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event of loss Borrower will give Immediate notice by mail w the
<br />Lender, who may make proof of loss if not tirade peompVy by
<br />Borrower. and each insurance company concerned is be:eby
<br />authorized and directed to make payment for such floss directly to
<br />the lender instead of to the Borrower and the Lender jointly, and
<br />the irisu -once proceeds, or any part thereof, may be ,pplied 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 properly
<br />damaged. In esent of foreclosure of this insuurm -tit 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 policies then in fora shall pass to
<br />the per chaser or grantee.
<br />9. 'rhat as additiwial and collateral security for the payment of the
<br />note described, and all sums to beLomr, due under this instrument,
<br />the Borrower hcrdw assigns to the Lender all profits, revenues,
<br />royalties, rights and beocGts accruins to the Borrower under any and
<br />all oil and gas feasts on said prcmi•,a, with the right to receive and
<br />receipt for the lime and apply them to said indebtedness as well .
<br />before as after default in the conditions of this instrument and the
<br />Lender ma demand. sue for a,id recover any such payments when
<br />due and pagzbie, but shall no' be required so to do. This assignment
<br />is to termitimc and become cull and void upon release of this
<br />instrument
<br />0. That the Borrower will keep the buib!ings upon said premises
<br />In good repair, and re ;iher commit nor permit waste upon said land,
<br />nor su 'er the said premises to be used for any unlawful purpose.
<br />11. That if the i remises, or any part thereof, be condemned under
<br />the waver of erni,icnt domain, or acquired for a pubhi; use, the
<br />damages awar,W, the proceeds for the taking of, or the
<br />consideration (or such acquisition, to :he extent of the full amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure rcma.ning 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 in amount of the next maturing insu1mems of such
<br />indebtedness.
<br />12. fhc Borrower further agrees that chould this instrument and
<br />the note secured herby not be eligible for insurance under the
<br />Nad.or,al Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing and
<br />Urban Development or authorized agent of the Secretary of !lousing
<br />and Urban Development dated subsequent to the eight months' time
<br />from the date of this instrument, declininc to insure said nute and
<br />:hie mortgage, icing c:et med conclusive prwf of such ineligibility.).
<br />licit Lc. ^.de: or ldr- of the note may. at its option, declare all sums
<br />secured hereby immcdiateiy due and payable. Notwithsianding the
<br />foregoing, this option may not be exercised by the Lender or the
<br />holder of thr note when the ineligibility for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortgage . -isurznce premium to the Department of Housing and
<br />Urban D:.yclopntcn,t.
<br />13. That if the Borrower tails to make any payments of money
<br />when the same become due, or fails to conform to and comply with
<br />89-- ?02601
<br />any of the conditions or agteemcats cw, ained in this instrument or
<br />the note which it secures, then the entire principal sum and accrued
<br />interest shall at once become dux and payable. at the electron of the
<br />Lender_
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agrc!ment 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: (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, b,. which
<br />the default must be cured. ?ltd (d) that failure to cure the default on
<br />or before the date speafted in the notice may result in acceleration
<br />of the sums secured by this instrument and sale of the Property. The
<br />notice shall further inform Borrower of tte right to reinstate 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 and sale. If the default is not cured on or before the date
<br />specified in the notice. Lender at its option -ray require immediate
<br />payment in full of all sums serum by tilt instrument without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicabe. law. Lender shall be entith d to
<br />collect all expenses incurred in p• -suing tyc remedies prov,•_zd in
<br />this paragraph 13, including, but tot limited to, reasonable
<br />attorneys fees and cct u of title eyidencc.
<br />If the power of sale is invoked. Trttstez shall record a notice of
<br />default in each county in which any part c.` 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 pr<senbed by
<br />applicable law After the time required toy applicable law. Trustee
<br />shall give public notice of sale to the persons and in the mann* -r
<br />prescribed by applicable law. Trustee, Without demand on Borrower,
<br />shall scC the Property at public auction to the highest bidder at the
<br />time and place and under the terms designated in the Mona of sale
<br />in one or more parcels and in any order Trustee d �termmes. Trustee
<br />may postpone sale of all or any parcel of the Prop rty by public
<br />announcement at the time and place of anv previoiedy scheduled
<br />sale. Lender or ib designee may purchase the Prol -ty at any sale.
<br />Upon receipt of payment of the price bid. Trustee shall dcliv -r to
<br />the purchaser Trustee's deed conveying the Property. The rrcitais its
<br />the Trustee's deed shall be prima facie evidence of the troth of the
<br />statements nude therein. Trustee shall apply the proce %ds of the sole
<br />in the following order: (t) to all expenses of the sale. including, but
<br />not limited to. Trustee's fees as permitted by applicable law znd
<br />rcasonable attorneys fees (b) to all sums secured by this Security
<br />Instrument; and (c) anv excw to the person or persons legally
<br />entitled to it.
<br />13. Upon acceleration under paragraph 13 or aaandonment of the
<br />Property, Lender (in person, by agent or by judvtially appointed
<br />receiver) shall be entitled to enter uron, Lake possession of and
<br />manage the ,Property and to coliez the rents of the Property
<br />including those past due. Any rents collected by Lender or the
<br />rccci%cr shall be applied first to payment of the costs of management
<br />of the Property and collection (d rent inc! wing, out not limited ts.
<br />receiver's fees premiums en receiver's bonds and reasonable
<br />attorney's fees, and then to the sums -enured by this instrument.
<br />Page 3 of 5 HUD,�21130TIt
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