|
<br />r
<br />
<br />Lend~r. In event of loss Borrower will give immediate nolice by
<br />mllitlo the Lender. who may make proof of 1055 if nol made
<br />promptly by Borrower. and each insurance company concerned
<br />is hereby aUlhorized 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 this instrument or other transfer of title to the
<br />mortgaged property in extinguishment of the indebtedness
<br />secured hereby, a1l right. title and interest of the Borr('iwer in
<br />and 10 any insurance policies then in force shaU pass 10 the
<br />purchaser or grantee.
<br />
<br />9. Thai as additional and collateral security for Ihe paymenl
<br />of the note dc:scribed~ and all sums 10 become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />proi'its, revenues, royalties, righ[S and benefits accruing to the
<br />Borrower under any and aU 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, bUI
<br />shall not be required 50 to do. This assignmem is to tenninatc
<br />and become null and void upon release of this instrument.
<br />
<br />10. That the Borrower will keep the bui1dings 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.
<br />
<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 damages awarded, the proceeds for the taking of, or
<br />the consideration for such acquisition, to the extent of the full
<br />amount of indebtedness upon this instrument and the nOle
<br />which it is given to secure remaining unpaid, are hereby assigned
<br />hy the Borrower to the Lender, and shall be paid forthwith to
<br />said Lender to be applied by the latter on account of the next
<br />maturing installments of such indebtedness.
<br />
<br />12. The Borrower furtber agrec::s that should this inslrUrnent
<br />and the note secured hereby not be eligible for insurance under
<br />the National Housing Act within eight months from the date
<br />hereof (wrillen suuement of any officer of the Department of
<br />Housing and Urhan Development or authorized agent of the
<br />Secretaf)' of Housing and Urban De\lelopment dated subsequcm
<br />10 the dghl months' time from the date of this instrument,
<br />declining 10 insure said note and this mortgage, being dec::med
<br />conclusive' proof of such ineligibility), Ihe Lender or holder of
<br />the note may, al it:; option, declare all sums secured hereby
<br />immediately dut and payable. Notwithstanding the foregoing,
<br />this option may not be e:u:rc:isc:d by the Lender or the holder of
<br />the nOle when the ineligibility for insurance under the National
<br />Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<br />
<br />13. That if the Borrower fails to make any payments of money
<br />when the same become due, or fails to conform to and comply
<br />with any of the conditions or agreemenlS contained in this
<br />instrument, or the note which it secures, then the entire
<br />principal !ium and accrued interest shall at once become due and
<br />payable, at the election of the Lender.
<br />
<br />8R-
<br />
<br />104795
<br />
<br />lender shall give: notice to Borrower prior to acceleration
<br />rollowing Borrower'li breach of any covenanl or agreement in
<br />this instrument (but nOl prior 10 acceleration under paragraph
<br />12 unless applicable law provides olherwise). The notice: shall
<br />specify: (a) Ihe defaull; (b) the action required 10 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 10 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 infonn Borrower of tbe right 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 expenses incurred in
<br />pursuing the remedies provided in this paragraph 13, including,
<br />but nol limited to, reasonable attorneys' fees and costs of title
<br />evidence.
<br />
<br />If Ihe power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any pan of the Property is
<br />located and shall mail copies of such nolice 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 place and
<br />under the terms designaled in the notice of sale in one or more
<br />parcels and in any order Truslec determines. Trustee may
<br />postpone sale uf all or any parcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />~alc Lender or i1!1 designee may purchase the Property at any
<br />sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recilals in the Trustee'F deed shall be prima facie evidence of the
<br />truth of the statemC'f1LS made therein. Trustee shall apply the
<br />proceeds of the sal~ in the following order: (a) to all expenses of
<br />Ihe sale, including, but not limited to, Trustcc's fees as
<br />permiued by applicable law and reasonable attorneys' fees; (h)
<br />to all sums secured by this Security Instrument; and (c) any
<br />excess to the person or persons legally entitled to il.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Propeny, Lender (in person, by agent or by judicially
<br />appointed receiver) shall be entitled to enter upon, take
<br />possession of and manage the Propcny and to caUccl the Tents
<br />of the Property including those pa51 due. Any rents collected by
<br />Lender or the receiver shall be applied first to payment of the
<br />cosu of management of the Property and collection of rents,
<br />including, bul not limited to, receiver's fees, prcm:ums on
<br />receiver's bonds and reasonable attorneys' fees, and then to the
<br />sums secured by this instrument.
<br />
<br />Page 3 of 5
<br />
<br />HUD-92143DT.'
<br />
|