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<br />-'"' 88- 106601
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<br />Lender. In event of loss Borrower will slve lmmedlolc notice by
<br />malllo the Lender. who may make prool of loSs Ir not made
<br />promptly by Borrower. ami each insurance company concerned
<br />Is hereby Ilulhorlzed and directed to make payment for such los5
<br />dlreclly (0 the Lender InstcRd of 10 the Borrower nnd the
<br />Lender Jointly, and the insurance proceeds, or any pan thereof.
<br />may be applied by the Lender at its option either to the
<br />reduction of the indebtedness hereby secured or 10 the
<br />restoration or repair of the property damaged. In event of
<br />forcdosurc of this Instrument or other transfer of title to the
<br />mortgaged properly in extinguishment of the llldebtcdness
<br />5ecur~ hereby. all right. Litle 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 collateral security for the payment
<br />of the note described, and aU sums 10 become due under this
<br />instrument, the Borrower hereby assigns 10 the Lender all
<br />profits, revenues, royalties, rights and benefits accruing to Ihe
<br />Borrower under any and aJ! oil and gas teases 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 aCter defauh in the
<br />conditions of this instrument, and the lender may demand, sue
<br />for and recover any such payments when due and payable, bUI
<br />shall not be required so to do. This assignment is to lermimlle
<br />and become null and void upon release of this instrumenl.
<br />10. That the Borrower will keep the buildinss 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 part 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 />~aid Lender to be applied by the latter on account of the next
<br />maturing installments of such indebtedness.
<br />12. The Borrower further agrees 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 the Department of
<br />Housing and Urban Development or authorized agent of the
<br />Secretary of Housing and Urban Development dated subsequent
<br />to the eight months' time from the date of this instrument,
<br />declining to insure said note and this mortgage, being deemed
<br />conclusive proof of such ineligibility), the Lender or holder of
<br />the note may, at its option, declare all sums secured herebv
<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 ineligibility for insurance under the National
<br />Housing Act is due to the Lender's failure to remit the
<br />mortgage insurance premium to the Department of Housing and
<br />Urban Development.
<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 shall at once bCl;ome due and
<br />payable, at the election of the Lender.
<br />
<br />Lender ahall Hive notice to Dorrower prior to acceh:ratlon
<br />following Borrower's breach of any covcnant or agreement In
<br />Ihis Instrument (but not prior to acceleration under paragraph
<br />12 unlcss nppllcnblc law provides otherwise). The notice shan
<br />specify: (a) the default; (b) the acllon required to cure the
<br />default; (c) 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 default on or before the date
<br />specified In the norice may result In acceleration of the sums
<br />secured by this instrument and sale of the Property. The notice
<br />sh..U further inForm Borrower of the right 10 reinstate after
<br />acceleration and the right to bring 11 court Slcdan to assert the
<br />non-existence of a default or Dny other defense of Borrower to
<br />ar.celeration nnd sale. If the default 15 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 pennitled 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 />but nol Iimiled to, reasonable attorneys' fees and costs of title
<br />evidence.
<br />
<br />If the power of sale 15 invoked, Trustee shall record a notice of
<br />default in each county in which any part of the Propelty 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. Afler the time required by
<br />applicable law, Trustee shan give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee,.without demand on Borrower, shall sen the Property at
<br />public auction to the highest bidder at the time and place and
<br />under the tenns designated in the notice of sale in one or more
<br />parc~ls and in any order Trustee detennines. Trustee may
<br />postpone sale of all or any parcel of the Property 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 receipt of payment of the price bid, Trustee shall deliver
<br />10 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 the sale in the following order: (a) 10 all expenses of
<br />the sale, including, but not limited to, Trustee's fees as
<br />permitted by applicable law and reasonable attorneys' fees; (b)
<br />to all sums secured by this Security Instrument; and (c) any
<br />excess to the person or persons legally entitled to it.
<br />
<br />J4. Upon acceleration under paragraph 13 or abandonment 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 Property 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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<br />HUD-92143DT-l
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