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<br />eyent or loss Borrower will sive immediate notice by mail to the
<br />Lender, who may make proof of loss if nor made promplly by
<br />Borrower, and Clch insurance company concerned is hereby
<br />authorized and direc1ed to make paymenl 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 />Leader at ilS opi;on either 10 the reduction of lbe indebtedness
<br />hereby secured or 10 the restoration or repair of lbe property
<br />damaged. 10 event of foreclosure of Ihis instrument or other transfer
<br />of tiUe to the mortgaged property in extinguisbment of lbe
<br />indeb1edness secured bereby, all rigb~ title and interesl of the
<br />Borrower in nnd to any insurance policies then in rorce shall pass to
<br />the purchaser or grantee.
<br />
<br />9. That as additional and collateral security for the payment of the
<br />Dote described, and all sums to become due under this instrument.
<br />the Borrower hereby assigns to the Lender all pro filS. revenues.
<br />royalties. rigblS and benclilS accruing 10 tbe Borrower under any and
<br />all oil and gas leases on said premises, with the rigbtlo receive and
<br />receipt for the same and apply tbem 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 paymenlS wben
<br />doe 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.
<br />
<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neither commit DOl' permit waste upon said land,
<br />oor suffer the said premises to be used for any unlawful purpose.
<br />
<br />II. 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 for the taking of, or the
<br />consideration for such acquisition, to the exteot of the full amount of
<br />indebtedness upon this instrument and the note whicb it is given to
<br />secure remaining unpaid. are bereby assigoed by the Borrower to the
<br />Lcoder, and sball be paid forthwilb 10 said Lender to be applied by
<br />the latter 00 accounl of the nexl maturiog installmenlS of such
<br />iodebtedoess.
<br />
<br />l2. The Borrower further agrees lhat should this instrument and
<br />the oote secured hereby not be eligible for insurance under the
<br />National Housing Act within eigbt months from the date bereof
<br />(wrinen statemenl of any oIIicer of the Departmenl of Housing and
<br />Urban Developmenl or authorized agent of the Secretary of Housing
<br />and Urban Developmeot dated sllbsequenllO the eigbt monlbs' time
<br />from the date of tbis instrument, dc.clining to insure said noLe and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or bolder orlhe note may, at its option, declare all sums
<br />secured bereby immediately due and payable. Notwithstanding lhe
<br />foregoing, this option may not be exercised by the Lender or the
<br />holder of the note when the ioeligibililY for insurance under Ihe
<br />Natiooa\ Housiog Act is due to the Leoder's failure 10 remilthe
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<br />
<br />13. ThaI if lhe Borrower fails to make any paymenlS of money
<br />when Ihe same become due, or fails 10 conform 10 and comply with
<br />
<br />88- 106221-
<br />
<br />any or the conditions or agreements contained in this instrument, or
<br />the notc which it secures, then the entire principal sum Bnd accrued
<br />interest shall at once become due and payable, al the election of the
<br />Lender.
<br />
<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (but nol prior to acceleration under paragraph 12 unless
<br />applicable law provides olberwise). lbe notice shall specify: (a) lhe
<br />defaul~ (b) the action required 10 cure Ihe defaull;(c) a date, nOlle"
<br />than 30 days from tbe dale the notice is given 10 Borrower, by wbich
<br />the default must be cured; and (d) thot failure 10 cure Ihe deraull on
<br />or before the date specified in the notice may result in acceleration
<br />of lbe sums secure<! by tbis instrument and sale of the Property. The
<br />notice shall further inform Borrower of the right to reinstate after
<br />acceleration and the rigbt 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 the default is not cured on or before the date
<br />specified in the notice, Lender at ilS option may require immediate
<br />payment in full or all sums secured by this instrument wilhout
<br />furtber demand and m.y invoke the power of sale and any olher
<br />remedies permitted by applicable law. Lender sholl be enlitled 10
<br />collect aU expenses incurred in pursuing the remedies provided in
<br />this paragraph 13. including. but notlimiled 10, reasonable
<br />attorneys' fees Bnd COSlS of title evidence.
<br />
<br />Ir 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 lbe other persons prescribed by
<br />applicable law. After tbe time required by applicable law, Truslee
<br />shall give' public notice of sate to the persons Bnd in the manner
<br />prescribed by applicablolaw. Trustee, without demand on Borrower.
<br />sball ..lithe Property at public auction to the high"l bidder atlhe
<br />time and place and under the lerms 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 />announcement at the time and place of Bny previously scheduled
<br />sale. Lender or ilS designee may purcbase lhe ProperlY ot any sale.
<br />
<br />Upon receipt of payment of tbe price bid, Trost.. shall deliver 10
<br />the purcbaser Trustee's deed conveying the Property. The recitals in
<br />the Trustee's deed shall be prima facie evidence of lhe truth of the
<br />statemenlS made Iherein. Trustee shall apply lbe proceeds or the sale
<br />in tbe following order: (a) 10 all expenses of the sale, including, but
<br />notlimiled to, Trustee's fees as permilled by applicable law and
<br />reasonable allomeys' fees; (b) to all sums secured by Ihis SecurilY
<br />Instrument; Bnd (c) any cllCCSS to the person or persons legally
<br />entitled to iL
<br />
<br />l4. Upon acceleration under paragraph 13 or abandonment vf 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 collect the renlS of the Properly
<br />including lbo.. pasl due. Any renlS collected by Lcnder or the
<br />receiver shall be applied firsllo poyment of Ihc costs or maoagemcnt
<br />of the Property and collection of rents, including, but not limited to,
<br />receiver's rees, premiums on receiver's bonds and reasonable
<br />anomey's fees, and then 10 the sums secured by this instrument.
<br />
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