<PAGE>   1
                                                                     EXHIBIT 4.2

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THIS SECURITY AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                             THE RYLAND GROUP, INC.

                    9 1/8% SENIOR SUBORDINATED NOTES DUE 2011

CUSIP. 783764AG8

NO. R-1                                                            $150,000,000

        THE RYLAND GROUP, INC., a Maryland corporation (herein called the
"Company," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of One Hundred-Fifty Million
Dollars on June 15, 2011, at the office or agency of the Company referred to
below, and to pay interest thereon on December 15, 2001 and semi-annually
thereafter on June 15 and December 15 in each year, accruing from June 13, 2001,
at the rate of 9 1/8% per annum until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be June 1 or December 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of the Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.
The Company may subsequently issue additional Securities as part of this series
of Securities under the Indenture, but the aggregate principal amount of such
additional Securities may not exceed $150,000,000.





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                                                                               2


        Payment of the principal of, and interest on, this Security will be made
at the office of the Trustee in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Company payment of
interest may be made (i) by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or (ii) by wire
transfer to an account maintained by the Person entitled thereto.

        Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

        IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:  June 13, 2001                     THE RYLAND GROUP, INC.

                                          By:
                                               -------------------------
                                               Gordon A. Milne
                                               Senior Vice President and Chief
                                               Financial Officer


Attest:

------------------------------
Timothy J. Geckle
Secretary


                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

               This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.


                      -------------------------------------
                            SunTrust Bank, as Trustee

                    By:
                        -------------------------------------
                               Authorized Officer



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                                                                               3


                               REVERSE OF SECURITY

        This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of June 12, 2001 (herein called the
"Indenture), between the Company and SunTrust Bank, as Trustee herein called the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, obligations,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. The terms of this Security include the covenants
and terms established by the Certificate of the Chief Executive Officer and
Chief Financial Officer dated June 13, 2001, pursuant to the authority granted
under the Indenture (such terms and covenants shall be referred to herein
collectively with the terms and covenants set out in the Indenture that are
applicable to the Securities of this series as the "Indenture Terms"). Defined
terms used herein that are not otherwise defined shall have the meanings given
such terms in the Indenture Terms.

        This Security is one of the series designated on the face hereof. The
Company may subsequently issue additional Securities as part of this series of
Securities under the Indenture, but the aggregate principal amount of such
additional Securities may not exceed $150,000,000.

        The Securities of this series are subject to redemption upon not less
than 30 days' nor more than 60 days' notice by mail, at any time on or after
June 15, 2006, in whole or in part, at the election of the Company, at the
following redemption prices (expressed as percentages of the principal amount)
plus accrued and unpaid interest, if any, to the date fixed for redemption. The
redemption price, expressed as a percentage of the principal amount is as
follows for the periods shown below:

<TABLE>
<CAPTION>
                                                                Redemption
        Year                                                      Price
        ----                                                   -------------
        <S>                                                    <C>
        June 15, 2006 through June 14, 2007                       104.563%

        June 15, 2007 through June 14, 2008                       103.042%

        June 15, 2008 through June 14, 2009                       101.521%

        June 15, 2009 and thereafter                              100.000%
</TABLE>

        If less than all of the Securities of this series are to be redeemed,
the Trustee will select the Securities of this series to be redeemed on a pro
rata basis. In any case where Securities of this series are registered in the
same name, the Trustee in its discretion may treat the aggregate principal
amount so registered as if it were represented by one Security of such series.
If the Securities of any series to be redeemed consist of Securities having
different Stated Maturities or different rates of interest (or methods of
computing interest), then the Company may, by written notice to the Trustee,
direct that the Securities of such series to be redeemed shall be selected from
among groups of such Securities having specified Stated Maturities or rates of
interest (or methods of computing interest) and the Trustee shall thereafter
select the particular Securities to be redeemed in the manner set forth above
from among the groups of such Securities so specified.

        In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.




<PAGE>   4
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        The Indenture Terms contain provisions for defeasance at any time of the
entire indebtedness of this Security upon compliance with certain conditions set
forth therein.

        The Company may not consolidate with or merge into, or transfer or lease
all or substantially all of its assets as an entirety to another person unless
the person is a corporation, such corporation assumes by a supplemental
indenture all the obligations of the Company under the Securities and the
Indenture and after giving effect to the transaction no Event of Default shall
exist.

        The following constitute Events of Default: default for 30 days in
payment of any interest on any Security when due; default in payment of
principal of (or premium, if any, on) any Security when due; default in
performance, or breach, of any covenant or agreement of the Company in the
Indenture Terms which continues for 60 days after written notice to the Company
by the Trustee or by the Holders of at least 25% in principal amount of the
Securities of this series; the occurrence of any event that results in the
acceleration of any Indebtedness (other than Non-Recourse Indebtedness) of the
Company or any of its Restricted Subsidiaries that has an outstanding principal
amount of $10,000,000 or more in the aggregate; a default in the payment of any
principal or interest in respect of any Indebtedness of the Company or any of
its Restricted Subsidiaries (other than Non-Recourse Indebtedness) that has an
outstanding principal amount of $20,000,000 or more and the continuation of such
default for ten business days from the date such principal or interest payment
became due and payable (after giving effect to any applicable grace period set
forth in the documents governing such Indebtedness) and certain events of
bankruptcy, insolvency or reorganization as provided in the Indenture Terms. If
any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the outstanding Securities of this series may
declare the principal of all of the Securities of that series to be due and
payable immediately. Holders of Securities may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Securities.
Subject to certain limitations, Holders of a majority in principal amount of the
Securities of this series may direct the Trustee in its exercise of any trust or
power conferred upon the Trustee with respect to such Securities. The Trustee
may withhold from Holders of the Securities of this series notice of any
continuing default (except a default in payment of principal or interest) if it
determines that withholding notice is in their interests. The Company must
furnish an annual compliance certificate to the Trustee.

        The Securities of this series are subordinated in right of payment in
the manner and to the extent set forth in the Indenture Terms, to the prior
payment in full of all Senior Debt. Each Holder by accepting a Security of this
series agrees to such subordination and authorizes the Trustee to give it
effect.

        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. Without the consent of any
Holder of Securities, the Indenture or the Securities may be amended to cure any
ambiguity, omission, defect or inconsistency or to make any change that does not
adversely affect the rights of any Holder of Securities in any material respect.
The Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holders of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.






<PAGE>   5
                                                                               5


        No reference herein to the Indenture Terms and no provision of this
Security or of the Indenture Terms shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Security at the times, places and rates, and in the
coin or currency, herein prescribed.

        As provided in the Indenture Terms and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency appointed by the Company in any place where the principal of
and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder thereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

        The Securities of this series are issuable only in registered form
without coupons in denominations of $1,000.00 and any integral multiple thereof.
As provided in the Indenture Terms and subject to certain limitations set forth
therein, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

        No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        A director, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or the Indenture Terms or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Holder of Securities of this
series by accepting a Security waives and releases all such liability. The
waiver and release are part of the consideration for the issuance of the
Securities of this series.

        Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security is overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

        No recourse shall be had for the payment of the principal of (and
premium, if any) or interest on this Security, or for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture Terms or
any indenture supplemental thereto, against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Company or of any
successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

        The Trustee, in its individual or any other capacity, may make loans to,
accept deposits from and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates as if it were not Trustee.

        The Company will furnish to any Holder of the Securities of this series
upon written request and without charge a copy of the Indenture. Requests may be
made to: The Ryland Group, Inc., 24025 Park Sorrento, Suite 400, Calabasas,
California 91302, Attention: Treasurer.