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<br />") 88-106906
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<br />Lendr.r. In event of Joss Borrower \11111 give Immediate notice by
<br />mail 10 the Lender, who may make proof of Joss tr not mode
<br />promptly by Borrower. and each insurance company concerned
<br />Is hereby nuthorlzed and directed to mnke pnyment for such loss
<br />directly tu the Lender Instead of to the Borrower and the
<br />Lender jointly, and the Insurance proceeds, or any part thereof,
<br />may be applied by the Lender ot Its option either to the
<br />reduction of the Indebtedness hereby secured or to the
<br />restoratio~ or repair of the property damaged. In event of
<br />foreclosure of this instrument or other transfer of title to the
<br />mortgaged property in extinguishment of the Indebtedness
<br />secured hereby, all right. title and interest of the Borrower in
<br />and to any insurance policies then in force shall pass to the
<br />purchast:r or grantee.
<br />
<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 />profits, 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 indebtedness as wen before as after default in the
<br />conditions of this instrument. and the Lender may demand, sue
<br />for and retover any such payments when due and payable, but
<br />shall not be required so to do. This assignment is to terminate
<br />and become nuJ) and void upon release of this instrument.
<br />
<br />10. That the Borrower will keep the buildings 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 />
<br />] I. That If the premises, or any part thereof, be condemned
<br />under the powe!-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 />Ilmount of Indebtc:dnclls upon this instrument and the note
<br />which h is slven to secure remaining unpaid, are hereby assigned
<br />by the Borrower to (he lender, Bnd shall be paid forthwith to
<br />said Lender to be applied by the latter on account of the next
<br />maturing installments of such indebtedness.
<br />
<br />)2. The Borrower further agrees that should this instrument
<br />Bnd the note sccured hereby not be eligible for insurance under
<br />the National Housing Act within eight months from the date
<br />hereof (written 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 an sums setured 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 />
<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 nole 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.
<br />
<br />Lender shall give notice to Dorrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement In
<br />this instrument (but not prior to acceleration under paragraph
<br />12 unless applicable lew provides otherwise). The nolice shall
<br />specify: (a) the default; (b) the nctlon required to cure the
<br />default; (cl u dote, not less than 30 days from the date the
<br />notice is given to Borrower, by which the default mull be cured:
<br />and (d) that failure to cure the default on or before the date
<br />specified in the notice may 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 11 coun action to assert the
<br />non-existence of 11 default or any other defense of Borrower to
<br />accelerotion and sale. !f 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 fuU of all sums secured by this
<br />instrument without further demand and may invoke the power
<br />of sale and any other remedi:s 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 />
<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 />locnted 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 Propeny at
<br />public auction to thf' 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 pllrcel of the Property by public
<br />announcement at the time and place of any previously scheduled
<br />!iale. 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 />to 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 ordu: (a) to 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 te it.
<br />
<br />14. Upon acceleration under paragraph 13 or abandonmenl of
<br />the Property, Lender (in person, by agent or by judicially
<br />appointed receiver) shall be entitled to entcr Upon. take
<br />possession of and manage the Property and to collect the rents
<br />of the Property induding 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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