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event of loss Borrower well give immediate notice by marl to the
<br />Lender , who may make proof of k ss if not made promptly by
<br />Borrower, and -jxb msurance mm )any concerned is hereby
<br />authavrd and directed to make paymem for Rich loss d=* to
<br />the Under =wad of to the Borrow er and the Leader jriintly, and
<br />the insurance p:oce &,, or may part the:eoE may be applied by the
<br />Leader at its option either to the reiactiou of the indebtedness
<br />hereby seemed or to tie restoration i or repair of the property
<br />damaged. In event of foreclosure o: this instrument or other transfer
<br />of title to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby. all riy;ht. tick and interest of the
<br />Borrower in and to any insurance policies them in force shall pass to
<br />the purchaser or grantee.
<br />9. TMt 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 Leader all profits, tevenrres,
<br />royalties, rights and benefits accruing to the Borrower tr .der any and
<br />all oil and gas leaves 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 :be 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 release of this
<br />instrument.
<br />10. That the Borrower Rill keep the btuidings upon said premises
<br />in good repair, and neither commit nor permt waste upon said land,
<br />nor suffer the said premises to be used fcr any unlawful purpose.
<br />11. That if the premises, or any part thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, 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 uutalimenv of such
<br />indebtedness.
<br />12. The Borrower further agrees that should this instrument and
<br />tie note secured hereby not be eligible for insurance under the
<br />Naticxual 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 Secretary of Housing
<br />and Urban Development dated subsequent to the eight months' time
<br />from the date of this instrument, declining to insure said note and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the lender or holder of the note may, at its option, declare all sums
<br />secured 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 Undei s failure to remit the
<br />mortgage insurance premium 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 />89-6. 102113
<br />any of the coaditioas cc agreements contained in this instrument, or
<br />the note which it segues, then the catire principal sum and accrued
<br />iyt shall at once bemoan due aced payable, at the election of the
<br />Lender.
<br />Leader shall give atice to Borrower prior to acceleration
<br />following Bocrowees breach of any covenant or agreement in this
<br />instrument (but not prior to aooderateon under paragraph 12 unkss
<br />applicable law provides otherwise)_ The nonce shall specify_ (a) the
<br />default; (b) the action required to cure the default; (c) a date, not ks
<br />than 30 days from the date the notice is given to Borrower. by which
<br />the default mast be sued; and (d) that failure to cure the default on
<br />or before the date specified in the notice may result in aocekratioo
<br />of the sums secured by this instrument and sale of the Property. The
<br />notice shad further inform Borrower of the right to reins'ate after
<br />acceleration and the right to bring a court action to assert the non -
<br />exisseace of a default or any other defense of Borrower to
<br />aoaleratioa and sale. If the default is not cured on or before toe date
<br />specified in the notice, Lender at its option may require immediate
<br />payment in full of all sums sawed by this instrumrent without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shad be entitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13. including, but awl limited to, rmsonable
<br />attorneys fees and costs of title evidence.
<br />If the power of sale is invoked, Trustee shad record a noticr of
<br />default in each county in which any part of the Property is Heated
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law to Borrower and to the other persons prscrimd 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 mariner
<br />prescribed by applicable law. Trustee. without demand on & irrower,
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and under the terns designated in the notice of sale
<br />in one or more parcels and in any order Trustee determines.\Trastee
<br />may postpone We of all or any parcel of the Property by pub is
<br />announcement at the time and place of any previously schedul
<br />sale. Lender or its designee may purchase the Property at any _
<br />Upon receipt of payment of the price bid, Trustee shall deliver to
<br />the purchaser Trustee's deed conveying th-- Property. 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 order. (a) to all expenses of the sale, including, but
<br />not limited to, Trustee's fns as permitted by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by this Security
<br />Instrument; and (c) any excess to the person or persons legally
<br />entitled to it.
<br />14. Upon acceleration under paragmph 13 or abandonment of the
<br />Property, Lender (in person, by agent or by judicially appointed
<br />receiver) shall be entitled to enter upon, take possession of and
<br />manage the Property and to tolled the rents of the Property
<br />including those past due_ Any rents collected by Lender or the
<br />receiver shall be applied first to payment of the cows of management
<br />of the Property and collection of rents, including, but riot limited to,
<br />receiver's fees, premiums on receivers bonds asd rem :=._..!t:
<br />attorney's fees, and then to the sums secured by this irstrumcnt.
<br />Rage 3 of 5 "' HUD- 92142DT -1
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