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<br />event of loss Borrower wdl 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 />autborized and directed to make payment for such loss directly to
<br />the Lender instead of to the Borrower and the Linder jointly. and
<br />the insurance proceeds. or any part thereof, may be applied by the
<br />Lender at its option either 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 instrument or other transfer
<br />of tick to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby, all right, title and interest of the
<br />Borrower in and to any insurance policies then in force shall pass 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 due under this instrument,
<br />the Bortower hereby assigns to the Lender all prcrim revenues.
<br />royalties, rights and benefits accruing to the Borrower under any., and
<br />all oil wed gas leases on said premises, with the e4ht to receive and
<br />receipt fart the same and apply them to said indebtedness as W,611
<br />befurr• as after default in the cendWans of this instrument. and the
<br />Lender may demand, i°ue for and recxsver any such payments when
<br />due and payable, beet: dull not be required so 1•u. da. This assignment
<br />is to tein atc and become null and void upon rrlc w of this
<br />10. That the Borrower will keep the building upon said premises
<br />in good repair. art4. ndther commit nor permit waste upon said land,
<br />nor suffer the said premises to be used for any uuEzwfvI purpose.
<br />11. That if the premises. or any part 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 (Attie full amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />soewrrrrinaining unpaid, are herebrti_tiissigned by the Borrower w the
<br />Lendr - and shall be paid forthwit i 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 further agrees that should this instrument x nd
<br />the note secured hereby not be eligible for insurance under tie
<br />National Housing Act within eight months ftc n.tile date hereof
<br />(written statement of any officer of the Depactnrenr of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eight month-- time
<br />from the date of this instrument, declining to insure said note:4wd
<br />this niartgage. being deemed conclusive proof of such ineligdNitfy).
<br />the Leadler or holder of the note may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not be exercised by the Lender umr tke
<br />hoWex of the we when the ineligil;dity for insurance under ilia
<br />Natior%Wl Housing Act is due to the Lender's failure to remit Otte
<br />nwrISW insurance premium to the Department of Housing and
<br />Urban Development.
<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 with
<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 ekction of the
<br />Lender
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrowers 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 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 fitilure to cure the default en
<br />or before the date specified in the notice may result in acceleratiair
<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 />ex.cc4ence of a default or any other defense of Borrower to
<br />rccelcration and sate. If the default is not cured on or before the date
<br />specilied.in the irntice, Lender at its optiammay require immediate •
<br />payment in full of all sums secured by this instrument without
<br />further demand abd may invoke the power of sale and any other
<br />remcdies'permitted by applicable law. Lender shall be entitled to
<br />ccllest all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13. including, but not litnitedto. reasonable
<br />attomeys' fees and costs of title evidence_
<br />If the power of sale is invoiced. Trustee shall record a natice of
<br />default in each county in which any pan of the Property is located
<br />and shall mail copies of such notice in the manner presc6bW by
<br />applicable law to Borrower and to the other persons prescribed by
<br />applicable law..Wxr the time required by applicable law. Trustee
<br />shall give pubis! utice of sale to the persons and in the manner
<br />pcescnbed by applicable law. Trustee. without demand on &,crower,
<br />shall yell the Property at public auction to the highest bid ftrr 47 the
<br />time and placr- sct3 under the terms designated in the not.w of sale
<br />in one or mcv w. raccels and in any order Trustee determines. Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement at the time and place of any previously 54 ayuled
<br />silts. fender or its designee may purchase the Property aa.my sale.
<br />Upon resetFIC-f, payment of the price bid`, rnztee shall deliver to
<br />the purchase: " rztee's deed conveying the Fh7s -arty. The recitals in
<br />the Truuce< ,:logy shall be prima facie evidence of Ae truth of the
<br />starrr;.c.i . rnwV.`C therein. Trta.ut 4alf apply the proccaf, ,af the sale
<br />is r'tt: :i ii: a :r.,g order: (a) for 4 r penses of the sale, including. but
<br />mx• r.: ",tier ;,, iiustee's fees as permitted I~y upplicable law and
<br />reawra'a�z,ci���r,�s rs' fees; (b) to all sums ^ecaur ;sd by this Security
<br />Instrument. andro any excess to the perseaf3r persons legally
<br />eraiz'ed to it.
<br />14. Upon ad;a:leration under paragraph 13 ar abandonment of the
<br />Property, Lender (ir, person, by agent or by judicially appointed
<br />receiver) shat: Ise entitled to enter upon, tails: 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 vests of management
<br />of the Property and collection of rents. including, but not limited ter.
<br />receiver's fees, premiums on receivers bonijk and reasonable
<br />attorney's fees. and then to the sums securaXhy this instrument.
<br />Paw 3 of 5
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