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89--- 1425 7 7
<br />made shall be added to tiro prinnpal sum owing on the abov,:
<br />note, shall be secured hereby, aatd stall bear interest at the rate set
<br />forth in the said note, until paid.
<br />7. That the Borrower hereby a- -:gns, transfers and sets ever 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 cf this instrument or the said
<br />r,o[e. all the rents, revenues and income to be derived from the
<br />sayl premises during such time as the indebtedness shall remain
<br />unp: id, and the Lender shall have poster to appoint any agent or
<br />agent. it may desire for the purpose of repairing said premises and
<br />of renting the same ind collecting the rents, revenues and income,
<br />and it sniy pay out of said iucomcs all expenses of repairing said
<br />premises Lnd necessary commissions ana expcs•es incurred ill rent-
<br />ing and managing the same and of collecting rental, therefrom;
<br />the balance t- maining, if arty, to be applied toward the discharge
<br />of said indebtedness.
<br />H. I hat the Borrower will keep the impro%ements now existing
<br />or hereafter erected on the property, insured as may be required
<br />from time to erne by the Lender against loss by fire and other
<br />harards, casuahies and contingencies in such amounts and for such
<br />periods as may be required by the Lender and will pay promptly,
<br />s%hcn due, any premiums on such insurance provision for payment
<br />of which has not been made hereinbefore. Ali insurance shall be
<br />carried in companies approved by the Lender and the policies and
<br />reric.%ais thereof shall be held by the i ender and have attached
<br />thereto loss payable clauses in fa%or of and in form acceptable to
<br />rho Lender. In cent of loss Borro% %cr will ci%c immediate notice
<br />by mail to the Lcndcr, who mry make proof of loss if not made
<br />promptry by Borrower, and each insurance company concerned is
<br />hereb% awhorued and directed to make paymear for such loss
<br />dnectly to cure Lender instead of to the Borro%%cr and the Lender
<br />jointh, and the insurance proceeds, or any part tf:ereof, may be
<br />applied by the Lender at its Option either to the reduction of the
<br />1ndcbtcJnes•, lwrchy secured or to the restoration or repair of the
<br />property damaged. ht e%cnt of foreclosure of this instrument or
<br />other t,.;?1Acr of title to the mortcaccd property in c%tinguishntent
<br />of the inJei t;dricss secured hcreby. all right, title and interest of
<br />Cie Rorroster in and to any insurance policies then in force shall
<br />'?ass to the puthaser or grantee.
<br />9. That a% additional and collateral security for the payment of
<br />the note described, anti ail sums to become duc under this instru-
<br />ment, the Bornmer hcreby assigns to the Lender all profits,
<br />rescnues, royalties, rights and N-11C its accruing to the Borrower
<br />under any and all oil and eas leases on said premises. with the
<br />'1011 to rc•cci%c and receipt for the santc and apph them to said
<br />lndcblednos as well befotc as after default in the cunditions of
<br />this instrument, and the Lender mar demand, sue for and reco%er
<br />any such payments %shell clue and payable, but shall not be re-
<br />quired so to do. This assignment is to terminate and become null
<br />and %old upon release of this instrument.
<br />10. That the Borro%er sail: keep the buildings upon said premises
<br />in good repair, and neither ,:cent:, t nor permit waste upon said
<br />land, nor suffer the said prernisc, to be used for any unlawful
<br />purpose.
<br />11. '11; %( if the premises. or ant part thereof, bc condemned
<br />under It,. po%%cr of eminent domain, or acquired for a public use,
<br />the dam;iFc% awarded, the ptocccds for the taking of, or the con -
<br />%1Jcrttio.i for such acquisition, to the extent of the full amount of
<br />indeblednes% upon this instrument and the note which it is given to
<br />secure re'aaining unpaid, are hereby assigned by the Borrower to
<br />the Lender, and shall he paid forthwith to said Lender to be ap-
<br />phcd by the ratter �„ acco;nE of Eire next maturing installments of
<br />sure ;, indebttdiless.
<br />12- The Borrower further agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the Na-
<br />tional Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing
<br />and Urban Development or authorimd 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 tray, at its op-
<br />rion, 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 when 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 _",apart-
<br />ment of Housing and Urban Developmcnt.
<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
<br />with any of the conditions or agreements containe,l in this instru-
<br />ment, or the note which it secures, then the entire principal sum
<br />and accrued interest shall at once become due and payable, at the
<br />election of the Lender.
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agr,xment in this
<br />instrument (but not prior to acceleration under paragra; ) 12
<br />u: cm applicable law provides otherwise). The notice shail specify:
<br />(a' the default; (b) the action required to cure the default; (c) a
<br />da-e, not less than 30 days from the date the notice, is given to
<br />Borrower, by which the default must be cured; and (dl that failure
<br />to cure the default on or before the date specified in the notice
<br />may result in acceleration of the sums secured by this instrument
<br />and sale of the Property. The notice shall further inform Borrower
<br />Of the right to reinstate after acceleration and the right to bring a
<br />court action to assert the non - existence of a default or any other
<br />defense of Borrower to ucceleration and sale. if the default is not
<br />cured on or before the date specified in the notice, Lender at its
<br />option may require immediate payment in full of all sums secured
<br />by this instrument without further demand and may ;nvotc the
<br />power of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in pursuing
<br />the remedies provided in this paragraph 13, including, bw not
<br />limited to, reasonable attorneys' fees and costs of title c%idence.
<br />If the power of sale is invoked. Trustee shall record a notice of
<br />default to each county in which any part of the Property is located
<br />and steal. mail copies of such notice in the manner prescribed by
<br />applicable last to Borrower and to the other persons pcecribed 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 un Bor-
<br />rower, shall sell the Property at public auction to the highe %t bid-
<br />der at the time and place and under the terms designated in the
<br />notice of salc in one or more parcels and in any order Trustee
<br />determines. Trustee may postpone sale of all or any parcel of the
<br />Property by public announcement at the tittle and place of any
<br />pre >iuu >ly s- :Iit lulcd sale. Lender or its designee may purchase [he
<br />Property a% any sale.
<br />Upon receipt of paynlcnt of Eric price bid, Trustee shall tcli%er
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's sdml shall be prima facie evidence of the
<br />truth vi the statements made therein. Trustee shall apply the pro-
<br />cceds o; the sale in the following o:dcr: (a) to all expenses of the
<br />sale, including, bur not limited to, Trustee's fees as permitted by
<br />applicable lase and reasonable attorneys' fees; (b) to all sun's
<br />secured by this Security Instrument; and (c) any excess to the per-
<br />son or persons legally entitled to it.
<br />Page 3 %oT 5 .s HUD- 92143DT
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<br />89--- 1425 7 7
<br />made shall be added to tiro prinnpal sum owing on the abov,:
<br />note, shall be secured hereby, aatd stall bear interest at the rate set
<br />forth in the said note, until paid.
<br />7. That the Borrower hereby a- -:gns, transfers and sets ever 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 cf this instrument or the said
<br />r,o[e. all the rents, revenues and income to be derived from the
<br />sayl premises during such time as the indebtedness shall remain
<br />unp: id, and the Lender shall have poster to appoint any agent or
<br />agent. it may desire for the purpose of repairing said premises and
<br />of renting the same ind collecting the rents, revenues and income,
<br />and it sniy pay out of said iucomcs all expenses of repairing said
<br />premises Lnd necessary commissions ana expcs•es incurred ill rent-
<br />ing and managing the same and of collecting rental, therefrom;
<br />the balance t- maining, if arty, to be applied toward the discharge
<br />of said indebtedness.
<br />H. I hat the Borrower will keep the impro%ements now existing
<br />or hereafter erected on the property, insured as may be required
<br />from time to erne by the Lender against loss by fire and other
<br />harards, casuahies and contingencies in such amounts and for such
<br />periods as may be required by the Lender and will pay promptly,
<br />s%hcn due, any premiums on such insurance provision for payment
<br />of which has not been made hereinbefore. Ali insurance shall be
<br />carried in companies approved by the Lender and the policies and
<br />reric.%ais thereof shall be held by the i ender and have attached
<br />thereto loss payable clauses in fa%or of and in form acceptable to
<br />rho Lender. In cent of loss Borro% %cr will ci%c immediate notice
<br />by mail to the Lcndcr, who mry make proof of loss if not made
<br />promptry by Borrower, and each insurance company concerned is
<br />hereb% awhorued and directed to make paymear for such loss
<br />dnectly to cure Lender instead of to the Borro%%cr and the Lender
<br />jointh, and the insurance proceeds, or any part tf:ereof, may be
<br />applied by the Lender at its Option either to the reduction of the
<br />1ndcbtcJnes•, lwrchy secured or to the restoration or repair of the
<br />property damaged. ht e%cnt of foreclosure of this instrument or
<br />other t,.;?1Acr of title to the mortcaccd property in c%tinguishntent
<br />of the inJei t;dricss secured hcreby. all right, title and interest of
<br />Cie Rorroster in and to any insurance policies then in force shall
<br />'?ass to the puthaser or grantee.
<br />9. That a% additional and collateral security for the payment of
<br />the note described, anti ail sums to become duc under this instru-
<br />ment, the Bornmer hcreby assigns to the Lender all profits,
<br />rescnues, royalties, rights and N-11C its accruing to the Borrower
<br />under any and all oil and eas leases on said premises. with the
<br />'1011 to rc•cci%c and receipt for the santc and apph them to said
<br />lndcblednos as well befotc as after default in the cunditions of
<br />this instrument, and the Lender mar demand, sue for and reco%er
<br />any such payments %shell clue and payable, but shall not be re-
<br />quired so to do. This assignment is to terminate and become null
<br />and %old upon release of this instrument.
<br />10. That the Borro%er sail: keep the buildings upon said premises
<br />in good repair, and neither ,:cent:, t nor permit waste upon said
<br />land, nor suffer the said prernisc, to be used for any unlawful
<br />purpose.
<br />11. '11; %( if the premises. or ant part thereof, bc condemned
<br />under It,. po%%cr of eminent domain, or acquired for a public use,
<br />the dam;iFc% awarded, the ptocccds for the taking of, or the con -
<br />%1Jcrttio.i for such acquisition, to the extent of the full amount of
<br />indeblednes% upon this instrument and the note which it is given to
<br />secure re'aaining unpaid, are hereby assigned by the Borrower to
<br />the Lender, and shall he paid forthwith to said Lender to be ap-
<br />phcd by the ratter �„ acco;nE of Eire next maturing installments of
<br />sure ;, indebttdiless.
<br />12- The Borrower further agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the Na-
<br />tional Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing
<br />and Urban Development or authorimd 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 tray, at its op-
<br />rion, 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 when 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 _",apart-
<br />ment of Housing and Urban Developmcnt.
<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
<br />with any of the conditions or agreements containe,l in this instru-
<br />ment, or the note which it secures, then the entire principal sum
<br />and accrued interest shall at once become due and payable, at the
<br />election of the Lender.
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agr,xment in this
<br />instrument (but not prior to acceleration under paragra; ) 12
<br />u: cm applicable law provides otherwise). The notice shail specify:
<br />(a' the default; (b) the action required to cure the default; (c) a
<br />da-e, not less than 30 days from the date the notice, is given to
<br />Borrower, by which the default must be cured; and (dl that failure
<br />to cure the default on or before the date specified in the notice
<br />may result in acceleration of the sums secured by this instrument
<br />and sale of the Property. The notice shall further inform Borrower
<br />Of the right to reinstate after acceleration and the right to bring a
<br />court action to assert the non - existence of a default or any other
<br />defense of Borrower to ucceleration and sale. if the default is not
<br />cured on or before the date specified in the notice, Lender at its
<br />option may require immediate payment in full of all sums secured
<br />by this instrument without further demand and may ;nvotc the
<br />power of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in pursuing
<br />the remedies provided in this paragraph 13, including, bw not
<br />limited to, reasonable attorneys' fees and costs of title c%idence.
<br />If the power of sale is invoked. Trustee shall record a notice of
<br />default to each county in which any part of the Property is located
<br />and steal. mail copies of such notice in the manner prescribed by
<br />applicable last to Borrower and to the other persons pcecribed 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 un Bor-
<br />rower, shall sell the Property at public auction to the highe %t bid-
<br />der at the time and place and under the terms designated in the
<br />notice of salc in one or more parcels and in any order Trustee
<br />determines. Trustee may postpone sale of all or any parcel of the
<br />Property by public announcement at the tittle and place of any
<br />pre >iuu >ly s- :Iit lulcd sale. Lender or its designee may purchase [he
<br />Property a% any sale.
<br />Upon receipt of paynlcnt of Eric price bid, Trustee shall tcli%er
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's sdml shall be prima facie evidence of the
<br />truth vi the statements made therein. Trustee shall apply the pro-
<br />cceds o; the sale in the following o:dcr: (a) to all expenses of the
<br />sale, including, bur not limited to, Trustee's fees as permitted by
<br />applicable lase and reasonable attorneys' fees; (b) to all sun's
<br />secured by this Security Instrument; and (c) any excess to the per-
<br />son or persons legally entitled to it.
<br />Page 3 %oT 5 .s HUD- 92143DT
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