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event tit loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of less if not made promptly by
<br />Borrower, and each insurance company concerned is hereby
<br />authorized and directed to rrake payment for such loss directly to
<br />the Lerdcr instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any past thereof, may be applied by the
<br />Lender at its - ,oiion either to the reduction of the indebtedness
<br />hereby iccured or to the restoration or repair of the property
<br />damagea. to 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 t4c
<br />Borrowcr in rod to any insurance policies then in force shall pass to
<br />the purch,(.sc.r of grantee.
<br />9. That as additional and collateral secuiity fcr the payment of the
<br />note described and aC sums to become due under this instrument,
<br />the clorrower hereby aligns to tF.e Lender all profits, revenues,
<br />royalties, rights and benefits accruing to the Borrower Linder any and
<br />all oil and gas leases on said premises, with the right tc receive and
<br />receipt for the same and apply them to said indebtedness as well
<br />before as afar default in the conditions of this instrument and he
<br />Lender ma} demand, sue for and recover any such payments when
<br />due and pa! able% but shill not be required so to do. This a_tsignmcnt
<br />is to terniniate and become null and void upon relca_w of this
<br />instrument. 4
<br />IC. That il!e Soriowcr will keep the buildings upon said premises
<br />in good repair, and neither commit nor permit westc upon said land,
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />I 1 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 pi)ccets for the taking of, or the .
<br />cunsidcratiun for such acuuisitiun, 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 a:count of the next maturing inswllmSnts of such
<br />indcbtcdnca.
<br />12. The Borrower further agrees tha' should this'i.nstrcment and
<br />the nut(. secured hereby not be eligible for insurance u ;ider the
<br />National IlousingvAct within eight rnoaths from the d ;.te hereof
<br />(writtea statement of any officer of the Dcpartmeot of Housing and
<br />Urban 1)evelonment or authorized agent of the Secretary of Housing
<br />and Urban Development dated subscgr�nt to the eight months 'time
<br />from the date of this instrument, declining to insure said note and
<br />this moitgage, being deemed conclusliye p:a)f of such ineligibility),
<br />the I.cndcr or holder of the note may, a. its option, declare all surfs
<br />secured hereby immediately due and payable. Notwithstanding the
<br />forcguing, this option may not be e,.erciscd by the Lender or the
<br />holder of the note whon the inchyibility for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium to thi- Department of Housing and
<br />Urban Dccclopmcnt.
<br />13. Lhai it file Vorro•her fails to ntake any payments of money
<br />when the same flCC;lnll' due, ur fails to cuulurrn to and comply with
<br />e
<br />89-.102598
<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 />intercct shall at once become due and payable, at the elution of th^
<br />Lender.
<br />Lender shall give noose to Borrower prior w acceleration
<br />following Borrowers breach of any covenant or agreement in this
<br />instrument (but aot prior to acceleration under paragraph 12 units
<br />applicable law provides otherwise). The notice shall uxcify: (a) the
<br />default; (b) the action required to cure the default; (c) a date, not less
<br />than 30 days from the date the notice is given to Borrower, by which
<br />the default must be cured, and (d) that failure to cure the default on
<br />or before the date sixrcified in the notice may result in acceleration
<br />of the sums secured by thii instrument and sale of the Property. The
<br />notice shall further inform Borrower of the right to reimlate after
<br />acceleration and the right to bring a court action to assert the non-
<br />existence of a default or any other defense of Borrower to
<br />acceleration, , ,.nd vile. If the default is not cured on or before the date
<br />specified in the notice. Lender at its option may require immediate
<br />paymcia in full of all sums secured bY this instrument without
<br />further demand and may inv -Like the powct %,f rale and any other
<br />remedies permitted by appi;ca ^:e lax. Lend- r shall be entitle: to
<br />collect all expenses incurred in pv-si_w ih— remedies provided in
<br />this paragraph 13, including, b.t rt,wt iimr,tti to.:casonablc
<br />attorneys' fees and cents of tint evrci^nce.
<br />It the power of sale is insoked. T- istce shall record a notice of
<br />default in each county in which any part of the Froperty is loc -.ted
<br />and shall mail cop:c, of such nouex in the manner prescribed uy
<br />applicable law to Forrower and to the other pcn.ms prescribed 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. Truster, without demand on florrowcr,
<br />s: all sell the Propcity at public auction to the highest bidder at the
<br />ti is and piacc and under the terms desiinated in the notice of sale
<br />in orc or more parcels and it any order Trustee delcrminLs. Trustec
<br />may postpone sale of ail 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 rc.cipt of payment of the price bid. Trustee shall dcliycr to
<br />the purchases Trustee's decd conveying the 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 fees 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. Urn m acceleration under paragraph 13 or abandonment of the
<br />Property, Lender (in person, by agent or b: judici, fly appointed
<br />receiver) shall be entitled to enter upon, take possession of and
<br />mange the Property and to collect the rents of :he Property
<br />incluuing those test due. Any rents collected by Lender or the
<br />receis er shall be applied first to payment of the costs of management
<br />of the Protscrty and collection of rents, including„ but not limited !o,
<br />rcceiser's fees, prenuums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
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<br />HUD- 9214?DT -1
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