|
<br />88-106651
<br />
<br />event of loss Borrower will sive immediate notice by manto the
<br />Lender, who may make proof of loss irnol made promplly by
<br />Borrower, and each insurance company concerned is herehy
<br />authorilCd and directed to make payment for ~ucb loss directly to
<br />the Lender iilStead of to the Borrower Ind lhc LenJer jointly, and
<br />lbe insurance proceeds, or any pan lbereof, may be spplied by tbe
<br />Lender at its option either 10 the reduction of the indebtedness
<br />hereby secured or to the reslollltion c;tr repair of Ihe property
<br />damqed. [n event of foreclosure of this instrument or other transfer
<br />of tide to the mortpgaJ property in extinguishment of the
<br />indebtedness secured hereby, III right, title L'1d interest of lite
<br />Borrower in and 10 Iny insurance policies then in force !lhall pass to
<br />the purchaser or granlec.
<br />
<br />9. That as additional and collateral security for the payment of the
<br />DOle descn'bed. and all SU1D5 to become due under this instrument,
<br />the Borrower hereby assigns [0 tbe Lender all profits, revenues,
<br />royalties, rights and benefits accruing to the Borrower under any and
<br />all oil and gas leases on said premises, with the rightlo receive and
<br />receipt for the same and apply them 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 Iny such paymenls when
<br />due and paysble, but shall not be required so 10 do. This assignment
<br />is to tenninate and become null and void upon release of this
<br />instrument.
<br />
<br />10. That lbe Borrower will keep lbe buildings upon said premises
<br />iD good repair. and neither commit nor permit waste upon said land,
<br />Dor suffer the said premises to be used for any unlawful purpose.
<br />
<br />II. That if lbe premises, or any part lbereo~ be coodemned under
<br />the power of eminent domain, or acquired for a public use, the
<br />damages awarded, the proceeds for lbe taking 01, or lbe
<br />consideration for such acquisition, to the extent of me full amount of
<br />indebtedness upon this instrument and the note which it is given to
<br />secure remaining unpaid, are hereby assigned by the 3orrower to lIIe
<br />Lender, and shall be paid fonhwilb to said Lender to be applied by
<br />the latter on account of tbe next maturing installments of such
<br />indebtedness.
<br />
<br />12. The Borrower funher agrees that should tbis instrument and
<br />the nole secured hereby not be: eligible for insurance under the
<br />Nstional Housing Act wilbin eight moolhs from lbe date hereof
<br />(written statement of any officer of the Depanment of Housing and'
<br />Urban Development or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eigbt months' time
<br />from the date of this instrument, declining to insure said note and
<br />lbis mongage, being deemed conclusive proof 01 such ineligibility),
<br />the Lender or bolder of the note may. at its option, declare aU sums
<br />secured hereby immediately due and payable. Notwithstanding lbe
<br />foregoing, lbis option may nol be exercised by lbe Lender or the
<br />bolder of the note when the ineligibility for insurance under tbe
<br />National Housing Act is due to lbe Lender's Isilure to remit the
<br />monpae insurance premium to the .Depanment of Housing and
<br />Urban Development
<br />
<br />13. That if the Borrower fails to make any psyments of money
<br />when the same become due, or fails to conform 10 and comply with
<br />
<br />any of the conditions or agreements conlalned in this instrument. or
<br />th~ nole which it secures, then the entire principal sum and accrued
<br />Inlaresl shan at once become due Dnd payable, al the election or the
<br />Lender.
<br />
<br />Lender shall give notice 10 Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in tbis
<br />iDStrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise). The notice shall specily: (I) the
<br />defaull: (b) the action required to cure the defaull; (e) a date, nOlless
<br />than 30 days from the dste the nodce is given to Borrower, by which
<br />the default must be cured; and (d) that Jailure to cure the default on
<br />or before the date specified in the notice mllY result in acceleralion
<br />of the sums secured by this instrumenl and sale of the Propeny. The
<br />notice shall funher inform Borrower of Ihe right to relnslate after
<br />acceleration and the rigbt to bring a court action to assert the non-
<br />existence of a default or any olher defense of Borrower to
<br />acceleration and sale. II the default is not cured on or belore the date
<br />specified in the notice. Lender at its option may require immediate
<br />payment in full of all sums secured by this instrument without
<br />funber demand and may invoke the power of sale and any olher
<br />remedies permitted by applicable law. Lender shall be entitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />this paragraph 13. including, but not limited to, reasonable
<br />altomeys' fees and costs of litle evidence.
<br />
<br />If the power of sale is invoked, Trustee shall record a notice of
<br />default in each county in which any pan of the Property is located
<br />and shall mail copies of such nOlice In the manner prest:nbed by
<br />applicable law 10 Borrower and to the other persons prescribed by
<br />applicable Isw. After lbe time required by Ipplicablelaw, Trustee
<br />shall give public notice of sale 10 the persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />sban sell tbe Propeny at public auction to the highest bidder at the
<br />time and place and under the terms 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 Propeny by public
<br />announcement at tbe time and place of any previously scheduled
<br />sale. Lender or Ils designee may purchase the Propeny at any sale.
<br />
<br />Upon receipt of payment of the prjce bid, Trustee shall deliver to
<br />the purchaser Trustee's deed conveying tbe Propeny. The recitals in
<br />lbe Trustee's deed shall be prima lacie evidence of the lrUlb of lbe
<br />slatemeolS made therein. Trustee shall apply the proceeds of the sale
<br />in the following order. (a> to all expenses of the sale, including, but
<br />not limited to, Trustee's fees as permitted by applicable law and
<br />reasonable attorneys' fees; (b) 10 all sums secured by Ihis Security
<br />Instrument; and (c) any excess to lbe person or persons legally
<br />entitled to it.
<br />
<br />14. Upon aa:eleration under paragraph 13 or abandonment 01 the
<br />Propeny, Lender (in pelSOn, by ageot or by judicislly appointed
<br />receiver) shall be entil1ed to enter upon, take possession of and
<br />manage the Property and to collecl the renlS 01 !he Propeny
<br />including those past due. Any rents collected by Lender or the
<br />receiver shall be applied first 10 payment of the coslS of management
<br />of the Property and collection of renls. including, but nOI limited to,
<br />receiver's fees. .premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by lIIis instrument.
<br />
<br />Page 3 of 5
<br />
<br />HUD-IIZ143DT-1
<br />
|