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89-- 102971
<br />event of lams Borrower will gyve immediate no1mv by mall to the
<br />Lender, who may matte proof of loss if not made promptly hN
<br />Borrower, and each insurance company eoncerited is hereby
<br />authorized and directed to make payment for such lams directly to
<br />the lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any part thereof, may he 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 property
<br />damaged. to event of foreclosure of this instrument or other transfer
<br />of title ut the mortgaged property in extinguishment of the
<br />ittdeb¢odaie s secu: 1 hereby, all right, title and interest of the
<br />Botr wvz in and to "... insurance policies then to force shall pass to
<br />twe purchaser or gcamv.
<br />9. That as additionah and collateral security for the payment of the
<br />note described. and alt sums to become due under this instrument,
<br />the Borrower 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 ass well
<br />before as after default in the conditions of this in rament, and the
<br />Lendee may demand, sue for and recover any such payments when
<br />due iod payable, but shall not be required so to do. This assignment
<br />L% to to +nate and become null and void upon release of this
<br />itr�tr^nds>cttt.
<br />M 'Fiat the Borrower will keep the buildings upon said premises
<br />in goad repair. and neither commit not permit waste upon sari land,
<br />nor suffer the said premises to be used for any unlawful purpczst
<br />11. That if the premises, or any pan thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damages awarded the proceeds for the taking of, or the
<br />consideration for such acquisition, to the extent of the full amount of
<br />indebt—WAir—t; this nstfument atul the note whtrh it it given fn
<br />secure remaining aapaid, are hereby assigned by the Borrower to the
<br />Lender, and shalt be paid forthwith to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
<br />12. The Borrower, further agrees that should this instrument and
<br />the note secured lxtv�y not be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(writr$n statement of any officer of the Department of Housing and
<br />Uncaps Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eight months' time
<br />from the date of this instrument, declining to insure said note and
<br />this mortgage„ Wag deemed conclusive proof of such ineligibility),
<br />the Lender or heWer of the note may, at its option, declare all sums
<br />secured hereby tzamediately dut.dhd payable. Notwithstanding the
<br />foregoing, this option may not tie exercised by the Lender or the
<br />holder of the note when the ineligibility for insurance under the
<br />National Housing Ace is due to the Lender's failure to remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urbin Development.
<br />t3:. That if the Borrower fails co make any payments of lm�y
<br />when the same become due, or fails to confanty to and comply with
<br />auy of the condtlwas ar agwctncnts contained in this instrument, car
<br />the vole, which .tl•st ure., then the entire principal sttm and accrued
<br />interest shall at once become due and payable, at the election of the
<br />Lender.
<br />Lender shall gisc notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement 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, by which
<br />the default must he cured; and (d) that failure to cure the default on
<br />or before the date specified in the notice may result in acceleration
<br />of the sums secured by this instrument and sale of the Property. The
<br />notict: shall further inform Borrower of the right to reinstate after
<br />acc teration 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 may require immediate
<br />payment in full of all sums secured by this 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, imiuding, but not limited to, reasonable
<br />attorneys' fees and casts of title evidence.
<br />it the power of sale is ievol mL Trustee shall record a notice of
<br />default in each coup y in vrhi#.b 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 prescribed by
<br />applicable law. After the time r.'eyuired by applicable law, Trustee
<br />shall• give public notice of We ter the persons and in the manner
<br />prescribed by applicable law. Trustm without demand on Borrower,
<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 one or more parcels and in any order Trustee determines. Trustee
<br />may postpone sale of all 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 receipt of payment of the price bid.. Trustee shall deliver to
<br />the purchaser Trustee's deed twaveying 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 />tnstrument, and (c) any excess to the person or persons legally
<br />eoittled to it.
<br />14. Upon aooderauon under paragraph 13 or abandonment of the
<br />Property, Lender (in person, by agent or by judicially appointed
<br />receiver) shall be entitled voecr,er upon, take possession of and
<br />manage the Property and Ca d2ect the rents of the Property
<br />including those ;so. due. Arry cpji.mcofleewd by Lender or the
<br />receiver shalt be applied first to, payment of the costs of management
<br />of the Property and collection of rents. including, but not limited tee.
<br />receiver's fees, premiums oa receiver's bonds and reasonable
<br />attorney's fees. and then to rho sums secured by this instrument.
<br />Page 3 o15
<br />HUD- 92143DT -1
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