Document

DECLARATION AND MASTER DEED LOS ARBOLES CONDOMINIUMS Dallas, Dallas County, Texas wR 183.

3413 f 4 THIS DECLARATION AND MASTER DRED ("Declaration"), made on the date hereinafter set forth, by REGAL FINANCIAL CORPORATION, a Texas corporation, ("Declarant"), is made with reference to the followlng facta: A. Declarant is the owner of certain improved real property located in the City of Dallas, Dallas County , State of Texas, more particularly described on Exhibit "A" arcacheé hereto and by this reference made a part hereof (the “Propert ce on with as the B. The Property presently consists of the land dg on Exhibit “A", two (2) two (2) story residential buyl containing a total of twenty~elght (28) units che with other improvements now or hereatter £& facilities and appurtenances thereto and all personal or mixed, intended fer use or used fi the Property, being hereinafter sometim ref ek "Project" or the “Condominiums".

dominium regime t does herevy B in fee simple of divided interest as Each Unic shall have under the Texas Condominiun establish a plan for che individye estates consisting of the Unic f tenant in common in the Commo De. Declarant 1 Property mutually pr of improvements fo the Owners thereof.

estrictiens under a general plan of all of said Condominiums and stablish che Los Arboles Condominiums as a he Texas Condominium Acc and hereby declares chat be held, conveyed, motcgaged, encumbered, leased, , sold, and improved subjecc to the following dec larag s Shions, covenants, conditions, restrictions and easements, all of abe f8%t the purpose of enhancing and protecting the value and s af>che Project and every part thereot. All of the limications, ¢ sofhditions, restrictions and easements shall constitute covenants

of abe f8%t the purpose of enhancing and protecting the value and s af>che Project and every part thereot. All of the limications, ¢ sofhditions, restrictions and easements shall constitute covenants which 2 ran with the land and shall be perpetually blnding upon Declarant and its gwécessors~in-interest and assigns, and all parcies having of acquiring any right , citle or interest in or to any part of che Projecc.

Declarant doeg condominium regime the Condomini ya 24186 S347 ARTIGLE I.

DEFINITIONS 1.1. “Articles” shall mean and refer to the Articles af Incorporation of the Association as amended from time to time.

1.2. “Assessment” shall mean the assessment made and levied against each Owner and his Unit for that portion of che cost otf maintaining, improving, repairing , opecating and managing the Condominiums and for repair, maint engnce and operation of the Common Elements, including reserves for replacem which is to be paid by each Unit Owner as decermined by the Associ accordance with this Declaration and che Bylaws.

1.3. “Association” shall mean and refer to the LOS ARBOLES its successors and assigns, a non~prefit corporation organized p Texas NonProfit Corporation Act, of which all che Owners 3 The term “Association” shall have the same meaning as thé Co-Owners"” in the Texas Condominium Act.

1.4. “Board” or "Board of Directors” shal governing body of the Association.

1.5. "Bylaws" shall mean and reter co Byla the Associarion as amended from time to time.

1.6. "Common Elements" shall mean cto both che General and Limited Common Elements deseribed hexe>n.

1.7. “Common Expenses" means and Elements by the Board; 1.7.2. Ex pe maintenance, vrepai ° administration and manap enent ,

eseribed hexe>n.

1.7. “Common Expenses" means and Elements by the Board; 1.7.2. Ex pe maintenance, vrepai ° administration and manap enent , placement of the Conmon Elements, as easonable reserve for such purposes; Cument S.

Interest“ means the proporcionate undivided interest in the Comms : whieh 1s appurtenant to each Unit as set forth in this Declares 1.9. "Condominium" or "Unit" shall mean one individual unic, cozether with an undivided interest in che Common Elements. The term “Condominium” or "Unit" shall have the same meaning as the term “apartment” as used in che Texas Condominium Act.

1.10. “Building” shall mean the structure presently erected oa che Property containing two or nore Units.

1.11. "Declarant" shall mean and refer to Regal Financial Corporation, a Texas corporation and its successors-in-interest and assigns, provided such successors or assigns are designated in writing by Declarant as a successor or assign of the rights of Declarant hereunder.

1.12. “Declaration” shall mean and refer to this enabling Declaration, 1.13. "General Common Elements" shall mean and include: 1.13.1) The land in the condominium regime as particularly described on Exhibit “A" hereto.

1.13.2. To the extent not otherwise designated < Common Elements, the foundations, common dividing walls or more Units oar between Units and Common Elements, ¢ bearing walls and columns (including any window therein), girders, beams, slabs, supports, and floors, halls, lobbies, or choroughfar entrances, exits or communication ways and a Building located on the Property.

1.13.3. The grounds, yards,\ Seardens, swimming pool, managerial offices, nail rooms, unagss C ing areas, unassipnea

hfar entrances, exits or communication ways and a Building located on the Property.

1.13.3. The grounds, yards,\ Seardens, swimming pool, managerial offices, nail rooms, unagss C ing areas, unassipnea storage areas, driveways, fenc fervice drives, walks, service easements, recreationa ag, laundry rooms, boiler rooms, mechanical rooms, and ar or storage of maintenance and janitorial equipment gs, Lf any; provided however, Yself ac any time and from time the Association, ta assign Ged further, coincidental with the eas, or after the assignment of all Map attached nereto may be amended ner tor the purpose of designating said storage areas WER hér corresponding to the Unic number, and thereafter su ef areas shall be a Limited Common Elenent to time, until the storage areas to Owns assignment of suc unassigned storage The installacions consisting of che equipment and p central services such as power, electricity, pas, television, alr conditiening, heating, hot water, and are intended to serve more than one Unit.

3.5. Parking spaces noc designated wich «a Unit number eécribed on the Map atcached hereto as unassigned parkiny spaces; provided, however, that Declarant expressly reserves the right for itself until che first meeting of the Association as prescribed in the bylaws and/or the Board of Directors ac any ciwme and from time to time co assigu parking spaces to Owners; and provided further, coincidental with the assignment of any parkiny 24186 5349 space, or after the assignment of all unassigned parking spaces, the Map attached hereto may be amended without the consent of any Owner for the purpose of designating any such parking space with a number corresponding to the Unit number, and thereafter such parking space

attached hereto may be amended without the consent of any Owner for the purpose of designating any such parking space with a number corresponding to the Unit number, and thereafter such parking space shall be a Limited Common Element appurtenant to such Unit, subject to the right to reassign granted herein.

1.13.6. All other structures, facilities, equipment, and property located on the Project necessary or convenient to its existence, maintenance, operation and safety, or normally in commo use.

1.13.7. All other items not described as a Unit or a Common Element.

1.13.8 ALL repairs, replacements, and additioypa the foregoing, 1e1l4. "Institutional Lender" shall mean the Association, Federal Home Lean Mortgage Corporat (government related or otherwise; any bank, ga insurance company, or other similar financial partnership, or corporation holding a recor¢ on any Unit.

gnal Mortgage similar agency loan association, 1.15. "Limited Common ERlenents” for the use of a specified Unit serving exclusively one or more spect¢ of which is reserved to the lawfu 1.15.1. Park designated with a md storage areas once assigned and n accordance with Secrion 1.13.3 and right to reassign granted therein, 1.15.2. Dalconies, entrances, stairways and storage areas, if any, ieated on the Map as Limited Conmon Elements cffied Unit or Units; whe utilities, sewers, power, water, pas, electricity lines running through the wails, ceiling or floor of used only to service such Unic.

5.4. Such portions of che perimeter walls, Eloors, ce gs’, doors, windows, and all associated fixtures and structures therein, as lie outside the Unit boundaries but thac serve only such Unit 1.16. “Map,” or “Condominium Plan" shall mean and cferee Co the

, doors, windows, and all associated fixtures and structures therein, as lie outside the Unit boundaries but thac serve only such Unit 1.16. “Map,” or “Condominium Plan" shall mean and cferee Co the engineering survey of the Propercy which is legally described {no Exhibic "A", said Map being filed herewith as Exhiblts "B-l" chrough “B-32" and by cehis reference made a part hereof, as the same may be amended from time to time ag herein provided. The Map sets forth, among other things, a survey ot the Property showing the location of the Buildings, a general description and plat of each Unit showing its square footage, Building Location, floor and Unit number and a general description of the Common Klemencs.

The Map contains the certificate of a registered professional engineer or registered public surveyor that the Map substantially depicts che location of the Buildings, the Units, the Unit sumbers, the dimensions of the Units and that such Map was prepared subsequent to the complerion of the improvefidyts.

In interpreting the Map, the existing physical boundaries of each Up a be conclusively presumed to be its boundaries. Declarant reserves u the right, until the first meeting of the Association as prescp Bylaws, to amend the Map and amendments thereto to conform same location of any of the improvements, to establish, vacaté easements, access road easements, parking spaces, to establiet Common Elements net theretofore established, to establ Common Elements as Limited Gommon Elements, to sh chi Declarant may make in accordance with the terms of ec but not limited to, Section 2.3.

1.17. “Member” shall mean and refer to a pers d to membership in the Association as provided herein.

1.18. “Mortgage” or “Deed of Trust" 5 ban a lien interest in a Unic

ut not limited to, Section 2.3.

1.17. “Member” shall mean and refer to a pers d to membership in the Association as provided herein.

1.18. “Mortgage” or “Deed of Trust" 5 ban a lien interest in a Unic given to @ creditor as securiry a reps Q P a loan made to the Unie Owner, said interest to be nee nstrument duly and properly recorded in the Deed of Trust le ounty, Texas.

1.19. "“Mortgagee“ shall mea ficiary or a holder of any first lien Deed of Trust or a7, 1.20. "Owner" or " ean and refer to the record holder or holders of fee simpl¢ 4% Unit in the Project, but shall exclude Persons having any in ¢ a’Unit merely as securicy for the performance of any obligation.

1.21. “Perso anh a natural person, a corporation, a partnership, a trustee, or other Documents" means and includes chis Declaration and the ations for the Members, as the same may be established or Pexas Condominium Act” or “Act" shall mean Article 130la of the eed Civil Statutes, enacted in 1963, which permits the creation of condominium regimes, ag same is amended or supplemented in any successor at acu e.

@ q ARTICLE II.

DIVISION OF PROJECT AND CREATION OF PROPERTY RIGHTS 2.1. Division of Project. The Project is hereby divided into the following freehold estates and areas: On tie Map attached hereto, the Buildings in the Project are shown and the Units located therein are numbered as shown on the Map.

2.1.1. Units. In determining dimensione of, and = are contained within each Unit, the enclosed space within a Unit shall b measured from interior finished, unpainted surfaces of the peri walls, floors and ceilings, and the Unit shall include che aj so encompassed. Included in each Unit, without limitation, ¢ any finishing materials applied or affixed to the interiox

rfaces of the peri walls, floors and ceilings, and the Unit shall include che aj so encompassed. Included in each Unit, without limitation, ¢ any finishing materials applied or affixed to the interiox of the common exterior walls or interior walls, floors (such as, but without limitation, paint wallpaper , floor covering, carpet and tile). The boundaries be the interior surface of the perimeter wal a part of each Unit and shall not be a part 4g The Unit does not include “Common Elements” expressly stipulated, and each and ev 5 heirg, executors, administrators, succes and assigns hereby agree that the square footage, size and dimeng each Unit, as set out and shown in this Declaration or ondominium Plan are approximate and are shown for se Declarant does not warrant, actually contains the area, 84 Condominium Plan thereof.

interest therein, has inspect and examine {& guarantee that any Unit d or dimensions shown by che ser and Owner of a Unit, or sed by him prior to the purchase thereof, and agreeg ia purchased as actually and physically existi chaser of a Unit hereby expressly waives any claim o E htێh he may have against the Declarant or other seller of sue Condominium Plan. Each Unit is subject co such otrusions as are contained in the Building, exist or may be later caused or created in any as it is sho Gucroac hmney B af boundaries of a Unit, whether im ites original stare Med in substantial accordance with the original plans boundaries expressed in the deed or Condominium Pian, es of settling, rising or lateral movemenc of the Buildings and fegardless of minor variance between boundaries shown on che Condominium Plan or deed, and those of the Buildings.

2.1.2. Common Elenents. The remaining portion of the

al movemenc of the Buildings and fegardless of minor variance between boundaries shown on che Condominium Plan or deed, and those of the Buildings.

2.1.2. Common Elenents. The remaining portion of the Property, referred to herein as "Common Elements”, shall include all 186 9352 of the elements set forth in Section 1.6. Each Unit Owner shall have as an appurtenance to his Unit, an undivided percentage interest in the Common Elements, based upon che approximate size of his Unit in relation to the other, as set forth in Exhibic "B-32" atcached hereto and by this reference made a part hereof. The ownership of each Condominium shall include a Unie and such undivided interest in the Common Blements. The Gommon Interest appurcenant to each Unit 1s declared to be permanent in character and cannot be altered once sold by Declarant without the consent of all the Owners of said Unics and the Mortgagees of such Owners as expressed in an amended Declaration except as provided in Sections 2.3 and 9.5.3.2 Such Common Int eres cannot be separated from the Unit co which ic is appurtenant.

Unit Owner shall have a non-exclusive right to use che General Elements in accordance with the purposes for which they are without hindering the exercise of or encroaching upon the any other Unit Owners. Notwithstanding the transfer of the of the Common Elements to the Owners as cenants 1 Common Elements for common driveway purpogeg cE nage and encroachment purposes and for ingress to and hereon and/or aflaranc further or its designated agents actions, exceptions and he Condominium Project e Association in order for the performance of necessary repé reserves unto itself and to the Associa the right ta establish easements, exclusions consistent with the owner and for the bese interest of tk

ssociation in order for the performance of necessary repé reserves unto itself and to the Associa the right ta establish easements, exclusions consistent with the owner and for the bese interest of tk to serve the entire Condominium j The Limited Common Elements e Map, as amended from cime to to a parcicular Unit or Units.

er in the Limited Common Elements Wve easement to use for vehicle parking or spaces specifically originally Yeclarant or the Association to the Owner his Unit, if any; (2) an exclusive easement 2.1.3. Limited Common shall be identified hey@ time, and designated fad’ épp The rights of any shall consist of ( purposes, the pa to use such other areas and facilities as may be designated in chis Declaration and on che Map, as same may be amended from rime cto time.

34186 9353 2.2. No Separate Conveyance of Undivided Interests. The foregoing interests and exclusive easements are hereby established and are to be conveyed only with the respective Units, and cannot be changed, except as herein set forthe Declarant and each Owner covenant and agree that’ the undivided interests in the Common Elements, the exclusive easements of the Limited Cownon Elements, and the fee title to the respecrive Units conveyed therewith, shall not be separated or separately conveyed, and each such undivided interest and exclusive easement shall be deemed to be conveyed or encumbered with its respective Unit even though the description in che instrument of conveyance or encumbrance may refer only to the fee citle rq t Unit.

2.3. Partition Prohibited. The Common Elements shall remain set forth above so long as suitable for a condominium regime preserve the rights of the Owners with respect to the opera of the Project. Judicial partition by sale of a singte i

Elements shall remain set forth above so long as suitable for a condominium regime preserve the rights of the Owners with respect to the opera of the Project. Judicial partition by sale of a singte i more persons and division ef the sale proceeds is partition of title to a single Unit is prohlb provisions of this Section 2.3, until all of Declarant to a third party, Declarant has the right 2.3.1. physically combine the space Within one Unit with the space within one or more adjoining Unies Interest of the Units so combined ap Map ta include said changes; 2.3-2e physically combin the space within one Unit wl more adjoining Units, te pede d so combined and to apg a changes ; of a combination of parts of parts of space within one or the Common Interesc of the Units dracion and Map co include said 203.36 parc partitioned or Cy and to amend_the QecAsa fy or remodel one or more Units into larger or any combination chereof, ta construce, alter, senove any walls or do any other work which may be ro“complete such modification or remodeling, to redetermine Interest of the Units altered, if any, and co amend the on to include said changes.

baivide any Unit owned by Declarant inco ements, or a combinacion of Units and et ermine the Common Interest of those Units so ded, and, if applicable, of all other Units, ation and Map co iuclude said changes; and @. & ARTICLE III.

ASSOCIATION, ADHINISTRATION , MENBERSHIP AND VOLING RIGHTS 3-1. Association to Manage Common Elements. The management of the Common Elements shall be vested in the Association in accordance with the terms of this Declaration and the Bylaws. A copy of the Bylaws which have been duly adopted by the Board of Directors of the Assoclation is attached herero as

in the Association in accordance with the terms of this Declaration and the Bylaws. A copy of the Bylaws which have been duly adopted by the Board of Directors of the Assoclation is attached herero as Exhibir "C" and incorporated herein be reference for all purposes; and all Owners of the Units and all holders of liens thereon shall be bound rhé The Owners of all of the Units covenant and agree that che administrat the Project ghall be in accordance with the provisions of this De the Articles and the Bylaws, subject to the standards set fo Declaration and all applicable laws, regulations and ording governmental or quasi-governmental body or agency having jurisdh Project or the Association, as same may be amended from cime shall Pn Member Such time as his ¢ his menbership in 3.2. Membership. Any Person, upon becoming the automatically be a Member of the Association, thereof in accordance with the Articles and the By ownership of said Unit ceases for any reason, at the Assoctation shall automatically cease.

the Assoclation shall noc be cept upon the transfer of ,» and then only to che new r is void. In che event the 3.3. Transferred Membership. Membershi transferred, pledged or alienated in any,-we ownership of the Unit to which it is 3g Owner. Any attempt to make a prohdbkr eq Owner of any Unic should fail or refds in his name to the purchaser of hi to record the transfer upon its b t Association shall have the right Owners of each Unit shall be entitled hall equal the Common Interest assigned set forth in Exhibit “B-32" hereto.

3.4. Voting Rights.

to one (1) vote, the v to said Owner's or Ownerg 3.5. 1@ affairs of the Association shail be managed Board of Dire s h has been established and wiieh shall conduct ARTICLE IV.

MAINTENANCE AND ASSESSMENTS

one (1) vote, the v to said Owner's or Ownerg 3.5. 1@ affairs of the Association shail be managed Board of Dire s h has been established and wiieh shall conduct ARTICLE IV.

MAINTENANCE AND ASSESSMENTS t Establishing Fund. To insure that the Owners’ Association e funds cto meet unforeseen expenditures or to purchase any guipment or services, the Declarant will establish a working at least equal to two (2) months estimated common charges for each Unit. Any amounts paid into this fund should not be considered as advance payments of regular assessments» ach Unic's share of the working capital fund should be collecced at the time che sale of the Unit is closed and then should be transferred to the Owners' Association for deposic to a segregated fund. Within sixty (60) days after closing has been held for the firet Unit, the Declarant will pay each unsold Unit's share ot the working capital fund to the Owners' Association. The Declarant will then reimburse itself for this payment from the funds collected at closing when che unsold Units are sold.

4.2. Personal Obligation of Assesaments. Declarant, for each Unit owned within the Project , hereby covenants, and each Owner of any Unit by acceptance of a deed therefor, whether orc not it shall be so expressed'in such deed, is deemed, as a part of the purchase money consideration for such deed and conveyance, to covenant and agree to pay to the Association: (1) regular monthly Assessments or charges, and (2) special Aasessments for capital improvements and unexpected expenses, such Assessments to be established ¥& collected as provided herein, in the Bylaws and in the Rules and Regutagious of the Associations No Owner of a Unit may exempt himself from liat his contribution toward the Common Expenses by waiver of the use

as provided herein, in the Bylaws and in the Rules and Regutagious of the Associations No Owner of a Unit may exempt himself from liat his contribution toward the Common Expenses by waiver of the use 4.3. Purposes of Assessments. The Assessments levied & Agsqciation shall be used exclusively to promote the Yecreat Nety and welfare of all the residents in the entire Projey prayement and e Project. The Board may use said Assessments for said pu cluding, without limitation, providing for the enforcement of pyovisions of this Declaration, the Bylaws and the Rules and p The decision of the Board with respect there in good faith. Annual Assessments shall ipoluwe qn adequate reserve fund for waintenance, repairs and replacement off 4 bon Elemeuts. The Limited having exclusive use thereof shall Assessments for the repair or maint s reof except as otherwise provided > limited to, Section 5.2 hereof.

Ad Creation of Lien. All Owners shall e—ttiposed by the Board of Directors of the of the estimaced funds required from shall be set forth in a budgec adopted by ds ‘ be assessed against each Owner in proportion to the Common Inte af\steh Owner as set forth herein, said figure to be 4.4. Regular Monthly be obligated to pay the off to the ne | dy figure and shall be secured by a lien against said Unit , syhje A provisions hereof. DPeclarant hereby reserves and assigns to the Mssoc . without recourse, a vendor's lien against each Unic co f of any regular or special Assessment which may be levied 3 erms hereof, and the expenses incurred in connection with the enfo e ereof, including, without limitacion, interest at the rate ection 4.6, costs and reasonable atcorneys' fees. Sald liens may be enforced by appropriate judicial proceedings, and the amounts secured

o e ereof, including, without limitacion, interest at the rate ection 4.6, costs and reasonable atcorneys' fees. Sald liens may be enforced by appropriate judicial proceedings, and the amounts secured thereby shall be the obligation of and chargeable to the Owner in defaulc.

Any such lien shall be and is subordinate and inferior only to the following: (1) assessments, liens and charges in favor of the State of Texas and any political subdivision thereof for taxes past due and unpald on such Unit; and (11) amounts due under any first lien Uortgage instruments duly recorded prior to the recordation of any lien assessment as provided in Section 4.6.

10 . e 4.5s Special Assessments. In addition to the regular monthly Assessments authorized above, the Board may levy, in any year, one or more Special Assessments applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or teplacement of any capital improvements upon the Comuon Elements, including fixtures and personal property related Chereto, or to defray any unanticipated or underestimated expense or other action of undercaking normally covered by a regular Assessment (and, where necessary, for taxes assessed againsr the Common Elements or the Project as a whole). Said Special Assessmeuts shall be assessed against each Owner in proportion to the Common Interest of such Owner as set forth herein. Special Assessments may also be levied against \an individual Unit and its Owner to reimburse the Association for costs ine in bringing that Owner and his Unit into compliance with the provite this Declaration and the Bylaws including actual attorneys’ fees/are Said Special Assessments may be subject to such limitations as ay the Bylaws.

t Owner and his Unit into compliance with the provite this Declaration and the Bylaws including actual attorneys’ fees/are Said Special Assessments may be subject to such limitations as ay the Bylaws.

4.6. Assessment Lien. All sums assessed buc unpaid Assessments chargeable to any Unit, including interes rate permitted by law per annum from the date suc said Assessments are paid, subject to the provi interest contracted for, charged or received ta applicable law, shall constitute a lien on,guch liens and encumbrances, except as provid Directors or a managing agent appointed by (but shall not be required to) prepare amount of such unpaid indebt edness, che description of the Unit. Such not 1 he the Board of Directors or by one of ¢ representative of the Managing Age County Clerk of Dallas Coupty, foreclosure of the defaul 0 are due until limiting the mun permicted by frior to all other ie 4.4. ‘The Board of Board ("Managing Agent") may notice setting forth the e Gwier of the Unit and a fe recorded in the office of the ch iien may be enforced by the nit by the Association in like manner MuYsequent to the recording of a norice Oceeding, the Owner shall be required co gtPerpeys’ fees incurred in connection with the she event of any foreclosure proceeding, all 4ctorneys' fees incurred in connection with any such foreclosure Ors The Owner of che Unit being foreclosed shall be provided for above.

pay the costs, expens filing of the lien, Isociation the monthly Agaessment for che Unir during Br sure, and che Association shall be entitled Lo the 8 ry to collect the same. The Association shall have che Unit at foreclosure or other legal gale and to acquire and e, vote the votes appurtenant to, convey or otherwise deal Any Mortgagee holding a lien on a Unit may pay, but shall nor

ation shall have che Unit at foreclosure or other legal gale and to acquire and e, vote the votes appurtenant to, convey or otherwise deal Any Mortgagee holding a lien on a Unit may pay, but shall nor o pay, any unpaid Assessments owing with respect to such Unie , fhent shall not be deemed a waiver of the Owner's defaule by ecicher ion or such MortgageeThe amount of the Common hxpenses assessed againse each Unic shall also be a debt of the Owner thereof at the time the Assessment is made. Suit co recover a money judgment for unpaid Common Expenses shall be maintainable without foreclosing or waiving Che lien securing Samer 1i 24186 9397 Each Owner, by acceptance of a deed to a Unit, hereby expressly vests in the Association or its agents the right and power to bring all actions against such Owner personally for the collection of such charges as a debc, and to enforce the aforesaid liens by all methods available for the enforcement of such liens, including non~judicial foreclosure pursuant Ce Article 3810 of the Texas Revised Civil Statutes, and such Owner hereby expressly grants to Che Association the private power of sale in connection with said liens. The Association may also temporarily suspend the Association membership rights of any Owner who is in defaule in paynent of any Assessment in accordance with the Bylaws.

4e7. Date of Commencement of Assessment; Due Dates. The regula Assessments provided for herein shall commence as to all Units in % on the first day of the month following the conveyance by deed 4 Unit in the Project. ‘Thereafcer, due dates of regular month shall be the first day of each and every subsequent calendar Az ! fied by the Association in the notice of such special Asfep Jelivered by the

t in the Project. ‘Thereafcer, due dates of regular month shall be the first day of each and every subsequent calendar Az ! fied by the Association in the notice of such special Asfep Jelivered by the Association to each Owner; provided, however, such Bhall in no event be less than thircy (30) days subsequent tot otice.

Sale or transfer of any er, the sale or transfer of by deed or other transter such Assessments as to the Mle or tranefer (Cexcept for sevordation of such Mortgage). No h Unic from Jiabllicy for any from the lien thereof. Wnen any fa Unit as a result of foreclosure of Onveyance in lieu thereof, such Mortgayee Maid dues or charges of the Association 4.8. ‘Transfer of Unit by Sale or Forec Unit shall not affect the Assessment lien any Unit pursuant to foreclosure of a Mo jn lieu thereof, shall extinguish e payments which become due prior t Assessments which became due prio such sale or transfer shall Assessments thereafter be Morcgegee of a Mortgage op aquisition of title to such Unit by such Repaid es or charges shall be deemed to be Cowmon Expenses oY the Units including the Unit acquired by such ary conveyance of a Unic (other than a deed or pee in lieu of foreclosure), the grantee of the same and severally liable with the grantor for all unpaid Assesstent’*’ Kssociation against the latter for his share of the Common Mortgagee. Such u collectible fron Mort gagee- I conveyance Cq EX, Ss Pe time of the grant or conveyance, without prejudice to the gars yt “to recover from the grantor Che amounts paid by the yrant ee there gwever, any such grantee, upon payment Co the Associacion of a reasom ée not to exceed Twenty-Five and no/100 Dollars ($25.00) and upon written “Yequest, shall be encitled to a statement trom che Association,

any such grantee, upon payment Co the Associacion of a reasom ée not to exceed Twenty-Five and no/100 Dollars ($25.00) and upon written “Yequest, shall be encitled to a statement trom che Association, setting forth the amount of any unpaid Assessments then due and owing to the Assoctation with respect to the Unit being purchased, and such grantee shali not be liable for, nor shall the Unic conveyed be subject to a lien for, any unpaid Assessments made by the Associarion againse the grantor in excess of the amount set forth in the statement and applicable to a period of cime prior to the date of such statement; provided, however, the grantee shall be liable for any such Assessments becoming due after the date of any such statemenr.

12 4186 $358 i i ett ea et titrate ientieneteas ER eo 9 a nas 4.9. Separate Taxation. Each Unit, together with its Common Interest, shall be deemed to be a separate and distinct entity for the purposes of the assessment and collection of taxes, assessments and other charges of this state, or of any political subdivision, special improvement district or any other taxing or assessing authoritys The lien for taxes assessed to any Unit shall be confined to that Unit. No forfeiture or sale of any Unit shall divest or in any way affect title to any other Unit. In the event that such taxes or assessments for any year are not separately assessed to each Unit buc rather are assessed on the Project as a whole, then each Owner shall pay his proportionate share thereof in accordance with his Cownon Interest a said event, such taxes or assessments shall be a Common Expense.

necessary, a special Assessment or Assessments may be levied against in an amount equal to said taxes, to be paid thirty (30) days prig date thereof, ARTICLE V«

assessments shall be a Common Expense.

necessary, a special Assessment or Assessments may be levied against in an amount equal to said taxes, to be paid thirty (30) days prig date thereof, ARTICLE V« DUTIES AND POWERS GF THE ASSOCIATION d ets envmnerat ed erein, and without 5.1. Duties and Powers. In addition to the in the Bylaws and the Articles, or elsewhere prov limiting the generality thereof, the Association ¢ 5.1.1. Maintain, repair, replace all of the Common Elements and al furnishings, equipment and landscaping may be acquired by the Assgceila yood condition. This obligation shall not extend fo oy faciliry of the Common Elements required to be waintain dividual Qwner under this Declaration (specifically inc not limited to, Sections 5.2, 563 and 9.7) or the Byl store, rate and manage acilities, improvements, and all property chac fons ot chis Declaration by yout limitation, the expenditure of enployment of legal counsel and the appropriate means, d funds of the Assqd Scle3s a 8 required by tinracton or as the Board deems necessary or desirable of , the g the purposes of, and protecting the interests and its Membera, Grant and reserve easements where necessaty or utilities and utility facilities over the Common hnd Units to serve the Common Elements and che Units and Map to show sane.

5.1.5. Have che authoricy co employ a manager or other persons and to contract with independent contractors or managing agents to perform all ar any part of the duties and responsibiiities of the 13 (4186 5359 Association, subject to the Bylaws and restrictions imposed by any governnental or quasi-governmental body or agency having jurisdiction over or interest in the Project, specifically including, but noc limited to the Federal National Mortgage Association and the Federal

ernnental or quasi-governmental body or agency having jurisdiction over or interest in the Project, specifically including, but noc limited to the Federal National Mortgage Association and the Federal Home J.oan Mortgage Corporation. Notwithstanding anything to the contrary contained herein or in the Bylaws, the Association shall not terminate professional management of che Project and assume self management thereof without the prior written approval of all Institutional Lenders (based upon one (1) vote for each Mortgage owned).

5.1.6. Keep or cause to be kept records with detailed acco of the income, receipts and expenditures affecting the Proje ite administration, specifying the maintenance and repair ef with regard to the Common Elements and any other expenses inéur or on behalf of the Project or Association. The recopde.?

shall be available for inspection by all Owners and Units during regular business hours of the Associg set and announced for general knowledge. All in accordance with generally accepted accounting be audited at least once a year by an independe the auditor's reports shall be made availab OQwners and Mortgagees upon written request and tl aymen he reasonable reproduction costs of such report as lished by the Board or Managing Agent within ninery (90) days wing che end of any fiscal year of the Association.

» Copies af inconsistent with this elating co the use of Che eon, and the conduce of Owners fece to the Project and other 5.1.7. Adopt reasonable <% Declaration, the Articles, or the Common Blements and all facil £ and thelr tenants and st 9 th¢ nes Owners.

Qj by Association. Tne Association shall Prefect as provided in che Bylaws, The gh for maintenance and repair shall not extend pairs oc replacements arising out of or caused by

nd st 9 th¢ nes Owners.

Qj by Association. Tne Association shall Prefect as provided in che Bylaws, The gh for maintenance and repair shall not extend pairs oc replacements arising out of or caused by a or neglect of any Owner, or his guests, Cenants fost 2 expense of repair or replacement of a Unit exterior or of any po £ Common Elements resulting from such excluded itens shall be t 5 sibility of such Qwner whe {or whose guests, tenancs or invit edg a po willfully damages such excluded items, The Association may cause g epairs and replacements to be made at such Owner’s sole cost 1£ said Owner shall fail co pay for such repairs or 5.2. Maintenance pravide maint enance responsibility of the fi to the cost and expense ang rep 3 hpon demand, the cost thereot (plus interest from che dace of payme 5 3 the maximum legal rate) shall be added to che Assessments chargeate-fto such Unit and shall be payable to the Assoclarion by the Owner of such Unit upon demand.

14 —_ 5.3. Association Easements and Access to Units. For the purpose of performing the maintenance, repair or replacement authorized by this Arcicle or for any other purpose reasonably related to the performance by the Board of its responsibilities under this Declaration, the Association (and its agents and employees) shall have a non-exclusive easement over and onto all portions of the Common Elements, and shall also have the right, afcer reasonable notice to the Owner, and at reasonable hours, to enter any Unit for such purposes and to enter any Unit without notice at any time in the event of an emergency.

i Should any Owner change any Lock on any entrance to his Unit, such Owner shall immediately provide to the Board a key to the new lock. Damage ta

hout notice at any time in the event of an emergency.

i Should any Owner change any Lock on any entrance to his Unit, such Owner shall immediately provide to the Board a key to the new lock. Damage ta interior or any part of a Unit or Units resulting from the maintgna repair, emergency repair or replacement of any of the Common Elements result of emergency repairs within another Unit at the instap Association shall be a Common Expense of all of the Owners; provide that if such damage is the result of the neglect, misuse or neg Owner, then such Owner shall be responsible and liable far A All damaged improvements shall be restored to substantially omit ion of such improvements prior to damage. All mg replacements as to the General Common Elements, outside of Units (unless required to be maincaint under this Declaration or necessitated by the negled an Owner or his guests, tenants or invitees, in wnlt be charged to such Owner) shall be the Commor enses “v individual Owner ence or mwnisuse by guch expense shall lL the Owners.

ARTICLE ¥ ULILIT 6.1. Owner's Rights and scourge e and duties of the Owners of Units within the Project with respe es shall be as follows: 6.1.1. Each Owne ha pa of his own utilities which are separately metered ang Unit by the respective ucilely : to each Unit by the Association.

ed co each Unit by che Association Assessments hereunder and shall be ef in Section 4.3. Iikility expenses which are not metered/or 3 pred and separately billed shall be parc of the Common Bt each Owner shall pay his pro-rata share thereof as hAa&cage of other Common Expenses.

REV er sanitary sewer, water, electric, gas, ding, or telephone lines or connections, heating or ng conduics, ducts, or flues {euch items being follectively called che “connections") are located or

s.

REV er sanitary sewer, water, electric, gas, ding, or telephone lines or connections, heating or ng conduics, ducts, or flues {euch items being follectively called che “connections") are located or within the Project, which connections, or any portion g lie in of upon more than one Unit, Declarant reserves for the @ and benefit of the Association the right and an easenent Co the full extent reasonably necessary therefor, to enter upon the Units or to have the utility companies enter upan the Units in or upon which said connections, or any portion thereof life, to repair, replace and generally maintain sald connections as and = when reasonably necessary; provided, however, the exercise of such 15 34186 3361 APTN be eee 2 Rama easement rights shall be in a manner reasonably calculated to cause as minimal interference with the continued use and occupancy of the Units so affected by the Owners thereot, while still adequately serving the purposes for which they are granted.

6.1.3. Whenever connections are located or installed within the Project , which connections serve more than one Unit, the Owner of each Unit served by said cannections shall be entitled to the full use and enjoyment of such portions of said connections as service his Unit « 6.2. Easement for Utilities and Maintenance. Easements over the Property for the installation, repair, and maintenance of ga water, electric, gas, and telephone lines and facilities, heay conditioning facilities, cable or master television antenna 114 facilities, walkways, and landscaping as are shown on the Me hereafter required to serve the Property, are hereby reservé the use and benefit of the Association, together w e transfer the same.

6.3. Association's Duties. The Association ll tain all utilicy

e Me hereafter required to serve the Property, are hereby reservé the use and benefit of the Association, together w e transfer the same.

6.3. Association's Duties. The Association ll tain all utilicy installations lacated in the Common Elementg exce ose installations maintained by utility companies, publi civac®;—“or municipal. The Association shall pay all charges for uriliti pplied to the Projecr except those metered or submetered and charged se o -Ehe Units.

LE USE R In addicion to all of ghe n contained herein, the use of the Project and each Unit cher iQ jec o the following: o Unit shall be occupled and used except ers, their tenants, and social guests, and conducted therein; provided, however, that Units in the Projecc owned by Declaranc for a display and sales office until the Last Unic in No more than three (3) individuals may occupy a no more than two (2) individuals may occupy a one pruvided, however, that in determining the number of den, if any, shall be counted as a bedroon.

7.1. Use of Indiv for residential purpose no trade or business Declarant may use a model home site or, the entire Project two (2) bedro (1) bedroom s.» No noxious, illegal, or offensive activities shall be any Unic or in any part of the Project, nor shall anyching be done ‘here hich may be or may become an annoyance or a nuisance ta, or which ma any way interfere with, the quiet enjoyment of each of the Owners of his respective Unit, or which shall in any way increase che rate of insurance for the Project, or cause any insurance policy to be cancelled or cause a refusal to renew the same, or which will impair the gstruccural inteprity of any Building.

16 34186 $362 7.3. Vehicle Restrictions. No traller, camper, mobile home, recreational

e cancelled or cause a refusal to renew the same, or which will impair the gstruccural inteprity of any Building.

16 34186 $362 7.3. Vehicle Restrictions. No traller, camper, mobile home, recreational vehicle, commercial vehicle, truck (other than standard size pickup truck), inoperable automobile, boat or similar eyuipment shall be permitted to remain upon any area within the Project, other than temporarily (for purposes of loading and unloading of passengers or personal property), unless in an area specifically designated for such purpose by the Board. Commercial vehicles shall not tnelude sedans or standard size pickup trucks which are used both for business and personal use, provided that any signs or markings of a commercial nature an such vehicles shall be unobtrusive and inoffensive as determined by the Board. No noisy or smoky vehicles shall be operated the Project. No off-road unlicensed motor vehicles shall be maintain operated upon the Project, except as may be reasonably necessar, execution of the rights or duties of the Association under this DecJa 7-4. Signs» Declarant may place signs in or around the and use the Common Elements for sales purposes until thee in the entire Project is sold. Qwners other than Declarant , howe dr & prohibit ed from placing “for sale," “for rent” of any other sig Elements or displaying signs to the public view on the Project.

7.5. Animals. No animals or birds of any ki kept in any Unit, or any portion of the Rfdect Bylaws or in the rules and regulations adopt® time to time.

te as permitt ed in the the Board and published from sh, trash and garbage shall not be allowed to accumulate not be kept except in sanitary 7.6. Garbage and Refuse DEBTOR, be regularly renoved from the Proje z thereon. Trash, garbage and othe

shed from sh, trash and garbage shall not be allowed to accumulate not be kept except in sanitary 7.6. Garbage and Refuse DEBTOR, be regularly renoved from the Proje z thereon. Trash, garbage and othe containers in accordance with the the rules and regulations adopt ed by the Board and publishe All equipment, garbage cans, woodpiles, or storage pils / oot screened and concealed from view of ‘nMennas. No alteration cto or modification of a central radio or tet antenna system or cable television system, to construct, use perate his own external radio, television antenna, or other elect roni ; ithout the prior written consent of the Board. No Citizens Hand “ or other transmission device shall be permitted on the Pro} ne prior written consent of the Board.

Lease. The respective Units shall nor be rented by the or transient or hotel purposes, which shall be defined as renta Ay period less than thirty (30) days, nor shall less than an be rented or leased. Subject to the foregoing restrictions and to those of Section 7.9 hereof, the Owners of the respective Units shall have the absolute right to lease the Units provided that the lease is in writing and is made subject te the covenants, conditions, easements, reacrictions, limications, liens for Common Expenses and uses contained in this beclaration and the Bylaws, and any rules and regulations adopted by the Board and 17 3%186 3363 7-3. Vehicle Restrictions. No trailer, camper, mobile home, recreational vehicle, commercial vebicle, truck (other than standard gize pickup truck), inoperable automobile, beat or similar equipment shall be permitted to remain upon any area within the Project, other than temporarily (for purposes of

, truck (other than standard gize pickup truck), inoperable automobile, beat or similar equipment shall be permitted to remain upon any area within the Project, other than temporarily (for purposes of loading and unloading of passengers or personal property), unless in an area specifically designated for such purpose by the Board. Commercial vehicles shall not include sedans or standard size pickup trucks which are used both for business and personal use, provided that any signs or markings of a commercial nature on such vehicles shall be unobsrrusive and inoffensive as determined by Lhe Board. No noisy or smoky vehicles shall be operated on the Project. No off-road unlicensed motor vehicles shall be maintaing operated upon the Project, excepr as may be reasonably necessary cy execution of the rights or duties of che Association under this Declapatt 7.4 Signs. Declarant may place signs in or around the Cof and usé the Gommon Elements for sales purposes until the la entire Project is sold. Owners other than Declarant, howeve from placing “for sale", “for rent” or any other signs in g Elements or displaying signs to the public view on a f the Project.

7.5. Animals. No animals or birds of any ki kept in any Unit, or any portion of the Project Bylaws or in the rules and regulations ado rime to time.

7.6. Garbage and Refuse Disposals.

be regularly removed from the Proj thereon. Trash, garbage and other containers in accordance with the B by the Board and published from woodpiles, or storage ae other Units, streets, and “hs é qe tules and regulations adopted Bime. All equipuwent , garbage cans, screened and concealed from view of PILE B+ 7.7 Radio and Telfé central radio or tele Renpas» No alteration to or modification of a antenna systen or cable television system,

quipuwent , garbage cans, screened and concealed from view of PILE B+ 7.7 Radio and Telfé central radio or tele Renpas» No alteration to or modification of a antenna systen or cable television system, whichever is applicabl® be permitted, and no Owner shall be permitted his own external radio, television antenna, or other electronic Qe out the prior written consent of che Board. No Citizens Band tyra weeny or other transmission device shall be permitted on brivor consent of the Board.

base. The respective Units shall noc be rented by the pr transient or hotel purposes, which shall be defined as re hy “period less than chirty (30) days, nor shall less than an enti g reuted of leased. Subject to the foregoing restrictions and ta those & ion 7.9 hereof, the Owners of the respective Unirs shall have che absoluce Fight to lease the Units provided that the lease is in writing and is made subject to the covenants, conditions, easements, restrictions, limitations, liens for Common Expenses and uses contained in toils vVeclaration and the Bylaws, and any rules and regulations adopted by tne Board and 18 $4186 S364 published from time to time. Notwithstanding any of the foregoing, the right of Declarant to rent or lease Units until their initial transfer cro any third party or parties is hereby specifically reserved, provided, however, any lease entered into by Declarant shall be subject to che terms and conditions of chis Section 7.8.

7.9. Mortgaging a Unit ~ Priority. Any Owner shall have the right from time to time to mortgage or encumber his interest by deed of trust, mortgage or other security instrument. <A first Mortgage shall be one which has firac and paramount priority under applicable law. <An Owner may creace and graf

encumber his interest by deed of trust, mortgage or other security instrument. <A first Mortgage shall be one which has firac and paramount priority under applicable law. <An Owner may creace and graf second lien mortgage or deed of trust against his Unit on the folly conditions: (1) That any such second lien mortgage or deed of cryft restrictions, uses, limitations, easements, obligations and lieng Expenses and other payments created by this Declaration and by (2) That the mortgagee under any second lien mortgage or degd 2 che morieaned urnished to the or deed of trust 7.10. Power Equipment and Car Nainte shops, or car maintenance of any nature Project except with prior written aghovs to grant approval, the Beard sha pollution, dirt or grease, fire ha reception, and similar objections No power equipment, work shall be permitced on the Board. In deciding whether the effects of noise, air erence with radio or television ge to Common Elemencs. The Owner of clation for all damages cto che Common used by neglect, misuse or negligence of Occupant of his Unit, guest or invitee.

7ell. Idability of Of each Unit shall be liaplt Elements or improvene such Owner or any tena 7.12. No Warr believe that any contained in ¢ Forceabilicy. While Declarant has no reason Co estrictive covenants or other terms and provisions ¢ VIL or elsewhere in this Declaracion are or may be for any reason or to any extent, Declarant makes no entation as to the present or future validity or Y such restrictive covenants, terms or provisions, Any > Unir in the Project in reliance on one or more of such pvenagnts, terms or provisions shali assume alii risks of the bnforceability thereof and, by acquiring the Unic agrees to hold

provisions, Any > Unir in the Project in reliance on one or more of such pvenagnts, terms or provisions shali assume alii risks of the bnforceability thereof and, by acquiring the Unic agrees to hold 7.13. Right of Ingress and Egress. The Unit Owner shall nave an unrestricted right of ingress and egress to his or her Unit. This is a perpetual right and ghall pass only with ownership transterc.

19 34186 5365 ARTICLE VIII.

ARCHITECTURAL CONTROL 8.1. Prohibition of Alteration and Improvement. Subject cto che exemption of Declarant under Section 9,10 below, no building, fence, wall, obstruction, balcony, screen, patio, patio cover, tent, awning, carport, carport cover, improvement, or structure of any kind shall be commenced, erected, painted or maintained upon the Project, nor shall any alteration or improvement of any kind be made thereto (save and except for repainting and redecorating of the interior of a Unit by an Owner) until the same has approved in writing by the Board or by an Architectural Control Committ, “Committee"} appointed by the Board and/or Declarant as provided Article. Notwithstanding anything herein to the contrary, the Assgeti not alter or destroy a unit or limited common element without t Be 2s Plans and Approval. Plane and specifications kind, shape, color, size, materials and location ,2f~4 alterations, shall be submitted to the Board or Comn such matters a6 quality of workmanship and designf qnd ha¢mpny of gst ruccural ; arion in relation to surrounding structures, topography, elevation» No permission or approval shall be require d nh accordance with Declarant's original plans and specification ry co rebuild in accordance with plans and specifications previously 9¢ No landscaping of patios or yards oh reet, from other Units or

d nh accordance with Declarant's original plans and specification ry co rebuild in accordance with plans and specifications previously 9¢ No landscaping of patios or yards oh reet, from other Units or p any Owner until plans and » design and location of the 6 and approved in writing by the shall respond in writing within és said requests for approval af plans ection §-2. Lf the Board or Committee said sixcy (60) day period, the Board or roved said request.

from the Common Elements shall be specifications showing the nature, proposed materials shall have been sub Board or Committee. The Board o sixty (60) days from the dal> it and specifications requir @é dees not respand in wr Commitcree. ‘The number, appointment and term all be as provided in Che Bylaws, subject to the 8.3. Archit ect ura of members of the Ge ceccaennltetrcatastenssrsmern ve enanpmren nein aE aoe the date upon which there has occurred the Conveyance by of seventy-five percent (754) of the Unics, or sooner aC ion of Declarant. Thereafter, the Woard shall have the pawer to appoint all of the members of the Comuiccee. Committee members appointed by the Declarant need not be Members of the Associarion.

Committee members appointed by che Board shall, however, be from the membership of the Association.

20 34186 5366 ARTIGLE IX.

GENERAL PROVISIONS Sale Enforcement. The Association, any Owner, and any governmental or quasi~governmental agency or municipality having jurisdiction over the Project shall have the right co enforce, by any proceeding at law or in eyguisy, all restrictions, conditions, covenants, reservations, easements, Ifens, and charges now or hereafter imposed by this Declaration, and iu such action shall be entitled to recover costs and reasonable atrorneys' fees ag are ordered by

enants, reservations, easements, Ifens, and charges now or hereafter imposed by this Declaration, and iu such action shall be entitled to recover costs and reasonable atrorneys' fees ag are ordered by the Court; provided, however, that an individual Owner shall have no r enforce the collection of any Assessment levied against any other Owner Article IV above. Failure by any such Person to enforce any such?¢prs on shall in no event be deemed a waiver of the right to do so thereafre 9e2- Invalidity of Any Provision. Should any prov ps Declaration be declared invalid or in conflict with ae jurisdiction where the Project is situated, the val Al other provisions shall remain unaffected and in full force g 9.3. Encroachment and Protrusion Easement ag Project is hereby declared to have an easement adjoining Units and the Common Elements for the purpose of accommoda 3 protrusion due to engineering errors, £ settlement or shifting of the Building, or valid easements for the ttaintenance ef said as long as they shall exist, and the riéh net be altered in any way by sa en shifting; provided, however, that encroachment or protrusion be crea encreachment or protrusion occu ginal construction, other causee ‘There shall be opachments and/or protrusions bligations of Owners shall shall a valid easement for ot of an Owner or Owners if said so the willful misconduct of said Owner or Owners. In the eyed re is partially or totally destroyed, and then repaired or rgf C 2 ers of each Unit agree that minor encroachments and/or pratirudtox ee“adjoining Units of Common Elements shall be permitted and that be 2 valid easement for the maintenance of said encroachments a Sions so long as chey shall existe Such

croachments and/or pratirudtox ee“adjoining Units of Common Elements shall be permitted and that be 2 valid easement for the maintenance of said encroachments a Sions so long as chey shall existe Such encroachments or protros 3s Shall not be considered to be encumbrances either 2 a Unit for purposes of markerability of title or 6f Mechanic's Lien Rights and Indemnification. No materials furnished and incorporated in a Unit with the request of an Owner or his agent, contractor or sg 1 be the basis for the filing of a lien against either the ents “or the Unic of any other Owner not expressly consenting to or e game, except that express consent shall be deemed to be given “of any Unit to the Board or Managing Agent in the case of energency repairs. Each Owner shall indemnify and hold harmless each of the other Owners from and againat any and all liability arising from any such claima or liens against the Units of any other Owners or againat the Common Rlements for construction perfermed or for labor, materials, services or other products incorporated in the indemnifying Owner’s Unit at such indemnifyling 21 34186 5367 Owner's request. Labor performed or materials furnished for the General Common Elements, if duly authorized by the Managing Agent or the Board in accordance with the Declaration or Bylaws, shall be deemed to be performed or furnished with the express consent of each Owner and shall be che basis for the filing of a lien pursuant to law against each Unit in che Project.

9.5. Mortgage Protection Clauses.

9.5.1. Rights of Moregageecs. No breach of any of the covenants, conditions and restrictions contained in this Declaration, nor the enforcement of any lien provisions herein, shall render invalid the lien of any lien Mortgage (meaning a Mortgage with £1

covenants, conditions and restrictions contained in this Declaration, nor the enforcement of any lien provisions herein, shall render invalid the lien of any lien Mortgage (meaning a Mortgage with £1 priority over any other mortgage) on any Unit or on the Projec a in good faith and for value, but all effective against ayy whose title is derived through foreclosure or trustee's otherwise, unless otherwise provided herein, 9.5.2. Notice to Lenders. All Inst itucione entitled to receive the following notices Assoclation: 9,542.1. Notice of any proposed Project Documents, which notice< shg (30) days prior to the effective dat 9.56222. Notice f£ grantor of any dorcaae> interest in which is held in the performance obligations under the not cured witht Ly 0) af such change; the Owner ofr > (the baneficial astitutional Lender) Swner's or grantor's aence, which default is tren notice of any damage or ididual Unit subject Eo a Morcgage erest in which is held by said which damage affects any material holder, insurer, or guarantor 48 65.264. Timely written notice of any loss to or ng of any portion of the Common Elements or ilities or improvements thereon, which loss or caking ects any material portion of the Projece or any Unic State on which there is a firsc mortgage held, insured or guaranteed by such eligible morcgage holder, insurer, or guarantor as applicable.

9.5.3. Changes Requiring Lender Approval. Withouc che prior weitten approval of ac least sixty seven percent (b74) of all the Institutional Lenders (based upon one (1) vote for each Mortgage {nterest in the Common Elements held by the Uwners other chan 2 4186 5368 nite steel x yb Declarant (except to the extent a higher percentage of approval

two-thieds percent (60-2/3%) of che undivided {nterest in the Common Elements held by the Uwners other chan 2 4186 5368 nite steel x yb Declarant (except to the extent a higher percentage of approval be expressly required elsewhere herein or by applicable law), Association shall not be entitled to: 9.5.3e1l. By act or omission, seck to abandon er terminate the Condominium Project except for abandonment or termination of the Project provided by law, in case of substantial destruction by fire or other casualty or in the case of taking by condemnation or eminent domain; 9.5.3.2+ Change che pro rata interest or obligations of any Unit for the purpose of (i) levying assessments or charges or allocating distributions hagard dusurance proceeds or condemnation awards, or determining the pro rata share of ownership of eagh in the Common Elemente; provided, however, Lhat herein shall prevent Declarant from redgrermi reallocating between Units owned by Dg rata share of ownership in the Common Units owned by Declarant which Dec partitions or subdivides prior to sale o third party; 9.5.3.3. Partition or subg as provided in Section 2-3 contained herein or ” : Th, any Unit, except a thar nothing shall prevent Declarant from combint ing or subdividing Units owned by Declarant ; 9.50304, partition, subdt Common Eleme oission, seek to abandon, er, sell or transfer the anting of easements for public public purposes consistent with Common Elements by che Project transfer within the meaning of this . Use hazard insurance proceeds for property on che project (whether to Units Elements) for other than che repair, éd in this Declaration or the other Project Documents to 23 may the 7.5.4. Mortgage Priority. Notwithstanding any language the

rty on che project (whether to Units Elements) for other than che repair, éd in this Declaration or the other Project Documents to 23 may the 7.5.4. Mortgage Priority. Notwithstanding any language the contrary, no Owner or other party shall have priority over any righcs of the Mortgagee of any Unit pursuant to ics Mortgage in che case of a distribution to the Onwer of such Unit of insurance proceeds condemnation awards for losses to or taking of all or a portion of such Unic and/or Common Elements.

the right to examine the books and records of che Association at reasonable times during cegular business hours of the Association.

or Institutional Lenders shall have all 2186 9369 9.5.56 Compliance with FNMA and FHLMC Regulations. The Declarant intends that the Project shall comply with all requirements of the Federal National Mortgage Association ("FNMA") and/or the Federal Home Loan Mortgage Corporation ("FHLMC") pertaining to the purchase by FNMA and/or FHLNC of conventional home loans. Declarant and all Owners therefore agree that, notwithstanding anything to the contrary contained herein, in the event the Project or any of the Project Documents do not comply with the FNMA and/or FHLMC requirements, the Board shall have the power (on behalt of the Association and each and every Owner) to enrer into any agreement with FNMA and/or FHLMC (or their designees) or che Mortgagees of Units reasonably required by FNMA and/or FHLMC or the Mortyagees allow the Project to comply with such requirement s.

9.5-6. Taxes, Assessments and Charges Which Liens. All taxes, assessments and charges which may prior to any first lien Mortgage under lecal law shall the individual Units and not the the Project as g e 9.6. Revocation or Amendment to Declaratto Declaration shall

ssessments and charges which may prior to any first lien Mortgage under lecal law shall the individual Units and not the the Project as g e 9.6. Revocation or Amendment to Declaratto Declaration shall not be revoked unless all of the Owners and sixcy enc (67%) of the holders of any recorded first lien Mortgage ~overt ecting any or all of the Units congent and agree ta such % ocation instrument(s) duly recorded. Except as set forth in Section 9.5. his Declaration shall not be amended unless the Owners representing an ar é least sixty seven percent (67%) of she (51%) of the holders of any vecundehe ( any or all Units consent and agree recorded; provided, however, that a the Common ElementsS appurgena Declaration, shall have a ets a the consent of all of the recorded (subject only £ percentage of undivide and provided, further efents and fifty-one percen brcgage covering or affecting fhendment by instrument(s) duly irdge of the undivided interest in Unit, as expressed in chis s of Declarant tv unilaterally change such ? set forth in Sections 2-3 and 9.5.3.2), “gation of this Declaration shall always require the consent of all as. Notwithstanding che foregoing, before the first annual meet ? Assoclation, Declarant may, with the written consent i al Lender of any Unit which would be affected (but without the conpent Owner) amend this Declaracion, Map, Bylaws and any ot her 5 hereto, which amendments may include by way of example imited to those made pursuant to Seccions 1.15, 1l-l6é and Qe 3.

ner's Right and Obligation to Maincain and Repaic. Except for thosé redone of the Project which the Association is required to maintain 4 43 provided herein and in the Bylaws, each Unit Owner shall, at his sole cost and expense, maintain and repair his Unic and any Limiced Common

e Project which the Association is required to maintain 4 43 provided herein and in the Bylaws, each Unit Owner shall, at his sole cost and expense, maintain and repair his Unic and any Limiced Common Elements appurtenant to his Unit, keeping the same in good condition.

Additionally, each Owmer shall, at his sole cast and expense, maintain, repair and replace as necessary any separate air conditioning and heating units which service only his Unit. Hach Owner shall have the exclusive right to paint, plaster, panel, tile, wax, paper or otherwise refinish and decorate the inner 24 surfaces of the walls, cetlings, floors, windows and doors bounding his Unit.

In the event an Owner fails to maintain his Unit as provided herein in a manner which the Board deems necessary cro preserve che appearance and value of the Project, the Board may notify such Owner of the work required and request that it he done within sixty (60) days from the giving ot such notices In the event such Owner fails to complete such maintenance within said period, the Board may cause such work to be done and may specially assess the cost thereot to such Owner and, if necessary, create a lien against the Unit for the amount thereof.

9.8. Insurance; Damage or Destruction.

9.8.1. Association Liability Insurance. The Association obtain and continue in effect Conia enna 8 public use of the Common Elements, commercial spaces, ways, and including, if obtainable, a cross~ insuring each insured against liability to eac “severability of interest” endorsement preclud Owners or the Association. The scope the ca all other coverage in the kinds and anhg s comuonly required by private institutional mortgage investors x projects similar in \K be in an amount not per occurrence, for construction, location, and use. Cov

her coverage in the kinds and anhg s comuonly required by private institutional mortgage investors x projects similar in \K be in an amount not per occurrence, for construction, location, and use. Cov less than One Million Doliars & personal injury and/or property 9.8.2. Master Hazard Ing ghali obtain and Batali multi~peril insurance 9 8 extended coverage and commonly required dditionally, the Association master or blanket policy of providing as a minimum fire and nstitutional mortgage investors for projects similar ik én, location and use on a replacement cost basis in an as ess than one hundred percent (100%) af the insurable va aséd upon replacement coset) of all improvements c Were is a steam boiler in operation in connection with nit, there must be in force boiler explosion insurance A By the standard form of boiler and machinery providing minimum coverage in an amount not less nd Dollara ($50,000.00) per accident per location.

t is located in an area identified by the Secretary of rban Development aé an area having special tilood “planket " policy of flood insurance on che Prajecc must be 5 in the amount of the aggregate of the outstanding pri #1 balances of the mortgage loans on all Units in the Project or the maximum limit of coverage available under che National Flood Insurance Act of 1968, as amended, whichever 1s less. The master policy of multi~peril ingurance shall contain extended coverage and replacement costs endorsements, 1f available, and may also contain 6186 9371 ke _.mesamegeniall % ‘ vandalism and malicious mischief coverage, special form endorsement , stipulated amount clause and a determinable cash adjustment clause, or a similar clause to permit cash settlement covering full value of

ism and malicious mischief coverage, special form endorsement , stipulated amount clause and a determinable cash adjustment clause, or a similar clause to permit cash settlement covering full value of the improvements on the Project in the event of destruction and a decision not to rebuild pursuant to this Declaration. Such policies shall be in form and atiount a6 may be determined by the Board (provided that such policies must be acceptable to the Federal Home Loan Mortgage Corporation and/or che Federal National Mortgage Association), shall name as insured the Association, the Owners and Declarant (so long as Declarant is an Owner of any Units), and all Mortgages as their respective interest may appear, and shall prov that any proceeds be paid to the Association for the use and ben of the Owners and Mortgagees as their interesc may appear.

policy shall not be required to insure the personal prope customized items within any individual Units, which remain the responsibllity and risk of the Owners.

9.8.3. Additional Association Insurance.

purchase such other insurance as it may deed limitation plate-glass insurance, worker's cémfensac¥o liability, and errors and omissions insurance shall purchase fideliry cayerage against di e Acts by any directors, managers, trustees, employ, Meers of the Association who are responsible for han funds belonging to or administered by the Association. The bond insurance shall name the Association as the insured a ovide coverage in an amount nok less than one and on 1f imes the Association's estimated annual operating expen g@rves. In connection with such coverage, an appropriate endo Oo the policy to cover any hall be added if the policy nsurance Premiums. The insurance ection 9.8 shall be acquired from

operating expen g@rves. In connection with such coverage, an appropriate endo Oo the policy to cover any hall be added if the policy nsurance Premiums. The insurance ection 9.8 shall be acquired from aMfona of the Federal Home Loan Mortgage gieral National Mortgage Association.

be a Common Expense to be included in the he Association. ‘The acquisition of insurance Ali be without prejudice to che right of any Owner to op Q ‘onal individual insurance.

9.8.4. Cholce policies required carriers meeting t Corporation and/o Insurance premiu Assessments ley mandatory the irrevocable appoint ment of an ace to deal with cho Project, in whole or in part , upon tion of repair.

le to any Unit is declared and expressly made gubjecc to che terms and conditions hereof, and acceptance by any grantee of a deed or other instrument of conveyance from the Declarant or from any Owner or grantor shall constitute appolatment of the att orney~in-fact herein provided. All Owners irrevocably conscituce and appoint the Association as their crue and lawful attorney in thelr name, place 26 J» ’ and stead for the purpose of dealing with said Project upon its destruction as is hereinafter provided. As attorney-In-fact, che Association, by and through its President or any Vice President and Secretary or any Assistant Secretary, shall have full and complete authorization, right and power to make, execute and deliver any contract , deed or any other instrument with respect to the interest of an Owner which is necessary and appropriate to exercise the powers herein granted. Any repair, reconstruction or teplacement made of the improvement(s) shall be to substantially the same condition

of an Owner which is necessary and appropriate to exercise the powers herein granted. Any repair, reconstruction or teplacement made of the improvement(s) shall be to substantially the same condition existing prior to the damage, with each Unit and the Common Elements having substantially the same vertical and horizontal boundaries before. The proceeds of any insurance collected shall be availab to the Association for the purposes of repalr, rest orat 7 replacement unless the Owners agree not to rebuild in accord Cay the provisions hereinafter set forth. ‘The Association shal repair and restoration of the improvement (s) permite eg hereunder.

the power and collect and se any and all Without limitation on the generality Association as said atcorney~in-fact shall ha renit the premiums therefor, to settle claims under gaid insurance policies, proceeds and toa distribute che same to the Assoctatix Owners and their reapective Mortgagees (subject to thé signs hereof) as thelr interest may appear, to execute leds6s abilicy and to execute all documents and to do all th f of such Owners, the Association and the Project as a pecessary or convenient ta the accomplishment of the g and any insurer may deal exclusively with the Assgcia egard to such matters. ‘The Assoclation shall nat pz 28 f for procurement or maint enance of any insurance coverim eoLewts or the interior of any Unit or for the liability or occurrences -Eherein not caused by or in connection ation's operation, maintenance or use of the projecc.

9.8.6. Reéc@ret fire, casualty oot) Project , wht te amount 6n or Repair of Project. In the event of disaster involving substantial damage to the 0) days of receipt of a determination of the

projecc.

9.8.6. Reéc@ret fire, casualty oot) Project , wht te amount 6n or Repair of Project. In the event of disaster involving substantial damage to the 0) days of receipt of a determination of the é praceeds available to che Association, the cause notice to be given of a special meeting of ld not less than twency (20) nor more than thirty the giving of such notices Such notice shall specify inaurance proceeds available, the estimated cose of and any other data deemed pertinent to the determination by this Section 9.8.6.

27 9.8.6.1. Sufficient Proceeds. In case of fire, casualty or any other disaster, the insurance proceeds, if sufficient to reconstruct the Project, shall, subject co the provisions of Sections 9.8.6.3 and 9.8.6.4 below, be applied to such reconstruction. Reconstruction of the Project, as used in this Scecion 9.8.6 means restvuring the Project to substantially the same condition in which it existed immediately prior to the fire, casualty or other disaster, with each Unit and the Common Elements having substantially the same vertical and horizontal boundaries as before. Such reconstruction shall be caused to be accouplished by the Association or its duly authorized agents.

9.8.6.2. Insufficient Proceeds. If the insura Proceeds are insufficient ta reconstruct the Pol damage to or destruction thereof shall, subjec provisions of Sections 9.8.6.3 and 9.8.4 promptly caused to be repaired and yeg Association or its duly authorized agents, | using of insurance, if any, on the Project for tha the Owners shall be liable for the specia Assessments for any deficiency as h after ed.

9.8.6.3, Less chan Two est ruct ion. it less than two-thirds (2/3) .of {as determined by the vote or written co Ps owning ac least fifty-one percent (51%) o Minon Interest in the

ciency as h after ed.

9.8.6.3, Less chan Two est ruct ion. it less than two-thirds (2/3) .of {as determined by the vote or written co Ps owning ac least fifty-one percent (51%) o Minon Interest in the exercise of their sole d is destroyed or substantially damaged by y other disaster, then the Project shallAbe ul or repaired, unless the Members of the 4 a unanimous vote or written consent , and 8 “thirds percent (66~2/3%) of (based upon one (1) vote for prior weitten approval elect not O-thirds of More Destruction. if or more of the Praject (as determined by weatten consent of Members owning at least (51%) of the Common Interest in the oY their sole discretion), is destroyed or ally damaged by fire or any other disaster, and embers, by unanimous vote or written consent , do oluntarily, within one hundred eighty (140) days determination of the amount of the Association's ‘eGurance proceeds resulting from such destruction or damage, make provision for reconstruction (unless within such period the buy-out contemplated in this Section 9.8.6.4 igs effected), the condominium regime shall be deemed to have been waived, and the Association shall rake all action required under the Act to regroup and merge the filial estate with the principal propercy, whereupon: 28 34186 S376 amen ta: 8a aie - saat I ttn ienemnhtinnnsmttetntenaneth @ a (i) the Project shall be deemed to be owned in common by the Owners; (li) the undivided interest in the Project awned in common which shall appertain to each Owner shail be the percentage of undivided interest previously awned by such Owner in the Common Elements; (124) any liens on each Unit and that certain porcion of the Common Elements appurtenant thereta shall be deemed to be transferred in accordance wlth their existing

such Owner in the Common Elements; (124) any liens on each Unit and that certain porcion of the Common Elements appurtenant thereta shall be deemed to be transferred in accordance wlth their existing priorities to the undivided interest of the Owner of the affected Unit; and action for partition at the su Owner, im which event the net sale, together with che net pro insurance on the Project, if a considered as one fund and among all the Owners and their interests shall appea equal to the Common Int eres by each Owner.

ent age ously owned Z provisions hereof, Substantial damage to Project, sixty~six and the Institutional Lenders each Mortgage owned) by Owners may, by an affirmative owl at least three-fourths (3/4) of bat érest , at a meeting of che Menpers purpose, elect to sell or otherwise bet. Such action shall he binding upon shall chereupon become the duty of Notwithstanding the in the avent of destr tworthirds (2/3) or ng event that two-thicds (2/3) of mere of the Project been damaged and unanimous vote has not been obtained reconstruction at the meeting held in accordance with e provisions of the first paragraph of this Section 9.8.6.4, the Association may, by affirmative votre of the Hembers owning at least three~fourchs (3/4) of the undivided Common Interest at a meeting of Lhe Members duly called for such purpose, elect to purchase ali the ownership interests in the Project of those Owners not 29 “4186 5375 * a voting to rebuild. Such action will be binding upon che Association and all Owners, and it shall thereupon become the duty of the Association and every Owner to execute and deliver such instruments and to perform all acts in such manner and form as may be necessary to effect the sale and purchase: The purchase price for the ownership interest

d every Owner to execute and deliver such instruments and to perform all acts in such manner and form as may be necessary to effect the sale and purchase: The purchase price for the ownership interest of each Owner so being purchased shail be payable to the Owner and the Owner's mortgagees as their interests shall appear and shall be an amount equal to the Owner's percentage interest in the Association's insurance proceeds plus an amount equal to che Owner's percentage | interest in an amount equal to the then market value of the Project, considered as a whole, excluding insurance proceeds and less the amount of any Ili against the Project or any part Chereof. In the event\t parties are unable to agree upon the purchase priee price shall be determined by appraisal as follg Association shall select one MAI designat ge act for it; within thirty (30) days of 8 appointment of an appraiser, the sel appoint an MAI designated appraiser forthwith the two appraisers acting toget a third independent MAI designageQ appra y mutual agreement ; and the three appraistgsa\by a vote of the majority of the group shall de bne sale price with respect to ea csplling hereunder.

All such purchases and s osed within sixty (60) days subsequent to th fon of the purchase and sale price as th the Association financing the same in a ith Seeccion 9.9. Within fifteen (15) ast euch closing, the Association sha held a special meeting of Members for of securing approval of iogerlor of Unit. Each Owner shall be ynstruction, repair or replacement of that of his Unic which the Owner has installed, gd, inclusing but not limired to, any floor aerings, window shades, draperies, furniture, decorative light fixtures, or ocher improvements, additions to his Unit, and all appliances located

installed, gd, inclusing but not limired to, any floor aerings, window shades, draperies, furniture, decorative light fixtures, or ocher improvements, additions to his Unit, and all appliances located Mpective of whether or not such appliances are “built-in” M, except the original buile-in appliances. Kach Owner go be responsible for the costs not otherwise covered by surancé carried by the Association of any reconstruction, repair or replacement of any portion of the Project necessirated by his negligence or misuse or the negligence or misuse by his family, Buests, agents, servants, enployees or contractore, In the event damage to all or any part of the interior of an Owner's Unic is covered by insurance held by the Association for the benefit of such portion of the furnished 30 >4186 5376 Se ell md maka manasa cmt tascam ntaatadbmmrio?s Sectammsmmcnsammaaaiaitad » & Owner, then such Owner shall begin reconstruction or repair of such damage upon receipt of the insurance proceeds or any portion thereof from the Association, subject to the rights of the Association cto supervise, approve or digapprove such reconstruction or repair during the course thereof. In the event damage to all or any part of the interior of an Owner's Unit is not covered by insurance held by the Association for the benefit of such Owner, then such Owner shall begin reconstruction or repair of his Unit within sixty (60) days after the date of such damage, subject to the right of the Association to supervise, approve or disapprove such reconstruction or repair during the course thereof.

9.8.8. Application of Insurance Proceeds. As soon as post after the occurrence of a casualty which causes damage to any the Project for which the Association has insurance

r during the course thereof.

9.8.8. Application of Insurance Proceeds. As soon as post after the occurrence of a casualty which causes damage to any the Project for which the Association has insurance (hereinafter referred to as the “Casualty"), the Assocte obtain reliable and detailed cost estimates of the follow 9.8.8.1. ‘The cost of restoring by the Casualty to the Common Elemg referred to as the “Common Element Costs" 9.8.8.2. The cost of resv6sing tha damage caused by the Casualty to Unit which is or would be covered by insurance he K the Association without regard to the policy > such insurance (heretnafter referred ig Costs"). ALL insurance proceeds avail Association with respect to the Casualty x be applied to the payment of the actual © t Costs and the balance thereof, if g after be applied ta the Cost s- However, if such insurance pro sufficient to cover such estimated cogts ecial Assessment or Assessments shall be madé Aingt\c hte’ Owners by the Association in the following ma payment of All Owners shall be assessed on of their percentage interest in the lements for the payment of the mated Common Element Costs not otherwise for by insurance held by the Association.

(ii) Each Owner of a damaged Unit shall be assessed an amount equal to che difference between the actual portion of estimaced Unit Costs attributable co his Unit less a sum calculated by multiplying the awounc, if any, of the remaining insurance proceeds held by the Association with respect to the Casualty by a fraction, the numerator of which Ls the actual portion of the estimated Unit Costs attributable to his Unit and the denominator of which is the total of all of the eastimat ed Unit Costs.

31 “4186 5377

raction, the numerator of which Ls the actual portion of the estimated Unit Costs attributable to his Unit and the denominator of which is the total of all of the eastimat ed Unit Costs.

31 “4186 5377 Pi en et oc lk lll NE RR IN Enel NL ental at—Abitaate nl el ala atin ta asn simian atasaell » & 9.8.9. Condemnation. In the event of any taking of any Unit in the Project by eminenc domain or sale or other transfer in Jieu thereof, the Owner of such Unit, subject to the rights of che Mortgagee of such unit as prescribed in Section 9.5.4 hereinabove, shall be entitled to receive the award for such taking and after acceptance thereof, he and his Mortgagee shall be divested of all {interest in the Project if such Owner shall vacate aud abandon his Unit by virtue of such taking. Tf any repair ox rebuilding of the remaining portions of the Project igs required as a result o£ such taking, the remaining Owners shall determine by the affirmative vote or written consent of Owners owning a majority o£ the Common Intere owned by said remaining Qwners, either to rebuild or repair Project or to take such other action as such renaining Owners deem appropriate. If no repair or rebuilding shall be requige shall be undertaken, the remaining portion of the Project re-surveyed, and the Declaration and Mast er Deed shall bea reflect such taking and to proportionately readjust thé ownership of the Project of one hundred The Association shall send written notice to all 3 Lenders (who have notified the Association in writing 4 Unit or Units) having Mortgages on Unit affe condemnat Lon proceedings or negotiations for sale in ef cod ation whenever the Association obtains knowledge such proceedings or

Association in writing 4 Unit or Units) having Mortgages on Unit affe condemnat Lon proceedings or negotiations for sale in ef cod ation whenever the Association obtains knowledge such proceedings or negotiations. No condemnation or sale thereof shall affecc the lien priority of an Institutional he Unit on which ic holds a Mortgage or on proceeds of thac Unit. In the event of a taking or acquisit io or all of the Common Elements only by condenning cit he award or proceeds of settlement shall he payable d owners! Association, or any trustee, for the use ang» the Unit estate owners and their mortgagees as their inte 9.8.10. ilicy Insurance. In addition to the gaociation shall carry, the Board shall each Owner, at his sole cost and expense, y insurance covering damage ¢o property or others within the Project resulting from jer or his agents, tenants, guests or invitees, 6, and including, One Hundred Thousand Uollars each occurrences Waiver of Subrogation; Notice of Cancellation.

erty and Idability insurance carried by the Association or br& shall contain provisions whereby the insurer waives rights gzarion as co the Association, officers, and directors, and any Members, their guests, agents and employees. All policies of hazard insurance must contain or have attached che standard morcgpage clause commonly accepted by private imatitucienal mortgage investors in the area in which the Units are located. All insurance carried by the Association shall contain a provision requiring the insurer to notify all insureds, including servicers on behalf of FHLMC and/or FNMA, named at least cen (10) days in advance of the effective dare of any reduction in or cancellation ot the policy.

32 34186 5378 ce eet lt emcees rasamammrmmaneaadaussrasideraessamsndeamasadaaied

FNMA, named at least cen (10) days in advance of the effective dare of any reduction in or cancellation ot the policy.

32 34186 5378 ce eet lt emcees rasamammrmmaneaadaussrasideraessamsndeamasadaaied 9.9. Financing of Purchase of Unit by Association. In the event the Association should acquire a Unit at foreclosure or pursuant [Oo Section 9.8.6.4, such acquisition by the Association may be made from Che working capital of the Assoclation and common charges in the hands of che Association, or if such funds are insufficient, the Association may levy 4a special Assessment or Assessments against each Owner in proportion to his Common Interest, as a Common Expense, or the Association, in its discretion, may borrow money to finance the acquisition of such Unit; provided, however, that no finaneing may be secured by an encumbrance or hy pochecation of any proper other than the Unit, together with the interest in the Common Element appurt ertant thereto, so to be acquired by the Association.

9.10. Limitation of Restrictions on Declarant. Declarant is certain work in connection with the construction and developm Property as a condominium regime. The completion of chat work rental, and other disposition of said Units is essential to yz efinent.

and welfare of the Project as 4 residential community» In work way be completed and said Project be establisntd_ oF residential community as rapidly as possible, not pip shall be understood or construed to: 9.10.1. Prevent Declarant , its copmactors Bc ont ract ors from doing on or to the Project or any what e is reasonably necessary or advisable in connection with t ompletion of the work ; or 9,10.2- Prevent seciaxate erecting, constructing and mainta Project, such structures 48 ma conduct of its business pretip Project as a residents

visable in connection with t ompletion of the work ; or 9,10.2- Prevent seciaxate erecting, constructing and mainta Project, such structures 48 ma conduct of its business pretip Project as a residents parcels by sale, lease representatives from y part or parts of the ble and necessary for the Aa work and establishing said and disposing af the same in 9.10.3. Pre ant from conducting on any part of the Project its businags sottpleting the work and of eatablishing a plan of Unit owpere mndMof disposing of said Project in Units by sale, leage or f br ext Declarant from maintaining such sign or signs Project as may be necessary for the sale, lease or as Declarant owns one or more of the Unita established ibed in this Declaration {and except as otherwise Aly provided herein), Declarant, its successors and assigns, f subject to the provisions of this Declaration.

9,11. ‘Termination of Any Responsibility of Declarant. Declarant may at any time, or from time to time, sell, assign or transfer all or any parc of its rights hereunder and/or its righta, title and interest in the Project to any Person or Persons who shall thereafter have such rights and powers of Declarant as are contained in the Project Documents and 50 transferred or »° 45186 5379 oir ‘er assigned» In the event Declarant shall convey all of its right, ticle and interest in and to the Project to any Person or Persons, then and in such event, Declarant shall be relieved of the performance of any furcher duty or obligation hereunder, and such Person or Persong shali be obligated to perform all such duties and obligations of the Declarant.

9.12. Owners' Compliance. Each Owner, tenant of occupant of a Unit and their guests and invitees shall comply with the provisions of the Project

rform all such duties and obligations of the Declarant.

9.12. Owners' Compliance. Each Owner, tenant of occupant of a Unit and their guests and invitees shall comply with the provisions of the Project Documents and all lawful decisions and resolutions of the Association o duly authorized representative, and failure to comply with provisions, decisions, or resolutions, shall be grounds for an actio Association co recover sums due for damages (including costs and reas ex hg attorneys' fees) and/or for injunctive relief. All ag determinations lawfully made by the Association in accordance percentages established in this Declaration or in che Bylayé to be binding on all Owners, their successors and assigns.

9.13. Legal Intent. It is the intent of Degg A¥sociation and the Owers that the Project Documents be in st rid th applicable usury laws of the State of texas. In further eof, said parties stipulate and agree that none of che terms and Project Documents shall ever be construed ty eate a -@dntract to pay for the use, forbearance or detention of money, inté at a rate in excess of the maximum interest rate permitted to be chg Yl applicable laws of the State ! of Texas. The Ownerg or other pa greafcer becoming liable for t payment of sums owing under the te Fject Documents shall never be liable for unearned interest on any ms and shall never be required to pay interest at a rate in g9xté e@ maximum interest that may be jJawfully charged under applic e/fof the State of Texas, and the provisions of this sect ipa) s ol over ail other provisions of the Project Documents in coy Se rm In the event thac the Declaranc, che Association or any o sated agents shall collect monies which are deemed to constitute st> a rate in excess of that permitted to be

e Project Documents in coy Se rm In the event thac the Declaranc, che Association or any o sated agents shall collect monies which are deemed to constitute st> a rate in excess of that permitted to be charged by applicable the Stare of Texas, all such sums deened co constitute int eres mccass’of che legal rate shall be immediately returned 9,14, C9 between tl Project Documents. If there is any conflict among or ocuments, the provisions of this Declaration shall ; priority shall be given to Project Documents in the Declaration; Map; Articles; Bylaws; and Rules and e Association.

h Jerm of Declaration. The covenanta, conditions, and restrictions of tDks DeClaration shall run with and bind the Property and the Project, and shall inure to the benefit of and shall be enforceable by the Association, its respective legal representatives, successora~in-interest and permitted assigns, for a term of fifty (50) yeacs From che date thie Deelaracion is recorded, after which rime said covenants, conditions, and restrictions shall automatically be extended for successive periods of ten (10) years, unless an instrument , signed by all of the then Uwners and all of che Mortyagees, has been recorded, agreeing to change said covenants, conditions, and restrictions in whole or in part.

34 24186 S386 “me, eel lem 7 ae or eliminate the e liability of the Assoctacion@P Without limiting the generality of the foregoing, the Board may, on behalf of the Association, elect to be taxed under the Section 528 of the Internal Revenue Code or any successor statute canferring income tax benefits on homeowners associations. In connection therewith, the Board shall take such steps as are necessary to assure that the income and

Revenue Code or any successor statute canferring income tax benefits on homeowners associations. In connection therewith, the Board shall take such steps as are necessary to assure that the income and expenses of the Association for any taxable year shall meet the limitations and restrictions provided in said Section 528 of che Internal Revenue Code or any successor statute conferring henefirs on homeowners associations as are in effect from time to time. Intdially the Board shall comply with the following Jimitations and rest rictions: (1) At least sixty percent (60%) of the pross income of the Association for any taxable year shall consist solely of amounts received as membership dues fees, or assessments from Unit Owners; (i1) At least ninety percent (904) of expenditures of the Association for any taxable yfas be for the acquisition, construction, gemrey > malntenance, and care of Association propery9 (Lii) No part of the net earnings shall inure (other than by acquiring, providing management, maintenance, and ca property and other than by a reba Member or individuals In addit kon} such steps as are nee cosy tq all of the Units will be u Board shall take at substantially or failure of the Association or ons, restrictions, easements, uses, gion of the Declaration, the Bylaws or want thereto, shall not constitute or be 4 No Walver of Rights. ‘Thg any Owner to enforce the covenant Cte limitations, obligations a deened a waiver, modif/ or the Managing Agent 5» Election and—-Tery At the first meeting of the Association the term of office fo rk ) Directors shall be fixed at two (2) years; and the term of offic b (2) Directors shall be fixed at one (1) year. At the cosa. opal WeNS mi&tial term of office of each respective Director, his

fo rk ) Directors shall be fixed at two (2) years; and the term of offic b (2) Directors shall be fixed at one (1) year. At the cosa. opal WeNS mi&tial term of office of each respective Director, his alld Q ce eTected to serve a term of two (2) years. The Directors til their successors have been elected and hold chetr Y tes» Vacancies in the Board of Directors caused by death, resigrtat Ih disqualification, i.e, by any reason other than the removal of najority of the remaining Directors, even though they may constitute less chan a quorum; and each person so elected shall be a Direccor until a successor is elected at the next annual meeting of the Association.

7. Renoval of Directors. At any regular or special meeting duly called, any one or more of the Directors may be removed with or without cause by a majority of Owners, and a successor may then and there be elected co fill the vacancy thus created» Any Director whose removal has been proposed by the Owners shall be given an opportunity to be heard at the meeting.

8 Organization Meeting. The first meeting of a newly elected Boa Directors following the annual meeting of the Owners shall be neld w meeting at which such Directors were elected, and no notice shall to the newly elected Directors in order legally to constiture 9. Regular Meetings. Regular meetings of the Board held at such time and place as shall be determined ft tile, @ hela during each calendar quarter. Notice of regular meetings oard of Directors shall be piven to each Director, personally il, celephone or telegraph, at least five (5) days prior to the day nda such meeting.

by a e Board of Directors may be to each Director, given ich notice shall state che pose of the meeting. Special

y il, celephone or telegraph, at least five (5) days prior to the day nda such meeting.

by a e Board of Directors may be to each Director, given ich notice shall state che pose of the meeting. Special called by the President or ation in Like manner and on like é Director.

10. Special Meetings. Special meetings called by the President on five (5) day personally or by mail, telephone o time, place (as hereinabove provi meetings of che Board of Direccor Secretary or Assistant Secretary 6 notice on the written Pease as after any meering of che Board of dcing, waive notice ot such meeting and such 6 the giving of such notice. Attendance by ll. Waiver of Noticé Directors, any Direct of}?

waiver shall be deemed the Directors are present at any meeting of the Board, no not required and any business may be transacted at such meeting.

éctors' Quorum. Ac all meetings of che Hoard of ef the Directors shall constitute a quarum for che (hich a quorum is present shall be the accs of the Hoard of fH, ac any meeting of the Board of Directors, there be legs than a » the majority of those present may adjourn -Che meeting from 4c any such adjourned meering, any business which might have been transacted ac che meeting as originally called may be cransacted without further nocice.

4186 Shee iN MOA EMAL DNS Pe eee EN Oe Ste LE Reka ie, fee bee BE eee VR Caen CORRE T TRS ET TLS ION EINE MTR ITN ee AE Ce Re POTATO MN Bra oD, Lae et LEMOS E DEN ee te Cee eA Te OPE ARE eC PCE ee CEN MOE TSE ete RE Te ON ee OR ee ey 13. Fidelicy Bonds. The Board of Directors shall reygutre chat all officers and employees of the Association or of the Managing Agenc, if any, handling or responsible for Association funds shall furnish fidelity bonds in

The Board of Directors shall reygutre chat all officers and employees of the Association or of the Managing Agenc, if any, handling or responsible for Association funds shall furnish fidelity bonds in accordance with the Declaration. The premiums on such shall be a Common Expenses 14. Compensation. No member of the Board of Directors shall receive any compensation for acting as suche ARTICLE V.

FISGAL MANAGEMENT following provisions: 1. Accounts. The funds and expenditures of th through che Association shall be credited and charged to a he fallowing classifications as shall be appropriate, all of ndicures shall be Common Expenses!

inclu all tunds)§ and Be funds are budgeted, les and working funds, and to additional (a) Current expense, which © shi expenditures within the year for whic including a reasonable allowance for except expenditures chargeabl t improvement s. > @, which shall iuelude funds requent ly than annually.

(b) Reserve for een (c) Reserve for /réptacente Sinking fund) which shall include funds for repair : obsolescence.

2. Fiscal Year cal year tor the Associacion shall be the calendar years ARTLCLE VI.

OFFICERS action. Vhe officers of the Association shall be a President, a ,» a Seccetary, and a Treasurer, all of whom shall be elected by ef Directors, and such assistant officers as che Board of Direcrors shall, from time to time, elect. Such officers need not be wembers of the Board of Directors, but each shall be either an Owner of a Unit or, if che Owner is a firm, partnership, corporacion, association, or other legal encrity, Y6°86 9423 the authorized representative of such enticy, or the Declarant or his representative(s). The office of Secretary and Treasurer may be held by che same persone

ion, or other legal encrity, Y6°86 9423 the authorized representative of such enticy, or the Declarant or his representative(s). The office of Secretary and Treasurer may be held by che same persone 2. Election of Officers. The officers of the Association shall be elected annually by che Board of Direcrors at the organizational meeting of each new Board and shall hold office subject co the conrinuing approval of the Board.

3. Resignation and Removal of Officers. Upon an affirmative vote,of a majority of the members of the Board of Directors, any ofticer may be rd elther with or without cause, and his successor elected at any repulg such purpose» Any officer may resign at any cime by giving writ the Board, the President or the Secretary. Such resignation shg and unless otherwise specified chereln, Lhe acceptance shall not be necessary to make it effecrive.

4. Vacancies. A vacancy in any office becau removal, disqualification or otherwise of the off office may be filled by appointment by the Board such vacancy shall serve for the remaind of cf replaces.

are’, resiynarion, dy fidling such icer appointed co of the officer he 5. President. The President shall Association. He shall preside at { Board of Directors. He shall have™ yéneral powers and duties which are usually vested in the office of pt £ an association, including but ées from amony the Owners from time de is appropriate to assist in the don or as may be established by the on at any regular or special meetings.

to time as he may in his conduct of the affairs 9 Board or by the Members 6. Vice-Presidenc , “President shall haye all che powers and authority and perfarm Punctions and duties of the President, in che absence of che Prag x his inability fer any reason cto exerelse such

rs 6. Vice-Presidenc , “President shall haye all che powers and authority and perfarm Punctions and duties of the President, in che absence of che Prag x his inability fer any reason cto exerelse such powers and functio ri@rm such duties, and also perform any duties he is ve Secretary shall keep all che minutes of che meeting of the Boa s and the minutes of all meetings of the Association; he shall h e of such books and papers as che Board of Directors may dai Bhall, in general, perform all the duties incident cto the off gecary and as is provided in the Declaracion and the Bylaws.

The retary ehall compile and keep up to date ac che principal office of the Agsociacion a complere list of Members and cheic last known addresses as shown on the records of the Association. Such lfst shall also show opposite each Member's name che number or other appropriate designacion of che Unic -lQ» 4186 S424 — owned by such Member, the undivided percentage interest in the Common Elements of such Member and a description of the percentage interest in the Common Elements of such member and a description of the Limiced Common Elemenrs assigned for exclusive use in connection with such Unit. Such list shall be open to inspection by Members and other persons lawfully entitled to inspect the same at reasonable times during regular business hours.

8 Assistant Secretary» The Assistant Secretary, if any, shall have all the powers and authority to perform all the funccions and duties of the Secretary in the absence of the Secretary or in the event of the Secre inability for any reason to exercise such powers and funecions or ta such duties, and also to perform any duties he is directed to perfo Secretary.

9. Treasurer. The Treasurer shall have responsibility

nability for any reason to exercise such powers and funecions or ta such duties, and also to perform any duties he is directed to perfo Secretary.

9. Treasurer. The Treasurer shall have responsibility funds and shall be responsible for keeping full and accurat e-< s receipts and disbursements in books belonging to che Assoc ne shall be 3 ex Fh y/in the Ra gfas may frou event a Managing ds, the Treasurer l. Indemnification.

any Officer or Director cis is threatened to be made acctlon, suit or pred investigative (whether of the fact that su Association, agal atctorneys' fees anf in setcrlement a defense of su datiign shall have the power to indemnify Declarant , who was or is a party, or to )6any threatened, pending or complet ed her civil, criminal, administrarive, or or in the righc of the Association) by reason is or was a Director oc Officer of the ) expenses (including buc not limited to he proceeding), judgwentsy, fines and amounts paid reasonably incurred by him in connection with or in suic or proceeding if such person acted in good taith and in 3 A such person reasonably believed to be in or not opposed to the hest erests of the Association; provided, that wich respecc to: (1) any ~crimly Ack bon or proceeding, such person had no reasonable cause Co p sw \hivs conduct was unlawful; or (2) any civil claim, issue or matte person shall not be guiley of gross negligence or willful the performance of his duties to the Association. ‘Termination of any action, suit, or proceeding by judgmenr , order, setclement , conviccion, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumprion that such person had reasonable cause Co believe char his conduct was unlawful, that such person did noc ace in good faich or in a ~lie @

r its equivalent, shall not, of itself, create a presumprion that such person had reasonable cause Co believe char his conduct was unlawful, that such person did noc ace in good faich or in a ~lie @ manner which he reasonably believed to be in or not opposed co the best interests of the Association, or that such person is guilty of gross negligence or willful misconduct in the performance ot his duties to che Association, all such matters being determined solely and exclusively for che purpose of indemnification as herein provided.

Indemnification under the preceding paragraph shall be made by the Association only as authorized in each specific case upon the determination that indemnification of such person is proper in the circumstances because he has met the applicable standards of conduct as set forth herein. Such determination shall be made (1) by the Board of Directors by a majority of a quorum consisting of Directors who were not parties to such actig or proceeding; or (2) if such a quorum is not obtainable by (a) ie legal counsel in a written opinion, or (b) the Memberg of che Ass¢ no Member shall be disqualified from voring because he is or was¢p: such action, suit or proceedings Indemnification so det erni pe ‘ in part, hefore the terminacion of such action, sule or py receipt by the Association of an undertaking by or beha claiming such indemnification to repay all sua é dJ/ if it is subsequently determined that he 1s not ent it led ; aVided in this Article.

Yo the extent that a Director or Off successful on the merits or otherwise in che proceeding, whecher civil or criminal, against such expenses (including costs reasonably incurred by hin in connec ayn U Fense of any action, suit or Person shall be indemnified eys' fees) actually and

roceeding, whecher civil or criminal, against such expenses (including costs reasonably incurred by hin in connec ayn U Fense of any action, suit or Person shall be indemnified eys' fees) actually and Indemnification provided herein_s d may be encicled as against che Association, and every Dire é employee thereof under any bylaw, resolution, agreement or (4 F quest for payment hereunder shali be deemed a waiver of all ts, claims or demands as againsc the Association and = eac Officer and employee chereof. The indemnification provi all inure to the benefic of the heirs, executors, adminis rat 6 cessors of any person enticled thereco under the provision of chie4 purchase and maintain insurance on behal& of any person who is ector, Officer, employee or agent of che Association against y asserted against him and incurred by him in any such capacl eJouc of his status as such, whether or noc che Agsociacion would hay A to indemnify him against such liability undec che prgviy AY. lity, loss, damage, cost and expense ineurred of sutfered by che Associate’ by reason or arising out of or in connection wich che foregoing indemnification provisions shall be treaced and handled by the Assuclation as Common Expenses; provided, however, chat nothing in chis Arcicle VII contained shall be deemed to obligate the Assoclation co indemnify any Nember or Uwner -l2+4186 5426