|
<br />event of loss Borrower will give immediate notice by mail to Ihe
<br />Lender, who may make proof of loss if not made prompdy by
<br />Borrower, Ind each insurance company concerned is hereby
<br />luthorized and directed to make paymenl for such loss directly to
<br />lIIe Lender instead of to the Borrower and the Lender jointly, and
<br />the insomlco proceeds, or any part thereof, may be applied by the
<br />Lender It its option either to the reduction of the indebtedness
<br />hereby secured or to the restoration or repair of the properly
<br />dI:maged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortpged property in extinguishment of the
<br />indebtedness secured bereby, all right, title and interest of the
<br />Borrower in and 10 any insurance policies then in force shall pass to
<br />the purchaser or grantee.
<br />
<br />9. That as additional and collateral security for the payment of the
<br />Dote descnbed, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits, revenues,
<br />royalties. rights and benefits accruiog 10 the Borrower under any and
<br />all oil and gas leases on said premises, wilh tbe righlto receive and
<br />receipt for the same and apply them to said indebtedness as well
<br />before as after defauJI in the conditions of this inslJUment. and the
<br />Lender may demand, suc for and recover any such paymcots 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 />instrumcoL
<br />
<br />10. That the Borrower wiD 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.
<br />
<br />1 I. Thai if the premises, or any part thereof, be condemned under
<br />the power of eminent domain. or acquired (or a public use, the
<br />damages awarded, the proceeds for lIIe.takins of, or the
<br />consideration for such acquisition, 10 the extent of the full amount of
<br />indeblcdness upon this instrument and the note which it is given to
<br />secure remaininS unpaid, are hereby assigned by the Borrower to the
<br />Lender, and shall be paid forthwith to said Lender 10 be applied by
<br />the latter on aa:ounl of the ned maluring installments of such
<br />indebledness.
<br />
<br />12. The Borrower funber agrees that should this instrument and
<br />the nole secured hereby not be eliaible Cor insurance under the
<br />National Hoosinl Act within eiabl months from the date hereof
<br />(written statement of any officer of the Depanment of Housins and
<br />Urban Development or authorized .genr of the Secretary of Housing
<br />and Urban Development dated subsequent to the eight monlM' time
<br />&om the date of this inslrUment. declining to insure said note and
<br />this mor1p&e, beioS deemed conclusive proof of sucb ineligibility),
<br />the Lender or bolder of lhe nOIe may, al its option, declare all sums
<br />secured bereby immedialely due and .-yable. Notwilbslandins the
<br />forqoioS, this option may not be exercised by the Lender or lb.
<br />bo1clcr of the note when the inelil1bililY for insurance under the
<br />National Housing Act is due to the Lender's failure to remia the
<br />monpp insurance premium 10 the Dcpartmcol of Hoosinl and
<br />Urbau Devdopmenl
<br />
<br />13. Thal if the Borrower fails to make any .-ymenlS of money
<br />when the same become due, or fAIls to conform 10 and comply with
<br />
<br />88- 105739
<br />
<br />any oCthe conditions or agreements contained in this instrument. or
<br />lilt note which il secures, then the entire principal sum and accrued
<br />inleresl shall al once become due and payable. at the election of the
<br />Lender.
<br />
<br />Lender shall give notice Eo Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrumenl (but not prior 10 acceleralion under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specify: (a) the
<br />defaul~ (b) the action required to cure the default; (e) a dale, not less
<br />than 30 days from Ihe date the notice is given 10 Borrower. by which
<br />the default must be cured; and (d) that' failure to cure the defaull on
<br />or before the date specified in the notice may resull in acceleration
<br />of the sums secured by Ihis instrument and sale of the Property. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action 10 assert the oon.
<br />existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the defaull is nOI cured on or before the dale
<br />specified in the notice, Lender at its oplion may require immediate
<br />payment in full of all sums secured by this instrument without
<br />further demand and may invoke the power of sale and any other
<br />remedies pennitted by applicable law. Lender shall be entitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but not limited 10, reasonable
<br />altomeys' fees and costs of title evidence.
<br />
<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 located
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law to Borrower and to the other persons pn:scribcd by
<br />applicable Jaw. After the time requirtd by applicable law, Trustee
<br />shall give public: nolice of sale to the persons and in the manner
<br />prescribed by applicable law. Trustee, wilhout demand on Borrower,
<br />shan selllhe Property at public auction to the highest bidder al the
<br />time and place and under the terms designated in the notice of sale
<br />in one or more parcels Ind in any order Trustee determines. Trustcc
<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 tbe Properly al any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver to
<br />the purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustee's deed shall be prims Cacie evidence of the truth of the
<br />statements 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 />nOI limited to, Trustee's fees as pennil1ed by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by Ihis Security
<br />loslrumenl: and (C) Iny excess to the person or persons legally
<br />entilled to it
<br />
<br />14. Upon acceleration under paragraph 13 or abandonmenl of the
<br />Propeny, Lender (in person, by asenl or by judicially appoinled
<br />receiver) shall be entitled to cnter upon, take possession of and
<br />manage Ihe Properly and to collccllhe rents of the ProperlY
<br />including those past due. Any rents collected by Lender or the
<br />receiver shall be applied first 10 paymenl of the costs of management
<br />of the Property and colleclion of renlS. including, but not limited la,
<br />receiver's fees, premiurru, on receiver's bonds and reasonable
<br />Ill0mey's fcc:s, and then to lhe sums secured by this instrument
<br />
<br />P_ge ~ 01 5
<br />
<br />ffl;i).m43DT..'
<br />
|