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<br />88- 105116
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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of loss if nol made promptly by
<br />Borrower. and each insurance company concerned is hereby
<br />authoritcd and directed 10 make payment for such loss directly 10
<br />the Lender inslead 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 propeny
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mongaged propeny in extinguishment of the
<br />indcbledness secured hereby, all right. tide and interest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
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<br />9. That as additional and collateral security for the payment of the
<br />note described, and all sums 10 become due under tbis instrument,
<br />tbe Borrower hereby assigns 10 the Lender all profits, revenues,
<br />royahies, rights and benefits accruing 10 Ihe Borrower under any and
<br />all oil alld gas leases on said premises, with the right to receive and
<br />receipt for the same and apply them 10 said indebtedness as well
<br />before as afler defaull in the conditions of this instrument. and the
<br />Lender may demand, sue: for and recover any such payments when
<br />due and payable, but shall nol be required so to do. This assignmenl
<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 keeJ'lthe buildings upon said premises
<br />in good repair, and neither commil nor permit waste upon said land,
<br />nor suffer the said premises to be used for any unlawful purpose.
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<br />J J. That if the premises, or any part thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, tbe
<br />damages awarded. the proceeds for the laking of, or the
<br />consideration for such acquisition, to the extent of the full amount of
<br />indebtedness upon Ihis instrument and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower to the
<br />Lender, and shall be paid forthwith to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
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<br />l2. The Borrower further agrees that should this instrument and
<br />the nole secured hereby not be eligible for insurance under the
<br />National HOU5ing Act within cighl momhs from the date hereof
<br />(written statement of any officer of the Department of Housing and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eight months' time
<br />from the date of this instrument, declining to insure said note and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the note may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not be exercised by the Lender or the
<br />holder of tbe note when the ineligibility for insurance under the
<br />National 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.
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<br />13. That if the Borrower fails to make any payments of money
<br />when the same become due, or fails to conform 10 and comply with
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<br />any of the conditions or agreements contained in this instrument, or
<br />the note which it secures, then the entire principal sum and accrued
<br />inlerest shall at once become due and payable, .III 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 covennnt or agreement in this
<br />instrument (but nol prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specify: (a) the
<br />default; (b) the action required (0 cure the default; (c) a date, not less
<br />than 30 days from the dale the notice is. given to Borrower, by which
<br />'he default must be cured; and (d) tha' failure '0 cure the defeult 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 the right to bring a cOurt action 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 the dale
<br />specified in the notice, Lender at its option may require immediate
<br />payment in full of all sums secured by this instrument without
<br />further demand and may invoke Ihe po~er of sale and any other
<br />remedies permined by applicable law. Lender shall be entilled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but not limited la, reasonable
<br />anorneys' fees and costs of title evidence.
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<br />If the power of sale is invoked. Trustee shall record u notice of
<br />default in each counly in which any pari of the Property is localed
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law (0 Borrower and to the other persons prescribed by
<br />applicable law. After the time required by applicable law, Trustee
<br />shall give public notice of sale to Ihe persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />shall sell the Property at public auction to the highest bidder al the
<br />time and place and under the terms designated in the nolice 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 paymenl of the price bid, Truslee shall deliver 10
<br />the purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustee's deed shall be prima facie evidence of the truth of the
<br />Sl'ltcments made therein. Trustee shall apply the proceeds of the sale
<br />in the following order: (a) to all expenses of the sale, including, but
<br />not limited to, Trustee's fees as permilled by applicable law and
<br />reasonable anorneys' fees; (b) to al1 sums secured by this Security
<br />Instrument; and Ic) any excess 10 the person or persons legally
<br />entitled to il.
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<br />14. Upon acceleration under paragraph J 3 or abandonment of the
<br />Property, Lender (in person, by agent or by judicially appointed
<br />receiver) shall be entitled to enter upon, take possession of and
<br />manage the Property and to collcctlhe rents of the Property
<br />including those past due. Any rents collected by Lender or Ihe
<br />receiver shall be applied first to payment of the costs of management
<br />of the Property and collection of rents, including, but nOllimitcd 10,
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
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<br />HUD.i2143DT.,
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