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<br />88- 101645
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<br />made ~hall be added to the principal sum owing on the abow
<br />note, shall be secured hereby, and shall near interesl ill lhe rate set
<br />f(lrlh in the said nOll', unti! paid,
<br />
<br />7. That the Borrower hereby as,igns, tramfcrs and SCl~ O\"CI to
<br />the Lender, 10 be applied to\\'ard the payment of the note ilnd all
<br />Mlms secured hereby in case of a default III thl' performance of
<br />any of the terms and conditioll~ of Ihi, inslrllmCl1l or the said
<br />note. all the rents, rC\'enues and il1l'Ollle to be dni\"ed from the
<br />said premises during such time as the indebtedness ,hall remain
<br />unpaid. and the Lender shOll! ha\'e power to appoinl any agclll or
<br />agents il lIlay desire for the purpose of repairing said premises ;llld
<br />of reming the same and collecting the rents, re\'ellues and income.
<br />and it may payout of said income, all ':\penses of repairing said
<br />premises and necessary commis,ions and .:xpenses incurred in rent-
<br />ing and managing the ,ame and of collecting rentals therefrom;
<br />Ihe balance remaining, if any, to be applied toward the di>charge
<br />of said indebtedne,s,
<br />
<br />S_ That the Borrower will keep the improvements no" existlllg
<br />or hereafter erected on the property. insured as nUl\' be requi~ed
<br />from limc to time by the Lender agaiml lo,s b\ fire and mher
<br />hazards. casualties and comingencies in '>Ud1 amoullls and for 'ouch
<br />pcriod~ as Illay be rt'quired b\' (ht' LenJt'r and \\\11 pay promptly.
<br />when due. any premiullls on ~uch lIlsurance pr"\Ision for paymenl
<br />of which has not been made herembefore, ,\11 lI1,urarKe ,hall be
<br />carried in cl'mpanies approved by the Lender and the policie" and
<br />renewals Ihereof shall be held by the Lender and ha\'e attached
<br />thereto loss payabk dau,es in favor \1f and III form a,ceplable III
<br />the Lender _ In ev-ent of loss Borrower will give Immediate notice
<br />by lI1ail to the L.ender. \\'hD may make proof of ILw. if not made
<br />promplly by Borrower. and each imurance company concerned I'
<br />hereby authorlled and din'-.:ted lD makl' payment for ,uch loss
<br />directly to the Lender imtead of tu Ihe Borro"<'r :llId the L"nder
<br />jointly, and the imurance pr<.Kee<.l'o, or any pan thereof. may be
<br />applied by Ih<.' Lender at ils \1Plion ellher to Ih" reduction of Ihe
<br />indebtedne>s hereby secured or to Ihe r",lorallon or repair of the
<br />property damaged_ In e\enl of fored(l~l:rc \11 tlm II1SIlUlTlen! or
<br />other Iransfer of IItle to lhe mOllgag."d property in eXlinguishmel\l
<br />of the indebtedness secured hereby, all IIghl, lltle and illleresl of
<br />lhe Borrower in and 10 any ill\UranCl' pllhcles then 111 force ..hall
<br />pas> III the purchaser or granlee.
<br />
<br />9, Thai ,IS addilional and collateral se.:ufll~ for Ihe payment 111'
<br />the note described. and all S\lIlI!; to he,'!.lllll' due undl'r this illstrll-
<br />ment, Ihl' Borrower herl'hy assigns [0 thl' Lender all prCJftt"
<br />revenues, royalties. rights and benefits aC("flling to the Ilorrower
<br />under any and all oil and gas leases on said prenmes. wilh the
<br />righl to Jecein' and receipt for Ihe same and apply ihem 10 said
<br />indebtedness as well beiore as after default in the conditions of
<br />this instrument, and the Lender may demand, me for and IceOl'er
<br />any such paymellls when due and payable. but shall nol he re-
<br />quired so 10 do. This assignmclll i.. to terminate and become null
<br />and void upon release of this instrumcm,
<br />
<br />to. That the Borrower will keep the buildings upon said premises
<br />in good 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. That if the premises. or any part thereof, be condemned
<br />uilder the power of eminem domain, or acquired for a public use,
<br />the damages awarded, the proceeds for the taking of, or the con.
<br />sideration for such acquisition, [0 the extem of the full allloum of
<br />indebtedness upon this inslfllmelll and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower 10
<br />the Lender, and shall be paid forthwith 10 said Lender to be ap.
<br />plied by the latter on account of the next maturing installments of
<br />such indebtedness.
<br />
<br />12, The Borrower further agrees that should this instrumem and
<br />the note securcd hereby not be eligible for lIlsurancc under the Na-
<br />tional Housing Act within eight mOlllhs from the date hereof
<br />(wrinen statcmcnt of allY officer of the Departmell! of Housing
<br />and Urban Developmell! or alllhorized agenl of the Secretary of
<br />Housing and Urban Del'elopmelll dated ,ubsequell! to the eight
<br />months' time from the dale of this in,trumell!. declining to insure
<br />said note alld Ihis mortgage, being decmed cOllcJusi\'e proof of
<br />such ineligibility). Ihe Lender or holder of the note may, at its op-
<br />lion, declare all sum, seclIIl'd hereby immediately due and payable.
<br />'\;01\\ ith~tanding the foregoing, thi~ option may not be exercised
<br />by the Lender or the holder of (hc note when the ineligibility for
<br />in,mallce under the National Housing Act is due to the Lender's
<br />failur.: to remit the morlgage inslllance premium to the Depart-
<br />ment or Housing and Urban De\'eopment.
<br />
<br />13, That if the Borrower fails to make any paymellls of money
<br />\\liet; Ihe sallle become due, or fails to conform to and comply
<br />I\!ih an\' of th,' .:onditions or agreements contained in this instru-
<br />ment, or the note which il secures, thcll the entire principal sum
<br />and iJ<;Lrlled interest shall al once become due and payable, at the
<br />e1e"tion of Ih.: Lender.
<br />
<br />Lender ,hall gi\C notice to narrower prior to acccleralion
<br />f,1(llming Borrower's breach of any co\,enant or agreement in this
<br />instrument (bllt nOI prior to acceleration under paragraph 12
<br />lIllless applicable law prO\'ides other\\'ise). The notice shall specify:
<br />(a) lhe default; (b) the action required 10 cure the default; (c) a
<br />date, not less [fmn .30 days from the dale the notice is given to
<br />BornJ\\er, by which the default must be cured; and (d) that failure
<br />to ,'me Ihe default on or before the date specified in the notice
<br />may resull in acceleration of the sums secured by this inslrument
<br />and ,ale of Ihe Property. The notice shall further inform Borrower
<br />of the right 10 reinstate aftcr acceleration and the right to bring a
<br />COIlr! action 10 asscrl the nOIl.existence of a default or any other
<br />defense of Borrower to acceleration and sale. If the default is not
<br /><:lIled 011 or before the date specified in Ihe notice, Lender at its
<br />option may rcquire immediate payment in full of all sums secured
<br />by Ihi, instrument without further demand and may invokl' the
<br />power of sale and any other remedies permilted by applicable law.
<br />Lender shall be entitled [0 collect all expenses incurred in pursuing
<br />the remedies provided in thi~ paragraph 13, including, but not
<br />limited to, reasonable allorncys' fees and cosls of title e\'idence.
<br />
<br />If the power of sale is in\'oked, Trustee ~hall record a notice of
<br />default in eacli l'ounty in which any part of the ProperlY is located
<br />and shall mail copies of such Ilotice in the manner prescribed by
<br />applicable law to Borro\\'er and 10 the other ~'.;rsons precribed by
<br />applicable law. After the time required by applicable law, Trustee
<br />,hall gi\'e public notice of sale to [he persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Bor-
<br />lOWer, shall sell the Properly at publk 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 in any order Trustee
<br />determines. Trustee may postpone sale of all or any parcel of the
<br />Property hy public announcement at lhe time and place of any
<br />previ':l!Isly scheduled sale. Lender or its designee may purchase the
<br />Property at any sale.
<br />
<br />Upon reccipt of payment of the price bid, Trustee shall deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the pro-
<br />cC(ds of [he sale in the following order; (a) to all expenses of the
<br />,ale, induding, but not limiled to, Trustee's fees as permitted by
<br />applicable law and reasonable attorneys' fee:;; (b) to all sums
<br />occurI'd by this Security Instrument; and (c) any excess to the per-
<br />son or persons legally entitled to it.
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