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<br />88- 104129
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<br />Lender. In event of loss Borrower will give immediate notice by
<br />mail to the Lender. who may make proof of loss if not made
<br />promptly by Borrower, and each insurance company concerned
<br />is hereby authorized and directed to make payment for such loss
<br />directly to the Lender instead of to the Borrower and the
<br />Lender jointly. and the insurance proceeds, or any part thereof,
<br />may be applied b~ the Lender at its option either to the
<br />reduction of the indebtedness hereby secured or to the
<br />restoration or repair of the property damaged. In event of
<br />foreclosure of this instrument or other transfer of title to the
<br />mortgaged property in extinguishment of the indebtedness
<br />secur~ hereby, all right, title and interest of the Borrower in
<br />and to any insurance policies then in 'force shall pllSS to the
<br />purchaser or grantee.
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<br />9. That as additional and collateral security for the payment
<br />of the note described, and all sums to become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />profits. revenues, royalties, rights and benefits accruing to the
<br />&rrower under any and all oil and gas leases on said premises,
<br />with the right to receive and receipt for the same and apply
<br />them to said'indebtedness as well before as after default in the
<br />conditions of this instrument, and the Lender may demand, sue
<br />for and recover any such payments when due and payable, but
<br />shall not be required so to do. This assignment is to terminate
<br />and become null and void upon release of this instrument.
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<br />10. That the Borrower will keep the buildings upon said
<br />premises in good repair, and neither commit nor permit waste
<br />upon said land, nor suffer the said premises to be used for any
<br />unlawful purpose.
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<br />II. That if the premises. or any part thereof, be condemned
<br />under the power of eminent domain, or acquired for a public
<br />use, the damlllles awarded, the proceeds for the taking of, or
<br />the consideration for such acquisition, to the extenl of the full
<br />amount of indebtedness upon this instrument and the note
<br />which it is given to 5el:UI'e remaining unpaid. are hereby assigned
<br />by the Borrower to the Lender, and shall be paid forthwith to
<br />said Lender to be applied by the latter on accounl of the neXI
<br />maturing installments of such indebtedness.
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<br />12. The Borrower further asrees that should this instrument
<br />and the note secured hereby not be eligible for insurance under
<br />the National Housins Act within eight months from the date
<br />hereof (written 5Wement of any officer of the Department of
<br />HousiDl and Urban DevelopDIeut or authorized agent of the
<br />Secretary of Housin& and Urban Development daled subsequent
<br />\0 the eight months' time from the date of this instrument,
<br />declining to insure said note and this mortgage. being deemed
<br />conclusive proof of such ineligibility), the Lender or bolder of
<br />the note may. at its option, declare all sums secured hereby
<br />immediale1y due and payable. NotwithstandiDl the foregoing,
<br />this option may not be exerc:i&ed by the Lender or the holder of
<br />the DOte when the ineligibility for insurance under the National
<br />HOIIIin& Act is due to the Lender's failure to remit the
<br />mortp&c 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 payments of money
<br />when the ume become due. or fails to conform to and comply
<br />with any of the conditions or agreements contained in this
<br />inJtrument. or the note which it secures, then the entire
<br />princ:ipal sum and aa:rued interest shall al once become due and
<br />payable, at the election 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
<br />this instrument (but not prior to acceleration under paragraph
<br />12 unless applicable law provides otherwise). The notice shall
<br />specify: (a) the default; (b) the action required to cure the
<br />default; (c) a date, not less than 30 days from the date the
<br />notice is given to Borrower, by which the default must be cured;
<br />and (d) that failure to cure the default on or before the date
<br />specified In the notice may result in acceleration of the sums
<br />secured by this instrument and sale of the Property. The notice
<br />shall further inform Borrower of the riglIt to reinstate after
<br />acceleration and the right to bring a court action to assert the
<br />non-existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before
<br />the date specified in the notice, Lender at its option may require
<br />immediate payment in full of all sums secured by this
<br />instrument without further demand and may invoke the power
<br />of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all elI;penses incurred in
<br />pursuing the remedies provided in this parasraph 13, including,
<br />but not limited to, reasonable attorneys' fees and costs of title
<br />evidence.
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<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
<br />located and shall mail copies of such notice in the manner
<br />prescribed by applicable law to Borrower and to the other
<br />persons prescribed by applicable law. After the time required by
<br />applicable law, Trustee shall give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee, without demand on Borrower, shall sell the Property at
<br />public auction to the highest bidder at the time and p1ace and
<br />under the terms designated in the notice of sale in one or more
<br />parcels and in any order Trustee determines. Trustee may
<br />postpone sale of all or any parcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Property at any
<br />sale.
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<br />Upon receipt of payment of the price bid. Trustee sha1l deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the
<br />proceeds of the sale in the following order: (a) to all expenses of
<br />the sale. includiq. bUf nOI limited to, Trustee's fees as
<br />penniued by applicable law and reasonable attorneys' fees: (b)
<br />to all sums secured by this Security Instrument; and (c) any
<br />excess to the perlOn or persons legally entitled to it.
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<br />14. Upon acceleration under paragraph 13 or abandonmeut of
<br />the Property. Lender (in perlOn, by agent or by judic:ially
<br />appointed receiver) shall be entitled to enter upon, take
<br />poslICSsion of and manqe the Property and to collect the renu
<br />of the Property includiDl those past due. Any rents collected by
<br />Lender or the receiver shall be applied rust to payment of the
<br />costs of management of the Property and coUec:tion of rents,
<br />includiDl, but not limited to, receiver's fees, premiums (,-D
<br />receiver's bonds and reasonable attorneys' fe:s, and theu to the
<br />sums secured by this instrument.
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<br />Pall. 3 of 5
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<br />HUO.921 430T.'
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