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ag-� 102140
<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 />authonded a:„ diref ---4 to .make payment for such loss directly to
<br />the Lento -r 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 th% property
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of tick to the mortgaged property in extinguishment of the
<br />indebtedns -s secured hereby, all right, title and interest of the
<br />Borrower in and to any insurance policies then in fora shall pus to
<br />the purchaser or grantee_
<br />9. That as additional and collateral security for the payment of the
<br />note described, and all surns to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits, revenues,
<br />royalties. rights and bone: s accruing to the Borrower under any and
<br />all oil and gas leases on said premiers, 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 ;his insunmetiL and the
<br />Lr rf -r may demand sue for and rover any such payments when
<br />due and payable, but shall not be requireci so to do. This assignment
<br />is to terminate and become null and void upon release of this
<br />instrument
<br />10. That the 3orrower will keep the buildings upon said premises
<br />in good repair, and neither comrnit nor permit wart upon said land,
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />11. That if the premises, or any p9rt thereof, be con& -mned under
<br />the power of eminent domain, or acquired lot a public use, the
<br />damages awarded, the proceeds fcr 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 forthw [h 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 />Na';=! Hou lag Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing and
<br />!'iban 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, tying deemed conclusive proof of such ineligibilitv),
<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 Lendcr's failure to remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<br />13. That if the Eorrowcr faits to make any payments of money
<br />when the same become due, or fails to conform to and comply with
<br />any of the conditions or agreemetas contained in this itauument. or
<br />the am which it secures, then the entire principal sum and accrued
<br />into- shall at once become due and payable, at the election of the
<br />Lender.
<br />Lender shall give notice to Borrower prior to accelleratitor
<br />following Borrower's bread, of any covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides othery ise). The notice shall specify: (at the
<br />default; (b) the action required to cure the 3efauit; (c) a date, not less
<br />than 30 days from the date the notice is given to Borrower. by winch
<br />the default must be cured; and !d) that failure to cure the default en
<br />or before the date specified in Lne notice may result in accelerattor.
<br />of the sums secured by this instrument and sale of the Property. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleration and the right to brine a court action to assert the non-
<br />existence of a default or nay other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before the date
<br />specified in the notice. Lender at its option may require 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. Leader stall be entitled to
<br />collect all expenses incurred in pursuing the r_ma:ies provided in
<br />this paragraph 13, including, but not limited to, reasonable
<br />attorneys' fe,s 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 shall mail copies of such notice in the 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. Trust"
<br />shall give public notice 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 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 scheduled
<br />sale. Lender or its desigryee may purchase the Property at any sale.
<br />Upon receipt of payment of the price bid. Trust, shall deliver to
<br />the ourchaser Trustees deed conveying the Property. The recitals in
<br />the Trustees deed shall he prima facie evidence of the truth of the
<br />statements made therein. Trustee shall apply the proceeds of the sale
<br />in the . oolowing order. (a) to all expenses of the sale, including, but
<br />tot limited to. Trustee's fees u permitted by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by this Security
<br />Instrument; and Ica any excess to the person or persons legally
<br />.ntitle:f to it.
<br />14. Upon acceleration under paragraph 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 coll= :Its Mnu 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 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 and reasonable
<br />attorney's fees, and then to the sums secured by this instrument
<br />Page 3 of 5 HUD- 92143DT -1
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