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<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 />authoriz -and directed to make payment for such loss directly to
<br />the Leader tnstead of to, the Borrower and the Lender jointly, and
<br />the insura" procmds, or any pan thereof, may be applied by the
<br />Lender at tts option either to the reduction of the indebtedness
<br />hereby secured err to the restoration or repair of the property
<br />damaged. in event of foredtksure of this instrument or other transfer
<br />Of title to thr Mortgaged paa%pe.-kr in extinguishment of the
<br />indebtedness secured here y, all right, title and interest of the
<br />Borrowet im and to any insurance Mlic-m then in force shall pass to
<br />the purchaser or grantee.
<br />9. Tltat as additional and collateral security for the payment of the
<br />note described, and all sums to become due under this instrument,
<br />the Sorm a:er hereby assigns to the Lender all profinv, revenues,
<br />royalties, rights and benefits accruing ni the Borrower under any and
<br />all oil and gas leases on said premises, with the rwhz to receive and
<br />receipt for the same and apply them to said indebletAiess as well
<br />before as after default in the conditions of this instrument, and the
<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 terminate and become null and void upon release of this
<br />instrument.
<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 />damages awarded, the proceeds for the taking of, or the
<br />wnsidcration for such acquisition, to the extent 01 the lull amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure rcnaining unpaid, are hereby assigned by the Borrower to the
<br />Lender, and shall be paid fonhwith to said Lender In. be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
<br />12. The Borrower further agrees, thatshould this instrument and
<br />the note secured hereby net be eligtble for insurance under the
<br />National Housing Act sc ulrtn eighr. months from the date hereof
<br />(written statement of any officer of the Department. of Howsing and
<br />Urban Development or authorized agent of the Sm-T "II of Housing
<br />and Urban Development dated subsequent to the a etr months' time
<br />from the date of this instrument, declining to insure sazd note and
<br />this mortgage, being deemed conclusive proof of swfi: ineligibility),
<br />the Lender or holder of the note may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may 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 />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<br />13. That if the Borrower fails to make any payments k3f Mone;.
<br />when the same become due, or fails to conform to and comply with .
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<br />any of the conditions or agreements contained to this instrument, or
<br />the note which it secures, then the entire principal sum and accrued
<br />interest shall at once become due and payable, at the election of the
<br />tender.
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of anv covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise,). The noticv'shalt specify: (a) tG c
<br />default, (b) the action required cfr cure the defasills (c) a data, ^cK less
<br />than 30 days from the date the noti.ty is given to Nvrower. by which
<br />the default must be cured. and (d) that failure w rurn.the default on
<br />or before the date sperx5ed in the notice may tevtlt, in acceleration
<br />of the sums secured b� %tNis instrument and sale of the Pto -txnT. The
<br />notice shad fursher, tn', rm Wn% wer of the right to reinstate avWn
<br />acceleraedon and. f 601 10 brag a court action to assen the Pon -
<br />existettc�e of a ctsfai ') oK any other defense of lac- en�wer to
<br />aceeletat kin and WV ff the default is not cured on or before the date
<br />specified 0 the notkLv. Lender at its option may Qeiluire imtediate
<br />payment in full of all sums secured by this instrument without
<br />further demand and may invoke the power of sale and any otter
<br />remedies permitted by applicable law, Lender shall be entitled to
<br />collect all expense-, incurred in pursuing the remedies provided in
<br />this paragraph 13, tirduding, but not limited to, reasonable
<br />attorneys' fees and. costs of title L tidence.
<br />If the power of sate; is invoked, .btustee shall record a notice fsf
<br />default in each county 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 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. Trustee, without demand on Borrower.
<br />shall cell 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 />'Mont! or more parcels and in any order Trustee determines. Trustee
<br />may postpone sale of all or any parbet of the Property by public
<br />announcement at the time and pC2x . of any previously scheduled
<br />sale. Lender or its designee irav purchase the Property at any sale.
<br />Upon receipt of payment of the price bid, Trustee shall deliver to
<br />the putthaser Trustee's deed con -raying 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, (h) a;, ai, sums secured by this Security
<br />Instrument; and (c) any excess ta'the person of 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 appointed
<br />re vier) shall be entitled to enter upon, take possession of and
<br />macage the Property and to collect the rents of the Property
<br />including those past due. Any rents collgcted by Lender or the
<br />receiver shall be applied first to paymeiti; of Rhe cri,sts of management
<br />of the Property and collection of. -ers. drelc:d%ab, but not limited to.
<br />receiver's fees, premiums on rece:ztr c bo. & and reasonable
<br />attorney's fees, and then to the secured t,-? this instrument.
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