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HomeMy WebLinkAboutC-7267-15 - Beacon Bay, 29 - Deed of Trust 1999N( dLB, P IS'i LDF t G?' .L9 /I . This document was electronically recorded by Fide ' Major Accounts Recorded in the County of Orange, California Ga L Granville, Clerk/Recorder II III 111111111111111111111111111111111 57.00 20000005804 1:32PM 01/05/00 004 0 007 01 102 28 007 1 0 0. 0 6.00 51.00 0.00 0.00 0.00 0.00 0 00 [Space Above This Line For Recording Data] DEED OF TRUST THIS DEED OF TRUST ("Security Instrument") is made on Decenher 1_6. 1999 The trustor is MATTRFF.N H_ pTF:RC'$, A MARRTFT) WnMAN A4 HFR gnT F ANI) SFPARATF ("Borrower"). The trustee is AT,TFo NTA oNV .Y NC . COMPANY ("Trustee") whose address is the same as the address of the Beneficiary. The beneficiary is: Washinaton Mutual Bank, FA , which is organized and existing under the laws of USA and whose address is 400 East Main Street s .o .k _on, CA 95290 ("Lender"). Borrower owes Lender the principal sum of $ Thrp-,- Hund -r Thirty Thousand & 00/100 Dollars (U.S. $33o. 000. 00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on January 9.010 . This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in orange County, California forni a A L0As`zik0L,0 �zs:p�r� t�cszt��s( 1r1 fa,Ja i� C1K� Fo�ww�.��> LOT 29 AS SHOWN ON RECORD OF SURVEY MAP FILED IN BOOK 9, PAGES 42 AND 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY, CALIFORNIA, TOGETHER WITH CERTAIN PORTIONS OF ADJOINING LOT E AND F AS SHOWN UPON SAID MAP. which has the address of 29 BEACON BAY [Street] NEWPORT BEACH California 92660 ("Property Address"); [City] 32838 (02-99) [Zip Code] Page 1 of 8 Loan No. 03-0664-003507696-7 FIDELITY NATIONAL TITLE COMPANY 7 I AFTER RECORDING, MAIL TO: Washington Mutual Bank, FA C/O DATA PLEX 12691 PALA DRIVE - MS156DPCA GARDEN GROVE, CA 92641 ® Washington Mutual This document was electronically recorded by Fide ' Major Accounts Recorded in the County of Orange, California Ga L Granville, Clerk/Recorder II III 111111111111111111111111111111111 57.00 20000005804 1:32PM 01/05/00 004 0 007 01 102 28 007 1 0 0. 0 6.00 51.00 0.00 0.00 0.00 0.00 0 00 [Space Above This Line For Recording Data] DEED OF TRUST THIS DEED OF TRUST ("Security Instrument") is made on Decenher 1_6. 1999 The trustor is MATTRFF.N H_ pTF:RC'$, A MARRTFT) WnMAN A4 HFR gnT F ANI) SFPARATF ("Borrower"). The trustee is AT,TFo NTA oNV .Y NC . COMPANY ("Trustee") whose address is the same as the address of the Beneficiary. The beneficiary is: Washinaton Mutual Bank, FA , which is organized and existing under the laws of USA and whose address is 400 East Main Street s .o .k _on, CA 95290 ("Lender"). Borrower owes Lender the principal sum of $ Thrp-,- Hund -r Thirty Thousand & 00/100 Dollars (U.S. $33o. 000. 00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on January 9.010 . This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in orange County, California forni a A L0As`zik0L,0 �zs:p�r� t�cszt��s( 1r1 fa,Ja i� C1K� Fo�ww�.��> LOT 29 AS SHOWN ON RECORD OF SURVEY MAP FILED IN BOOK 9, PAGES 42 AND 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY, CALIFORNIA, TOGETHER WITH CERTAIN PORTIONS OF ADJOINING LOT E AND F AS SHOWN UPON SAID MAP. which has the address of 29 BEACON BAY [Street] NEWPORT BEACH California 92660 ("Property Address"); [City] 32838 (02-99) [Zip Code] Page 1 of 8 03-0664-003507696-7 70151 -KR TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereinafter a part of the property, any replacements and additions thereto as well as all claims, demands or causes of action of any kind arising out of or relating to the property or any interest therein, including without limit, proceeds of any insurance relating to such security property whether or not such insurance is required by Lender hereunder, and whether or not Lender is named as an additional insured thereunder, and settlement of any such claim, demand or cause of action of any kind, which Borrower now has or may hereafter acquire, arising out of or in any way relating to acquisition or ownership of the Property or any interest therein, subject however to the right, power and authority given to and conferred upon Lender by Paragraph 7 below. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, and notwithstanding anything to the contrary in the Note, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraphs 2 and 7; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these Page 2 of 8 32838 (02-99) 03-0664-003507696-7 70151 -KR payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including but not limited to earthquake or earth movement, floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. All insurance policies and renewals, whether or not such insurance is required by Lender, shall be acceptable to Lender at its discretion and shall include a standard mortgage clause and shall have a loss payable endorsement in favor of Lender. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, all insurance proceeds from insurance policies relating to the Property or any interest of Borrower in the Property whether or not such policy is required by Lender shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30 -day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall (a) keep the Property in good condition and repair, (b) not remove, demolish or substantially alter any building, structure or improvement thereon, (c) complete or restore promptly and in good workmanlike manner any part of the Property which may be constructed, damaged or destroyed thereon and pay when due all claims for labor performed and material furnished therefore, (d) comply with and not commit or suffer any act upon the Property which may violate the provisions of any insurance policies, laws, regulations or ordinances covering or affecting the Property or which require any alterations, repairs or improvements thereon, (e) not commit or suffer any waste thereon, and (f) consistent with the use thereof, do all other acts which the character or use of the property may reasonably require. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and Page 3 of 8 32838 (02-99) 03-0664-003507696-7 70151 -KR agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs and making such repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. Borrower shall (a) appear in and defend any action or proceeding purporting to affect the security hereof, the Property or the rights or powers of Lender or Trustee; (b) at Lender's option, assign to Lender, to the extent of Lender's interest, any claims, demands, or causes of action of any kind, and any award, court judgement, or proceeds of settlement of any such claim, demand or cause of action of any kind which Borrower now has or may hereafter acquire arising out of or relating to any interest in the acquisition or ownership of the Property. Lender and Trustee shall not have any duty to prosecute any such claim, demand or cause of action. Without limiting the foregoing, any such claim, demand or cause of action arising out of or relating to any interest in the acquisition or ownership of the Property may include (i) any such injury or damage to the Property including without limit injury or damage to any structure or improvement situated thereon, (ii) or any claim or cause of action in favor of Borrower which arises out of the transaction financed in whole or in part by the making of the loan secured hereby, (iii) any claim or cause of action in favor or Borrower (except for bodily injury) which arises as a result of any negligent or improper construction, installation or repair of the Property including without limit, any surface or subsurface thereof, or of any building or structure thereon or (iv) any proceeds of insurance, whether or not required by Lender, payable as a result of any damage to or otherwise relating to the Property or any interest therein. Lender may apply, use or release such monies so received by it in the same manner as provided in Paragraph 5 for the proceeds of insurance. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one -twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, 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 value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any 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 immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, Page 4 of 8 32838 (02-99) 03-0664-003507696-7 70151 -KR whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. 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 delivered or mailed 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. 18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) 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; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no Page 5 of 8 32838 (02-99) 03-0664-003507696-7 70151 -KR acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may 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 in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. 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. Borrower shall promptly give Lender written notice of 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. If Borrower learns, or is notified by any governmental or regulatory authority, 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. As used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances 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. As used in this paragraph 20, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 21. 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 paragraph 17 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 10 days from the date the notice is given to Borrower (or, if the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation buys all or part of Lender's rights under the Security Instrument, in which case the notice will specify a date, not less than 30 days from the date the notice is given the 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 paragraph 21, 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. 22. Reconveyance. Upon payment of all sums secured by this Security Instrument, and a fee for services involved in the preparation, execution, and forwarding for recordation of the full reconveyance, 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 Property without warranty. In addition, such person or persons shall pay any recordation or other official fees or Page 6 of 8 32838 (02-99) 03-0664-003507696-7 70151 -KR costs. 23. 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 or Document Number 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. 24. Request for Notices. Borrower requests that copies of the notices of default and sale be sent to Borrower's address which is the Property Address. Trustor requests that a copy of any notice of default and of any notice of sale hereunder be mailed to Trustor at the address herein above set forth. 25. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Miscellaneous Provisions. In the event the Lender at any time discovers that the Note or this Security Instrument or any other document related to this loan, called collectively the "Loan Documents," contains an error which was caused by a clerical or ministerial mistake, calculation error, computer error, printing error or similar error (collectively "Errors"), Borrower agrees, upon notice from the Lender, to reexecute any Loan Documents that are necessary to correct any such Errors and Borrower also agrees that Borrower will not hold the Lender responsible for any damage to Borrower which may result from any such Errors. If any of the Loan Documents are lost, stolen, mutilated or destroyed and the Lender delivers to Borrower an indemnification in Borrower's favor, signed by the Lender, then Borrower will sign the deliver to the Lender a Loan Document identical in form and content which will have the effect of the original for all purposes. 27. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] ❑X Adjustable Rate Rider ❑ Condominium Rider ❑ 1-4 Family Rider Graduated Payment Rider F-1 Planned Unit Development Rider Biweekly Payment Rider Rate Improvement Rider Second Home Rider �Ir. 69 Ahold Rider )A'w,a ftq YNtr ,�y Vi�.SiJC?J sJYRq�?l7 r�w,�bi •�.<!;�1 lW, orrower accepts and agrees to the terms and covenants contained in this Security I,, ri"stuiiie?it"3ftd fti ider(s) executed by Borrower and recorded with it. MAUREEN H. PIERCE Page 7 of 8 32838 (02-99) State of California County of Orange On December 20, 1999 03-0664-003507696-7 70151 -KR (Space Below This Line For Acknowledgement) ) SS. , before me, the undersigned a Notary Public in and for the State of California personally appeared MAUREEN H. PIERCE personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal p'/'2' -L - Notary Public in and for the State of California ECHIARL:ES&PEYTON .CAUFORN1COUNTYOCT. t 1003 '�► REQUEST FOR RECONVEYANCE TO TRUSTEE: The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all other indebtedness secured by this Deed of Trust, have been paid in full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. DATED: By Mail reconveyance to 32838 (02-99) Page 8 of 8 Government Code 27361.7 I certify under the penalty of perjury that the notary seal on this document read as follows: Name of Notary: Date Commission Expires County where bond is Filed: Commission No.: Manufacturer/Vendor No.: CHARLES R. PEYTON OCTOBER 9, 2003 ORANGE 1234412 MGC1 Place of execution - Newport Beach IQ FIDELIT NATIONAL TITLE COMPANY Date - DECEMBER 22, 1999 GOVERNMENT CODE 27361.7 I CERTIFY UNDER THE PENALTY OF PURJURY THAT THE ILLEGIBLE PORTION OF THIS DOCUMENT, TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: Balloon Rider X Other(s) [specify] Leasehold Rider BY SIGNING BELOW, Borrower Security Instrument and in any rider(s) PLACE OF EXECUTION: NEWPORT BEACH, CALIFORNIA DATE: December 22, 1999 za FIDELITY NA/ IONAL TITLE COMPANY ® Washington Mutual ADJUSTABLE RATE RIDER (12 -MTA Index - Rate Caps) 03-0664-003507696-7 70151 -KR THIS ADJUSTABLE RATE RIDER is made this 16th day of December, 1999 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Washington Mutual Bank, FA (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 29 BEACON BAY, NEWPORT BEACH, CA 92660 Property Address THIS RIDER CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND THE MONTHLY PAYMENT. THE RIDER LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES Interest will be charged on unpaid principal until the full amount of principal has been paid. I will pay interest at a yearly rate of 7.625 %. The interest rate I pay will change in accordance with Section 4 of the Note. The interest rate required by Section 2 and Section 4 of the Note is the rate I will pay both before and after any default described in Section 7(B) of the Note. The Note provides for changes in the interest rate and the monthly payments, as follows: "4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may further change on the 1st day of January, 2005 and on that day every TWELFTH month thereafter. Each date on which my interest rate could change is called a "Change Date". NO NEG Page 1 of 5 33019A (05-98) IS 03-0664-003507696-7 70151 -KR (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the Twelve -Month Average, determined as set forth below, of the monthly yields ("Monthly Yields") on actively traded United States Treasury Securities adjusted to a constant maturity of one year as published by the Federal Reserve Board in the Federal Reserve Statistical Release entitled "Selected Interest Rates (G.13)". The Twelve -Month Average is determined by adding together the Monthly Yields for the most recent twelve months and dividing by 12. The most recent Index figure available as of the date 15 days before each Interest Rate Change Date is called the "Current Index". If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Two & Eight Hundred Seventy -Five -Thousandths percentage points 2.875 % ("Margin") to the Current Index. The Note Holder will then round the result of this addition to the nearest one thousandth of one percentage point (0.001 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. In the event a new Index is selected, pursuant to paragraph 4(B), a new Margin will be determined. The new Margin will be the difference between the average of the old Index for the most recent three year period which ends on the last date the Index was available plus the Margin on the last date the old Index was available and the average of the new Index for the most recent three year period which ends on that date (or if not available for such three year period, for such time as it is available). This difference will be rounded to the nearest 1/8 of 1 %. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes My interest rate will never be increased or decreased on any single Change Date by more than Two percentage point(s) ( 2.000 %) from the NO NEG Page 2 of 5 33019B (05-98) 03-0664-003507696-7 70151 -KR rate of interest I have been paying for the preceding TWELVE months. My interest rate will never be greater than 11.950 % ("Cap"). (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. (G) Failure to Make Adjustments If for any reason Note Holder fails to make an adjustment to the interest rate or payment amount as described in this Note, regardless of any notice requirement, I agree that Note Holder may, upon discovery of such failure, then make the adjustment as if they had been made on time. I also agree not to hold Note Holder responsible for any damages to me which may result from Note Holder's failure to make the adjustment and to let the Note Holder, at its option, apply any excess monies which I may have paid to partial prepayment of unpaid "Principal." B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Covenant 17 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information NO NEG Page 3 of 5 33019C (05-98) � 1" 11 03-0664-003507696-7 70151 -KR required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument or other obligations related to the Note or other loan document is acceptable to Lender, (c) Assuming party executes Assumption Agreement acceptable to Lender at its sole choice and discretion, which Agreement may include an increase to Cap as set forth below and (d) payment of Assumption Fee if requested by Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption, and Lender may increase the maximum interest rate limit to the higher of the Cap or 5 percentage points greater than the interest rate in effect at the time of the transfer. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender has entered into a written assumption agreement with transferee and formally releases Borrower. 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 delivered or mailed 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. NO NEG Page 4 of 5 33019D (05-98) 03-0664-003507696-7 70151 -KR BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. Borrower hereby agrees to execute any document necessary to reform this Agreement to accurately reflect the terms of the Agreement between Borrower and Beneficiary or if the original Note, Trust Deed or other document is lost, mutilated or destroyed. Id A&(� f111% (�• GSC. MAUREEN H. PIERCE NO NEG Page 5 of 5 33019E (05-98) ® Washington Mutual LEASEHOLD LOAN RIDER TO SECURITY INSTRUMENT Loan No.: 03-0664-003507696-7 This Rider is attached to and made a part of that certain Mortgage, Deed of Trust or Deed to Secure Debt and Security Agreement (the "Security Instrument") dated December 16. 1999 ,between MAUREEN H. PIERCE, A MARRIED WOMAN AS HER SOLE AND SEPARATE PROPERTY. ("Borrower") for the benefit of Washington Mutual Bank, FA ("Lender"). 1. The Property covered by the Security Instrument is the following described leasehold interest affecting property located in orange County, California That certain Leasehold Estate ("Leasehold Estate") and all of Borrower's right, title and interest, created by that certain Lease dated , a memorandum of which was recorded under Orange County Recording No. , the Landlord's interest in which is held by BEACON BAY/NEWPORT and the Tenant's interest in which is held by Borrower. The Lease covers all of that certain lot, piece or parcel of land, more particularly described in the Security Instrument to which this Rider is attached. Together With all right, title and interest of Borrower in and to all options to purchase, options of first refusal and renewal, options with respect to said Lease or said property or any portion thereof or any interest therein, and in and to any greater estate in said property (including the fee simple estate) as may be subsequently acquired by or released to Borrower. 885 (02-99) Page 1 of 3 Loan No.: 03-0664-003507696-7 Together With all interest, estate or other claims, both in law or equity, which Borrower now has or may hereafter acquire in said property. 2. The following provisions are added to the Security Instrument as additional terms, conditions and covenants thereof: Lease Provisions. (a) Borrower will not surrender its Leasehold Estate or other interest in or to the Lease, nor terminate nor cancel the Lease, and Borrower will not without the express written consent of Lender modify, change, supplement, alter, or amend the Lease or exercise any options thereunder, either orally or in writing, and as further security for the repayment of the indebtedness secured hereby and for the performance of the covenants herein and in the Lease, Borrower hereby assigns to Lender all of its rights, privileges, and prerogatives as tenant under the Lease to terminate, cancel, modify, change, supplement, alter or amend the Lease or exercise any options thereunder, and any such termination, cancellation, modification, change, supplement, alteration, or amendment of the Lease or exercise of an option thereunder without the prior written consent of Lender shall be void and of no force and effect. (b) No release or forbearance of any of Borrower's obligations under the Lease shall release Borrower from any of its obligations under the Security Instrument, including its obligations with respect to the payment of rent or other charges as provided for in the Lease and the performance of all of the terms, provisions, covenants, conditions, and agreements contained in the Lease to be kept, performed, and complied with by Borrower thereunder. (c) Unless Lender shall otherwise expressly consent in writing, the fee title to the real property demised by the Lease and the Leasehold Estate created pursuant thereto shall not merge but shall always remain separate and distinct, notwithstanding the union of said estates or interests either in Landlord, Borrower, or a third party purchaser or otherwise, and Borrower further covenants and agrees that, in case it shall acquire the fee title, or any other estate, title or interest in such portion of the real property demised under the Lease, this Security Instrument shall attach to, and cover, and be a lien upon such other estate, title or interest so acquired, and such other estate, title, or interest so acquired by Borrower shall be considered as granted, assigned, transferred, mortgaged, pledged, and set over unto Lender and the lien hereof spread to cover such estate, title, or interest with the same force 885(02-99) Page 2 of 3 Loan No.: 03-0664-003507696-7 and effect as though specifically herein granted, assigned, conveyed, transferred, mortgaged, pledged and set over to Lender. (d) Borrower agrees to perform all of the terms and conditions contained in the Lease, and it is covenanted and agreed that any default by Borrower as tenant under the Lease shall constitute a default hereunder. Lender may (but shall not be obligated to) take any action Lender deems necessary or desirable to prevent or cure any default by Borrower in the performance of or compliance with any of Borrower's covenants and obligations under the Lease, and Borrower hereby authorizes Lender to enter upon the Property for such purposes. Any amounts disbursed by Lender under this subsection (d) shall become additional debt of Borrower and shall be secured by the Security Instrument in accordance with the provisions of the Security Instrument. (e) Borrower shall immediately furnish Lender with copies of all notices of default served by Landlord on Borrower under the Lease. Borrower hereby expressly grants to Lender the right to participate in all legal proceedings, including arbitration proceedings, affecting or pertaining to the Lease or the real property demised thereunder. (f) Upon request of Lender, Borrower will promptly furnish to Lender such records and other information as Lender may desire with respect to matters pertaining to the Lease and Borrower's compliance thereunder. X?� ky� MAUREEN H. PIERCE 885 (02-99) Page 3 of 3 a Washington Mutua" December 16, 1999 BEACON BAY/NEWPORT RE: Loan No. 03-0664-003507696-7 Please sign the attached consent to granting of a security interest in lease form and return the signed document to: If you have any questions or if I can be of assistance, please call me at (949) 833-4828 Thank you. LISA E FAURIA Closer For City of Newport Beach s3.z vzli (ASB/LS04) 32801 (05-97) i WHEN RECORDED MAIL TO: Washington Mutual Bank, FA C/O DATA PLEX 12691 PALA DRIVE - MS156DPCA GARDEN GROVE, CA 92641 (Space Above This Line for Recording Data) ® Washington Mutual LESSOR'S CONSENT AND AGREEMENT 03-0664-003507696-7 70151 -KR Recitals Borrower, hereinafter referred to as "Lessee" and as more particularly described in Exhibit A, has applied for a loan from Washington Mutual Bank, FA ("Lender") to be secured by leased property, as such property is more particularly described in Exhibit A ("Property"). Lessee currently holds or will acquire upon consummation of the pending transaction, a leasehold interest under the lease described below and on Exhibit A ("Lease") under which you are the "Lessor." As part of the process of making the loan applied for by Lessee, Lender requires you as Lessor to execute this document. Lender will be relying upon the statements, covenants, consents and agreements contained herein. Agreement The information on Exhibit A is incorporated herein by reference. 2. The Property is subject to the Lease as more particularly described in Exhibit A. The referenced documents constitute the entire and only agreement of the Lessee and Lessor regarding the Property. The Lease is in full force and effect and unmodified. All rents and other charges due have been paid, there are no defaults and the Lease is in good standing. Lessor has no knowledge of any facts which now or after the passage of time, or the giving of notice, or both, would constitute a default under the Lease or any claim of breach, counter 32802 (10-98) Page 1 of 5 03-0664-003507696-7 70151 -KR claim, lien or offset existing under the Lease against rents or other charges due or to become due thereunder. The Lease payments under the Lease are set forth in Exhibit A. Payments and notices to Lessor are deliverable as set forth in Exhibit A. Lessor has no knowledge of any other pledge or hypothecation of Lessee's interest in the Lease, and has no claims outstanding against Lessee in connection with the Property. 3. Lessor hereby acknowledges and consents to the granting of a security interest in Lessee's interest in the Lease to Lender. Lessor agrees to send concurrently to Lender copies of any notices sent to Lessee pertaining to Lessee's default or Lessor's intent to terminate the Lease or any part thereof due to a default under the Lease by registered or certified U.S. mail, which notices shall not be effective until receipt. Lessor agrees to forbear from action to terminate Lease for at least 30 days, or more if specified under the Lease, after service upon Lender of any such notices. No modification, or termination of the Lease shall be effective without the express written consent of Lender. Notices will be provided to Lender by certified mail, at the following address: Washington Mutual Bank, FA , Loan Service, 540 E. Main Street, Stockton, CA 95202, referencing the Loan Number set forth on Exhibit A, or at such other address given to the undersigned by Lender, at the same time as said notices are sent to Lessee, and Lender shall have the same right, but not the obligation, to cure any noticed default as would Lessee. No consent is required from the Lessor in connection with any action taken by Lender with respect to the Property, including modification or extension of the loan, or foreclosure, acceptance of a deed or assignment in lieu of foreclosure or sale of Property after acquisition through foreclosure or otherwise. Lender shall be liable for performance of the terms of the Lease only during the period it holds title to the leasehold estate. Nothing herein shall restrict Lessor's right to recover the Property in accordance with the terms of the Lease in the event delinquent rental payments have not been brought current. 4. Should the Lease be terminated for any reason, Lessor shall, upon written request by Lender to Lessor made within sixty (60) days after such termination, acknowledge Lender as the Lessee and reaffirm the original Lease for the remainder of the term of the Lease with the same covenants, conditions and agreements (except for any requirements which have been satisfied by Lessee prior to termination) as are contained therein as modified hereby. The 32802 (10-38) Page 2 of 5 03-0664-003507696-7 70151 -KR resulting Lease between Lessor and Lender ("Reaffirmed Lease") shall be effective upon Lessor's execution of a Continuation of Lease ("Continuation Form") furnished to Lessor at the time of Lender's request; provided, however that Lessor's execution and delivery of such Continuation Form shall be made without representation or warranty of any kind or nature whatsoever, either express or implied, including without limitation, any representation or warranty regarding title to the Property or the priority of the Reaffirmed Lease. Together with the execution and delivery of such Continuation Form, Lessor shall convey to Lender title to any improvements by quit claim deed for the term of Reaffirmed Lease. Lessor's delivery of any improvements to Lender pursuant to such Reaffirmed Lease shall be made without representation or warranty of any kind or nature whatsoever, either express or implied; and Lender shall take any improvements "as is" in then current condition. Upon the effective date of the Reaffirmed Lease between Lessor and Lender, Lender at is sole cost and expense, shall be responsible for taking such action as shall be necessary to remove Lessee named herein and any other occupant from the Property. Lessor's obligation to reaffirm the Lease of the Property with the Lender as Lessee shall be conditioned as follows (1) Lender has remedied and cured all monetary defaults hereunder and has remedied and cured or has commenced and is diligently completing the cure of all nonmonetary defaults of Lessee susceptible to cure by any party other than by the original Lessee, (2) that if more than one holder of a leasehold mortgage requests such reaffirmation of the Lease, Lessor shall have no duty or obligation whatsoever to determine the relative priority of such leasehold mortgages, and (3) that the Lender pays all reasonable costs and expenses of Lessor including without limitation, reasonable attorneys' fees, real property transfer taxes and any escrow fees and recording charges, incurred in connection with the preparation and execution of such Continuation Form and any conveyances relative to the Reaffirmed Lease. 5. Except to the extent they are inconsistent herewith, this acknowledgment, consent and agreement shall not invalidate any provision of the Lease or the Deed of Trust executed or to be executed by Lessee and Lender. The terms hereof shall be binding on Lessor, and inure to the benefit of Lender and their respective successors and assigns. 32802 (10-98) Page 3 of 5 r 03-0664-003507696-7 70151 -KR Lessor X BEACON BAY/NEWPORT STATE OF California ) SS. COUNTY OF Orange ) On Decenber 20, 1999 before me, the undersigned personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature Notary Public in and for the State of California 32802 (10-98) Page 4 of 5 EXHIBIT A - TO LESSOR'S CONSENT AND AGREEMENT 1. Borrower and Lessee: 03-0664-003507696-7 70151 -KR 2. Property: 29 Beacon Bay Newport Beach, CA 92660 3. Lease (including all amendments): Current Lease payments: $ Deliver notices and payments to: Term of Lease: _ expires on right, at its option, terms of /month. years; commenced on . Pursuant to the Lease, Lessee has the to renew the term of the Lease for consecutive renewal years each. 32802 (10-98) Page 5 of 5 10 Fidelity National Title Company 1300 Dove Street, Suite 310 • Newport Beach, CA 92660 (949) 622-4993 0 FAX (949) 477-6814 ADDITION AND/OR AMENDMENT TO ESCROW INSTRUCTIONS To: Fidelity National Title Company - Major Accounts Date: November 29, 1999 Escrow No: 615753 -PB Property Address: 29 Beacon Bay, Newport Beach, CA 92660 The instructions in this escrow are hereby modified, amended and/or supplemented in the following particulars only: 1) Cash paid on sellers behalf $ 45,591.00 Cash paid outside of escrow $ 65,000.00 New Encumbrance to record $330,000.00 Total Consideration $440,000.00 2) Escrow holder is instructed, at close of escrow, to credit buyers account and charge sellers account with the sum of $45,591.00 that buyer paid on sellers behalf to lender of record to cure loan deficiency. 3) Escrow holder is further instructed, at close of escrow, to credit buyers account and charge sellers account with the sum of $65,000.00 paid directly to seller outside of this escrow and of no cpncern to escrow holder. All other terms and conditions remain the same. CERTIFIED TO SE A TRUE AND EXACT COPY C:s i I -1L: ORIGINAL HEREOF. FIDELITY NATI \L TITLE COMPANY Maureen H. Pierce BY The 29 Company By: Robert F. Ingold, Jr. William G. Geffeney Linda K. Geffeney j � 9 CO