|
<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 by 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 thi!l instrument or other transfer of title to the
<br />mortgaged property in extinguishment of the indebtedness
<br />secured hereby. all right, title and interest of the Borrower in
<br />and to any insurance policics then in force shall pass to the
<br />purchaser or grantee.
<br />
<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 />Borrower 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 ,aid indebtedness as wc:ll 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. bm
<br />shall not be required so to do. This assignment is to terminate
<br />and become null and void upon release of this Instrument.
<br />
<br />10. That the Borrower will keep the buildings upon said
<br />premises in good repair, and neither commit nor permit waSle
<br />upon said land, nor suffer the said premises to be used for any
<br />unlawful purpose.
<br />
<br />II. ThaI if the premises, or any pan thereof, be condemned
<br />under the power of eminent domain, or acquired for a public
<br />use, the damages 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 il is given to secure remaining unpaid, are herehy assigned
<br />by the Borrower to Ihe Lender, and shall be paid fonhwith to
<br />said Lender to be applied by Ihe laller on account of the nexl
<br />maluring installments of such indebledness.
<br />
<br />12. The Borrower funher OJren that should this instrumem
<br />and the note scaJred hereby not be eligible for insurance under
<br />the National Housina ACI within eiaht momhs from Ihe date
<br />hereof (wrillen statemenl of any officer of Ihe Depanmenl of
<br />Housing and Urban Development or aUlhorized agent of Ihe
<br />Secretary of Hou.ina and Urban Development dated ,ubsequem
<br />to the eiaht months' time from the date of this instrument,
<br />deeUnins to insure said note and this monaaae, being deemed
<br />concluslve proof of such ineiiaibililY), the Lender or holder of
<br />the note may, al its option, declare all sums secured hereby
<br />immediately due and payable. Notwithstanding lhe forclolna,
<br />this option may nol be exercised by the lender or the holder of
<br />the note: when the ineligibility for insurance' under che National
<br />HousiDJ Act is due to the Lender's failure 10 remit the
<br />monSBle insurance premium to the Depanment of Housing and
<br />Urban Developm.nl.
<br />
<br />Il. ThaI if the Borrower fails 10 make any paym.nts 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
<br />instrument. or the note which it secures, then the entire
<br />principal sum and accrued interest shall al once become due and
<br />payable, al the elc:ction or the Lender.
<br />
<br />88- 104565
<br />
<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 curedi
<br />and (d) that failure to cure the default 00 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 />shaD furrber inform Borrower of lhe right to reinstate after
<br />acceleration and the right to bring a coun 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 funher demand and may invoke the power
<br />of sale and any other remedies permilled by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in
<br />pursuing the remedies provided in this paragraph 13, including,
<br />but not limited to. reasonable attorneys' fees and costs of title
<br />evidence.
<br />
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any pan of the Propcny 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 applicahle law. After the lime 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 5,,;.;::' the Property at
<br />public auction to Ihe highest bidder al the time and place and
<br />under the lerm! dCSlgnated in the notice of sale in one or more
<br />parcels and in any order Trustee detennines. Trustee may
<br />postpone sale of all or any parcel of Ihe Property by public
<br />announcement nt the time and place of any previowly scheduled
<br />sale. lender Of in designee may purchase the Propeny at any
<br />sale.
<br />
<br />Upon receipl of payment of Ihe price hid, Truslee shall deliver
<br />to the purchaser Trustee's deed conveying Ihe ProperlY. The
<br />recilals in Ihe Trustee', deed shall be prima facie evidence of Ihe
<br />lrulh of the stalements made therein. Trustee shall apply the
<br />proceeds of the sale in the following order: (a) te. all expenses of
<br />the sale. inc1udina, but not limiled to. Trus1ee's fees as
<br />pc:rmined by applicahle law and reasonable anorneys' fen; (bl
<br />10 all sums secured by this SecurilY Instrumenl; and (c) any
<br />excess 10 the person or persons legally entitled to it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />Ihe Property, lender (in pc:rson, hy agent or hy judicially
<br />appointed receiver) shall be entitled to enter upon, take
<br />po~scssion of and manqe Ihe Property and to collect the rents
<br />of Ihe Property includinl those past due. Any renls collected by
<br />Lender or .he receiver .hall be applied firs. to payment of the
<br />COSt5 of manalement of the Property and collection of rents,
<br />includin" but not limited la, recdver's fees. premiums on
<br />receiver's bonds and reasonable attorneys' fees, and then to the
<br />sums sa.-urcd by thili instrument.
<br />
<br />L
<br />
<br />Page 3 of 5
<br />
<br />HUD-92143DT.'
<br />
|