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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, w)Wmsy make proof of Ian if cat 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 Burrower and the Lender jointly, and
<br />the insurance proceeds, or any past thereof, may be applied by the
<br />Lender at its option either fxf d*- mquetion of the indebtedness
<br />hereby secured or rn the rqAarviro: ri repair of the property
<br />damaged. In event c. Cerra : + `14�s instrument or other transfer
<br />of tick to the moriga8e L =.fit: i, extinguishment of the
<br />indebtedness secured h etieL� ,4.1 r{ li, title and interest of the
<br />Borrower in ad to any initmw� policies then in force shall pass to
<br />the purchaser or grantee.
<br />9. That as adddoval and eclZaferal security for the p ay-=t of the
<br />notedescnbed, and all sums to become due v.�wee this im9rar=t.
<br />the.l3r,=wet Itert;Uy assigns tc tie- Leader a;v:.pm-Lts, reveones
<br />rotabrrx.r*3is Md benefits accruing to the fewer under any and
<br />rxey f;;s tat e. and apply them to said indebtedness as well
<br />bebv -, default in the conditions of this instrument, and the
<br />LewhrL i;ky demand sue for and recover any such payments when
<br />due'aa& payableV t-,trtshall not br required so to do. This assignment
<br />is to terminate =t become null and void upon release of this
<br />instrument.
<br />10. That the Borrower will kmp the buildings upon said premises
<br />in good repair, and neither commit ror permit waste upon said land.
<br />nor suffer the said prr:tnt ices to 1, -rsed for sny unlawful purpose.
<br />11. That if the pp- MIses, or any part thereof, be condemned under
<br />the power of eminent domain..nr 2cquired for a public use, the
<br />damages awarded, the proceat fist the taking of, or the
<br />consideration for such acquisitica, 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 Harrower to the
<br />Lender. and shall be paid forthwith to said Lender to he applied by
<br />the latter on account of the next. maturing installments of such
<br />indebtedness.
<br />12. The Borrower further agrees that should this in:trumcnt 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 />Urtran Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eight months time
<br />from the date of thhi ; instrument, declining to insure said note and
<br />W& mortgage, Won deemed conclusive proof of such ineligibility).
<br />the Leader or ladder of the nog: may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not be exercised by the tender or the
<br />holder of the note when the ineligibility for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />nwgtge insurance premium to the Department of Housing and
<br />Urbao•Development.
<br />13. That if the Borrower fails to make any payments of money
<br />when the same become due, or fails to con form to and comply with
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<br />any of the conditions cr agree nents contained in this instrument. or
<br />the note which it secures, thxu the entire principal sum and accrued
<br />interest shall at once Dome due and payable. at the election of the
<br />Lender.
<br />Lender shall give notice u3 Borrower prior to acceleration .
<br />following Borrower's breach ofany 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 curry the default; (c) a, date. not less
<br />than 30 days from the date the notice jr, gitten to Borrower, by whig*..
<br />the default must be cured; and (d) that failure to cute the default ej. `..
<br />or before the date specified in the notice may result in.a0yieratiort
<br />of the sums secured by this instrument and sale of the btprty. Thee
<br />notice shall further inform Borrower of the right to cei after
<br />acceleration. arm the right to bring a court ad -.W -to assert the non
<br />existence of a rl J%wit or any other dder,se, ,,)h8zr.•orsi to
<br />*Clemtion anilsale. ffd=default is not':a ee :z -fit tore the date
<br />apecilied in toe notice, i a ss at its opt'MV .�,,.� rebus: i,'t; mediate
<br />payment in full of all surtmar =red bycd; stun -umbel ',iiout
<br />further demand'and may invoke the pciqt safe and any other
<br />remedies permitted by applicaVe law. f enter shall be entitled to
<br />collect all expenses incurred .ii pursuing the remedies provided in
<br />this paragraph 13, including, Matt not limited to, reasonable
<br />attorneys' fees and costs cF. WEe evidence.
<br />If the pewit [sale is iavoked. Trustee shall record a notice of
<br />default in each tx:unty i.-t tctr:.ch any pan of the Property is icwMted, .
<br />and -shall mail copies. of suctr i otice in the manner presmbe4 U;,
<br />applicable law to Borrower and to the other persons prescnbedJo}
<br />applicable law. After the time required by applicable law, Trus=e
<br />shall give public notice of sale to the persons and in the manner .. .
<br />prescribed by applicable law. Trustee, without demand on Borroawa.
<br />sball sell the Property at public auction to the highest i3iki at the
<br />time and place and under the terms designated in the tau sae. s.
<br />in one or more parcels and in any order Trustee determirtes. Tnrzx
<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 safe.
<br />Upon receipt of payment of the price bid Trustee strait deliver to
<br />the purchaser Trustee's deed conveying the Prop:rty.Thc recitals in
<br />the Trustee's dad shall be prima facie 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, Trustee's fees as permitted by applicable law and
<br />reasonable attorneys' 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'ilse
<br />Property, !.ender (in person. by agent or by judicially 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 thesis past due. Any rents collected by Lender or the
<br />receiver shall `e applied fir., to payment of the costs of franagement
<br />of the Property and colleen +.m of rents, including, but nutlimited to.
<br />receiver's `ems. premiums on receiver's bonds and reasonable
<br />attorney's tee;;, and then to the sums seatred by this instrument.
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