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<br />88- 1027'01
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<br />made shall be added 10 the principal ,UIll ow 109 on [he above
<br />note, ,hall be secured hereby, and ,hall bear mlerest at Ihe rate set
<br />forth in Ihe said note. umil paid.
<br />
<br />7. That the Borrower hereby assigns, transfers and ,ets over to
<br />the Lender. 10 be applied toward Ihe payment of the nOle and all
<br />sums secured hereby in case of a defaulr in rhe performance of
<br />any of the terms and conditions of this instrument or the said
<br />note, all Ihe rems, revenues and income to be derived from [he
<br />said premises during such time a, rhe indebtedne,' shall remain
<br />unpaid, and the Lender shall have power to appoim any agcm or
<br />agem, il may desire for lhe purpose of repaIring ,aid premises and
<br />of [enllng the same al1d collecting [he rents, revenues and income,
<br />and il may pay oul of said incomes all expen,e, of repairing ,aid
<br />premise, and necessary commissions and expen,e, ilKurred in rent-
<br />mg and managing the ,a me and of collecting rentai'> therefrom;
<br />Ihe balanct' remaining, if any, to be applied 10\\ ard the disc'harge
<br />of ,aId mdebtedne,>,>,
<br />
<br />R, fhat the Borrc)\\er \\ill "eep the imprnlcmenl' now e\i,ting
<br />or hereafler erec-Ie": 011 the property, insured a, may bt' required
<br />from time to lime by [he Lender against 10>'> by rire and other
<br />h~zards, ca,ualties and contmgencie, in 'lIdl amoum, and for ,uch
<br />penods a, may bt' required bl the Lender and will pay promptly,
<br />1\ hen due, any premium, on 'l1l'h m,urance pro\ i,ion for paymem
<br />of 1\ hich ha, not been made hereinbefore, :\11 imurance ,hall be
<br />carried 111 ,om panic, apprm cd by Ihe Lel1der and Ihe policie, and
<br />rene\\ab lhereof ,hall be held by the Lender and have attached
<br />[herelO 10>'> payable dau,e, in fa\or of and in form acceptable to
<br />[he Lender, 111 event of 10" Borrower will gIve immediate notice
<br />by mail to lhe Lender, 1\ ho may make proof of 10" if not made
<br />promptly by Borrtmer, and each insurance company concerned i,
<br />hereby authoriled and directed to make paymem for such los,
<br />directly to lhe lender in,tead of to lhe Borrnwer and the Lender
<br />joimly, and the imurance proceed~, or any part thereof, may be
<br />applied by the Lender at its option either to the reduction of lhe
<br />indebtedne" hereby ,ecured or 10 Ihe re,loratlon or repair of the
<br />propeny damaged, In event of foreclosure of this imtrument or
<br />or her lransfer of tirk to the mortgaged property in extinguishmem
<br />of the indebtedness secured hereby, all righi, title and interest of
<br />the Borrower m and to any insurance policie, {hen in fprce ,hall
<br />pass to t he purchaser or grantee,
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<br />9, Tbat as additional and collateral 'ec'uTlt\ 1'01 the paymt'nl 01
<br />the Iwte described, and all SUIllS to oec'<lIlle dtlt' IlIHit'r I hi' IIlst rll'
<br />ment, the Borrower hereby assigns to the lenlkl alll'l(lIIIS,
<br />revenues, royalties, righrs and benefit<, ac'clllln~ 1(1 Illl' BOrrO\H'1
<br />under any and all oil and gas lea'>(~, un ,aId plellll'l'" With Iht'
<br />right to receiv'e and receipt for [he 'amt' and df'pl\ Ihem 1(1 ,aid
<br />indebtedness as well before as after default In I he c'ondlllon' 01
<br />this instrumenl. and rhe Lender may demand, 'Ul' llll and Il'CUlt'!
<br />any such payments when due and payable, bUI ,hall nUl he Il'.
<br />quired so 10 do, This assignmem is III lel'llllllale and ht'Cllllll' I1l1ll
<br />and void upon release of this instrument.
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<br />10. That the Borrower will keep Ihe buildings upon said prem!'>e'
<br />in good repair, and neither commil nor permit waste upon ,aid
<br />land, nor suffer rhe said premises ro be used for any unlawful
<br />purpose.
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<br />II, Thar if the premises, or any pan thereof, be condemned
<br />under the power of eminent 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. to the extent of the full amOUnl of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by [he Borrower 10
<br />the Lender, and shall be paid forthwith to said Lender to be ap-
<br />plied by the latter on aCCOUnl of the next maturing installments of
<br />such indebtedness,
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<br />] 2, The Borrower fun her agrees that should [his inJtrumenl and
<br />[he note secured hereby not be eligible for insurance under the Na-
<br />[ional Housing Act within eight months from the date hereof
<br />(wrinen slatement of any officer of rhe Depanment of Housing
<br />and Urban Development or aUlhorized agent of the Secretary of
<br />Housing and Urban Development dated subsequent ro the eight
<br />mOnlhs' time from Ihe date of this instrument. declining to insure
<br />said note and this mortgage, being deemed conclusive proof of
<br /><,uch ineligibiliry), the Lender or holder of the note may, at its op-
<br />tion, declare all sums secured hereby immediately due and payable.
<br />Notwithstanding the foregoing, this option may not be exercised
<br />by the Lender or rhe holder of the note when the ineligibility for
<br />msurance under the National Housing Act is due to the Lender's
<br />failure to remit the mongage insurance premium to the Depan-
<br />ment of Housing and Urban Deveopment,
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<br />13, That if the Borrower fails to make any payments of money
<br />when the ,ame become due, or fails ro conform to and comply
<br />wit h any of the conditions or agreemems contained in this instru-
<br />ment, or the note which it secures, rhen the entire principal sum
<br />and accrued interest shall at once become due and payable, at rhe
<br />election of the Lender.
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<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (bur nOl prior to acceleration under paragraph 12
<br />unle" applicable law provides otherwise), The notice shall specify:
<br />(a) the default: (b) [he action required to cure the default; (c) a
<br />date, not less than 30 days from the date the notice is given to
<br />Borro\\ er, by which the default must be cured; and (d) that failure
<br />to cure I he default on or before the date specified in the notice
<br />may resull in acceleration of rhe sums secured by this instrument
<br />and sale of the Property, The notice shall further inform Borrower
<br />of [he right 10 reinstate after acceleration and rhe right to bring a
<br />court action to assert the non-existence of a default or any other
<br />defeme 0 f 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 instruhlent without 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 />lhe remedies provided in this paragraph 13. including, but not
<br />limited to, reasonable attorneys' fees and costs of title evidence.
<br />
<br />I r the power of sale is invoked, Trustee shall record a notice of
<br />default in each coumy in which any part of the Property is located
<br />and ,hall mail copies of such notice in the manner prescribed by
<br />applIcable law to Borrower and 10 the other persons precribed by
<br />applicable law. After the time required by applicable law, Trustee
<br />,hall give public nor ice 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 highest bid-
<br />der at rhe 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 />ProperlY by public announcement at the time and place of any
<br />previously scheduled sale. Lender or its designee may purchase the
<br />Propert y at any s~le.
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<br />Upon receipt 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 />[ruth of the statements made therein, Trustee shall apply the pro-
<br />ceeds of the sale in the following order: (a) to all expenses of the
<br />sale, including, but not limited to, Trustee's fees as permitted by
<br />applicable law and reasonable attorneys' fees; (b) to all sums
<br />secured by this Security Instrument; and (c) any excess to the per-
<br />son or persons legally entitled to it.
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