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<br />~88-
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<br />104711
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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 Bonower, and each insurance company concerned
<br />is hereby authorized llnd dlr<<ted 10 make payment for such loss
<br />direclly to the lender instead of to the Borrower and the
<br />Lender jointly, and the insurance proceeds, or any part thenor,
<br />may be applied by the lender III Its option either to the
<br />reduction of the Indebledness hereby secured or to the
<br />restoration or repair of the propeny 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 />secum! hereby, all right. lille and imereS[ of the Borrower in
<br />and 10 any insurance policies Ihen in force shall pass 10 the
<br />purchaser or granlee.
<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. Ihe Borrower hereby assigns to the Lender all
<br />profils, rC'Venues, royahies, righls and benefits accruing to the
<br />Borrower under Bny and all oil and gas 1Cil5t:S on said premises.
<br />....ilh the right 10 receive and receipt for the same and apply
<br />them 10 said indebledness as well before as after defaull in Ihe
<br />condilions of this instrumr'nl. and the lender may demand, sue
<br />for and recover any such payments when due and payable, but
<br />shall not be required 50 to do. This assignment is to lerminate
<br />and become null and void upon release of this instrument.
<br />10. That the Borrower will keep Ihe buildings upon said
<br />premises in good repair, and neither commit nor permil was(e
<br />upon said land, nor suffer (he said premises (0 be used for any
<br />unlawful purpose.
<br />11. Thai if the premiscs, or any part Ihereof, be condemned
<br />under Ibe power of eminent domain, or acquired for a public
<br />use, the damagcs awarded, Ihe proceeds for the taking of, or
<br />the consideration for such acquisilion, 10 the extent of the full
<br />amount of indebtedness upon this irntrumen( and (he note
<br />which it is given 10 secure remaining unpaid, are hereby ll!signed
<br />by the BorroYrer to (he lender, Ilnd shall be paid forthwith to
<br />said Lender 10 be applied by Ihe laller on account of the next
<br />maturing installments of such indebtedness.
<br />l2. The Borrower further agrees that should this instrumeOl
<br />and the note secured hereby nor be eligible for insurance under
<br />(he National Hawing Act within eight monlhs from the dale
<br />hereof (wrinen 5latemenr of any officer of th~ Departmcnt of
<br />Housing and Urban Developmenl or authorized agent of the
<br />Secretary of Housing and Urban DtveJopmem daled subsequem
<br />to the eight months' lime from the dale of this instrumenl,
<br />declining to insure said note and this monsas!:, being deemed
<br />conclusive proof of such ineligibility), Ihe lender or holder of
<br />the note may. at its option, declare all sums secured hereby
<br />immediately due and payable. Notwithstanding the foregoing,
<br />Ihis option may not be ~ercised by the Lender or the holder of
<br />the note when (he indisibility for insurance under the Nalional
<br />Housing Act is due (0 the Lender's failure to remit Ihe
<br />mortgage insuran,,'C premium 10 the Deparlment of Housing and
<br />Urban lkYelopmem.
<br />13. Thai if the Borrower fails to make any paymenls of money
<br />when the same become due, or fails 10 conform to and comply
<br />with any of the conditions or agrcc:meDls contained in this
<br />instrumenl. or the note which it secures, then Ihe entire
<br />principal sum and accrued interest shall 01 once become due and
<br />payable. at the election of the lmder.
<br />
<br />lender sholl give nOllce 10 Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in
<br />this Instrument (but nOI prior 10 nccelerBlion under paragraph
<br />12 unless applicable law provides otherwise). The notice shall
<br />specify: (a) the default; (b) the action required to cure Ihe
<br />default; (c) a date, not less thon 30 days from the date the
<br />notice is given 10 Borrower, by wbich the default must be cured;
<br />and (d) that failure 10 cure the ddault on or before the date
<br />specified in the notice may result In acceleration of the sums
<br />secured by rhis inslrument and sale of the Property. The notice
<br />shall further inform Borrower of the righl ~o relns~ate afler
<br />acceleration and the right to bring n court aclion to assert the
<br />non-existence of n defaull or any olher defense of Borrower to
<br />acceleration Bnd sate. If the default is not cured on or before
<br />the dale specified in Ihe nOlice, lender al its option may require
<br />immediate payment in full of all sums secured by this
<br />instrument without fun her demand and may invoke the power
<br />of sale Bnd any other remedies permitted by applicable law.
<br />Lender shall ~ entilled to collect all expenses incurred in
<br />pursuing Ihe remedies proVided in this paragraph 13, including.
<br />bUI not limited to, reasonable auorneys' fees and costs of tille
<br />evidence.
<br />
<br />If the power of sale is invoked, Truslee shall record a nolice of
<br />default in each county in which any part of the Property is
<br />localed and shall mail copies of such notice in the manner
<br />prescribed by applicable law 10 Borrower and (0 the other
<br />persons prescribed by applicable law. Aner Ihe time required by
<br />applicable law, Trustee shall give public notice of sale 10 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 highesl bidder al the time and place Bnd
<br />under the lerms designated in Ihe notice of sate in one or more
<br />parcels and in any order Trustee delermines. Trustee may
<br />postpone sale of all or any parcel of the Property by public
<br />announ~ment at the time and place of any previously scheduled
<br />!lule. lender or its designee may purchase the Propeny at any
<br />!lale.
<br />
<br />Upon reccipr of payment of fhe price bid, Trustee shall deliver
<br />10 the purchaser Truslee's deed conveying the Proper~y. The
<br />ra:..;tals in the Trustee's deed shall be prima facie evidenee of the
<br />fruth of the stalements made (herein. Trustee shall apply Ihe
<br />proceeds of the sale in the following order: Ca) to all expenses of
<br />(he ,ale, includins, bUI nol Iimilcd 10. Trus1eels fees as
<br />rcrmitled by applicahle law and reasonable allorneys' fees; (b)
<br />to all sums secured by this Security Instrumenlj and (c) any
<br />exccS! to the person or persons legally enlitled to it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Propeny, lender Cin person, by agenl or by judicially
<br />oppointed receiver) shall be entitled 10 enler upon, lake
<br />posscssion of and manage Ihe Property and to collect the rents
<br />of the Property including thoK past due. Any rents collcclcd by
<br />Lender or the receiver shall be applied first to payment of the
<br />cosu of managemeOl of the Property and collection of rents,
<br />including, but nOI limited to, receiver's fees. premiums on
<br />receiver's bonds Bnd reasonable auorneys' fees, and then 10 the
<br />sums secured by this imtrumem.
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<br />HUD-92143DT-l
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