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<br />88- 103795
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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 />aulhorized 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 property
<br />damaged, In event of foreclosure of this instrument or other transfer
<br />of title to the m0i1gaged property in extinguishment of the
<br />indebiedness secured hereby. all right, title and interest of the
<br />Borrower in Ilnd to any insurance policies then in force shall pass to
<br />the purchaser or grantee,
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<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 proIiL~. revenues,
<br />royalties, rights and benefits accruing to the Borrower under any and
<br />all oil and gas leases on said premi.'ieS. with the right to rec;ci ve and
<br />receipt for the same and apply them to said indebtedne~~ as well
<br />before as after default in the conditions of this instrument, and Ihe
<br />Lender may demand. sue for and recover any such payments when
<br />due and payable. but shall not be required so 10 do. Thl~ a.'iSignmem
<br />is to terminate and become null and void upon release of Ihis
<br />instrument.
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<br />10, That the Borrower will keep the buildings upon sa.ld premises
<br />in good repair, and nelthe, commit nor permit waste upon saId land,
<br />nor sutTer the said premises to be used for any unlawful purpose
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<br />II. That if the premlSa. or any part thereof. be condemned under
<br />the power of eminent domam, or acquired for a public use, the
<br />damages awarded. the proceeds for the taking of. or the
<br />conside~tion 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 laner on account of the next maturing installmenl~ of such
<br />indebtedness.
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<br />12. The Borrower further agrees that should thi5 IOstriJment and
<br />the note secured hereby not be diBible for insurance under the
<br />National Housing Act within eigbt montbs from the date hereof
<br />(written statement of any offICer of the Department of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subscquenlto the eight months' time
<br />from the date of this instrument, declining to Insure said note and
<br />tbis morCp&c, being deemed conclusive proof of such meligibility),
<br />the Lender or holder of the note may, at its option. declare all sums
<br />secured hereby immediately due and payable. Notwithstanding lhe
<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 />lIlOftPIe insurance premium to the Department of Housing and
<br />Urban Development.
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<br />13, That if the Borrower fails to make any paymenlS of money
<br />when the same become due. or fails to conform to and comply With
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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 />inlerest shall at once become due and payable. at the election of the
<br />Lender,
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<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any coven~n~ cr 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 tbe default: (c) a date. not less
<br />than 30 days from tbe 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 assert the non-
<br />existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before tbe 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 permilled by applicable law, Lender shall be entitled to
<br />colle!.'t 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,
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<br />If the power of sale IS ,"voked. 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 prcst:ribed by
<br />applicable law to Borrower aod to the other pc~ns prescribed by
<br />applicable law, After the time required by applicable law. Trustee
<br />shall gIve pubhc notice of sale to the persons and in tbe manner
<br />prescribed by applicable law, Trustee. without demand on Borrower.
<br />shall sell the Property at public auction to the highest bidder al the
<br />time Bnd place and under the terms designated in the nOlice of sale
<br />in one or more parcels and in any order Tru.~ee determines, Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement at the: lime and place of any previously scheduled
<br />sale. Lender or its desiBn<< may purchase the Property at any sale,
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<br />Upon receipt of plI)'ment of .he pnl'C bId. Truslee shall deliver to
<br />Ihe purchaloCl 'Trustee', deed !.'onveYlng the Property. The recitals in
<br />.he Trustcc's deed shall ~ pomll faCIe evidenl'C of the truth or the
<br />state menu made therein. Trustee \hall apply the proceeds of the sale
<br />In the: follOWing order: II) to all expe.'ses of the sale, including. but
<br />notlimlled to, Tru\tee's fees a.\ permllled by applicable law and
<br />reasonable allorneys' fees; (b) tn all sums secured by this Security
<br />Instrument; and Ie) any ellcess to the person or person.\ legally
<br />entitled to It
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<br />14, Upon accelerallon untki paragraph 13 or abandonment of the
<br />Property. Lender (in person, by agent or by judicially appointed
<br />receiver) shall be entilled to enter upon, take possession of and
<br />manqe the Property and to collect the rents of the Property
<br />including those past due, Any renlS collected by Lender or the
<br />receiver shall be applied first lO payment of the cosl\ of management
<br />of the Properly and collection of renl\, including. but not limited tll,
<br />rcccl\'er's fees, premiums on receiver's bonds and reasonable
<br />auorncy's fees. and then 10 the sums secured by this instrument
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<br />PallO 3 01 5
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<br />HUD.12 t UDT . t
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