129175-129185

HEALTH AND SAFETY CODE
SECTION 129175-129185




129175.  Should a borrower be more than 10 days delinquent in paying
the premium charges or inspection fees for insurance under this
chapter, the office shall notify the borrower in writing. If that
payment remains delinquent more than 30 days after the sending of the
office's notice to the borrower, the office shall make every
reasonable effort to notify the lender in writing. If that
delinquency continues, on the 31st day after sending of the office's
notice to the lender, the insurance shall be terminated and become
null and void.


129180.  The obligation to pay any subsequent premium charge for
insurance shall cease, and all rights of the lender and the borrower
under this chapter shall terminate as of the date of the notice, as
herein provided, in the event that (a) any lender under a loan
forecloses on the mortgaged property, or has otherwise acquired the
project property from the borrower after default, but does not convey
the property to the office in accordance with this chapter, and the
office is given written notice thereof, or (b) the borrower pays the
obligation under the loan in full prior to the maturity thereof, and
the office is given written notice thereof.



129185.  The office is authorized to terminate any insurance
contract upon joint request by the borrower and the lender and upon
payment of a termination charge that the office determines to be
equitable, taking into consideration the necessity of protecting the
fund. Upon the termination, borrowers and lenders shall be entitled
to the rights, if any, that they would be entitled to under this
chapter if the insurance contract were terminated by payment in full
of the insured loan.