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as provided in paragraph 19, 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 (i) Borrower's occupancy of the Property as a principal residence and (ii) Borrower's income. The Borrower shall not, without the Lender's prior written consent, agree to the abandonment or termination of any conditions, covenants, or restrictions placed upon the Property, any change in the percentage interest of owners in the common areas and facilities of the residence, or the termination of professional management, if any , and assumption of any self-management of the residence. The Borrower acknowledges that this Property is subject to certain use and occupancy restrictions as evidenced by a separate agreement recorded with the County Recorder's Office of the County of San Mateo, limiting the Property's use to "low and moderate income housing" within the meaning of the First Time Homebuyer Program. The use and occupancy restriction limit the Borrower's ability to rent the Property. The violation of any use and occupancy restrictions may, if not prohibited by federal law, entitle the Lender to the remedies provided in Section 23 hereof. 8. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and 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 (including sums secured by the First Deed of Trust), appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 8, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 8 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 rate of 10% per annum and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. Prior to taking any actions under this Section 8, however, Lender shall notify the Senior Lien Holder under the First Deed of Trust of such default in the manner provided in Section 23 of this Security Instrument, and shall provide the Senior Lien Holder under the First Deed of Trust with the opportunity to cure any such default under this Security IIIlllllllllllll �;`:"s�m;"'