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<br />88- 106453
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<br />Lender. In event of loss Borrower will give immediate: notice by
<br />mail to the Lender. who may make proof of loss if not made
<br />promptly by Borrower. nnd each insurnnct company concerned
<br />is hereby aUlhorized and directed to maKe payment for such 105s
<br />directly to the Lender instead of to the Borrower Ilnd the
<br />Lender jointly, and the insurance proceeds, or any part thereof.
<br />may be applied by the Lender at its option either to the
<br />reduction of the indebtedness hereby secured or to the
<br />restoration or repair of the property damaged. In even( of
<br />foreclosure of Ihis instrument or other transfer of title 10 the
<br />mortgaged property in e~tingui5hment of the indebtedness
<br />secured hereby, all right, title and interest of the Borrower in
<br />and 10 any insurance policies then in force shall pass to the
<br />purchllSer or grantee.
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<br />9. Thai as additional and collateral securilY for the payment
<br />of the nOle described, and all sums 10 become due under this
<br />instT 'menl, Ihe Borrower hereby assigns to Ihe lender all
<br />profits, revenues, TOyalties, rights and benefits accruing 10 the
<br />BorroweT under any and all oil and gas leases on said premises,
<br />with the righl to receive and receipl faT the same and apply
<br />them to said indebledness liS well before as after default in the
<br />condilions of this instrumenl, and Ihe lender may demand. sue
<br />for and recover any such payments when due and payable, but
<br />shall not be required so to do. This assignment i~ to tenninate
<br />and become nuJ! and void upon release of Ihis instrument.
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<br />10. That the Borrower will keep the buildings upon said
<br />premises in good repair, and neither commil nor pennil waste
<br />upon said land, nor suffer the said premises to be used fOT any
<br />unlawful purpose.
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<br />1 I. ThaI if the prc:mises, or any pan thereof. be condemned
<br />under Ihe power of eminent domain, or acquired for a public
<br />use, the damages awarded, the proceeds for the taking of, or
<br />[he consideration for such acquisition, to the extent of the full
<br />amount of indebledness upon this instrument and the note
<br />which it is given 10 -secure remaining unpaid, are hereby assigned
<br />by the Borrower to the Lender, and shall be paid forthwith to
<br />said Lender 10 be applied by the latter on account of the next
<br />maluring installments of such indebtedness.
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<br />12. The Borrower funher agrees that should Ihis instrument
<br />and the note secured hereby not be eligible for insurance under
<br />Ihe National Housing Act within eight months from the date
<br />hereof Cwritten slatement of an)' officer of the Department of
<br />Housing and Urban Development or authorized agenl of lhe
<br />Secretary of Housing and Urban Development daled subsequent
<br />10 the eight months' time from the dale of Ihis instrument,
<br />declining 10 insure said note and this mortgage, being deemed
<br />conclusive proof of such ineligibility), the Lender or holder of
<br />the note may, al its option, declare aU sums secured hereby
<br />immediately due and payable. Notwithstanding the foregoing,
<br />this option may not be exercised by the lender or the holder of
<br />the note when the ineligibilil~ for insurance under the National
<br />Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium 10 the Departmt'Ot of Housing and
<br />Urban Development.
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<br />13. ThaI if the BOlTower fails to make any payments of money
<br />when the same become due, or fails to confonn to and comply
<br />with any of the cDnditions or agreements contained in this
<br />instrumenl, or Ihe note which it secures, then the entire
<br />principal sum and accrued interest shall at once become due and
<br />payable, at the election of the Lender.
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<br />Lender shall give notice 10 Borrower prior 10 acceleration
<br />following Borrower's breach of any covenant or agreement in
<br />this instrument (but not prior 10 acceleration under paragraph
<br />12 unless applicable law provides otherwise). The notia:: shall
<br />specify: (a) the default; (b) the action required to cure the
<br />default; Ic) a date, 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 the defaull on or before the date
<br />specified in the nolice may result in acceleration of the sums
<br />secured by this inslrument and sale of the Property. The notice
<br />.dlall further infonn Borrower of the right to reinstat~ after
<br />accelerulion and the right to bring a court action to assert the
<br />non.existence of a default aT any other defense of Borrower to
<br />...:celeralion and sale_ If the default is not cured on or before
<br />the dale specified in Ihe notice, lender at its option may require
<br />immediate payment in full of all sums secured by this
<br />instrument ....;thout fun her demand and may invoke the power
<br />of sale and any other remedies permiued by applicable law.
<br />Lender shall be entitled to collect all expenses incurred in
<br />pursuing Ihe remedies provided in this paragraph 13, induding,
<br />but not limited to, reasonable attornevs' fees and costs of litle
<br />e\'idence. .
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<br />If Ihe power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any pan of the Property is
<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 law. After the time required by
<br />applicable law. Trustee shall gi\'e public notice of sale to the
<br />persons and in the manner prescribed by applicable law_
<br />Truslee. ....ithout demand on Borrower, sball sell the Property at
<br />public auction to Ihe highest bidder al the time and place and
<br />under the "erms designated in the notice of sale in one or more
<br />parcels and in any order Trustee determines. Trustee may
<br />postpone sale of all or any parcel of the Property by public
<br />announcement al the time and place of any pTe\;ously scheduled
<br />~Ie. lender or its designee ma}' purchase the Propen). at any
<br />!oale.
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<br />Upon reccipt of payment of the price bid, Trustee shall deliver
<br />to the purchaser Trustee's deed conveying the Propert)'. The
<br />recitals in the Trustee.s deed shall be prima facie evidence of the
<br />truth of the statement.. made therein. Trustee shall apply the
<br />proceeds of the sale in the following order: (a) 10 all expenses of
<br />the sale, including. but not limited to, Trustee's fees as
<br />permilled by applicable law and reasonable auomc}"'s' fco; (b.
<br />to all sums secured by this SecurilY Instrument; and (c) an).
<br />eKCCSS to the person or persons legally entitled 10 it.
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<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Propeny, lender lin person, by agent or by judiciaU,..
<br />appointed receh1er) shall be entitled to enter upon, take
<br />possession of and manage the Property and to collect the rent5
<br />of the Properly including those. past due. Any renl5 coUected by
<br />Lender or the receh'er shall be applied first [0 paymenl of the
<br />costs of management of the Propeny and collection of rents,
<br />including, but not limited to, receiver's fees, premiums on
<br />recc:iver's bonds and reasonable allorneys' fees, and then 10 the
<br />sum!. secured by this instrument.
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<br />Pllgo 3 of 5
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<br />HUD-92143DT.'
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