|
<br />88- 105882
<br />
<br />event of loss Borrower wi1lsive immediate: notice by mail to the
<br />Lender. who may make proof of loss if not 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 me Borrower and the Lender jointly, and
<br />the insurance proceeds. or any part thereof, may be applied by the
<br />Lender 81 its option either to the reduction of the indebtedness
<br />hereby secured or 10 the restoration or repair of the propeny
<br />damaged. [n event of foreclosure of this instrument Of other transfer
<br />of title to the mortgaged propeny in extinguishment of the
<br />indebtedness secured hereby, all right, title and interest of the
<br />Borrower in and 10 any insurance policies then in force shall pas5 10
<br />the purchaser or grantee.
<br />
<br />9, That as additional and collateral security for tbe payment of the
<br />DOle descnbed, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits. revenues,
<br />royalties, rights and beneliES accruing 10 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 Ihem to said indebu:dness as well
<br />before as afu:r default in the conditions of this instrumenl, and the
<br />Lender may demand. sue for and recover any such payments when
<br />due and payable, but shall nol be required so tn do. This assignment
<br />is to terminate and become null and void upon release of this
<br />instrument.
<br />
<br />10. That the Borrower will keep the building5 upon said premiscs
<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.
<br />
<br />I I. That iflhe 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 the laking of, or the
<br />consideration for such acquisition. 10 the extent of the full amount of
<br />indebtedness upon this instrument and che note wbich it is given 10
<br />secure remaining unpaid, are hereby assigned by the Borrower 10 the
<br />Lender, and shall be paid fonhwith to said Lender to be applied by
<br />the lalter on account of the next maturing installments of such
<br />indebtedness.
<br />
<br />12. The Borrower funher agrees that should this instrumenl and
<br />the nole secured hereby not be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing 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 dale of this instrument, declining to insure said nole and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or holder ohhe note may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may nOI be exercised by the lender or the
<br />holder of the nOIe when the ineligibility for insurance under the
<br />National Housing Act is due to the Lender's failure 10 remitlhe
<br />mortgage insurance premium (0 Ihe Department of Housing and
<br />Urban Development
<br />
<br />13. Tha't if the Borrower fails to make any payments of money
<br />when the same become due, or fails 10 confono 10 and comply with
<br />
<br />any of the conditions or agreements conLained in this instrument, or
<br />the note which it secures, then the entire principal sum and accrued
<br />inlerest shall at once become due and payable. at the election of the
<br />Lender.
<br />
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />inslrumenl (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specify: (a) the
<br />default; (b) the aclion required to cure the default; (c) a dale, not less
<br />than 30 days from Ihe dale the nolice is given to Borrower, by which
<br />the default must be cured; and (d) Ihat 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 Ihis inslrumenl and sale of the Property. The
<br />notice shall further inform Borrower of the right to reinSlate 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 dale
<br />specified in the nOlice, lender at its option may require immediate
<br />payment in full of all sums secured by this instrument willlout
<br />further demand and may invoke the power of sale and any other
<br />remedies permined 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 />auomeys' fees and costs of title evidence.
<br />
<br />If the power of sale is invoked, T ruslee shall record a notice of
<br />default in each county in which any pan 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 nOlice of sale 10 the persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />shall sell1he Property at public auclion to the highest 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 Ihe Property by public
<br />announcement at Ihe time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Property 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 />Ihe Trustee's deed shall be prima facie evidence of Ihe truth of the
<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 10, Trustee's fees as pcrmined by applicable law and
<br />reasonable anorneys' fees; (b) to all sums secured by this Security
<br />Instrument; and (c) any excess to the per.;on or persons legally
<br />entilled 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 enlitled to enler upon, lake possession of and
<br />manage the Property and (0 collect the rents of the Property
<br />including Ihose past due. Any rents collected by lender or the
<br />rr.cei"er shall be applied firslto payment of the costs of management
<br />of the Property and collection of rents, including, but not limited to,
<br />receiver's fees, premiums on recei'we:r's bonds and reasonable
<br />aUorney's fees, and then to the: sums secured by this instrument.
<br />
<br />Page 3 of 5
<br />
<br />HUD.821.3DT-1
<br />
|