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<br />"':'J.
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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 Borrower t IUId each Insurance company concerned
<br />is hereby authorized and dlret:ted to make payment for such loss
<br />directly to the Lender instead of to the Borrower and lhe
<br />Lender jointly, and the insurance proceeds, or MY part thereof,
<br />may be applied by the Lender at its option either to the
<br />reduction of the Indebtedness hereby sccured Of 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 propcrty in extinguishment of the indebtedness
<br />secured hereby. all right, title and interest of the Borrower in
<br />and to any insurance policies then in force shall pass to the
<br />purchaser or grantee.
<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, the Borrower hereby assigns to the Lender all
<br />profits, revenues, royalties, rights and benefits accruing to the
<br />Borrower under any and all 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, but
<br />shall not be required 50 to do. This assignment is to terminate
<br />and become null and void upon release of this instrument.
<br />10. That the Borrower will keep we buildings upon said
<br />premises In good repair, and neither commit nor permit waste
<br />upon said land. nor suffer the said premises tD be used for any
<br />untawful purpose.
<br />11. That if we prl:l1lisc:s, 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 note
<br />which it 15 given to secure remaining unpaid, are hereby assigned
<br />~y the Borrower to the Lender. and shall be paid forthwith to
<br />said Lender to be applied by the latter on account of the nex.t
<br />maturing installments of such indebtedness.
<br />12. The Borrower further agrees that should this Instrument
<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 statement of any officer of the Department of
<br />Housina and Urban Development or authorized agent of the
<br />Secretary of Housing and Urban Development dated subsequent
<br />to the eight months' time from the date of this Instrument,
<br />declining to insure said note and this mortgage, being deemed
<br />conclusive proof of such ineligibility), the 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 />this option may not be ex.ercised by the Lender or the holder of
<br />the note when the ineligibility for Insurance under the National
<br />Housing Act 15 due to the Lender's failure to remit the
<br />mortgage Insurance premium to the Department of HLJuslng and
<br />Urban Development.
<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 agreements contained in this
<br />instrument, or the note which it secures, then the entire
<br />principal sum and accrued Interest shall at once become due and
<br />payable, at the election of the Lender.
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<br />88
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<br />105748
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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
<br />this instrument (but not prior to acceleration under paragraph
<br />12 unless applicable law provides otherwise). The notice shalt
<br />specify: (a) the default; (b) the action required to 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 curedi
<br />and (d) that failure to cure we 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 inform Borrower of the 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 not limited to, reasonable attorneys' fees and costs of title
<br />evidence.
<br />
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any part of the Property is
<br />located and shall mail copies of such notice 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 low, TIlIs1" shall give public notice of :;ale to the
<br />persons and in the manner prcsm:bed by "ppUcabl~ 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 designated in the notice of sale in one or more
<br />parcels and in any order Trustcc determines. Trustee may
<br />postpone sale of aU or any parcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />sale. Lender or hs designee may purchase the Property at any
<br />sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver
<br />10 the purchaser Trustee's deed conveying the Property. The
<br />recitals in lhe Trustee's deed shaU be prima facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the
<br />proceeds of the sale In the following order: (a) to all expenses of
<br />lhe sate, including, but not limited to, TrustCC's fees as
<br />permitted by applicable law and reasonable attorneys' fees; (b)
<br />to "II sums secured by this Security Inslrument; IUld (c) nny
<br />excess to the person or persons legally entitled 10 it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Property, Lender (in person, by agent or by judicially
<br />appointed receiver) shall be entitled to enler upon. take
<br />possession of and manage the Property and to collett the rents
<br />of the Property including those pasl due. Any rents collected by
<br />Lender or the receiver shall be applied first to payment of the
<br />costs or management of the Property and collection of rents,
<br />including, but not limited to, receiver's fees. premiums on
<br />receiver's bonds and reasonable attorneys' fccs, and then to the
<br />sums secured by this instrument.
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<br />HUD.92143DT.l
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