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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 Lender 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 transfer
<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. aad to any insurance policies then ,n force shall pass to
<br />the purchaser GrVazie -.
<br />9. That a�- ad- djAuaai marl coliat trial samrity for the payment of the
<br />note described, and aR sums-to become due under this instrument—'...
<br />the Borrower hereby assgns to the ::Eider all profits, revenues,
<br />royalties, rights and bets accruing to the Borrower under any and
<br />all oil and gas leases on std 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 not be required so to do. This assignment
<br />is to terminate and become null and void upon retease. of this
<br />instrument..
<br />10. That tite Borrower will keep the,buitdings upon saidptrm.i.a;!
<br />in good repair, and neither commit nor permit waste upon -%id.land ::
<br />nor suffer the said premises to be used for any unlawful purpose
<br />1. That if the premises, or any part thereof, be condemned und+x
<br />the power of eminent domain, or acquired for a public use, tb,:
<br />damages awarded, the proceeds for the taking of, or the
<br />consideration for such acquisition, to the extent of the full :t. +.naaru of
<br />indebtedness upon this instrument and the note which it ix);ntat :co
<br />secure remaining unpaid, are hereby assigned by the BmTow•er 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 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 any officer of the Department of Housing and
<br />Urban Development or authorized agent of the Secri,tary of Housing
<br />and Urban Development dated subsequent to the t�.Jm^ months time
<br />from the '.le of this instrument, declining. to ins;;,-: said note and
<br />this morq,,uga, being deemed corclusi,,e rx,; !' of such ineligibilil} t.
<br />the Lens. or holder ol'the note may. at its option, declare all sus ^.t-.
<br />secured ,veuny imn.edist. Ay due and payable. Notwithstanding th.
<br />foregoi, X. tliti option my not be exercised by the Lender or the
<br />holder of pen: note when the ineligibility for insurance under the
<br />National Act is due to the Lenders failure to remit tee
<br />mortgage �%T :t rance premium to the Department of Housing ants.`
<br />Urban Development.
<br />13. That if the Borrower fails to make any payments o` rn.ccci
<br />when tiie kite become due, or fails to conform to and comps.i
<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 once become due and payable, at the election of the
<br />Lender.
<br />[ender shall give entice to Borrower prior to acceleration
<br />foliowinhg. Borrowers 'breach of any covenant or agreement in this
<br />instrumenr (; utriat prior to acceleration under paragraph 12 unless
<br />apph aNj th ti provides otherwise). The notice shall specify: (a) the
<br />deli,JA -, -i w;t•the action required to cure the default; (ci a date, not less
<br />tha?. 4 ids tits from the date the notice is given to Borrower, by which
<br />the: � #Mi`must be cured; and (d) thai: failure to cure the default on
<br />or he4sm- the date specified in the'inatJce may result in acceleration
<br />of the nfrass secured: by this insirdimmt and Sale of the Property. The
<br />notice 4W-1 E rJii. titfbrin Borrower of the right to reinstate after
<br />acc_leq;h.* a and the right to bring a court action to assert the non -
<br />existmoma 4A a default or any other defense of Borrower to
<br />ara A aatifm and sale. If the default is not cured on or before the date
<br />spetiW in the notice, Lender at its option may require immediate
<br />payrrieht in full of all sums secured by this instrument without
<br />further demand and may invoke the power of File and any other
<br />remedies permitted by applicable law_ Lender Td;eil be entitled to
<br />collect all expenses incurred in pursuing the m=Jics provided in
<br />this paragraph 13, including, but not reasonable
<br />attorneys' fees and.ca+rsts of title evidence.
<br />If the power of"sale7i� invoked, Trustee shall :c,-ard a notice of
<br />deliull Ill each euurity ;n which any pan of the Property is located
<br />and �tiall'-trtail copies of such notice in the manner prescribed by
<br />applicable law to Borrower and to the other persons prescribed by
<br />applicable law. A te:r the time required by applicable law, Trustee
<br />shall give public nti ::ze 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 the notice of sale
<br />in one or more parse: }s and in any order Trustee determines. Trustee
<br />may postpone sale A` all or any parcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />sale. L,en"er or its designee may purchase the Property at any sale.
<br />Up<ar : eceipt of payment of the price bid, Tru;tee shall deliver to
<br />the purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustees deed :all be prima facie evidence of the truth of the
<br />statements made therein. Trustee '.tall apply the proceeds of the sale
<br />in the following order: (a) to al_ evfiwnses of the sale, including, but
<br />not limited to. Trusnce's fees ac permitted by applicable law and
<br />reasonable attorney;; ;lees; (b) to all sums secured by this Security
<br />Instrument; and t wcy excess to the person or persons legally
<br />entit'e -! to it.
<br />i 4• (�- wn, acceleration under paragraph 13 or abandonment of the
<br />Prokny. Lender fir, person, by agent or by judicially appointed
<br />receiver) sha7: t e % <<l :;led to enter upon, take possession of and
<br />manage th.: and to collect the rents of the Property
<br />inclurk tg tkabe Fa.,: due. Any ren;s collected by Lender or the
<br />receiv-, ::_all be applied first to 1, *, mmt of the costs of ntanag=ent
<br />of the Property and collection of rents, including, but not limited to.
<br />receiver's fees. prt.l:rrs on receiver's bonds and reasonable
<br />attorney's fees, and 1,',en to the sums secured by this instrument.
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