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<br />88- 107053
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<br />event of 1055 Borruwe" will give irnme'.:ate notice by mail to the
<br />Lender, who may !!',," ~,.Aafloss if not made promptly by
<br />Borrower. Bod each .;,,"~.nlll1ce company concerned is hereby
<br />authorized and directed to make paymenl for such loss directly to
<br />Ihe Lender inslead of to the Borrower and the Lender jointly, and
<br />the insurance proceeds, or any part Ihereof, may be applied by lhe
<br />Lender at its option either 10 the reduclion of the indebtedness
<br />hereby secured or to the restoration or repair of the propeiiy
<br />damaged. In event of foreclosure of this instrument or other transfer
<br />of title to the mortgaged property in extinguishment of lhe
<br />indebtedness secured hereby, all righi, title and inlercsl of the
<br />Borrower in and to Bny insurance policies then in force shall pass to
<br />the purchaser or grantee.
<br />
<br />9. That as additional and collateral security for the payment of the
<br />note described, 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 to the Borrower under any and
<br />all oil and gas leases on said premises., wilh the right to receive and
<br />receipt for Ihe same and apply Ihem 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 release of this
<br />instrument.
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<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 unlawfuJ purpose.
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<br />I L That if the premises, or any part 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 Ihe
<br />consideration for such acquisition, 10 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 forthwith to said Lender to be applied by
<br />the latter on account of the next maturing installments of such
<br />indebtedness.
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<br />12. The Borrower further agrees lhat should this instrument and
<br />the nole secured hereby nol be eligible for insurance under the
<br />Nalional Housing ACI wilhin eighl months from the date hereof
<br />(written statemenl of any officer of the Department of Housing and
<br />Urban Developmenl or aUlhorized agent of the Secretary of Housing
<br />and Urban Developmenl daled subsequent to the eigbt months' time
<br />from the date of this instrument, declining to insure said note and
<br />this mortgage, being deemed eonclusive proof of such ineligibility),
<br />the Lender or holder of the nole may, al ilS oplion, declare all sums
<br />secured hereby immedialely due and payahle. Notwithstanding lhe
<br />foregoing, this option may not be exercised by the Lender or the
<br />holder of tbe note when the ineligibility for insurance under the
<br />National 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 with
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<br />any uf the condhions or agreements contained in this instrument. or
<br />the nole which it secures, then the entire principal sum end accrued
<br />interest shBllm once become due llnd payable. at the election of the
<br />Lender.
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<br />Lender shall give nolice to Borrower prior to acceleration
<br />following Borrower's breach of any covenant or agreement in this
<br />instrument (but nol prior 10 acceleration under paragraph 12 unless
<br />applicable low provides otherwise). The notice shall specify: (a) the
<br />default: (b) the action required to cure the default; (c) a dale, nOlless
<br />than 30 days from the date the notice is given to Borrower, by which
<br />the default must be cured: and (d) that failure 10 cure the default on
<br />or before the date specified in the notice may result in acceleration
<br />of (he sums secured by this instrument and sale of the Property. The
<br />notice shaH further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a coun aclion 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 Ihe 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 applicnblc law. Lender shall be entitled to
<br />colleCI 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.
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<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 located
<br />and shall mail copies of such notice in the manner prest:ribed by
<br />applicable law to Borrower and to the other persons prescribed by
<br />applicable law. After Ihe lime required by applicable law, Truslee
<br />shan 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 higbest bidder at the
<br />time and place and under the terms designated in the nOlice of sale
<br />in one or more parcels and in any order Trustee determines. Trustee
<br />may paslpone sale of all or any parcel of Ihe Property by public
<br />announcement allhe 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 sball deliver 10
<br />Ihe purchaser Trustee's deed conveying Ihe Property. The recitals in
<br />Ihe Trustee's deed shall be prima facie evidence of the lrulh of Ihe
<br />stalements made therein. Truslee shall apply the proceeds of Ihe sale
<br />in the following order: (a) 10 all expenses of tbe sale, including, bUI
<br />not limited to, Trustee's fees as permitted by applicable Jaw and
<br />reasonable attorneys' fees; (b) 10 all sums secured by this Security
<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 10 enler upon, take possession of and
<br />manage the Property and to colleellhe renlS of the Property
<br />including those past due. Any rents collected by lender or the
<br />receiver shall be applied first to payment of the costs of management
<br />of the Property and collection of rents, including, but not limited 10,
<br />receiver's fees, premiums on receiver's bonds and reasonable
<br />attorney's fees, and then 10 the sums secured by this instrument
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<br />,p,.qe fl'Pf! t.;
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<br />HUD-92143DT-l
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