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•_•�. made shall be added to the principal sum owing on the kbuve
<br />note, shall be secured hereby, and shall bear interest at the rate set
<br />forth in the said note. until paid.
<br />7. That the Borrower hereby assigns, transfers and sets ova to
<br />- -. - . - - -.. -- -the Lender, to he applied toward_thte�ayment 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 inorument 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 rernain
<br />unpaid, and the Leader 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 it may pay out of said incentes 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 remairling, if any, to be applied toward the discharge
<br />of said indebtedness.
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<br />r
<br />y:
<br />S. That the Borrower will keep the improvements now existing
<br />or hereafter ere.Ked on the property, insured as may be required
<br />from time to time by the Lender against loss by fire and other
<br />tsa_ards. casualties and conlisigtmcies in such amounts: and for such
<br />periods as may be required b,.: the Lender and %Wl pay promptly,
<br />when due, any premiums on such insurance provision for payment
<br />of which has not been made hereinbefOTe. 4i1 insurance shall be
<br />carried in companies approved by the Lender and the policies and
<br />renewals thereof shall be held ty the Lender and have attached
<br />thereto loss payable clauses in. f`3vor of and to form acceptable to
<br />the Lender. In event 64 toss ,$iirrower v%ill give immediate noricc
<br />by nail to the Lender, who may make proof of loss if not made
<br />promptly by Borrower. and each insurance company concerned is
<br />hereby authorized and direc',4to make payment for such loss
<br />ale l} to the Lender instcA(S; of to the Borrower and the Lcnder
<br />i 3t`ry, and the insurance prat=ds. or any part then- ,.may be
<br />applied by the Lender m its option either to the reduction of the
<br />indebtedness hereby secured or to 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 poliocs then in force shall
<br />pass to the purchaser or praniee.
<br />9. "that as additional and collateral ,cunt) for the payment cut
<br />tl,a• note dcsvribcd. and all miPlS lu h-ould duc anger. Maas instru-
<br />:7,�tii3, the Bt.77Uti'Cr livid•) u»irfi:, t,i thi Lander all;_ Sc
<br />revenues, royalties, rights and benefit, accruing to the'BUrrowa
<br />under any and all oil and gas teases an sz,, +J premises, with the
<br />right to rc:etvc and receipt for the ,aric arsd apply them to said
<br />indebtedness, as well before as a.fttr defasirl -;n the -conditions of
<br />this instrument, and the 1_craSttt: miky demand, sue for and rc,.oser
<br />an) such payments when =--., and payable, but shall not he re-
<br />quired so to do. This assignment is to r;'niinate and become null
<br />and void upo;tr refcase of this inarumerw.
<br />Ill. That the tinrrow-er will keep the buildings upon said premises
<br />p!i good repair. and neithe" ,t,. ijio it not permit avast!; :rf;t;n. said
<br />,m,4 nor suffer the said trr�stz:es to be used for any Laawful
<br />purpose.
<br />11. That if ilr prcmi,es..,m any part inereot, be condemned
<br />under the power of cirmfne Ontain. or acquired for a public use.
<br />the damages awarded. for the taking of, or the con -
<br />sideralion for sui:h acqu :siiion. to the extent of the fuff- amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />wure remain;iIg- unpaid. are hereby assigned by the Borrower to
<br />the Leader, and shall be paid forthwith to said tender to be ap-
<br />plied by the Latter on account of the next maturing installments of
<br />such indeMednesa.
<br />89- 145228
<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 Houft 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 Dee ft ttent dated subsequent to the eight
<br />months' time from the due t is instrunient.�tcGnirng io insure
<br />—
<br />said note and this mongage. 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 imtttc"ely due 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 faits 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 insttu-
<br />rn (Stt; or the note which it securix, 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 fh acceleration tender paragraph 12
<br />unless applicable law provfdes 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 />to cure the default on or before the date specified in the notice
<br />may result in acceleration of the stuns secured by this instrument
<br />and sale of "the Property. The notice shall further inform Harrower
<br />of the ri_gh-. tt, reinstate after acrel"ittit. and the right to bring; a:
<br />court act rsts: soy assert the non- existd;sr a of a default or any other:'
<br />defense of '&? mower to-a,:stleration arid sale. If the default is nct}
<br />cured on or before the: dale: specified in the notice, Lender at its
<br />option may require 4=4ittte payment in full of all sums secured
<br />by this instrument w•ithoiit 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 safe is invoked. Trustee shall record a notice of
<br />default i x "'s county in which any. Oilt of the Property is l(w,411 :11
<br />and shall ii c:T copies of such notice ;tt the manner prescribed irf.
<br />applicable law to Rorrowvr , and to the other persons precribed by
<br />applicable law. After t'ne time required by appliC#4t law, Trustee
<br />,hall 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 sell the Property at public auction to the h'ighest,bid.
<br />der at the time and place and under the terms des*=ted in the,
<br />notice of sale in one or more parcels and in any adiv Trustee
<br />determines. Trustee may postpone sale of all or aary' parcel o5 dhe
<br />Property by public announcement at the- time and'plae'e of aay
<br />previously scheduled sate. lender or kis. designee may purchast, iltC
<br />Property ar any sale.
<br />Upon receipt of payment of the price bid. Trustee shall deliver
<br />to the purchaser Trustrx'.r deed conveying the Property. The
<br />recitals his the Trustee's deed shall be prima facie evidence of the
<br />truth of (ht•,.tateinenrs made therein. Trustee shall apply the - isiv-
<br />ceeds of the i;ale in the following order- (a) to all expenses cf,.tlfsl-
<br />sate, including, but not iimited to. Trustee's fees as permitted by
<br />applicable law and reawnable attorneys' fees: (b) to all sums
<br />secured by this Security bstrument; and (c) any &i:zss to the per-
<br />son or persons legally entitled to it.
<br />Page 3 of 5 HUD42143DY
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