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<br />made shall be added to lhe pllncipal sum owing on the above
<br />note, shall be secured hereby. and shall bear interesl at the rate set
<br />forth in the said nOle. until paid,
<br />
<br />7. ThaI the Borrower hereby assigns, transfers and ~ts over to
<br />the Lender. to be applied IOward the payment of the note and all
<br />sums secured hereby in case of a default in the performance of
<br />anv of the terms and .:onditions of this instrument or the said
<br />n(lie, all the rents, re\enues and income to be derived from the
<br />said premises during such time as the indebledness shall remain
<br />unpaid. and (he Lender shall have power to appoint any agent or
<br />agents it may desire jor the purpose of repairing said premises and
<br />oj renting the same and collecting lhe rents, revenues and income,
<br />and it may payout oj said incomes all expen~s of repairing said
<br />premises and necessary commissions and expenses incurred in rent.
<br />inll and managing the same and of collecting rentals therefrom;
<br />th~ balance remaining, if any. 10 be applied toward the discharge
<br />oi said indebtedness.
<br />
<br />8. That the Borrower will keep the improvements now existing
<br />or hereafter erected on the property, insured as may be required
<br />from time to time by the Lender against loss by fire and other
<br />hazards, casualties and contingencies in such amounts and for such
<br />periods as may be required by the Lender and will pay promptly,
<br />when due, any premiums on such insurance provision for payment
<br />of which has not been made hereinbefore, All insurance shall be
<br />carried in companies approved by the Lender and the policies and
<br />renewals thereof shall be held by the Lender and have au ached
<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 />b)' mail 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 directed to make payment for such loss
<br />directly to the Lender instead of to the Borrower and the lender
<br />jointly, and the insurance proceeds, or any pan thereof, may be
<br />applied by the lender at its option either to the reduction of the
<br />indebtedness hereby SC'Cured or to the restoration or repair of the
<br />propeny damaged. In event of foreclosure of this instrument or
<br />other transfer of title to the mongagl'1i propeny 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 grantcc.
<br />
<br />9. That as additional and collateral SC'Curity for the payment of
<br />the note described, and all sums to become due under this instru-
<br />ment, the Borrower hereby assigns to the Lender aU profits,
<br />rC'\'CIlues, royalties, rights and benefits accruing to the Borrower
<br />under any and all oil and gas leases on said premises, with the
<br />right to recei\'e and receipt for the same and apply them to said
<br />indebtedness as well before as after default in the conditions of
<br />this instrument, and the lender may demand, sue for and recover
<br />any' such payments when due and payable, but shall not be re-
<br />quired so to do. This assignment is to terminate and become null
<br />and void upon release of this instrument.
<br />
<br />10. That the Borrower will keep the buildings upon said premises
<br />in lood repair, and neither commit nor permit waste upon said
<br />land, nor suffer the said premises to be used for any unlawful
<br />purpose.
<br />
<br />II. lbat if the premises, or any part thereof, be condemned
<br />under tbe power of eminent domain, Of acquired fOf a public use,
<br />the damages awarded, the proceeds for the Winl of, Of the con-
<br />sideration for such acquisition. to the extent of the full amount of
<br />indebtedness upon this instrument and the note wltidt it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower to
<br />the Lender, and shall be paid fonbwith to said Lender to be ap-
<br />plied by the latter DO KCOUIIt of the next maturiDa installments of
<br />sudI indebtedness,
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<br />12. The Borrower further agrees that should this instrument and
<br />the note ~cured hereby not be eligible for insurance under the Na-
<br />tional Housing Act within eight months from the date hereof
<br />(wrillen statement of any officer of the Department of Homing
<br />and Urban Development or authorizffl agent of the Secretary of
<br />Housing and Urban Development dated subsequent to the eight
<br />months' time from lhe dale 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 />Notw ithstanding 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 />
<br />13. That if the Borro....er fails to make any payments of money
<br />when lhe same become due, or fails to conform to and comply
<br />with any of the condition~ or agreements contained in this instru-
<br />ment, or the note which it ~cures, then the entire principal sum
<br />and accrued interest shall at once become due and payable, at the
<br />election of the lender.
<br />
<br />lender shall give notice to Borrower prior to acceleration
<br />follo....ing Borrower's breach of any covenant or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12
<br />unles~ applicable law pro\ides otherwi~). The notice shaD specify:
<br />(a) the default; (b) the aClion required to cure the default; (c) a
<br />date, not less than 30 day~ 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 sums secured by tbis instrument
<br />and sale of the Property. The notice shall further inform Borrower
<br />of the right to reinstate after acceleration and the right to bring a
<br />court action to as~n tbe non-uistence of a default or any other
<br />defense of Borrower to acceleration and sale. If the default is not
<br />cured on or before the date specified in the notice, Lender at its
<br />option may require immediate payment in full of all sums secured
<br />by this instrument without furtber 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 paragrapb 13. inc1udina, but not
<br />limited to, reasonable attorneys' fees and costs of title evidence.
<br />
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in eacb county in whicb any part of tbe Propcny is located
<br />and shaD mail copies of such notice in the manner presaibcd by
<br />applicable law to Borrower and to the other persons prccn"bcd by
<br />applicable law. After the time required by applicable law, Trustee
<br />shall give public notice of sale to the pcnons and in tbe manner
<br />prcsaibcd by applicable law. Trustee, without demand on Bor-
<br />rower. shall sell lhe Propeny at public auction to the highest bid-
<br />der at the time and place and under the terms designated in tbe
<br />notice of sale in one or more parcels and in any order Trustcc
<br />determines. Trustee may postpone saIc of aU or any pared of tbe
<br />Property by public announcement at the time and p~ of any
<br />previously scheduled sale. Lender Of its designee may purcbasc the
<br />Property at any sale.
<br />
<br />Upon receipt of paymcn, of the price bid, Trustee shaD deliver
<br />to the purchaser Trustee's deed convC)ina the Propcny. 1br
<br />recitals in the Trustee's deed sball be prima facie evidence of the
<br />trutb of the statements made therein. Trustcc sball apply the pro-
<br />ceeds of the saIc in the foUowina order: (a> to all expenses of the
<br />sale, includinl. but not limited to, Trustcc's fees as permitted by
<br />applicable law and reasonable attorneys' fees; (b) to all sums
<br />secured by this Security lnsuument; and (c) any excess to the per-
<br />IOD or penoIIS IcplJy entitled to it.
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