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<br />Lender. In event of loss Borrower will give immediate notice by
<br />mall to the Lender, who may make proof of loSIo If nol made
<br />promptly by Borrower, and each Insurance company concerned
<br />is hereby authorized Bnd directed to make payment for such loss
<br />directly 10 Ihr Lender Inslead of 10 the Borrower and the
<br />Lender jointly, and the Insurance proceeds, ur any part thereof,
<br />may be applied by the lender at ils option ehher to the
<br />rductlon of the indebledness hereby secured or to the
<br />restorallan or repair of the property damaged. In event of
<br />foreclosure of this Instrument or other transfer of title to Ihe
<br />mongaged properl)' in extinguishment of Ihe indebtedness
<br />secured hereby, all right, title and interest cr the Borrower in
<br />and 10 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 all sums to become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />profifs, revenues, royalties, rights and 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 indebledness as well before as after defaull in the
<br />conditions of this instrument, and the 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 is 10 terminate
<br />and become null and void upon release of this instrument.
<br />10. That the Borrower will keep the buildings upon said
<br />premises in good repair, and neither commit nor permil waste
<br />upon said land, nor suffer the said premi!.es 10 be used for any
<br />unlawful purpose.
<br />I I. That if the premises. or any part Ihereof, be condemned
<br />under the power of eminent domain, or acquired for a public
<br />use, the damages awarded, the proceeds for the laking of, or
<br />the consideration for such acquisition, to the extenl 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 fonhwith to
<br />said Lender to be applied by the lauer on account of the next
<br />maturing installments of such indebtedness.
<br />12. The Borrower further l1grees that should this instrument
<br />and thE: note secured hereby not be eligible for insurance under
<br />the National Housing ACl within eight months from the date
<br />hereof (written statement of any officer of thc Department of
<br />Housing and Urban Dcvelopment 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 mongage. being deemed
<br />conclusive proof of such ineligIbility), the Lender or holder of
<br />the note may, at its option, declare all 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 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 paymenls 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, tben the entire
<br />principal sum and accrued imerest shall at once become due and
<br />payable, at the eJection of the Lender.
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<br />106756
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<br />Lender shall give notIce to Borrower prior to acceleration
<br />following Borrower's breach of any covenanl or agreement In
<br />this Instrument (but not prior to acceleration under paragraph
<br />12 unless applicable law provides otherwise). The notice shall
<br />specify: (0) the default; (b) the action required 10 cure the
<br />default; (c) n 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 fd) that failure to ture the default on or before the date
<br />specified in the notice mllY result In acceleration of the sums
<br />secured by this instrument and sale of the Property. The notice
<br />shall further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action 10 assert the
<br />non~existence of Ii defauJt or any other defense of Borrower to
<br />acceleration 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 />but not limited to, reasonable attorneys' fees and costs of title
<br />evidence.
<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
<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 give public notice of sale to the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee, without 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 any order Trustee determines. 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 />Upon receipt of payment of the price bid, Trustee shall deliver
<br />to the purchaser Trustcc'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) eo aU expensC5 of
<br />the sale. including, but not limited to. Trustcc's fees as
<br />permitted by applicable law and reasonable ottorneys' fees: (b)
<br />to all sums secured by this Security Instrument; and tc) any
<br />exccss to the person or persons legally entitled to it.
<br />14. Upon acceleration under paragraph 13 or abandonment of
<br />the Property, Lender (in person, by agent or by judicially
<br />appoineed 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 />coses of management of the Property and collection of renes,
<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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