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<br />89-. 102817
<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make 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 lass directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any pan 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 pmperty
<br />damaged. In event of fotcelosurc of this instrument t r other transfer
<br />of title to the mortgaged pmperty in extinguishmmof the
<br />indebtedness secured hereby. 4 right: title and interest of the
<br />Borrower tQ and to any insurance polhofm then in fierce shall pasa Lo
<br />the pur0,n.4r or grantee.
<br />4. That as additional and collateralr.swur.ty fur tk payment of the
<br />note dc:bed, and a!1 sums to bomme due under this instrument;
<br />the Bormwer hereby assigns to the Lender all profits, revenues,
<br />royalties, rights and benefits accruing to the Borrower under any and
<br />all oil and gas leases on said premises, with the right,to receive and
<br />receipt for the same and apply them to said indebtedness as well
<br />before as after default in the conditions of this instrument, and tho
<br />Lender may demand, sue for and recover any such payments: when,
<br />due and payable, but shall not be required so to do. This assignment•
<br />is to ta— m;nate and become null and void upon release of this
<br />it�5irlmtttt.
<br />10. That the Borrower will keep the buildings•upon said premises
<br />in good repair, and neither commit nor permit waste upon said land,
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />11. 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 />daft ues awarded. the proceeds fns the taking of; or the
<br />consideration for such acquisition, 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, we hereby assigned by the Surrower to the
<br />Lender, and shall be paid forthwith to said Lendeu for be applied by
<br />the latter on account of the next matunng installments of such
<br />indebtedness.
<br />12. The Borrower further agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing
<br />Urban Development or authorized agent of the Secretary of flc; sing
<br />and Urban Development dated subsequent to the eight months time
<br />from the date of this instrument, declining to insure smJ note and
<br />this mortgage, be�qg'decmed conclusive proof of such ineligibility),
<br />the Lead(cf,at holder of the note may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option iray not be exercised by the Lender or the
<br />holder of the note when: the ineligibility for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />teortpge insurance premium to the Department of Housing and
<br />Urban Development.
<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 with
<br />any of the conditions or agreements contained in this instrument, or
<br />the note which it secures, then the entire principal sum and;wcrued
<br />interest shall at once become duo and payable, at the election of the
<br />Lender
<br />Lender shall give notice to Borrower prior to acceleration
<br />follerwOg Borrower's breach of any covenant or agreement in this
<br />instrucnent (but not prior to acceleration under paragraph 12 unless
<br />appliceble law provides otherwise). The notice shall specify: (a) the
<br />default; (h) the action required to cure the default, (c) a date, not less
<br />than 30 days from the date the notice is givon to Borrower, by which
<br />the default must be cured; and (d) that faiiut'e to cure the default on
<br />at befen: the date specfied in the notice may result in acceleration
<br />of the sums wura ky this instrument and sale of the Property. The
<br />notice shal l further. inform Borr. o%vv of the right to reinstate sifter
<br />acceleration and the tight to bnrtga court action to assert the non-
<br />existence of a default er, any other defense of Borrower to
<br />acceleration and sale. ff the default is not cured on or before the date
<br />specified in the notice, Lender at its option may require immediate
<br />payment in full of all sums secured -by thie instrument without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shall be entitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but not limited to, reasonable
<br />attorneys' fees and costs of title evidence.
<br />If the power of safe is invoked. Trustee shall record a notice of
<br />default in each count% in which any part 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 prescribedi ivy
<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 />'r`rftribed L`3 applicable Isw. T:.u-tx, without uir�iarsti C+ii - ii3Ner,
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and under the terms designated in the notice of sale
<br />in onvoc.more parcels and in air) order Trustee determines. Trustee
<br />may po!s*.,pone sale of all or any parcel of the Property by pub jc
<br />annoumement at the time and place of any previously schedeed
<br />sale. Lender or its designee may purchase the Property at any sale.
<br />UPOM :eceifr of payment of the price bid. Trustee shall deUver to
<br />the pvchaser Trustee's deed convc. tug 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, pimmitted by applicable law and
<br />reasonable attorneys' fees; (h) to :df sums secured by this Security
<br />Instrument; and (c) any excess to the person or persons legally
<br />entitled to it.
<br />14. Upon acceleration under paragraph 13 or abandonment of the
<br />Property, lender (in person. by agent or by judicially appasntrli .
<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. Any rents collected .by- Lender or the
<br />receiver shall be applied first to payment of tfre costs of management
<br />of the Property and collection of rents, including. but not limited to,
<br />receiver's fees, premiums on receiver s bonds and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
<br />-page 3 o 5
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