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. ' �`�r � . ���104913
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<br /> .. . Loan No. 25433
<br /> ' •judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or
<br /> Lende�'s security interest. Borrpwer may cure such a default and reinstate, as provided in paragraph 18, by causing the action or
<br />' proceeding to be dismissed with a ruling that,in J,ende�'s good faith determination,precludes forfeiture of the Borrower's interest
<br /> in the Property or other material impairment of the lien created by this Security Instrument or Lende�'s security interest.Borrower
<br /> shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or
<br /> statements to Lender(or failed to provide Lender with any material information) in connection with the loan evidenced by the
<br /> Note,including,but not limited to, representation concerning Borrowe�'s occupancy of the Property as principal residence.If this
<br /> Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to
<br /> the Property,the leasehold and the fee tide shall not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lendea's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in
<br /> this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property(such as a
<br /> proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),then Lender may do and pay
<br /> for whatever is necessary to protect the value of the Property and Lender's rights in the Property.Lende�'s action may include paying
<br /> any sums secured by a lien which has priority over this Security Instrument,appearing in court,paying reasonable attorneys'fees and
<br /> entering on the Property to make repairs.Although Lender may take action under this paragraph 7.Lender does not have to do so.
<br /> I Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
<br /> disbursement at the Note rate and shall be payable,with interest,upon notice from Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument,Borrower shall pay the premiums required to maintain the mortgage insurance in effect.If,for any reason,the mortgage
<br /> insurance coverage required by Lender lapses or ceases to be in effect,Borrower shall pay the premiums required to obtain coverage
<br /> substantially equivalent to the mortgage insurance previously in effect,at a cost substantially equivalent to the cost to Bonower
<br /> of the mortgage insurance previously in effect,from an alternate mortgage insurer approved by Lender. If substantially equivalent
<br /> mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly
<br /> mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will
<br /> accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be
<br /> required, at the option of Lender, if mortgage insurance coverage(in the amount and for the period that Lender requires)
<br /> provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required
<br /> to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in
<br /> accordance with any written agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give
<br /> Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10.Condemnation.The proceeds of any award or claim for damages,direct or consequential,in connection with any condem-
<br /> nation or other taking of any part of the Property,or for conveyance in lieu of condemnation,are hereby assigned and shall be paid
<br /> to Lender.
<br /> In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument,
<br /> whether or not then due,with any excess paid to Bonower.In the event of a partial taking of the Property in which the fair market
<br /> value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immediately before the taking,unless Borrower and Lender otherwise agree in writing,the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums
<br /> secured immediately before the taking,divided by(b)the fair market value of the Property immediately before the taking.Any
<br /> balance shall be paid to Borrower.In the event of a partial taking of the Property in which the fair market value of the Property
<br /> immediately before the taking is less than the amount of the sutns secured immediately before the taking,unless Bonower and
<br /> Lender otherwise agree in writing or unless applicable law otherwise provides,the proceeds shall be applied to the sums secured
<br /> by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Bonower that the condemnor offers to make an
<br /> award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the norice is given, Lender
<br /> is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured
<br /> by this Security Instrument,whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing,any application of proceeds to principal shall not extend or postpone
<br /> the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification
<br /> of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall
<br /> not operate to release the liability of the original Borrower and Bonower's successors in interest. Lender shall not be required
<br /> to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization
<br /> of the sums secured by this Security Instnunent by reason of any demand made by the original Borrower or Borrower's successors
<br /> in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any
<br /> right or remedy.
<br /> 12. Succ�sors and Ass�s Bound;Joint and Several Liability;Co-signets. The covenants and agreements of this Security
<br /> Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17.
<br /> Borrower's covenants and agreements shall be joint and several. Any Bonower who co-signs this Security Insmtment but dces not
<br /> execute the Note, (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the
<br /> Property under the terms of this Security Instrument; (b)is not personally obligated to pay the sums secured by this Security
<br /> Instrument;and(c)agrees that Lender and any other Borrower may agree to extend,modify,forbear;or make any accommodz�ons
<br /> with regard to the terms of this Security Instrument or the Note without that Borrower's consent
<br /> 13. Loan Charges.If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges,and
<br /> that law is finaily interpreted so that the interest or other loan charges collected or to be collected in connection with the loan ex-
<br /> ceed the pernutted limits, then (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit;and(b)any sums already collected from the Borrower which exceeded permitted limits will be refunded to Borrower.
<br /> Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower.
<br /> If a refund reduces principal,the reduction will be treated as a partial prepayment without any prepayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it
<br /> by first class mail unless applicable law requires use of another method.The notice shall be directed to the Property Address or any
<br /> other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's Address
<br /> stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Insmiment
<br /> shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph.
<br /> Form 3028 9/90
<br /> p� PAGE 3 of 5 HP-82e 2/93
<br /> Printed on Laser by�YI.pA(UIV1�7�G',Busna Park,CA 80821 Ph:(714)994-2121
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