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<br />88- 106071
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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of 1= if not made promplly 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 jointly! and
<br />the insurance proceeds, or any part thereof, may be applied by the
<br />Lender at its option either to the reduction of the indebtedness
<br />hereby secured or to the resioration or repair of the property
<br />damaged. [n 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 the payment of the
<br />nole described, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits, revenues,
<br />royalties, rights Bnd 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 Ihe same and apply them to said indebtedness 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 payable, but shall not be required so to do. Tha assignment
<br />is to terminate and become null and void upon release of this
<br />instrument.
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<br />10. 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 />1 J. That if the premiscs, 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 taking 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 to
<br />secure remaining unpaid, arc hereby assigned by the Borrowcr to the
<br />Lender, and shall be paid fonhwith 10 said Lender to be applied by
<br />the latler on account of the next maturing installments of such
<br />indebtedness.
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<br />12. The Borrower further agrees that should this instrument and
<br />the notc 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 Developmenl or authorized agenl of the Secretary of Housing
<br />and Urban Development dazed subsequenl to the eight months' time
<br />from the date of this instrument, declining to insure said nOle and
<br />this mortgage. being deemed conclusive proof of such ineligibility),
<br />the 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 exercised by the Lender or the
<br />holder of tbe note when the ineligibiUty for insurance under the
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urbsn DcvdopmenL
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<br />13. That if the 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 not~ which it secures, then the entire principal sum and accrued
<br />intercst shall at once become due nnd payable, at the election of the
<br />Lender.
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<br />Lender shall give nolice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (bUl not prior to acceleration under paragraph 12 unless
<br />appJicablelaw provides otherwise). The nOlice shall specify: (a) the
<br />default; (b) the action required 10 cure Ihe default; ec) a date, not less
<br />than 30 days from the date the notice is given to Borrower, by which
<br />the defaull must be cured; and (d) that failure to cure the defaull on
<br />or before the date specified in the nOlice may result in acceleration
<br />of the sums secured by this instrument and sale of the Propeny. The
<br />notice shall fUrlher inform Borrower of the right 10 reinstate after
<br />acceleration and Ihe right to bring a court aClion 10 8S5en the non-
<br />existence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is nol cured on or before the date
<br />specified in Ihe notice. Lender al its option may require immediate
<br />payment in full of all sums secured by this instrumenl without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shall be entitled to
<br />collecl all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but nOllimited to, reasonable
<br />attorneys' fees and costs of title evidence.
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<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which IIny part of Ihe ProperlY is located
<br />and shall mail copies of such notice in the manner prestribed by
<br />applicable law to Borrower and to the other persons prescribed by
<br />applicsble 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 Properly a' public auction to the highest bidder st the
<br />lime and place and under the terms designated in the notice of sale
<br />in one or more parcels and in any order Trustee delermines. Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement 01 the time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Propcny at any sale.
<br />
<br />Upon receipt of payment of the price bid, Truslee shall deliver to
<br />the purchaser Trustee's deed conveying the Property. The recitals in
<br />the Trustee's deed sholl be prima facie evidence of the truth of the
<br />statements made therein. Truslee shall apply the proceeds of the sale
<br />in tbe 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.
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<br />14. Upon acceleration under paragraph J 3 or abandonment of the
<br />Property, Lender (in person, by agent or by judicially appointed
<br />receiver) shall be entitled to enter upon, take possession of and
<br />manage the Property and to collecl tbe rents of the Property
<br />iacluding 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 the Property and collection of rents, including, bUl nOllimited 10,
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by Ihis instrument.
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