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<br />88- 102755
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<br />milde shaH be added to the principal sum owing on the above
<br />nOle, shall be secured hereby, and shall bear interest at the rate set
<br />fonh in the said note, until p?;d.
<br />
<br />7. That the Borrower hereby assigns, transfers and sets over to
<br />Ihe Lender, 10 be applied IOward [he payment of [he nOle and all
<br />sums secured hereby in case of a defauh in the performance of
<br />any of Ihe terms and conditions of !his instrument or [he said
<br />nOle, all the rents, revenues and income 10 be derived from the
<br />said premises during such time as the indebledness shall remain
<br />unpaid, and the Lender shall have power 10 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 ma:i pay out of said incomes 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 remaining, if any, 10 be applied toward [he discharge
<br />of said indebtedness.
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<br />8. That the Borrower will keep the imprmements 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 ;1JL'h amounts and for slIch
<br />periods as may be required by the lender and will pay promptly,
<br />when due, any premiums on such insurance pro\1sion for payment
<br />of which has not been made hereinbefore All msurance ,hall be
<br />carried in companies approved by the lender and the policies and
<br />renewals thereof shall be held by [he lender and have attached
<br />thereto loss payable clauses in favor of and In form acceptable to
<br />the lender_ In event of loss Borrower \\J1l gl\C Immediate notke
<br />by mail to Ihe 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 1055
<br />dlfcc'tly to the Lender instead of 10 I he Borrower and the Lender
<br />jointly. and the insurance proceeds, or any pan thereof, may be
<br />applied by the lender at ils option either 10 the reduction of the
<br />indebledness hereby secured or to the resroration or repair of the
<br />propen~ damaged. In event of foreclmure of Ihi, imtrument or
<br />olher tran-fer of lille 10 the morrgaged propeny in extinguishment
<br />of the II1debledness secured hereby, a1l rIght. IItle and interesl of
<br />Ihe BOITO\\er In and 10 an) Insurance policie, Ihen in force shall
<br />pass to the purchasel or grant ee_
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<br />9. Thai as addlllOnal and collateral security for the payment of
<br />the IlUll. lk~nlbed. and all sums to become due under this instru-
<br />llIent. the Burruwer hereby assigns to the Lender all profits.
<br />revenues, f(lyallles. rights and benefits accruing 10 the Borrower
<br />under am and all oil and gas leases on said premIse" with the
<br />righl to receive and receipt for the same and apply Ihem [Q ,aid
<br />indebtedness as well before as after default in Ihe conditions of
<br />this instrument. and the Lender may demand, sue for and recmer
<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 \oid upon release of this instrument.
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<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neit her commit nor permll waste upon said
<br />land, nor suffer Ihe said premises 10 be used for any unlawful
<br />purpose.
<br />
<br />] I ThaI if the premi,es, or any parr thereot. be "ondemned
<br />under lhe power of eminent domain. or acquired for a public use,
<br />the damages awarded. the procccds for lhe taking of, or the con-
<br />sideration for such acquisilion, to the extent of the full amount of
<br />indebtedness upon this instrument and the not... which it is given 10
<br />secure remaining unpaid. are hereby aSSIgned by the Borrower to
<br />the Lender. and shall be paid forthwith 10 said lender to be ap-
<br />plied by the laller on account of the neXl malunng installments of
<br />such indebtedness.
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<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 Housing 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 Development dated subsequent to the eight
<br />months' time from the date 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, al 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 the holder of the note when the ineligibility for
<br />insurance under the Na[ional Housing Act is due to the Lender's
<br />failure to remit the mortgage insurance premium to the Depan-
<br />ment of Housing and Urban Deveopmenl.
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<br />] 3. That jf the Borrower fajls to make any payments of money
<br />when the same become due, or fails to conform to and comply
<br />with any of the conditiuns or agreements contained in this instru-
<br />ment. or the note which it secures, then the entire principal sum
<br />and accrued interest shall at once become due and payable, at the
<br />elect ion 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 (but not prior [0 acceleration under paragraph 12
<br />unless applicable law provides 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 10
<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 resull in acceleration of the sums secured by this instrument
<br />and sale of the Property. The notice shall funher inform Borrower
<br />of the right to reinstate after acceleration and the right to bring a
<br />court action to assert the non-existence 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 further demand and may invoke the
<br />power of sale and any other remedies permitted by applicable law_
<br />Lender shall be entitled 10 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 e\idence.
<br />
<br />I f the power of sale is invoked, Truslcc shall record a notice of
<br />default in each county in which any part of the Property is located
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law to Borrower and to the other persons precribed by
<br />applicable law. After the time required by applicable law. Trustee
<br />shall give public notice of sale 10 the persons and in the manner
<br />pres.:ribed by applicable law. Trustee, v.;thoU1 demand on Bor-
<br />rower. shall sell the Property at public 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 Trustcc
<br />determines. Trustcc may postpone sale of all or any parcel of the
<br />Propeny by public announcement at the time and place of any
<br />previously scheduled sale. Lender or its designee may purchase the
<br />Property at any sale_
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<br />Upon receipt of payment of the price bid, Trustcc shall deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie e\idence of the
<br />truth 01 the statements made therein. Trustee shall apply lh... pro-
<br />ceeds of the sale in the following order: (a) to all expenses of the
<br />sale, including, but not limited 10, Trustcc's fccs as permitted by
<br />applicable law and reasonable allomey;' fees; (bl to all sums
<br />secured by this Security Instrument; and (cl any excess 10 the per-
<br />son or persons legally entitled w it.
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<br />Pa~e 3 of 5
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<br />HUD-92143DT
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