Planned Unit Development Rider

PLANNED UNIT DEVELOPMENT RIDER

THIS PLANNED UNIT DEVELOPMENT RIDER is made this day of

, 19 , and is incorporated into and shall be deemed to amend

and supplement the Mortgage, Deed of Trust or Security Deed ("Security

Instrument") of the same date given by the undersigned ("Borrower") to

secure Borrower's Note ("Note") to

("Lender") of the same date and covering the Property described in the

Security Instrument and located at:

[Property Address]

The Property is a part of a planned unit development ("PUD") known as

[Name of Planned Unit Development]

PUD COVENANTS. In addition to the covenants and agreements made in

the Security Instrument, Borrower and Lender further covenant and agree as

follows:

A. So long as the Owners Association (or equivalent entity holding

title to common areas and facilities), acting as trustee for the

homeowners, maintains, with a generally accepted insurance

carrier, a "master" or "blanket" policy insuring the property

located in the PUD, including all improvements now existing or

hereafter erected on the mortgaged premises, and such policy is

satisfactory to Lender and provides insurance coverage in the

amounts, for the periods, and against the hazards Lender or the

Secretary require, including fire and other hazards included

within the term "extended coverage," and loss by flood, to the

extent required by the Secretary, then: (i) Lender waives the

provision in Paragraph 2 of this Security Instrument for the

payment of the premium for hazard insurance on the Property, and

(ii) Borrower's obligation under Paragraph 3 of this Security

Instrument to maintain hazard insurance coverage on the Property

is deemed satisfied to the extent that the required coverage is

provided by the Owners Association policy. Borrower shall give

Lender prompt notice of any lapse in required hazard insurance

coverage and of any loss occurring from a hazard. In the event

of a distribution of hazard insurance proceeds in lieu of

restoration or repair following a loss to the Property or to

common areas and facilities of the PUD, any proceeds payable to

Borrower are hereby assigned and shall be paid to Lender for

application to the sums secured by this Security Instrument, with

any excess paid to the entity legally entitled thereto.

B.Borrower promises to pay all dues and assessments imposed

pursuant to the legal instruments creating and governing the PUD.

C.If Borrower does not pay PUD dues and assessments when due, then

Lender may pay them. Any amounts disbursed by Lender under this

paragraph C shall become additional debt of Borrower secured by

the 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.

BY SIGNING BELOW, Borrower accepts and agrees to the terms and

provisions contained in this PUD Rider.

___________________________ (SEAL)

Borrower

___________________________ (SEAL)

Borrower

[ADD ANY NECESSARY ACKNOWLEDGEMENT PROVISIONS.]