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to all advances heretofore made or which may hereafter be made pursuant to the First Lender Deed of Trust including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Lender Deed of Trust, or for any other purpose expressly permitted by the First Lender Deed of Trust or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First Lender Deed of Trust are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of foreclosure of the First Lender Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. Further, if the First Lender acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of the Deed of Trust shall automatically terminate upon the First Lender's acquisition of title, provided that the Agency shall not have cured the default under the First Deed of Trust or diligently pursued curing the default as determined by the First Lender within the sixty (60) day period provided in such notice sent to the Agency. 7. Hazard Insurance. Borrower will keep the Security insured by a standard fire and extended coverage insurancepolicy in at least such amounts and for such periods as the Agency may require, which amounts shall be the lesser of (1) the sum of the loan amount under the Note and the First and Second Lenders Note, or (2) the replacement cost of the Security, but in no event less than (3) the amount necessary to prevent Borrower from becoming a co-insurer under the terms of the policy. The insurance carrier providing this insurance shall be licensed to do business in the State of California and be chosen by Borrower subject to approval by the Agency. All insurance policies and renewals thereof will be in a form acceptable to the Agency and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of the Second Lender Note as its interests may appear and in a form acceptable to the Agency. The Agency shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Borrower shall promptly furnish to the Agency, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Borrower will give prompt notice to the insurance carrier and the Agency or its designated agent. The Agency, or its designated agent, may make proof of loss if not made promptly by Borrower. The Agency shall receive thirty (3 0) days advance notice of cancellation of any insurance policies required under this section. Unless the Agency and Borrower otherwise agree in writing, insurance proceeds, subject to the rights of the First Lender, will be applied to restoration or repair of the Security damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds will be used to repay the grant under this Deed of Trust, with the excess, if any, paid to Borrower. If the Security is abandoned by Borrower, or if Borrower fails to respond to the Agency, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to borrower that the insurance carrier offers to settle a claim for insurance benefits, the Agency, or its designated agent, is authorized to collect and apply the insurance proceeds at the Agency's option either to restoration or repair of the Security or to repay the loan. If the Security is acquired by the Agency, all right, title and interest of Borrower in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to the sale or acquisition will pass to the Agency to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition subject to the rights of the First Lender. 8. Occupancy of Property, Borrower's Loan Application. Borrower shall occupy, establish, and maintain the use of the Property as Borrower's principal residence within sixty (60) days after the execution of this Security Instrument. Borrower's principal residence shall mean the Property is occupied by the Borrower for at Redwood City First Time Homebuyer Silent Loan Progr-- rlrpd of Tnist Anril 23.2000 1111111111111111111111111111111111111111111111111111111 e�0 4 �0�� A 2�0