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NON-UNIFORM COVENANTS. Borrower further COVENANTS AND AGREES as follows:
<br /> 27. Default;death;incompetence;bankruptcy. Should default occur in the performance or discharge of any obligation in this
<br /> instrument or secured by this instrument,or should the Burrower die or be declared incompetent,or should the Borrower he discharged in bankruptcy
<br /> or declared an insolvent or make an assignment for the benefit of creditors,the Government,at its option,with or without notice,may: (a)declare
<br /> the entire amount unpaid under the note and any debt to the Government hereby secured immediately due and payable, (b)for the account of
<br /> Borrower incur and pay reasonable expenses for repair or maintenance of,and take possession of,operate or rent the property, (c)upon application
<br /> by it and production of this instrument;without other evidence and without notice of hearing of said application,have a receiver appointed for the
<br /> property,with the usual powers of receivers in like cases, (d)authorize and request Trustee to foreclose this instrument and sell the property as
<br /> prescribed by law,and (e)enforce any and all other rights and remedies provided herein or by preset or future law.
<br /> 28. Foreclosure. At the request of the Government,Trustee may foreclose this instrument by advertisement and sale of the property as
<br /> provided by law,for cash or secured credit at the option of the Govemment,personal notice of which sale need not be served on Borrower;such sale
<br /> may be adjourned from time to time without other notice than oral proclamation at the time and place appointed for such sale;and at such sale the
<br /> Government and its agents may bid and purchase as a stranger;Trustee at Trustee's option may conduct such sale without being personally present
<br /> through Trustee's delegate authorized by Trustee for such purpose orally or in writing,and Trustee's execution of a conveyance of the property or
<br /> any part thereof to any purchaser at foreclosure sale shall be conclusive evidence that the sale was conducted by Trustee personally or through
<br /> Trustee's delegate duly authorized in accordance herewith.
<br /> 29. State law. Borrower agrees that the Government will not be bound by any present or future State laws,(a)providing for valuation,
<br /> appraisal,homestead or exemption of the property,(b)prohibiting maintenance of any action for a deficiency judgment or limiting the amount
<br /> thereof or the time within which such action must be brought,(c)prescribing any other statute of limitations,(d)allowing any right of redemption or
<br /> possession following any foreclosure sale,or(e)limiting the conditions which the Government may by regulation impose,including the interest it
<br /> may charge,as a condition of approving a transfer of the property to a new Borrower. Borrower expressly waives the benefit of any such State laws.
<br /> 30. Assignment of leases and rents. Borrower agrees that the assignment of leases and rents in this instrument is immediately effective
<br /> on the recording of this instrument. Upon default,the Borrower will receive any rents in trust for the Government,and Borrower will not commingle
<br /> the rents with any other funds. Any amounts collected shall be applied at the Government's discretion first to costs of managing,protecting and
<br /> preserving the property,and to any other necessary related expenses. Any remaining amounts shall be applied to reduce the debt evidenced by the
<br /> note(s). Borrower agrees that the Government may demand that Borrower and Borrower's tenants pay all rents due or to become due directly to the
<br /> Government if the Borrower defaults and the Government notifies Borrower of the default. Upon such notice,Borrower will endorse and deliver to
<br /> the Government any payments of rents. If the Borrower becomes subject to a bankruptcy,then Borrower agrees that the Government is entitled to
<br /> receive relief from the automatic stay in bankruptcy for the purpose of enforcing this assignment.
<br /> 31. Application of foreclosure proceeds. The proceeds of foreclosure sale shall be applied in the following order to the payment of:(a)
<br /> costs and expenses incident to enforcing or complying with this instrument,(b)any prior liens required by law or a competent court to be so paid,(c)
<br /> the debt evidenced by the note and all other debt to the Government secured by this instrument,(d)inferior liens of record required by law or a
<br /> competent court to be so paid,(e)at the Govcrmmenes option,any other debt of Borrower to the Government and(f)any balance to Borrower. If the
<br /> Government is the successful bidder at foreclosure or other sale of all or any part of the property,the Government may pay its share of the purchase
<br /> price by crediting such amount on any debts of Borrower owing to the Government,in the order prescribed above.
<br /> 32. Grazing Permits. Borrower hereby assigns or waives in favor of the Government all grazing privileges,permits,licenses or leases
<br /> appurtenant to or used in connection with said land,now held or acquired during the term of this instrument,and Borrower further covenants and
<br /> agrees to execute any and all forms and documents necessary to effect said assignment or waiver and to take any other actions necessary,including
<br /> the payment of fees and charges,to keep said privileges,permits,licenses or leases current,and in the event of the failure of Borrower to do any of
<br /> these things,the Government may do so on behalf of Borrower,and may advance such sums as may be necessary for this purpose,with such
<br /> advances being secured by this instrument.
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