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<br />Lender. In event of loss Borrower will give immediate notice by
<br />mail to the Lender. who may make proof of loss if not made
<br />promptly by Borrower, and each insurance company concerned
<br />is hereby authorized and directed to make payment for such loss
<br />directly to the Lender instead of to the Borrower and the
<br />Lender jointly, and the insurance proceeds, or any part thereof.
<br />may be applied by the Lefdff at its option either to the
<br />reduction of the indebtedness hereby secured or to the
<br />restoration or repair of the property damaged. In event of
<br />foreclosure of this instrument or other transfer of title to the
<br />mortgaged property in extinguishment of the indebtedness
<br />secured hereby, all right, title and interest of the Borrower in
<br />and to any insurance policies then in force shall pass to the
<br />purchaser or grantee.
<br />9. That as additional and collateral security for the payment
<br />of the note described, and all sums to become due under this
<br />instrument; the Borrower hereby assigns to the Lender all
<br />profits, revenues, royalties, rights and benefits accruing to the
<br />Borrower under any and all oil and gas leases on said premises,
<br />with the right to receive and receipt for the same and apply
<br />them to said indebtedness as wdl before as after default• in the
<br />conditions of tbis fmstrumeat. =d the Lender may dcm=d, sue
<br />fcr and recover.ic,J -such pat=ents when dire and piyahte, but
<br />shall not be so to do. This assigmmwt is to terininate
<br />and become niA :sail void upon release of fbis instrument.
<br />M, That the �csower will keep the buildings upon s9
<br />pTan =s in Ste. Tepair, at i r. -Ather commit nor permit waste
<br />up a said saws-, user suffer 7tg said premises to be used for any
<br />unlawful purpose. •
<br />11. That if the premises, or any part thereof, be condemned
<br />under the power of eminent don-main, or acquired for a public
<br />use, the damages awarded, the proceeds for the taking of, or
<br />the consideration for such acquisition, to the extent of the full
<br />amount of indebtedness upon this instrument and the note
<br />which it is given to secure remaining unpaid, are hereby assigned
<br />by the Borrower to the Lender, and shall be paid forthwith to
<br />said Lender to be applied by the tatter on account of the next
<br />maturing installments of such indebtedness.
<br />12. The Borrower further agrees that should this instrument
<br />and the note secured hereby not be eligible for insurance under
<br />the National Housing Act within eight months from ilia date
<br />hereof (written statement of arty officer of the Depari Tier;!! of
<br />Housing and Urban Develeµpr: n. t or authorized agent ►3;: the
<br />Secretary of Housing and Urban Development dated subsequent
<br />to the eight months' time from the date of this instrument,
<br />declining to insure said note and this morl&:ge, being deemed
<br />conclusive proof of such ineligibility), the Lender or thc!der of
<br />t?ae rote may, at its option, declare all sums secured h«'.sy
<br />immediately due and payable. Notwithstanding the f {sing.
<br />this option may not be exercised by the Lender or the holder of
<br />the note when the ineligibility for insurance under the National
<br />Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium to the Department of Koi.smg a. 3
<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 u=. form to and comply
<br />with any of the conditions or agreements contained in *his
<br />instrument, or the note which it secures, then the errt:i e
<br />17yl pal sum and accrued interest shall at once be acne clue and
<br />payuble, at the election of the Lender.
<br />` 89- 104986
<br />Lender shsuli QYe notice to Borrower prior to acceleration
<br />foltow-ang BuTrmver's breach of any covenant or agreement in
<br />this instrumvni'(but not prior to acceleration under paragraph
<br />12 units ep— p5table law provides otherwise). The notice shall
<br />specif!'. (a) tle default; (b) the action required to cure the
<br />defaLdt; (c) a date. not Iesss than 30 days from the date the
<br />notito is- given to Borrower, by which the default must be cured,.
<br />and (tit) that failure to cure the default on or before the date
<br />specified in•tbe notice may result in acceleration: of the sums
<br />secured by this instrument and sale of the Property. The notice
<br />shall furthm inform Borrower of the right to Mifistate after,
<br />acce!milan and the right to bring a court action to assert thm
<br />non-existence of a default or any other defense of Borrowet-tc. ;
<br />acee!trmion and sale. If the default is not cared on er before
<br />the date specified in the notice, Lender at its option may require
<br />immrdiate payment in full of all sums secured by this
<br />instrument without further demand and may invoke the power
<br />of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in
<br />pursuing the remedies provided in this paragraph 13. including,
<br />but not-limited to, reasonable attorneys' fees and costs of title
<br />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 is
<br />located and shall mail copies of such notice in the manner
<br />prescribed by applicable law to Borrower and to the other
<br />persons prescribed by applicable taw. After the time required by
<br />applicable law, Trustee shall give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee, without demand on Borrower, shall sell the Property at
<br />public auction to the highest bidder at the time and place and
<br />under the terms designated in the notice of sale in one or more
<br />parcels and in any order Trustee determines. Trustee may
<br />postpone sil_ 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
<br />sale.
<br />Upon receipt of payment of the prEar bid, Trustee shall delivra
<br />to the purchaser Trustee's deed cotrveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of tl:e
<br />truth of the statements made therein. Trustee shall apply the
<br />proceeds of the sale in the following order: (a) to all expenses of
<br />the sale, including, but not limited to, Trustee's fees as
<br />permitted by applicable law and reasonable attorneys' fees; (b)
<br />to all sums secured by this Security Instrument; and (c) any
<br />excess to the person or rxfsons legally entitled to it.
<br />14. Upon acceleratiatr.1.snder paragraph 13 or abandonment of
<br />the Property, Lender (in person, by agent or by judicially
<br />appointed receiver) shall be entitled to enter upon, take
<br />possession of and manage the Property and to collect the rents
<br />of the Property including those past due. Any rents collected by
<br />Lender or the receiver i all be applied first to payment of the
<br />costs of management of the Property and collect_-M of rents,
<br />including., but not limited to, receiver's fees, premiums on
<br />receiver's blcnds and reasonable attorneys' fees, and then to ,61M
<br />sums secured by this ku; ,*Tument.
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