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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 />authorized and directed to make payment for such loss directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any part 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 property
<br />damaged. In 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, tide and interest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
<br />9. That as additional and collateral security for the payment of the
<br />twee described, and all sums to become due under this instrument,
<br />the Borrower hereby assigns 6o the Lender all profits, revenum
<br />royalties, rights and benefits - =ruing 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 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 hull and void upon release of this
<br />instrument.
<br />10. That the, ftrrower %711 keep the buildings upon said premises
<br />in jocxt repair, and neither commit nor permit waste upon said land,
<br />nor suffer the said premises to be used for any unlawful - purpose.
<br />I L That if the premises, or any part thereof, be condemned under
<br />the newer of eminent dnmaig, nr aqua foe a p UML . .
<br />dawages awarded, the proceeds for the taking of, or the .
<br />consideration for such acquisition, to the extent of the full amount of
<br />iadebtrAn!ss «Pa_► this inswimat and the none which it is given to
<br />secure renWning unpaid, are hereby assigned by the Borrower to the
<br />Lender, and sWbe paid forthwith to said Lender to be applied by
<br />the tatter on account of the dell maturing installments of such
<br />indebtedness.
<br />'112. The Borrower further agrees that siiExctd this instrument and
<br />0e note secured hereby not be eligible for insurance under the
<br />National Housing Act within eight monihs'fcom 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 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, being deemed conclusive proof of such 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 />i&ban: Development.
<br />13. That if:ft Borrower fails to make awry payments of money
<br />wben the sam t kWme due, or fails to confa m to and comply with
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<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 />interest shall at once become due and payable, at the election of the
<br />Lender.
<br />Lender shall give 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 be cured; and (d) that failure to cure the default on
<br />or'before, Of .date specified in the notice may result in acceleration
<br />of the sunk Secured by this instrument and sale of the Property. The
<br />notice'04'Cgrther inform Borrower of the right to reinstate after
<br />acceleratico and the right to bring a court action to assert the non
<br />existence'ota-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, including, but not limited to, reasonable
<br />attorneys fees and costs of title evidence.
<br />If. the power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any pact of the Property is located
<br />a:td.shrl€1 Cakes 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 />aftI give public nuiiuc of sale to the persons and in ttte mane` -
<br />prescribed b1^ applicable law. Trustee, 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 designatcd 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 sate.
<br />Upon receipt of payment of the price bid, TnL%w shah deliver to
<br />the purchaser Trustee's deed 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'We
<br />in the following order. (a) to all expenses of the sale, including; but
<br />not limited to, Trustees 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 1 cgauy
<br />entitled to iL
<br />14. Upon acceleratioa under paragraph 13 or abandcaraent of the.'
<br />Property, Lender (in persoc,, by agent or by judicial[y aploireted
<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 ood.6cted by Lender or the
<br />receiver shall'be applied Jim to payment of the casts of management
<br />Of the Property and cogamion of rents, including, but• rt x* limited to,
<br />r=ivees fees, premiums (m receiver's bonds and reasonable
<br />`attorney's fees, and then to the sums secured by this instrument.
<br />Paqe 3 of 5
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<br />HUD- 92143DT -1
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