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L
<br />RE•RECORVED
<br />.100887
<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 imurance policies then in force shall pass to the
<br />purchas5e e.; grantee.
<br />9. ' bit 4_ ddditio=T1 �� collateral security for the payment
<br />of the siote &4cribed., =4 all sums to become due under this
<br />instrunxM !k: Borrower hereby assigns to the Lender all
<br />pro$ts, rerez,:ies. royalties. rights and benefits amrXmg to the
<br />Borrower 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 deft_lt 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 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 •f good repair; and neither commit nor permit waste
<br />upon Wd•Pad`; nor-suffer .the said premises to be used for any
<br />uftl a*w Fuipose•
<br />It. heat if the premises:, br any part thereof, bed 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 iuiii
<br />amount of indebtedness upon this instrument and the note
<br />,which it is given to secure remaining unpaid, are hereby assigned
<br />isy 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 />thaturing kmallments of such indebtedness.
<br />rZ. IMe Borrower further agrees that should this instruments
<br />.and the note secured hereby not be eligible for insurance under
<br />'the 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 note and this mortgage, being deemed
<br />conclusive proof of such ineligibility), the Lender or holder of
<br />the note may, at its'oVdi i, declare all sums secured hereby.,
<br />immediam4r dine aad parable. Notwithstanding the foregoingi .
<br />this opfioi - b2y{rot be.exercised by the Lender or the holdeeiof
<br />the note when the ineligibility for insurance under the National
<br />Housing Ad 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 />88-.i, 0
<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 cure the
<br />defaults (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 wt sums secured by this
<br />instrument without further demand and may itrieke are pow•el
<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 />cvlali:ilic.
<br />if the power of sale is invoked, Trustee 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 taw.
<br />Trustee, without demand on Borrower, shit sell the Property at
<br />public auction to the highest bidder at the tdhe and place and
<br />under the terms designated in the a6tax e€ sate in one or ncofe
<br />parcels and in any order Trustee der, rermi=. " to tnahlia
<br />postporm s.:i:. of- all -or ,.n; pt!-cel of - �.---r .., -
<br />announcement at the time and place of ahy 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 deceiver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima fade evidence of. the
<br />truth of env siatemcnts made therein. Trustee shall VA, t
<br />proceeds of the sale in the following order: (a) to all expenses• df
<br />the sale, including, but not limited to, Trustee's fees as
<br />permitted by applicable law and reasonable attorneys' fens; (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, Leader (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 Propemy including those past due. Any rents collected by
<br />Lender or the 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.
<br />Page 3 of 5 0.82143DT -1
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