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<br />event of loss Borrower will give immediate notice by mail to the
<br />Lender, who may make proof of loss if not made promptly by
<br />Borrower, and each insurance company concerned is hereby
<br />aUlholized and directed to make payment fOt such loss directly 10
<br />the Lender instead of to Ihe Borrower and the Lender jointly, and
<br />the insurance proceeds. or any parllhereof, may be applied by the
<br />Lender at its option either to the reduction of Ihe indebtedness
<br />hereby secured or to the restoration or repair of the propetty
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgaged property in eiuinguishment of the
<br />indebtedness secured hereby, all right, title and int<.::rest of the
<br />Borrower in and to any insurance policies then in force shall pass to
<br />the purchaser or grantee.
<br />
<br />9. That as additional and collateral SL'CUrity for the payment of the
<br />note dCM:ribcd, and all sums to become due under this instrument,
<br />the Borrower hereby assigns to the Lender all profits, revenues.
<br />royalties, rights and benefits accruing 10 the Borrower under any and
<br />all oil and gas leases on said premises, with the right to rel'eive 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 any such payments when
<br />due and payable, but shall not be required so to do. This assignment
<br />is to terminate and become null and void upon relea.<;e of this
<br />instrument.
<br />
<br />10. That the Borrower will keep the buildings upon said premises
<br />in good repair, and neither commit nor permit waste upon said land.
<br />nor suffer the said premises to be used for any unlawful purpose.
<br />
<br />11. That if the premises, or llny pan thereof, be condemned under
<br />the power of eminent domain, or acquired For a public use, the
<br />damages awarded, the proceeds for the laking of. or the
<br />consideration for such acquisition, to the extent of the 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 Borrower to the
<br />Lender, and shall be paid fonhwith to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebledness.
<br />
<br />12. The Borrower funher agrees that should this instrument and
<br />the note secured hereby not be eligible for insurance under the
<br />National Housing Act within eight months from the date hereof
<br />(written statement of any officer of the Department of Housing and
<br />Urban I;)evelopment or authorized agent of the Secretary of Housing
<br />and Urban Development dated subsequent to the eight months' time
<br />from the date of this instrument, declining to insure said note and
<br />this mortgage, being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of the nole may, at its option, declare all sums
<br />secured hereby immediately due and payable. Notwithstanding the
<br />foregoing, this option may not he exercised by the lender or the
<br />holder of the note when the ineligibility for insurance under tbe
<br />National Housing Act is due to the Lender's failure to remit the
<br />mortSBSe insurance premium to the Depanment of Housing and
<br />Urban Development.
<br />
<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 with
<br />
<br />88- 10672~
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<br />any of the conditions or agreemcnts contllined in this instrument, or
<br />the note which it secures. then the entire principal sum and accrued
<br />interest shallllt once become due llnd payable, al the election of the
<br />Lender.
<br />
<br />lender Shllll give notice to Dorrower prior (0 acceleration
<br />following Borrower's breach of any covenllnt or llgrcemCnt in this
<br />instrument (but not prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwir.e). The notice shall specify; (a) the
<br />defllult: (b) the llction required to cure the defauh; (c) a date, not less
<br />than 30 days from the date the notice is given to Borrower, by which
<br />the default must be cured; and Cd) that failure to cure the defaull on
<br />or before the date specified in the notice may result in acceleration
<br />of the sums secured by this instrument and sale of the Propeny. The
<br />notice shall funher inForm Borrower of the right to reinstate after
<br />acceleration and the right 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 its option may require immediate
<br />payment in full of all sums secured by this instrument without
<br />further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable taw. 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 />attorneys' fees and costs of title evidence.
<br />
<br />If 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 localed
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law to Borrower and to the other persons prescribed by
<br />applicable law. After the time required by applicable law, Trustee
<br />shall give public notice of sale to the persons and in the manner
<br />prescribed by applicable law. Trustee, without demand on Borrower,
<br />shall sell the Property 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 the time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Property at any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver to
<br />the purchaser Trustee's deed conveying the Propeny. The recitals in
<br />tbe Trustee's deed shall be prima facie evidence of the truth of the
<br />statements made therein. Trustee shall apply the proceeds of the sale
<br />in the fallowing order. (a) 10 all expenses oflhe sale, including, but
<br />not limited to, Trustcc's fees as permitted by applicable law and
<br />reasonable attorneys' fees; (b) to all sums secured by this SecurilY
<br />Instrument; and (c) any excess to the person or persons legally
<br />entitled to it
<br />
<br />14. Upon acceleration under paragraph 13 or abandonment of 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 rents of the Propeny
<br />including those past due. Any rents colh:cted by Lender or the
<br />receiver shall be applied first 10 payment of the costs of management
<br />of the Property and colleclion of rents, including. but not limited to,
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />aUorney's fees, and then to the sums secured by this instrument.
<br />
<br />:! J~~;'ItT.,
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<br />Paqe 3 of 5
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