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<br />8-10420;:: -
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<br />Lender. In event of loss Borrower wiU give immediate notic.A!y Lender shall give nOlice to Borrower prior to acceleration
<br />mail to the Lender, who may make proof of loss if not made following Borrower's breach of any covenant or agreemenl in
<br />promplly by Borrower, and each insurance company concerned this instrument (but not prior to acceleration under paragraph
<br />is hereby authorized and directed 10 make payment for such loss 12 unless applicable law provides otherwise). The notice shall
<br />directly to the Lender instead of 10 the Borrower and the specify: (a) Ihe default; (b) the action required to cure the
<br />Lender jointly, and the insurance proceeds, or any part thereof, defaull; (c) a d:1le, not less than 30 days from the date the
<br />may be applied by the Lender al ils option either 10 the notice is given to Borrower, by which the default must be cured;
<br />reduction of the indebledness hereby secured or to the and (d) that failure to cure the default on or before the dale
<br />restoration or repair of Ihe properly damaged. In event of specified in the nOlice may resull in acceleration of the sums
<br />foreclosure of this inslrument or other transfer of title to the secured by Ihis instrument and sale of the Properly. The notice
<br />morlgaged property in extinguishment of the indebtedness shall fUrlher inform Borrower of the righl to reinstate after
<br />secured hereby, all righI, title and interest of the Borrower in acceleralion and the right to bring a court action to assert the
<br />and 10 any insurance policies then in force shall pass to the non.existence of a default or any other defense of Borrower 10
<br />purchaser or granlee. acceleralion and sale. If the defaull is not cured on or before
<br />the date specified in the notia:, Lender at its option may require
<br />immediale payment in full of all sums secured by this
<br />inslrumenl wilhoul further demand and may invoke the power
<br />of sale and any other remedies permined by applicable Jaw.
<br />Lender shall be entitled to COUCCI all expenses incurred in
<br />pursuing the remedies provided in this paragraph 13, including,
<br />but nOI limited to, reasonable auorneys' fees and costs of title
<br />evidence.
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<br />9. Thai as additional and collaleral security for Ihe payment
<br />of the note described, and all sums to become due under thiS
<br />instrumenl, the Borrower hereby assigns to the Lender all
<br />profits, revenues, royalties, rights and benefits accruing to the
<br />Borrower under any and all oil and gas leases on said premises,
<br />with Ihe righl 10 receive and receipl for Ihe same and apply
<br />them to said indebtedness as well before as after dcfault 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 nOI be required so 10 do. This assignment is to terminale
<br />and become null and void upon release of this instrument.
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<br />10. That Ihe Borrower will keep the buildings upon said
<br />premises in good repair, and neilher commil 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. Thai if Ihe premises, or any pari thereof, be condemned
<br />under the power of eminent domain, or acquired for a public
<br />use, the damages awarded, Ihe proceeds for the laking of. or
<br />the consideration for such acquisition. to the extent of the full
<br />amounl of indebtedness upon this instrument and the note
<br />which it is given to secure remaining unpaid. are hereby assigned
<br />by the Borrower 10 the Lender, and shall be paid forthwith 10
<br />said Lender 10 be applied by the lalter on accounl of the next
<br />maturing installments of such indebledness.
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<br />12. The Borrower further agrees that should this instrument
<br />and the note secured hereby not be eligible for insurance under
<br />Ihe National Housing Act wilhin eight months from the date
<br />hereof (wrilten stalemenl of any officer of the Department of
<br />Housing and Urban Development or authorized !!Bent of the
<br />Secrelary of Housing and Urban Development dated subsequent
<br />10 the eighl months' time from the dale of this instrument.
<br />declining to insure said nole and Ihis mOrlgage. being deemed
<br />conclusive proof of such ineligibililY), the Lender or holder of
<br />tbe note may, al ils option, declare all sums secured hereby
<br />immediately due and payable. Notwithstanding the foregoing.
<br />this option may nOI be exercised by Ihe Lender or the holder of
<br />Ihe nole when the ineligibility for insurance under the National
<br />Housing Act is due 10 Ihe Lender's failure 10 remit Ihe
<br />mortlage insurance premium to the Department of Housing and
<br />Urban Development.
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<br />13. That if Ihe Borrower fails 10 make any payments of money
<br />wben Ihe same become due, or fails 10 conform 10 and comply
<br />witb any of tbe conditions or agreements contained in this
<br />instrument, or the note which it secures, then the entire
<br />principal sum and accrued interest shall at once become due and
<br />payable, at the election of the Lender.
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<br />If Ihe power of sale is invoked. Truslee shall record a notice of
<br />default in each county in which any part of the Property is
<br />located and sball mail copies of such notice in Ihe manner
<br />prescribed by &pplicable law '0 Borrower and 00 the other
<br />persons prescribed by applicable law. Afler Ihe 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. withoul demand on Borrower, shall sell the Property at
<br />public auction to the highesl bidder at the lime and place and
<br />under the terms designated in Ihe notice of sale in one or more
<br />parcels and in any order Truslee delermines. Trustee may
<br />postpone sale of all or any parcel of the Property by public
<br />announcement al the lime and place of any previously scheduled
<br />sale. Lender or ils designee may purchase the Property al any
<br />sale.
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<br />Upon receipl of paymeDl of the price bid. Truslee shaII deliver
<br />to the purchaser Trust~'& deed conveying the i>ropeny. The
<br />recitals in the Tru51ee'& deed shall be prima facie evidence of the
<br />Iruth of Ihe sUllements made Iherein. Trustee shall apply the
<br />proceeds of the sale in [he follOwing order: (a) to all expe:nscs of
<br />the sale. including. but nol limited 10, Trustee's fees as
<br />permined by applicable law and reasonable anorneys' fees; (b)
<br />10 all sums secured by this Security Instrument: and (c) any
<br />excess to the person or persons legally entitled to ;1.
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<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Property, Lender (in person, by a3em or by judicially
<br />appointed receiver) shall be entitled to enter upon, take
<br />possession of and manage Ihe Properly and 10 collCCl Ihe rents
<br />of Ihe Property including those past due. Any rents collCCled b)'
<br />Lender or Ihe receiver shall be applied firsl 10 paymenl of the
<br />costs of managemeDl of the Property and colle...1ion of rents.
<br />including, bur nOl limited to, receiver's fees. premiums on
<br />receiver's bonds and reasonable anorneys' fees, and then to the
<br />sums secured by this instrumeDl.
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<br />Page 3 of 5
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<br />HUD.92143DT.,
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