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<br />88- 105820
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<br />event of loss Borrower will give immediate notice by mail 10 the
<br />Lender, who may make proof of loss if nol made promptly by
<br />Borrower, and each insurance company concerned is hercb)
<br />authorized Bnd directed 10 make payment for 5uch 1055 dirtctly to
<br />the Lender instead of to the Borrower and the lender jointly, and
<br />the insurance proceeds. or any part thereof, may be applied by the
<br />Lender at its option either 10 the reduction of the indebtedness
<br />hereby secured or 10 the restoration or repair of the property
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgagecl property in extinguishment of the
<br />indebtedness secured hereby, all right. title and interest of the
<br />Borrower in and to any insurance polities then in force shall pass to
<br />the purchaser Of grantee.
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<br />9. That as additional and collateral security for the payment of the
<br />note described, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all proliLS, revenues,
<br />royalties, rights and benefits accruing to the Borrower under any and
<br />all oil 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 a.e; after default 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 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 />J O. That the Borrower will 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.
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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 puhlic use, the
<br />damages awarded, the proceeds for the taking of, or the
<br />consideration for such acquisition, to the extent of the full amount of
<br />indebtedness upon this instrument and lIle notc which it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower 10 lhe
<br />Lender. and shall be paid fnrthwilh 10 said Lender 10 be applied by
<br />the laller on account of the next maturing installments of such
<br />indebtedness.
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<br />12. The Borrower funher agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(written stalement of any officer of the Depanmem of Housins 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 mongage, heinS deemed conclusive proof of such inelisibility),
<br />lIle 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 eKercised by the Lender or the
<br />holder of the note when the ineligibility for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />monpgc insurance premium to the Depanment of Housing and
<br />Urban Development
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<br />13. That if lIle Borrower fails to 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 agreements contained in this instrument. or
<br />the note which it secures, then the entire principal sum and accrued
<br />interest shall at once bct:ome 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 covenant or agreement in this
<br />instrument (but not prior to accelemtion 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, notlcss
<br />than 30 days from the dale the notice is 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 />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 />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 date
<br />specified in the notice, Lender 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 not limited to, reasonable
<br />attorneys' fees and costs of title 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 located
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law to 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 sate to the persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />shall selllhe Property at public auction to the highest bidder at Ihe
<br />time and place and under the terms designaled in the nOlice of sale
<br />in onc or more parcels and in <my order Trustee determinC5. Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement atlhe time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Propeny at 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 prima facie evidence of the truth of (he
<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 />not limited to, Trustee'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 />entitled to it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of the
<br />Property, Lender (in person. by agent or by judicially appointed
<br />receiver) shall be entitled 10 enler upon, take possession of and
<br />manage the Property and to collect the rents of the Propeny
<br />including Ihose past due. Any rents collected by Lender or Ihe
<br />receiver shall be applied first to payment of the cosle; of management
<br />of the Property and collection of rents. including, but nut limited 10,
<br />receiver's fees, premiums on receivt:r's hands and reasonable
<br />attorney's fees, and then to the sums secured by this instrument.
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