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<br />made shall be added to the principal sum otsin¢ on the abose 12. The Borrower further agrees that should this instrument and
<br />note, shall be secured hereb %. and shall bear interest at the rate set the note secured hereby not be eligible for insurance under the Na.
<br />forth in the said note. until paid. banal Housing Act within eight months from the date hereof
<br />?. That the Borrower hereby assigns, transfers and sets oser to
<br />the Lender, to be applied toward the payment of the note and all
<br />sums secured hereby in case of a default in the performance of
<br />any of the terms and conditions of this instrument or the said
<br />note, all the rents, revenues and income to be deri%ed from the
<br />said premises during such time as the indebtedne:s shall remain
<br />unpaid, and the lender shall have power to appoint any agent or
<br />agents it may desire for the purpose of repairing said premises and
<br />of renting the same and collecting the rents, revenues and income,
<br />and it may pay out of said incomes all expenses of repairing said
<br />premises and necessary commissions and expenses incurred in rent-
<br />ing and managing the same and of collecting rentals therefrom;
<br />the Mann. ,"paining, if any, to be'applied toward the discharge
<br />of said indebtedness.
<br />S. That the Bo:,ov-er will keep the improsements now existing
<br />or hereafter erected cT: :he property, insured as may he required
<br />from tL,•te to time �y -fie Lender against loss by fire and ocher
<br />hazards, casualties contingencies in such amounts z^_ .:cr such
<br />Periods :4, ma} be'e ;uired by the Lender and gill pay prompth•,
<br />when Ji ;e, any 1~-ery -ms on such insurance p -ot ision for payment
<br />of which has not Been made hereinbefore. All insurance shall be
<br />carried in companies approved by the Lender and the policies and
<br />renewals thereof shall be held by the Lender and have attached
<br />thereto loss payable clauses in favor of and in form acceptable to
<br />the Lender. In event of lobs Borrower will vise .-mmediate notice
<br />by mail to the Lender, who may make proof of loss if not made
<br />promptly by Borrcu- r, and each insurance :c):rcarL1 concerned is
<br />hereb} aphorized and .direc:ted to make payr:-_e;tt for s_ ,oss
<br />direr. -. -he Lender instead rf :., :f ±e Burr;.tr and :he Lender
<br />jointly, .J the insurance pro.ee ;-. or 2 'a:' thereof, may be
<br />applied by the Lender at its option richer : ^e s reduction of the
<br />indebtedness hereby secured of to the restoratn or repair of the
<br />Property damaged. In event of fcreclosure of this instrument or
<br />other transfer of title to the mt:r fzeed property in ex:.1f,"".�ment
<br />of the indebtedness secured hereby, all right, title and irrer:;st of
<br />the Borrower in and to any insurance policies :-,2- `n force shalt'
<br />pass to the purchase[ or grantee.
<br />9. That as additional and collateral security for the payment of
<br />the nett, described, and all sums to become due under this. instru-
<br />ment, .'.te Borrower hereby assigns to the Lender all profits,
<br />revenues, royalties. - : ,2hts and benefits accruing to file BUrrowCr
<br />under any and all 4 >:: and gas leases on said premises, with the
<br />right to receive and r.ceipt for the same and apply them to sail
<br />indebtedness as well before as after default in the conditions of
<br />this instrument, and the Lender *.;at deer r., sue for and recover
<br />any such payments when due anc pa, a; . ru Shall not be re-
<br />quired so to do. This assignment is to tera,ni ::.and become null
<br />and void upon release of this instrument.
<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neither commit nor permit waste upon said
<br />land, nor suffer the said premise.. to be used fcr a
<br />Purpose. ny unlawful
<br />11. That if the premises, or any part therec'f. be condemned
<br />under the posscr of eminent domain, or acquired for a public use,
<br />the damages awarded, the proceeds (cr the tah.iag of, or the con.
<br />sideration for such acquisition, to the extent of the full amount of
<br />indebtedness upon this instrument and the no %, •thich it is given to
<br />secure remaining unpaid, are hereby assigned I— :he Borrower to
<br />the Lender, and shall be paid forthwith to said Lender to be ap-
<br />plied tr the latter on account of the next maturing installments of
<br />s:uh i:*J,:vtedness.
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<br />(wraten statement of any officer of the Department of Housing
<br />and Urban Development or authorized agent of the Secretary of
<br />Housing and Urban Development dated subsequent to the eight
<br />months' time from the date of this instrument, declining to insure
<br />said note and this mortgage, being deemed conclusive proof of
<br />such ineligibility), the Lender or holder of the note may, at its op-
<br />tion, declare all sums secured hereby immediately due and payable.
<br />Notwithstanding the foregoing, this option may not be exercised
<br />by the Lender or the holder of the note sshen the ineligibility for
<br />insurance under the National Housing Act is due to the Lender's
<br />failure to remit the mortgage insurance premium to the Depart-
<br />ment of Housing and'Urban Deveopment.
<br />13. That if the Borrower faits to make any payments of money
<br />when the same become due, ar fails to conform to and comply
<br />with any of the conditions si: agreements contained in this instru-
<br />ment, or the note which it .,=ures, then the entire principal sum
<br />and accrued interest shall at once become due and payable, at the
<br />election of the TLe"-d:r.
<br />Lender shall 6;r a. ao:ic+; .0 Borrower prior to acceleration
<br />following Borrower's breath -of any covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12
<br />unless applicable law provides otherwise). The notice shall specify:
<br />(a) the default; (b) the action required to cure the default; (c) a
<br />date, not less than 30 days from the date the notice is given to
<br />Bor Tower, by which the defy tilt- must be cured; and (d) that faiI._re
<br />to cure the default on or befoi a the date specified in the nonce
<br />may wn result in acceleration of the sums secured by this ins tnert
<br />and sale of the Property. The notice shagfi,:rther inform Borrower
<br />of the right to -eirstate after acceleration and the right to bring a
<br />court action to zbsert the non - existence of a default or any other
<br />defense of Borrower to accele -on and sale. If the default is not
<br />cured on or befcr a the date s_re ;ified in the notice. Lender at its
<br />option may immediate payment in full of all sums secured
<br />by this instrurr_�--,r s.?thout fc:Trer demand and may invoke the
<br />power of sale aF :d. wny other rer_.edies permitted by applicable law.
<br />Lender shall be e::: ;led to all expenses incurred in pursuing
<br />the n-"edies pro,'Jid in this, — aragraph 13, including, but not
<br />litr;;v9 to, reason--.1--le attorneys' 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 pan 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 precribed 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 manner
<br />prescribed by applicable law. Trustee, without demand on Bor-
<br />rower, shall sell the Property at public auction to the highest bid-
<br />der the time and place and under the terms designated in the
<br />ror,,uz of sale in one or met.: parcels and in any order Trustee
<br />de :ermines. Trustee may postpone sale of all or any parcel of the
<br />Property by public announcement at the tinte and place of any
<br />pW.;01ysly scheduled sale. Lender or its designee may purchase the
<br />Pr, ;l%rt, at any sale.
<br />(-PNI -ece ,r of payment of the price bid, Trustee shalt i-eliver
<br />to 11%, Trustee's deed conveying the Property. The
<br />recitals •n deed shall be prima facie evidence of the
<br />truth (a tit. a•if,,t;:ents made therein. Trustee shall apply the pro-
<br />ceeds of the sale in the following order: (a) to all expenses of the
<br />sale, including, but not limited ?o, Trustee's fees :,s permitted by
<br />applicable law and reasonable attorneys' fees; (bf to all sums
<br />secured by this Security Instrument; and (o ar,y '!xcess to the per-
<br />son or persons legally entitled to it.
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