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<br />Lender. In event of 105s Borrower will give immediale notice by
<br />mail to the Lender. who may make proof of 105s if not made
<br />promplly by Borrower, and each insurance: company concerned
<br />is hereby authorized and directed to make payment for such loss
<br />directly 10 the Lender instead of 10 the BOrrower and the
<br />Lender jointb, and the insurance proceeds, or any pari thereof,
<br />may be applied by the Lender at lis option either to the
<br />reduction of the indebtedness hereby sccured or 10 the
<br />restora1ion or repair of the property damaged. In evenl of
<br />foreclosure of this instrument or other trnnsfer of title to the
<br />mortgaged property in extingui.shment of the indebtedness
<br />secured hereby, aU right, tille and interest of the Borrower in
<br />and to any insurance policies then in force shall pass to the
<br />purchaser or grantee.
<br />
<br />9. That as additional and collateral security for the payment
<br />of the note described, and all sums to become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />pro.'ts, revenues, royalties, rights nnd benefits accruing to the
<br />Borrower under any and all oil and gas leases on said premises,
<br />with the right to receive and receipt for the same and apply
<br />them to 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 an)' such payments when due and payable, but
<br />shall nOl be required so to do. This assignment is to lenninate
<br />and become null and void upon release of this instrument.
<br />
<br />10, That the Borrower will k~ the 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 an~'
<br />unlawful purpose.
<br />
<br />II, That if the premises, or any pan thereof. be condemned
<br />under the power of eminent domain, or acquired fOl a public
<br />use. the damages awarded, Lhe proceeds for the taking of. Dr
<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, arc hereby assigned
<br />by the Borrower to the Lender, and shall be paid forthwith to
<br />said Lender to be applied by the lauer on account of the next
<br />maturing installments of such indebtedness.
<br />
<br />12. The Borrower funher agrees thai should this instrument
<br />and the note secured hereby not be eligible for insurance: under
<br />the National Housing Act ",ithin eight months from the date
<br />hereof (y,ritten statement of any officer of the Depanment of
<br />Housing and Urban Development or authorized agent of the
<br />SecretarY of Housing and Urban Development daled subsequenl
<br />to the eight months' time from the date of this instrument,
<br />declining 10 insure said note and this mortgage, being deemed
<br />conclusive proof of such lneligibility), the lender or holder of
<br />the note may, at its option, declare all sums secured hereby
<br />immediately due and payable. Not"';thsumding the foregoing,
<br />this option may not be exercised by the Lender or the holder of
<br />the note when Lhe ineligibility for imurance under the National
<br />Housing Act is due to the Lender', failure 10 remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<br />
<br />13. That if the Borrower fails to make an)' 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 />inslrUment, or the note which it ,eeures, then the entire
<br />principal sum and accrued interest shall DI once become due and
<br />payable, at the election of the Lender.
<br />
<br />"
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<br />88-106450
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<br />Lender shall give notice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in
<br />this instrument (but not prior to acce:leration under paragraph
<br />I Z unless applicable law provides otherwise). The: notice shall
<br />specify: (a) the default; (b) the action required 10 cure the:
<br />default; (c) a date, 1I0t Icss than 30 days from thc date the
<br />notice is given to Borrower, by which the default must be cured;
<br />and (d) that failure to cure the defaull 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 furthl!T inform Borrower of the right 10 reinstate after
<br />acceleration and the righl to bring a court aClioD to assert the
<br />non-existence of a default or any other defense of Borrower to
<br />deceleration and sale. If the default is not cured on or before
<br />the date specified in the notice. Lender at its option may require
<br />immediate payment in full of all sums secured by this
<br />instrument without further demand and may invoke the power
<br />of sale and any other remedies permitted by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in
<br />pursuing the remedies provided in this paragraph 13. including,
<br />bUI not limited to. reasonable attorneys' fees and costs of title
<br />e\.idence. .
<br />
<br />I f the power of sale is invoked, Trustee shall r..xord a notice: of
<br />default in each county in which any part of the Propcny is
<br />localed 3nd shall mail copies of such notice: in the manner
<br />prescribed by applicable law to Borrower and to the other
<br />~rson5 prescribed by applicable law, After the time required by
<br />applicable law, Trustee shall give public notice of sale to Lhe
<br />persons and in the manner prescribed by applicable law.
<br />Trustee. widu::aul demand on Borrower, shall sell the Property at
<br />public auction to the highest bidder at the time and place and
<br />under the terms designated in the notice of sale in one or more
<br />parcels and in au}' order Trustee determines. Trustee may
<br />poslpone sale of all or any parcel of the Propcny by public
<br />announcement at the time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Property at any
<br />sale.
<br />
<br />Upon receipl of payment of the price bid, Trustee shall ddh'er
<br />to the purchaser Trustee's deed conveying Lhe Propcny. The
<br />recitals in the Trustee's deed shall be prima facie l:\idence of the
<br />truth of the stalements made therein. Trustee shall apply the
<br />proceeds of the sale in the foDoying order. (a) to aU expenses of
<br />the sale, including, but not limited to, Tru5t<:e's fees as
<br />permitted by applicable law and reasonable attome)o'5' fees: (b)
<br />to all sums secured by this Security Instrument: and (e) any
<br />excess to the person or persons legally entitled to it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Propcn~", Lender (in penon, by agenl or by judicially
<br />appointed receiver) shall be entitled to enter upon, take
<br />possession of and manage the Propeny and to collect the rents
<br />of the Propcn)' including those past due. Any mils collected by
<br />Lender or Ihe receiver shall be applied first to paymenl of che
<br />costs of management of lhe 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 tlili inslrummt.
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