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<br />88-105752
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<br />event of 1Cl.U Borrower willlivel immedillte notice by mail to the
<br />Lender, who mlY make proof of Iw 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 Ihe Lender joinlly, and
<br />the insurance proceed!. or Iny pare thereof, may be applied by the
<br />Lender It 41'S option either to the reduction of the indebtedness
<br />hereby secured or Co the restoration or repair of the propeny
<br />damqcd. In event of foreclosure of Ihi5 instrumenl or other transfer
<br />of tide to the monpgcd propeny in extinguishment of the
<br />indebtedness secured hereby, all right, title Bnd interest of the
<br />BolTOwcr in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
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<br />9. Thai as additionalaod collateral security for the payment of the
<br />Dote dcscnDcd. aDd all sums to become duc under this instrument.
<br />the Borrower hereby assigns to the Lender all profits. revenues,
<br />royalties, nahts and benefits aceroio8 to the Borrower under any RJld
<br />all oi1 and gas leases on said premises. with the right to receive and
<br />receipt for the same and apply them to said indebtedness as well
<br />before as afler default in the conditions of this instrument, and the
<br />Lender may demand, sue for and recover any such paymenlS when
<br />due and payable. but shan not be required so to do. This assignment
<br />is to terminate and become nuD and void upon release of this
<br />instrument.
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<br />10. That the Borrower will keep tbe buildings upon said premises
<br />in good repair, and neither commit nor permit Wl5te upon said land,
<br />nor sufTer the said premises to be used for any unlawful purpose.
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<br />11. That if the premises, or any pan thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damases awarded, the proceeds for the takina of, or me
<br />consideration for such acquisition, to the extent of the full amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure remaininB unpaid, are hereby assigned by the Borrower to the
<br />Lender, and shall be paid farthwith ta said Lender ta be applied hy
<br />the latter on account of the next maturing installments of such
<br />indebtedn...,
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<br />12. The Borrower further agrees that should mis instrument and
<br />the nOle secured hereby nol be eJigible Cor insurance under the
<br />National Housina Ad within eight months from the date hereof
<br />(writleD statement of any officer of the Departmenl of Housing and
<br />Urban Development or aUlhorized agent of the Secretary of HousinB
<br />and Urban Developmenl daled subsequent to the eight months' time
<br />from the date of this instrument, dedininB 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. NOlwithstandinB the
<br />foregoing, this option may not be exercised by tbe Lender or the
<br />holder of tbe note when the inelisibility for insurance under the
<br />Natioaal Hoosin. Act is due to the Lender's failure to remit the
<br />monpgc inswaoce premium to the Department of HousinS and
<br />Urban o.vdopmeal.
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<br />13. Thal if the Borrower fails 10 make any payments of money
<br />when the same become due, or fails to conform to and comply with
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<br />any of the conditions or agreemenls contained in this instrument, or
<br />tbe note which it secures, lhen the entire principal sum and accrued
<br />interest shallal once become due and payable, al the election of the
<br />Lender.
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<br />Lender shall give nolice 10 Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (but nOl prior 10 acceleration under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specify: (a) the
<br />default; (b) the action required to cure the default; (c) a date, not less
<br />than 30 days from the date the notice i$ given to Borrower, by which
<br />the default must 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 />oflhe sums secured by this instrument and sale of the Propeny. The
<br />notice shall funher inform Borrower of the right to reinstale after
<br />acceleration and the right ~o bring a coun action to assert the non-
<br />exislence of a defaull or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before lhe 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 the power of sale and any other
<br />remedies permitted 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 notlimiced to, reasonable
<br />attorneys' fees and costs of tille evidence.
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<br />If the power of sale is invoked. Trustee shall record a notice of
<br />default in each counly in which any part of the Propeny is located
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law to Borrower and 10 the other persons prescribed by
<br />applicable law. After Ihe lime required by applicable law, Trustee
<br />shall give public notice of sale to the persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />shall sell the Propeny al public auction to the highesl 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 ar any parcel af 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 at any sale.
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<br />Upon receipt of payment of the price bid, Trtl5tee shall deliver to
<br />Ihe purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustee'. deed .hall be prima facie evidence of the truth of the
<br />statemenlS made thereio. Trustee shall apply Ihe proceeds of the sale
<br />in the following order: (I) to all expenses of the sale, including, but
<br />not limited to, Trtl5tee's fees as pcrmiucd by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by this Security
<br />Instrument; and (c) any excess to the person or persons legally
<br />entitled to it.
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<br />14. Upon acceleration under paragraph 13 or abandonment of the
<br />Praperty, Lender (ill pe""", by asenl or by judicially appointed
<br />receiver) shall be entitled to enter upon, lake posses5ion of and
<br />manage the Propeny and to collCClllie rents of the Property
<br />including those past due. Any rents collected by Lendc:r or the
<br />receiver shall be applied fil'Sl to :>ayment of the costs of managemenl
<br />of the Propeny and collection of rents, including, but not limited 10,
<br />receiver's fees, premiums on receiver's boMis and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
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<br />Pagll 3 of 5
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<br />HUD-D2143DT-"
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