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<br />88- 104908
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<br />event of loss Borrower willSivc immediate notice by mail to tbe
<br />Lender. who may make proof of loss if nol made promptly by
<br />Borrower. and each insurance company concerned is hereby
<br />authorized and directed to make payment for such loss directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any pan thereof, may be applied by the
<br />Lender at its option either to the reduction of the indebtedness
<br />hereby secured or to the restoration or repair of the property
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby, all right. tille and interest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser Of grantee.
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<br />9. That as additional and collateral security for the payment of the
<br />note described, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profils, revenues,
<br />royalties, rights and benefils accruing to the Borrower under any and
<br />all oil and gas leases on said premises, with the right to receive and
<br />receipt for the same and apply them to said indebledness as well
<br />before as after default in the conditions of this inslrumenl, and the
<br />Lender may demand, sue for and recover any such paymenls when
<br />due and payable, but shall not be required SO to do. This assignment
<br />is to terminate and become null and void upon release of this
<br />instrument.
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<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neither commit nor permit waste upon said land,
<br />nor suffer the said premises to be used for any unlawful purpose.
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<br />11. That if the premises, or Dny pan thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damages awarded, the proceeds for the taking of, or the
<br />consideration for such acquisition, to the extent of the full amount of
<br />indebtedness upon this instrument and the note which il is given to
<br />5CCure remaining unpaid, arc hereby assigned by the Borrower to the
<br />Lender, and shall be paid fonhwilb to said lender to be applied hy
<br />the latter on account of the next maturing installmenls of such
<br />indebtedness.
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<br />12 The Borrower further agrees that sbould this instrumenl and
<br />the notc secured hereby nol be elisible for insurance under the
<br />Nationsl Housing Act within eight months from the dale hereof
<br />(wrillen statement of any offar of the Departmenl of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to lhe eight months' time
<br />from tbe date of this instrument, declining to insure said nole and
<br />this monpge, beiDg deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the nole may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwilhstanding tbe
<br />foreaoing, this option may nol be exercised by the Lender or the
<br />bolder of the Dote when the ineligibilily for insurance under tbe
<br />National Housing Act is due to the Lender's failure to remilthe
<br />monpae insurance premium to the Department of Housing and
<br />Urban Development.
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<br />13. That if tbe Borrower fails to make any payments of money
<br />when the same become due, or f.its to conform to and comply with
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<br />any of the conditions or agreements contained in this instrument, or
<br />the nolc which il secures, then the entire principal sum and accrued
<br />intcrcs1 shall at once become due and payable, at the election of the
<br />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 this
<br />instrument (but not prior to acceleration under paragraph J 2 unless
<br />applicahle law provides otherwise). The nolice shall specify: (a) Ihe
<br />default; (b) the action required to cure the default; (c) a date, OOf less
<br />than 30 days from the date the nolice is given to Borrower, by which
<br />the default musf be cured; and (d) that failure to cure the default on
<br />or before the date specified in the notice may result in acceleration
<br />of the sums secured by this instrument and sale of the Properly. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleration and Ihe right 10 bring a court actioD to assert the non-
<br />existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before Ihe dale
<br />specified in the notice, Lender at its option may require immediate
<br />payment in fuU of all sums secured by this instrument without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shall be entitled to
<br />collecl all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but not limited to, reasonable
<br />attorneys' fees and costs of title evidence.
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<br />If the power of sale is invoked, Trustee shall record a nolice of
<br />default in each county in which any part of the Property is Incaled
<br />and shall mail copies cf such notice in the manner prescribed by
<br />applicable law to Borrower and to the olher persons prescribed hy
<br />applicablelsw. After the time required hy Ipplicable law, Trustee
<br />shall give public notice of sale to the persons and in the manner
<br />prescribed by applicable law. Truslee, without demand on Borrower,
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and under the terms designated in the notice of sale
<br />in one or more parcels and in any order Trustee determines. Trustee
<br />may 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 al any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver 10
<br />the purchaser Truslee's deed conveying the Property. The recilats in
<br />the Trustee's deed shall be prima facie evidence of the truth of the
<br />stalcments made therein. TrusIee shall apply the proceeds of the I'8le
<br />in the following order: (a) to all expenses of the sale, including, but
<br />nOllimited to, Trustcc's fees as permitted by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by this Security
<br />IDStrum~nt; and (Cl any excess to the person or persons legally
<br />entitled 10 it.
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<br />J4. Upon acceleration under paragraph J3 or abandonment of the
<br />Property, Lender (in person, by agent or by judicially appoinled
<br />receiver) shall be entitled to enler upon, take possession of and
<br />manage the Property and to collect the rents of the Property
<br />including those past due. Any renls collected by Lender or the
<br />receiver shall be applied first to payment of the COSlS of management
<br />of the Property and colleclion of renls, including, but noL limited to,
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />.norney's fees, and then to the sums secured by this instrument.
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