|
<br />88- 105786
<br />
<br />RE.RECORDE;D
<br />88- 105912
<br />
<br />event of loss Borrower will give immediate notice by mail to the
<br />under. 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 the Borrower and the Lender joinlly, and
<br />the insuratlce proceeds. or any part thereof, may be applied by the
<br />Lender at its option either to the reduction of lite indeb!edness
<br />hereby secured or to the restoration or repair .of the 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.
<br />
<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 profits, revenu~,
<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 indebtedncss as well
<br />before as 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 pay&ble, but shall not be required 50 to do. This assignment
<br />is EO terminate and become null and void upon release of Ihis
<br />instrument
<br />
<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neither commit nor permit wasle upon said land,
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />
<br />11. That if the premises. or any part thereof, be condemned under
<br />the power of eminenl domain, or acquired for a public use, the
<br />damages awarded, tbe proceeds for the taking of, or the
<br />consideration for such acquisition, to me extent of tbe full amount of
<br />indebtedness upon this instrumenl and the note which it is given 10
<br />secure remaining unpaid. arc hereby assigned by Ihe Borrower to the
<br />Lender, and shall be paid fonhwith to said Lender to be applied by
<br />me lauer on account of the next maluring installments of such
<br />indebtedness.
<br />
<br />12. The Borrower funher agrCCi thai should this instrumenl and
<br />the nole secured hereby noc be eligible for insurance under the
<br />National Housing Act within eight months from the dale hereof
<br />(wrinen statement of any officer of the Department of Housing and
<br />Urban Development or aUlhorized agent of the Secretary of Housing
<br />and Urban DevelopmeDI daled subsequenl to the eight months' time
<br />from the date of this instrumenl, declining to insure said note and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the nole may, at i15 option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not be exercised by the lender or the
<br />holder of the note when tbe ineligibility for insurance: under Ihe
<br />National Housing Act is due to Ihe Lender's failure to remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Developmenl
<br />
<br />13. Thal if the Borrower fails to make any paymen15 of money
<br />when the same become due, or fails to conform to and comply with
<br />
<br />any of the condilions or agreements contained in this instrumenl, or
<br />the note which it secures, then the enlire principal sum and accrued
<br />interest shall al once become due and payable, at the election of the
<br />Lender.
<br />
<br />Lender shall give notice to Borrower prior to acceleration
<br />fonowing Borrower's breach of any covenant or agreement in this
<br />instrument (but not prior to 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 da~e 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 inslrument 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 me defaull 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 without
<br />funher 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 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 Propeny is located
<br />and shall mail copies of such notice in the manner prest:ribed 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 sale to the persons and in the manner
<br />prescribed by applicable law. Trustee. without demand on Borrower.
<br />shall sell the Propeny at public auction 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 the Property by public
<br />announcemenl allhe 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 Ihe Propeny. The recitals in
<br />the Trustcc's deed shall be prima facie evidence of the trUlh of the
<br />sta~ements 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 />nOllimited lo, Trustee's fees as permitted by applicable law and
<br />reasonable anorneys' fees; (b) to all sums secured by this Security
<br />Instrumenl; and (c) any excess 10 the person or persons legally
<br />entilled to it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of the
<br />Propcny, Lender (in person, by agent or by judicially appointed
<br />recdver) shall be enlitled to enter upon, take posscssion of and
<br />ii.OlDage lhe Propeny and to collect the rents of the Properly
<br />including those past due. Any rents collected by Lender or the
<br />receiver shall be applied first to payment of the costs of management
<br />of lhe Property and collection of rents, including, but nOllimited to.
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by Ihis instrument.
<br />
<br />Page 3 01 5
<br />
<br />HUD~121"30T~1
<br />
|