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<br />88- 105786
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<br />event of loss Borrower will give immediate nolice by maillO the
<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 otto the Borrower and the Lender jointly, and
<br />the insurance proceeds, or, any part lhereo~ may be applied hy Ihe
<br />Lender II 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 Ihis instrument or other transfer
<br />of title to the mortgaged property in extinguishment of the
<br />iodebledn... secured heJoby, all righ~ tide and interest of the
<br />Borrower in and to lDY insurance policies then in force shall pass to
<br />the purchaser or gnolce.
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<br />9. That as additional and collateral security for tbe payment of the
<br />note descnDed, and all sums to become due under Ihis instrumeol.
<br />the Borrower hereby BSSigas to the Lender all profits, revenues,
<br />royalties. riJbts and benefits accruing to the Borrower under any and
<br />all oil and gas lcases on said premises, with the risht to receive and
<br />receipt for lb. same and apply tbem 10 said indebtedness as well
<br />beforc as after default in the conditions of this instrument, and the
<br />Lender may demand, sue for and recovcr any such payments 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. Tbalthe Borrower will keep Ibe building' upon said premises
<br />in Bood repair, and neither commit nor pennit waste upon said land,
<br />Dor suffer tbe said premises to be used for any unlawful purpose.
<br />
<br />I I. That if the premises. or Iny pan thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use. the
<br />damages Iwarded, the proceeds for the taking of, or the
<br />consideration for such acquisition, to the extent of the full amounl of
<br />indebtedness upon this instrumenl and Ihe note which it is given to
<br />secure remainins unpaid, are hereby assigned by the Borrower 10 the
<br />Lender, and sball be paid ronhwilb 10 said Lender 10 be applied by
<br />the latter on Iccount of the next mlturing inscallments of such
<br />iodebledness.
<br />
<br />12. The Borrower funher 'Irm thlt should thi$ inslnlmcnllnd
<br />the nole: Kl;Urc;d hcrcby not be: ..liaible for insurance under the
<br />Nltional Hoosin. Act within eisht monUI5 from Ihe date hereof
<br />(writlen statement of Iny officer or the Dcpanment of Housins and
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eisht month.tI;' time
<br />from the date of this instrument. declining to insure said note and
<br />this mongqe, being deemed conclusive proof of such inelisibility),
<br />the Lender or holder Ortbe nOle may, It il5 option, dccJare III sums
<br />secured hereby immediately due and payable. NCJtwithslandins the
<br />foregoins, thi! option may not be exercised by the Lender or the
<br />bolder of the note when the ineligibility for insurance under the
<br />National Housh. Act is due to the Lender's failure to rcmilthe
<br />monpae insurance premium to the Department of Housing and
<br />Urban DevelopmenL
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<br />13. Thal ihhe Borrower fails to make any payments of money
<br />when the same become due, or fails to conform to and comply wilh
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<br />any of the conditions or agreements contained in Ihis instrument. or
<br />the note which it secures, then the enlire principal sum and accrued
<br />interest shan 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 covenanl Dr agreemenl in this
<br />inslrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise). The nOlia: shalls~i(y: (a) the
<br />default: (b) the action required to cure the default: (c) a date. not less
<br />than 30 days from the date Ihe notice is given to Borrower, by which
<br />the default must be cured; and Cd) that failure to cure the default on
<br />or before the date specified in the notice may result in acceleralion
<br />of the sums secured by this instrument and sale of the Property. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleralion and the right to bring a court action to asscrt 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 date
<br />specified in the notice. Lendet at its option may require immediatc
<br />payment in full of all sums secured by this instrument without
<br />funher demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shall be entitled 10
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13. including, but notlimitcd la, reasonable
<br />attorneys' fea and costs of tille evidence.
<br />
<br />If the power of sale is invoked, Trustee.shall record a notice of
<br />default in each county in which any pan of the Propcny is located
<br />and shall mail copies of such notice in Ihe manner prescribed b)
<br />Ipplicable law to Borrower and 10 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 81 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 Truslee determines. TrusEec
<br />may postpone sale of all or any parcel of the Property by public
<br />announcemenl at Ihe time and place of any previously scheduled
<br />sale. Lender or its dcsisnee may purchase the Property at any :m.le.
<br />
<br />Upon rcoeipl of payment of th. price bid, Trust.. ,hall deliver to
<br />the purchascr Tru:51cc's deed conveying Ihe Propeny. The: recitals in
<br />the Trustee's deed shall be prima racie evidence of the trUlh of the
<br />'IItemenLs made lberein. Trustee ,hall apply tbe proceeds of Ihe sale
<br />in Ihe following order. <a) to all expenses of the sale, including, but
<br />not limited to. Truslec's fees as permitted 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 />entilled to iL
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<br />14. Upon acceleration under paragraph 13 or abandonmenl of the
<br />Property, Lender (in person, by agent or by judicially appointcd
<br />receiver) shall be entitled to enler upon, take possession of and
<br />mlnage the Propeny and to collcctthe rents of the ProperlY
<br />including those past due. Any rents collected by Lender or the
<br />receivcr shall be applied first to paymenl of the costs of management
<br />of the Property and collection of rents, including, but nOllimited 10,
<br />receiver's fccs, 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 />Page 3 015
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<br />HUD.Q2143DT.'
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