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<br />made shall he added to the principal sum owing on the above
<br />note, shall be secured herehy, and shall beat 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 h 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 />8. '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 LendLc 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 />when due, any premiums on such insurance provision for payment
<br />of whic -h has not been made hereinbefore. All insurance shall be
<br />care-.ed in companies approved by the Lender and the policies and
<br />renewtsls thereof shall be held by the Lender and have attached
<br />thereto loss payabi: clauses in favor of and in form acceptable to
<br />the Lender. In event of loss Borrower %sill She immediate notice
<br />by m41 to the Lender, who may make proof of loss if not made
<br />prorrzlttty by Borrower, and each insurance company concerned is
<br />herct-]c authorized and directed to make payment for such loss
<br />dirVoh. to the Lender instead of to the Borrower and the Lender
<br />joinVy, and the insurance proceeds ux any pen thereof, may be
<br />applied by the Lender at its optiztr, etthet to die reduction of the
<br />indelxedness hereby secured or to, th%v or repair of the
<br />prvmmw damaged. In event of �Ortz 'bsure of.rhis instruttze*: or,
<br />othea Mmsfer of title to the mom.&z s o property in extipgr hment
<br />of the indebtedness. secured hereby, all right, title and tncer6t of
<br />Ille any ..: tlran t :!.-C. -_ theri in fnri chall
<br />pass to the purchaser or grantee.
<br />9: That as additional and collateral security for the payment of
<br />the r+yfe described, and all sums to become due under this instru-
<br />ment, the Borrower hereby assigns to the Lender all profS.ts,.
<br />revenues, royalties, rights and benefits accruing to the BorkwXr
<br />under, any and all oil and gas leases on said premises, wittt the
<br />right: to, receive and receipt for the same and apply them CAL said
<br />indebtolness as well before as after default in the conditi6m.of
<br />this instrument, and the Lender may demand. sue for and.tecover
<br />any such payments when due and payable, but shall not be re-
<br />quired so to do. This assignment is to termirate and become null
<br />and void upon release of this 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
<br />land. nor suffer the said premises to be used for any unlawful
<br />purpose-
<br />11. That if the premises, or any part thereof, be condemned
<br />under the power of eminent domain. or acquired for a public use.
<br />the damages awarded. the proceeds for the taking of. or the con -
<br />sideration for such acquisition, to the extern of the full amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower to
<br />the Lender, and shall be paid forthwith to said Lender to be 2p-
<br />plied by the latter on account of the next maturing installments of
<br />such indebtedness.
<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 Howing 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 duq 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 Deveopment.
<br />13. That if the Borrower falls 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 note 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 />ro -care the default on'or before the date specified in the notice
<br />mmy. result in a. "tleration of the sums secured by this instrument
<br />and sale of the I?ropeny. The notice shall further inform Borrower
<br />of the right to m4hstate after acceleration and the right to bring a
<br />court action to assert the nonexistence of a default or any 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 its full of ail Burns sacred
<br />by this instrument without further demand and may invoke the
<br />power of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in pursuing
<br />the remedies provided in this paragraph 13, including, but not
<br />limited to, reasonable attorneys' fees and costs of title evidence.
<br />if the power of sale is invoked. Trustee shall record a notice of
<br />default in eai i .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 Borro%vtr and to the other persons precribed by
<br />applicable law,. After the time Muffed by applicable law. Trustee
<br />shall give public notice orsWc•to the persons and in the manner
<br />prescribed by applicable. lay,. Trustee. without demand on Bor-
<br />rower, shall sell the Property, at public auction to the highest bid-
<br />der at the time and place.;fnd under the terms designated in the
<br />notice of sale itr pile or more parcels and in any order •Thistee
<br />determines. TtusWo may postpone sale of all or any parcel of the
<br />Property by public announcement at the time and place of any
<br />previously scheduled sale. Lender or its designee may purchase the
<br />Property at any sale.
<br />Upon receipt of payment of the price bid. Trustee shall deliver
<br />to the purchaw.Jiustee's deed conveying. the Property. The
<br />recitals in the-Trustee's deed shall be print% facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the pro- :
<br />needs 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 (c) any excess to the per-
<br />son or persons legally entitled to it.
<br />Page 3 of 5 HU0421430T
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