Complaint,Petition: BETTY L. DAVIS VS. CARLSON YEE ET AL

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                                Mark E. McKane (SBN 230552)
mark.mckane@kirkland.com
Austin Klar (SBN 292271)
austin. klar@kirkland.com
Joshua D. Furman (SBN 312641)
josh.furman@kirkland.com
KIRKLAND & ELLIS LLP

555 California Street

San Francisco, CA 94104
Telephone: (415) 439-1400
Facsimile: (415) 439-1500

Rebecca Dodson (SBN 289915)
beckyd@bhpcommunitylegal.org
BAY VIEW/HUNTERS POINT
COMMUNITY LEGAL

4622 Third Street

San Francisco, CA 94124
Telephone: (415) 968-8783

Attorneys for Plaintiff
BETTY L. DAVIS

ELECTRONICALLY

FIL

ED

Superior Court of California,
County of San Francisco

10/16/2017
Clerk of the Court
BY:ERNALYN BURA

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF SAN FRANCISCO

UNLIMITED CIVIL JURISDICTION

BETTY L. DAVIS,
Plaintiff,
v.

CARLSON YEE, SHIRLEY LI,

COURTNEY WHEATON, and 8 AND C
COMPANY LLC, and DOES | to 10,

Defendants.

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Case No. CGC-17-558651

EXHIBITS A-N TO SECOND
AMENDED COMPLAINT

Deputy Clerk

EXHIBITS A-N SECOND AMENDED COMPLAINTEXHIBIT Aa 17-763894

Secretary of State
Statement of Information
(Limited Liability Company) 53 FILED
Secretary of State
IMPORTANT — Read instructions before completing this form. State of California

Filing Fee — $20.00 JUN 15 207

Copy Fees — First page $1.00; each attachment page $0.50;
Certification Fee - $5.00 plus copy fees

This Space For Office Use Only

1, Limited Liability Company Name (Ente; the exact name of the LLC. If you registered in California using an alternate name, see instructions.)

S Axv_C ComMPANY LLC

2. 12-Digit Secretary of State File Number | 3. State, Foreign Country or Place of Organization (only if formed outside of California)

ZOVNSGI0 197

4. Business Addresses

a, Street Address of Principal Office - Do not lista P.O. Box eh abbreviations} State | Zip Code
Sb\ CAYUGA AVE SAN FRANCISCO CALF4 2
b. Mailing Adcress of LLC. if different than item 4a City (no abbreviations) State | Zip Code

8. Street Address of California Office, if Item 4a is not in California - De notlist a P.O. Box | City (no abbrevi

8) State | Zip Code
CA

If no managers have been apacin‘ed or elecied, rovice the name and address of each member. Atleast one name and adoress
must be listed. If the manager/member Is an individual, complete Items Sa and Se (leave Item 5b blank). If the managerimember is

5. Manager(s) or Member(s) ar entity, complete items 5b and 5c (leave Item Sa blank). Note: The LLC cannot serve as its own manager or member. If the LLC
has additional managers/members, enter the name(s} and addresses on Form LLC-12A (see instructions).

2. First Name, if an individual - Do not complete item 5b Middle Name Last Ve £ ‘Sut

CARL Sos \W.

. Entity Name - Do not completo tem 5a

City (no abbreviations) cK Zip Code

"SEL CAYUGA AVE SAN ERANCISCO

6. Service of Process (Must provide either Individual OR Corporation.)

INDIVIDUAL - Complete Items 6a and 6b only. Must include agent's full name and California street address.

‘a. California Agent's First Name (if agent is not a corporation) Middie Name Last Name ‘Suffix
ARLSoN W.
AYOGR Ave SW eKucisco ca 4u 2

CORPORATION ~ Complete Item 6c only. Only include the name of the registered agent Corporation.

©. California Registered Corporate Agent's Name {if agent is a corporation} — Do not complete Item 8a or 6b

7. Type of Business

‘a. Describe the type of business or services of the Limited Liability Company,

LENDING SERVICES

8. Chief Executive Officer, if elected or appointed

a FirstName 4 Middle Name LastName Suffix

. Address 7 City (no abbreviations) State | Zip Code

9. The Information contained herein, including any attachments, is true and correct.

Date’ Type or Print Name of Person Completing the Form Title Signature

6/27 CAgison NEE MANAGER, Caabsan 7 ¥

Return Address (Optional) (For communication from the Secretary of State related to this document, cr if purchasing a copy of the filed document enter the name of a
person or company and the mailing address. This information will become public when filed. SEE INSTRUCTIONS BEFORE COMPLETING.)

Name: r ]
Company:
Address:
Cityistatezio: = L J
LLC-12 (REV 01/2017) 2017 California Secretary of State

www.s0s.ce.gov/businessibeEXHIBIT B201715610197

Secretary of State | a
Articles of Organization FILED
Limited Liability Company (LLC) | Secretary of State Sev
State of California
IMPORTANT — Read Instructions before completing this form. MAY 26 2017

Filing Fee - $70.00

Copy Fees - First page $1.00; each attachment page $0.50;
Certification Fee - $5.00

LL i
Note: LLCs may have to pay minimum $800 tax to the California Franchise Tax Board c Ending Added

each year, For more information, go to hitps:/www.ftb.ca.gov, j
\ his Space For Office Use Only {

4. Limited Liability Company Name (See Instructions ~ Must contain an LLC ending such as LLC or LLL.C. “LLC” will be added, if not included.)

S Ant C Co rafory) LLC

2, Business Addresses ——
a Ifal Street Adgress of Designated Office in California - Do net enter a P.©, Box City ine abbreviations) State | Zip Code
Sei CAYUGA AVE SA FeAeasca | ca | TZ
'b Initial Mailing Address of LLC, if different than item 2a City (no abbreviations) State Zip Code
_..

3. Service of Process (Must provide either tndividua! OR Corporation.)

INDIVIDUAL - Complete Items 3a and 3b only. Must include agent's full name and California street address.

a. California Agent's First Name (if agent is not a corporation) Middle Name Last Name Suffix
CARLSON WRIGHT. YEE

‘p. Street Address (if agent is not a corporation) - Do not enter a P.O. Box City (no abbreviations) State Zip Code
BEL CAYUGA AVE SKA FRSC | ca | THN

CORPORATION — Complete Item 3c, Only include the name of the registered agent Corporation.

“e, Califomia Registered Corporate Agent's Name (if agent is a corporation) — Do net complete Item 3a or 3b

4. Management {Select only one box)

The LLC will be managed by:
0 One Manager O More than One Manager tah LLC Member(s)

5. Purpose Statement (Do not alter Purpose Statement)

The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company
may be organized under the California Revised Uniform Limited Liability Company Act.

6, The Information contained herein, including in any attachments, is true and correct.

Cli. Yu 1 SL2 CARLson Yee 4 w

‘Organizer sign here Print your name here

LLC-1 «REV 04/2017) 2017 Califomia Secretary of State
‘www.sos.ca govibusinessibeEXHIBIT CS&C Real Estate
1728 Ocean Avenue, PMB # 206
San Francisco, CA 94112
Phone: (415) 990-5078

November 19, 2016

Regarding: Agreement for purchasing 442 Harkness Ave., San Francisco, CA 94134

Dear Ms, Davis,

After the completion and recording of the title transfer far property located at 442 Harkness Avenue,
San Francisco, CA 94134 from Ms. Betty L. Davis to Mr. Carlson Yee and Ms. Shirley Li. Mr. Carlson Yee
and Mrs. Shirley Li will pay the loan current due plus monthly due to prevent the property from being
foreclosed. After confirming that the title of the property has been transferred per the San Francisco
Assessor-Recorder’s office and a confirmation that the lender will not foreclose on the property, a
$10,000.00 (Ten Thousand US Dollars) check will be made payable to Ms, Betty L. Davis. Ms. Betty L.
Davis will continue to rent out the upstairs of the property at a monthly rate of $2,200.00, which is far
lower than the Fair Market Value of the rent. The rent is due on the 1° of each month. Of course, the
mortgage interest, property tax, and property insurance will be paid my Mr. Carlson Yee and Ms. Shirley
Li. But, Ms, Betty L, Davis must split the utilities with the tenants living downstairs. The split will be
according to the rental agreement, which will be on a per-head split.

Ms. Betty L. Davis agrees that downstairs of 442 Harkness Avenue, San Francisco, CA 94134 will be
remodeled and rented out to tenant(s) chosen by Mr. Carlson Yee and Ms. Shirley Li.

In the future, if Ms. Betty Davis desires to purchase the property back from Mr. Carlson Yee and Ms.
Shirley Li, then the purchase amount will be the fair market value of the property, which will be
determined by an appraiser hired by Mr, Carlson Yee and Ms. Shirley Li.

By signing this agreement, Ms, Betty L, Davis releases interest in said property and relinquishes any
further legal actions with regard to said property. Ms. Betty L. Davis is signing this agreernent with full
consciousness and sound mind.

fi
signature) cthey x Abaya’ pate:_/ 19/1

_Ms. Betty /oavis

2g
fa
Gg
Signature: Cadden. Date: __ fg
Mr. Carlson Yee

Signature:
Ms. Shirley li

Please see attached
California
Acknowledgement ..CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
Ripe eNBCEC EC AESOAS SOAS REIES OHNE ESOS RRS AES IEEE AES EEE

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of »\AN 7 GAN wt )
A ij f
2M} before me, LEV  $808.
Fe aC TTRTTIETS Been”? Bee

~~~ SPACE ABOVE THIS LIN FOR RECORDER'S USE———
eee Individual Grant Deed AWE fot 20/Dlock 6165
_ Tah

a

Ti anes Seon CT
Documentary transfer inx Is § BOO.
(x) computed on full vatue of property conveyed, or

800,C0____, Clty Transfer "ax 6

$ } computed on full valuo less value of Hons and encusnbranices rematning al the of sole,
Unincorporated area: (—_) City of __8& ECCLES sand

FOR A VALUABLE CONSIDERATION, seccipt of which Is hereby acknowledged,
Ble Joseph Cuminghon, 8 married man, ag hie sole and septrabs proparty who

soquired title as en unmarried man
hereby GRANT(S) lo Betty Louies Davie, an unmarried woran

{ho following desertbed real property inthe San Francteco
County of San Franatsco + Stoto of Callfornis:

Lor| a IBZ GG

tegal Description attached harato and nede a part hareoti

STATG OF

SHOP SERN COCGECS _ Ys
on ENS ST) ERS ete a :

i aot paved to me oo hs bua of talhatan) daned) te bv We pasa) whieb noma) Klay tebeatoed 1S Os

emaliy ere
loses ud aac tome Da eben cx sae Mbt eb egy pd by Hea
satus) 9a Ue Lstrusient the person(s) on 4 Sly upon behall of whieh the peasceg) acted, excexied tbe Insta, 1

pestreremseramnannnsy
MN a

ey ean a

iat

‘vaausouy

a Teng A CEMICHO i
3 & mene
i Walle -cetoRiin 2
‘$4 Wt county ei sue
‘Tile Order No Byetow of Loan No.,

Ie cwsonbbG et
Ta SoU APRDENTS A GRECTED ABOVEFAaz8841

DESCRIPTION;

THE LAND REFERRED To HEREIN Is SITUATED INTHE STATE OF CALIFORNIA, CITY AND COUNTY OF
SAN FRANGISCO, DESCRIBED AS FOLLOWS:

BEGINNING at the Point. of intersection of the southeasterly line of Mill Streat with the
Northeasterly Iino of Horknass Avenuo; running thence southeasterly along sald fino of
Hotkness Avenue 26 feet; thence at a right angle northeasterly 76 fenti thonco at a right
angle northwesterly 25 feot to the southeasterly line of Mill Stroat; thenco ate right angle
southwesterly along said lina of Mill Street 75 foot to thé point of beginning. a

BEING 2 portion of. Lots 1,2 and 3, in Block 36, REIS TRACT.

Assossors Parcel No. : Lot 20, Block 6186EXHIBIT FRECORDING REQUESTED BY
Alliance Titte Company
AND WIEN RECORDED MALL. TO

ame Hetty L Davis

Sore a
Aiden “Vte Harkness Ave.

oe San Franeiseo, CA 94134

» DOC-

" Check Number 1388

MT

Phil Ting a sesso Resor

007-1492899-00

Tuesday, NOV 27, 2007 10:29:88
| TELPd $12.08 Nor =0003353007
‘REEL J524 IMAGE 0270

ofa/FT/i-2

APN Ro: 17166-02001
Frupaty Addrens, 442 Werkaen Avenpe, Sag Frevtions CA MLM

SPACE ABOVE THIS LINE FOR RECORDER'S USE.

GRANT DEED
THE UNDERSIGNED GRANTOR(s) DECLARES) Documentary Transfer Tex is $9.00
City of Sas Frantises a

Comseyance Tax is $0.00
Parcs] Nu, 37-6166-020-01

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
Betty 1. Davis. Frastee of the Betty Louise Davis trust Dated October 20, 2003

hereby GRAN’ 109
ried woman

Betty 1. Davis dud’ Predute jake Fields, an unnarticd ina as joint tenants

the following real property in the city of San Francisco
county of San Francisca, state of California:

NItihit A attached hereto and made a part hereof.

Dated: November 21, 2007

Betty Louise Davis Trust Dated October 20, 2003

cou, TY OF San Heanciscu

on _U- BU ~ we?
Ma S$. 00

‘a Notary Pubic, ayer 2 7

persendipkaam-reane (or proved fo me on the hayis of satisfactory
evidoue) to de the person(s) whosc nomets) is/are subscribed 10 the within
instrunsent aul acknuwledged to me that he/shethey executed the sanw in
disthesttherr authunsed capscitylies) at By hisftux/their signuture(s) on
theTastruiment the petsonts), «af the entity upon Behalf of which ts
forvon(s), acted, execulet! the instrument.

before mec,

WTUPNESS my hand sed officiut scal.

Ma $00, Neteay Public

MAIL TAX STATEMENTS TO PARTY SHOWN ON THE FOLLOWING LINE; IF NO PARTY SHOWN, MAIL AS DIRECTED ABOVE

This area for official notorial sal)

Name Steet Address

City & State

* San Francisco Assessor-Recorder

=Exhibit A

All that certain Property in the City of San Francisco, County of San Francisco, State of
California described as follows:

BEGINNING AT THE POINT OF INTERSECTION OF THE SOUTHEASTERLY
LINE OF MILL STREET WITH THE NORTHEASTERLY LINE OF HARKNESS
AVENUE; RUNNING THENCE SOUTHEASTERLY ALONG SAID LINE OF
HARKNESS AVENUE 25 FEET; THENCE AT A RIGHT ANGLE
NORTHEASTERLY 75 FEET; THENCE AT A RIGHT ANGLE NORTHWESTERLY
25 FEET TO THE SOUTHEASTERLY LINE OF MILL STREET; THENCE AT A
RIGHT ANGLE SOUTHWESTERLY ALONG SAID LINE OF MILL STREET 75
FEET TO THE POINT OF BEGINNING.

BEING A PORTION OF LOTS 1, 2 AND 3, IN BLOCK 36, REIS TRACT.EXHIBIT Ge fee mol 2-812 ORT EN

San en — i r
essor=Kecor:
Pi is O07 1498046-00

Check Number 1370
DEC 05, 2007 10:41:35
TEL Pd 4B. 00 Rept 8 OD03250684

Recording Requested By:
M. TROZA

Afler Recortling Return Ta:

i COUNTR YW: CXE LOANS, INC. MAGE 0254
OUNTRYWIDE HONE REEL J53@ I Fissera-13 Vv
MS SV-79 JCCUMENT PROCESSING
P.9.Box 20423
var Nuys, SA 91420-0423
Prepared By:
ALLEN QUINTERO
—_— ——— += [Space Above This Line For Recording Data] —.. — — a
12545492-a22 00018724098221007
iBecsow/clowlng i) 7 iB R)

: DEED OF TRUST

: 20 MIN 1002337-000275¢804-¢

; DEFINITIONS

Wards used in multiple sections af this document are defined below and other words are defined in Sections 3,11. 13, 18. 20
and 21. Certain rules regarding the usage of wards used in this docuntent are also provided in Section 16.

t (A) “Security Instrument" means this document, which is dated NOVEMBER 28, 20C7 — , togethor with all Riders to
4 this decumes

% (B) “Borrower" is

i FREDDIE STELDS, AN UNMARRIED MAN, AND BETTY % DAVIS, AN UNMARRIED WOMAN AS JOINT

4 TENANTS

Borrower's address is
442 HARKNESS AVE, SAN FRANCISCO, CA 94134-2151
t Borrower is the trustor under this Security Instrunvent.

CALIFORNIA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS,

M Deed of Trust-CA
TOOGA-CA (08/07) (dh) Page 1 of 12 Form 3005 1/03

‘
"23991" 7

i 2 820090901eo gay BT Ng TEAL gnats oh

bOC TD 4: 00018724099Z119C7

is
ie Bank, 758.

Lender is ) SVGS BANK

organized and existing under the laws of He
Lender's address is

1199 Nerch
(Dp "Trustee" is

ReconTrust Company, N.A

225 West Hilicrest Dr., MSN TO-02, Thousand Saks, CA 91369 :
(E) “MERS" js Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a
nominee for Lender and Lender's successors and a . MERS is the beneficiary under this Security Instrument. MERS is
organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flin,
. tel. (888) 679-MERS.

Tocants the promissory note signed hy Borruwer and dated — NOV!
awes Lender

FOUR HUNDRED SEVENTEEN THOUSAND and 9€/100

(C) “Lende
Countryw

D STATES

irfax St. Ste.500, Alexandria, VA 22314

2ER 29, 20C7 » The Note states that

Datlars (US. $ 417, 00C.09 ) plus interest. Borrower has promised to pay this debt in regular Periostic Payments and
to pay the debt in full not later than DECEMBER C1, 2037.

(G) “Preoperty™ means the property that is desctibed below under the heading “Transfer of Rights in the Property.”

(H) "Loan" means the debt evidenced ty the Note, phis interest, any prepayment charges and late charges due under the Note.
and all sums duc: under this Security Instrument, plus interest.

(2) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to Te
executed by Borrower |check box as applicable]:

ED Adjustable Rate Rider (2 Condominium Rider CD Second Home Rider
C1 Balloon Rider Plauned Unit Devetopment Rider CO ¢ 4 Family Rider
OVA Rider Biwevkly Payment Rider DD Other(s) [specify]

(J) “Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and
rules and orders (that have the effect of law) as weil as ail applicable fina), non-appealable judicial apinions.
‘ommunity Association Dues, Fees, and Avacssments” means all dues, fees, assessments and other chasges that are
imposed on Borrower or the Property by a condominium association, homeowners association or similar organizatio
(L) “Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, drafi, ar similar
paper instrument. which is initiated through an clectronic terminal, telephonic instrument, computer, or magnetic tape
order, instruct, «ir authorize a financial institution to debit or credit an accouat. Such term includes, but is not limited so
sale transfers, automated teller machine transactions, transfers initiated hy telephone, wire transfers, and automated che:
transfers.
«M) row Items" owans those items that are described in Section 3.
(N) “Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party
(other than insurance proceeds paid under the coverages described in Section 5) for: (ij damage to, ar destruction af, the Property:
(ii) condenmation or other taking of all or any part of the Property: (ii) conveyance in lieu of condenmation: or tiv)
misrepresentations of, or omissions as to, the vaiue and/or condition of the Property.
(0) “Mortgage Insurance" tneans Insurance protecting Lender agains! the nonpayment of, of default on, the Loan.
(P) “Periudic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus {ii} any
amounts under Section 3 of this Security Instrument.
(Q) “RESPA” means the Rea) Estate Settlement Procedures Act (12 U.S.C. Section 2601 ct seq.) and its implementing
jon, Regulation X (24 C.F.R. Part 3500), as they might be amended frum time io time, or any additional or saucer
ion or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA” refers
Tequitements and restrictions that are imposed in regard to a “federally related morigage loan” even if the Laan does nat quali
a” federally related mortgage loan* under RESPA,
AR) “Successar in Interest of Borrower" micans any party that has taken title to the Property, whether or not that purty has
assumed Barrower's obligations under the Note and/or this Security Instrument,

M Deed of Trust-CA
YO06A-CA (06107) Page 2 of 12 Farm 3008 1/01eet ee,

bot 1D #: 09929724999211007
TRANSFER OF RIGHTS IN THE PROPERTY
The beneficiary of this Security Instrumeat is MERS (solely as nominee for Lender and Lender's successors and assigns) amd the
successoms and ass of MERS. This Sceurity Lnstrument secures to Lender: (I) the repayment of the Loan, and all renewals,
extensions and maxlifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security
Instrument and the Note, For this purpose, Borrower irrevocably grants and conveys ta Trustee, In trust, with power of sale, the
following described property located in the

COUNTY of SAN FRANCISCO
[Type of Recorting Jurisdiction] [Name of Recording Jurisdiction]

SRE EXHIBIT “A" AVTACKED HERETO AND MADE A PART EEREOK.

Parcel ID Number: 615 | 20 which currently has the address of
442 HARKNESS AVE, SAN FRANCISSO .
[Street/City|
Califormia 96724 2152 {"Propesty Address"):
[Zip Code!

TOGETHER WITH all the improvements now or hereafter erected an tk: property, aad all easements, appurtenances, atid
fixtures naw or hercafter a part of the property. All replacements and additions shall alsa be covered hy this Security lostranwnt.
Alt of the foregoing is referred to in this Security Instrament as the "Property." Barrawer understands and agrees that MERS holds
culy legal title to the interests granted by Borrower in this Security Insirament, if necessary 19 comply with law or custom.
MERS (as nontince for Lender and Lender's successors and assigns) has the right: 10 exercise any or all of those interests,
including. but not limited to, the right to foreclose and sell the Property: and to take any action required of Lender including, but
not fimited to, releasing and canceling this Security Instrument.

BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to prant and
convey the Property and that the Peoperty is unencumbered. except for encumbrances of record. Borrower warrants ancl will
defend gencrally the title to the Property agalnst all claims and demands, subject to any encumbrances of meurd.

THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with fimited
variations hy jurisdiction tm constitute a uniform security instrument covering real property.

UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:

1. Payment of Principal, Interest, Excrow Ients, Prepayment Charges, and Late Charges. Borrower shall pay when
due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges duc uruler the
Note. Borrower shail also pay funds for Escrow Hems pursuant to Section 3. Payments duc under the Note and this Scenrity
Snstrument shall be made in U.S, currency. However, if any check or other instrument received by Lender as payment under the
Note or this Security Instrument is rensmed to Lender unpaid, Lender may require that any ar all subsequent payments due under
the Note and this Security Insirument be made in one or more of the follawing forms, as selected hy Lender: (a) « (h) 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.

Paymeuts are deemed received by Lender when received at the location designated in the Note ar at such other location as
may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial
payment? if the payment or partial payments are insufficient to bring the Loar current. Lender may accept any payanent or partial
Payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse: such
Payment or partial payments in the future, but Lender is nut obligated to apply such payments at the time such paynients are
accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplic«! fuels,
Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower dacs do so
within a reasonable period of time, Lender sleall cither apply such funds or return there to Borrower. If not applied earlier. such
funds will be: apptied to the outstanding principal balance under the Nate immediately prior to foreclosure. Ne offset or claim

M Deed ot Trust-CA,
TOOBA-CA (08/07) Page 3 of 12 Form 3005 101ROO 1D #: OOGIB724C3S221007

which Borrower might have now or in the future against Lender shall relieve Borrower from making payments duc wider the Note
and this Security instruntent or performing the covenants and agreements secured by this Security Instrument

2. Application of Payments ar Proceeds, Except as otherwise described in this Section 2, all p
applied hy Leader shalt be applied in the following order of priority: (a) interest due under she Nate; (p) pri
Nate: (¢) amounts duc under Sectiam 3, Such payments stall he applied to each Periodic Payment in the order in which it bec:
due. Any remaining amounts shall be applied first to Tate cha weond to any other amoutts due undee this Security Instrument,
and then to reduce the principal balance af the Note,

Hf Lender receives a payment from Borrower for 2 delinquent Periodie Payment which includes a sufficient amount to pay
change due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic
is outstanding, Lender may apply any payment received fram Borrower to the repayment of the Periadic Paynients if,
andl tg the extent that, cach payment can be paid in full, To the extent that any ¢: exists after the payment is applied to the full
payment af one or more Periodic Payments, such excess may be applied to any late charges due, Voluntary prepayments shall he
applied first to any prepayment charges and then as described in the Note,

Ally application of payments, insurance proceeds, or Miscellaneous Proceeds to principal duc under the Nate shail not extend
or postpone the due date, ur change the aniaunt, of the Periodic Payments,

3. Funds for Escrow Ltems. Borrowes shall pay to Lender on the day Periodic Payments are due under the Note, until the
Note is paid i full, a sum (the Funds") to provide for payment of amounts clue for: (a) taxes and assessments and other items
which can altain priority over this Security Instrument as a Tier or encumbrance on the Property: (b) leasehold payments or ground
rents on the Property, if any: (¢) gremiums for any and all insurance required by Lender under Section 5: and (d) Mortgage
Insurance premiums, if any, or any sums payable by Borruwer to Lender in tien of the payment af Mortgage Insurance premiums
in accordance with the provisions af Section 10. ‘These items are called “Escrow Items.” Al origination or at any time during the
term of the Loan, Lender aay require that Community Association Dues, Fees, and Assessments, if any, he escrowed by
Borrower, and such dues, foes and assessments shall he an Escrow tem. Borrower shall promptly furnish to Lender all notices of
aronunts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Barrnwer's
obligation to pay the Funds for any or all Escrow Ties. Lender may waive Borrower's abligalion to pay to Lender Funds for any
or all Escrow Items at any time. Any such waiver may only be in writing, In the event of such waiver, Borrower shall pay
directly, when and where payable, the amounts due far any Escrow Items for which poyment af Funds has heen waived hy Lender
and. if Lender requires, shall furnish 10 Lender receipts evidencing such payment within such time period as Lender may require.
Borrower's obligation to make such paymeats and to provide pis shall for all purposes be deemed to be a covenant and
agreement contained in this Security Instrument, as the phrase "covenant and agreement” is used in Section 9. If Borrower is
obligated to pay Escrow Items directly, pursuant to a waiver, and Borruwer fails ta pay the amount due for an Escrow Item. Lender
May exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to
Lender any such aniount. Lender nay revoke the waiver as to any or all Escrow Items at any time by a notice given in aceordane
with Section 15 and, upon such revocation, Borrower shalt pay to Lender all Funds, and in such amounts, that are then required
under this Section 3.

Leneler may, at any time, cotleet and hold Funds in an aniount (a} sufficient to permit Lender to apply the Funds at the time
specified under RESPA, and (b} not to exceed the maximum amount a lender can require nuder RESPA. Lender shall estiniate the
amount of Funds duc on the basis of curren! data and reasonable estimates af expenditures of future Escrow Items or otherwise in
accordance with Applicable Law.

‘The Funds shall be held in an institution whose deposi e insured by z federal agency, instrumentality, or entity (including
Lender, if Lender ts an institution whose deposits are so insured) or in any Federal Home Loan Bank. Louder shall apply the
Funds to pay the Escrow Ttems no tater than the time specified under RESPA. Lender shall not charge Borrower for holding and
applying the Funds, annually analyzing the escrow account, or verifying the Escrow is, unless Lender pays Borrower interest
on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made int writing or Applic
Law requires interest to be pid on the Funds, Lender shall nat be required ta pay Borrower any interest or carnings an the Funds.
Borrower and Lender can agree in writing, however, that interest shail be paid an the Funds, Lender shall give to Burrower,
without charge, an annual accounting of the Funds as required by RESPA.

VW there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds
in accordance with RESPA. Tf there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower
as required hy RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with
RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA,
Lender shali notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the
deficiency in accordance with RESPA, but in nu more than 12 monthly payments.

Cpan payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds
held by Lender,

S accepted and

M Dred of Irust-CA
TOO6A-CA (06107) Page 4 of 12 Form 3008 1/01:

noc In #: 00C187240Sa217.c07

4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fies, and impositions attributahle 40 the Property
which cat attain priority over this Security Instrument, leasehold payments or ground rents on the Property. if any.
and Contmunity Association Dues, Fees, andl Assessments, if any. To the exient that these items are Escraw Tems, Borrower shall
pay them in the manner provided in Section 3,

Borrawer shal} promptly discharge any tien which has priority aver this
writing to the payment of the obligatian secured hy the bie
pvforming such agreement; (b) contests the Hea in gand faith by, is against enforcement of the lien in, legal proceedings
which in Lender's opinion operate to provent the enforcement of the lien while those proceedings are pending, but only until such
proccedings are concladed; of (©) secures from the holder of the Hen an agreeme tistactary to Lender subordinating the Jien by
this Security Instrument. If Lender determines that any part of the Property is subject tu a lien which can attain priority over this
Security (nstrument, Lender may give Borrower a notice Identifying the Hen. Within LO days of the date on whieh that notice is
given, Borrower shall satisfy the lien of fake one ar more af the actians set forth above in this Section 4.

Lender may require Borrower to pay a aue-time charge for a real estate (ax verification and/or reparting service ised by
Lender in connection with this Loan.

§ Property Insurance. Borrower shall keep the improvements tow existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term “extended coverage.” and any other hazards including. hut not limited te.
earthquakes and floods, for which Lender cequires insurance. This insurance shall be maintained in the amounts {including
deductible levels) and for the periods that Lender requires. What Leader requires pursuant to the preceding sentences ¢
during the tera: of the Loan, ‘The insurance carrier providing the insurance shall be chosen by Borrower sut
to disapprove Borrower's choice, which right shall nor he exercised unreasonably. Lender may requi
in connection with this Laan, either: (a) 4 one-time charge for flood zane determination, cestification and tracking services;
or (b) a one-time charge for flood zone determination and certification services and subsequent charges ¢ach time remappings or

ilar changes occur which reasonably might affect such determination or certification, Borrower shall also be responsible fur
the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any fluud zone
determination resulting from an objection by Borrower.

If Borrower fails «0 maintain any of the coverages described above, Lender may abiain insurance coverage, at Lender's aption
and Borrower's expense. Lender is under no obligation t purchase any particular type ar amount of coverage. Therefore, such
coverage shall cover Leader, but might ar might not protect Borrower, Borrower's equtty in the Property. or the contents of the
Property, apainst any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect, Barrower
acknowledges that the cost af the insurance coverage su obtained might significantly excced the cost of insurance that Borrower
could have obtained. Any amounts disbursed hy Lender under this Section 5 shall become additional debt of Borruwer secured by
this Security Instrument. These amounts shall bear interest at the Note rate from the date af disbursement and shall be payable.
with such interest, upon notice fron) Lender to Borrower requesting paymen

All insurance policies required by Lender and renewals of such policles shall he subject to Lender's right ta disapprove such
policies, shall include a standard mortgage clause, and shall name Lender as miorigagee and/or as an additional loss payer
Borrower further agrees to generally assign rights te insurance proceeds to the holder of the Note up to the amount of the
outstanding Joan balance. Lender shall have the right ty hoid the policies and renewal certificates. If Lender requires, Borrower
shall promptly pive to Lender all receipts of paid premiums and renewal notices, If Borrower obtains any form of insuranee
coverage, not othenvise required hy Lender, for damage to, or destruction of, the Property, such policy shat] include 2
iwortgage clause and shal! name Lender as mortgagee and/or as an additional lass payer and Borrower fursher agrees to generally
assign rights 1 insurance proceeds to the holder of the Note up to the amount of the outstanding Joan balance.

In the event of loss, Borrower shall give prompt! notice to the insurance carrier and Lender. Lender may make proof af loss if
not made promptly by Borruwer. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether ar not
the underlying insurance was required by Lender. sha!l be applied to restoration or repair of the Property, if the restoration of
tepair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have
the right 4 hold such insurance proceeds until Lender has had an opportunity to Inspect such Property to ensure the work fas been
completed ta Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for
the repairs and restoration in a single payment or in a series of progress payments as the work ts completed. Unless an agreement is
mde in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall aot be required to pay
Borrower any interest or earnings on such proceeds, Fees for public adjusters, or other third parties, retained hy Borrower shall nat
be paid out of the insurance proceeds aod shall be the sole obligation of Borrower. If the restoration or repair is not econumically
feasible or Lender's security would be Jessened, the insurance proceeds shall be applied to the sums secured hy this Security
Instrument, whether or not then due, with the excess, if any. paid to Borrower. Such insurance proceeds shall he applied in the
order provided fur in Section 2.

If Borrower abandons the Psaperty. Lender may file, negotiate and settle any available insurance claim and related matters.
If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to 3

ccurily Instrument unless Borrower: (a) agrees in.
table to Lender, hut anly so long as Borrower is

M Deed of Trust-CA
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DOC 1D #: OOC16724C9E.

then Lender may negotiate and settle the claim. ‘The 30-day period will begin when
Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower rights fo any
an amaunt not te exered the amounts unpaid under the Note ar this Security Insizument, andl (b) any ether of
ors er than the right to any refund of uneamed prentiums paid hy Borrower) under all insurance policies
covering the Propem insofar as such righ Pplicable (a the coverage of the Property. Lerder may use the insurance
proceeds vither tu repair of restore the Property or to pay amounts unpaid ander the Note or this Security Justrument, whether or
not then duc,

6. Ocewpancy. Borrower shall oecupy.
after the execution of this Security Instrument

stablish, and use the Property as Borrower's principal residence within 60 days
all continue to occupy the Property as Borrower's principal residence for at
feast one year after the date of occupancy, unless Lender otherwise: agrees in writing, which consent shall not be wnreasorably
withheld, or unless extenuating circumstances exist which are heyond Borrnwer's control,

7. Preservation, Maintenance and Protection of the Praperty; Inspections. Borrower shall not destroy. damage or
impair the Property, allow rhe Property to deteriorate or commit waste on the Properly, Whether ar not Borrower is residing in the
Property, Borrower shall maintain the Property in arder 1 prevent te Property from deteriorating or decreasing in Value di IS
coudition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall
proniptly repair the Property if damaged to avoid farther deterioration ar If insurance or condemnation proceeds are paid
in connection with damage to, or the taking af. the Property, Borrower shall he responsible for repairing or restoring the Property
only if Lender has released proceeds for such purposes. Lender may dishurse proceeds for the repairs and restoration in a single
payment of in a series of progress payments as the work is completed. If the insurance or condemmation proceeds are not
sufficient to repair or restore the Property, Basrower is shot relieved of Borrower's obligation for the completion of such repair or
restoration,

Lender or its agent may niake ceasonable etiries upon and inspections of the Property. Tf it has reasonable rause, Leader may
inspect the interior of the improvements on the Propeny. Lender shall give Borrower notice af the fine of or priog to suet an
interior inspection specifying such reasonable cause.

8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Burrowor or any
persons or entities acting at the direction of Borrower or with Barrawer's knowledge ar consent gave materially
or inaccurate information of statements to Lender {or failed 19 provide Lender with material information) in connes
Loan, Material representations include, but are not limited to, representations conceming Borrower's occupancy of the Praperty as
Barrower's principal residence.

9% Protection af Lender's Interest in the Property and Righty Under this Security Instrument. If (a) Borrower fails
to perform the covenants and agreements contained in this Security [ustrament, (b) there
significantly affect Lender's interest in the Property and/or rights under this Se
hankruptcy, probate, for condemmation or forfeiture, fur enforcement of a lien which may attain priority aver this Serurity
Tnstrunient or to enforce laws or regulations), or (¢) Borrower has abandoned the Property, then Lender may da and pay for
whatever is reasonable or appropriate to prowct Lender's interest in the Property and rights under this Security Instrument,
including protecting and/or assessing the vaiue of the Properly, and securing and/or rcpairing the Property. Lender's actions can
include, but are wot limited to: (a) paying any suns secured by a lien which has priority aver this Security Instrument;
(b) appearing in court; and (c} paying reasonable attameys’ fees to protect its Interest in the Property and/or rights under (his
Security Instrument, including its secured position in a bankruptey proceeding. Securing the Propeny Includes, but is not linsited
to, entering the Property to make repairs, change locks, replace of hoard up doors and windows, drain water fram pipes, eliminate
building or other code violations ux dangerous conditions, and have utilities turned on or off. Atthough Lender may take action
under this Section 9, Lender docs not have to do so and is not under any duty or obligation to do sa. This agreed that Lander incurs:
na liability for not taking any or al} actions authorized under this Section 9.

Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security
Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such
interest, upan notice from Lender ty Borrower requesting payment.

If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires,
foe dile to the Property, the easchold and the fee title shall not merge unless Lender agrees to the merger in writing.

10, Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay
the premiums required ta maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required
hy Lender ccases to be available from the mortgage Insurer that previously provided such insurance and Borrower was required to
make separately designated payments taward the premiums for Mortgage Insurance, Borrower shall pay the premiums rejnired (0
obtain cuverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially eyuivalent to the
cost to Borrower of the Mortgage Insurance previously in effect, from an alternaie: mortgage insurer selected by Lender.
If substantially equivalent Mortgage Insurance cuverage is not available, Borrower shall continue to pay to Lender the amount of
the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept use and

M Dewi ol Trust-CA
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4
i
é

q

DOC 2b 4; 00018724099212007
retain shes payments as a non refunttable loss resezve in lieu af Muetgage Insurance. Such loss reserve shall be not refurlable,
natwithistanding the fact that the Loan is ultimately patd in full, and Lowler shall nut be required ta pay Borrower any i
carnings on such loss reserve. Lender can no longer require loss reserve payinents if Mongage Insuran
ant for the period thar Lendes requires) provided by an insurer selected by Lender again becomes. available, is obtained, and
Louder requires, rately designated payments toward the premiums fos Mortgage Insurance. If Lender required Mortgage
lasurance as a condition of making the Loan and Borrower was required to make separately designated payments sowarel the
premiums for Morigage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
provide a non-refundable foss reserve, Lender's requirement for Mortgage Insurance ends in accordance with any written
agreement between Borrower and Lender providing for such termination or until iermination is required by Applicable Law.
Nothing in this Section 10 affects Borrower's abligation to pay interest at the rate provided in the Not

Mortgage [Insurance reimburses Lender (ur any entity that purchases the Note} for certain losses i) may incur if Borrower
does not repay the Loan as agreed, Borrower is not a party to the Mortgage Insurance,

Mongage insurers evaluate their total risk an all such insurance in farce from time to lime,
with other parties that share or modify their risk, ar reduce losses. “These agreements are an terms and conditions that are:
satisfactory to the mortgage insurer and the other party (or partivs) ta these ageeements. These: agreements may require te
mortgage insurer to make payments asing any source of funds that the morigage insurer may have available (which may include
funds obtainest from Mortgage Insurance premiais),
sult of these agreements, Lender, any purchasee of the Note, another insurer, any reiusurer, any other entity. or any
affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as)
a portion af Borrower's payments for Mortgage Ensurance, in exchange for sharing ar modifying the mortgage insure
or reducing losses, If such agreement provides that an affiliate of Lender takes a share af the insurer's rivk in exchange for a share
of the premiums paid to the insurer, the arrangement is often termed “captive reinsurance.” Further:

(a) Any such agreements will not affect the amounts that Borruwer has agreed to pay for Mortgage Insurance,
or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgape insurance,
and they will not entitle Borrower to any refand.

tb) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Invrunce
under the Homeowners Protection Act of 1998 oF uny other law. These rights may include the right tu re
disctosures, to request and obtain cancellation of the Mortgage Insurance, tu have the Mortgage Insurance
andar to receive a cefund of any Mortgage Insurance premiums that were unearned at the time of such
lerminution.

Ji. Assignment of Miscellaneous Proceeds; Forfeiture, All Miscellaneous Proceeds are herehy assigned te and shalt be
paid to Lender.

Uf the Property is damaged. such Miscellaneous Proceeds
restoration or repair is economically feasible and Lender's

and ray enter into agrecments

hall be applicd to restosation or repair of the Property. if the
is not fessened. During such repair and restoration period,
Lender shall have the right to hold such Miscellaneous Proceeds until Lender has kad an opportunity to inspect such Property to
ensure the work has bees completed to Lend sfaction, provided that such inspection shall be undertaken primptly.
Lender may pay for the repairs and restoration in a single disbursement or in a series oF progress payments as the work is
completed. Unless an agreement is made im writing or Applicable Law requires interest to be paid on such Miscellaneous
Proceeds, Lender shall aot be required (© pay Borrower any interest of camings on such Miscellaneous Proceeds. if the restoration
of repair is not econemically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the
‘sums secured by this Security Instrument, whether or not then duc, with the excess, if any, pail to Borrower. Such Miscellaneous
Proceeds shall be applied in the order provided for in Section 2,

tn the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the
sums serared hy this Security Instrument, whether or not then due, with the excess, if any, paid ta Borrower,

Tu the event of a partial taking. destruction, or loss in value of the Preperty in which the fair market value of the Property
immediately before the partial taking, destruction, or loss in value ts equal to or greater than the amount of the sums red by
this Security Instrument Immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise
agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellancnns Proceeds
multiplied by the following fraction: (a) the total amount of the sums secured immediately hefore the partial taking, destruction,
or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or huss in
value. Any balance shall be paid to Borrower.

Jn the event of a partial taking, destruction, or loss in value af the Property in which the fair market value of the Property
inunediately before the partial aking, destruction, or loss in valuc is Jess than the amount of the sums secured immediately before
the partial taking. destruction, ar loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds:
shall he applied ro the surns secured by this Security Instrument whether or not the sums are then due,

M Deed at Trust-CA
1006A-CA (08/07) Page 7 ol 12 Form 3005 1/03SOS Ab #: 00028724098211007

If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the
next sentence) offers ta make an award to settle 4 clain for damages, Borrower fails to respond to Leader within 30 days after #
date the notice is given, Lender is authorized to collect and apply the Miscellancous Procecls elther to restoration or repalr of the
Property ar to the sums secured by this Security Tn