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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of loss if not made promptly by
<br />Borrower, and each insurance company concerned is hereby
<br />authorized and directed to make payment for such loss directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any part thereof, may be applied by the
<br />Lender at its option either to the reduction of the indebtedness
<br />hereby secured or to the restoration or repair of the propei'ly
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby, all right, title and interest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
<br />
<br />9. That as additional and collateral security for the payment of the
<br />note described, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits, revenues,
<br />royalties, rights and benefits accruing to the Borrower under any and
<br />all oil and gas leases on said premises, with the right to receive and
<br />receiPI for the same and apply them to said indebtedness as well
<br />before as after default in the conditions of this instrument, and the
<br />Lender may demand, sue for and recover any such payments when
<br />due and payable, but shall not be required so to do. This assignment
<br />is to terminate and become null and void upon release of this
<br />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 land.
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />
<br />II. That if the premises, or any pan thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damages awarded, the proceeds for the taking of, or the
<br />consideration 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 the
<br />Lender, and shall be paid forthwith to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
<br />
<br />12. The Borrower further agrees that should Ihis inslrument and
<br />the note secured hereby nOI be eligible for insurance under Ihe
<br />National Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Depanment of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eighl months' time
<br />from the date of this instrument, declining 10 insure said note and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the note may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not be exercised by the Lender or the
<br />holder of the note when the ineligibility for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortp&e insurance premium to the Department of Housing and
<br />Urban Development.
<br />
<br />13. That if the Borrower fails 10 make any payments of money
<br />when the same become due. or fails to conform to and romply wilh
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<br />88- ~u;,s;)u7
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<br />any of the conditions or agreements contained in this instrument, or
<br />the note which it secures, then the entire principal sum and accrued
<br />interest shall at once become due and payable, at the election of the
<br />Lender.
<br />
<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 to acceleration 'under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specify: (a) the
<br />default; (b) the action required to cure the default; (c) a date, not less
<br />than 30 days from the date the notice is given to Borrower, by which
<br />the default must be cured; and (d) that failure to cure the default on
<br />or before the date specified in the notice may result in acceleration
<br />of the sums secured by this instrument and sale of the Property. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action to assen the non-
<br />existence of a default or any other defense of Borrower to
<br />acceh;ration and sale. If the default is not cured on or before the date
<br />specified in the notice, Lender at its option may require immediate
<br />payment in full of all sums secured by this instrument without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shall be entitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but not limited to, reasonable
<br />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 to Borrower and to the other persons prescribed by
<br />applicable law. After the time required by applicable Jaw, Trustee
<br />shall give public notice of sale 10 the persons and in the manner
<br />prescribed by applicable law, Trustee, without demand on Borrower.
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and under the terms designated in the notice of sale
<br />in one or more parcels and in any order Trustee determines. Truslee
<br />may postpone sale of all or any parcel of the Propeny by pubJic
<br />announcement at the time and place of any previously scheduled
<br />sale, Lender or its designee may purchase the Propeny at any sale.
<br />
<br />Upon receipt of payment of the price bid. Trustee shall deliver to
<br />the purchaser Trustee's deed conveying the Propeny. The recitals in
<br />the Trustee's deed shall be prima facic evidence of the truth of tbe
<br />statements made therein. Trustee shall apply the proceeds of the saJc
<br />in the following order: (a) to all expenses or the sale.. including. but
<br />not limited to, Trustee's fees as permined by applicable law and
<br />reasonable attorneys' fees: (b) 10 all sums s<<ured by this StturilY
<br />Jnstrumen~ and (c) any excess to Ihc person or persons leeally
<br />entitled 10 it.
<br />
<br />14. Upon acceleralion under paragraph 13 or abandonmenl of the
<br />Property, Lender (in person. by agent or by judicially appointed
<br />receiver) shall be entitled to enter upon, lake pos.'iCSSion of and
<br />manage the ProperlY and 10 collecllhe rents of thc Property
<br />including those past due. Any rents collecled by Lender or lhe
<br />receivcr shall be applied firsl to payment of the costs of man~menl
<br />or Ihe Property and collection of renL~. including, hUl nul limited 10.
<br />receiver's fees. premiums on receiver's bonds and reasonablc
<br />attorney's fees, and then to Ihe sums secured by Ihis IDstrument.
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