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<br />88- 105865
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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of loss if nol made promptly by
<br />Borrower. and each insurance compan}' concerned is hereby
<br />luthorized and direcl.ed 10 make payment for such loss directly to
<br />the Lender instead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds. or any pan thereof, may be applied by the
<br />Lender at its option either to the reduction of the indebtedness
<br />hereby secured or to the restoration or repair of tbe property
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgaged property in extinguishment of the
<br />indebtedness secured hereby, all right, title and interest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
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<br />9. That as additional and collateral security for tbe payment of the
<br />Dote dcscnbed, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits, revenucs,
<br />royalties, rigbts 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 10 said indebtedness as well
<br />before as after default in the conditions of this instrumcnl, and the
<br />Lender may demand, sue for and recover any such payments when
<br />due and payable, bUlshaIl not be required so to do. This assignment
<br />is 10 terminate and become null and void upon release of this
<br />instrumenL
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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 waste upon said land,
<br />nor suffer Ihe said premises to be used for any unlawful purpose.
<br />
<br />) I. 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 />damages awarded, the proceeds for lite lJ.king of. or the
<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 (0
<br />secure remaining unpaid, are hereby assigned by the Borrower to the
<br />Lender. and shall be paid forthwith 10 said Lender to .be applied by
<br />tbe latter on account of the next maturing installment'i of such
<br />indebtedness.
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<br />12. The Borrower funher agrees that should this inslrument and
<br />the note secured bereby nol be eligible for insurance under the
<br />National HoosinB Act within eight months from the date hereof
<br />(written statement of any officer of the Department of HOlL5ing and
<br />Urban Development or authorized asent of Ihe Secretary of Housing
<br />and Urban Development dated subsequent to Ihe eight months' time
<br />from the date of this ioslrUmcul, declininB 10 insure said nole and
<br />chis monpse, beinB deemed conclusive proof of such ineliBibiJity),
<br />the Lender or holder of the note may. at its oplion, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />rorqoing. this option may nol be exercised by the Lender or the
<br />bolder of the nOle when the ineligibility for insunncc under the
<br />National Housing Act is due to the Lender's failure 10 remit the
<br />moft8I8C insurance premium to the Department of HOlL5ing and
<br />Urban Development
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<br />13. Tbal if the &rrowcr fails to make any paymencs of mor.ey
<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 Ihis instrumenl. or
<br />the note which it secures, then the entire principal sum and accrued
<br />interest shall al once become due and payable, at the election of Ihe
<br />Lender.
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<br />Lender shall give notice to Borrower prior to acceleralion
<br />following Borrower's breach of any covenanl or agreement in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides olherwise). The nolice 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 is given 10 Borrower, by which
<br />tbe defaull musl be cured; and (d) Ihat failure to cure the defaull on
<br />or before Ihe date specified in the notice may resul1 in acceleration
<br />of Ihe sums secured by Ihis instrument and .sale of the Properly. The
<br />notice shall further infonn Borrower of the right 10 reinstate after
<br />acceleration and Ihe right to bring a court action (0 assert the non-
<br />existence of a default or any ocher defense of Borrower 10
<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 immediate
<br />payment in full of all sums secured by this instrument wilhout
<br />further demand and may invoke the power of sale and any other
<br />remedies permilled 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 to, reasonable
<br />allomeys' fees and coSlS of title evidence.
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<br />If the power of sale is invoked, Trustee shall record a nolice of
<br />default in each counly in which any pari of the Property is locaLCd
<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 lime required by applicable law, Trustee
<br />shall give public nOlice of sale 10 the persons and in Ihe manner
<br />prescribed by applicable law. Trus~ee, without demand on Borrower,
<br />shall sel: the Propeny al public auclion to the highcsl 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 or any parcel of the Property by public
<br />announcement allhe time Ind place of any previolL5ly scheduled
<br />sale. Lender or its designee may purchase the Propeny al any sale.
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<br />Upon receipt of paymenl of the price bid. Trustee shall deliver to
<br />the purchaser Trustee's deed conveying Ihe Properly. The recitals in
<br />the Trustee's deed shall be prima facie evidence of the truth of the
<br />statements made Iherein. Truslee 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, TrlL5tee's fees as permilled by applicable law and
<br />reasonable allorneys' fees; (b) 10 all sums secured by this Security
<br />InslrUmen~ and (c) any excess to Ihe person or persons legally
<br />entilled 10 iL
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<br />14. Upon acceleration under paragraph 13 or abandonmem of the
<br />Propeny, Lender (in person, by agent or by judicially appointed
<br />receiver) shall be entitled to enter upon, take possession of and
<br />manage the Propeny and to collect the rents of the Properly
<br />including those past duc. Any rcnts collected by Lender or the
<br />receiver shall be applied first 10 payment of the costs of management
<br />of the Propeny and collection of renlS, including, but notlimiled to,
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, :md then to the sums secured hy this inslrumcnl.
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