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<br />S9- 103886
<br />made shall be added to the principal sum owing on the above
<br />note, shall be secured hereby, and shall bear interest at the rate set
<br />forth in the said note, until paid.
<br />7. That the Borrower hereby assigns, transfers and sets over to
<br />the Lender, to be applied toward the payment of the note and all
<br />sums secured hereby in case of a default in the performance of
<br />any of the terms and conditions of this instrument or the said
<br />note, all the rents, revenues and income to be derived from the
<br />said premises during such time as the indebtedness shall remain
<br />unpaid, and the Lender shall have power to appoint any agent or
<br />agents it may desire for the purpose of repairing said premises and
<br />of renting the same and collecting the rents, revenues and income,
<br />and it may pay out of said incomes all expenses of repairing said
<br />premises and necessary commissions and expenses incurred in rent-
<br />ing and managing the same and of collecting rentals therefrom;
<br />the balance remaining, if any, to be applied toward the discharge
<br />of said indebtedness.
<br />S. That the Borrower will keep the improvements now existing
<br />or hereafter erected on the property. insured as may be required
<br />from time to time by the Lender against loss by fire and other
<br />hazards, casualties and contingencies in such amounts and for such
<br />periods as may be required by the Lender and will pay promptly,
<br />v bgn due, any premiums on such insurance provision for payment
<br />of which has not been made hereinbefore. All insurance shall be
<br />Carried in companies approved by the Lender and the policies and
<br />renewals thereof shall be held by the Lender and have attached
<br />cherero loss payable clauses in fasw 6f and in form acceptable to
<br />the Lender. In event of loss Bornawec will give immediate notice
<br />by mail to the Lender, who m.%2i, make proof of loss if not made
<br />promptly by Horro*vr� and each trttaraetce. company concerned is
<br />hereby authorize) a-£ 31rectea ro•snake payment for such loss
<br />directly to the kewSer instead of to the Borrower and the Lender
<br />jointly, and the insurance proceeds. or any part thereof, may be
<br />applied by the Lender at its option either to the reduction of the
<br />irniebteaness-hereby secured or to the restoration or repair of the
<br />property damaged. In event of foreclosure of this instrument or
<br />other transfer of title to the mortgaged property in extinguishment
<br />of the indebtedness secured hereby, all right. title and interest of
<br />the -Bef rarer in and to any insurance policies then in force shall
<br />pass,to the purchaser or grantee.
<br />12. The Borrower further agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the Na.
<br />tional Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing
<br />and Urban Development or authorized agent of the Secretary of
<br />Housing and Urban Development dated subsequent to the eight
<br />months' time from the date of this instrument, declining to insure
<br />said note and this mortgage. being deemed conclusive proof of
<br />such ineligibility), the Lender or holder of the note may, at its op-
<br />tion, declare all sums secured hereby immediately due and payable.
<br />Notwithstanding the foregoing, this option may not be exercised
<br />by the Lender or the holder of the note when the ineligibility for
<br />insurance under the National Housing Act is due to the Lender's
<br />failure to remit the mortgage insurance premium to the Depart-
<br />ment of Housing and Urban Deveoprnent.
<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
<br />with any of the conditions or agreements contained in this instru-
<br />ment, or the hate which it secures, then the entire principal sum
<br />and accrued interest shall at once become due and payable, at the
<br />election of the 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
<br />unless applicable law provides otherwise). The notice shall specify:
<br />(a) the default; (b) the action required to cure the default; (c) a
<br />date, not less than 30 days from the date the notice is given to
<br />Borrower, by .which the default must be cured; and (d) that failure
<br />to cure the default on or before the dale specified in the notice
<br />inay result in acceleration. of the sums :secured by this instrument
<br />and sale of the Property. "G'he notice shad. further infam Borrower
<br />of the right to reinstate after acceleration: and the rijbt to bring a
<br />court action to assert the non - existence cif :a default: ar 9ny other
<br />defense of Borrower to acceleration and'sale. if the default is not
<br />cured on or before the date specified in the notice. Lender at its
<br />option may require immediate payment in full of all stuns secured
<br />by this instrument without further demand and may invoke the
<br />power of sale and any other remedies permitted by applicable law- .
<br />Lend,^r shy Iz. entiticv to cuiicct all expenses incurred in pursuing
<br />the remedies Irzovided in this paragraph 13, including, but not
<br />limited to, reasonable attorneys' fees and costs of title evidence.
<br />9. That as addiCiotutl and co llateral security for the payment of
<br />the note descriW.;a~ 4 alis4ms to become due under this instru-
<br />ment., the Borrower lrbreby'assigns to the Lender all proftt:s; '
<br />revenues, royalties; rights au4 benefits accruing to the Borrower
<br />under any and ail; oil and gas leases on said premises. with the
<br />right to• receive arsd'receipt for the same and apply them to said
<br />indebtetness 1; 5 rrefl before as after default in the conditions of
<br />this rastrurnent, "and the Lender may demand, sue for and recover
<br />any suzh payments when due and payable, but shall not be re-
<br />quired so to do. This assigairn is to terminate and become null
<br />and void upon release of this 1rtstnrrnent.
<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair. and neither commit nor permit waste upon said
<br />land',. nor suffer the said premises to be used for any unlawful
<br />Purpose.
<br />t1. That if the premises, or any part thereof-, b�t condemned
<br />under the power•os eminent domain. or aoxyt %ed for a public use.
<br />tbe.damages awarded. the proceeds for the taking of. or the con-
<br />sideration 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 />some remaining unpaid, are hereby assigned by the Borrower to
<br />the Leader, and shall be paid forthwith to said Lender to be ap-
<br />plied by the latter on account of the next maturing installments of
<br />such indebtedness.
<br />t the power of sale ip, i *oked. Trustee shall record a notice of
<br />default in eadu.county in which any part of the Property is located
<br />and shall mach copies of such notice in the manner prescribed by
<br />applicable law to Borrower and to the other persons precribed by
<br />applicable law. After the time required by applicable law. Trustee
<br />Alall give public notice of sale to the persons and in the manner
<br />prescribed 63 : pplicable law. Trustee. without demand on Bor-
<br />rower. shaft sett the Property at public. auction to the highest bid.
<br />der at the, timsr and place and under the terms designated in the
<br />nonce of sale in one or more parcels and in any order Trustee
<br />di ermines. Trustee may postpone sale of all or any parcel of the
<br />Property b • public anw=ement at the time and place of any
<br />previously - ,toddled :s". Lender or its designee may purchase the
<br />Property at any see ec
<br />Upon receipt of payment of the price bid. Trustee shall deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of the'...
<br />truth of the statements made therein. Trustee shall apply the pros. -
<br />seeds of the sale in the following order: (a) to all expenses of the
<br />sale, including, but not limited to. Trustee's fees as permitted by -
<br />applicable law and reasonable attorneys' fees: (b) to all sums
<br />secured by this Security instrument. and (e) any excess to the per-
<br />son or persons legally entitled to it.
<br />Page 3 of 5 HUD- 92143DT
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