Multistate Riders and Addenda (Form 3150)

PLANNED UNIT DEVELOPMENT RIDER
THIS PLANNED UNIT DEVELOPMENT RIDER is made this __________ day of _____________________, ______,
and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the
“Security Instrument”) of the same date, given by the undersigned (the “Borrower”) to secure Borrower’s Note to _____________
__________________________________________________________________ (the “Lender”) of the same date and covering
the Property described in the Security Instrument and located at:
_______________________________________________________________________________________________________
[Property Address]
The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain
common areas and facilities, as described in ____________________________________________________________________
_______________________________________________________________________________________________________
___________________________________________________________________________________________________ (the
“Declaration”). The Property is a part of a planned unit development known as ________________________________________
_______________________________________________________________________________________________________
[Name of Planned Unit Development]
(the “PUD”). The Property also includes Borrower’s interest in the homeowners association or equivalent entity owning or
managing the common areas and facilities of the PUD (the “Owners Association”) and the uses, benefits and proceeds of
Borrower’s interest.
PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and
Lender further covenant and agree as follows:
A. PUD Obligations. Borrower shall perform all of Borrower’s obligations under the PUD’s Constituent
Documents. The “Constituent Documents” are the (i) Declaration; (ii) articles of incorporation, trust instrument or any
equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the
Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the
Constituent Documents.
B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance
carrier, a “master” or “blanket” policy insuring the Property which is satisfactory to Lender and which provides insurance
coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within
the term “extended coverage,” and any other hazards, including, but not limited to, earthquakes and floods, for which
Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the
yearly premium installments for property insurance on the Property; and (ii) Borrower’s obligation under Section 5 to
maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is
provided by the Owners Association policy.
What Lender requires as a condition of this waiver can change during the term of the loan.
Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the
master or blanket policy.
In the event of a distribution of property 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. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not
then due, with the excess, if any, paid to Borrower.
C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to ensure that the
Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to
Lender.
D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to
Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and
facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender.
Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11.
MULTISTATE PUD RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
Form 3150 1/01 (page 1 of 2 pages)
E. Lender’s Prior Consent. Borrower shall not, except after notice to Lender and with Lender’s prior written
consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except
for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the
case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the “Constituent
Documents” if the provision is for the express benefit of Lender; (iii) termination of professional management and
assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering
the public liability insurance coverage maintained by the Owners Association unacceptable to Lender.
F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them.
Any amounts disbursed by Lender under this paragraph F 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 and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this PUD Rider.
_____________________________________________________(Seal)
-Borrower
_____________________________________________________(Seal)
-Borrower
MULTISTATE PUD RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
Form 3150 1/01 (page 2 of 2 pages)