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<br />event of loss Borrower will give immediate notice by mail to the
<br />leader. who may make proof of loss if not made, promptly by
<br />Borrower. and each iaturaace company oancemed is hereby
<br />authorimd attd directed to make payment for such loss directly to
<br />the Lender instead of to the Borrower and the lender jointly, and
<br />the uuuranoe proceeds, or any part thereof, may be applied by the
<br />Leader 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 cf the
<br />indebtedness secured hereby, all right, title and iatesr A cf.the
<br />Borrower in and to any insurance policies then in f-.= shall pas. to
<br />the purchase or grantee.
<br />9. That asadditional and collateral security for at -p ft
<br />note described, and an sums to become due under 0 m.
<br />the Borrower &achy assigns to the Lender all pmt;;
<br />royalties. cgJrts and benefits accruing to the BorroA�.,,i�&-"rA' ag
<br />all oil and gee, leases on said premises. with the right c:� zaitie tsad
<br />receipt for ft saran, and apply thein to said indebtaL--s�n; well
<br />before as after default in the conditions of this instrucrect, 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 do. This assignment
<br />is to terminate and become null and void upon release of this
<br />instrument.
<br />10. That the Borrower will keep the buildings upon said premists
<br />0 good repair, and neither commit nor permit waste upon said lant
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />11. That if the premises, or any part thereof, be condemned under
<br />tlae power of eminent domain, or acquired for a public rue, the
<br />damages awarded the proceeds for the taking 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 installments of such
<br />indebtedness.
<br />12. The Betr3wer further agrees that sltnuld this instrument and
<br />(Ile note secured hereby not be eligible fez insurance under the
<br />National Housing Act within eight months from the drte hereof
<br />(written statement of any officer of the Department d Dousing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban IL-,elopment dated subsequent to the eight months' time
<br />from the t.Vta( this instrument, declining to insure said note and
<br />)iris mciryage, being deemed conclusive proof of such ineligibility),
<br />Ikea Lender or holder of the note may, at its option, declare all sums
<br />uxured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not be exercised by the Lender 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 rmttit the
<br />mortgage insurance prew.um to the Department of lfoining and
<br />>ilifsan Development.
<br />13. That if the Borrower falls to make any payments of money
<br />when the same brcome due, or fails to conform to and comply with
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<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 ogee become due and payable, at the election of the
<br />tender.
<br />Leader 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 />than 30 days from the date tfte.a-.vw' -ji given to Borrower, by which
<br />the default must be cum a4,?;l: :fit :sat failure tar. acre the default on
<br />or before the date s is the notice may result in acceleration
<br />of the sums secured 4 tf instalment and sale of the Property The
<br />notice s, 1 further ir�t, Borrovmr of the right to reinstate 4&r.
<br />acceleration and the r, s to b'rwg a court action to assert the nco+
<br />existence of a dda"; or a.F 'j;$2ft, ddense of lkrmwer to
<br />acceleration and sat it tP¢e . i is not Q= i co,or before the date
<br />specified in the notice, lender a7.1Cc n?n� Caro
<br />payment in full of all sums secured isgr diL�, iostrriment without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Leader shah be entitled to
<br />collect all expenses incurred in pursuing the rem lam provided in
<br />this paragraph 13, inching, but not limited ta.•r.onable
<br />attorneys' fees and cash of title evidence.
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in each courtra. 41 which any part of the Prspeny is located
<br />and shall mail copies (A such notice in the manner prescribed by
<br />applicable law to Borrrwer and to the other 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 />prescribed 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 [he notice of sale
<br />in one or more parcels and in any order Trustee determines. Tristee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement ar the lime and place of any previously scheduled
<br />sale. Lender q7 a'-v d igtte+ may purchase the Prrcpeny at any sale.
<br />Upon recn j;t oil ga ment of the price bid. Trustee shall deliver to
<br />the purrita-ves Trustee's deed conveying the Properly. The recitals in
<br />the Trustee's deed 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 crier. (4) to all expenses of the sale, including, but
<br />not limited te. Ssjare s (r:rs as permitted by applicable law and
<br />reasonableajT.arseys' 4M. 0) to all sums secured by this Security
<br />Instro'10M.: add (ci any citrus to tfte person or persons legally
<br />entitird tq•u:
<br />14. U12011 ucceleratioa under paragraph 13 or abandonment of the
<br />Property; •[eider (in person, by agent or by judicially appointed
<br />receiver) slixfl be entitled to enter upon, take possession of and
<br />manage the Preperty and to collect tite rents of the Property
<br />including those past due.. Any rents collected by Lender or the
<br />receiver shall be.appliuf first to payment of the costs of management
<br />of the Property and wllwii n of rents, including, but not limited to.
<br />receiver's fens, premium on receiver's bonds and reasonable
<br />attomey's fees. and then to the sums secured by this instrument.
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