Condominium Rider

CONDOMINIUM RIDER

THIS CONDOMINIUM 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 includes a unit in, together with an undivided interest in the

common elements of a condominium project known as:

[Name of Condominium Project]

("Condominium Project"). If the owners association or other entity which

acts for the Condominium Project ("Owners Association") holds title to

property for the benefit or use of its members or shareholders, the

Property also includes Borrower's interest in the Owners Association and

the uses, proceeds and benefits of Borrower's interest.

CONDOMINIUM 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 maintains, with a generally

accepted insurance carrier, a "master" or "blanket" policy

insuring all property subject to the condominium documents,

including all improvements now existing or hereafter erected on

the Property, 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, whether to the condominium unit

or to the common elements, 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

Condominium Project.

C.If Borrower does not pay condominium 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 Condominium Rider.

___________________________ (SEAL)

Borrower

___________________________ (SEAL)

Borrower

[ADD ANY NECESSARY ACKNOWLEDGEMENT PROVISIONS.]

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