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<br />88- 106095
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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 ir not made promptly hy
<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 tbe indebtedness
<br />hereby secured or to the restoration or repair of the property
<br />damaged. In event of foreclosure of this instrument or othl;r 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 shaH 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 />royallies, righls 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 lhe same and apply them to said indebtedness as well
<br />before os after default in the conditions of this instrument, Bnd the
<br />Lender may demand, sue for Bnd 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 />10. Thatlhe Borrower will keep the huildings upon said premises
<br />in good repair, Bnd neither commit nor permil 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 part thereof, be condemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damages awarded, the proceeds ror the laking or, or the
<br />consideration for such acquisition, to the extent of the full amount of
<br />indebtedness upon this instrumect and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the Borrower to the
<br />Lender, and shaU be paid forthwith to said Lender to be applied by
<br />thc lattcr on account of the next maturing installments of such
<br />indebtedness.
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<br />12. The Borrower further agrees that shouJd 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 statement of any officer of the Department of Housing and
<br />Urban Development or authorized agenl or the Sccrclary of Housing
<br />and Urban Development dated subsequent to the eight months' time
<br />from the date of this inslrument, declining to insure said note and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the note may, at ils option, declare all sums
<br />secured hereby immediately due and payable. Notwithslanding the
<br />foregoing, Ihis oplion may not be exercised by the Lender or the
<br />holder of the note when the ineligibility for insurance under Ihe
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium to the Departmenl of Housing and
<br />Urban Development
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<br />13. ThaI if the Borrower fails to make any payments of money
<br />when lbe same become due, or fails to conrorm to and comply with
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<br />any of the condilions or agreements contained in this instrument, or
<br />the nole which it secures, then the entire principal sum and accrued
<br />interest shall at once become due and payable, at the election of the
<br />Lender.
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<br />Lender sholl give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenanl or agreement in Ihis
<br />instrument (but not prior 10 acceleration under paragraph) 2 unless
<br />applicable law provides olberwise), The notice shall specify: (a) the
<br />deCault: (h) the action required to cure Ihe default; (c) a date, not less
<br />than 30 days from Ihe date the notice is given to Borrower, by which
<br />the default must be cured; and (d) that faUure 10 cure Ihe deCault on
<br />or before the date specified in the nOlice may result in acceleration
<br />of the sums secured by this inslrumenl and sale of Ihe Property. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleration and the righlto bring a court action to assert the non~
<br />exislence of a deCault or any olher defense of Borrower to
<br />acceleration and sale. (f Ihe default is not cured on or before Ihe date
<br />specified in the nOlice, Lender at 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 permiued 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 litle evidence.
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<br />(f 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 10 Borrower and to the olher persons prescribed by
<br />applicahle law. After the time required by applicable law, Trustee
<br />shall give public notice of sale to Ihe persons and in the manner
<br />prescribed by applicable law. Truslee, withoul dcmand on Borrower,
<br />shall sell the Property at public auction to the highest bidder at the
<br />time and place and under Ihe terms designaled in Ihe nolice of sale
<br />in one or more parcels and in any order Trustee delennines. Trustee
<br />may postpone sale of all or any parcel of the Property by public
<br />announcement at the time and place of any previously scheduJed
<br />sale. Lender or its designee may purchase the Property at any saJe.
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<br />Upon receipt or payment of the price bid, Trustee shall deliver to
<br />the purchaser TruslCC's deed conveying the Property. The recilBls io
<br />the Trustee's deed shall be prima facie evidence of the truth of Ihe
<br />slatements made therein. Trustee shaUapply Ihe proceeds of the sale
<br />in the following order: (a) to all expenses of the sale, including, but
<br />not limiled 10. 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 acceleralion under paragraph 13 or abandonmenl of the
<br />Propeny, Lender (in person, hy agent or hy judicially appoioted
<br />receiver) shaH be entitled 10 enter upon, take possession of and
<br />manage the Propeny and to collect the rents or the Property
<br />including those past due. Any rents collected by Lender or lhe
<br />receiver shall be applied firslto payment of the coslS of management
<br />of the Properly and collection of rents, including, but not limited to,
<br />receivcr's fees, premiums on receiver'!) bonds and reasonable
<br />attorney's fees, and then to the sums secured by Ihis instrument.
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