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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender. who may make proof of loss if not 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 Leader instead of to the Borrower and the lender jointly, and
<br />the insurance proceeds, or any part thereof, may be applied by the
<br />Lender.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 tramfur
<br />of title to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby, all right. title and interest of the
<br />Borrower in and to any insurance policies then In force shall pass to
<br />the purchaser or grantee_
<br />4. That as additional and collateral security for the payment of the
<br />note described and all sums to become due under this instrument.
<br />the Borrower hereby assigns to the Lenckr all profits, revenues.
<br />royalties, rights and benefits accruing to the Borrower tinder any and
<br />all o0 and gas leases on said premises. with 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 />due and payable, but shall net be required so to do. This assignment
<br />is to terminate and become mill and void upon release of this
<br />instrument.
<br />10. That the BoTm er vPJ1 keep the buildings upon said premises
<br />in good repair, and neither commit nor permit waste upon said land.
<br />nor suffer the said premises 6o be used for any unlawful purpose.
<br />11. That if the premises. or any part theLLof, be condemned under
<br />the power of eminent dom2.irt, or acquire`f Tor a public use, the
<br />damages awarded the pru�xia3s for the taking of, or the
<br />consideration for such ao;;trisiiion, to the extent of t:hr FVj amount of
<br />indebtedness upon this ira;7ument and the note whim x 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 bk
<br />the latter on account 067 t&- ext maturing installments of such
<br />indebtedness.
<br />12. The Borrower further agrees that should this instrument 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 arp officer of the Department of Horsing and
<br />Urban Development or autyorized agent of the Secretar�• of Housing
<br />and Urban Devela•w=t: dated subsequent to the eight months' time
<br />from the date of tIzi3 (W- r:ument, declining to insure said note and
<br />this mortgage,'!ezg d6=ed conclusive proof of such ineligibility),
<br />the Lender or holder ortite note may, at its option. declare all sums
<br />secured hereby due and payable. Notwithstanding the
<br />foregoing, this option rra not be exercised by the Lender or the
<br />holder of the note wW:T tine ineligibility for insurance under the
<br />National Housing Aa is "We to the Lenders failure to remit the
<br />mortgage insurance pm r.j,lm 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 with
<br />any of ttte condtuons or agreements contameo m IRIS ulSlruMVM. w
<br />the note which it secures, then the entire principal sum load accrued
<br />intermit shall at once become due and payable. at the elxdion of the
<br />Lend&.
<br />l.endar shall give notice to Borrower prior to acceleration
<br />following Borrowei s breach of any covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicabla law provides otherwise). The notice shall specify: (a) the
<br />defautlt.(b) the action required to cure the default; (c-) a date. not less
<br />than 10.duys from the date the notice is given to Borrower, by which
<br />the dofttult must be cured; and (d) that failure to cure the default on
<br />or befure the date specified in the notice may result in acceleration
<br />of thu sums secured by this instrument and sate of the Property. The
<br />notice shall further inform Borrower of the tight to reinstate after
<br />accehirauon and the right to bring a court action to assert the non-
<br />existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or Wfore :the date
<br />specifiad.in the notice, Lender at its option may tegttite�immediate
<br />payment in full of all sums secured by this instrument without
<br />further, demand and may invoke the power of sale and.any other
<br />remedies permitted by applicable law. Lender shill.iie entitled to
<br />collect ;all expenses incurred in pursuing the remedies'provide-J in
<br />this pamgraph 13, including, but not limited to,.Teasonable
<br />attomeys fees and costs of title evidence.
<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 located
<br />and shalltmaillcopias of such notice in tte manner prescribed by
<br />applicable law to Borrower and to the other persons prescribed by-
<br />applicable law. After the time required by applicable law, Trance
<br />shall give public notice of sale to the persons and in the manner
<br />prescribed,by.applicable law. Truster without demand on DormeMer,
<br />shall sell the Property at public auction to the highest bidder gain:
<br />time and placa and under the terns designated in the notice Of SIG:
<br />in one or more parcels and in any order Trustee determines. Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement at the time and place of any previously schedu.'.ed
<br />sale. L.rrder or ita designee may purchase the Property at arty: We.
<br />Upon receipt of payment of the price bid. Ttutte shall defiler _o
<br />the purehaser Trustee's deed conveying the Property. The recitals in
<br />the Trustee's deed shall be prima facie evidence of the truth of the
<br />state, =,ts made therein. Trustee shalt: apply the proceeds of the sz:e
<br />it thrr'!WDwing order: (a) to all expenses of the sale, including. but:
<br />aw limited to, Trustee's fees as permitted by applicable law =i
<br />reasonable attornocvs' fees; (b) to all sums secured by this Se"fity
<br />Instrument; and (c) any excess to the person or persons Iegahy
<br />entitled to it.
<br />14. [;(Son acceleration under paragraph 13 or al~asi,�nnwrit (if the
<br />Property, Lender (in perwn. by agent or by j;adieially g;pcfawl
<br />receive-) shall be entitled to enter upon, take posses_.on of and
<br />manage an-. Property and to collect rite rena of t1x Property
<br />includi:c those past due. Any rents tarlfected by Lender or the
<br />receiver shall he applied first to payment of the costs of management
<br />of the Property and collection of rents, including-but not limited to,
<br />receiver's fees, premiums on receiver's bonds acid reasonable
<br />attorney's fees, and then to the sums secured by Ws instrument.
<br />Pane 3 of 5
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