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<br />200700012
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<br />Association"); (ii) any by-laws or other rules or regulations ofthe Conimunity Association; and (iii) other equivalent
<br />documents. Borrower shall promptly pay, when due, all Community Association Dues, Fees, and Assessments.
<br />B. Property. For units in a Condominium Project, the Property includes the unit in, together with an
<br />undivided interest in the common elements of, the Condominium Project, and Borrower's interest in the Community
<br />Association and the uses, proceeds and benefits of Borrower's interest. For POOs, the Property includes, but is not
<br />limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and
<br />facilities, as described in the Constituent Documents, and Borrower's interest in the Community Association and the
<br />uses, benefits and proceeds of Borrower's interest.
<br />C. Property Insurance. So long as the Community Association maintains, with a generally accepted
<br />insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which
<br />provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire,
<br />hazards included within the term "extended coverage," and any other hazards, including, but not limited to,
<br />earthquakes and floods, for which Lender requires insurance, then Borrower's obligation under Section 4 to
<br />maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is
<br />provided by the Community Association policy. Borrower shall give Lender prompt notice of any lapse in required
<br />property insurance coverage provided by the master or blanket .policy. In the event of a distribution of property
<br />insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to common
<br />elements of the Condominium Project or to common areas and facilities of the POO, any proceeds payable to
<br />Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by this Security
<br />Instrument, whether or not then due, with the excess, if any, paid to Borrower, subject to the rights of any lienholder
<br />with rights to insurance proceeds that are superior to Lender's rights.
<br />D. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the
<br />Community Association maintains a public liability insurance policy acceptable in form, amount, and extent of
<br />coverage to Lender.
<br />E. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to
<br />Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit
<br />or of the common elements of the Condominium Project or the common areas and facilities of the PUD, or for any
<br />conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the rights of any
<br />lienholder with rights to such proceeds that are superior to Lender's rights. Such proceeds shall be applied by
<br />Lender to the sums secured by the Security Instrument as provided in Section 9.
<br />F. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior
<br />written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the
<br />Condominium Project or PUD, except for abandonment or termination required by law in the case of substantial
<br />destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any
<br />amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender;
<br />(iii) termination of professional management and assumption of self-management of the Community Association; or
<br />(iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the
<br />Community Association unacceptable to Lender.
<br />G. Remedies. If Borrower does not pay Community Association Dues, Fees, and Assessments when due,
<br />theti"Lender may pay them. Any amblftiHf disburs"edby Lenderlmder this paragraph GshaHbecoiIieadditionarclebt
<br />of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment,
<br />these amounts shall bear interest at the rate applicable to the Debt Instrument from tilIle to time, from the date of
<br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
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<br />NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
<br />21. Acceleration; Remedies. Borrower will be in default if (1) any payment required by the Debt
<br />Instrument or this Security Instrument is not made when it is due; (2) Lender discovers that Borrower or any
<br />co.applicant has committed fraud or made a material misrepresentation in connection with the Loan; (3)
<br />Borrower takes any action or fails to take any action that adversely affects Lender's rights under this
<br />Security Instrument, any of Lender's other security for the Debt Instrument, or any right Lender has in the
<br />Property; or (4) Borrower is an executive officer of Lender and federal law permits or requires immediate
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<br />Iliillii-illllllii.ii.lfiiilllli (5/4/06)
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<br />(page 1 () of 13 pages)
<br />Documents Processed 11-14-2006, 14:19:32
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