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<br />Lender. In c\'cnl of loss Borrower will give immediate notice b)'
<br />,"ailla the Lender. who may make proof of '055 if nOl made
<br />promplly by Borrower, Bod each in~:.:,,~ ""C' o:;ompnny cC.lcerneu
<br />is hereby authorized and directed to ." j~;: p..;;ymcnt for such loss
<br />directly to the Lender instead of to ll.., ~~olrower nnd the
<br />Lender jointly, Dnd the insurance proceeds. or any part thereof,
<br />may be Ilppll~ by the Lender at its option either 10 the
<br />reduction of the indebtednc!iS hereby secured or to the
<br />restoration or repair of the property damaged. In event of
<br />foreclosure of Ihis instrument or othcr transfer of tjtle to the
<br />mortgaged property in c"tinguishmenl of the indebtedness
<br />secured hereby, nil right. title and interest of the Borrower in
<br />and to any insurance policies Ihen in force shall pass to the
<br />pUJchllSer or grantee.
<br />9. Thai as additional and collaleral security for the payment
<br />of the note described, and all sums 10 become due under this
<br />instrument, the Borrower hereby assigns to the Lender all
<br />profits, revenues, royalties, righls and benelits accruing 10 Ihe
<br />Borrower under any and all oil and gU!i le<1scs on said premises,
<br />with the right to receive and receipt for Ihe same Ilnd apply
<br />them to said indebtedness as well before as a~ler default 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 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 />J I. That if the premises, or any part 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, are hereby assigned
<br />by the Borrower to the lender, and shall be paid forthwith to
<br />said Lender ro be applied by the lauer on account of the next
<br />maturing installments of such indebtedness.
<br />12. The Borrower further agrees that should this instrument
<br />and the note secured hereby not be eligible fOf insurance under
<br />the National Housing Act within eight months from the date
<br />hereof (wrinen 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' rime 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. 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 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 note which it secures, then the entire
<br />principal sum and accrued interest shall at once become due and
<br />payable, al the election of the Lender.
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<br />107088
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<br />88-
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<br />lender !ihnll 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 puragroph
<br />12 unless applicable law provides otherwise). The notice sholl
<br />specify; (a) Ihe default; (b) the action required to cure the
<br />defaull; (e) a date, not less than 30 days from the: dme the
<br />notice is given fo Borrower, by which the: default must be cured;
<br />and (d) that failure to cure the defoult on or before the dale
<br />specified in tho.. notice may result in acceleration of the sums
<br />secured ~y 1his instrument and sale of the Property. The notice
<br />sbull further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action to assert the
<br />non-existence of a default 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 ils option may require
<br />immediate payment in full of at! sums secured by this
<br />instrumen1 without further demand and may invoke the power
<br />of sale and any other remedies permitted by applicable law.
<br />Lender shall be cntilled 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 />located and shall mail copies of such notice in the manner
<br />prescribed by applicable law to Borrower and ro the other
<br />persons prescribed by applicable law. After the time required by
<br />applicable law, Trustee shall give public notice of sale 10 the
<br />persons and in the manner prescribed by applicable law.
<br />Trustee, without demand on Borrower, shall sell the Property at
<br />public auclion 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 llny
<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 order: (a) 10 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 to it.
<br />
<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 />possession of and manage the Property and to collecl 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 />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 rCllSonable attorneys' fees, and then to the
<br />sums secured by this instrument.
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