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200311975 Loan No. 0107310306
<br />judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or
<br />Lender's security interest. Borrower 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 Lender'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 Lender'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 Borrower'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 title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender'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.Lender'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 71ender does not have to do so.
<br />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 Borrower
<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 Borrower. 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 sums secured immediately before the taking, unless Borrower 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 Borrower 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 notice 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 Borrower'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 Instrument 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. Successors and Assigns Bound; Joint and Several Liability; Co-signers. 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 Borrower who co -signs this Security Instrument but does 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 accommodations
<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 finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan ex-
<br />ceed the permitted 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 Instrument
<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 />PAGE 3 of S HP- 828 2/93
<br />Printed on Laser byT�W, LGAANIM * , Buena Park, CA 90621 Ph:(714) 994 -2121
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