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<br />lender. In event of loss Borrower will give Immediate nolice by
<br />mail to the lender. who may make proof of loss if nol made
<br />promptly by Borrower, and each insurance company concerned
<br />is hereby authorized nnd directed 10 make payment for such loss
<br />dirc<:tly to tllr. ! f" ~i~r:" instead of ~.;) the Harrower nnd the
<br />Lender jointly. ",-;,:.1 ill.;.' Insuranc~ proceeds, or any part thereof.
<br />may be applieD l.. ~ !he Lender at its optJon either to the
<br />reduction of the indebtedness hereby secured or to the
<br />rest~ration or repair of the property damaged. In event of
<br />foreclosure of this instrument or other transfer of title to the
<br />mortgageLl property in extinguishment of th.: Indebtedness
<br />secured hereby, all right, title and interest of the B"rrowlt in
<br />and to 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 />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 well before as af[cr defauh 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 to terminate
<br />and become null and void upon release of this instrument.
<br />10. That the Borrower wil1 keep the buildings upon said
<br />premises in good repair, and neither commit nor permit wnste
<br />upon said land. nor suffer the said premise~ to be used for any
<br />unlawful purpose.
<br />II. That if the premises, or any pan thereof, be condemned
<br />under the power 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 />amount of indebtedness upon this instrument and the note
<br />which it is given to secure remaining unpaid, arc hcrcby assigned
<br />by the Borrower to the Lender. and shal1 be paid forthwith to
<br />,aid Lender to be applied by the laller on account of the next
<br />maturing installments of Guch indebtedness.
<br />12. -The Borrower further agrees that should this instrument
<br />and the note secured hereby not be eligible for insurance under
<br />the National Housing Act within eight months from the dale
<br />hereof (written statement of any officer of the Depanment of
<br />Housing and Urban Development or authorized agem 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 all sums secured hereby
<br />immediately due and payable. NOlwithstandinr 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 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 />
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<br />
<br />BB- 107018
<br />
<br />lender shall give nOllce to Borrower prior to nccclcrntion
<br />following Borrower's brench or any covenant or agreement In
<br />Ihls insrrument (but not prior to acccleration under parograph
<br />12 unless applicable law provides otherwise). The notice shan
<br />specify: (a) the default: (b) the action required to cure the
<br />default; (c) a date, not Ie" than 30 days from the dale the
<br />notice I' given to Borrower, by which lhe derault must be cured:
<br />and (dlthat failure to cure tbe default on or berore the date
<br />specified in the notice may rcsult in Deceleration 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 to ossert the
<br />non-existence of a default or any other defense or Borrower to
<br />acceleration nnd 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 taw.
<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 pan of the Property is
<br />located and shall mail copies of such notice in the manner
<br />prescribed by applicable Jaw 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 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 Propeny by public
<br />annolJOcement at the time and place of any previously scheduled
<br />sale. Lender or its designee may purchase the Property at any
<br />sale.
<br />
<br />Upon receipt or 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 ,ale in lbe following order: (a) to all expenses of
<br />Ihe sale. including, bUL not limited to, Trustcc's fees as
<br />permined by applicable: law and reasonable attorneysl fees; (b)
<br />to all sums secured by this Security Instrument; and (c) any
<br />excess to Lhe 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 />appointed receiver) shall be entitled to enter upon, take
<br />posscssion 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 ,ball be applied (irst 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 tbe
<br />sums secured by this instrument.
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<br />. HUD-92143DT.'
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