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event of loss Borrower will give immediato ntotiu,�e 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 snake payment for each loss directly to
<br />the Lends instead of to the Borrower and the Lender jointly, and
<br />the Insurance proceeds, or any part thereof. may be applied by the
<br />Larder at its option either to the reduction of the indebtedness
<br />hereby secured or to the rataation or repair of the property
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of tide to the mortgaged property in extinguishment of the
<br />Wdeboedsesa secured hereby, all right, title and interest of the
<br />Borrower is and to any insurance policies then in force shall pats to
<br />The purchaser or grantee.
<br />9. That as additional and collateral security for the payment of the
<br />note described. and all sums to become duo 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 stone 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 null and void upon release of this
<br />instrument.
<br />10. That the Borrower will keep the bplldings upon said premises
<br />in good repair, and neither commit nor permit waste upon said (And,
<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 undue
<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 />.v...a:da tines far surly nrnuWtinn. to the extent of the full amount of
<br />indebtaioess upon this instrument and the note whkb ivis given to
<br />secure retraining 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 on account of rite text maturing iustaiitrrcais of su%i.
<br />indebtedness.
<br />12. The Borrower funkier agrees that should this immment and
<br />the note secured hereby not be eligible far insurance under the
<br />National Housing Act within eight meats from the date hereof
<br />(written statement of any officer of the Department of Housing and
<br />Urban Development of amdiorired agent of the Secretary of Housing
<br />and Urban Developaeap elated subsequent to the eight months' time
<br />.from the date of this im0ument, declining to insure said note and
<br />this mot, : being deemed eondusive gorool' of such ineligibility),
<br />the Lesdjjt* boiler of the we nary. opdM declare all sums
<br />secured hereby immadiatoly due and p'syable. Notwithstanding the
<br />foregoing, this option may not be exercised by the Lender or the
<br />bolder of the note when'die ineligibility. for insuam= under the
<br />National Hoisiog Act is due to the Laar3+Ws failure to remit the
<br />mortgage fasvi.znm premium to the Department of Horning and
<br />Urban DevekVtnent.
<br />13. That if the Borrower fails to make any payments of money
<br />wien tie same become due, or fails to coeform to and comply with
<br />F
<br />0-' , 103"1
<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 patagaph 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 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 />notice shall further inform Borrower of the 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 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 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 declared on Borrower.
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and rudder the terms designated in the notice of bale
<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 />at the tires' 3:.d place of any pr'vin a �
<br />slu wi-{lplrtt
<br />sale. Lender or its designee may purchase the Property at any sale.
<br />Upon receipt of payment of the prim bid, Trustee shall deliver to
<br />the purchaser Trustee's deed conveyi*'tlte Property. The recitals in
<br />the Trustee's deed shall be prima facie.oidarceafthe truth of the
<br />statements nude therein. Trustee shall; apply tlte;ptocc ds of the seek
<br />in the following order. (a) to all expetrsit of ilte'sale, including, but
<br />not limited to. Trustee's fees as permitted by applicable law and
<br />reasonable attorneys foes; (b) to all 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 appoiated
<br />receiver) shall be entitled to enter upon, take poiort afro
<br />manage the Property, cad to collect the rents of tl>ie.11t0a4rty
<br />including those past dwt Any rents collected by.Laad'er or the
<br />receiver shall be applied first to payment of the costs of managment
<br />of the Property and collection of rears., including. but not limited to,
<br />receiver's fees, premiums on rece&eF "s bonds and reasonable
<br />attorney's fees, ani'tlea to the sums secured by,- this instrument.
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