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<br />88
<br />
<br />RE.RECORDED
<br />102798
<br />
<br />i88_
<br />
<br />102604
<br />
<br />made: ..ha1l be: adde:d to lhe prrn':lp,,1 ..urn 0\\ ing on the above
<br />nOle. ..hall be ..ecured hereby, and ..hall bear interest a[ the rale ..et
<br />lorlh In the ..aid note, until paid.
<br />
<br />7, Tha[ Ihe Borrower hereby a,slgns, tran,fer.. and sets over to
<br />the Under, 10 be applied to\\ard lhe payment of the note and all
<br />..urn.. secured hereby in case of a default in the performance of
<br />any of Ihe term.. and conditions of this instrument or the said
<br />nOle, all the rem.., revenues and income to be derived from the
<br />..aid premi..e, during ..uch lime a.. Ihe indebtedne.... shall remain
<br />unpaid, and the Lender ,hall have .power to 3ppoim any agem or
<br />agenl.. it may de"lTt: for [he purpose of repairing ..aid premises and
<br />of reJ1ling the ..ame and collecting the rents, revenues and income,
<br />and il may pay OUI of said incomes all expenses of repairing said
<br />preml..es and neces..ary commissions and expenses incurred in rent-
<br />ing alltl managing lhe same and of collecting rental'> therefrom;
<br />th~' balance remaining, if an), to be applied to\\ ard thc di,dlarge
<br />"I' ,aid indebrcdne.....
<br />
<br />II, fhal Ihe Borrov\er v,ill keep the impro\emem.. nO\1 e'Xi..ling
<br />\11 hereafter erected on Ihe propeny, insured a.. ma) be requm:d
<br />from time to time by the lender against la;,.. by fire and olher
<br />h.l/ard.., \'a..ualtie.. and contingencie; in ..uch amount.. and for ..uch
<br />perlUJ.. a.. may be required by the lender and will pay promptly,
<br />\1 hen dlJe, any premium.. on 'uch insurance provision for payment
<br />\)1 \1 hich has not been made hereinbefore. All insurance ..hall be
<br />L'arr:ed in companie.. approved by Ihe lender and the policies and
<br />r('n('\\ als thereof shall be held by the lender and have altached
<br />t heretn 10.... payable dause, in favor of and in form acceptable 10
<br />Ih~' Lender. In event of loss Borrower will give immediate notice
<br />by mail 10 [he lender, who may make proof of loss if not made
<br />prl)mplly by Borrower. and each insurance company concerned is
<br />heret)) authorized and directed to make payment for such loss
<br />dlreclly tl) the lender instead of 10 the Borrower and the lender
<br />jointly, and the imurance proceeds, or any pan thereof, may be
<br />applied b) the lender at its option either to the redu('tion of the
<br />lIldebtedness hereby secured or to the restoration or repair of the
<br />propeny damaged. In event of foreclosure of this instrument or
<br />other tramfer of title 10 the mortgaged propeny in extinguishment
<br />of the indebtedness secured hereby, all righI, title and interest of
<br />the Borrower in and to any insurance policie.. then in force shall
<br />pa", to the purchaser or grantee.
<br />
<br />9. That as additional and collateral securit) for the payment d
<br />the note Jescnbed, and all sums to become due under thi, instru.
<br />ment. the Borrower hereby assIgns to the lender all profits,
<br />revenues, 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 r('ceive and rel.eipt for the same and apply them 10 ..aid
<br />indebtedness as well before as afler 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 rc-
<br />quired so 10 do. This assignment is to termlI1ate and become null
<br />and void upon release of [his instrument.
<br />
<br />10. 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 />I L That 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 amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower to
<br />the lender. and shall be paid forthwith to said Lender to be ap-
<br />plied by the latter on accoulll of the next maturing installments of
<br />such indebtedness.
<br />
<br />12. The Borrower further agrees thaI should this instrument and
<br />[he note secured hero:by not be eligible for insurance under the Na-
<br />!lanaI Housing Act within eight months from the date hereof
<br />(wrillen statemcnt of .IIlY officer of the Depanmelll 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 [his instrument, declining to insure
<br />said note and this mongage, being deemed conclusive proof of
<br />'uch ineligibility), the lender or holder of the note may, at its op-
<br />tion, declare all sums secured hereby immediately due and payable.
<br />~olwithstanding the foregoing, this option may not be exercised
<br />by the lender or the holder of Ihe note when the ineligibility for
<br />insurance under the National Housing Act is due to the Lender's
<br />failure to remit the mongage insurance premium to the Depart-
<br />ment of Housing and Urban Deveopmenl.
<br />
<br />13. That if the Borrower fails 10 make any payments of money
<br />"hen the same become due, or fails to conform to and comply
<br />with any of the condiliollS 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 />election of the lender.
<br />
<br />lender shall give notice to Borrower prior to acceleration
<br />follo\\ ing Borrower', breach of any covenant or agreement in this
<br />il15trument (but nO! prior to 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 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 this 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 />coun 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 to collect all expenses incurred in pursuing
<br />[he remedies provided in this paragraph 13, induding, but not
<br />limited to, reasonable allorneys' fees and costs of title C'v'idence.
<br />
<br />I f the power of ,ale is invoked, Trustee 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 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 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 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.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deiiver
<br />to the purchaser Trustee's deed conveying the Propert)'. The
<br />recitals in the Trustee's deed ~hall be prima facie evidence of the
<br />truth 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, induding, but not limited to, Trustee's fees as permilled I;ly
<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.
<br />
<br />Pa~e 3, of 5
<br />
<br />HUD-92143DT
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