made shall be added to the principal sum owing on the above
<br />note, shall be secured hereby, and shall bear interest at tine late set
<br />forth in the said note, until paid.
<br />7. That the Borrower hereby assigns, transfers a,td sits a:rr to
<br />the Lender, to be applied toward the payment of the note and all
<br />stuns secured hereby in case of a default in the pertotmance of
<br />any of the terms and conditions of this instrument or the said
<br />note, all the rents, revenues and ineorne tv be derived from the
<br />said premises during such time as the indebtedness: shalt 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 collating the rents, revenues and income,
<br />+ and it may pay out of said incomes all expenses of repairing said
<br />premises and necessary commisyintls-and expenses incurred in rent-
<br />ing and managing the same and of`>iilecting rentals therefrom;
<br />the balance remaining, if any, to be applied toward the discharge
<br />of said indebtedness.
<br />$, 'Iijttt the Borrower will keeps rlii'r � +spprovements nou e_ti
<br />s'. or het�arj9tr•erected on the prope $, inured as may be require'll'. .
<br />from ti `trr .tirtrt
<br />?*:_the Lender against fgss.lff. Ji-re and other
<br />hazards, castrnitits ?nsi contingencies in such :mr =nts and for such
<br />periods as may i:t: ripuired by the Lender and.,411 pay promptly.
<br />when due, any pieniiums on,sudi ,Insurance provision for payment
<br />of which has not been made (tun:itibefore. All insurance shall be
<br />carried in compania, appraml (lyi the Lender and the policies and
<br />renewals thereof shali be hdd: by the Lender and have attached
<br />thereto loss payable clauses in favor of and in form acceptable to
<br />the Lender. In event of loss Borrower will give immediate notice
<br />by mall! to the Lender, who may make proof of loss if net.madi
<br />prest 1157 by Borrower. and each insurance company concerWil is
<br />hereby authorired-and directed to make payment for such
<br />directly to the i.crldCM instead of to the Borrower and "the Lender
<br />jointly. and the imuranie proceeds, or any part thereof, may be
<br />applied by the Lender at itt, option either to the reduction of the
<br />indebtedness hereby secure:d'orito 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 Borrower in and to any insurance policies then in force shall
<br />pass to the purchaser or grantee.
<br />4. That as addit. -arral and collateral security for the payr,:OA' of
<br />the note described. Jnd all sums to become due under th�S n,tru-
<br />ntent, the Borrowur hereby assigns to the Lecidt r all prof:a:.
<br />revenues. royalties ;,O�jhts and benefits accruit ;.. io; the ikfr•;cver
<br />under any and all o.1 and gas fr;�tes.on said premises, with the
<br />right to receive and r , t';t f X ih dame and apply them to said
<br />indebtedness as we'i' 1 ;(ii:;tt`sifi�r default in the conditions of
<br />this instrument, and; t!te L.cnclaer May demand, sue for and recover
<br />any such payments when due and payable. but .hall not be re-
<br />quired so to do. This assignment is to tern-tinate and become null
<br />and' ot;id upon rrlease of this instrument.
<br />10. That the Borrower will keep the buildnt ?s upon said premises
<br />in good repair, :mill tt:"ither commit nor permit' sv aste upon said
<br />land, nor suffer ;.1,f: tald premises to he used lcir any unlawful
<br />purpose.
<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 fro*.n the date hereof
<br />(written statement of any officer of the I)epartment 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 ft Lender or the holder of the note when the ineligiSi(ity; for.'
<br />insurance under the National Housing Act is due to the Undet°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 fails to make any payments of-money
<br />wt`s kbe same become due, or fails to conform to and WMP1Y
<br />ug 1i --*l of the conditions or agreements contained in this instru-
<br />me,;, or the note which it secures, then the entire principal sum
<br />arch "crued interest shall at once become due ,,iaii payable. at the
<br />:fern= of the Lender.
<br />lY °attic shall give notice to, Fdtv*:+wer prior to acceleracfeP
<br />folkv,ins Borrower's breach.of any covenant or agreem�a,t n this
<br />instrument (but isms prior to acceleration under paragraph 12
<br />unless applicai ss zr�o provides otherwise). The notice shall specify:
<br />(a) the default; (b) the action required to cure the default;.�c) a
<br />dare ;t;rat less than 30 days from the date the notice is SfT,= to
<br />2 rr©aer, by -,&J ,ch the default must be ct»,cd; and (d) that f ailure
<br />to cure the &Ff 'i:n or before the date srssci:ied in the notice
<br />may result in i� Li ration of the sutras secW, --C 1. by this instrument
<br />and sale of the Vroperty. ThG mace sttiJ- fiaif:ter inform Borrower
<br />of ihr right to reinstate after r,.acr� MW.rr �m: Idle right to bring a
<br />cga.ix.-action to assert the non - existence of a - e:fault or any other
<br />def"u-nie of Burrower to acceleration and said. If the default is not
<br />cured on or before the date specified in the -.111tice. Lender at its
<br />option may require immediate payment in full of all sums secured
<br />bw this instrument without further demand and may invoke the
<br />law.
<br />re•rtrr of sale and any other remedies permitted by applicable
<br />Lftrsiar shall be entitled to collect all expenses incurred in pursuing
<br />,he 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 bate is invoked. Trustee shall record a notice of
<br />.W:y,,1t in each county in whicis any part of the Property is located
<br />,pid` shall mail copies of sut(r•ne;ttice in the manner prescribed by
<br />applicable law to Borrower w.,� to the other persons precribed 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 demand on Bor-
<br />rower, shall wli the Property at public auction to the highest bid-
<br />der at the time and place and under the terms designated in the
<br />notice of sale in one or more parcels and ill any order Trustee
<br />determines. Trustee may postpone sale edi sli' or any parcel of the
<br />Property by public announcement at the taint,-and place of any
<br />pie%iousiy schedulcd sate. L €o&r or its dcu,3nee way purchase the
<br />Property at any sale.
<br />11. That if the premises. Or any part thereof. be condemned
<br />under the power of vmr Gent C t °:a+n, or acquired for a public use.
<br />the damages aw aaircvli the proceeds for the tat ing of. or the con-
<br />sideration for suclt.a.,cyu ' to the extec;:: of the full amount of
<br />indebtedness upon -fu's instrument and the note which it is Li %en to
<br />secure remaining unpaid. arc hereby assigned by the 13or:OW v to
<br />the Lender. and shall be paid forhwith to said Lender to be ap-
<br />plied by the latter on account of the next maturing installments of
<br />such indebtedness.
<br />Upon receipt of payment of the price laid., Trustee shall deliver
<br />to the purchaser. Trustee's deed conveying t;te Property. The
<br />rentals to the Tri.stee's deed Shall be prima facie evidence of the
<br />truth sat the statements made.therein. Trustee shall apply the pro
<br />tcW, of the salr in the follovong order: (a) to of the
<br />sal:. �ncludinp, but not limited to, Trustee's fee: as permitted by
<br />appircabir 'saw au.d reasonable attoneys' fen. (b) to all sums
<br />sccur,d !iy this Security Instrument; and i:y any excess to the per -
<br />san +ir persons legally entitled ro it.
<br />Page 3 of 5 i ; HUD-921430T
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