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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 loan directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any part thereof, tray be applied by the
<br />Lender at its option eitber 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 irAttument of _other transfer
<br />.at tide to the mortgaged property in e>< 6gubbase0t; ot%be
<br />'ittdrbttdneas secured hereby, all right, title and interest of the
<br />Bofh:Wer, in sins! to any insurance policits then in force shill ,pass to
<br />the putter Ot grantee.
<br />9. That as additional Arid collateral security for trio payment of the
<br />we described, and all st►ta to become due under this instrument,
<br />the Borrower hereby assign to the Leader all profits, revenues,
<br />royalties, rigbb and benefits accruing to the Borrower under any and
<br />all oil and gas leases on stud premises, with the right to receive mad
<br />receipt for the same sad apply them to said indebtedness as well
<br />before as after default in the conditions of this instrument, and the
<br />Lender army demand; sue for and recover any such payments when
<br />due and lxi &W but shall not be required so to do. This assignment
<br />is to terminate and become null and void upon release of this
<br />inutrument.
<br />10. That the Borrower will keep the buildings upon said premitts
<br />in good repair, and neither commit nor permit waste upon said had.,
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />11. That if the pMnism or any pan 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 />consideration 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 />s inure rewaisiag uap;aA arc h.°r;,#iy aqua# by the Borrower tot he
<br />Lender, and shall be paid forthwith to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
<br />12. The Borrower funbe:c.aVees that should this instrument and
<br />the note secured hereby mast be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(written stakeent of any'oificer of the Department of Housing and .
<br />Urban Devtk pmcnt or authorized agent of the Secretary of Houlimg:
<br />sad Urban Development dated subsequent to the eight months' bare
<br />from the date of this Wom ment, declining to insure said note and
<br />this nwftgsge, being deemed conclusive proof of such ineligiUlity),
<br />the Lender or holder of the note may, at its option. declare all sumac.
<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 insuranm raider the
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortgage iz aranee premium to the Department of Housing and
<br />Urban De+rc%pment.
<br />13. That if the Borrw.;& fails to makce any payments of money
<br />wkn the same become dace. or fails to conform ar -AW comply vtith :
<br />any of the conditions or agreements contained in this instrument, or
<br />the note which it secutes, then the entire principal sum and accrued
<br />interest shall at once become due and payable, at the election of tho
<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 now shall specify: (a) the
<br />default; (b) the action required to cure the default; (c) a date, not lean
<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 />specited 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 applicabk 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 b 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 nersom and in the manner
<br />prescribed by 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 designated in the notice of sale
<br />in Uit@ VF r :'sUic (73rsi6 and ri: arty 4sasr, Thu-me {l+'.tirtiiiiiu. a si= -3ti%
<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 sale.
<br />Upon receipt of payment of the price bid. Trustee shall deliver to
<br />the purcl aser 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 saw
<br />in the following order. (a) to all expenses of the sak, including, but
<br />not limited to, Trustee's fees as permitted by applicable law and
<br />reasonable attorneys' fag; (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 appointed
<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 collected by Lender or the
<br />receiver shall be applied first to payment of the costa of management
<br />of 4be-property and collection of rents, including, but not limited to,
<br />rtieivees fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
<br />Pans 3 of 5
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