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<br />88- 103425
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<br />made shall be added to the principal sum owing on the above
<br />note, shall be secured hereby, and shall bear interest at the rate set
<br />forth in the said note. until paid,
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<br />7. That the Borrower hereby assigns, transfers and sets over to
<br />the Lender, to be applied toward the payment of the note and all
<br />sums secured hereby in case of a rlefliult in the performance of
<br />any of the terms and conditions of this instrument or the said
<br />note, all the rents, revenues and income to be derived from the
<br />said premises during such time as the indebtedness shall remain
<br />unpaid. and the lender shall have I)Qwer 10 appc>int 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 may payout 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 Iherefrom;
<br />the balance remaining, if any, to be applied IOward the discharge
<br />of said indebtedness,
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<br />8, That the Borrower will keep the improvements now exisling
<br />or hereafter erccted on the property, insured as may be required
<br />from time to time by the Lender againsl loss by fire and olher
<br />hazards. casualties and conting.:ncies in such amounts and for su~'h
<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 becn made hereinbefore. All insurance shall be
<br />carried in companies approved by the lender and the policies and
<br />renewals thereof shall be held b~' I he lender and have allached
<br />thereto loss payable clauses in favor of and in form acceptable 10
<br />the Lender, In event of loss Borrower will give immediate notice
<br />by 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 direcled 10 make paymenr for such loss
<br />directly to the lender instead of 10 lhe Borrower and the lender
<br />jointly, and the insurance proceeds, or any part I hereof, may be
<br />applied b)' the lender al its option either 10 the reduction of the
<br />indebtedness hereb)' secured or to Ihe reitoration or repair of Ihe
<br />property damaied. In l.'''t:n1 of foreclmure of Ihis inmument or
<br />other transfer of tille III lhe mortgaged property in extinguishment
<br />of the indebtedness se~:'Ured hereby, all right, title and interest of
<br />the Borrower in and to an)' insurance polici~ then in force shall
<br />pass to Ihe purchaser or granlee.
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<br />9. That a.\ additional and collateral security for the paymem of
<br />the note described, and all sums 10 become due under Ihis instru-
<br />ment, the Borrower hereby lIJlSlgns 10 the Lender all profits,
<br />revenues, royalties, ng'.u and benefits accruing 10 the Borrower
<br />under any and all oil and gas leases on said premises, with the
<br />right to receh'e and receipt for Ihe 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, sut: for and recover
<br />any such paymenls when due and payable, but shall not be re-
<br />quired so to do, This assignment is 10 terminale and become null
<br />and void upon release of this instrument.
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<br />10. That the Borrower will k,'Cp the buildings upon said premi~'S
<br />in good repair. and neither commil nor permit waste II pon said
<br />land, nor suffer the said premises [0 be used for any unlawful
<br />pUt pose.
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<br />11. That if the premises. or any pari thereof. be condemned
<br />under the power of eminent domain, or acquired for a public use,
<br />the damaaes awarded. the prOl:<<ds for the taking of. or the con-
<br />sideralion for such acquisition. 10 the extent of the full amount of
<br />indcbtNnns upon this instrument and the note which il is given w
<br />secure remamina unpaid, are hereby assigned by the Borrower to
<br />the Lt:nder, and shall be paid forthwith to said Lender III be lip-
<br />plied by the Ialter on account of the ne;.;t maturing 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 />(writlen 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 eighl
<br />months' time from the date of this instrument, declining to insure
<br />said nole 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 />Notwilhstanding the foregoing, this option may not be exercised
<br />by the Lender or Ihe 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 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 same become due, or fails to conform to and comply
<br />with any of the conditions 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 payabie. at the
<br />election of the lender.
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<br />lender shall give nalice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrumem (but nOt 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 gi\'en 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 Propeny. The notice shall further inform Borrower
<br />of the right [0 reinstate after acceleration and the right to bring a
<br />court action 10 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 im'oke the
<br />power of sale and any other remedies permitted by applicable Ia\\'.
<br />lender shall be entitled to 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 evidence.
<br />
<br />If the power of sale 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 [0 Borrower and t" the other persons precribe<i by
<br />applicable law. After the time required b~' applicable la"", Trustee
<br />~hall give public notk-e of sale 10 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 parl."els and in any order Trustee
<br />detemlines, Trustee may postpone sale of all or any parcel of the
<br />Property by public announcement at Ihe 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, Trustee shall deli\'er
<br />10 the purchaser Truslee's deed conve)'ing the Property. The
<br />recitals in the Trustl.'C's deed shall be prima fade evidence of the
<br />truth olthe stalements made therein, Trustee shall apply the pro,
<br />ceeds of the sale in the following order: (a) to all expenses of the
<br />~ale. including, bUI not limited to, Trustee's fees as permillcd by
<br />applicable law and reasonable atlonleys' fl.'Cli; (b) [0 all sums
<br />secured by this Security Instrument; and (c) any excess to the per,
<br />sun or persons legally entilled to it.
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