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<br />88- 10691B
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<br />event of loss Borrower will live Immediate notice by mail 10 the
<br />Lender, wbo may make prool 011055 II nOI made promp~y by
<br />Borrower, ADd each insurance company concerned is hereby
<br />lulhoriIcd &Del directed 10 make payment for ~uch Iou direcdy to
<br />the Lender instead of to lhc Borrower and the Lender jointly, and
<br />lbe iosunmce proceeds, or any part lbereof, may be applied by lbe
<br />Lender II its option either to the reduction of the indebtedness
<br />bereby secured or 10 the resloration or repair of the property
<br />damqed. [n event of foreclosure of this instrument or other transfer
<br />of ti~e 10 Ibe monpged property io extinguishment 01 the
<br />indebtedness secured hereby, all rigbt, title and interest of the
<br />Borrower in and to any irQllrance policies then in force shall pass to
<br />the purchaser or grantee.
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<br />9. That as additional and collateral security for the payment of lbe
<br />Dote described, and .U sums to become due under this instrument,
<br />the Borrower hereby ~ to the 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 riShl to receive and
<br />receipt for lbe same and apply lbem to said lodebtedness as wen
<br />before IS after dcf'ault 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 sball not be required so to do. This assignment
<br />is to &.ermioate and become null and void upon release of this
<br />instrument.
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<br />10. Thai the Borrower WIll keep lbe buildings upon said premises
<br />in good repair, and neither commit nor permil waste upon said land,
<br />Dor suffer the said premises to be used for any unlawful purpose.
<br />
<br />11. lbat if the premises, or any part Ihereof. be condemned under
<br />dac power of eminent domain, or acquired for a public use, the
<br />damqes awanled, the proceeds for lbe taking o~ or the
<br />consideration for sucb acquisition, to the cxleDt of the full amount of
<br />indchu:dncss upon this instrument and the note which it is given to
<br />SCClIIC remaining unpaid, ... bereby assigned by the Borrower to lbe
<br />Lender, II:d sball be paid forthwilb 10 said Lender to be applied by
<br />die lalter on aa:ount of the next maturing insWlments of sucb
<br />indebtedness.
<br />
<br />12. The Borrower further _ that sbould Ibis instrument and
<br />the note secured bereby nol be eligible for insurance uoder lbe
<br />Natiooal Honsing Act witbin cigbl months from the date hereol
<br />(wril1en statemenl 01 any officer of the Departmeot of Housing and
<br />Urban Development or aulborized qenl of the Secretary of Housing
<br />and Urban Development dated subsequent 10 lbe eight months' time
<br />from the date of Ibis instrumeo~ tIeclining 10 insure said oote and
<br />Ibis mo~ being deemed conclusive proof of such ineligibility),
<br />the Lender or holder of lhc note may, at its option, declare all sums
<br />secured hereby immediately due and payable. NolWitbsunding lbe
<br />foregoi... Ibis optioo may not be exen:iscd by lbe Lender or lbe
<br />bolder or the note when lbe ineligibility lor ioswance uoder lbe
<br />Notioual Housing Act is due to the Lender's failure 10 remil lbe
<br />monpge insunmce premium 10 !be Department of Housing and
<br />Urban DcvcIOpOlCllL
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<br />13. That. if the Borrower fails to make any payments of money
<br />wbcn the same become due, or f'at1s to conform to and comply with
<br />
<br />Iny of the conditions or IsrcemenlS contained in this Inslrument, Dr
<br />the nole which iI KCUre!l, then Ihe enlire principal sum Ind accrued
<br />interesl shall 11 once become due and payable, lIthe elecdon of tbe
<br />Leoder,
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<br />Lender shall give notice lO Borrower prior (0 acceleration
<br />following Borrower's breach of any covenant or Isreementln this
<br />ins1rument {but nol prior to acceleration under paragraph 12 unless
<br />applicable law provides otherwise), The notice shall specify: (a) the
<br />defaul~ (b) Ihe action required to cure the dela"lI: (c) a date, nOlless,
<br />than 30 days flOm the date the notice Is given \0 Borrower, by which
<br />the deflull mun be. cured; and Cd) Ihat flilure 10 cure Ihe defaull on
<br />or before the date specified in the notice may resuh in acceleration
<br />of the sums secured by this instrumenl and sale of Ihe Propeny. The
<br />notice shall funher inform Borrower of the (ighlto reinSlale after
<br />acccI~ration and the rigbElo bring a coon &clion to assen the non.
<br />existence of a defaull or any other defense of Borrower to
<br />acceleration and sale. If the defaull is nOI cured on or before me dale
<br />specified in the notice, Lender lit i1S Dp1ion may require immediate
<br />paymenl in full of all sums secured by this instrument withoUI
<br />further demand and may invoke the power of sale and any olher
<br />remedies permitted by applicable law. Lender sball be entitled to
<br />collect all expenses incurred in pursuing the remedies provided in
<br />Ibis paragraph 13, including, but nOl Iimiled lo, reasonable
<br />a1tomeys' fees and cos1S of tide evidence.
<br />
<br />If Ihe power of sale is invoked. Truslce shall record a notice of
<br />default in each county in which any pan of the Propcny is loealcd
<br />and shall mail copies of such notice in the manner prescribed by
<br />applicable law 10 Borrower and to the other persons prescnbed by
<br />applicable law. After me time required by applicable law, Truslcc
<br />shall give public notice of sale 10 Ihe persons and in Ibe maDDer
<br />prescnbed by applicable law. Trustee, without demand on Borrower~
<br />sball selllbe Property II public auction to me highest bidder at the
<br />time and place Ind under the lerms designated in Ihe notice of sale
<br />in one or more parcels and in any order Trustee determines. Trustee
<br />may poslpone sale of all 0' any pan:el of lbe Property by public
<br />announcement at the time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Propeny at any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver to
<br />lIle purchaser Trustee's deed conveying the Property. The rccita!s in
<br />lbe Trustee's deed sball be prima lacie evidence of the trulb of !be
<br />statements made therein. Trustee sball apply !be proceeds 01 !be >a1e
<br />in the fOllowing order. (a) 10 all expcoscs of lbe sale, includiog, but
<br />not limited to, Trustee's fees as permitted by applicable law and
<br />reasonable atlOmeys' lees; (b) to all sums secured by lbis Security
<br />lostrumcn~ and (c) any excess to lbe person or persons 1q:t\ly
<br />entitled to it
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<br />14. Upon acceJ.eration under paragraph 13 or abandonmenl of lhe
<br />Property, Leoder (in pelSOO, by ageot or by judicially appoioted
<br />receiver) shall be entitled to enter upon, take possession of and
<br />manage the Property and 10 collect lbe rents 01 lbe Property
<br />including those past due. Any ren1s collcctcd by Lender or the
<br />receiver shall be applied fllSt 10 paymeDI of the COS1S of managemenl
<br />of Ihc Propcny and COllectiOD of ren1S. including, but not limited 10.
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, and then to the sums secured by this inslrument.
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<br />Pagl!l-3 01 5
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<br />HU~121QDT-'
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