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<br />Lender. In evelll of J055 Borrower will sive Immediate nOlice by
<br />mail 10 the Lender, who may make proof of Joss if nOI made
<br />promptly by Borrower, and each insurance company concerned
<br />Is hereby authorized and directed to make payment for such loss
<br />directly 10 the Lender inslead of to the Borrower and the
<br />Lender jointly, and the insurance proceeds, or any part thereof,
<br />may be appUed by the Lender at its option ellher 10 the
<br />reduction of the indebtednCls hereby secured or to the
<br />restoration or repair of the property damaged, In event of
<br />foreclosure of this instrument or other transfer of title to the
<br />mortsaaed property in extinguishment of the indebtedness
<br />secured hereby, all right, title and interest of the Borrower in
<br />and to any insurance policies then in force shall pass to the
<br />purchaser or grantee.
<br />9. That as additional and coUateral security for the payment
<br />of the note described, and Rll sums to become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />profits, revenues, royalties, rights and benefits accruing to the
<br />Borrower under any and all oil and gas leases on said premtscs,
<br />with the right to receive and receipt for the same and apply
<br />them 10 said indebtedness as well before as after default in the
<br />conditions of this instrument, and the Lender may demand. sue
<br />for and recover any sucb payments when due and payable, but
<br />shall not be required so to do. This assignment is to terminate
<br />and become nuU and void upon release of this instrumcnt.
<br />10. That the Borrower will keep Ihe buildings upon said
<br />premises in good repair. and neither commit nor permit waste
<br />upon said land, nor suffer the said premises to be used for any
<br />unlawful purpose.
<br />I J, That if the premises, or any pan thereof, be condemned
<br />under the power of eminent domain, or acquired for a public
<br />use, the damages awarded, the proceeds for the taking of, or
<br />the consideration for such acquisition, to the extent of the full
<br />amount of indebtedness upon this instrument and the note
<br />which it is given to secure remaining unpaid, are hereby assigned
<br />by the Borrower to the Lender. and shall be paid forthwith to
<br />said Lender to be applied by the latter on account of the next
<br />maturins installments of such indebtedness.
<br />12. The Borrower further agrCC.!l that should this instrument
<br />and the note secured hereby not be eligible for insurance under
<br />the National Housing Act within eight months from the date
<br />hereof (wriUen statement of any officer of Ihe Department of
<br />Housing and Urban Development or authorized asent of the
<br />Secretary of Houslog and Urban Development dated subsequent
<br />to the eigbt months' time from the date of this instrument.
<br />declining to insure said note and this mongage, being deemed
<br />conclusive proof of such InellgibiUty), the Lender or holder of
<br />the note may, at its option. declare all sums secured hereby
<br />ilDlDediateJy due and payable. Notwithstanding the foregoing,
<br />this option may not be exercised by Ihe Lender or the holder of
<br />the note when the ineligibility for insurance under the National
<br />Housing Act is due 10 the Lender's failure to remit the
<br />mortl88e insurance premium to the Department of Housing and
<br />Urban DevelopmenL
<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
<br />with any of the conditions or agreements contained in this
<br />instrument, or the note which it secures, then the entire
<br />principal sum and accrued interest shaU at once become due and
<br />payable, at the election of the Lender.
<br />
<br />Lender shall give notice to Vo~=r pJ,rQQc2Q.1n
<br />following Borrower's breach of any COVenant or agreement in
<br />this Instrument (but not prior to acceleration under paragraph
<br />12 unless appUcable law provides otherwise). The notice shall
<br />specify: (a) the default; (b) the action required to cure the
<br />derault; (c) a dale, not less than 30 days from the date the
<br />notice Is given to Borrower, by which the default must be cured;
<br />and (d) that failure to cure tbe default on or before the date
<br />specified In the notice may result in acceleration of the sums
<br />secured by this instrument and sale of the Property. The notice
<br />shall further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a conn action to assert the
<br />non-cxistence of a default or any other defense of Borrower to
<br />acceleration and sale. If the default is not cured on or before
<br />the date specified in the noticc. Lender at its OptiOD may require
<br />immediate payment in fuD of aJI sums secured by this
<br />instrument without further demand and may invoke the power
<br />of sale and any other remedies permitted by appUcable Jaw.
<br />Lender sball be entitled to collect all expenses incurred In
<br />pursuing the remedies provided in thiS paragraph 13, iDcludiDg,
<br />but not limited. to, reasonable attorneys' fees and costs of title
<br />evidence,
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any pan of the Property 15
<br />located and shall mail copies of such notice in the manner
<br />prescribed. by applicable law to Borrower and to the other
<br />persons prescribed by applicable Jaw. After the time required by
<br />applicable Jaw, Trustee shall give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee. without demand on Borrower, shall seU the Property at
<br />public auction to the highest bidder at the time and place and
<br />UDder the terms designated iD the notice of sale in one or more
<br />parcels and in any order Trustee determines. Trustee may
<br />postpone sple of all or any parcel of the Property by pUblic
<br />announcement at tbe time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Propeny at any
<br />sale.
<br />Upon receipt of payment of the price bid, Trustee shall deliver
<br />to the purchaser Trustee's deed conveying the Property. The
<br />recitals in the Trustee's deed shall be prima facie evidence of the
<br />truth of the statements made therein. Trustee shall apply the
<br />proceeds of ,he sale in 'he following order: (a) to all expenses of
<br />the sale, including, but not limited to. Trustee's fCC.!l as
<br />permitted by applicable law and reasonable auorneys' fees; (b)
<br />to all sums secured by this Security Instrument; and (c) any
<br />excess to tbe person or persons legally entitled to it.
<br />14. Upon acceleration under paragraph 13 or abandonmeDt of
<br />the Property, Lender (in person, by agent or by judicially
<br />appointed receiver) shall be entitled to enter upon. take
<br />possession of and manage the Propcny and to collect the rents
<br />of the Property including those past due. Any rents collected by
<br />Lender or the receiver shall be applied first to payment of the
<br />costs of management of the Property and collection of rents,
<br />including, but not limited to, receiver's fees. premiums on
<br />receiver's bonds and reasonable attorneys' fees, and then to the
<br />sums secured by this instrument.
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