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18. Transfer of
the Property or a Beneficial Interest in Borrower.
As used in this
Section 18, "Interest in the Property" means any legal or beneficial
interest in the Property, including, but not limited to, those beneficial
interests transferred in a bond for deed, contract for deed, installment
sales contract or escrow agreement, the intent of which is the transfer of
title by Borrower at a future date to a purchaser.
If all or any part
of the Property or any Interest in the Property is sold or transferred (or
if Borrower is not a natural person and a beneficial interest in Borrower is
sold or transferred) without Lender's prior written consent, Lender may
require immediate payment in full of all sums secured by this Security
Instrument. However, this option shall not be exercised by Lender if such
exercise is prohibited by Applicable Law.
If Lender
exercises this option, Lender shall give Borrower notice of acceleration.
The notice shall provide a period of not less than 30 days from the date the
notice is given in accordance with Section 15 within which Borrower must pay
all sums secured by this Security Instrument. If Borrower fails to pay these
sums prior to the expiration of this period, Lender may invoke any remedies
permitted by this Security Instrument without further notice or demand on
Borrower.
1.
Borrower's Right to Reinstate After Acceleration.
If Borrower meets certain conditions, Borrower shall have the right to have
enforcement of this Security Instrument discontinued at any time prior to
the earliest of: (a) five days before sale of the Property pursuant to
any power of sale contained in this Security Instrument; (b) such other
period as Applicable Law might specify for the termination of Borrower's
right to reinstate; or (c) entry of a judgment enforcing this Security
Instrument. Those conditions are that Borrower: (a) pays Lender all sums
which then would be due under this Security Instrument and the Note as if no
acceleration had occurred; (b) cures any default of any other covenants or
agreements; (c) pays all expenses incurred in enforcing this Security
Instrument, including, but not limited to, reasonable attorneys' fees,
property inspection and valuation fees, and other fees incurred for the
purpose of protecting Lender's interest in the Property and rights under
this Security Instrument; and (d) takes such action as Lender may reasonably
require to assure that Lender's interest in the Property and rights under
this Security Instrument, and Borrower's obligation to pay the sums secured
by this Security Instrument, shall continue unchanged. Lender may require
that Borrower pay such reinstatement sums and expenses in one or more of the
following forms, as selected by Lender: (a) cash; (b) money order; (c)
certified check, bank check, treasurer's check or cashier's check, provided
any such check is drawn upon an institution whose deposits are insured by a
federal agency, instrumentality or entity; or (d) Electronic Funds Transfer.
Upon reinstatement by Borrower, this Security Instrument and obligations
secured hereby shall remain fully effective as if no acceleration had
occurred. However, this right to reinstate shall not apply in the case of
acceleration under Section 18.
2.
Sale of Note; Change of Loan Servicer; Notice of Grievance.
The Note or a partial interest in the Note (together with this Security
Instrument) can be sold one or more times without prior notice to Borrower.
A sale might result in a change in the entity (known as the "Loan Servicer")
that collects Periodic Payments due under the Note and this Security
Instrument and performs other mortgage loan servicing obligations under the
Note, this Security Instrument, and Applicable Law. There also might
be one or more changes of the Loan Servicer unrelated to a sale of the Note.
If there is a change of the Loan Servicer, Borrower will be given written
notice of the change which will state the name and address of the new Loan
Servicer, the address to which payments should be made and any other
information RESPA requires in connection with a notice of transfer of
servicing. If the Note is sold and thereafter
the Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the
mortgage loan servicing obligations to Borrower will remain with the Loan
Servicer or be transferred to a successor Loan Servicer and are not assumed
by the Note purchaser unless otherwise provided by the Note purchaser.
Neither Borrower
nor Lender may commence, join, or be joined to any judicial action (as
either an individual litigant or the member of a class) that arises from the
other party's actions pursuant to this Security Instrument or that alleges
that the other party has breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has
notified the other party (with such notice given incompliance with the
requirements of Section 15) of such alleged breach and afforded the other
party hereto a reasonable period after the giving of such notice to take
corrective action. If Applicable Law provides a time period which must
elapse before certain action can be taken, that time period will be deemed
to be reasonable for purposes of this paragraph. The notice of acceleration
and opportunity to cure given to Borrower pursuant to Section 22 and the
notice of acceleration given to Borrower pursuant to Section 18 shall be
deemed to satisfy the notice and opportunity to take corrective action
provisions of this Section 20.
21. Hazardous
Substances.
As used in this
Section 21: (a) "Hazardous Substances" are those substances defined as toxic
or hazardous substances, pollutants, or wastes by Environmental Law and the
following substances: gasoline, kerosene, other flammable or toxic petroleum
products, toxic pesticides and herbicides, volatile solvents, materials
containing asbestos or formaldehyde, and radioactive materials; (b)
"Environmental Law" means federal laws and laws of the jurisdiction where
the Property is located that relate to health, safety or environmental
protection;
(c) "Environmental
Cleanup" includes any response action, remedial action, or removal action,
as defined in Environmental Law; and (d) an "Environmental Condition" means
a condition that can cause, contribute to, or otherwise trigger an
Environmental Cleanup.
Borrower shall not
cause or permit the presence, use, disposal, storage, or release of any
Hazardous Substances, or threaten to release any Hazardous Substances, on or
in the Property. Borrower shall not do, nor allow anyone else to do,
anything affecting the Property (a) that is in violation of any
Environmental Law, (b) which creates an Environmental Condition, or (c)
which, due to the presence, use, or release of a Hazardous Substance,
creates a condition that adversely affects the value of the Property. The
preceding two sentences shall not apply to the presence, use, or storage on
the Property of small quantities of Hazardous Substances that are generally
recognized to be appropriate to normal residential uses and to maintenance
of the Property (including, but not limited to, hazardous substances in
consumer products).
Borrower shall
promptly give Lender written notice of (a) any investigation, claim, demand,
lawsuit or other action by any governmental or regulatory agency or private
party involving the Property and any Hazardous Substance or Environmental
Law of which Borrower has actual knowledge, (b) any Environmental Condition,
including but not limited to, any spilling, leaking, discharge, release or
threat of release of any Hazardous Substance, and (c) any condition caused
by the presence, use or release of a Hazardous Substance which adversely
affects the value of the Property. If Borrower learns, or is notified by any
governmental or regulatory authority, or any private party, that any removal
or other remediation of any Hazardous Substance affecting the Property is
necessary, Borrower shall promptly take all necessary remedial actions in
accordance with Environmental Law. Nothing herein shall create any
obligation on Lender for an Environmental Cleanup.
NON-UNIFORM COVENANTS.
Borrower and
Lender further covenant and agree as follows:
22.
Acceleration; Remedies. Lender shall give notice to Borrower prior to
acceleration following Borrower's breach of any covenant or agreement in
this Security Instrument (but not prior to acceleration under Section 18
unless Applicable Law provides otherwise). The notice shall specify: (a) the
default; (b) the action required to cure the default; (c) a date, not less
than 30 days from the date the notice is given to Borrower, by which the
default must be cured; and (d) that failure to cure the default on or before
the date specified in the notice may result in acceleration of the sums
secured by this Security Instrument and sale of the Property. The notice
shall further inform Borrower of the right to reinstate after acceleration
and the right to bring a court action to assert the non-existence of a
default or any other defense of Borrower to acceleration and sale. If the
default is not cured on or before the date specified in the notice, Lender
at its option may require immediate payment in full of all sums secured by
this Security Instrument without further demand and may invoke the power of
sale and any other remedies permitted by Applicable Law. Lender shall be
entitled to collect all expenses incurred in pursuing the remedies provided
in this Section 22, including, but not limited to, reasonable attorneys'
fees and costs of title evidence.
If Lender
invokes the power of sale, Lender shall execute or cause Trustee to execute
a written notice of the occurrence of an event of default and of Lender's
election to cause the Property to be sold. Trustee shall cause this
notice to be recorded in each county in which any part of the Property is
located. Lender or Trustee shall mail copies of the notice as prescribed by
Applicable Law to Borrower and to the other persons prescribed by Applicable
Law. Trustee shall give public notice of sale to the persons and in the
manner prescribed by Applicable Law. After the time required by Applicable
Law, Trustee, without demand on Borrower, shall sell the Property at public
auction to the highest bidder at the time and place and under the terms
designated in the notice of sale in one or more parcels and in any order
Trustee determines. Trustee may postpone sale of all or any parcel of the
Property by public announcement at the time and place of any previously
scheduled sale. Lender or its designee may purchase the Property at any
sale. Trustee shall deliver to the purchaser Trustee's deed conveying the
Property without any covenant or warranty, expressed or implied. The
recitals in the Trustee's deed shall be prima facie evidence of the truth of
the statements made therein. Trustee shall apply the proceeds of the sale in
the following order: (a) to all expenses of the sale, including, but not
limited to, reasonable Trustee's and attorneys' fees; (b) to all sums
secured by this Security Instrument; and (c) any excess to the person or
persons legally entitled to it.
1.
Reconveyance.
Upon payment of all sums secured by this Security Instrument, Lender shall
request Trustee to reconvey the Property and shall surrender this Security
Instrument and all notes evidencing debt secured by this Security Instrument
to Trustee. Trustee shall reconvey the Property without warranty to the
person or persons legally entitled to it. Lender may charge such person or
persons a reasonable fee for reconveying the Property, but only if the fee
is paid to a third party (such as the Trustee) for services rendered and the
charging of the fee is permitted under Applicable Law. If the fee charged
does not exceed the fee set by Applicable Law, the fee is conclusively
presumed to be reasonable.
2.
Substitute Trustee.
Lender, at its option, may from time to time appoint a successor trustee to
any Trustee appointed hereunder by an instrument executed and acknowledged
by Lender and recorded in the office of the Recorder of the county in which
the Property is located. The instrument shall contain the name of the
original Lender, Trustee and Borrower, the book and page where this Security
Instrument is recorded and the name and address of the successor trustee.
Without conveyance of the Property, the successor trustee shall succeed to
all the title, powers and duties conferred upon the Trustee herein and by
Applicable Law. This procedure for substitution of trustee shall govern to
the exclusion of all other provisions for substitution.
3.
Statement of Obligation Fee.
Lender may collect a fee not to exceed the maximum amount permitted by
Applicable Law for furnishing the statement of obligation as provided by
Section 2943 of the Civil Code of California.
BY SIGNING BELOW,
Borrower accepts and agrees to the terms and covenants contained in this
Security Instrument and in any Rider executed by Borrower and recorded with
it.
The undersigned
Borrower requests that a copy of any Notice of Default and any Notice of
Sale under this Security Instrument be mailed to Borrower at the address set
forth above.
(Seal)
BEN DESPERADO-Borrower
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