs of management
<br />of the Property and collection of renm including, but not limited to.
<br />receiver's fem premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
<br />Page 3 of 5 HUD- 92143OT -1
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