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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender_ who may snake 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 and to any insurance polices then in force shall pass to
<br />the purchaser or grantee.
<br />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 hwthy assigns to the Lender all profits, revenues.
<br />royalties. righm a;*.d benefits accruing to the Borrower under any and
<br />all oil and gas leases on said pmMises, with the right to receive and
<br />receipt for the same and applly vihern to said indebtedness as well
<br />Ware as after default in ti�- o6ditions of ±.bis instrument, and the
<br />Lender may di=and. sue for and recover Eci such payments when
<br />due and payab but shall not be requir.dse to do. This assignment
<br />;s to tertmtna:•r and become null and void upon release of this
<br />�tamem.
<br />10. That the Borrower will keep the buiMings upon said premises
<br />in good repa5r.,• and neither commit nor perm.;: waste upon said land,
<br />nor suffer ft said premises to be used fo, szy unlawful purpose.
<br />11. That if the premises, cc z =3 part tkereof, be condemned under
<br />de power of eminent domain;, c,- ac;- -kl`.r� for a public use, the
<br />damages awarded, the proceeds for the w� ;7T�2 of, or the
<br />consideration far such acquisition, to the e-o�n of the full amount cif
<br />indebtedness upon this instrument and the note•which it is given to
<br />swim remaining unpaid, are hereby assigned by the M;--ower to tP.e
<br />Lender. and shall be paid forthwith to said Lender to Lv applied by
<br />the latter on a=ount of the next maturing iostaltments of such
<br />indebtedness.
<br />12. The Borrower further agrees that should this instrument and
<br />the note secured hereby not 1 :v eligible for insurance under the
<br />National Housing Act wi0i e:gttt mcm rs from the date hereof
<br />(written statement of any of:icer of the Drprtment of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Dcx4- -�pmem dated subsequent to the eight months' time
<br />from the date of this instrument, declining to insure said note and
<br />this mortgage, fseizg deemed conclusive proof of such ineligibility),
<br />the Lender ri, Nobler of the note may, at its option, declare all sum,
<br />secured ltercv,, rm.- nediatety due and payable. Notwithstanding the
<br />foregoing, this ..tarn may not be exercised by the Lender or the
<br />holder of the %Fac° u,ten GAP ineligibility for insurance under the
<br />National Houv,.�,4 Act is dins: r; the Lender's failure to remit the
<br />mortgage ins;;,,T11;e prezium r:o the Department of Housing and
<br />Urban Develmatmtert.
<br />13. Tf:atif the 4''or wer i~tils to make any payment:• d-mcney .
<br />when the same ixcame dun; or fails to conform to and cmvply with
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<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 />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicable.law provides otherwise). The notice shall specify: (a) the
<br />default; (by the action required to cure the default; (c) a date, not less
<br />than 30 days from the dwa the notice is given to Borrower, by which
<br />the default must be cure&and (d) that failure to cure the default on
<br />os before the date specified in the notice may result in acceleration
<br />cf the sums secured by this instrument and sale of the Property. The
<br />Mice shall further inform Borrower of;ik right to reinstate after
<br />v4xJeration and the right to bring a ca= action to assert the non-
<br />existence of a default or and., ether defense of Borro 'tr to
<br />acceleration and sale. if •tbe —utt is not cured on or before the date
<br />specified un 1b.- notice, Under at its c,-tan may require immediate
<br />payment zm , I of all sums secured by thIs instrument without
<br />further del "irid and may invoke the toover of sale and any other
<br />.remedies permitted by applicable law. Lender sWE be entitled to
<br />collect all expenses incurred in pursuing the reme& sprovided in
<br />this paragraph 13, including, but not limited to, rzable
<br />attorneys fees and costs of title evideax.
<br />If the power of sale is invoked. Trustee shall resorti a notice of
<br />default in each county sry ibich any part of the Prouty is located
<br />and shall mail copies ef.' notice in the manner prescribed by
<br />applicable taw to Borrower and to the other persons prescribed by
<br />applicaL -be Law. Aicv the time required by applicable law, Trustee
<br />shall gr:e o a?*t aarxe of sale to the persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />,fiall sell the Property at public auction to the highest bidder at the
<br />ae 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 designee may purchase the Property at any sale.
<br />Upon receipt of payment of the price bid. Trustee shall deliver to
<br />the purchaser Trustee's deed conveying :ir.e Property. The recitals at
<br />the Trustee's deed shall r..ma fact e->idcnce of N`te truth of the
<br />statements made therein. trn.:ee shall apply the pmcr eds of the sale
<br />in the following order. (ai to all expenses of the sale, including, but
<br />not limited to, Trustee's fees as pern cued by applicable law and
<br />reasonable attorneys' fees; (b) to ad sums secured by this Security
<br />Instrument; and (c) any excess to tlx pfT-4,on or persons legally
<br />entitled to it.
<br />14. Upon acceleration uMcr 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 collect the rents of the Property
<br />including those past due. ,f.ny rents collected by lender or the
<br />feua;iver shall be applied first to payment of the costs of management
<br />of the Property and collection of runts, including. but not limited to,
<br />receiver's fee;, premiums on receis Li's bonds and reasonable
<br />attorney's fees, and then lathe sums secured by this instrument.
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