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<br />event of loss Borrower wi give immedim, notice by trail to the
<br />Lender, who may make proof of losx if net made promptly by
<br />Borrower, and each insurance compny 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 proceeds, or.any :part thereof. tray be applied by the
<br />Lender at its option eit�cuto the reduction of the indebtedness
<br />hereby secured or to the rratoritian or repair of the property
<br />damaged in event of: foreclosure of this instrument or other transfer
<br />of title to the moriM.cd property in extinguishment of the
<br />indebtedness swiredd hereby; all tight, title and interest of the
<br />Borrower i ^. .acrd to any insurance policies then in force shall pass to
<br />the gurch4stu -& grantee.
<br />3 -'ftu asodAtiond and'collateral security for the payment of the
<br />ox described, and all sums to become d--: under this instrument,
<br />to Borrower hereby assigns to the Lev4x all profits, revenues,
<br />btyalties, rights and bene5ts azrama :tom zh: Borrower under any and
<br />all oil and gas leases on said premises; vaab the right to receive and
<br />receipt for the same and apply them to-said indebtedness as well
<br />before as after default in the conditions of this instrument, and the
<br />Lender may demand, sue for and recover any such payments when
<br />du= and payable, but shall not he 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 premises
<br />in good repair, and'neithes commit nor permit waste upon said land,
<br />nor suffer the said pr= i es rro be used for any unlawnuTi purpose.
<br />11. That if the pr ernies, ar-any part thereof, be condemned under
<br />the power of exnireut doin2in, or acquired for a public use, the
<br />damages award-4 dw proceeds for the taking of, or the
<br />consideration for such acquisition, to the extent of th -: frill amount of
<br />indebtedness upon this instrument and the note vv-..h rr is given to
<br />secure remain--'t3 unpaid,, are hereby assigned by the Borrower to the
<br />Lender, and shalt be paid forthwith to said L-mier to be applied by
<br />the latter on avwunt of -the next maturir t insiallmer-ts of such
<br />indebtedness.
<br />12. The Borrower (=ber agrees lha" :Jhould this instrument and
<br />the note secured hereby not be eligibl: Tor, insurance under the
<br />National Housing Act a-itbin eight months from the date hereof
<br />(written statement of am Offincer of the 1hpartment of Housing and
<br />Urban Development or authorized agent of the Secr u t of Housing
<br />and Urban Development dated subsequent to the eight, rnonth a time
<br />from the dart of this instrument, declining to insure said note and
<br />this mortg� being deemedconclusive proof of such ineligibility)..
<br />the Lender or holder of The note may. at its option. de-;ere all sums
<br />secured hereby immediately due and payable. Notwitltutnding 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 remit the
<br />mortgage im»'ance premium to the Department of W.ousing and
<br />Urban Development.
<br />13. Mut. if the Borrower fails to make any payments of money
<br />when de same become due. or fails to conform to and comply with
<br />89. 101144
<br />any of the conditions or agreements contained in this instrument, er
<br />the note which it secures, ther= the entire principal sum and accrued
<br />interest shall at once become due and payable. at the election cf tba
<br />Lender.
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrowers 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 the notice is given to Borrower, by which
<br />the default must be cured; and (d) that failure to cure the default on
<br />or before the date specified in the notice may result in acceleration
<br />of the sums secured by this instrument and sale of the Property. The
<br />notice shall further Mio nr Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action to assert the non -
<br />existet?ce of a default or any other defense of Borrower to
<br />sxrv& f, n and sale. If the default �c not cured on or before the date
<br />spECQ *-e6 : the notice, Lender at its option may require immediate
<br />pz. sne�4 i �: full of a'I _,.t secured by this instrument without
<br />C=s 'Imand and �y invoke the power of sale and any other
<br />inr-4 ra ermitted i v.zpplicable law. Lender shall be entitled to
<br />rat.: ,ali expenses incurred in pumiking the remedies provided in,
<br />ts'5.r sty:{ mph 13. including, but rst.Ctmited to, reasonable
<br />attorneys' fees and costs of title evi&noc.
<br />If the power of sale is invoked, Trustee shall record a not-ice of
<br />default in each county in which any part of the Property is lrcat&
<br />and shaft w.0 copies of such notices irs the manner prescribed by
<br />appli6_13'_A raw to Borrower and to dw ether persons prescribed by
<br />applicalt% law. After rf;Te time required by applicable law. Trusties
<br />shall give public notic: cl- sale to the persons and in the manner
<br />prescribed by applicable law. Trustee. without demand on. R-ori wr e:
<br />shall soil throe Property at public aucsi�m to the highest bidder ar. trio
<br />time and Race and under the terms &!signaled in the notice of salt.,
<br />in one or more parcels and in any Trustee determines.. Trunue
<br />may postpone sale of all or any pre &4 cf the Pt,operry by public
<br />announcement at the time and Flax iafaay previously schedult4
<br />sale. Lender or its designee may pinditse the Property at any sale,
<br />Upon rv.eipt of payment of the pruaebid. Trustee shalGtleti IX. ty .
<br />the purchaser Trustees deW conveying Ole Property, Thu recitals in
<br />the Trustee's deed shall be prima We evidence of the trith of the
<br />statements made therein. Trustee diali apply the proceeds of the sale
<br />in the following order. (a) to all color -r)ses of flee safe, including. tat
<br />not limited to. Trustee's fees as permitted by applicablu law ard, .
<br />reasonable attorneys' fees; (b) to all sums secured b!xthis Secur:;y
<br />Instrument; and (c) any excess to the person or pemons legally
<br />entitles( to it.
<br />14. Upon acceleration under paragraph, 13 or abandonment. of the
<br />Property, L ender (in person. by agent' dr 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 those past due. Any rents collected by Lender or the
<br />receiver shall be applied first to ray ment of the costs of manag -.mv -3
<br />of the Property and collection of rent , including, but not limited to.
<br />receivers fees, pmmiums nn• roA -,ttls bonds and reasonable
<br />attorney's fees, and then to,ihe: mMs secured by this instrument.
<br />Paqe 3 of 5
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