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<br />evcot orilla Borrower will pve immediate notice by mail to the
<br />Leader, wbo may make proof of loss if no' mado promptly by
<br />Borrower, and eadt insurance company concerned is horeby
<br />aulborizcd and directed 10 make paymon' for sucb loss directly 10
<br />lbe Leuder instoad ofto lbo Borrowor and lbe Lender joindy, aod
<br />lbe iosurance proceeds, or any pan thereof, may be applied by the
<br />I.eIIder at ill optioo eilber to lbe reduction of the indebtedness
<br />hereby SllClIIcd or to the reslOratJon or repair of 'be property
<br />daotqed. CD event of foreclosure of tbis iosuument or other lrIInsfer
<br />of tJde 10 lbe mortp&ed property in exlinsuishment of ,be
<br />indebtedness SllClIIcd hereby, all rigb~ tJde and interest of the
<br />Borrower in and '0 any insurance policies thon in force shall pass to
<br />lbe purc1wer or grantee.
<br />
<br />9. That as additional and collateral socurity for lbe paymen' of lbe
<br />DOte descnbed, aod all sums to become due under lbis instrumen~
<br />lbe Borrower hereby assigns to lbe Leuder all prolilS, revenu...
<br />royalties, rigblS and beoelilS aa:ruing '0 lbe Borrower uoder any and
<br />all oil and gas I..... on said premises, wilb lbe rigbt'o receive and
<br />receipt for the same and apply ,bem to said indebtedness as well
<br />before as after default in tho conditions of this instrument, and 'he
<br />Leuder may demand, sue for and recover any sucb paymonlS whon
<br />due and payable, but sha1I no' be required so to do. This assignment
<br />is 10 terminate and become null and void upon release of lbis
<br />iDStrumcnL
<br />
<br />10. That lbe Borrower will keep the bnildings upon said premises
<br />in Sood repair, and neither commit Dor permit waste upon said Jand,
<br />oor suffer lbe said premises to be used for any unlawfnl purpose.
<br />
<br />11. Tha' if lbe premises, or any part lbereo~ be coodemned under
<br />lbe power of emineo' domain, or acquired for a public use. lbe
<br />damages awarded, the proceeds for lbellkiog of, or the
<br />consideration for such acquisitioo, to lbe extent of tbe full amount of
<br />indebtedness upon this iostrumeo' and 'be note whicb il is pvon to
<br />secure remaioing unpaid, are hereby assigned by lhe Borrower to Ibo
<br />Leoder, and shall be paid fortbwilb to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />- indebtedness.
<br />
<br />12. The Borrower further agrees lbal sbould lbis instrumeot and
<br />the DOte secured hereby not be eligible for insurance under tbe
<br />National Housing Act wilhin eight monlhs from lbe date bereof
<br />(wriueo Slatemeot nf any officer of the Department of HollSing and
<br />Urban Development or aulborized agent of Ibe Secretary of Housing
<br />and Urban Development dated subsequent tn the eight monl.... timo
<br />from the date of this instrumeo~ decliniog to insure said note and
<br />this mortgage, being deemed condllSive proof of such ineligibility),
<br />the Leuder or bolder of the note may, ar irs option, declare all sums
<br />secured hereby immediately due and payablo. Notwit"'tanding lbe
<br />foregoiog, this option may not be exercised by lbe Lender or lbe
<br />bolder of the note when the ioe1ipbility for insurance under the
<br />National Housi08 Act is due to lbe Leoder's failure 10 remil the
<br />mortpp iosurance premium to the Department of Housing and
<br />Urban Deve10pmenL
<br />
<br />13. 1bal iflbe Borrower fails '0 make any paymonts of money
<br />when lbe same becomo due, or fails to conform to and comply witb
<br />
<br />8R_10620S
<br />
<br />any of the conditions or asrccments contained in this instrument. or
<br />dv: note which It secures, then the entire principal sum and accrued
<br />interesl.hall at once become due and payable, atlho election of the
<br />Lender.
<br />
<br />Lender sball pve notice to Borrower prior to acceloration
<br />following Bonower's breach of any covenant or agreement in this
<br />instrumont (buI not prior 10 acceleration under paragraph 12 unless
<br />applicablo law provides othorwise). Tho notico shall specify: (a) tbo
<br />deraul~ (b) lhe action required to cure tbe dofaull; (c) a dale, n~, less
<br />lban 30 days from ,be dale tbe notice is given 10 Borrower, by wbich
<br />the dofault musl be cured; and (d) tbat failure to cure Ibo default on
<br />or before tbe date specified in tho notico may result in a=leration
<br />oflhe sums secured by tbis instrumont and sale of the Property. Tho
<br />no,ice shall further inform Borrower of tbe right to reinslate after
<br />acceleration and the rigbl to bring a court action 10 assen Ihe non-
<br />existeoce of a defaull or any o,ber defense of Borrower '0
<br />acceleration and sale. If Ibe defaull is not eured on or before the da'e
<br />specified in the notice, Lender at its option' may require immediate
<br />paymenl in full of all sums secured by Ibis instrument wilboUI
<br />funher demand and may invoke the power of sale and any other
<br />remedies permilted by applicable law. Leuder shall be ontitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13, including, but nol limited to, reasonable
<br />auomeys' fees and costs of title evidence.
<br />
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in eacb county in wbieh any part of ,be Property is located
<br />and shall mail copies of sucb notice in Ibe manner pre5Cnbed by
<br />applicable law to Borrower and '0 lbe othor persons prescnbed by
<br />applicable Jaw. After tbe time required by applicable law, Trustee
<br />shall give public no~ce of sale to Ihe persons and in lbe manner
<br />prescribed by applicable law. Trustee, without demand on Borrowor.
<br />shall sell tbe Property at public auction to lbe highest bidder al'he
<br />time and place and under the terms designated in the notice of sale
<br />in onc or mon: parcels and in any order Trustee determines, Trustee
<br />may postpone sale of all or any parcel of tbe Property by public
<br />announcemont at the time and place of any previously scbeduled
<br />sale. Lender or irs designee may purcbase the Propeny at any sale.
<br />
<br />Upon receip' of payment of lbo price bid, Trustee sball delivor to
<br />the pur<:1wer Trustee's deed conveying the Property. The recitals in
<br />lbe Trustee's deed sball be prima facie evidonce of ,he tru'b of Ibe
<br />statemenlS made thorein. Trustee shall apply lbe proceeds of tbe sale
<br />in tbe followinK order: (a) to all expenses of ,he sale, induding, but
<br />nnt limited '0, Trustee's fees as permilted by applicable law and
<br />reasonablo auoroeys' fees; (b) to all sums secured by this Socuri'y
<br />Instrumen~ and (c) any excess to the person or persons legally
<br />entitled to iL
<br />
<br />14. Upon acceleratioo under paragrapb 13 or abandonmont of tho
<br />Propeny, Lender (in person, by agont or by judicially appointed
<br />receiver) shall be ..tided to enter upon, like possession of and
<br />manage the Property and to collect tbe rents~of the Property
<br />induding lbase past due. Any rents collected by Leuder or tho
<br />receiver sball be applied first to payment of lhe cosrs of management
<br />of the Property and collection of renlS, induding, but nOllimited to.
<br />receiver's fees., premiums OD receiver's bonds and reasonable
<br />anorney's fees. and lben to tbo sums secured by lbis instrument.
<br />
<br />Page 3 of 5
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<br />:~' 0 c.,qq.~a1~DT-1
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