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<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 />forecloture 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 insurance policies then in force shall pass to the
<br />purchaser or grantee.
<br />9. That as additional and collateral security for the payment
<br />of the note described, and all sums to become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />profits, revenues, royalties, rights and benefits accruing to the
<br />Borrower under any and all oil and gas leases on said premises,
<br />with m the right to receive and receipt for the same and apply
<br />then to said indebtedness as well before as after default in the
<br />i epilitions of this instrument, and the l render may demand, sue
<br />f: r and recover any such payments ::amt due and payable, but
<br />shall not be required so to do. This assignment is to terminate
<br />Wand become null and void upon relcaw,w of this instrument.
<br />10. That the Borrower will keep the L,L1!dings upon said
<br />premises in go.-*.4. repair. and neither commit nor permit waste
<br />upon said land, nor suffee the said premises to .bz tis+sf for any
<br />..unlawful purpose.
<br />;:1. That if the premises, or any part the:eo', ,rta condemned
<br />cinder the power of eminent domain, or a:4 €n -fcr a public
<br />use. the damages awarded, the proceeds for .. t.::.' :ng of, or
<br />it&. consideration for such acquisition, to the ext-ent of the full
<br />amiunt of indebtedness upon this instrument and the note
<br />which it is given to secure remaining unpaid, are hereby assigned
<br />by 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 />maturing installments of such indebtedness.
<br />12. The Borrower further agrees that should this ir;sewr`e'tt
<br />and the note secured hereby not be eligible for in _ran e • =rder
<br />the National Housing Act within eight r +:.r ohs f -o _ c = �'Z:e
<br />hereof (written statement of any office ,jf t ,c ^e-,s_ t4 gent of
<br />Naas ;_ az.,t Urban' Development or a r orized , ;c-t. of the
<br />w.� �" .:•i. 6?3ssing and Urban Development da -i. �s:abscquent
<br />eo the eie..t i^anths' time from the date of this instrument,
<br />declining to `;t.sure said not; and this _ .artgage, being deemed
<br />conclusive wctx•f of such indigibilityp, dare tender or holder of
<br />the note may, at its optioa, decla: a all. ium secured hereby
<br />immediately due and paya;Ka. Notwi;( -,vz ding tnc foregoing.
<br />this option may not be by the Lender cr t.he holder of
<br />the note when the ineligit" :t•r. Cor i!�su. ante under 1;L National
<br />Housing Act is due to the C e- 'er' faa'�_-e to remit the
<br />mortgage insurance pren!::w° to a•.e D.T.,artment of Housing and
<br />Urban Development.
<br />13. That if the Borro+�er fails to make any paymmif--a of money
<br />when the same become due. or faits to conform to and .cor..yl;•
<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 ar.tt
<br />payable, at the election of the Lender.
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<br />89- 101258
<br />Lender shall give notice to Borrower prior to acceleration.
<br />following Borrower's breach of any�.cgvnnant-or agreement in
<br />this instrument (but not prior to- art;sfeatign.under paragraph
<br />12 unless applicable law provides. Qihifl;; iTte notice shall
<br />specify. (a) the default; (b) the actigti- regt(it to cure the
<br />default; (c) a date, not. less than:30,duys.ftom the date the
<br />notice is given to Borrower, by whleh the default must be cured;
<br />and (d) that failure to cure the defouit•on-or before the date
<br />specified in the notice may result- in-accehtttition of the sums
<br />secured by this Wmitiment. and. sale of the Property. The notice
<br />shall further inform Borrower of the tights to- reinstate after
<br />acceleration and the right to bring q. court action to assert the
<br />non - existence of a default or any.othex defense- of Borrower to
<br />acceleration and sale. If the default =fs -tirf e n6d on or before
<br />the date specified in: the notice, Lender i't i1._; co on may require
<br />immediate payment in full of all sums serum this
<br />instrument without further demand and M4; - Lseke the power
<br />of sale and any other remedies permitted by as ojicable late_
<br />Lender shall be entitled to colfict Wl. expenses -,�7*ffcd in
<br />pursuing the remedies provided in this paragmp$: !3. including,
<br />but not limited to, reaeanuble attorneys' fees- and i psts of title
<br />evidence.
<br />["the power of sale is invoked. Truatcc 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 Iaw, Trustee shall give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee, without demand on Borrower. shall sell the Property at
<br />public auction to the highest bidder at the time and place and
<br />under the terms designated in the notice of sale in one or more
<br />parcels and in any order Trustee determines. Trustee may
<br />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
<br />sale.
<br />Upon receipt of payment of the price bid, Trustee shalt deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the
<br />proceeds of the sate in the following order: (a) to all expenses of
<br />the tale, including, Fin trot limited to, Trustee's fw.s as
<br />permitted by applic: bb.- law and reasonable atmineys' fees; (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. Lender (in person. by agent or by judicially
<br />appointed receiver) shall be entityd to enter upon, take
<br />possession of and manage the R*perty and to collect the rc»t=
<br />of the Property including those past due. Any rents collected ts?
<br />Lender or the receiver shall be applied first to payment of tk v
<br />costs of management of the Property and coilrxtkn of rents,
<br />including, but not llrai:ed to. receiver's fees, nmrnniums on
<br />receiver's bonds and reasonable attorneys' fees, and then to the
<br />sums secured by this instrument.
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