f.py

data = {140191: 'CC&Rs\nArizona Goldfield Homeowners Association\n \nRecording Requested By,\nand after Recording Return to:\nThomas J. McD\n, Esq.\n \n \n  \n \n-\nGammage&\nBurnham\nPINALCOURS?RECORDER\nTwo\nNorth Central Avenue\nLAURA OPAN-LYTLE\n_18"\nFloor\n|\nRhosnixpAvizena8008\nDATE:\n87/12/06\nTIME:\n1592\nTIRST AMERICAN TIEL\nFEE:\n39,09 0\nBUILDER SERVICES\nPAGES:\n35\n \nFEE\nNOS\n2A68-@> 8946\n \n \nDECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS\nAND EASEMENTSFOR\nKAUFMAN AND BROAD AT\nARIZONA GOLDFIELD\nBY\nKAUFMAN AND BROAD OF ARIZONA,INC.\n79975 v10  \nRECITALS\nARTICLE1\nARTICLE2\nARTICLE3\nARTICLE 4\nARTICLE5\n79975 v10\nDECLARATION OF COVENANTS, CONDITIONS,\nRESTRICTIONS AND EASEMENTS FOR\nKAUFMAN AND BROAD AT ARIZONA GOLDFIELD\nPAGE\nenevecsvsnacesscscvseesessssessesenssccesssensnsesaceusasecsnsasessssesaeeeeeneceassseuentevensaes\n1\nDEFINITIONS1... .e.ccccsccsssecscsecesssscececsseeesnsnesceseesesensneeeenseeensseenes\n1\nPROPERTY AND PERSONS BOUND BYTHIS\nDECLARATION........ccesccssssecescssnsseetssceessessesesseessatereeneesesseeens\n4\n2.1\nGeneral Declaration...............cccccesscssssseceesesesessseesenrennen\n4\n2.2\nDeclarant\'s Disclaimer of Representations.............0000..\n4\nEASEMENTS AND RIGHTS OF ENJOYMENTIN THE\nCOMMON AREAG........ccccccccsscceceessncecssseeessesnaeeesseesseeeensseusesssens\n4\n3.1\nEasements and Rights of Enjoyment..............ccccceseee\n4\n3.2\nDelegation OfUse...eee csceessesssecnsaeereeserecesesenneeses\n5\n3.3\nEasement for Common Areas Maintenance.................\n5\n3.4\nUtility Easements 10.00.00... eccseesessseessseesssseesessseesscsesaes\n5\nDESIGN CONTROL..........cccccessscceeessseessseeececeseeseesenssueeseeseusesaaees\n6\n4\nDesign Review Committee...cesses sesseessssssssean\n6\n4.2\nVALIANCES 20.0... ceccessessseecssssenensccececeessenecencnsecuuraceseucuseesvecs\n6\n4.3\nFOC voseeeesssesesssccessecessssnaceceeessqnesesasecsssssseseeessescscuseacuscuss\n6\n4.4\nPersonal Liability 2.0.0.0... ccsccsccesesstesessseeesceeeeeeusessssaeens\n6\n4.5\nProvisions IfNo Committee...ccc eccsessseseesseesssneoeees\n7\nPERMITTED USES AND RESTRICTIONS...cee seeseeeee\n7\n5.1\nResidential Purposes............cccssssssessecesesssesesssssssscceuses\n7\n5.2\nANIMALS 0... eccssseccccencessssesseeesecsseesesseseesesusesssscctssenanss\n7\n5.3\nGarbage occ cececcssesserseessessreeeestecsssesseseeseasesetsnesusesasees\n7\n5.4\nClothes Drying Facilities..........ccccssssssesessssssceeesesees\n7\n5.5\nWindow Coverings.........cccsscscssecsesssesssessssstecsssecseeeeens\n8\n5.6\nGarages and DrivewayS.......:ccsssccsseceessesessesesessccessreces\n8\n5.7\nImprovements and Construction ..........csecesecessseeessenens\n8\n5.8\nHeating, Ventilating and Air Conditioning Units........\n8\n5.9\n8\n5.10\n9\n \n6/9/0\nARTICLE6\nARTICLE7\nARTICLE8\n79975 vi0\n5.11\nBasketball Goals.........ccsscccssscssesessereressescesesevsseseesenases\n9\n5.12\nVEHICIES ......ccccescccesesssecessesseesesceeecessneesceentseeesnaesessaseneees\n10\n5.13\nFences, Interferences and Obstructions..........cccseseeees\n10\n5.14\nLeasing; Obligations of Tenants and Other Occupants\n10\n5.15\nLandscaping and Maintenance; Reconstruction...........\n11\n5.16\nSUQMS .....secceeccseceecenceeeseessaneesseeecessuseustusssenesasessesevsssneenes\n11\n5.17\nProhibited Uses 00... ..ccccesccccsssssssseseessssnsecssseeesessvetensens\n11\n5.18\nDust Control..........ccccccsseccecesseeceessseeseusseesscaneenensaeeeseesees\n12\n5.19\nNUISANCES .........cecececsesssssececeesensssnsnseeenccecessannsesecurseeseues\n12\n5.20\nDrainage 0...eee ceeeeseeeeseeeceeeeetssenenseneusseesesseuteeensueeneas\n12\n5.21\nParty Walls .........ececccessececseecreaseereseensseseveeeeeserssssenensees\n12\n5.22\nExemption of Declarant ..0...0cesses cseesseseeeeeeeeeteeeeees\n13\n5.23\nMiscellaneous .........sscssecssssscsstecssseescscseeessecssnseesseeesacoes\n13\nORGANIZATION OF ASSOCIATION........ccecccccsscesestteceseecess\n13\n6.1\nFormation Of ASSOCIAtION ..........c.ccccccecccssssssssssnsceneeeesees\n13\n6.2\nBoard of Directors and Officers .............cccsccsessecsessessees\n14\n6.3\nASSOC1at1ON Rules 2.0.0... eccccessccseseeeceessssseeeeseetssueeeeenees\n14\n6.4\nPersonal Liability .............cccccceccsececeeeceeceessssssssucssersecees\n14\nMEMBERSHIPS AND VOTING. ...........c0cscccssssseessenseessecesseeeeees\n14\n7.1\nMembership..........cccscseseccsesssseceessneeeeecesseesenerereecesesssues\n14\n7.2\nVOtES.....cccccceeeeeeesvecssseacsacaesscasvecsssitaceacsatscaesseeeeucuneaneseees\n15\n7.3\nProperty Rights........ecccesessessesecsseeeeseeeesseeeeeeseeeeseesennes\n15\nASSESSMENTS........cccceccsssssescsnseeesseeeecssnecesseeesscusccesesccnsesensaes\n15\n8.1\nCreation ofAssessment Right; Covenants to Pay........\n15\n8.2\nLien for Assessments; Remedies; Foreclosure.............\n16\n8.3\nDates Assessments Commence; Declarant\'s\nOD]Gations 0...ee escessseeoeeeeeeseeeseesecseetsenseeseesseeesesenees\n17\n8.4\nComputation of Assessments; Annual Budget.............\n17\n8.5\nDue Dates .0......cecsseecssssesesssscescsscesesereeseusestetasseeresenaes\n18\n8.6\nMaximum Annual Assessment............cccccccsssssssscsessees\n18\n8.7\nSpecial ASSCSSMeEMtS.........scccccsscssserseesseeseesceteseveeeesnes\n19\n8.8\nWorking Capital Fund...eee cseseeesessesterseseensans\n19\n8.9\nTransfer Fee ........cccccccccssssssesesssecesssseeeeeenscssenssaseeeeecseees\n19\n8.10\nRecords and Statements of Payment...eeceseeeee\n19\n8.11\nDischarge of Liens..0.......ecceeesseesseessteetseeseecesnenenseseees\n19\n6/9/00\n \nARTICLE9\nARTICLE 10\nARTICLE 11\nARTICLE 12\nARTICLE 13\nARTICLE 14\n79975 v10\nUSE OF ASSOCIATION FUNDS 1.0...eee cecccesesceenteeesteenseneans\n9.1\nUse of Association Funds...........cccceeessscesestesssseeeeenes\n9,2\nBorrowing POWET .....sssscccsssesscrssssssessscsecseressesssenersens\n9.3\nAssociation\'s Rights in Spending Funds from Year20\ntO YOAL ....cceccccsssseccecsesecsssseececeesteaeseeseenseesenseetensarsetseeseens\nRIGHTS AND POWERSOF ASSOCIATION.oes\n10.1\nRights, Powers and Duties of the Association .............\n10.2\nAssociation\'s Rights of Enforcement........ce eeeeeeeees\n10.3\nContracts with Others...........:::cccccssessssssceesesecessereseseeees\n10.4\nProcedure for Change ofUse of CommonAreas.........\n10.5\nProcedure for Transfers of CommonAreas.................\nMAINTENANCE........eeccccscsecerseeesnceceseneeesesseetesetesentecsacserereesaees\n11.1\nCommon Areas and Public Rights-of-Way..............00.\n11.2\nWalls and Fences Between Lots and CommonAreas..\n11.3\nMaintenance and Repair....c.cccccecsescsssssssseecseseererseees\n11.4\nAssessment of Certain Costs of Maintenance and\nRepair ofCommon Areas and Public Areas 0.0.0...\nTERM; AMENDMENTS; TERMINATION... ccceseeceeeeeteees\n12.1\nTerm; Amendment .............cccccssecceccceessessseeecsssessseavees\n12.2\nRight of Amendmentif Requested by Governmental\nAgencyor Federally Chartered LendingInstitution....\nEMINENT DOMAIN AND INSURANCE (COMMON\nAREAS) vecccsssssecsccsssssssssscecesssssessecsessaveresssssuvecsesssssessessserssasaneesces\n13.1\nEminent Domain ............:e:seseessereccecceneccenessssccscceceneserecs\n13.2\nAssociation\'s Authority to Purchase Insurance............\n13.3\nIndividual Responsibility; Disclaimer of Liability......\n13.4\nInsurance Claims..........ccccccsccscscescscsssssssscesccesserserseserees\nADDITIONAL TERMS...0.ce ceessecnescseetsereeeseesseesenaeeatecenseees\n14.1\nEnforcement...........cccccscseseessceccssecessecsscnsssncesseseseeueesereas\n14.2\nNoticeofViolation:\nCe Pees Vo ewevesa sees seesaw ceseens eee eettteese\n  \n \nSCs esd pecan dal aeeasevesensnns\n20\n20\n20\n20\n20\n20\n20\n21\n21\n21\n22\n22\n22\n23\n23\n23\n23\n24\n24\n24\n24\n25\n25\n25\n25\n26\n26\n6/9/00\n79975 v10\n14.4\nInterpretation of the Covenants ..........ccsesesereresetneres\n14.5\nSeverability ........ccescesetsesseseeesessecneseseseseeeteeaseeneeenee\n14.6\nRule Against Perpetuities 0...cscs esetsteesee tees\n14.7\nChange of Circumstances .......cccsesscssssesseestsseeeseneees\n14.8\nGender and Number...cece sseeesteeesseeeeseessnersanes\n14.9\nCaptions; References to Articles or Sections. ...............\n14.10\nApprovals Required...cc eeesscseseecessestsceeeteeerersenetees\n \n26\n26\n26\n27\n27\n27\n6/9/00\nDECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS\nAND EASEMENTS\nFOR KAUFMAN AND BROAD AT ARIZONA GOLDFIELD\nTHIS DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS\nAND EASEMENTSis executed to be effective as of the 10th day of July\n, 2000,\nby Kaufman and Broad of Arizona, Inc. ("Declarant").\nRECITALS:\nA.\nDeclarant is the owner of certain real property located in Apache\nJunction, Arizona described on Exhibit A attached hereto and incorporated herein by this\nreference (the "Property"), to be developed as a community known as "Kaufman and Broad\nat Arizona Goldfield" (the "Project").\nB.\nDeclarant desires to form an Arizona nonprofit corporation to be known\nas the "Arizona Goldfield Homeowners Association" for the purposes of, amongotherthings,\n(i) holdingtitle in fee or otherwise controlling all or portions of the CommonAreas, in regard\nto which the Association will be delegated certain powers to construct, administer, operate,\nrepair and maintain the Common Areas and enforce this Declaration; and (ii) establishing,\ncollecting, disbursing and enforcing the Assessments provided for or created herein.\nC.\nDeclarant desires and intends that the Property shall be held, sold,\nleased\nand/or\notherwise\nconveyed\nsubject\nto\nthe\neasements,\nrestrictions,\ncovenants,\nconditions, servitudes, assessments, liens and reservations in this Declaration, which:\n(i) are\nfor the purpose of protecting the desirability and attractiveness of the Property; (ii) shall run\nwith all of the real property comprising the Property; (ili) shall be binding on all parties\nhaving anyright, title or interest in the Property, or any part thereof; and (iv) shall inure to\nthe benefit of said parties and their successors and assigns.\nNOW, THEREFORE, Declarant, as the present fee owner of the Property,\nhereby declares, covenants and agrees as follows:\nARTICLE1\nDEFINITIONS\nAs used in this Declaration, the following terms shall have the following\nmeanings:\n“Affiliate” of a Person means a Person that controls, is controlled by or is\nunder commoncontrol with such other Person.\n"Agency\'’ means FHA, VA, Federal National Mortgage Corp., Federal Home\nLoan Mortgage Corp.,\nor other governmental,\nquasi governmental or private agency\nproviding residential loan financing, guaranteesorother accommodations.\n  \n79975 v10\n"Articles"\' means the Articles of Incorporation of the Association, as amended\nor restated from timeto time, on file with the Arizona Corporation Commission.\n"Annual Assessments\'\' means the Assessments levied by the Board pursuant\nto Section 8.4.\n \n\'\'Assessments" meansall assessments levied pursuant to Article 8 and all fees,\nfines, penalties and charges due under this Declaration or the Association Rules.\n"Association" means\n"Arizona Goldfield Homeowners Association",\nan\nArizona nonprofit corporation, and its successors and assigns; however, if such nameis not\navailable, Declarant reserves the right to use such other available namethat it chooses.\n"Association Rules" means the reasonable rules and regulations adopted by\nthe Association pursuant to Section 6.3.\n"Board" means the Board of Directors of the Association.\n"Bylaws" means the Bylaws of the Association, as amendedor restated from\ntime to time.\n"City" means the City ofApache Junction or other municipality within which\na portion of the Property may be located noworin thefuture.\n"Class A Member"has the meaning givento it in Section 7.2.\n"Class B Member"has the meaning givento it in Section 7.2.\n"Committee" means the Design Review Committee formed pursuant to\nArticle 4.\n"Common Areas" means (a) those portions of the Project, together with the\nbuildings, structures and Improvements thereon, which the Association may, from time to\ntime, own in fee or in which it may have an easementinterest, for as long as the Association\nholds fee title or an easementinterest; (b) all land within the Project which Declarant, by this\nDeclaration or in any other Recorded instrument, makes available for use by Membersof the\nAssociation or otherwise designates as Common Areas for purposes of this Declaration; (c)\nall land or right-of-way easements within the Project which are dedicated to the public or to\nthe City, but which the City or other governmental agency requires the Association to\nmaintain; (d) any andall private internal streets; and (e) any other areas with respect to which\nthe Association has assumed in writing administrative or maintenance responsibilities.\n"Common Expenses" means the expenses of operating the Association,\nincludingall expenseslisted in Section 8.1 or Section 9.1.\n"Declarant" means Kaufman and Broad of Arizona,\nInc.,\nan Arizona\ncorporation, and each Affiliate thereof including Kaufman and Broad Home Sales of\nArizona, Inc. and any assignee of Declarant\'s rights.\nDeclarant may assign its rights by\nexpress recorded instrument to a subsequent ownerofall or part of the Property.\n79975 v10\n6/9/00\n \n"Declaration" means this Declaration of Covenants, Conditions, Restrictions\nand Easements, as amended or supplemented from time to time as herein permitted.\n"Desion Guidelines" has the meaning givento it in Section 4.1.\n"Dwelling Unit" means any building, or part thereof, situated upon a Lot and\nintended for use and occupancyas a residence.\n"FHA" means the Federal Housing Administration.\n"First Mortgage" means a deed oftrust or mortgage recorded against a Lot\nwhich haspriority overall other deeds of trust or mortgages recorded against the same Lot.\n"Improvement" means any building, wall, structure, landscaping, equipment\nor other item and any addition, alteration, repair, change or other work regarding any such\nitem, including exterior paint, which in any wayalters the exterior appearance of any part of\na Lot and is Visible From Neighboring Property.\n"Lot" means a lot shown on the Recordedplat for the Property upon which a\nDwelling Unit can be constructed and occupied pursuant to applicable law.\n"Member" means any Person entitled to a membership in the Association\nhereunder.\n"Membership" means the combination of rights and duties of Membersin the\nAssociation.\n"Occupant" means any Person, other than an Owner, occupying or in\npossession of a Lot, or any portion thereof or any building or structure thereon, whether as a\nlessee undera lease or otherwise.\n"Owner" (when capitalized) means (and any reference in this Declaration to\n"own", "owned" or "ownership" when used in reference to a portion of the Property shall be\ndeemedto include) the Record holder of legaltitle to the fee simple interest in any Lot or, in\nthe case of a Recorded "contract," as that term is defined in A.R.S. § 33-741(2), then the\nholder, of Record, of the purchaser\'s or vendee\'s interest under said contract, but excluding\nothers who hold suchtitle merely as security. If fee simple title to a Lot is vested of Record\nin a trustee pursuant to A.R.S. § 33-801 et seq., then for purposes of this Declaration legal\ntitle shall be deemed to be held by the trustor (or the trustor\'s successor of Record), and not\nby the trustee.\n"Person" means a natural person, corporation, partnership, trustee or any\nother legal entity.\n"Project" means the planned community known as "Kaufman and Broad at\nArizona Goldfield" to be developed on the Property.\n"Property" meansthe real property more particularly described on ExhibitA\nattached hereto and incorporated bythis reference.\n  \n79975 vi0\n6/9/00\n"Record" "Recording" and "Recorded" means placing or having placed a\ndocumentof public record in the Official Records of Pinal County, Arizona.\n"Special Assessments"’ means the assessments, if any, levied by the Board\npursuant to Section 8.7.\n"VA" shall mean the United States Veterans’ Administration.\n"Visible From Neighboring Property" means, with respect to any given\nobject, that all or a part of such object is or would be visible to an individualsix (6) feettall,\nstanding at ground level on any portion of any Lot, tract or street within the Project.\nARTICLE2\nPROPERTY AND PERSONS BOUND BY THIS DECLARATION\n2.1\nGeneral Declaration.\nThis Declaration is established for the purpose\nof enhancing the value, desirability and attractiveness of the Property.\nDeclarant hereby\ndeclares that all of the Property is and shall be held, conveyed, hypothecated, encumbered,\nleased, occupied, built upon or otherwise used, improved or transferred, in whole or in part,\nsubject to this Declaration, as the same may be amended or modified from time to time. This\nDeclaration shall run with the Property for all purposes and shall be binding upon and inure\nto the benefit of Declarant, the Association, and all Owners and Occupants of the Property,\nany Person having an interest in all or a portion of the Property, and their successors in\ninterest.\n2.2\nDeclarant\'s\nDisclaimer\nof\nRepresentations.\nNotwithstanding\nanything to the contrary herein, Declarant makes no warranties or representations whatsoever\nthat the plans presently envisioned for the complete development ofthe Project can or will be\ncarried out, or that the Property is or will be committed to or developed for a particular (or\nany) use, or that if such real property is once used for a particular use, such use will continue\nin effect.\nWhile Declarant has no reason to believe that any of the restrictive covenants\ncontained in this Declaration are or may be invalid or unenforceable, Declarant makes no\nwarranty or representation as to the present or future validity or enforceability of any such\nrestrictive covenant. Any Owneror other Person acquiring title to a Lot or an interest in a\nLot in reliance on one or more of such restrictive covenants shall assumeall risks of the\nvalidity and enforceability thereof and by accepting a deed to a Lot agrees that Declarant\nshali have noliability with respect thereto.\nARTICLE3\nEASEMENTS AND RIGHTS OF ENJOYMENT IN THE COMMON AREAS\n3.1\nEasements and Rights of Enjoyment.\nEach Ownershall have a\nnonexclusive easement for use and enjoyment in and to the Common Areas which is\nappurtenant to and shall pass with the title to each Owner\'s Lot. All Occupants shall have a\nnonexclusive, nontransferable temporary license to use and enjoy the CommonAreas so long\nas they remain Occupants. Theforegoing:grants‘andrights are subject, among otherthings,\nto the following limitations:\nwoe\nPEEL\nBOP en)\nPub od\n   \n79975 vl0\n6/9/00\n(a)\nThe right of the Association to suspendthe voting rights and the\nright to use and enjoy the Common Areas of any Owneror the Owner\'s Occupant:\n(i)\nfor any period during which an Assessment remains\ndelinquent;\n(ii)\nfor a period not to exceed sixty (60) days for any\ninfraction of this Declaration or the Association Rules; or,\n(iii)\nfor successive 60-day periods if any such delinquency or\ninfraction is not corrected during any preceding suspension period;\n(b)\nThe right of the Association to regulate and control use of the\nCommon Areas pursuant to the Association Rules or otherwise in accordance with\nthis Declaration; and,\n(c)\nThe right of the Association to dedicate or transfer any part of\nthe Common Areas to any public agency, authority or utility for such purposes and\nsubject to such conditions as may be agreed to by the Association in accordance with\nSection 10.5.\nNotwithstanding the foregoing limitations, if ingress or egress to any Lot is\nthrough any part of the Common Areas, in no event shall an Owner or Occupant be denied\naccess to such Owner’s or Occupant’s Lot.\n3.2.\nDelegation of Use. Any Owner or Occupant, in accordance with the\nAssociation Rules and this Declaration, may delegate his rights of use and enjoyment in the\nCommon Areas to the members of his family or his Occupants, employees, customers or\nguests subject to the limitations set forth herein and in the Association Rules. Each Owneror\nOccupant shall cause his family members, tenants, other Occupants, employees, invitees,\npermitees and guests to comply with this Declaration, the Articles, the Bylaws, and the\nAssociation Rules and, to the extent permitted by applicable law, shall be responsible and\nliable for all violations and losses caused by such family members, tenants, other Occupants,\nemployees,\ninvitees, permitees and guests, notwithstanding the\nfact that such family\nmembers, tenants, other Occupants, employees, invitees, permitees and guests are also fully\nliable for any violation of each andall ofthose documents.\n3.3.\nEasement for Common Areas Maintenance.\nThe Association shall\nhave an easement upon, over, under and across all Lots and other property within the Project\n(except property owned by Declarant) for the purpose of (a) repairing, maintaining and\nreplacing the Common Areas and all Improvements thereon, and (b) performing all other\nrights, duties and obligations of the Association under this Declaration.\n3.4\nUtility\nEasements.\nAll\nutility\ninstallations\nincluding,\nwithout\nlimitation, electrical installations, must be placed underground unless the prior written\nconsent is given by the Declarant while there is a Class B Membership, or by the Association\nafter the Class B Membership ceases to exist. Alleasements located in, on or under a\n  \n  \n79975 vi0\n6/9/00\nCommon Area must be specifically agreed to by Declarant while there\nis a Class B\nMembership,or by the Association after the Class B Membershipceasesto exist.\nARTICLE 4\nDESIGN CONTROL\n4.1\nDesign Review Committee.\nDeclarant shall establish the Committee\nto perform the functions ofthe Committee set forth in this Declaration. The Committee shall\nadopt procedural rules and regulations for\nits performance of such\nduties, including\nprocedures for the preparation, submission and consideration of the application for any\napprovals required by this Declaration.\nThe Committee shall make\nits decision on an\napplication for approval within sixty (60) days of the submission of such application.\nIf the\nCommittee fails to respond to an application, the application shall be deemed disapproved.\nThe Committee shal! consist of such number of regular members and alternate members as\nDeclarant may designate. All such membersshall be appointed by Declarant for so long as\nDeclarant owns property within the Project. Thereafter, the members of the Committee shall\nbe appointed by the Board. The Committee shall promulgate design guidelines (herein, as\namended from time to time, "Design Guidelines") to be used by the Committee in rendering\nits decisions. The Committee shall have all the powers, duties and authority conferred upon\nit by this Declaration and the Design Guidelines. The decisions of the Committee shall be\nfinal on all matters submitted to it pursuant to this Declaration.\n4.2.\nVariances. The Committee may grant variances from the standardsset\nforth in the Design Guidelines if the Committee determines the matter permitted under the\nrequested variance will not have a substantially adverse\naffect on other Owners and\nOccupants andis consistent with the high quality of life intended for the Project.\n4.3\nFee. The Committee may establish a reasonable fee from time to time\nto defer the costs of the Committee in considering any requests for approvals submitted to the\nCommittee, which fee shall be paid at the time the request for approval is submitted. The\nCommittee may also authorize supplemental fees to cover the cost of retaining consultants\nand other professional services needed to evaluate properly any matter submitted to the\nCommittee for review.\n4.4\nPersonal Liability. No Committee member, Declarant, or officer or\ndirector of the Association (subject to any mandatory limitations imposed by A.R.S. § 10-\n3202 or other applicable law) shall be personally liable to the Association, any Owner, or to\nany other Person, for any damages, losses, costs, fees (including reasonable attorneys’ fees),\nor any prejudice suffered or claimed on account of any oftheir acts or omissions (including,\nwithout limitation, errors and negligence) except to the extent such Committee member,\nDeclarant, officer or director intentionally inflicts harm on the Association or its Members,\nintentionally violates criminal law, receives a financial benefit to which such person was not\nentitled, or is liable for an unlawful distribution under A.R.S. § 10-3833 or other applicable\nlaw.\n79975 vi0\n6/9/00\n \n4.5\nProvisions if No Committee.\nIn the event there is no Committee in\nexistence, then the Board shall undertake the Committee\'s responsibilities hereunder,\nincluding withoutlimitation approvals required by this Declaration.\nARTICLE 5\nPERMITTED USES AND RESTRICTIONS\n5.1\nResidential Purposes.\nNo gainful occupation, profession, business,\ntrade or other nonresidential use shall be conducted on or in any Dwelling Unit, provided that\nan Owner or Occupant may conduct limited business activities in a Dwelling Unit so long as\n(a) the existence or operation of the business activity is not apparent or detectable by sight,\nsound or smell from outside the Dwelling Unit; (b) the business activity conformsto all\napplicable zoning requirements; (c) the business activity does not involve door-to-door\nsolicitation of other Owners and Occupants; (d) the business activity does not generate drive-\nup traffic or customer or client parking; and (e) the business activity is consistent with the\nresidential character of the property, does not constitute a nuisance or a hazardous or\noffensive use, and does not threaten the security or safety of other Owners, as may be\ndetermined in the sole discretion of the Board.\n5.2.\nAnimals. No animal, bird, livestock, poultry or fowl of any kind, other\nthan a reasonable number of generally recognized house pets (as determined by the Board\nand set forth in the Association Rules) shall be maintained on or in any Lot and then only if\nthey are kept or raised thereon solely as domestic pets and not for commercial purposes.\nNotwithstanding the foregoing, no pets may be kept upon the Property or on or in any Lot\nwhich, in the opinion of the Board, result in any annoyance or are obnoxious to Owners or\nOccupants of other Lots in the vicinity.\n5.3.\nGarbage.\nNo garbage, trash or debris shall be allowed, stored or\nplaced on a Lot except in sanitary, covered containers. In no event shall such containers be\nVisible From Neighboring Property, except for a reasonable time immediately prior to and\nafter collection.\nAll trash and garbage shall be regularly removed from each Lot and shall\nnot be allowed to accumulate thereon. No incinerator shall be maintained on any Lot and no\ntrash, garbage or debris shall be burned thereon by open fire or otherwise. The Board shall\nhave the right to require all Owners and Occupants to place trash and garbage in containers\nlocated in areas designated from time to time by the Board or the City. Without limiting the\nforegoing, the Owners and Occupants of all Lots which are located on private drives (Tracts\nVV, WW, XX, YY, ZZ, AAA, BBB, CCC, DDD, EEE, FFF, GGG, HHH, JJJ, KKK, LLL,\nMMM,NNN,PPP, QQQ, RRR, SSS, TTT, UUU, VVV, WWW, XXX, YYY, ZZZ, AAAA,\nBBBB, CCCC, DDDD, EEEE, FFFF, GGGG, HHHH,JJJJ, and KKKK ) shall be required to\nplace refuse receptacles on the private accessway (Tract TT, also called Chaparral Road,\nBowman Road, 35th Avenue and Conestoga Road).\n5.4\nClothes Drying Facilities. No outside clotheslines or other facilities\nfor drying or airing clothes shall be placed onanyILot\nt unless they are not Visible From\nNeighboring Property.\nLs\nml)\not\n79975 vl\n6/9/00\n \n5.5\nWindow Coverings.\nIn no event shall the interior or exterior of any\nwindows be covered with reflective material, such as foil, or with paper, bed sheets or other\ntemporary coverings.\n5.6\nGarages and Driveways. Theinteriorof all garages situated upon the\nProperty shall be maintained by the respective Owners or Occupants thereof in a neat and\nclean condition. Such garages shall be used for parking vehicles and storage only, and shall\nnot be used or converted for living or recreational activities.\nGarage doors shall be kept\nclosed at all times except to the limited extent reasonably necessary to permit the entry or\nexit of vehicles or persons.\nAll driveways on Lois shall be of concrete construction.\nDetached garages shall not be permitted.\n5.7\nImprovements and Construction.\nThe design, size, color, location\nand elevation of any Improvement or landscaping which is Visible From Neighboring\nProperty, and all changes thereto, must be approved by the Committee prior to installation.\nAll Improvements and landscaping constructed or installed by or for Declarant and all\nchanges thereto done by or for Declarant shall be conclusively deemed approved by the\nCommittee. A storage shed, other equipment and other Improvements which is/are Visible\nFrom Neighboring Property may not be placed or installed on a Lot unless approved by the\nCommittee and such approval may be withheld in the Committee\'s sole discretion.\nOnly\nhouses constructed on the Property in accordance with this Section 5.7 shall be occupied as\nresidences.\n|\n5.8\nHeating, Ventilating and Air Conditioning Units.\nNo heating, air\nconditioning or evaporative cooling units or equipment shall be placed, constructed or\nmaintained upon the Property, including, but not limited to, upon the roof or exterior walls of\nany structure on any part of the Property unless:\n(a) where such unit or equipmentis\ninstalled upon the roof of any structure upon the Property, such unit or equipmentis fully\nscreened from view from any adjacent Lots by a parapet wall which conformsarchitecturally\nwith such structure; or (b) in all other cases, such unit or equipmentis attractively screened\nor concealed and is not Visible From Neighboring Property, which means of screening or\nconcealment shall (in either case (a) or (b)) be subject to the regulations and approval of the\nCommittee.\n5.9\nSolar Collection Panels or Devices. Declarant recognizes the benefits\nto be gained by permitting the use of solar energy as an alternative source of electrical power\nfor residential use. At the same time, Declarant desires to promote and preservethe attractive\nappearance of the Property and the Improvements thereon, thereby protecting the value\ngenerally of the Property and the various portions thereof, and of the various Owners’\nrespective investments therein. Therefore, subject to prior approval of the plans therefor by\nthe Committee, solar collecting panels and devices may be placed, constructed or maintained\nupon any Lot within the Property (including upon the roof of any structure upon any Lot), so\nlong as either:\n(a) such solar collecting panels and devices are placed, constructed and\nmaintained so as not to be Visible.From:Neighbvoring:Property; or (b) such solar collecting\npanels and devices are placed, constructed and.mz\nictedand: maintained.in.susklecation(s) and with such\n  \n \n79975 vi0\n6/9/00\nmeans of screening or concealment as the Committee may reasonably deem appropriate to\nlimit, to the extent possible, the visual impact of such solar collecting panels and devices\nwhen viewed by a person six (6) feet tall standing at ground level on adjacent properties.\nTherestrictions in this Section 5.9 shall be subject to any limitations imposed by law.\n5.10\nAntennas, Poles and Towers.\nNo antenna, aerial, satellite dish or\nother device for the transmission or reception of television or radio (including amateur or\nham radio) signals of any kind (collectively referred to herein as "antennas") will be allowed\noutside the Dwelling Unit, except:\n(a)\nThose antennas whose installation and use is protected under\nfederal law or regulations (generally, certain antennas under one meter in diameter),\nprovided that an application for such an antenna must be submitted to the Committee\nand such application will be approved onlyif:\n(i)\nthe antenna is designed to assure the minimal visual\nintrusion possible (i.e., is located in a manner that minimizes visibility from\nthe street or other Lots); and\n(ii)\nthe antenna complies to the maximum extent feasible\nwith\nthe Design\nGuidelines\nwithin\nthe\nconfines\nof applicable\nfederal\nregulations\n(i.e.,\nwithout\nprecluding\nreception\nof\nquality\nsignal,\nor\nunreasonably increasing the cost of the antenna).\nUpon the written request of the Owner when submitting the application, the\nCommittee shall consider such an application on a expedited basis and shall\nstrive to render a decision within seven days, but in no event [ater than\nfourteen days, from the date the applicant submits a complete application.\nor\n(b)\nDishes 18" in diameter or smaller in locations approved by the\nCommittee for rear or side yard locations and appropriately screened.\nAny transmission cable for a receiver to the house must be underground. Therestrictions in\nthis Section 5.10 shall be subject to any limitations imposedby law.\n5.11\nBasketball Goals.\nExcept as permitted by the next sentence, no\nbasketbali goal or similar structure or device (whether mounted on a pole, wall or roof) shall\nbe placed or constructed upon the front yard, front elevation or front roof surface of any\nstructure on any part of the Property. A basketball goal may be permitted which is mounted\non a free standing pole and which complies with the Association Rules and Design\nGuidelines adopted by the Board.\nInitial guidelines are attached as Exhibit B hereto and\nincorporated herein by this reference and may be amended by the Board from time to time.\nFor purposes of the foregoing sentence, the term "front" shall be deemed to mean visible\nfrom groundlevel view from the street(s) running immediately in front of or along the side of\na Dwelling Unit or other structure.0 esos seen\n  \n79975 v10\n6/9/00\n5.12\nVehicles.\nPrivate, non-commercial, passenger automobiles or pickup\ntrucks which, when including all attachments (including, without limitation, racks and\nshells), do not exceed one (1) ton in carrying load or cargo capacity, eighty-four (84) inches\nin height or width or two hundred twenty-eight (228) inches in length, may be parked on the\nProperty within a garage or in a private driveway appurtenant to a Dwelling Unit but except\nas provided in the next sentence may not be parked elsewhere on the Property orstreets\nadjoining the Property.\nThe preceding sentence shall not preclude occasional overflow\nparking in a street right-of-way for guests or other reasonable purposes provided that no\ninconvenience is imposed on the Owners or Occupants of other Lots.\nNo other vehicle\n(including, but not limited to, mobile homes, motor homes, boats, recreational vehicles,\ntrailers, trucks, campers, permanent tents, or similar vehicles or equipment, commercial\nvehicles, or vehicles exceeding one (1) ton in carrying load or cargo capacity, eighty-four\n(84) inches in height or width, or two hundred twenty-eight (228) inches in length or similar\nvehicles or equipment) shall be kept, placed or maintained upon the Property or any roadway\nadjacent thereto, except:\n(a) within a fully-enclosed garage appurtenant to a Dwelling Unit;\nor (b) in such areas and subject to such rules and regulations as the Board may designate and\nadopt in its sole discretion (and the Board in its sole discretion may prohibit such other\nvehicles and equipment completely).\nNo vehicle (including, but not limited to, those\nenumerated in the preceding sentences) shall be constructed, reconstructed or repaired on the\nProperty or any roadway therein or adjacent thereto except within a fully enclosed garage.\nNo motor vehicles of any kind which are not in operating condition shall be parked in any\nunenclosed parking areas (including, but not limited to, private driveways appurtenant to a\nDwelling Unit).\nThe provisions of this Section 5.12 shall not apply to (a) vehicles of\nDeclarant or its employees, agents, Affiliates, contractors or subcontractors during the course\nof construction activities or sales activities upon or about the Property, or (b) vehicles used\nby the Association in repairing, maintaining and replacing the Common Areas and all\nImprovements thereon, and in performing all other rights, duties and obligations of the\nAssociation underthis Declaration.\n5.13\nFences, Interferences and Obstructions.\nNo fence, wall, hedge,\nshrub or other plant which obstructs sight lines at elevations between two (2) feet and six (6)\nfeet above adjacent public streets shall be permitted on any corner Lot within the triangular\narea formed by the streets and a straight line connecting those property lines at points\ntwenty-five (25) feet from the intersection of those property lines (or, in the case of a\nrounded Lot corner, from the intersection of those property lines as extended). Notree shall\nbe permitted to remain within such area unless the foliage line is maintained a\nsufficient\nheight to prevent obstruction of such sightlines.\n5.14\nLeasing; Obligations of Tenants and Other Occupants. All tenants\nshall be subject to the terms and conditions of this Declaration, the Articles, the Bylaws and\nthe Association Rules. Each Ownershall cause his, heror its tenants or other Occupants to\ncomply with this Declaration, the Articles, the Bylaws and the Association Rules and, to the\nextent permitted by applicable:iaw,:shall:be-resporisible and liable for all violations and\nlosses caused by such tenants or\nOccupants;\nnotwithstandingthefact that such tenants or\n      \n \n79975 v10\n6/9/00\nOccupants are also fully liable for any violation of each and all of those documents. No\nOwner maylease less than his, her or its entire Lot. No Lot may be leased for a period of\nless than thirty (30) days. The provisions of this Section 5.14 shall not apply to Declarant\'s\nuse of Lots owned by(or leased to) Declarant as a model homeor for marketing purposes.\n5.15\nLandscaping and Maintenance; Reconstruction. Within ninety (90)\ndays of acquiring an improved Lot, each Owner (other than Declarant) shall landscape(if not\nalready landscaped) such Lot and any public right-of way areas (other than sidewalks or\nbicycle paths) lying between the front or side boundaries of such Lot and an adjacentstreet.\nEach Ownershall maintain the landscaping on such Owner\'s Lot and any public right-of-way\nareas lying between the front or side boundaries of such Lot and an adjacent street and shall\nkeep the land free of debris and weeds at all times and promptly repair portions of the\nlandscaping which have been damaged.\nLandscaping plans shall be approved by the\nCommittee prior to installation and landscapingto be installed in compliance with applicable\nDesign Guidelines and the approved plans. Each Owner shall maintain the aforementioned\nlandscaping and exterior of the Owner\'s Dwelling Unit in a neat, clean and attractive\ncondition consistent in appearance with other properly-maintained, improved Lots within the\nProperty. As provided in Section 13.3, each Owner or Occupant is encouraged, but is not\nobligated, to obtain for such Person’s benefit property and casualty insurance insuring such\nPerson’s\nreal\nor\npersonal\nproperty\ninterests\non\nor\nwithin\nthe\nProperty.\nHowever,\nnotwithstanding the fact that an Owner or Occupant maintains, or fails to maintain, insurance\non his real or personal property interests on or within the Property, in the event any Dwelling\nUnit or other structure is totally or partially damaged or destroyed by fire, Act of God or any\nother cause, the Owner shall fully repair the damage and complete reconstruction of the\nDwelling Unit or other structure within eighteen (18) months after occurrence of the damage\nor destruction.\nThe provisions of this Section 5.15 shail not apply to any Lot or other\nproperty owned by Declarant.\n5.16\nSigns. No signs of whatever nature shall be placed on any Lot which\nare Visible from Neighboring Property except (a) signs required by legal proceedings; (b) a\nmaximum of two (2) street address identification signs for each individual residence, each\nwith a maximum face area of 72 square inches orless; (c) "for sale" and "for lease" signs no\nlarger than five (5) square feet; and (d) signs used by Declarant to advertise the Property\nduring the construction andsales period.\n5.17\nProhibited Uses. No use which is offensive by reason of odor, fumes,\ndust, smoke, noise, glare, heat, sound, vibration, radiation or pollution, or which constitutes a\nnuisance or unreasonable source of annoyance, or which is hazardousby reason ofrisk offire\nor explosion, or which is injurious to the reputation of any Ownershall be permitted on any\nLot. No use whichis in violation of the laws(after taking into account the application of any\nvalidly granted or adopted variance, exception or special use ordinance or regulation) of the\nUnited States, the State of Arizona, the City or any other governmental entity having\njurisdiction over the Property shallbe conducted on any Lot. The provisions of this Section\n5.17 shall not apply to any activity:ofDeclare nt.Or its employees, agents, Affiliates,\n   \n79975 v10\na\nAy:\noivee\ncuigs\n6/9/00\ncontractors or subcontractors during the course of construction activities or sales activities\nupon or about the Property.\n5.18\nDust Control. After the sale of a Lot by Declarant, the areas on each\nLot which are not improved with buildings ("Clear Areas") shall be landscaped as provided\nin Section 5.15. After a sale of the lot by Declarant, until such landscapingis installed, the\nClear Areas shall be maintained in a neat and attractive condition, free of weeds and debris\nand the Ownerthereofshall take necessary and appropriate measures to prevent and control\nthe emanation of dust and dirt from the Clear Areas, which may include the use of gravel,\ngrass, ground cover, or the sealing of the ground surface.\nAfter landscaping has been\ninstalled, each Owner shal! continue to maintain its Lot in a manner which minimizes the\npossibility of dust being transmitted into the air and over adjacent properties. Nothingin this\nSection 5.18 shall be interpreted to require Declarant to landscape a Lot before a sale of such\nLot by Declarant.\n5.19\nNuisances.\nNo rubbish or debris of any kind shall be placed or\npermitted to accumulate upon any portion of the Property for any unreasonable time, and no\nodors shall be permitted to arise therefrom, so as to render the Property or any portion thereof\nunsanitary, unsightly, offensive or detrimental to any other portion of the Property in the\nvicinity thereof or to its Owners or Occupants. No loud, noxious or offensive activity shall\nbe carried on or permitted on any Lot, nor shall anything be done thereon which maybe, or\nmay become, an annoyance or nuisance to Persons or property in the vicinity of such Lot, or\nwhich shall interfere with the quiet enjoyment of each of the Owners and Occupants.\nThe\nBoardshall havethe right, but not the obligation, to determine,in its sole discretion, whether\nthe provisions of this Section 5.19 have been violated. Any decision rendered by the Board\nshall be conclusive and shall be enforceable in the same manneras otherrestrictions in this\nDeclaration. The provisions of this Section 5.19 shall not apply to any activity of Declarant\nor its employees, agents, Affiliates, contractors or subcontractors during the course of\nconstruction activities or sales activities upon or about the Property.\n5.20\nDrainage. No Owner or Occupant shall interfere with the drainage\nestablished for his Lot, the Property or any other property adjacent to his Lot.\n5.21\nParty Walls. Except as provided in Section 11.2, the rights and duties\nof Owners of contiguous Lots which have shared walls or fences ("Party Walls") shall be as\nfollows:\n(a)\neach Owner shall have an equal right to use the Party Walls to\nthe extent such use does not interfere with the other Owner\'s use and enjoyment\nthereof;\n(b)\nif a Party Wall is damaged or destroyed through the act or\nomission of an Owner or the Owner\'s Occupants, agents, guests or family (whether or\nnot such act is negligent or otherwise culpable), such Owner shall be obligated to\nrebuild and repair the PartyWall at theOwner\'ssole expense (provided thatthis shall\nnot bar such Owner from1\ning: orseekingtto recover,»all or any part of such\n   \n  \n79975 v10\n6/9/00\nexpense from any insurer, Occupant, agent, guest or other Person who otherwise may\nbe liable to such Owner);\n(c)\nif any portion of a Party Wall is damaged or destroyed other\nthan by the act of an adjoining Owner or the Owner\'s Occupants, agents, guests or\nfamily, or deteriorates from ordinary wear andtear, it shall be the joint obligation of\nall Owners whose Lots adjoin such portion of the Party Wall to immediately rebuild\nand repair it, and the expense shall be ratably divided among such Owners based on\nthe amount of linear footage of their respective Lots located along such portion of the\nParty Wall;\n(d)\nif a dispute occurs between Owners regarding a Party Wall or\nthe sharing of the cost thereof, such Owners\nshall submit the dispute to the\nCommittee, whose decision shall be binding unless appealed to the Board, in which\nevent the Board\'s decision shall be binding and final. Notwithstanding any such\ndecision, no Owneris prohibited from seeking indemnity from the party causing the\ndamage;\n(e)\nThe Association shall have the right, but not the obligation, to\nperform any work which an Owner or Owner(s) fails to do in a timely manner. The\nOwner(s) responsible for such work shall upon demandpay all costs incurred by the\nAssociation together with interest\nat twelve percent (12%) per annum and an\nadministrative fee at ten percent (10%) of the amount incurred by the Association.\n5.22\nExemption of Declarant. Nothing contained in this Declaration shall\nbe construed to prevent the construction, installation or maintenance by Declarant (or its\ndesignated agents and contractors), during the period of development, construction, sales and\nmarketing on the Property, of any model homes andsales offices and parking incidental\nthereto, construction trailers, landscaping or signs deemed necessary or convenient by\nDeclarant, in its sole discretion, to the development, construction, sale and marketing of\nproperty within the Property.\n5.23\nMiscellaneous. The Board, in its good-faith discretion, may grant such\nwaivers of the restrictions contained in this Article 5 as it shall deem appropriate, so long as\nthe use permitted by such waiver shall not result in an unsafe, unsanitary or aesthetically\ndispleasing condition and shall not result, in the Board\'s discretion, in a substantial departure\nfrom the common plan of development contemplated by this Declaration.\nIn addition, the\nProperty shall continue at all times to be subject to applicable zoning laws and ordinances;\nprovided, however, that where the provisions of this Declaration are more restrictive than\nsuch lawsor ordinances, the provisions of this Declaration shall control.\nARTICLE6\nORGANIZATION OF ASSOCIATION\n6.1\nFormationof Association._ The Association shall be a nonprofit\nArizona corporation charged withihe’ dutics‘and‘vested with the powers prescribed by law\n   \n79975 v10\n6/9/00\nand as set forth in the Articles, the Bylaws and this Declaration. Neither the Articles nor the\nBylawsshall be amendedorinterpreted so as to be inconsistent with this Declaration.\n6.2.\nBoard of Directors and Officers. The affairs of the Association shall\nbe conducted by the Board and such officers as the Board mayelect or appoint in accordance\nwith the Articles and Bylaws. The Board may appoint various committees at its discretion.\nThe Board may also appoint or engage a manager and/or other staff members to be\nresponsible for the day-to-day operation of the Association. The Board shall determine the\ncompensation to be paid to each such employee.\n6.3\nAssociation Rules. By a majority vote of the Board, the Association\nmay, from time to time and subject to the provisions of this Declaration, adopt, amend and\nrepeal the Association Rules. The Association Rules mayrestrict and govern the use of the\nCommon Areas, provided that the Association Rules shall not discriminate among Owners\nand Occupants exceptto reflect their different rights and obligations as provided herein, and\nshall not be inconsistent with this Declaration, the Articles or the Bylaws. Upon adoption,\nthe Association Rules shall have the same force and effect as if they were set forth herein. A\ncopy of the Association Rules, as adopted or amended,shall be available for inspection at the\noffice of the Association.\n6.4\nPersonal Liability. No Board member, officer, committee member,\nemployee or representative of the Association, nor the Association, shall be personally liable\nto any Owner, or to any other Person, including the Association, for any damages, losses,\ncosts, fees (including reasonable attorneys’ fees), or any prejudice suffered or claimed on\naccount of any oftheir acts, omissions, errors or negligence, unless such person has engaged\nin willful or intentional misconduct.\nARTICLE 7\nMEMBERSHIPS AND VOTING\n7.1.\nMembership. Every Owner, including Declarant, automatically shall\nbe a Memberof the Association with voting rights as provided in this Declaration for so long\nas such ownership continues. A Person\'s Membership in the Association shall close and\nterminate immediately when such Person is no longer an Owner. Each Owner\'s membership\nin the Association shall be appurtenant to, and may not be separated from ownership of, the\nLot to which the membershipis attributable. In the event any Lot is owned by two or more\nPersons, whether by joint tenancy, tenancy in common, community property or otherwise,\neach such Person shall be considered a Member but the membership as to such Lot shall be\njoint, and such Persons shall jointly designate to the Association in writing one of their\nnumber whoshall have the power to vote said membership; provided, however, that if any\none of such Personscasts a vote or votes representing a Lot without objection from any other\nPerson sharing ownership of such Lot, that Person will thereafter be conclusively presumed\nto be acting with the authority and consent of all other Persons sharing ownership of such Lot\nunless and until objection theretais.made tg the.Board,.in writing, at or prior to the time the\nvote or votes are cast. NeitherMe bershi\ninthe. corporationnera\na Member\'s share, right,\n    \n79975 v0\n:\nPeuy Webel oki\n6/9/00\ntitle or interest in and to the funds and assets of the corporation can be transferred, assigned\nor hypothecated except as an appurtenance to the Member\'s ownership of a Lot. Membership\nmay be evidenced by an official list of Owners, which list shall be kept by the Secretary of\nthe Association and as provided by applicable law.\n7.2\nVotes.\nThe Association shall have two classes of voting Members.\nClass A Membersshall be all Owners except Declarant. A Class A Membershall have one\n(1) vote for each Lot owned by such Member. The Class B Membershall be Declarant. The\nClass B Membershall have three (3) votes for each Lot owned by Declarant. No change in\nthe ownership of a Lot shall be effective for voting purposes until the Board receives\nsatisfactory evidence\nthereof.\nFractional votes\nshall not be\nallowed.\nThe ClassB\nMembership shall automatically cease and be converted to a Class A Membership upon the\nhappeningofthefirst ofthe following events:\n(a)\nthe date which is one hundred twenty (120) days after the date\non whichthe total votes of the Class A Membersentitled to vote equals the total votes\nof the Class B Membership;\n(b)\nthe\ndate which\nis\ntwenty\n(20)\nyears\nafter\nthe\ndate\nthis\nDeclaration is Recorded; or\n(c)\nthe\ndate\non\nwhich\nDeclarant\nrelinquishes\nthe\nClass B\nMembership by notifying the Class A Members in writing.\n|\n7.3\nProperty Rights.\nEvery Ownershall have a non-exclusive right and\neasement of enjoymentin, to and over the CommonAreas, subject to this Declaration and to\nreasonable rules adopted by the Board pursuant hereto. Any Owner mayassign that right of\nenjoyment to (and share the same with) the members of his or her household and assign the\nsame to and share the same with his, her or its tenants and invitees subject to the provisions\nof this Declaration and to reasonable regulation by the Board. An Owner wholeaseshis, her\nor its Lot shall be deemed to have delegated such Owner\'s rights and easements underthis\nSection 7.3 to the lessee of such Lot for the term of such lease.\nARTICLE 8\nASSESSMENTS\n8.1\nCreation of Assessment Right; Covenants to Pay.\nIn order to\nprovide funds to enable the Association to meet its obligations and to create and maintain\nappropriate reserves, there is hereby created a right of assessment exercisable on behalf of the\nAssociation by the Board.\nAssessments (herein "Assessments") shall be for Common\nExpenses and shal] be allocated equally among ali Lots. Each Owner, by acceptanceofhis,\nher or its deed with respect to a Lot, is deemed to covenant and agree to pay the Assessments\nwith respect to such Owner\'s Lot. Each Owner failing to pay an Assessment within fifteen\n(15) days of the date that the Assessment is due shall also pay a late charge as set by the\nBoard from time to time. The initiallatecharge.shall. be the greater of fifteen dollars ($15)\n79975 v10\n6/9/00\n \namended from time to time.\nThe Owner shall also pay all costs and reasonable attorneys\'\nfees incurred by the Association in seeking to collect such Assessments and other amounts.\nThe Assessments with respect to a Lot, together with interest, costs and reasonable attorneys’\nfees as provided in this Section 8.1, shall also be the personal obligation of the Person who\nwas the Owner of such Lot at the time such Assessments arose with respect to such Lot;\nprovided, however, that the personal obligation for delinquent Assessments shall not pass to a\nsuccessor in title of such Owner unless expressly assumed by such successor. No Owner\nshall be relieved of the obligation to pay any of the Assessments by abandoning or not using\nhis, her or its Lot or the Common Areas, or by leasing or otherwise transferring occupancy\nrights with respect to his, her or its Lot. However, upon transfer by an Owneroffeetitle to\nsuch Owner\'s Lot, such transferring Ownershall not be liable for any Assessments thereafter\nlevied against such Lot.\nThe obligation to pay Assessments is a separate and independent\ncovenant on the part of each Owner. No diminution or abatement of Assessments or set-off\nshall be claimed or allowed by reason of the alleged failure of the Association or Board to\ntake some action or perform some function required to be taken or performed by the\nAssociation or Board under this Declaration, the Articles or the Bylaws.\n8.2\nLien for Assessments; Remedies; Foreclosure.\nThere is hereby\ncreated and established a lien in favor of the Association against each Lot which shall secure\npayment ofall present and future Assessments assessed or levied against such Lot or the\nOwnerthereof (together with any other amounts levied against such Lot or the Ownerthereof\npursuant to the Declaration or the Articles, the Bylaws or the Association Rules). Such lien\nshall be prior and superior to all other liens affecting the Lot in question, except: (a) taxes,\nbonds, assessments and other levies which, by law, are superior thereto; and (b) the lien or\ncharge of any First Mortgage.\nRecording of this Declaration constitutes record notice and\nperfection of the liens established hereby, and further Recordation of any claim ofa lien for\nAssessments or other amounts hereunder shall not be required, whetherto establish or perfect\nsuch lien or to fix the priority thereof, or otherwise (although the Board shall have the option\nto Record written notices of claims of lien in such circumstances as the Board may deem\nappropriate). The Board may invoke anyorall of the sanctions provided for herein, or any\nother reasonable sanction, to compel payment of any Assessmentor installment thereof, not\npaid when due (a "Delinquent Amount"). Such sanctions include, but are not limited to, the\nfollowing:\n(a)\nInterest_and Late Fees.\nThe Board may impose late fees and\ninterest in such amountsas it determines are appropriate from time to time, subject to\nany limitations stated in the Declaration or imposed bylaw;\n(b)\nSuspension of Rights.\nThe Board may suspend for the entire\nperiod during which a Delinquent Amount remains unpaid the obligated Owner\'s\nvoting rights and rights to use and enjoy the Common Areas;\n(c)\nCollection of Delinquent Amount. The Board mayinstitute an\naction at law to recover.amoney. judgment OF,any other proceeding to recover the\n79975 v10\n6/9/00\n \nDelinquent Amount, rent, interest and attorneys\' fees without foreclosing or waiving\nthe lien securing same;\n(d)\nRecording of Notice.\nThe Board may record a notice of lien\ncovering the Delinquent Amount plus interest and accrued collection costs as\nprovided in the Declaration.\nThe Board may establish a fixed fee to reimburse the\nAssociation or its representative for the cost of recording the notice, processing the\ndelinquency and recording a notice of satisfaction ofthe lien; and\n(e)\nForeclosure of Lien.\nThe Board may foreclose the Recorded\nlien against the Lot in accordance with then prevailing Arizona law relating to the\nforeclosure of realty mortgages (including any right to recover any deficiency). The\nsale or transfer of any Lot pursuant to a mortgage foreclosure or any proceeding in\nlieu thereof shall extinguish the lien of the Assessments as to payments which became\ndue prior to such sale or transfer, but shall not relieve such Lot from liability for any\nAssessments becoming due after such sale or transfer, or from the lien thereof. The\nAssociation shall have the power to bid for any Lot at any sale to foreclose the\nAssociation\'s lien on the Lot, and to acquire and hold, lease, mortgage and convey the\nsame. During the period the Lot is owned by the Association, no right to vote shall be\nexercised with respect to that Lot and no Assessment shall be assessed or levied on or\nwith respect to that Lot; provided, however, that the Association\'s acquisition and\nownership of a Lot under such circumstances shall not be deemed to convert the same\ninto Common Areas.\n \n8.3\nDates\nAssessments\nCommence;\n Declarant\'s\nObligations.\nAssessments shall be payable with respect to a Lot commencing with the initial conveyance\nof such Lot to a purchaser by Declarant (or by a trustee, for the benefit of Declarant).\nAssessments with respect to a Lot shall be prorated as of the date of such initial conveyance.\nDeclarant shall not be obligated to pay any Assessments with respect to Lots owned by\nDeclarant, provided that Declarant shall pay or contribute to the Association cash, goods or\nservices (as Declarant may elect) as may be necessary to make up any shortfalls in the budget\nof the Association resulting from Declarant\'s exemption from Assessments (but in no event\nshall Declarant be required to make such payments or contributions in excess of the\nAssessments Declarant would be required to pay, in the absence of this sentence, with respect\nto Lots owned by Declarant). Any Person who becomes an Ownerafter commencementof a\nfiscal year shall pay the Annual Assessment applicable to his Lot or Parcel as such becomes\ndue, and shall pay any Special Assessment levied on or after the date the Person becomes an\nOwner. The previous Owner of such Lot shall remain liable for all unpaid and delinquent\nAssessments levied against the Ownerof the Lot prior to such transfer of ownership.\n8.4\nComputation of Assessments; Annual Budget.\nThe Board shall\nadopt a budget for each fiscal year of the Association, which budget shall serve as the basis\nfor determining the annual Assessments (herein the "Annual Assessments") for the applicable\nfiscal year (subject to the limitationsof Nod.WearessAssessments shall be payable\n   \n  \n \n79975 v10\n6/9/00\nmeeting of the Board at which it adopts the budget for the year in question, the Board shall\ndeliver or mail to each Owner a copy of the budget and a statement of the amount of the\nAnnual Assessments to be levied against such Owner\'s Lot for that year. The failure to send\nor to receive such a statement shall not relieve any Ownerof his obligation to pay such an\nAssessment on or before the due date. All Assessments shall be payable to the Association.\nIn the event the Board fails to adopt a budget for any fiscal year prior to commencementof\nsuch fiscal year or fails to determine the Annual Assessments for any year, then until and\nunless such budget is adopted or the determination is made (as applicable), the budget (and\nthe amount of the Assessments provided for therein) for the year immediately preceding shall\nremain in effect.\nExcept as provided in Section 8.6, neither the budget nor any Annual\nAssessment levied pursuant thereto shall be required to be approved by the Ownersand the\nBoard may increase the Annual Assessments to meet the Association\'s expenses which\nexceed the amounts previously budgeted, if the Board determines that such Assessments\nbecomenecessary or desirable during the fiscal year.\n8.5.\nDue Dates. Assessments shall be due and payable as determined by the\nBoard. Assessments shall be deemed “paid” when actually received by the Association or by\nits designated manager or agent (but if any Assessments are paid by check and the bank or\nother institution upon which such check is drawn thereafter dishonors and refuses to pay such\ncheck, those Assessments shall not be deemed "paid" and shall remain due and payable with\ninterest accruing from the date such Assessments were originally due).\n8.6\nMaximum Annual Assessment.\nThe Annual Assessments provided\nfor herein shall not at any time exceed the "Maximum Annual Assessment," as determined in\naccordance with this Section 8.6.\nFor the fiscal year ending December 31, 2000, the\nMaximum Annual Assessmentshall be Thirty-Five Dollars ($35.00) permonth for each Lot.\nThereafter, except as provided below, unless a greater increase is approved by a vote of two-\nthirds (2/3) of the votes of each class of Members represented in person or by proxy at a\nmeeting of Members called for such purpose, the Maximum Annual Assessment for any\nfiscal year shall be equal to the Maximum Annual Assessment for the immediately preceding\nfiscal year increased at a rate equal to the greater of:\n(a) the percentage increase for the\napplicable fiscal year over the immediately preceding fiscal year in the Consumer Price\nIndex -- All Urban Consumers-- All Items (1982-1984 Average = 100 Base) published by\nthe Bureau of Labor Statistics of the U.S. Department of Labor(or its successor); or (b) ten\npercent (10%). Further, notwithstanding the foregoing, the Board may, without the approval\nof the Members, increase the Maximum Annual Assessmentfor any fiscal year by an amount\nsufficient to permit the Board to meet any increases over the preceding fiscal year in:\n(1) premiums for any insurance coverage required by this Declaration to be maintained by the\nAssociation; and (ii) charges for utility services necessary to the Association\'s performance\nof its obligations under this Declaration, notwithstanding the fact that the resulting increase\nin the Maximum Annual Assessment is greater than otherwise permitted under the third\nsentence of this Section 8.6.\nIncreases in Annual Assessments shall be subject to any\nlimitations imposed by A.R.S. §-33-1803:or:other:law.:ag such may be amended from timeto\ntime.\n:\now\nony\nSons\n    \n79975 v10\nuk\nghd\nPos\n6/9/00\n8.7.\nSpecial Assessments. In addition to levying Annual Assessments, the\nBoard may levy a Special Assessment, but only for the purpose of defraying, in whole orin\npart, the cost of any construction, reconstruction, repair or replacement of a capital\nImprovement owned by the Association or for defraying other extraordinary expenses,\nprovided, however, that such Special Assessment must be approved by at least two-thirds\n(2/3rds) of the votes of each class of Members voting in Person or by proxy at a meeting of\nthe Association duly called for such purpose.\nSpecial Assessments shall be assessed\nuniformly among the Owners.\nSpecial Assessments shall not be subject to the Maximum\nAnnual Assessmentlimitations set forth in Section 8.6.\n8.8\nWorking Capital Fund.\nTo insure that the Association shall have\nadequate funds to meet its expenses or to purchase necessary equipment or services, each\nPerson, with the exception of Declarant, who purchases a Lot shall pay to the Association\nimmediately upon becoming the Owner of a Lot a sum equal to one-sixth (1/6) of the current\nAnnual Assessment for the Lot. Funds paid to the Association pursuant to this Section 8.8\nmay be used by the Association for any purpose permitted under this Declaration. Payments\nmade pursuant to this Section 8.8 shall be nonrefundable and shall not be offset or credited\nagainst or considered as advance payment of any Assessments levied pursuant to this\nDeclaration. Assessments pursuant to this Section 8.8 shall not be subject to the Maximum\nAnnual Assessment pursuant to Section 8.6, but are secured by the lien created by Section\n8.2.\n8.9\nTransfer Fee. Each Person, other than Declarant, who purchases a Lot\nfrom a Person other than Declarant shall pay to the Association immediately upon becoming\nthe Ownerof the Lot a transfer fee in such amountasis established from time to time by the\nBoard. Assessments pursuant to this Section 8.9 shall not be subject to the Maximum Annual\nAssessment pursuant to Section 8.6, but are secured bythe lien created by Section 8.2.\n8.10\nRecords and Statements of Payment. The Treasurer shall cause to be\nkept detailed and accurate records, in chronological order, of the receipts and expenditures\naffecting the Common Areas and any other property owned or controlled by the Association,\nspecifying and itemizing the expenses incurred and expenditures made.\nAll records\nauthorizing such expenditures shall be available for examination by Owners at convenient\nhours designated by the Board. Within fifteen (15) days following the Board\'s receipt of a\nwritten request from any Owner, or such shorter time as may be required by applicable law,\nthe Board shall issue to the requesting party (or to the person designated by such requesting\nparty) a written statement stating that, as of the date of the statement:\n(a) all Assessments\n(including collection fees, interest, costs and attorneys\' fees, if any) have been paid with\nrespect to the Lot of such Owner; or (b) if any such amounts have not been paid, the\namount(s) then due and payable. Subject to the limitations of applicable law, the Association\nmay impose a reasonable charge for the issuance of such a statement which must be paid at\nthe time the request for such certificate is made.\n8.11\nDischarge.of Liens... TheBoard may cause the Association or any\nOwner or Occupant (by Assessitientt)to dischargeany,mechanics\'.or materialmen\'s liens or\n79975 v10\n6/9/00\n \nother encumbrances which in the opinion of the Board may constitute a lien against the\nCommon Areas.\nWhen less than all of the Owners are responsible for any such lien or\nencumbrance, those Owners that are responsible shall be jointly and severally liable for the\namount necessary to discharge the same, and for all costs and expenses, including but not\nlimited to attorneys\' fees, incurred in connection with such lien or encumbrance.\nARTICLE9\nUSE OF ASSOCIATION FUNDS\n9.1\nUse of Association Funds.\nIn addition to the powers enumerated in\nthe Articles and Bylaws, the Association shall apply all funds and property collected and\nreceived by the Association from any source ("Funds") for the common good and benefit of\nthe Property, the Owners and the Occupants. The Funds may be used, amongotherthings, to\ninsure, acquire, construct, alter, clean, maintain, supervise, provide and operate, in any\nmanner whatsoever, any and all land, properties, Improvements, services, projects, programs,\nstudies and systems within the Property and the Common Areas as may be necessary,\ndesirable or beneficial to the general commoninterests of the Owners and Occupants.\nIn\nconnection with the foregoing, the Funds may be used for the administration,\noffice\nexpenses, salaries and other personnel costs of the Association. The Association mayin its\ndiscretion collect and maintain Funds to be held in reserve for any of the uses referred to in\nthis Section 9.1.\n9.2.\nBorrowing Power.\nThe Association may borrow money in such\namounts, at such rates, upon such terms and security, and for such periods of time as the\nBoard deemsnecessary or appropriate, and may utilizeFunds to repay any such loans.\n9.3\nAssociation\'s Rights in Spending Funds From Year to Year.\nThe\nAssociation shall not be obligated to spend in any year all Funds received by it in such year,\nand the Board maycarry forward as surplus or hold in reserve (for general purposes or for\nspecified future expenditures) any balances remaining.\nThe Association shall not be\nobligated to reduce the amount of the Annual Assessments in any succeeding year if a\nsurplus or reserves exist from a prior year or years.\nARTICLE10\nRIGHTS AND POWERSOF ASSOCIATION\n10.1\nRights, Powers and Duties of the Association.\nIn addition to the\nrights and powers of the Association set forth in this Declaration, the Association shall have\nsuch rights and powersas are set forth in the Articles and Bylaws, together with suchrights,\npowers and duties as are granted by law or as may be reasonably necessary in order to effect\nall of the objectives and purposes of the Association as set forth herein. A copy of the\nArticles and Bylawsshall be available for inspection at the office of the Association during\nreasonable business hours.\n10.2\nAssociation\'s Rights of Enforcement. The Association, as the agent\nand representative of the Owners;shall havethetight,but notthe obligation, to enforce the\n  \n \n79975 v10\n§/9/00\nprovisions of this Declaration. Further, Declarant and any other Owner, so long as Declarant\nand such other Owner ownsproperty within the Project, shall have the right and authority,\nbut not the obligation, to enforce the provisions of this Declaration; provided that, any\nOwner, other than Declarant, desiring to enforce any provision of this Declaration shall first\nrequest that the Association enforce such provision, and if the Association fails to act upon\nsuch Owner’s request within a reasonable time, then such Owner may pursue enforcement of\nthe provisions on its own.\n10.3.\nContracts with Others.\nSubject to the restrictions and limitations\ncontained herein, or in the Articles, the Bylaws, and the laws of the State of Arizona, the\nAssociation may enter into contracts or other transactions with other parties, including\nDeclarant or its affiliated companies.\nSuch contracts or other transactions shall not be void\nor voidable because one or more directors or officers of the Association are employed by,\nhave a financial interest in or are otherwise affiliated with such other parties, including\nDeclarant or its Affiliates (even if such officer(s) or director(s) is present and/or votes at the\nmeeting of the Board or committee which authorizes the contract or transaction), if (a) the\nfact of such interest has been previously disclosed or made known to the other members of\nthe Board or the committee acting upon such contract or transaction, and (b) the transaction\nor contract is fair and reasonable. Notwithstanding the foregoing, any management contract\nentered into by the Association must be terminable, without penalty, by the Association for\ncause at any time and without cause upon reasonable notice.\n10.4\nProcedure for Change of Use of Common Areas. Upon adoption of\na resolution by the Board stating that the then current use of a specified part of the Common\nAreas is no longer in the best interests of the Owners and Occupants, and the approval of\nsuch resolution by not less than two-thirds (2/3rds) of the votes of all Members entitled to\nvote and voting in person or by proxy at a meeting duly called for such purpose, the Board\nshall have the power andright to change the use thereof (and in connection therewith to take\nwhatever actions are required to accommodate the new use), provided such new use: (a) also\nshall be for the common benefit of the Owners and Occupants; and (b) shall be consistent\nwith any Recorded deed and zoning regulations.\n10.5\nProcedure for Transfers of Common Areas.\nThe Association shall\nnot make any dedication or other transfer of the Common Areas, or mortgage or otherwise\nencumber Common Areas except upon:\n(i) the adoption of a resolution by the Board stating\nthat the transaction would be in the best interests of the Owners and Occupants, (ii) the\napproval of such resolution by not less than two-thirds (2/3rds) of the votes of each class of\nMembers; and (111) approval of the proposed action by VA and FHA,as applicable if required\nunder Section 14.10. Notwithstanding anythingto the contrary herein contained,if ingress or\negress to any Lot is through CommonAreato be dedicated, conveyed or encumbered, such\ndedication, conveyance or encumbrance shall be subject to an easement for ingress and\negress benefiting such Lot.\n.\n79975 v10\n6/9/00\n \nARTICLE11\nMAINTENANCE\n11.1\nCommon Areas and Public Rights-of-Way.\n11.1.1 Areas of Association Responsibility.\nThe Association, or its\nduly designated representative, shall maintain manage and control the Common Areas\nand shall keep the Common Areas in good, clean, attractive and sanitary condition,\norder and repair, pursuant to the terms and conditions hereof. The Association\'s costs\nof doing so shall be Common Expensesofthe Association. Such responsibilities shall\ninclude,\nwithout\nlimitation:\n(a)\nmaintenance,\nrepair and\nreplacement of\nall\nlandscaping\nsituated upon\nthe Common\nAreas;\n(b)\nmaintenance,\nrepair\nand\nreplacement of landscaping in or upon public rights-of-way immediately adjacent to\nthe Common Areas; (c) maintenance and repair of any andall private internal streets;\n(d) maintenance and repair of any and all water delivery systems within the Common\nAreas; and (e) operation of the valves to provide for the drainage of storm water in the\nretention basins but only after such time when the drainage system can accommodate\nthe increased volumeof retained water.\n11.1.2 Delegation of Responsibilities. The Board shall have the sole\ndiscretion to determine whether the Association or an individual Owner should be\nresponsible for maintenance of certain Common Areas or public rights-of-way\nconsidering cost, uniformity of appearance, location and other relevant factors.\n11.1.3 Standard of Care; Disclaimer of Liability.\nThe Association\nshall use a reasonably high standard of care in providing for the repair, management\nand maintenance of the Common Areas so that the Project will reflect a high degree\nof pride of ownership.\nThe Board, however, shall be the sole judge as to the\nappropriate\nlevel\nof maintenance\nof\nall Common Areas by the\nAssociation.\nNotwithstanding any duty the Association may have to maintain and repair the\nCommon Areas, the Association and Declarant shall not be liable for any injury or\ndamage caused by a latent condition or by any Member, Owner, Occupant or other\nPerson. Neither the Association nor Declarant shall be liable to any Person for any\nclaim, injury or damage arising from the use of the Common Areas and the same shall\nbe used at the risk of the user.\nDeclarant has no duty or obligation to maintain,\noperate, manage or repair the CommonAreas.\n11.2\nWalls and Fences Between Lots and Common Areas.\nIf a wallis\nlocated on the boundary line between Common Areas and a Lot, then the Association shall\nbe responsible for the painting and maintenance and repair of the surface on the side thereof\nthat faces the Common Areas and the top of such wall, and the Owner or Owners owning the\nopposite side of the wall shall be responsible for the maintenance, repair, painting and\nreplacement of such opposite side.\nIn the case of destruction of both sides of such wall or\nstructural damage, the Owner(s)owningLots adjacent to the wall shall be responsible for\none-half of the cost of replaceriént! or:rspair“of\'the. wall and the Association shall be\n    \n79975 vi0\n6/9/00\nresponsible for the other one-half.\nUnless originally constructed by or for Declarant or\notherwise approvedin writing by the Board or Committee, a wall may not be located on the\nCommon Areas unlessit is part of the Common Areas.\n11.3\nMaintenance and Repair. Every Owner and Occupant shall perform\npromptly all maintenance and repair work required by this Declaration, the Association\nRules, the Design Guidelines and the Bylaws. If (a) any portion of any Lot is maintained so\nas to present a nuisance, or substantially detracts from or affects the appearance or quality of\nany neighboring Lot or other area, or is used in a manner which violates this Declaration, or\n(b) the Owner of any Lot or the Occupant of such Owner\'s Lot, by willful or negligent act or\nomission, damages any Common Area, or (c) the Ownerof any Lot or the Occupant of such\nOwner\'s Lot\nfails\nto perform\nsuch Owner\'s\nobligations under\nthis\nDeclaration,\nthe\nAssociation Rules, the Design Guidelines, the Articles and the Bylaws, the Association, by\nBoard resolution, may make a finding to such effect, specifying the particular condition(s)\nthat exist, and thereafter give notice to the Ownerof such Lot that unless specified corrective\naction is taken within a specified time period the Association, at such Owner\'s expense, may\ntake whatever action is appropriate to compel compliance including, without limitation,\nappropriate legal action.\nIf at the expiration of the specified time period the requisite\ncorrective action has not been taken by the Owner, the Association shall have the right, but\nnot the obligation, at its sole discretion, to cause corrective action to be taken and/or to\ncommence appropriate legal action.\nThe cost thereof, including court costs and attorneys\'\nfees, together with all damages resulting from such Owner\'s or Occupants acts or failure to\nact, shall be added to and becomea part of the Assessments to which the offending Owner\nand the Owner\'s Lot is subject and shall be secured by the lien described in Section 8.2. The\nforegoing shall not limit the right of others to enforce the provisions of this Declaration as\ndescribed in Section 14.1\n|\n11.4\nAssessment\nof Certain\nCosts\nof Maintenance and Repair\nof\nCommon Areas and Public Areas. In the event that the need for maintenance or repair of\nCommon Areas and other areas maintained by the Association is caused through the willful\nor negligent act of any Owner, his or her family, guests or invitees, the cost of such\nmaintenanceor repairs shall be added to, and becomea part of, the Assessment to which such\nOwner and the Owner\'s Lot is subject, and shall be secured by the Assessment lien described\nin Section 8.2.\nARTICLE12\nTERM; AMENDMENTS; TERMINATION\n12.1\nTerm; Amendment. The covenants, conditions andrestrictions of this\nDeclaration as it may be amended from time to time: (a) shall run with and bind the Property,\n(b) shall inure to the benefit of and shall be enforceable by the Association or by the owner of\nany property\nsubject to this Declaration,\ntheir respective\nlegal\nrepresentatives,\nheirs,\nsuccessors and assigns; and (c) shall remain in full force and effect (as amended, if\napplicable) until January 1, 2015;ratewhichtime: saidconditions, covenants and restrictions\nshall automatically be extended forsuccessive.periodsoftwenty:five:(25) years each, unless\n  \n \n79975 v10\n6/9/00\nrevoked by an affirmative vote of:\n(i) Members holding not less than ninety percent (90%)\nof all Class A votes; and (ii) Declarant, so long as Declarant is an Owner.\nExcept as\notherwise provided herein, this Declaration may be amended only by the vote or written\nconsentof: (i) Members holding not less than sixty-seven percent (67%)of all Class A votes;\nand (ii) Declarant, so long as Declarant is an Owner. No amendmentto this Declaration shall\nbe effective until such amendmentis Recorded.\n12.2\nRight of Amendment if Requested by Governmental Agency or\nFederally Chartered Lending Institution.\nAnything in this Article 12 to the contrary\nnotwithstanding, Declarant reserves the right to amend this Declaration as may be requested\nor required by the FHA, VA orany other agency with whom Declarant elects to do business\nas a condition precedent to such agency\'s approval of this Declaration. Any such amendment\nshall be effected by Declarant recording an amendment duly executed and acknowledged by\nDeclarant specifying the agency requesting the amendmentandsetting forth the requested or\nrequired amendment(s). Recordation of such Amendmentshall be deemed conclusive proof\nof the agency\'s or institution\'s request or requirement and such Certificate, when Recorded,\nshall be binding uponall of the Property and all persons having an interest therein.\nARTICLE13\nEMINENT DOMAIN AND INSURANCE\n(COMMON AREAS)\n13.1\nEminent Domain.\nThe term "Taking" as used in this Section 13.1\nshall mean condemnation by eminent domain or sale under threat of condemnation.\nIn the\nevent of a threatened Taking of all or any portion of the Common Areas, the Owners hereby\nappoint the Board and such persons as the Board may designate to represent all of the\nOwners in connection with the Taking.\nThe Board shall act, in its sole discretion, with\nrespect to any awards madeor to be made in connection with the Taking andshall be entitled\nto make a voluntary sale to the condemnor in lieu of engaging in a condemnation action.\nAny awards received on account of the Taking shall be paid to the Association and shall\nconstitute Funds of the Association.\n13.2\nAssociation\'s Authority to Purchase Insurance.\nThe Association\nshall purchase and maintain such property damage and liability insurance upon the Common\nAreas and such other insurance as the Board, in its absolute discretion, may determine. The\nAssociation shall be the namedinsured in all policies providing such insurance. Neither the\nAssociation nor the Board, nor any Member of the Board or officer or agent of the\nAssociation, shall be liable to any Person for failure of the Association to secure and\nmaintain any such insurance coverage where such insurance coverageis not available in the\nState of Arizona at a reasonable cost and on other reasonable terms and conditions.\nNotwithstanding the foregoing, the Association shall obtain and maintain at all times, at the\nAssociation\'s expense, directors’ and officers’ liability insurance covering all officers and\ndirectors of the Association, as well as all regular and alternate members of the Committee,\n79975 v10\n* 6/9/00\n \nin amounts and on terms adequate to permit the Association to meet its obligations to\nindemnify such persons pursuantto the Articles and Bylaws.\n13.3.\nIndividual Responsibility; Disclaimer of Liability.\nIt shall be the\nresponsibility of each Owner or Occupant to provide insurance for himself on his real or\npersonal property interests on or within the Property, including, but not limited to, additions\nand Improvements thereto, furnishings and personal property thereon, and for his personal\nliability. No Person shall maintain any insurance which would limit or reduce in any manner\nthe insurance proceeds payable under the insurance maintained by the Association in the\nevent of darnage to the Improvements or fixtures on the Common Areas. The Association,\nany Board memberand Declarant shall not be liable to any Person or mortgagee if any risks\nor hazards are not covered by the insurance obtained by the Association or if the amount of\nsuch insuranceis not adequate.\n13.4\nInsurance Claims.\nThe Association is hereby irrevocably appointed\nand authorized by the Owners to adjust all claims arising under insurance policies purchased\nby the Association and to execute and deliver releases upon the paymentof claims, and to do\nall other acts reasonably necessary to accomplish any of the foregoing. The Board has full\nand complete power to act for the Association in this regard and may, at its discretion,\nappoint an authorized representative or committee, or enter into an insurance trust agreement\nwherein the trustee shall have authority, to negotiate losses under any policy purchased by\nthe Association. All proceeds from insurance acquired by the Association shall be payable to\nthe Association. Any proceeds resulting from damage to the CommonAreasshall be used to\nrepair the damage unless otherwise approved by a majority of the votes of each class of\nMembers at a meeting called for such purpose. Any proceeds remaining upon repair of such\ndamage may be retained by the Association as reserves or to reduce future Assessments.\nARTICLE 14\nADDITIONAL TERMS\n14.1\nEnforcement. The Association shall have the standing and powerto\nenforce the provisions of this Declaration, the Articles, the Bylaws and the Association Rules\nand to obtain injunctive relief and damages, and its costs in doing so, including, but not\nlimited to, reasonable attorneys\' fees, together with interest thereon from the date the costs\nare expendedat the rate oftwelve percent (12%) per annum,shall constitute a lien on all Lots\nowned by the Owner or Owners against whom the action is taken (or against whose\nOccupants the action is taken), which lien shall have the priority and may be enforced in the\nmanner described in Section 8.2. In addition, any Owner or Ownersshall have the standing\nand powerto enforce the provisions of this Declaration, the Articles and the Bylaws, and the\nprevailing party or parties in any action by an Owner or Owners to enforce any such\nprovisions shall be entitled to recover from the other party or parties its or their costs in such\naction (including reasonable attorneys’ fees), together with interest thereon at the rate equal\nof twelve percent (12%) per annum,» and shallfurther be entitled to have all such costs\n  \n79975 vi0\n6/9/00\naction shall in no event be deemed a waiver of the right to do so thereafter. While Declarant\nhas no reason to believe that any of the restrictive covenants contained in this Declaration are\nor may be invalid or unenforceable for any reason or to any extent, Declarant makes no\nwarranty or representation as to the present or future validity or enforceability of any such\nrestrictive covenant. Any Owner or other Person acquiring title or an interest in a Lot in\nreliance on one or more of suchrestrictive covenants shall assumeall risks of the validity and\nenforceability thereof and by accepting a deed to the Lot agrees to hold Declarant harmless\ntherefrom.\n14.2\nNotice of Violation. The Association shall have the right, but not the\nobligation, to Record a written notice of a violation by any Owner or Occupant of any\nrestriction or provision of this Declaration, the Articles, the Bylawsor the Association Rules.\nRecordation of a notice of violation shall serve as a notice to the Owner and Occupant, and to\nany subsequent purchaser of the Lot, that there is such a violation.\nNotwithstanding the\nforegoing, failure by the Association to Record a notice of violation shall not constitute a\nwaiver of any existing violation or evidence that no violation exists.\n14.3\nNo Partition. No Person acquiring any interest in the Property or any\npart thereof shall have a right to, nor shall any person seek, any judicial partition of the\nCommonAreas, nor shall any Ownersell, convey, transfer, assign, hypothecate or otherwise\nalienate all or any of such Owner\'s interest in the Common Areasor any funds or otherassets\nof the Association except in connection with the sale, conveyance or hypothecation of such\nOwner\'s Lot (and only appurtenant thereto).\n14.4\nInterpretation of the Covenants. Except for judicial construction and\nas hereinafter provided, the Association, by its Board, shall have the exclusive right to\nconstrue and interpret the provisions of this Declaration. In the absence of any adjudication\nto the contrary by a court of competent jurisdiction, the Association\'s construction or\ninterpretation of the provisions hereof shall be final, conclusive and bindingas to all Persons\nand property benefited or bound by this Declaration.\n14.5\nSeverability.\nIf any provision of this Declaration or any application\nthereof shall be invalid or unenforceable, the remainder of this Declaration and any other\napplication of such provision shall not be affected thereby.\n14.6\nRule Against\nPerpetuities.\nIf any of the\ninterests,\nprivileges,\ncovenants or rights created by this Declaration shall be unlawful, void or voidable for\nviolation of the Rule against Perpetuities or any related rule, then such provision shall\ncontinue until twenty-one (21) years after the death of the survivor of the descendants of the\nPresident of the United States living on the date this Declaration is Recorded.\n14.7\nChange of Circumstances. Except as otherwise expressly provided in\nthis Declaration, no change of conditions or circumstances shall operate to extinguish,\nterminate or modify any of the provisions of this Declaration.\n79975 vi0\n6/9/00\n \n14.8\nGender and Number.\nWherever the context of this Declaration so\nrequires, words used in the masculine, feminine or neuter genders, or the singular or plural\nnumber,shall each include the others.\n14.9\nCaptions; References to Articles or Sections.\nAll captions, titles or\nheadings of all Articles and Sections are for the purpose of reference and convenience only\nand are not to be deemedto limit, modify or otherwise affect any of the provisions hereof or\nto be used in determining the intent or context thereof. References to an Article or a Section\nwithout furtherattribution shall be deemedto refer to an article or a section, as the case may\nbe, of this Declaration.\n14.10 Approvals Required. For as long as there is a Class B Memberandif\nVA or FHA certification is desired by Declarant, the following actions will require the prior\napproval of the VA and FHA,unless such agencies have waived such requirements or unless\nthe last sentence of this Section 14.10 applies: (i) annexation of additional properties into the\nProject (unless such annexation is in accordance with a plan of annexation or expansion\npreviously approved by such agencies); (ii) mergers and consolidations; (111) mortgaging or\notherwise encumbering Common Area; (iv) dedication or other transfer of Common Areas;\n(iv) dissolution of the corporation; and (vi) amendment of provisions in the Articles, this\nDeclaration or the Bylaws to the extent required to be approved by the FHA or VA pursuant\nto their rules and regulations.\nConsent of the FHA and VA to the foregoing will not be\nrequired if the FHA and VA have elected not to approve the Project for certification or if\nsuch approval has been revoked, withdrawn, canceled or suspended.\n[SIGNATURE PAGE FOLLOWS]\n79975 v10\n6/9/00\n \nIN WITNESS WHEREOF,Declarant has caused this Declaration to be duly\nexecuted.\nKAUFMAN AND BROAD OF ARIZONA,\nINC., an Arizona fi17h\nBy\nAZAD\n{__\nItsLMiakacre!\n!\nSTATE OF ARIZONA)\n) ss.\n,\n2000,\nbefore\nme\n  \nit\nwho 4,acknowledged\nhimself\nto\nbe\nthe\n0ZL,Bina (er\nof Kaufman and Broad of Arizona, Inc. an Arizona\ncorporation, and‘that he, in such capacity,oq :\nxecuted the foregoing\n \n  \n  \n   \n \n \n   \n  \n  \ninstrument for the purposes therein contained.\n/\n77\n+\nif verypani\n;\n“OEFICIALSEAL"\nMarilyn N. Murphy\nNotary Public-Arizona\noe,\nMaricopa County\nS\nMy Commission Expires 9/18/2002_¢\nar ERI EY\nayOED\nMy Commission Expires:\n \n79975 v10\n6/9/00\n \nEXHIBIT A\n \nLEGAL DESCRIPTION\nAll Lots and Tracts as shown on “A Final Plat of Arizona Goldfield". recorded\non__\nJuly 6, 2000\n, 2000, in Cabinet\nC\n»Slide\n144.\n \n \nOfficial Records of the Pinal County Recorder. Pinal County. Arizona.\n \nT9975 910\nEXHIBIT\nB\nSPECIFICATIONS FOR BASKETBALL POLES,\nBACKBOARDS AND GOALS\nOnly pole-mounted backboards and goals are acceptable.\nBackboards shall not be\nattached to the house, garage or roof.\nBasketball poles must be painted to match houseor trim color.\nPoles must be set in the ground permanently, and must be centered between garage\nwall and back of sidewalk.\nBackboards must be of a predominantly neutral color (black, gray, white), or match\nthe house or trim color. Clear Plexiglas or glass backboards are acceptable.\nPortable or temporary goals are acceptable; however, they must be removed from\nvisibility after play has ceased (a goal may not remain out overnight).\nAll equipment must be constantly maintained. Broken backboards, disfigured or bent\nrims, ripped or torn nets, chipped and/or peeling paint, etc. constitute grounds for\nfines and/or removal.\nOnly nylon or similar cord nets are acceptable. Metal or chain nets are not acceptable.\nThe Ownerof the Lot with the basketball pole backboardis fully responsible for ball\ncontainment on his property.\nAny damage to neighboring property or landscaping\nfrom\nbasketballs\nshall\nbe\nthe\nproperty Owner\'s\n(with\nthe\ngoal\nor\nstandards)\nresponsibility to repair or replace.\nLots with basketball poles, backboards and goals that do not meet these requirements will be\nassessed fines in accordance with Association Rules and/or the Association\'s rates and/or\nremoved at the Owner\'s expense.\n79975 v10\n \n',
 140192: 'PMG Services\n \nArbor Lane Homeowners Association\nCC&Rs\n.\nOFFICIAL\nRECORDS\nOF\nMARICOPA COUNTY RECORDER\nHELEN\nPURCELL\n2003-1569582\n11/13/03\n14:35\n1\nOF\n1\nPALUHEOA\nWhen recorded return to:\nMatthew R. Berens, Esq.\nBERENS, KOZUB, LORD & KLOBERDANZ, PLC\n7047 East Greenway Parkway, Suite 140\nScottsdale, Arizona 85254\n|\nSECOND AMENDMENT TO\nDECLARATION OF COVENANTS, CONDITIONS\n+.\nAND RESTRICTIONS FOR\nARBORLANE\nThis Second Amendmentto Declaration of Covenants, Conditions and Restrictions for\nArborlane (the “Second Amendment “) is made and effective as of the 147 day ofNovember,\n2003, by MDM102 L.L.C., an Arizona limited liability company (“Declarant’’),\nRECITALS:\nA.\nWHEREAS,Declarant ownsthat parcel ofreal property situated in Maricopa County,\nArizona, more particularly described in Exhibit A, attached hereto (the “Parcel’’);\nB.\nWHEREAS, Declarant has subjected the Parcel to certain protective covenants,\nconditions, reservation, liens and chargesas set forth in Document No. 2002-0622641, and amended\nas set forth in Document No. 2003-1356733, records of Maricopa County, Arizona and the\nDeclaration ofAnnexation recorded at 2002-0911362 (the “Declaration”); and\nC.\nWHEREAS, Declarant, as the Owner of over sixty-seven (67%) of the Lots, now\nwishes to amend the Declaration.\nDECLARATION\nNow, THEREFORE,the Declarant hereby amends the Declaration and agrees as follows:\n1,\nCapitalized Terms. All capitalized terms utilized herem and not otherwise defined\nherein shall have the same meaningas set forth in the Declaration. \n \n \n2.  Annexed Property. Certainadditional real property previously annexed underthis\nDeclaration by the metes and boundslegal description as set forth on Exhibit A to Document No.\n2002-0911362, is hereby redesignated as Lots 1 through 47, inclusive, and Tracts A through L,\ninclusive, according to the Final Plat for Arborlane I, recorded October 9, 2003 in BookofMaps\n655, page 39, Document No. 2003-1418948, in the Official Records ofMaricopa County.\n3,\nMaintenance of Area Subject to License Agreement. The\narea\ndescribed\non\nExhibitA attached hereto, which is subject to a License Agreement between Salt River Project and\nthe Association, shall be maintained by the Association in all respects as ifit were a Common Area\ntract.\n-\n4,\nRemainder Unchanged. Except as specifically set forth above, the Declaration, as\namended contained in Document No. 2002-0622641, Document No. 2002-1356733and in\nDocument No. 2002-0911362, shall remain in full force and effect.\nIN WITNESS WHEREOF,this Second Amendment has been executed as ofthe date’ and year\n~\nfirst written above.\n“DECLARANT”\nMDM102 L.L.C., an Arizona limited\nliability company\nBy: McLean Real Estate Services, Inc., an\nArizona corporation, Manager\n=)\n \n|\nIts: President\n \n \nSTATE OF ARIZONA\n_s*)\n) ss.\nCounty of Maricopa\n)\nThe foregoing instrument was acknowledged before me this /2Tiay ofNovember, 2003 by\nScott D. McLean, the President ofMCLEAN REAL ESTATE SERVICES,INC., an Arizona corporation,\nthe Manager ofMDM102 L.L.C.,\'an Arizona limited liability company, on behalfofthe company.\n|\n|\nNotaryfake\nMy Commission Expires:\n.\n\'\nLrebthees int\n«GitSay\nNOTARY PUBLIC\n|\n/b /I f/,Os”\n| ce\nMaricopa County\nWEY”\nPAMELA C. CRUDELE\nMy Apacintmant Expires October 14, 2GOSa\n   \nSTATE OF ARIZONA\n \n \n \nEXHIBIT A\nThe Licensed Property shall mean: the North 16 feet of the following described\nproperty: the West 296 feet of the South 341 feet of the East half of the Southwest\nquarter ofthe Southeast quarter ofSection 16, Township 1 South, Range 5 East ofthe\nGila and Salt River Base and Meridian, Maricopa County, Arizona.\nH:\\My Documents on Server\\Arbor Lane\\AL- HOA\\SocbndAmendmentioCCERs 11-12-03.doc\n  \n \n \n   \nOFFICIAL\nRECORDS\nOF\nMARICOPA\nCOUNTY\nRECORDER\nHELEN\nPURCELL\n2002-1356733 12/17/02\n11:42\n2\nOF\n2\nHADEL\nWhenrecorded return to:\nMatthew R. Berens, Esq.\nBERENS, KOZUB, LORD & KLOBERDANZ, PLC\n7047 East Greenway Parkway,Suite 140\nScottsdale, AZ 85254\nFirsT AMENDMENT TO\nDECLARATION OF\nCOVENANTS, CONDITIONS AND RESTRICTIONS FOR\nARBOR LANE\nThis FIRSTAMENDMENT to DECLARATION ofCOVENANTS, CONDITIONS and RESTRICTIONS forARBOR\nLANE (the “First Amendment “) is made and effective as of the F/4% day of October, 2002, by\nMDM102 L.L.C., an Arizona limited liability company (‘Declarant’).\nRECITALS:\nA\nWHEREAS, Declarant ownsthat parcel ofreal property situated in Maricopa County,\nArizona, more particularly described in Exhibit A, attached hereto and the Additional Declarant\nowns that parcel ofreal property situated in Maricopa County, Arizona, moreparticularly described\nin Exhibit B, hereto (collectively, the “Parcel”);\nB.\nWHEREAS, Declarant has subjected the Parcel to certain protective covenants,\nconditions, reservation, liens and chargesas set forth in Document No. 2002-0622641, records of\nMaricopa County, Arizona (the “Declaration’’); and\nC.\nWHEREAS,Declarant, as the Ownerofoversixty-seven (67%) ofthe Lots, now wishes\nto amend the Declaration.\nDECLARATION\nNow, THEREFORE, the Declarant hereby amends the Declaration and agrees as follows:\n1.\nCapitalized Terms. All capitalized termsutilized herein and not otherwise defined\nherein shall have the same meaningasset forth in the Declaration.\nGADOCUMENTS\\MRE\\RFORMS\\REAL ESTATE FORMS\\FIRST AMENDMENTSTO.CG&R§ FORMBOS!.8 ys ohn\nOctober 25, 2002 (1:53PM)\n;\nPye \n \n \n2.\nPrivate Street and Restrictions.: Tract-A, as set forth on the PlatofArbor LaneI,is\nhereby declared as a private street for the use and benefitof all the Owners within the Plat and within\nthe Plat ofArbor Lane I, subject to the conditions set forth in the Reciprocal Easement Agreement\nrecorded as document no. 87-487508 in the official records ofMaricopa County and LAlubj ect to\neasements guided in favor of the City of Chandler. Tract A shall be maintained in the accordance\nwith said Reciprocal Easement Agreement, the easements granted to the City of Chandler and shall\nbe so maintained by the Association.\nIN WITNESS WHEREOF,this First Amendmenthas been executed as ofthe date and year first\nwritten above.\n“DECLARANT”\nMDM102 L.L.C., an Arizonalimited\nliability company\nBy: Magee Development Inc., an Arizona\nVe\nIts:‘Presi “Ff\nG:\\Documents\\mrb\\AFORMS\\Real Estate Forms\\First Amendment to CC&Rs\nftform.doc \n  \n \nPe aon\nba et baa?\n-\nfeTNO\nCIAL RECORDS\nNARTCOPA\nCOUNTY\nRECORDER\nHELEN PURCELL\n2002-0622641\n06/19/02 08:40\n1\nOF\n1\nKELLEYC\nWHEN RECORDED RETURN TO:\nMatthew R.Berens, Esq.\nBERENS, KOZUB & LORD PLC\n7047 E. Greenway Road\nSuite 140\nScottsdale, Arizona 85254\nDECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS\nFoR\nARBORLANE\nCITY OF CHANDLER\nMARICOPA COUNTY, ARIZONA\nThis Declaration made this /[8714 day of JewE\n-, 2002, by MDM102\nL.L.C., an Arizonalimitedliability company (‘Declarant’).\nRECITALS\nA.\nThe Declarant owns that parcel of real property situated in Maricopa County,\nArizona, more particularly described in Exhibit A hereto (the “Parce?’).\nB\nThe Declarant desires to create a planned, single-family, residential community which\nwill include commonfacilities for the benefit of the community.\nC,\nDeclarant desires to submit and subject the Parcel, together with all buildings,\nimprovements and other permanentfixtures of whatever kind now orhereafter located thereon, and\n.\nall easements, rights, appurtenances and privileges belonging or in any way pertaining thereto (all\nof which are included within the term “Propert’’ as defined in Section 1.27 hereof), tothe\ncovenants, conditions and restrictions set forth herein.\nD.\nThe Declarantdesires to establish for its own benefit and for the mutual benefit of\nall future owners and occupants ofthe Property, and every part thereof, certain easements and rights\nin, over and upon the Property and certain mutually beneficial restrictions and obligations with\nrespect to the proper use, conduct andmmaintenance\ne thereof.|\nIisvArbor Danced, - CC Hs 1-20-02.dog  \n  \n \nsem as\naz\neo doses\nRy eaeeeee ee ele ceeeeee 2TT ele Teet\nee”\nE.\nThe Declarant desires and intends that the owners, mortgagees, beneficiaries and\ntrustees undertrust deeds, occupants and all other persons hereafter acquiring any interest in the\nProperty shal] at all times enjoy the benefits of, and shall hold their interests subject to, the rights,\neasements, privileges, covenants andrestrictions hereinafter set forth, all ofwhich shall run with the\nland and be binding upon the Property andall parties having or acquiring any right, title or interest\nin or to the Property, or any part thereof, and shall inure to the benefit ofeach ownerthereof, andall\nof which are declared to be in furtherance of a plan to promote and protect the Property and are\nestablished for the purpose of enhancing and perfecting the value, desirability and attractiveness of\nthe Property.\nDECLARATIONS\nNow, THEREFORE, the Declarant, for the purposes aboveset forth, declares as follows:\n1.\nDefinitions. Defined terms used in this Declaration have thefirst letter of each word\nin the term capitalized. Unless the context otherwise requires, defined termsshall have the following\nmeanings:\n:\n1.1\n“Articles” means the Articles of Incorporation for the Association, and any:\n~\nproperly adopted amendments and supplements to them.\n-\n1.2\n“Association” means the Arbor Lane Homeowners Association, Inc., an\nArizona nonprofit corporation, its successors and assigns.\n1.3\n“Board” means the Board of Directors of the Association.\n1.4\n“Bylaws”? means the Bylaws of the Association and any properly adopted\n-\namendments and supplements to them.\n1.5.\n“Common Areas” means that portion of the Property owned by the\nAssociation, together with the improvements and facilities constructed thereon, which is not\npart of any Lot as shown on the Plat and which has not been dedicated to the public as a\npublic street or otherwise.\n1.6\n“Constituent Documents’\nmeans\nthis\nDeclaration,\nthe\nArticles\nof\nIncorporation and Bylaws of the Association, any guidelines, rules and regulations of the\nAssociation, and all such other similar documents as pertain to the Project, together with any\nproperly adopted amendments to any of them.\n1.7\n“Declarant? means the above-recited Declarant or any Person to whom\n.\nDeclarant’s rights here under are hereafter assigned in whole or in part by recorded\ninstrument.\nLtMrbor PantAL CCH: e242aia  \n \n  \n \n \nWhvAgbor Lane. CCH: 1 204i2.dog\n \n1.8\n“Declaration” means\nthis\nDeclaration\nof Covenants,\nConditions\nand\nRestrictions for Arbor Lane, as amended from timeto time.\n19\n“Designated Builder’ means any Person designated on Exhibit B who is\nengaged in the business of constructing and selling residences to the public and who is\nentitled to enjoy the privileges and benefits provided for in this Declaration or any Person\nto whom any such Designated Builder’s rights here under are hereafter assigned by recorded\ninstrument.\n1.10\n“Eligible Holder’ means any First Mortgageeor Institutional Guarantor that\nrequests notice of certain matters in accordance with Section 18.18 hereof.\n1.11\n‘First Mortgage” means a Mortgage whichis the first and most senior ofall\nMortgages upon the same property.\n1.12\n“First Mortgagee”’ means limit holder of the note secured by the First\nMortgage and includes, as appropriate in the context of the regulations of any interested\nInstitutional Guarantor, any such Institutional Guarantor with respect to such a note or First\nMortgage.\n1.13.\n“Fractional Interest’ means that fraction, the numerator ofwhich is one and\nthe denominator ofwhich is the total numberof Lots then in the Project.\n1.14\n“Improvement” means: (a) any Residence, building, fence or wall; (b) any\nswimming pool, tennis court, basketball goal, backboard or apparatus or playground\nequipment; (c) any road, drivewayor parking area; (d) any trees, plants, shrubs, grass or other\nlandscaping improvements of any type and kind; (e) any statuary, fountain, artistic work,\ncraft work, figurine or ornamentation of any type or kind, and (f) any other structure of any\ntype, kind or nature.\n1.15\nInstitutional Guarantor means the Federal Housing Administration (“F\'HA’’),\nthe Veterans Administration (“VA”), the Federal Home Loan Mortgage Corporation\n(“FHLMC”), andthe Federal National Mortgage Association (“FNMA”), including any\nsuccessorthereto, if such an agency purchases any note, or guarantees or insures the payment\n_\nof any note, secured by a First Mortgage.\n1.16\n“Zo?’ means each portion of the Property separately designated and described\nas a lot on the Plat, or on the plat of any annexed real property, together with any andall\nimprovements thereon.\n1.17\n“Majority ofOwners” means, for purposes ofthe Constituent Documents,the\nOwners holding more than 50% ofthe total weighted voting strength (irrespective ofthe total\nnumber of Owners); and, any specified fraction or percentage ofOwners means, for purposes\nof the Constituent Documents, the Owners holding that fraction or percentage of the total\nweighted voting strength (isTespective! ofthe ictalnumber of Owners).\n  \n \n \n \nfe\nDatla aEL eeeedele et ie weet as te\nIsArbor Laneal - CORs 1-29-2aoe\n \nBeli\n \n1.18\n“Mortgage” means any recorded, filed or otherwise perfected instrument\npertaining to a portion ofthe Property (whichis not a fraudulent conveyance under Arizona\nlaw), given in good faith and for valuable consideration as security for the performance of\nan obligation including, but not limited to, deeds oftrust, but shall not include any instrument\ncreating or evidencingsolely a security interest arising under the Uniform Commercial Code.\n1.19\n“Mortgagee” means the holder of a note secured by a Mortgage, including the\ntrustee and beneficiary under any deedoftrust.\n1.20\n“Mortgagor’ means the party executing a Mortgage as obligor.\n1.21\n“Oceupanf’ means a person or persons, other than an Owner, in rightful\npossession of a Lot.\n1.22\n“Owner”? means the record owner, whether one or more personsorentities,\nof fee simple title to any Lot, whether or not subject to any Mortgage, including contract\nsellers, but excluding those having such interest merely as security for the performance of\nan obligation. If fee simpletitle to a lot is vested of record in a trustee pursuant.to Arizona\nRevised Statutes, Section 33-801 et seg., fee simple title shall be deemed to be inthetrustor:\n1.23\n“Parcel means the parcel of real estate herein above described, which is\ninitially subjected to this Declaration.\n1.24\n“Person” means an individual, corporation, partnership,trustee or otherlegal\nentity.\n1.25\n“Plat” means the plat or plats ofsubdivision of the Property, as first recorded\nin Book\nofMaps at page __ of the official records ofMaricopa County, Anizona, as\nthereafter amended from time to time amended.\n|\n1.26\n“Private Yard’ means that portion ofa Lot other than the residential structure,\nwhich is enclosed or shielded from view by walls, fences, hedges or the like so that it is not\ngenerally Visible from Neighboring Property.\n1.27\n“Property” and “Project” are synonymous, and shall include the Lots, the\nCommonAreas, and all easements, nghts appurtenances and privileges belonging or in any\nway pertaining thereto.\n|\n1.28\n“Public Yard’ meansthat portion ofa Lot other than the residential structure,\nwhich is located between the street right-of-way and the front walls of the residential\nstructure and/or the return fences which connect a residential structure on any Lot to a\nresidential structure on the adjacent Lot, not including any portion ofthe Lot whichis fenced\nin, behind a gate, or which constitutes any portion of the Private Yard.\n \n \n \n \n \n \n(Arbor Janel. - CORRS 1-29-02.dou\nfeee ee IAT La\n1.29\n“Record” or “Recording” refers to the act of recording a documentin the\noffice of the County Recorder ofMaricopa County, Arizona.\n1.30\n“Rights ofWay” means those public nghts-of-way designated on the Plat and\n.\nother private rights-of-way within which the Association has an obligation to maintain\nlandscaping pursuant to Section 13.3 hereof.\n1.31\n“Residence” means any building, or portion of a building, designed and\nintended for independent ownership and for use and occupancyas a residence.\n1.32\n“Servicer” means the person or entity servicing a First Mortgage (including\nthe First Mortgagee,if applicable), its successors or assigns, pursuant to the regulations of\nany interested Institutional Guarantor.\n1.33\n“Visiblefrom Neighboring Property” means capable of being clearly seen\nwithout artificial sight aids by an individual six feet tall standing at ground level on any Lot\nor on any CommonArea, public street or right-of-way in or abutting the Property...\n2.\nBinding Covenants and Annexation of Additional Real Property.\n2.1.\nBinding Covenants. The Declarant hereby submits and subjects the Property\nto the rights, easements, privileges, covenants andrestrictions set forth in this Declaration,\nand hereby declares that all of the Property, including the Lots and Common Areas and\nincluding any additional properties which may be annexed into the Property, shall be owned,\nleased, sold, conveyed and encumbered or otherwise held or disposed ofsubject to the terms,\nconditions and provisions ofthis Declaration. Each grantee ofa Declarant and/or Designated\nBuilder, by the acceptance of a deed of conveyance, and each purchaser under any contract\nfor a deed of conveyance, and each purchaser under any agreementof sale, and each Person\nat any time hereafter owning or acquiring any interest in any part ofthe Property, accepts the\ninterest subjectto all restrictions, conditions, covenants, reservations, liens and charges, and\nthe jurisdiction, rights and powers created or reserved by this Declaration. All rights, benefits\nand privileges of every character hereby granted, created, reserved or declared, and all\nimpositions and obligations hereby imposed shall be deemed and taken to be covenants\nrunning with the land and equitable servitudes, binding upon any Person having anyinterest\nor estate in the Property at any time, and inuringto the benefit of the grantee, purchaser or\nPerson as thoughthe provisions of this Declaration were recited and stipulated at length in\neach and every deed ofconveyance, purchase contractor other instrument whereby each such\nPerson acquires an interest in the Property.\n2.2\nProposed Development. Declarant currently contemplates the development\nof a residential subdivision that, if completed, may encompass morereal property than that\ncurrently described as the Property.\nThe foregoing, however, is not a representation,\nwarranty, or assurance by the Declarant that the contemplated development will be\ncompleted.\nEach Owner acknowledges that it has not relied upon any representation,\nwarranty, or expression, writtereroral,madeby Declarant or any Designated Builder or any\n    \n \n \nHiVArbor LaneCCRs i242doy\n \nof their respective agents, regarding whether: (i) the contemplated development will be\ncompleted or carried out; (ii) any land now or in the future owned by Declarant will be\nsubject to this Declaration or developed for a particular use; (iii) any land now orin the\nfuture owned by Declarant was onceoris used for a particular use or whether any prior or\npresent use will continuein effect; or (iv) any common amenities contemplated for future\nphases actually will be constructed.\n2.3.\nAnnexation Without Approval.\nDuring any Period of Declarant Control,\nadditional real property may be annexed into the Property and made subject to this\nDeclaration by Declarant without the consent of any Member or First Mortgagee.\nDeclarant’s annexation will be evidenced by recording an amendment (“Annexation\nAmendment’) to the Declaration signed by the Declarant that describes the new real property\nto be included, refers to this Declaration, and states that all new real property is being added\nor annexed into the Declaration. Upon annexation, any additional Common Area will be\nconveyed to the Association at a time consistent with this Declaration. The Association will\nmaintain all development ofany annexed Common Area, as though all Common Area then\ncovered by the Declaration had been initially included within the Residential Community.\n2.4\nAnnexation With Approval. Upon the written consentor affirmative.vote of\nat least two-thirds (2/3) of the Members ofthe Association, the Association may annex real\nproperty to the provisions of this Declaration by recording in the Official Records of\nMaricopa County, Arizona, an Annexation Amendmentdescribing the real property being\nannexed. Any Annexation Amendmentwill be signed by the President and Secretary of the\nAssociation and the owner or owners of the properties being annexed, and any annexation\nunder this Section 11.04 will be effective upon its recordation.\n‘\n3.\nProperty Rights and Rights ofEnjoyment in the Common Areas.\n3.1\nRight ofEnjoyment. Subject to the provisions of Section 3.3, every Owner\nshall have aright and easement of enjoyment in and to the Common Areas. The easement\nshall be appurtenant to, and shall pass with the title to, every Lot. Except as otherwise\nprovided herein (including, but not limited to, the provisions of Section 3.3(c) and the\nAssociation’s right to grant easements for utilities and similar and related purposes), the\nCommon Areas may not be alienated, released, transferred, hypothecated or otherwise\nencumbered without the prior approval of two-thirds of each class of Members in the\nAssociation and two-thirds of all First Mortgagees (based upon one vote for each First\nMortgage owned) and without compliance with the applicable requirements of Section 18\nof this Declaration.\n3.2\nConveyance of Common Areas. At such time as improvements on the\nCommon Areas have been completed, the Declarant shall cause such improvements and the\ncommon areas to be conveyed to the Association by appropriate instrument of conveyance,\nwhich conveyance shall be free andclear ofall liens and encumbrances exceptthe lien for\nreal property taxes not yet due and payable. At the time of conveyance, the Association will\nbe provided a title insuranc?Solteyinsurinegoo  \n  \n \n \nSMeite daa ae\ntaeiaae ee kee\nUevArhor | ainetAL, - CCHs 1-29-42alow\ntee eo\nAle aee Tet Dt\nee Aa ee\nwot\naye\nBehet eedte atheeeereeee ee ee ae ee te ee aeh ee ee\naw Aee\nin the Association. The Association shall have in place on the date of conveyance all\ninsurance on the Common Areas which the Association is required to maintain under\nSection 10 of this Declaration.\n3,3\nLimitations. The rights and easements of enjoyment created\nin\nthis\nDeclaration shall be subject to the following, subject to compliance with the applicable\nrequirements of Section 18 hereof.\n(a)\nThe night ofthe Association, in accordance with this Declaration and\nthe Articles and Bylaws of the Association, to borrow money for the purpose of\nimproving the Common Areas andin aid thereof to mortgage the properties of the\nAssociation; provided, however, that the consent of two-thirds of each class of\nMembers shall be required prior to mortgaging or pledging any portion of the\nCommon Areas;\n7\n(b)\nThe right of the Association to take such steps as are reasonably\nnecessary to protect the Common Areas against foreclosure in the event of default\nupon any mortgage covering them;\n(c)\nTheright ofthe Association, as provided in its Articles and Bylaws,\nto suspend the enjoyment and voting nghts of any Owneror other Person for any\nperiod during which any assessment remains unpaid, and for any period not to exceed\n30 days for any infraction ofthe Association’s rules and regulations and successive\n30-day periods for so long as the infraction remains unresolved; provided, however,\nthat no such suspension shall prevent reasonable access to a Lot across Common\nAreas;\n(d)\nThe right ofthe Association to dedicate.or.transfer all or any part of\nthe Common Areas to any public agency, authority, or utility company. for such\npurposes and subject to such conditions as may be agreed to by the Owners, provided\nthat no such dedication or transfer, or determination as to the purposes oras to the\nconditions thereof, shall be effective: (1) unless such dedication or transfer is subject\nto an Owner’s right and egress over the Common Areasto its Lot, ifnecessary, and\n(ii) unless an instrument signed by Owners entitled to cast two-thirds of the votes of\neach class of membership has been recorded, agreeing to the dedication, transfer,\npurposeor condition, and unless written notice ofthe proposed agreement and action\nthereunderis sent to every Ownerat least ninety (90) days in advance of any action\nbeing taken.\n3.4\nDelegation ofRights. Any Owner may delegate his rights of enjoyment in the\nCommon Areas to the members of his family who reside upon the Property or to any\nOccupant ofhis Lot. The Ownershall notify the Association in writing of the nameof any\nPerson to whom such rights of enjoyment are delegated if they are not immediate family\nliving on the Owner’s Lot, which notice shall include the relationship of the Ownerto the\nauthorized Person. The rightsandprivileges\'ofFanysuch Person are subject to suspension as\n  \n   \n  \n \nee i tet Etre\nee ee\nOIE\nres tte\n‘\nSe\nTh\nLE TET aed Shite Tee ee eea\nTw lead ee Oe a,\nee tates ef i aeS\nSe TEa et Deyei\nLia\nan\note\nfey\nne\nFaecaSatanthemCatiaakeeheral tet eres abtes\nDe\nale reba AMDMELeS\nTAAibor fact. CORS 129402 alos\nprovided in this Declaration or the Bylaws of the Association to the same extent as those of\nthe delegating Owner, and are subject to such further regulation as the Association may\nprovide in its Bylawsor in its rules and regulations.\n4.\nMembership and Voting Rights in the Association.\n4.1\nAssociation. The Association has been formedto serve as the governing body\nfor all ofthe Owners for the enforcement of this Declaration, the protection, improvement,\nalteration, maintenance, repair, replacement, administration and operation of the Common\nAreas, the maintenance of landscaping andrelated facilities and fixtures within the Rights\nof Way, the assessment of expenses, paymentoflosses, disposition of casualty insurance\nproceeds, and other matters as provided in this Declaration, the Articles and the Bylaws. The\nAssociation shall not be deemed to be conducting a business of any kind, and all funds\nreceived by the Association shall be held and appliedbyit for the Owners in accordance with\nthe provisions of this Declaration, the Articles and the Bylaws.\n4.2\nMembership. Subject to the provisions of Section 3.3(c) hereof, each Owner\nshall be a member of the Association so long as he is an Owner. Membership shall\nautomatically terminate when the Owner ceases to be an Owner. Upon thetransfer of his\nownership interest, the new Owner succeeding to the ownership iriterest shall likewise\nautomatically succeed to the membership in the Association. A membership. in the\nAssociation shall not be transferred, pledged or alienated in any way, except upon thesale\nof the Lot to which it appertains (and then only to the purchaser of the Lot) or by intestate\nsuccession, testamentary disposition, foreclosure of a Mortgage or other legal process\ntransferring fee simple title to the Lot (and then only to the Person to whom fee simpletitle\nis transferred). Notwithstanding the foregoing, if an Owner grants an irrevocable proxy or\notherwise pledgesor alienates his voting right regarding special matters to a Mortgagee as\n|\n.\nadditional security, only the vote of the Mortgagee will be recognized in regard to the\ndesignated special matters (subject to the provisions of Section 3.3(c) hereof) ifa copy ofthe\nproxy or other instrument pledging or alienating the Owner’s vote has been filed with the\nBoard. Ifmore than one such instrumenthas beenfiled, the Board shall recognize the nghts\nof the first Mortgageeto sofile, regardless ofthe priority ofthe Mortgages themselves. Any\nattempt to make a prohibited transfer of a membership is void and will not be recognized by\nor reflected upon the books and records of the Association.\n43\nClasses ofMembership and Voting Rights: Appointment ofBoard Members.\nThe Association shall have two classes of voting membership:\nClass A. Class A membersshall be all Owners but shall not include the Designated\nBuilder. Class A members shall be entitled to one vote for each Lot owned on each matter\nto be decided. When more than one Person holds an interest in any Lot, all such Persons shall\ncollectively hold the voting rights for the Lot. The voting for such a Lot shall be exercised\nas they determine among themselves, but in no event shail the vote be split or more than one\nvote be cast with oe to anyCClass¢A Lot. If suchPersons are unable to agree how their\n \n  \nBe Bae teat TkWe mega wlan nel 2a\nate RS\nae\nares\naire\n~\n«\n2\nape\noat:\nPee\nee tes te\nte\nel\noe\naw\npa lett\nine Mack ets Tat eeSPaeee TEee Seeai\nClass B. The Class B membersshall be the Designated Builder, who shall hold one\nClass B membership for each Lot owned andshall be entitled to three votes for each such\nClass B membership on each matter to be decided. The Designated Builder maycast its votes\nin such proportions on any matter as it may determine. Class B memberships shall cease and\nbe converted to Class A memberships, without further act or deed, upon the happening of any\nof the following events, whichever occursfirst:\n(a)\nThe voting rights relating to any particular Lot shall be converted\nuponthe sale or other disposition of the Lot by the Designated Builder, other than in\nconnection with an assignment by the Designated Builderofall or substantially all\nof its rights under this Declaration (including a pledge or assignment by the\nDesignated Builder to any lender as security); or\n(b)\nWith respect to all remaining Class B memberships, uponthefirst to\noccur of the following:\n(1)\nOne hundred twenty (120) days following the first date when’\nthe total votes outstanding in the Class A membership equals or exceeds the\ntotal votes outstanding in the Class B membership,or\n(2)\nFive (5) years following conveyanceof the first Lot within the\nProject by the Designated Builder.\nIf any lender to whom the Designated Builder has assigned, or hereafter assigns,all or substantially\nall of its rights under this Declaration as security succeeds to the interests ofthe DesignatedBuilder\n-\nby virtue of the assignment, the Class B memberships of the Designated Builder shall not be\nterminated, and the lender shall hold the Class.B memberships ofthe Designated Builder on the same\nterms as they were held by the Designated Builder. Any time during the existence of the Class B\nmembership shall be referred to as the "Period of Declarant Control".\nUAbor | aed, OCRs [29412doe\n4.4\nAssociation Board ofDirectors: Appointment by Designated Builder.\n(a)\nThe Board of the Association shall initially be comprised of the\nindividuals specified in the Association’s Articles of Incorporation. Each Board\nmembershall serve until his successoris elected or appointed in accordance with the\nBylawsor upon his resignation or removal from office, as the case maybe. For so\nlong as any Class B memberships are outstanding in the Project, and the Designated\nBuilder shall appoint three Board members. From andafter the date that no Class B\nmemberships are outstanding in the Project, the number ofBoard positions may be\nincreased as provided in the Bylaws and the Board membersshall be elected by the\nClass A members pursuantto the proceduresset forth in the Bylaws.\n \n \nUbVArbos LaneVAL «CCH: 1-29-02alog\n(b)\nExcept for members elected or appointed by any Designated. Builder,\neach director shall be an Owner(or, ifan Owneris a corporation, partnershiportrust,\na director may be an officer, partner or beneficiary of the Owner). Ifa director ceases\nto meet these such qualifications during his term, he will thereupon cease to be a\n_\ndirector and his place on the Board shall be deemed vacant. Except for directors\nelected or appointed by any Designated Builder, directors shall be elected in the\nmanner and at the times set forth in the Articles or Bylaws.\n4.5\nBoard’s Determination Binding. In the event of any dispute or disagreement\nbetween any Owners or other Personsrelating to the Project, or any question ofinterpretation\nor application of the provisions in this Declaration, the Articles, Bylaws or rules and\nregulations of the Association, the determination by the Board shall be final and binding on\neach and all of such Owners or other Persons (subject to any contrary determination by a\ncourt of competentjurisdiction).\n4.6\nAdditional Provisions in Articles and Bylaws. The Articles and Bylaws may\ncontain anyprovision relating to the conduct ofthe affairs of the Association andthe nghts\nand powers of its directors, officers, employees, agents, members and other interested\n- Persons not inconsistent with law, this Declaration or the regulations of anyinterested\nInstitutional Guarantor.\n4.7\nIndemnification. Every director, officer and agent ofthe Association (whether\nor not such agencyrelationship results from appointment, election or employment) shall be\nindemnified by the Association, to the extent not prohibited by law, against all expenses and\nliabilities, including attorneys’ fees, incurred by or imposed upon him in connection with any\nproceeding to which he maybea party, or in which he may becomeinvolved, by reason of\nhis being or having been a director, officer or agent of the Association, or any settlement\nthereof, whetheror not he is a director, office or agent at the time such expensesare incurred,\nprovided that the Board determines, in good faith, that such director,officer or agent did not\nact, fail to act, or refuse to act, willfully or with gross negligence or fraudulent or criminal\nintent in the performanceofhis duties. The foregoing rights of indemnification shall be in\naddition to and not exclusive ofall other rights to which such directors, officers or agents\nmay beentitled.\n4.8\nEasements. In addition to the blanket easements granted in Section 5 below,\nthe Board is authorized and empoweredto grant such licenses, easements and nghts-of-way\nupon the Common Areas for sewerlines, water lines, underground conduits, storm drains and\nother public or private utility purposes as may be necessary and appropriate for the orderly\nmaintenance, preservation and enjoyment of the Common Areasor for the preservation of\nthe health, safety, convenience and welfare ofthe Owners, provided that any damage to a Lot\nresulting from such a grant shall be repaired by the Association at 1ts expense.\n4.9\nAccounting. The Board, atall times, shall keep, or cause to be kept, true and\ncorrect records of account in accordance with generally accepted accounting principles,\ntogether with recent financialstatements: “The-Board shall keep such books and record\n   \n \n \n \n \nwe\nwe eet\nee\n(Grhot Landa,CRs 1-2942uba\nCemgtgy ag\nSa ey Bae\n“ot\nog:\nJ\nTee\n.\n.\nPat\nitt\nSeaaaataaerateee Seel eee eea\na et eeee\navailable for the inspection of all Owners, First Mortgagees and Institutional Guarantors,\n—\nupon request, during normal business hours or other reasonable times. Required books and\nrecords shall specify in reasonable detail all expenses incurred and funds accumulated from\nassessments or otherwise.\n4.10\nConstituent Documents. The Board, atall times, shall keep, or cause to be\nkept, current copies ofthe Constituent Documents, together with any amendmentsthereto,\nand shall make such documents available for the inspection of all Owners, First Mortgagees\nand Institutional Guarantors, upon request, during normal business hoursor other reasonable\ntimes.\n4.11\nTermination ofAssociation. If the Association is terminated or dissolved, the\nassets of the Association shall be transferred to a successor owners’ association, a public\nagency or a trust for the benefit of the Owners and Mortgagees, whichever appears to the\nBoard, in its sole and absolute discretion, to then be the most reasonable and equitable\ndistribution thereof consistent with applicable tax and other laws. The Association may not\nbe dissolved or terminated without provision by the Association and the Members for a\nsuccessor entity to assumethe obligations of the Association set forth in Sections 13.2 and\n13.3.\n5,\nBlanket Easements and Use of Common Areas.\n5.1\nCreation ofEasement: There is hereby created a blanket easement upon,\nacross, over and under the Common Areasfor ingress and egress, installing, constructing,\nreplacing, repairing, maintaining and operatingall utilities including, but not limited to,\nwater,\nsewer,\ngas,\ntelephone, electricity,\ntelevision\ncable,\nsecurity\nsystems,\nand\ncommunication lines and systems, and in addition thereto for the use of emergency vehicles\nof all types. By virtue of the easement,it shall be expressly permissible for the providing\ngovernmental agency or utility company to erect and maintain necessary facilities and\nequipment on the Common Areas. Notwithstanding anything to the contrary contained1n this\nSection 5, no easements shall be created nor shall any sewers, electrical lines, water lines or\nother facilities be installed or relocated on the Common Areas exceptas initially created and\napproved by the Declarant or thereafter created or approved by the Board. This provision\nshall in no way affect any other recorded easements on the Property.\n5.2\nGeneral Use Rights. Except for the use limitations provided in Section 3.3\nand Section 9, each Ownershall have the non-exclusive right to use the Common Areas in\ncommonwith all other Owners as required for the purposes of access and use, occupancy and\nenjoymentof, the respective Lot owned by the Owner. The right to use the Common Areas\nshall extend to each Owner and Occupant and the agents, servants, tenants, family members\nand invitees of each Owner.Therightto use and possess the Common Areas shall be subject\nto and governed by the provisions of this Declaration, the Articles, Bylaws, and rules and\nregulations of the Association and suchreasonablelimitations and restrictions as may, from\ntime to time, be contained therein. \n \n \n5.3.\nWall Easement. There is hereby created as an easement upon, over and across\neach Lot within the Property which is adjacent to the perimeter boundaries of the Project or\nany public street or Common Area within the Project for reasonable ingress, egress,\ninstallation, replacement, maintenance and repair of a Project perimeter wall located on the\neasement. The easement created by this Section 5.3 shall be in favor of the Declarant and\nDesignated Builder and appurtenant to the portions ofthe Project owned by them at any time,\nas well as in favor of the Association and those Owners whose Lots are subject to the\neasement.\n5.4.\nMaintenance Easement. Thereis hereby created a use and benefit easement\nfor maintenance, roofoverhang and drainage upon, over and acrossthe five (5\') feet of each\nLot as set forth on the Plat allowing the Owner or Occupant of each adjacent Lot (the\n‘‘Benefitted Lot’) to perform maintenance upon the wall and fence improvementor the roof\nof the residence so built upon the adjacent Lot. The easement granted herein 1s for roof\noverhang,roof, drainage and other maintenance purposes only and includes such access as\nmay be reasonably necessary to allow the Owner or Occupant ofthe benefitted Lot to gain\naccess to, and use of, the easement areas of the Burdened Lot (as hereafter defined) as set\nforth herein.\nThe Owner of the Benefitted Lot shall own and maintain the wall, roof\noverhangof the residence on the Benefitted Lot located within the easement area. Neither\nthe Owner of the burdened Lot (nor any other Occupant, person or entity) shall modify or\nchange in any way, the roof overhang, or wall ofthe residence ofthe Benefitted Lot thatis\nwithin the easement area. Such Owner may provide landscaping under and around the roof\noverhang or wall only so long as such landscaping does not interfere with the maintenance,\nroof overhang and drainage easement granted hereby. The ownerof the Burdened Lotshall\nmaintain the fence in its yard. The Owneror the Occupant of the Benefitted Lot shall give\nreasonable notice to the Owner or Occupant of the Lot upon which the easementexists (the\n‘Burdened Lot”) before such access may beutilized for maintenance purposes, except in\ncases where emergency repairs are necessary to prevent damage or further damage to the\nstructure upon the Benefitted Lot. The Owner or Occupant ofthe Benefitted Lot utilizing\nsuch easement for maintenance purposes shall be responsible for restoring the Lot upon\nwhich the easement is granted to its original condition prior to such access for maintenance\npurposes. Lots which do not have a maintenance easementspecified on the Plat shall not be\nsubject to the easement created by the Plat as more fully described in this Section 5.4.\n6.\nManaging Agent. All powers, duties and rights of the Association or the Board, as\nprovided by law and herein, may be delegated to a managing agent under a management agreement.\nAny agreement for professional management, or any other contract providing for services of and\nDeclarant, any Designated Builder, or any other party, shall not provide for compensation to the\nmanaging agent or other contracting party in excess of those amounts standard within the community\nin which the Project is located, nor exceed a term of one year, but the term may be renewed by\nagreement of the parties for successive one-year periods. Any such agreement shall provide for\ntermination by either party with or without cause and without paymentofa termination fee upon 60\ndays’ written notice; provided, however, that the Association may also terminate the agreementfor\ncause upon 30 days’ written notice. Any decision by the Association to terminate professional\nmanagement after it has begun and,assume self-inan igeinent0of the\nfe Project shall not be effective\nIbMArbor LaneAD «00 Re 1-29-02.doo\n   \n  \nAde ME Le feeie eee ee aePe ent ee tee aad eeeeem\nee Teete eee erie mai taleome ee me eemee oe De\nuntil approved in writing by two-thirds of the Owners and two-thirds of the First Mortgage\nMortgagees (based upon onevote for each Mortgage owned).\n[i-Arbor LangAL. + Ct Hs 6-29-92,doe\n7.\nCommon Expenses.\n7.1\nAssessmentfor Common Expenses. Except as otherwise specifically provided\nherein, each Owner, including the Designated Builder so long asit is an Owner, shall pay to\nthe Association an amount equal to his proportionate share of the expenses of the\nadministration, maintenance and operation of the Common Areas, maintenance of\nlandscaping andrelated facilities and fixtures within the Rights of Way, and of any other\nexpenses incurred in conformance with this Declaration, the Articles, Bylaws and rules and\nregulations of the Association, including specifically, but not by way oflimitation, insurance,\nmaintenance and repair ofthe Common Areas (and any andall replacements and additions\nthereto), water, electricity and other utilities provided to the Project, and establishment and\nmaintenance of such reasonable reserves for contingencies, replacements and other proper\npurposes as the Board may from timeto time elect to establish and maintain (which expenses\nare herein sometimesreferred to as “Common Expenses’). Common Expensesshall include\nsuch amounts as determined by the Boardfor the establishment and maintenanceofa reserve\nfund (the “Reserve Fund’), which shall be adequate to meet the costs and expenses of\ncustomary maintenance, repairs and replacements of landscaping andrelated facilities and\nfixtures within the Rights ofWay and of those Common Areas which must be maintained,\nrepaired, and replaced ona periodic basis. Reserve Fundsshall be funded and derived from\n‘the regular assessments payable in regular installments and not by means of a special\nassessment or levy. The proportionate share of the Common Expenses for each Ownershall\nbe in the sameratio as his Fractional Interest. Notwithstanding anything foregoing to the\ncontrary, so long as any Class B memberships in the Association are outstanding, the\nDesignated Builder may elect to pay for Lots owned by such Designated Builder an amount\nequal to one-quarter ofthe amount otherwise payable hereunderas such Lots’ share of the\nCommon Expenses in the absence of this proviso. A Designated Builder may make the\nelectionprovided for in the preceding sentence for any budget year by giving the Association\nwritten notice prior to the commencementof the budget year; provided, however, that the\nDesignated Builder may make such an election for the first budget year of the Association\nby giving notice prior to sale and conveyance ofthe first Lot by the Designated Builder or\nthe commencement ofthe budget year, whicheveris later.\nAn election for reduced assessments made by the Designated Builder as provided\nherein shall remain in effect until it is rescinded by written notice to the Association or Class\nB memberships cease to be outstanding, in which event the reduced assessmentsshall\nterminate and full assessments shall be payable as of the commencement of the next\nfollowing budget year. In the event that a Designated Builder makesthe election for reduced\nassessments providedfor herein, the Designated Builder shall be obligated to pay, in addition\nto assessments, any amount by which (1) the Common Expensesofthe Association for the\nbudget year in which such an election is effective, multiplied by a fraction, the numerator of\nwhich is the numberofLots owned by the Designated Builder and the Denominator ofwhich\nis the number of Lots in:the-Project; exceeds(i)\\the assessments payable by Owners\n  \n \n \n \n \n \nhil tee a eleeeeee eeee\nHiArhor Lane«CCR 14be\n(including the Designated Builder at the reduced rate). The obligations of the Designated\nBuilder set forth in the preceding sentence shall be a lien against Lots owned bythe\nDesignated Builder pro rata and shall be enforceable by the Association in the same manner\nas assessments provided for herein.\nNS\n7.2\nCommencement. Assessment for Common Expenses provided herein shall\ncommence for all Owners, including the Designated Builder, upon the sale and delivery by\nthe Designated Builder ofthe first Lot within the Project with a completed residence thereon.\nUntil the assessments for Common Expenses commence, the Designated Builder shall be\nresponsible for payment of the Common Expenses. Anysale and simultaneous leaseback of\na model residence for use in marketing shall not constitute a sale of the residence for\npurposes ofthe preceding sentence so long as the model continuesto be used for marketing\nrather than residential purposes.\n7.3.\nCapital Contribution. In addition to the regular assessments for Common\nExpenses provided herein, each Ownershall, at the time of purchase of a Lot with a\ncompleted residence on it from the Designated Builder, pay to the Association an amount\nequal to two monthlyinstallments ofthe Lot’s share of the Common Expenses, which sum\nshall be a contributionto the capital of the Association and shall be used by the Association\nas areserve and for working capital. Such payments shall not relieve an Owner from payment _\nof any installment of the regular assessments payable by the Owner.\n7.4\nPayments and Liens. Except as otherwise provided herein, payment of\nCommon Expensesshall be in such amounts and at such times as may be provided in the\nArticles and Bylawsor as determined by the Board in accordance with Section 7.7 hereof.\nSuch payments, together with interest at the annual rate of 18% (or such lesser rate as the\nBoard mayselect from timeto time but in no event in excess ofthe maximum lawfulrate or\nthe maximum rate allowed under applicable requirements ofInstitutional Guarantors) on\nsums due but unpaid, costs, reasonable attorneys’ fees and suchreasonable late charges as\nthe Board may imposeby rule or regulation, shall constitute the personal obligation of the\nPerson who wasthe Ownerat the time the paymentfell due. The personal obligation for\ndelinquent payments shall not pass to an Owner’s successorin title unless expressly assumed\nby him. If any Ownerfails or refuses to make any payment ofCommon Expenses when due,\nthe amount thereof, together with interest, costs, reasonable attorneys’ fees and anylate\ncharges, shall constitute a lien from the date the amount was due on the Owner’s Lot and on\nany rents or proceeds therefrom. The lien shall be subordinate to thelien of a first Mortgage\non the Lot, except for the amount ofthe unpaid Common Expenses which accrues from and\nafter the date on which the First Mortgagee comesinto possession of or acquirestitle to the\nLot, whichever occursfirst (together with any interest, costs, reasonable attorneys’ fees and\nany late charges related thereto). Ifany lien for unpaid assessmentspriorto the date the First\nMortgageecomesinto possession ofor acquirestitle to the Lot has not been extinguished by\nthe process by which the First Mortgagee cameinto possession ofor acquired title to the Lot,\nthe First Mortgagee shall not be liable for accrued unpaid assessments and, upon written\nrequest to the Board by the First Mortgagee, the lien shall be released in writing by the\nAssociation to the extent ofany.suck-pitor.assessinisnts.\n   \n \n \n \nHDMArbor Landa © OORs $2902oe\nee et mee eea eee\n7.5\nCertificate ofPayment. Any person acquiring an interest in a Lot shall be\nentitled to a statement from the Association setting forth theamount ofunpaid assessments\nattributable to the Lot, ifany. No Person shall beliable for, nor shall any lien attach to a Lot\nin excess of, the amountset forth in such a statement, except for assessments which occur\nor become dueafter the date thereof and any interest, costs, reasonable attorneys’ fees and\nlate charges related to the assessments. The Association may charge a reasonable fee for the\npreparation of any such statement.\n7.6\nForeclosure ofLien. The lien provided for in this Section may be foreclosed\nby the Association in any manner provided or permitted for thejudicial foreclosure of realty\nmortgages or deeds oftrust in the State of Arizona. All of the provisions of this Section 7\nrelating to the lien provided for herein (including, but not limited to, the subordination\nprovisions) shall apply with equal force in each other instance provided for in this\nDeclaration whereinit is stated that payment ofa particular assessment, charge or other sum\nshall be secured by the lien provided for in this Section 7.\n7.7\nBudget. Not later than 60 days prior to the beginning of each fiscal year of\nthe Association, the Board shall prepare, or cause to be prepared, a pro forma annual:budget\nfor the Association for the upcoming fiscal year. The budget shall take into accountail\nanticipated Common Expenses, and, to the extent that assessments from the prior year(s)\nhave been moreorless than the expenditures and provision for reserves ofsuch prior year(s),\nthe surplusordeficit. If during the course of any fiscal year, or portion thereof, it appears\nthat the assessments determined in accordance with the estimated annual budget are\ninsufficient to cover the actual Common Expenses, or are in excess of the amount necessary\nto cover the actual amount necessary for payment ofCommon Expenses, then the Board may\nprepare a supplemental budget and increase or decrease the assessment as may be necessary,\nsubject, however, to the limitations set forth in Section 7.8. Unless otherwise expressly\ndetermined by the Board, any surplus moneys of the Association shall be held by the\nAssociation and placed in one or more reserve accounts as determined by the Board, and\nshall not be paid to the Owners or credited against the Owners’ respectiveliabilities for\nassessments hereunder.\n7.8:\nMaximum Assessments. Prior to January 1 of the year following the first\nconveyance of a Lot with a completed residence on it by the Designated Builder to an Owner,\nthe maximum assessment which any Ownershall be required to pay his proportionate share\nof the Common Expenses may not exceed $840.00 per year (or $70.00 per month) (which\namount shall be prorated if the year in which first conveyance occurs is less than a full\ncalendar year). Notwithstanding the provisions of Section 7.7, prior to January 1 of the year\nimmediately following conveyanceofthe first Lot with a completed residence on it by the\nDesignated Builder to an Owner, the Board mayfix and thereafter adjust the assessment\npayable by all Owners for Common Expenses at such amounts as the Board reasonably\nelects, provided the maximum amount payable by each Ownerdoes not exceed the maximum\namount set forth in the preceding sentence. From and after this January 1, the maximum\nassessment which each Owner\n‘pay as his proportionate share of the\n  \n \n \n \n{PMrber Lanell COURS |2041dog\nan eleeeDeeeee\nBeet nee a baeeheeele ba eeleeOe\nCommon Expenses maybe increased each year by the Board to an amountnot in excess of |\nthe sum of (i) the amount of the assessment due and payable by an Owneras his\nproportionate share ofCommon Expensesfor the preceding year, plus the greater of(ii) an\namount equal to 10 % ofthe maximum assessmentfor the preceding year, or (iii) an amount\nequal to the percentage change in the ConsumerPrice Index - United States City Average for\nUrban Wage Eamers and Clerical Workers - all Items (1986 = 100), as published by the\nUnited States Department of Labor, Bureau of LaborStatistics (or such other government\nindex with which it may be replaced), for the preceding year times the amount of the\nmaximum assessmentfor the preceding year. Notwithstanding the foregoing, if two-thirds\nof each class of members of the Association approve by affirmative vote in person or by\nproxy at a meeting duly called for such purpose, the maximum allowable assessment may\nbe increased by an amount greater than otherwise permitted pursuant to this Section 7.8.\nNotwithstanding anything to the contrary in this Section 7.8, the Board may, without the\napproval ofthe members of the Association, increase the maximum annual assessment for\nany fiscal year by an amountsufficient to permit the Board to meet any increases over the\nprecedingfiscal year in: (i) premiums for any insurance coverage required by this Declaration\nto be maintained by the Association; (ii) taxes assessed against the Common Areas;or (iii)\ncharges for utility services necessary to the Association’s performanceofits obligations\nunder this Declaration.\n7.9\nSpecial Assessments. In addition to the regular assessments for Common\nExpenses authorized above, the Board may levy in any assessmentyear a special assessment\napplicable to that year only for the purpose of deferring, in whole or in part, the cost of(a)\nany construction, reconstruction, (including, but not limited to, restorations described in\nSection 11 hereof, repair or replacement of a capital improvement upon the Common Areas\nor other improvements or property the Association is responsible for maintaining (including\nfixtures and personal property related thereto); and (b) any unanticipated or underestimated:\nexpense normally covered by regular assessments; provided however, that in all events, no\nsuch special assessment shall be made withoutthe affirmative vote in person or by proxy of\ntwo-thirds of each class of Members of the Association at a meeting duly call for such\npurpose. Notwithstanding anything to the Contrary in this Section 7.9, the affirmative vote\n—\nof two-thirds of each class ofMembers shall not be requiredif the special assessment does\nnot cause the maximum allowable assessment underSection 7.8 to be exceeded for the year\nin which the special assessmentis levied.\n7.10\nProceduresfor voting on Assessments. Written notice of any meeting call for\nthe purpose of taking any action authorized by Section 7.8, 7.9 or 11.5 hereof shall be sent\nto all Owners not less than 30 days nor more than 60 days in advance ofthe meeting. At the\nfirst such meeting called, the presence ofmembersor proxies therefor entitled to cast 25 %\nof all the votes of the Membership shall constitute a quorum.If the quorum is not present,\nanother meeting may be called subject to the same notice requirement and the required\nquorum at the subsequent meeting shall be one-halfofthe required quorum at the preceding\nmeeting. No such subsequent meeting shall be held more than 60 days following the\npreceding meeting. While any Class B Membership exists, the quorum requirements\n \nee\nete\non\ntat\nto\note\not tt\nNR lite Oeeteetea ieee ene Sete BSbebe anta\n  \n \ndescribed aboveshall apply to both classes and a quorum shall not exist for a meeting unless\na quorum of each Class is present.\n7.11\nDue Date ofAssessments. All regular and special assessments under this\nSection 7 shall be assessed on an annualbasis and shall be payable on such dates as may be\ndetermined by the Board. The Board may elect that assessments hereunder be paid in\nperiodic installments as determined by the Board (but in no event shall such installments be\ndue more frequently than monthly). If any Ownerfails to pay any assessment hereunder when\ndue, the entire annual assessmentfor the year in which such delinquency occurs shall become\nimmediately due and payable at the option of the Board without further notice to such\nOwner.\n8.\nMortgages. Each Ownershall have the right, subject to the provisions hereof, to make\nseparate Mortgages for his Lot. No Ownershall have the right or authority to makeor create or cause\nto be madeor created any Mortgage,or otherlien or security interest, on or affecting the Property\nor any part thereof, except only to the extent ofhis Lot.\n9.\nExclusive Use Rights. By action of the Board, minor portions of the Common Areas\nadjoining a Lot may be reserved for the exclusive control, possession and use of the Ownerofthe\n‘Lot. If such an area serves as access to and from two Lots, the Owners of the two Lotsshall have\njoint control, possession and use of the area as reasonably serves both Lots. The exclusive use nghts\ncreated herein are subject to the blanket utility easement, maintenance and architectural control\nprovisions contained in this Declaration and to such reasonable rules and regulations with respect\nto possession, control, use and maimtenance as the Board may from time to time promulgate.\nEasements are hereby created in favor of and running with each Lot having such an area, for the\ncreation ofsuch exclusive control and use of each such area. Each Owner, by acceptingtitle to a Lot,\nshall be deemed to have furtherratified the easements and rights to exclusive use created by: this\nSection 9.\n10.\nInsurance. Insuranceshall be carried by the Association on the Common Areas and\nthe activities of the Association and shall be governed by the following provisions:\n10.1.\nAuthority to Purchase. The Association, by and through the Board, shall\npurchase and maintain certain insurance upon the Common Areas andtheactivities of the\nAssociation including, but not limited to, the insurance described in Section 10.2. Provision\nshall be made for the issuance of certificates of endorsement to any First Mortgagee if\nrequested by it. Such policies and endorsements thereon, or copies thereof, shall be deposited\nwith the Association. The Board shall deliver a copy of the policies or, by and throughits\nagent, advise the Owners of the coverage ofthe policies, to permit the Owners to determine\nwhich particular items are included within the coverage so that the Owners may insure\nthemselves as they see fit if certain items are not insured by the Association. Without\nlimiting the generality of the foregoing,it shall be each Owner’s responsibility to provide for\nhimself insurance on the contents of any dwelling constructed on his Lot, the residence and\nany other additions and improvements on his Lot, decorating therein and furnishings and\nstored elsewhere on the Property, his\n   \nWistar (anclCORs f20dthdoe\nsf\noe\ntetas Ero era\nTO enkeee he eeaeg ee\n \n  \n \noe eeat eemeee ee ee ee\nTiAArhor | antl\neB a te ee tee ete\naa ee metal statbateadee\nDoe\nTE\npersonalliability to the extent not covered by the liability insurance for all of the Owners\nobtained as part of the Common Expenses as above provided, and such other insurance\nwhichis not carried by the Association as the Owner desires. No Ownershall maintain any\ninsurance on his Lot which would limit or reduce the insurance proceeds payable underthe\ncasualty insurance maintain by the Association in the event of damage to the improvements\nof fixtures in the Common Areas.\n10.2.\nCoverage. The Association shall maintain and pay for policies of insurance\nas follows:\n+ CURs 1-3DAZle\n(a)\nPolicies of a multi-peril type covering the CommonAreas providing,\nas a minimum,fire and extended coverage, and all other coverage in kinds and\namounts customarily acquired or required for projects similar in construction,\nlocation and use including, but notlimitedto, sprinkler leakage, debris removal, cost\nof demolition, vandalism, malicious mischief, and windstorm and water damage, in\nan amount not less than 100% ofthe insurable value (based upon replacement cost\nas determined at least once every two years by a qualified insurance appraiser\nselected by the Board), and, if available, agreed amount, inflation guard and\nconstruction code endorsements.\n(b)\nAcomprehensive policy ofpublic liability insurance coveringall of\nthe Common Areas and public ways in the Project in a minimum amountofat least\n$1,000,000.00 per occurrence for personal injury, deaths and/or property damage.\nThis insurance policy shall contain a “severability ofinteres?’ endorsement which\nshall preclude the insurer from denying the claim of an Owner because of the\nnegligent acts of the Association and its agents or other Owners. The scope of\ncoverage shall include all other coverage in the kinds and amounts customarily\nacquired or required for projects similar in construction,, location and use including,\nbut not limited to, liability of the Association related to employment contracts of the\nAssociation, water damageliability, liability of non-owned and hired automobiles,\nand liability for property of others.\n(c)\nIf there is ever a steam boiler in operation in connection with the\nProject, there must be in force boiler explosion insurance evidenced by the standard\nform ofboiler and machinery insurancepolicy and providing, as minimum coverage,\nOne Hundred Thousand Dollars ($100,000) per accident per location.\n(d)\nThe Association must obtain fidelity coverage against dishonest acts\non the part of directors, officers, managers, trustees, agents, employees or volunteers\nresponsible for handling funds belonging to or administered by the Association. The\nfidelity bond or insurance must name the Association as the named insured andshall\nbe written to provide protection which is in no eventless than the greater of: (1) one\nand one half times the Association’s estimated annual operating expenses and\nreserves or, (ii) the sum of three months’ assessments on all Lots then with the\nserveFunds‘eld-<bytheAssociation. In connection with such\n  \n  \nSal nl need cased Laned Page aetemSeeens eaeee Melee\n-\n“s\nPe\n‘\noo\nast\nVeg\n7\nMee ee ekaeea ew teeeleea\nete et\ntne a ath ee\ncoverage, an appropriate endorsementto the policy to cover any person who serves\nwithout compensation shall be added if the policy would not otherwise cover\nvolunteers.\n(e)\nA\nworker’s\ncompensation\npolicy,\nif necessary\nto\nmeet\nthe\nrequirements of law.\n(f)\nSuch other insurance as the Board shall determine from timeto time\nto be desirable.\n\'\n(g)\nNotwithstanding any other provisions herein, the Association shall\ncontinuously maintain in effect such casualty, flood and liability insurance and a\nfidelity bond meeting the insurance and fidelity bond requirements for similarly\nprojects established by any interested Institutional Guarantor, except to the extent\nsuch coverage is not reasonably available or has been waived in writing by the\nInstitutional Guarantor.\n10.3.\nProvisions Required. The insurance policies purchased by the Association\nshall, to the extent reasonably possible, contain the following provisions:\nTiVArbor Lape, cCCRs 129472ab\n(a)\nThe coverage afforded by policies\nshall not be brought into\ncontribution or proration with any insurance which may be purchased by Ownersor\nFirst Mortgagees.\n(b)\nThe conduct of any one or more Ownersshall not constitute grounds\nfor avoiding liability on any policies.\n(c)\nThere shall be no subrogation with respect to the Association,its\nagents or employees, Owners and members of their household and their families and\n.\nemployees, and each Mortgageeofall or any part ofthe Property or ofany Lot, or the\npolicy(ies) should name such people as additional insured; and, each policy must\ncontain a waiver ofany defenses based on co-insuranceor on invalidity arising from\nthe acts of the.insured.\n(d)\nA “severability ofinterest’ endorsement shall be obtained which shall\npreclude the insurer from denying the claim of an Owner becauseofnegligentacts\nof the Association or other Owners.\n(e)\nA statement of the name of the insured shall be included in all\npolicies, in form and substancesimilar to the following:\n“ARBOR LANE HOMEOWNERS ASSOCIATION,INC., for\nthe use and\nbenefit of the\nindividual owners”\n[designated by name,ifrequired]. \nAe 8he eleetteat me me enlee ede\n \n \nHAbue CaneAh ~OCR 1-2)2aloe\n(D\nA standard mortgagee clause which mustbe endorsed to providethat\nany proceedsshall be paid to the Association, for the use and benefit ofMortgagees\nas their interests may appear, or which must be otherwise endorsedto fully protect\nthe interest of First Mortgagees, their successors and assigns.\n(g)\nFor policies of hazard insurance, a standard mortgagee clause shall\nprovide that the insurancecarrier shall notify the First Mortgagee named at least ten\ndays in advanceofthe effective date ofany reduction in or cancellation ofthe policy.\n(h)\nAny“no other insurance” clause shall exclude insurance purchased\nby Owners or the First Mortgagees.\n(1)\nCoverage must not be prejudiced by (a) any act or neglect of Owners\nwhen such an act or neglect is not within the control of the Association or (b) any\nfailure of the Association to comply with any warranty or condition regarding any\nportion of the Property over which the Association has no control.\n(Q)\nCoverage may not be canceled or substantially modified withoutat\nleast 30 days (or suchlesser period as otherwise provided herein) prior written notice\nto any andall insureds including First Mortgagees, their successors, and assigns, and\ninterested Institutional Guarantors and their Servicer, if any.\n(k)\nAny policy ofproperty insurance which givesthe carrier the rightto\nelect to restore damagein lieu ofa cash settlement must provide that such an election\nis not exercisable without the prior written approval of the Association, or when in\nconflict with the insurancetrust provisions contained herein, or any requirement of\nlaw.\n10.4\nFirst Mortgagee Protection\n(a)\nThe Association shall, upon written request, provide each First\nMortgagee with a letter wherein the Association agrees (i) to give timely written\nnotice to each First Mortgagee or Servicer, or any entity or individual designated by\na First Mortgagee or Servicer, whenever damage (whether arising from casualty,\ncondemnation or otherwise) to the Common Areas and related facilities exceeds\n$10,000, (ii) to give timely written notice to the First Mortgagee or Servicer, or any\nentity or person designated by a First Mortgagee or Servicer, whenever damage\n(whether arising from casualty, condemnation or otherwise) to a Lot knownto the\nAssociation covered by the First Mortgage exceeds $1,000, and (111) any lapse,\ncancellation or material modification of any insuranceorfidelity bond maintained by\nthe Association.\n(b)\nEach hazard insurance policy shall be written by a hazard insurance\ncarrier which has a financialrating by Best’s Insurance Reports of Class VIorbetter,\n \n \n \nor if this rating service is discontinued, an equivalent rating by a successor thereto or\na similar rating service.\n(c)\nEach insurance carrier must be specifically licensed or authorized by\nlaw to transact business within the State ofArizona.\n(d)\nPolicies shall not be utilized where: under the terms of the carrier’s\ncharter, bylawsor policy, contributions may be required or assessments may be made\nagainst the Owner or First Mortgagee or any entity or individual purchasing or\nguaranteeing any First Mortgage or may becomelien superior to any First Mortgage;\nby the terms of the carrier’s charter, bylaws or policy, loss payments are contingent\nupon action by the carrier’s board of directors, policyholders, or members; or, the\npolicy includes any limiting clauses (other than insurance condition) which could\nprevent any Owneror the First Mortgagee, successors or assigns from collecting\ninsurance proceeds.\n(e)\nThe mortgagee clause of each insurance policy shall be properly\nendorsed, and necessary notices of transfer must have been given, and any other\naction required to be taken must be taken in orderto fully protect, under the terms of\nthe policies and applicable law, the interestof all First Mortgagees, their successors\nand assigns. Where permissible, the insurance carrier shall be required to name the\nServicer of a First Mortgage or {nameof Servicer}, its successors or assigns, as the\nFirst Mortgagee under the mortgagee clause. Ifpermissible, where a deedoftrustis\nutilized, the insurance carrier shall be required to use {name of Servicer}, its\nsuccessors or assigns, beneficiary or {name oftrustee}, its successors or assigns, for\nthe benefit of {Name of Servicer} instead of only the nameofthe trustee under the\ndeed oftrust.\n(fp)\nAll insurance drafts, notices, policies, invoices and all other similar\ndocuments,or their equivalent, shall be delivered directly to each Servicer involved,\nif any, regardless of the manner in which the mortgagee clause is endorsed. The\nServicer’s address on any First Mortgagee endorsementon a policy shall be used in\nthe endorsements in lieu of the address of the First Mortgagee if requested by the\nFirst Mortgagee.\n(g)\nFirst Mortgagees may pay overdue premiums, or may secure new\n_ insurance coverage on the lapse of a policy, with respect to any insurance required\nto be maintained by the Association as provided in this Section 10, and First\nMortgagees making expenditures therefor shall be owed immediate rermbursement\nby the Association.\n10.5\nNon-Liability of Association/Board. Notwithstanding the duty of the\nAssociation to obtain insurance coverage as stated herein, neither the Association nor any\nBoard memberor other Person shall be liable to any Owner or Mortgagee if any risks or\nhazards are not covered byinsurance.or.ifthe amount of insurance is not adequate.It shall\nWArbor Lanevil. -CORs 1.29402\n  \n \n \na ee ee et\nTOT ee\nRR et hme a ed Lame me\nTR aeG tate Bence Mebane rete be etdce Oh des\noe Saks\nbe the responsibility of each Ownerto ascertain the coverage and protection afforded bythe\nAssociation’s insurance and to procure and pay for such additional insurance coverage and\nprotection as the owner maydesire.\n10.6\nPremiums. Premiums for insurance policies purchased by the Association\nshall be paid by the Association as a Common Expense, exceptthat the amountorincrease\nover any annual or other premium occasioned by the use, misuse, occupancy or abandonment\n-of a Lot or its appurtenances, or ofthe Common Areas, by an Owner, or by any Occupant,\n[Arbor LaneAL. - 6 Rs 12202\nguest or invitee of an Owner, shall be assessed against that particular Owner.\n10.7\nInsurance Claims. The Association, acting by and through its Board,is hereby\nirrevocably appointed agent and attorney-in-fact for each Ownerand for each holder of a\nFirst Mortgage or other lien upon a Lot, and for each ownerof any other interest in the\nProperty, subject to the provisions contained herein, to adjust all claims arising under\ninsurancepolicies purchased by the Association and to execute and deliver releases upon the\npaymentof claims, and the Board has full and complete powerto act for the Association in\nthis regard.\n10.8\nBenefit. Except as otherwise provided herein,all insurance policies purchased\nby the Association shall be for the benefit of the Association, the Owners, FirstMortgagees\nand interest Institutional Guarantors, as their interested Institutional Guarantors, as their\ninterests may appear.\n11.\nDamage. Destruction and Condemnation.\n11.1\nDefinitions. As used in this Section, the following terms shall have the\nfollowing definitions:\n(a)\n“Destruction” shall exist whenever the Board determines that, as a\nresult ofany casualty, damageor destruction, the CommonAreas, or any part thereof,\nhave been damaged.\n(b)\n“Condemnation” means the taking of any property interest in the\nCommon Areas by the exercise of a power of eminent domain, or the transfer or\nconveyance of such an interest to a condemningauthority in anticipation of such an\nexercise.\n(c)\n“Restoration” in the case of Destruction means the repair or\nreconstruction of the damaged or destroyed portions of the Common Areas in\naccordance with the provisions of this Section. “Restoration” following any\nCondemnation means the repair or reconstruction of the remaining portionsof the\nCommon Areas, if any, to restore the Common Areas to an attractive, sound,\nfunctional desirable condition, including, if the Board deems\nit desirable or\nnecessary, the replacement of any improvements so taken. Insofar as reasonably\npossible, taking ©Inte:‘onount fheyportions of the Common Areas subject to\n    \n \n \n \nFisAthor DanctAl CCBa 1-292das\nDestruction or taken by Condemnation, Restoration shall be in conformance with the\noriginal plans and specificationsor, if the Board determines that adherenceto original\nplans and specifications is impracticable or is not in conformance with applicable\nlaws, ordinances, building codes or other governmental rules or regulations then in\neffect, such repairs or reconstruction shall be of a kind and quality substantially the\nsame as the condition in which the affected portions of the Common Areas existed\nbefore the Destruction or Condemnation. Any Restoration not in accordance with\noriginal plans and specifications shall first be approved by a majority of First\nMortgagees, based on one vote for each mortgage owned.\n(d)\n“Restoration Funds” in the case of any Destruction means any\nproceeds of insurance received by the Association as a result of the Destruction of\nany portion of the Common Areas, but excludingthat portion of any proceeds of\ninsurance legally required to be paid to any party other than the Association,\nincluding a Mortgageeofall or any part of the Common Areas, and any uncommitted\nfunds or income of the Association other than that derived through assessments or\nspecial assessments. “Restoration Funds” in the case of Condemnation means the\nentire amount received by the Association as compensation for any Condemnation\nincluding, but not limited to, any amount awarded as severance damages,. but\ndeducting therefrom reasonable and necessary costs and expenses including, but not\nlimited to, attorneys’ fees, appraiser’s fees and court costs, together with any\nuncommitted funds or income of the Association other than that derived through\nassessments or special assessments.\n11.2 Restoration of Common Areas.\nIn the\nevent of any Destruction\nor\nCondemnation of the Common Areas, the Association shall undertake the Restoration of the\nCommon Areas without a vote of the Owners unless two-thirds of each class ofMembers of\nthe Association and two-thirds of the First Mortgagees (based upon one vote for each\nMortgage owned) agree in writing at or prior to the special meeting hereinafter providedthat\nthe Association should not undertake the Restoration of the Property.\n11.3.\nConstruction\nContract.\nIn\nthe\nevent\nthe Association undertakes\nthe\nRestoration of the Common Areas, the Board shall contract with a reputable contractor or\ncontractors whoshall, ifrequired by the Board, post a suitable performance or completion\nbond. The contract with such contractors shall provide for the paymentof a specified sum\nfor completion of the work described therein and shall provide for periodic disbursements\nof funds, which shall be subject to the prior presentation of an architect’s certificate\ncontaining such provisions as may be appropriate in the circumstances and deemedsuitable\nby the Board.\n11.4\nRestoration Funds. Upon receipt by the Association of any insurance\nproceeds, condemnation awards\nor other funds\nresulting from the Destruction\nor\nCondemnation of any portion of the Common Areas, the Association may cause the\nRestoration Fundsto be paid directly to a bank located in Maricopa County, Arizona, whose\naccountsare insured by the.Federal Depesit.Insurance Corporation,or its successor agency,\n   \n \n \nTiAAcbor LanALCKs 292te\nas designated by the Board, as trustee (the “Restoration Funds Trustee’) for the Association.\nAny such funds shall be received, held and administered by the Restoration Funds Trustee\nsubject to a trust agreement consistent with the provisions ofthis Declaration and which shall\nbe entered into between the Restoration Funds Trustee and the Association. Disbursement\nof such funds shall be made only upon the signatures of two members of the Board.\nDisbursements to contractors performing any repair or reconstruction upon the Common\nAreas shall be made periodically as the work progresses in a manner consistent with\nprocedures then followed by prudent lendinginstitutions in Maricopa County, Arizona.\n11.5\nSpecial Assessmentfor Restoration. If the Restoration Fundsare, or appear\nto the Board tobe, insufficient to pay all of the costs of Restoration, the Board shall, upon\nthe affirmative vote in person or by proxy of two-thirds of each class of Members ofthe\nAssociation at a meeting duly called for such purpose, levy a special assessment to make up\n‘any deficiency. Such a special assessment shall be levied against all Owners to the extent\nnecessary to make up anydeficiency for deficiency for Restoration of the Common Areas.\nThe amount of the required special assessment shall be determined by the Board,in its sole\ndiscretion, and notices ofsuch amountshall be given to the Owners prior to the Owners’ vote\nthereon The special assessmentrelating to the Restoration of the Common Areasshall be\nlevied against the Owners in the same proportion as their Fractional Interests. The special\nassessmentshall be payable at such timeor in installments from timeto time, as the Board\nmay determine. The special assessment provided for herein shall be secured by the lien\nprovided for in Section 7 of this Declaration.\n11.6\nSpecial Meeting. In the event of the Destruction or Condemnation of the\nCommon Areas, the Board,at its election or upon presentation of a petition signed by not\nless than ten percent (10%) ofthe Owners requesting such a meeting, shall convenea special\nmeeting of the Association for resolving whether the Association should undertake the\n~\nRestoration of the Common Areas in accordance with Section 11.2.\n11.7.\nDecision Not to Restore. If the Common Areas are not to be restored\nfollowing any Destruction or Condemnation, the Board shall use the Restoration Fundsto\npay all of the Mortgages or other liens or encumbrances of record with respect to the\nCommon Areas which will not be restored. If any Restoration Funds remain after such an\napplication of them, they shall be held by the Association for working capital or reserves, in\nthe discretion of the Board.\n11.8\nEmergency Repairs. Notwithstanding any provision of this Section 11, the\nBoard may, without any vote ofthe Owners or FirstMortgagees, undertake any repair which\nthe Board deems reasonably necessary to avoid further damage or destruction whichis likely,\nin the Board’s sole opinion, to cause substantial diminution in the value of the Common\nAreas or which presents an unreasonable risk of injury to persons or property.\n11.9\nCondemnation of a Lot. In the event of the Condemnation of all or\nsubstantially all of a Lot so that it is no longer tenantable following reasonable repair or\nreconstruction, the Lot shall.cease:to.be:part-of-the Project, the Ownershall cease to be a\n  \n \n \nTI2AAabor Dancwll, -CCH 120407aloe\nIET\nmember of the Association, and the Fractional Interest of each remaining Owner shall\nautomatically be recomputedto reflect appropriately the number of Lots remaining in the\nProject.\n[1.10\nDestruction ofa Lot. In the event that any Lot is damaged or destroyed (in\nwholeor in part), the Ownershall promptly undertake or cause to be undertaken either (a)\nthe repair or reconstruction of the damaged or destroyed portions of the Lot, or(b) the razing\nof the damagedor destroyed portions of the Lot and restoration of the Lot to a safe, sound\nand sanitary condition.Ifa Lot is not restored within a reasonable time following notice by\nthe Board to the Owner whenrestoration is mandatory hereunder, then the Association shall\nbe entitled to exercise any right or remedy available under this Declaration, including\naffirmative injunctive relief, and shall have the further right to enter into possession of the\nLot in order to undertake the restoration of the Lot in accordance with this Section at the\nexpense of such Ownerofsuch Lot.\n[2.\nParty Walls.\n12.1\nRights and Duties. The rights and duties of the Owners and the Association\nwith respect to party walls shall, to the extent not inconsistent with the provisions ofthis\nSection, be governed by the general rules of law regarding party walls and ofliability for\nproperty damagedueto negligent ofwillful acts or omissions. The cost ofreasonable repairs\nand maintenance of a party wall shall be shared by the Owners who make use ofthe wall in\nproportion to their use.\n‘12.2\nRestoration.If a party wall is destroyed or damaged byfire or other casualty,\nany Owner whohas used the wall mayrestoreit, and if the other Owners thereafter make use\nof the wall, they shall contribute to the cost of restoration in proportion to their use, without\n-\nprejudice, however, to the right of any such Ownerto call for a larger contribution from the\nothers under any ruleof law regarding liability for negligent or willful acts or omissions.\nNotwithstanding any other provision of this Section, an Owner who,by his negligent or\nwillful act, causes the party wall to be damagedor to be exposed to the elements shall bear\nthe whole cost of furnishing the necessary protection against such elements. The right of an\nOwnerto contribution from any other owner under this Section shall be appurtenantto the\nland and shall pass to the Owner’s successorsintitle.\n12.3.\nDisputes. In the event of any dispute between Owners concerning a party\nwall, or under ‘the provisions of this Section, upon the written request of any one of the\n- Owners addressed to the Association, the disputed matter shall be decided by the Board,\nwhose decision shall be final and binding upon the Owners (subject to any contrary\ndetermination by a court ofcompetentjurisdiction).\n13.\nMaintenance, Repairs and Replacements.\n13.1\nMaintenance ofLots. Each Owner shall furnish and be responsible for, at his\nown expense, all of the maintenance,’\nand:replacements of his own Lot andall\n  \nMeey he\n \n \nThAthor faneAl. CCRs b20A2do:\nimprovements to it. Each Ownershall maintain his Lot in a neat and orderly condition, in\naccordance with such rules and regulations as may be adopted by the Association, and\nconsistent with the level of quality, and in accordance with the plans and specifications\napplicable to the initial construction within the Project (subject to any modifications thereof\nin accordance with Section 14 hereofand the level ofmaintenance of the Common Areas by\nthe Association.\n13.2.\nMaintenance ofCommon Areas. Except as otherwise provided herein to the\ncontrary, maintenance, repairs and replacements of the Common Areas shall be furnished by\nthe Association as part of the Common Expenses, subject to the Bylaws and rules and\nregulation of the Association. The Common Areasshall be maintained by the Association\nin accordance with the landscaping plan for the Project approved by the City of Chandler.\nIf, due to the intentional act or negligence of an Owner or his invitee, guest or other\nauthorized visitor (for whom the Owner may be held legally responsible), or an Occupant,\ndamage is caused to the CommonAreas or maintenance, repairs or replacements are required\nwhich would otherwise be at the common expense, then the Ownershall pay for the damage\nand for such maintenance, repairs and replacements as may be determined by the Board, to\nthe extent not covered by the Association’s insurance. The Owner’s payment obligation\nunder the preceding sentences shall be secured by the lien provided for in Section:7hereof.\nAn authonzed representative of the Board, or of the manager or managingagent of the\nProject, and all contractors and repairmen employed or engaged by the Board or the manager\nor managing agent, shall be entitled to reasonable access to each of the Lots as may be\nrequired in connection with maintenance, repairs or replacements of or to the Common Areas\nor any equipment, facilities or fixtures affecting or serving the Common Areas.\n13.3.\nMaintenance ofLandscaping within Rights ofWay and Public Yards. Except.\nas otherwise provided herein to the contrary, maintenance, repairs and replacements of the\nlandscaping and related facilities and fixtures (including, but not limited to, plant material\nand irrigation systems) within the Rights of Way and the Public Yard of any Lotshall be\nfurnished by the Association as part of the Common Expenses, subject to the Bylaws and\nRules and Regulations ofthe Association. Such landscaping andrelated facilities and fixtures\nshall be maintained by the Association in accordance with the landscaping plan for the\nProject approved by the City of Chandler. Any plant or tree replacement made by the\nAssociation shall be as per the landscaping plan and not to mature size. No Owneror\nOccupantshall vary the landscaping in the Public Yard of any Lot withoutthe prior written\napprovalofthe Board. If, duetothe intentional act or negligence of an Owner orhisinvitee,\nguest or other authorized visitor (for whom the Owner maybeheldlegally responsible), or\nan Occupant, damage is caused to such landscaping or related facilities or fixtures, or\nmaintenance, repairs or replacements are required which would otherwise be at the common\nexpense, then the Owner or Occupant shall pay for the damage and for such maintenance,\nrepairs and replacements as may be determined by the Board, to the extent not covered by\nthe Association’s insurance. An authorized representative of the Board, or of the manager\nor managing agent ofthe Project, and all contractors and repairmen employed or engaged by\nthe Board or the manager or managing agent, shall be entitled to reasonable access to each\n \n \n \n \nTiAArbor Lang... CORs [-29-02.doy\nof the Lots as may be required in connection with maintenance, repairs or replacements of\nor to such landscapingorrelated facilities or fixtures.\n13.4\nMaintenance ofCommon Areas and Landscaping Within, Rights of Way and\nPublic Yards. To the extent the Association is obligated pursuant to Sections 13.2 and 13.3\nto maintain the CommonAreas, and the landscaping within Rights ofWay and Public Yards\nand the Association fails to so maintain such areas as required or to the standards required,\nthe City of Chandler may undertake such maintenanceof suchareas, and bill the Association\nfor same. The City of Chandler is hereby granted an easement to access such areas for the\nmaintenancethereofto the extent undertaken by the City of Chandler pursuant to Section 13.\nIf the Association fails to pay said bill, the City shall have the right to assess the Members\nto collect same as such authority is otherwise provided to the Association in Section 7.9\nhereof without any vote ofthe Members and same maybe enforced bya lien as provided in\nSection 7.4 hereof.\n13.5\nEnforcement ofObligations.\nIn the event that any Ownerfails to maintain\nand repair his Lot and improvements onit as required here under, the Association, following\nreasonable notice to the Owner (except in emergency situations where such notice is not\npractical), in addition to all other remedies available to it hereunderor by law, and without\n. .Walving any alternative remedies,shall have the right, through its agents and employees,to\nenter upon the Lot any reasonable time and in any reasonable manner, and to repair,\nmaintain, and restore the Lot, including the exterior of the improvements erected thereon.\nEach Owner(by acceptance of a deed for his Lot) hereby covenants and agrees to repay to\nthe Association the cost ofany such repairs immediately upon demand, andthe failure of any\n‘Owner to make required paymentshall carry with it the same consequences as the failure to\npay anyassessment hereunder when due,including the imposition ofinterest and late charges\nin accordance with the rules and regulations of the Association, all of which shall be the\npersonal obligation of the Owner and secured by the lien provided forin Section 7.\n13.6\nDisputes. Ifany maintenance, repair, replacement or reconstruction involves\nmore than one Lot, and if the Owners of the Lots do not agree as to who should perform the\nwork,or as to the allocation ofthe cost thereof, the decision shall be made by the Board and\nthe decision shall be final and binding upon the Owners (subject to any contrary\ndeterminationby a court of competentjurisdiction).\n14.\nArchitectural Control.\n14.1\nArchitectural Committee. The Board mayestablish and appoint the members\nof an Architectural Committee to perform the functions of the Architectural Committee set\nforth in this Declaration. Pror to the appointmentofthe initial members of the Architectural\nCommittee, and at any time whenthere is no one serving on the Architectural Committee\n(whether due to death, resignation or removal); the Board shall exercise any and all rights,\npowers, duties and obligations ofthe Architectural Committee. The Architectural Committee\nshall adopt, and may from time to time amend, supplement and repeal, architectural and\nlandscaping standards for the Property and application procedures and shall make the same\navailable to Owners. Such..standards :and:.precedures shall interpret, implement ‘and\n   \n \nsupplement this Declaration, and shall set forth procedures for Architectural committee\nreview. Such standards and procedures may include, without limitation, provisions regarding:\n(a)\narchitectural design, with particular regard to the harmony of the\ndesign with surroundingstructures and topography;\n(b)\nlandscaping design, content and conformance with the character of the\nProperty, and permitted and prohibited plants;\n(c)\nrequirements concerning exterior color schemes, exterior finishes and\nmaterials; and\n(d)\nsignage.\nSuch standards and procedures shall have the same force and effect as the rules and regulations\npromulgated hereunder by the Board. Such standards and procedures and\nall amendments,\nsupplements, repeals or replacements to or ofsuch standards and proceduresshall be subject to the\napproval of the Board.\n142\nSubmission and Review of Plans. Except for improvementsinstalled or\nconstructed by or for any Designated Builder, the plans for which improvements have been\napproved by the Association as of the date hereof, and except for landscaping installed by\nor for any Designated Builder, no construction, building,\nadditions, modifications,\nimprovements,alterations, repairs, excavation, grading, landscaping or other work which in\nany wayalters the exterior appearance of any Lot or any structure or improvement thereon\nshall be made or done without the prior written approval of the Architectural Committee. No\nchanges or deviations in or from the plans and specifications once approved by the\nArchitectural Committee shall be made without the prior written approval of the.\nArchitectural Committee. Nothing contained herein shall be construed to limitthe nght of\nan Owner to makeinterior alterations within his Lot which are not Visible from Neighboring\nProperty.\n14.3.\nOther Approvals: Liability. No approval by the Architectural Committee of\nany proposed construction, installation, modification, addition or alteration shall be deemed\nto replace or be substituted for any building permit or similar approval required by any\napplicable governmental authority, nor shall approval be deemed to make the Architectural\n|\nCommittee (or the Board or the Association) liable or responsible for any damageor injury\nresulting or arising from any such construction, modification, addition or alteration. Neither\nDeclarant, any Designated Builder, the Association, the Board, management agents of the\nAssociation, nor the Architectural Committee (nor any memberthereof) shall be Hable to the\nAssociation, any Owneror any other Person for any damage,loss or prejudice suffered or\nclaimed on accountof:\n \n(a)\nthe approvalor disapproval of any plans, drawings orspecifications,\nwhether or not defective;\n|\n.\n  \nTiNrbot Pane. - CO Rs [20-02doo\net ace hei dn we eee ben\nfeaeee\n \n \n(b)\nthe construction or performance of any work, whether or not pursuant\nto approved plans, drawings and specifications; or\n(c)\nthe developmentof any Lot.\n14.4\nFee: Time Period for Approval. The Board may establish a reasonable\nprocessing fee to defer the costs ofthe Architectural Committee in considering any request\nfor approvals submitted to the Architectural Committee or for appeals to the Board, which\nfee shall be paid at the time the request for approval or review is submitted. Any materials\nsubmitted to the Architectural Committee for approval pursuant to this Section 14 shall be\ndeemed approved by the Architectural Committee unless notice of disapproval thereofis\ngiven to the Ownerwithin 45 days after submission to the Architectural Committee.\n14.5\nInspection. Any member or authorized consultant of the Architectural\nCommittee, or any authorized officer, director, employee or agent of the Association, may\nat any reasonable time and without being deemed guilty of trespass enter upon any Lot, after\nreasonable notice to the Owner or Occupant of such Lot, in order to inspect the\nimprovements constructed or being constructed on such Lot to ascertain that such\nimprovements have been, or are being, built in compliance with this Declaration, the\nstandards and procedures adopted by the Architectural Committee and any approvedplans,\ndrawings or specifications.\n146\nWaiver. Approval by the Architectural Committee of any plans, drawings or\nspecifications for any work done or proposed, or for any other matter requiring approval of\nthe Architectural Committee, shall not be deemed to constitute a waiver of any right to\nwithhold approval of any similar plan, drawing, specification or matter subsequently\n|\nsubmitted for approval.\n14.7\nAppeal to Board. Any owner or Occupant aggrieved by a decision of the\nArchitectural Committee may appeal the decision to the Board in accordance with procedures\nto be established in the Architectural Committee’s standards and procedures.In the event the\ndecision of the Architectural Committee is overruled by the Board on anyissue or questions,\nthe prior decision of the Architectural Committee shall be deemed modified to the extent\nspecified by the Board.\n15.\nEncroachments. Each Lot and the CommonAreasshall be subject to an easementfor\nencroachments, including, but not limited to encroachments of walls, ceilings, ledges, floors, and\nroofs created by construction, settling and overhangs as originally designed or constructed, or as\ncreated by discrepancies between the Plat and the actual construction.If any portion ofthe Common\nAreas actually encroaches upon any Lot, or if any Lot actually encroaches upon any portion of the\nCommon Areas, or if any Lot actually encroaches upon another Lot, as the Common Areas and the\nLots are shownby the Plat, an easement for the encroachment and for the maintenancetherefor, so\nlong as they stand, shall exist. In the event that any Lot or structure is repaired, altered or\nreconstructed, similar encroachments shall be permitted and an easementfor the encroachments and\nfor the maintenancethereof shall-exist.Each, @wasr-and:any other Person acquiring any interest in\nArbor Langa- CCH 1-29402.dou\n   \n \n \n \nthe Property shall be deemed to acquiesce in and agree to the existence of such easements by\naccepting a deed from anyseller or by acquiring any interest whatsoever in the Property.\n16.\nRental Lots. Notwithstanding anything herein to the contrary, any Owner may rent\nor otherwise grant occupancy nghts to any Lot (but not less than an entire Lot) owned by him, with\nthe lessee, renter or other Occupant being entitled to the same privileges of use of the Lot and\nCommon Areas and subject to the samerestrictions as the Ownerof the Lot. With the exception of\na First Mortgagee in possession of a Lot following a default in a First Mortgage, or a foreclosure\nproceeding or deed or other arrangementin lieu of foreclosure, no Owner mayallow the useofhis\nLot for transient or hotel purposes or for a period of less than 30 days. All lease or other occupancy\nagreements, including those for a month-to-month tenancy, shall be in writing and provide that the\nterms of the agreementshall be subject in all respects to this Declaration and the Articles, Bylaws\nand rules and regulations of the Association, and that failure to comply with the provisions of such\ndocuments shall constitute a default under the agreement. A copy ofthe agreementshall be delivered\nby the Ownerto the Board on or before the commencement ofoccupancy under the agreement. Each\nOwner granting occupancy nghts to his Lot shall remain jointly and severally liable with the\nOccupant for the payment of any assessment required hereunder and compliance. with this\nDeclaration, the Articles, Bylaws and rules and regulations of the Association, including any fines\nor penalties levied as a result of a violation thereof.\n17.\nUse and Occupancy Restrictions.\n17.1\nResidential Use. No Part of the Property shall be used for other than\nresidential and related purposes except that the Designated Builder is hereby reserved the\nright to maintain sales offices, model units, and signs on the Property, together with rights\nof ingress thereto and egress therefrom, until all Lots have had residences constructed on\nthem and the Lots and residences have been sold and conveyed. Each Lot shall be used as\npermitted by this Declaration and for no other purpose. Except as allowed by this or the\nfollowing sentence, no religious, professional, commercial or industrial operations of any\n—\nkind shall be conducted in or upon any Lot or the Common Areas, except such temporary\nuses as shall be permitted to Designated Builder while Lots are being constructed and sold\nby the Designated Builder an Owner may conduct a businessactivity within a single-family\nhouse located on a Lot so long as the existence or operation ofthe business activity (a) is not\napparent ordetectable by sight, sound, or smell from the exterior ofthe single-family house;\n(b) conformsto all zoning requirements for the Project; (c) does not increase the liability or\ncasualty insurance obligation or premium of the Association; and (d) is consistent with the\nresidential character of the Project and does not constitute a nuisance or a hazardous or\noffensive use including, without limitation, excessive or unusual traffic or parking of\nvehicles in the vicinity of any Lot or the Common Area as may be determined in the sole\ndiscretion of the Board. The terms “business” and “‘trade,” as used in the previous sentence,\nshall be construed to have their ordinary and generally accepted meanings and shall include,\nwithout limitation, any occupation, work or activity undertaken on an ongoing basis which\ninvolves providing goods or services to persons other than the provider’s family and for\nwhich the provider receives a fee, compensation or other form of consideration regardless\nTnArbor Lanevil. -CRs 1-29412k  \n \n \nSM ihtcy dt a Me elt\n(iAAhor Landal- CCHS 1-294/24be\nchee eee bee ee TA tak A 5 peroeeeBeeeT\nof whether(a) such activity is engaged in full or part-time; (b) such activity is intended to or\ndoes generate aprofit; (c) a license is required therefor.\n17.2.\nLandscaping within Public Yard. The landscaping within the Public Yard on\nEach Lot shall be completed within 3 monthsafter the close of escrow of the residence on\nthe Lot. No landscaping (other than landscapinginstalled by or for the Designated Builder)\nshall be installed, placed or maintained anywherein or upon the Public Yard of a Lot unless\nthe plans therefore have been approved by the Architectural Committee as provided in\nSection 14.\n17.3.\nTemporary Structures. No structure ofa temporary character, whethertrailer,\nbasement, tent, shack, garage, barn, shed or other, shall be used as a residence, or otherwise\nkept on a Lot so as to be Visible from Neighboring Property, at any time except such\nstructures as the Designated Builder mayfind necessary or convenient to the development\nand sale ofLots.\n.\n17.4\nCancellation ofInsurance. No Ownershall permit anything to be doneor kept\nin his Lot or in or upon any Common Areas which will result in the cancellation ofinsurance\nmaintained by the Association on the Common Areas or which would be in violation of any\nlaw.\n17.5\nSigns. No sign of any kind shall be displayed to the public view on any Lot\nor any Common Areas without the approval of the Architectural Committee, except (a) such\nsigns as may be used by the Designated builder in connection with the developmentand sale\nof Lots, or (b) one “For Sale”or “For Renf’ sign on each Lot having a total face area of 5\nfeet or less, the location ofwhich sign may be regulated by the Architectural Committee.\n17.6\nPets. Subject to the provisions of Sections 17.7 and 17.20, a reasonable\nnumber of small, commonly accepted household pets may be kept in each Lot without the\nprior approval of the Board. All additional pets are prohibited unless approved in advance\nby the Board. No animalshall be kept, bred or maintained for any commercial purpose, and,\nexceptas otherwise provided above, no animals of any Kindshall be raised, bred or keptin\nany Lot or in or upon any Common Areas. No animalshall be allowed to becomea nuisance,\nwhether by malting an unreasonable amount of noise or otherwise. All pets shall be leashed\nor otherwise appropriately restrained when in any part of the Property other than in a Private\nYard or a residence. Upon the request of any Owner, the Board shall determine, in its sole\n—\nand absolute discretion, whether, for the purposes of this Section 17.6, a particular animal\nis a commonly accepted household pet or whether a particular animal is a nuisance. The\nkeeping of pets shall also be subject to such additional rules and regulations with respect\nthereto as the Association mayadopt.\n17.7.\nNuisances. No Ownershall permit or suffer anything to be done or kept about\nor within his Lot which will obstruct or interfere with the nghts of other Owners or\nOccupants, or annoy them by unreasonable noises or otherwise, nor commit or permit any\nnuisance about or within hisLet-orcommit.or sufferanyillegal act to be committed therein.\n   \n \n \n \nIRArbor Eane\\AL.- CORs 1-20402sis\nFee eee ae reeeeme etme eteFeteteelele\nEite\nmtay\neteaeoePEE\nEach Ownershall comply with all of the requirements of the health authorities and ofall\nother governmental authorities with respect to his Lot and the Common Areas.\n17.8\nVehicles. Except as specifically permitted by, the Board, (a) no boats,trailers,\nmotor homes, campers, trucks classed by manufacturer capacity rating as exceeding 3/4 ton,\nor unlicensed or inoperative vehicles shall be parked or stored in or upon the Lot (other than\nin a portion of the Lot so that no portion ofthe parked vehicle is visible from a Neighboring\nProperty) CommonAreasorthe streets of the Project for more than 4 hours during any 24-\nhour period; and (b) no vehicle shall be repaired or rebuilt upon any portion of a Lotthatis\nVisible from Neighboring Property or upon the Common Areasorthe streets of the Project.\n17.9\nLighting. Except as initially installed by or for the Designated Builder or as\notherwise approved in writing by the Architectural Committee, no spotlights, flood lights or\nother high intensity lighting shall be placed or utilized upon any Lot which will allow light\nto be directed or reflected in any manner on the CommonAreas, or any part thereof, or any\nother Lotor streets in the Project.\n.\n17.10\nNo Windbells. No windbells, windchimes or similar devices shall be\npermitted on the Property except as approved in writing by the Architectural: Committee.\n17.11\nAir Conditioners andMechanical Equipment. No window air conditioners or\nportable units of any kind Visible from Neighboring Property shall be installed in any Lot\nexcept as approved in writing by the Architectural Committee. No heating, cooling,\nventilating or air conditioning units, solar panels or equipment, or other mechanical\nequipment of any kind, shall be placed on any Lot soas to be Visible from Neighboring\nProperty except as approved in writing by the Architectural Committee.\n17.12\nWindow Coverings. Within sixty (60) days after the date of close of escrow,\neach Ownershall install permanent draperies or suitable window coverings on windows\nfacing the street, exclusive of garage windows. All such window coverings facingthestreet\nmust show white, earth tone or pastel colors unless otherwise approved in writing by the\nArchitectural Committee. No reflective materials including, but not limited to, aluminum\nfoil, reflective screens or glass, mirrors or similar type items, shall be permitted to be\n|\ninstalled or placed on the outside or inside of any windows which are Visible from\nNeighboring Property without the prior written approval of the Architectural Committee,\nunless installed by Declarant or a Designated Builder, which need no such approval.\n17.13\nAntennas. Mini-dishtype satellite dishes are allowed so long as the location\nof same has been approved in writing in advance of installation by the Architectural\nCommittee. No other radio, television or other antennasorsatellite dishes of any kind or\nnature shall be placed or maintained upon any Lot except as may be permitted by the\nArchitectural Committee.\n17.14\nTrash Collection. The Association may maintain trash and garbagecollection\nbins or similar facilities isuch areas.of.ihe:-Coramon Areas as the Board determines. No\n   \n  \neteetelAAaleacEAog a Teeaneete meSm Ce eaa\nFeAdbor aneAL OUR Dye2ale\ngarbageor trash shall be kept, maintained or contained in any Lotso as to be Visible from\n‘\nNeighboring Property except in sanitary containers withlids or covers. Sanitary containers\nplaced in public view for collection shall be promptly stored out of public view after\ncollection.\n17.15\nClotheslines. Outside clotheslines or other facilities for drying or airing\nclothes shall not be erected, placed or maintained on the Property unless they are within the\nPrivate Yard on a Lot and not Visible from Neighboring Property..\n17.16\nVegetation. No shrub,tree or other vegetation belonging to any Ownershall\nbe allowed to overhang another Lot without the consent of the Ownerofthe otherLot. Any\nsuch consent may be revokedat any time after having been given.\n17.17\nNo Mining. No portion ofthe Property shall be used in any mannerto explore\nfor Or remove any water, oil or other hydrocarbons or\nr minerals of any kind or earth substance\nof any kind.\n17.18\nSafe Condition. Without limiting the foregoing, each Ownershall maintain\nand keep his Lot and any Common Areas subject to his exclusive control at all times in a\n-\nsafe, sound and sanitary condition and repair and shall correct any condition or refrain from\nany activity which mightinterfere with the reasonable enjoyment by other Ownersoftheir\nrespective Lots or the Common Areas.\n17.19\nEnforcement. The Board orits authorized agents may enter any Lot in which\na violation oftheserestrictions or the rules and regulations ofthe Association existsand rnay\ncorrect such violation at the expense of the Ownerofthe Lotif the violation is not cured\nwithin 30 days after written notice of the violation is given to the Owner of the Lotandthe\nOwneris given an opportunity to be heard by the Board (ifwritten request therefore is made\nby the Owner within such 30-day period); provided, however, that theforegoing notice and\ncure period and opportunity to, be heard shall not applyif, in the sole opinion ofthe Board,\nthere exists an emergency which threatens health, safety or property, or in the event of\nrepeated violations of these restrictions or the rules and regulations of the Assoctation.\n17.20\nChanges/Waivers. The Association may modify or waive the foregoing\n|\n|\nrestrictions with the prior approval of a Majority of Owners, or otherwise restrict and\nregulate the use and occupancy of the Property, the Common Areas and the Lots by\nreasonable rules and regulations ofgeneral application adopted by the Board from timeto\ntime. All remedies described in Section 20 hereofand all other rights and remedies available\nat law or equity shall be available in the event of any breach by any Owner,or hisguests,\ninvitees, licensees, family members, or tenants, or any Occupant or other Person of any\nprovision of this Section 17 or the rules and regulations of the Association.\n18.\nRights and Duties of First Mortgagee. Notwithstanding and prevailing over any other\nprovisions of this Declaration, the Articles, Bylaws, rules and regulations of the Association, and\n \n \n \nmanagement agreements, the following provisions shall apply to benefit each holder of a First ~\nMortgage:\n18.1\nNo Right ofFirst Refusal. Noneof the ConstituentDocuments shall provide\nthat the right of an Ownertosell, transfer or otherwise conveyhis Lot will be subject to any\nright offirst refusal, or similar restriction, in favor of the Association. Any “right offirst\nrefusal” that may ever be contained in the Constituent Documents shall not impair oraffect\nthe nghts of a First Mortgagee to foreclose or take title to a Lot pursuant to the remedies\nprovided in the First Mortgage, to accept a deed (or assignment) in lieu offoreclosure in the\nevent of default by a Mortgagor, or interfere with a subsequent sale or lease of a Lot so\nacquired by the First Mortgage.\n18.2.\nMortgagee in Possession. A First Mortgagee who comes into possession of\na mortgaged Lot by virtue of foreclosure of the Mortgage, or through any equivalent\nproceedings, such as, but not limited to, the taking of a deed or as8signment in lieu of\nforeclosure or acquiringtitle at a trustee’s sale undera first deed oftrust, or any third party\npurchaserat a foreclosure sale or trustee’s sale, will not be liable for the Lot’s unpaid dues,\ncharges or assessments which may accrueprior to the time the FirstMortgagee or third party\npurchaser comes into possession.ofthe Lot. Any such Person shall acquiretitle free and clear\nof any lien authorized byorarising out ofthe provisions of this Declaration which secures\nthe payment of any dues, charges orassessments accrued prior to the time the Person came\ninto possession of the Lot. Any such unpaid dues, charges or assessments against the Lot\nforeclosed shall be deemed to be a Common Expense charged proratably against all of the\nLots. Nevertheless, in the event the Owner against whom the original assessment or charge\nwas madeis the purchaser or redemptioner, the lien shall continue in effect and may be\nenforced by the Association for the amount of the unpaid dues, charges or assessments that\nwere dueprior to the final conclusion of any.such foreclosure or equivalent proceedings.\nFurther, any such unpaid assessment or charge shall continue to exist as the-personal\nobligation of the defaulting Owner to the Association, and the Board may use reasonable\nefforts to collect from the Ownereven after he is no longer a memberof the Association.\n18.3\nConsent ofMortgagees Required. Unless at least two-thirds ofthe Eligible\nHolders (based upon one vote for eachFirst Mortgage owned), including,in the case ofthe\npartition or subdivision of any.Lot, the holder of the First Mortgage for the Lot, and two-\nthirds of the Owners, or such higher percentage as required in this Declaration or by\napplicable law, have given their prior written approval, neither the Owners nor the\nAssociation shail be entitled to:\n.\n(a)\n|\nBy act or omission, seek to abandon or terminate this Declaration,\nexcept where\nprovided by lawin the case of substantial destruction byfire or other\ncasualty or in the case of taking by condemnation or. eminent domain.\n(b)\nChangethepro rata Fractional Interest or obligation ofany individual\nLot for the purpose of levying assessments or chargesor allocating distributions of\n{iabor Laney. CORs 12dansae  \n \n \nBedubor | doa. ARs £20dos\nhazard insurance proceeds or condemnation awards (except as provided in Section\n- 11.9, relating to Condemnation of a Lot).\n(c)\nPartition or subdivide any Lot.\n(d)\nBy act or omission, seek to abandon,partition, subdivide, encumber,\nsell or transfer the Common Areas. (The actions described in Section 3.3(e) and the\ngranting of easementsfor public utilities or for other public purposes consistent with\nthe intended use ofthe CommonAreasby the Project shall notbe deemed a transfer\nwithin the meaningofthis clause).\n(e)\nUse hazard insurance proceeds payable or paid to the Associationdue\nto losses to the CommonAreasor the Lots or portions thereof for other than the\nrepair, replacement or reconstruction of such areas, except as provided herein or by\nstatute in case of substantial loss to the Common Areas. First Mortgagees shall have\nthe right to participate in the adjustment and settlement of any claim under any\ninsurance maintained by the Association.\n18.4\nTax Liens. All taxes, assessments and charges which may become liens prior\nto a First Mortgage under local law shall relate only to the individual Lot and.not to the\nProject as a whole.\n:\n18.5\nPriority ofMortgage. No provision of the Constituent documents shall give\nan Owner, or any otherparty, priority over any rights of the First Mortgagee of a Lot pursuant\nto its First Mortgage in the case of a distribution to the Owner of insurance proceeds or\ncondemnation awardsfor losses to or a taking of Lots and/or Common Areas.\n18.6\nAmenities. Amenities (Gif any) pertaining to the Project (such. as parking,\nrecreation and service areas) are a part of the Project.\n18.7\nNotice of Default. Upon request, each First Mortgagee and Institutional\nGuarantor shall be entitled to written notification from the Association of any default in the\nperformance by its Mortgagor under the Constituent Documents,if thedefault is not cured\nwithin 30 days. All First Mortgagees and Institutional Guarantors shall be entitled to written\nnotification by the Association upon the commencement of any condemnation proceedings\nagainst all or any partof the Property or the Lot securing its Mortgage.\n18.8\nReview ofRecords. First Mortgagees and Institutional Guarantors shail have\nthe right upon reasonable written request to: (a) examine the books and records of the\nAssociation at reasonabletimes; (b) receive an annual fmancial statement ofthe Association\nwithin 90 days following the end of anyfiscal year of the Association; and (c)receive written\nnotice of all meetings of the Association and designate a representative to attend all such\nmeetings.  \n \nHiVArhor Land. - CCH 1-29502.do\n2ewe ae\net et eeee ot ee eee iE\nSete PL ant,\n18.9\nNo Personal Liability. A First Mortgagee shall not in any case or manner be\npersonally liable for the payment of any assessment or charge, nor the observance or\nperformance of any covenant, restriction, or rule and regulation of the Association, or any\nprovision of the Articles or Bylaws, or any management agreement, except for those matters\nwhich are enforceable by injunctive or other equitable actions, not requiring the paymentof\nmoney, except as specifically provided in this Section 18.\n18.10 Enforcement Against Successors. An Action to abate the breach of any of\nthese covenants, restrictions, reservations and conditions may be brought against a purchaser\nwho has acquired title through foreclosure of a First Mortgage and the subsequent\nforeclosure or trustee’s sales (or through any equivalent proceedings), and the successors in\ninterest to any such purchaser, even though the breach existed priorto the time the purchaser\nacquired an interest in the Lot.\n18.11\nExercise of Owner\'s Rights. During the pendency of any proceedings to\nforeclose a First Mortgage (including any period of redemption) or from the timea trustee\nundera first deed oftrust has given notice of sale pursuant to a powerof sale conferred under\na deed of trust and pursuantto law, the First Mortgagee, or a receiver appointed in any such\naction, may (but need not exercise) anyorall of the rights and privileges of the defaulting\nOwnerof the Lot including, but notlimited to, the right to vote as a memberof the\nAssociation in the place and stead of the defaulting Owner.\n18.12\nMortgagee Subject to Declaration. At such time as a First Mortgagee comes\ninto possession of or becomes record Ownerofa Lot, the First Mortgagee shall be subject\nto all of the terms and conditions of this Declaration including, but not limited to, the\nobligation to payall assessments and charges accruing thereafter, in the same manner as any\nother Owner(subject to the provisions of Section 3.3(c) hereof).\n18.13\nLien Subordinate to FirstMortgage. Thelien of the assessments provided for\nherein shall be subordinate to the lien of any First Mortgage now or hereafter placed upon\nany Lot; provided that the First Mortgageis in favor of a bank, savings and loan association,\ninsurance company, mortgage banker, other institutional lender, or Institutional Guarantor\nand their successors or assignsor is otherwise bonafide and given for value; and provided\nfurther that subordination shall apply only to the assessments which have accruedpriorto a\nsale or transfer of the Lot to which the First Mortgage relates pursuant to a decree of\nforeclosure or any other proceedingin lieu of foreclosure.\n18.14 No Impairment of Mortgage.\nNotwithstanding any provision\nin\nthe\nConstituent Documents to the contrary, no provision of this Declaration or the other\nConstituent Documents related to costs, use, set-back, minimum size, building materials,\narchitectural, aesthetic or similar matters shall ever provide for reversion or foreclosure of\ntitle to a Lot in the event ofviolation thereof. No breach or violation of any provision of the\nConstituent Documents shall affect, impair, defeat or render invalid the interest or lien ofany\nFirst Mortgagee.  \nTPA tlle ath el Seelenientlly lth my latini acheg Awe ffm beeyy tel Ce\nee\n \n \nwae Se eeeeehe.\n \nUitvArbor DangAL CORs bod 2he\nSNEMR Seat Ek te me akeee aTeteke thee\ncae ee ee\nae\neda PRT ee ee ekOR\n18.15 Amendment. Notwithstanding and prevailing overall other provisions hereof,\nno amendment to this Declaration shall be made or becomeeffective which is deemed\n‘material’ under the requirements of Institutional Guarantors without the prior written\nconsent oftwo-thirds of all First Mortgagees (based upon one vote for each First Mortgage\nowned). Upon written request, each First Mortgagee and Institutional Guarantor shall be\nentitled to timely written notice of any proposed action which requires the consent of.a\nspecified percentage of Mortgagees.\n18.16\nEnforcement. First Mortgagees shall have the right to enforce against Owners,\nthe Association and all others, any and all provisions of this Declaration including, but not\nlimited to, this Section\n18. Enforcement by First Mortgagees may be by injunction,\nmandatory or prohibitory, or any other lawful procedure. This Declaration shall be\ninterpreted to the extent reasonably possible in conformity with all rules, regulations and\nrequirements ofany Institutional Guarantor of a Mortgage on any Lotin effect as of this date,\nor as theymay be hereafter amended.\n18.17\nArticles and Bylaws. The Articles, Bylaws andall rules and regulations of the\nAssociation shall be governed by this Declaration and all provisions thereof which are\ninconsistent herewith shall be void.\n18.18\n£ligible Holders. Notwithstanding anything in this Declaration to the\ncontrary, any Mortgagee or Institutional Guarantor may submit a written request to the\nAssociation, which identifies the name and address of the Mortgagee or Institutional\nGuarantor and the particular Lot or Lots subject to its mghts as Mortgageeor Institutional\nGuarantor, to receive timely written notice ofall or any of the matters specified below. Any\nMortgagee or Institutional Guarantor which submits a request in the manner provided herein\nshall be considered an “Eligible Holder” for purposes of this Declaration. Those matters for\nwhich any MortgageeorInstitutional Guarantor may request notice:\n(a)\nAny condemnation or casualty loss that affects either a material\nportion of the Project or a material portion of the Lot subject to its nghts as\nMortgageeor Institutional Guarantor;\n(b)\nAnythirty- (30) day delinquency in the payment of assessments or\ncharges owed by the Owner of the Lot subject to\nits nghts as Mortgagee or\nInstitutional Guarantor;\n(c)\nA lapse, cancellation or material modification of any insurance policy\nor fidelity bond maintained by the Association; and\n(d)\nAny proposed action that requires the consent of a specified\npercentage of Eligible Holders. \n \n \n18.19\nVA/FHA Approval. For so long as there is a Class B Membership outstanding,\nthe followingactions shall require the prior approval of the Federal Housing Administration\nor Veterans Administration if either is then an interested Institutional Guarantor:\n(a)\nAnnexation of additional properties to the Project;\n(b)\n Mortgaging or otherwise encumbering the Common Areas;\n(c)\nDedication of the Common Areas;\n(d)\nAmendmentof this Declaration; or\n(e)\nDissolution or liquidation of the Association.\n19.\nExemption of Designated\nBuilder from\nRestrictions,\nGrant_of Easement.\nNotwithstanding anything contained in this Declaration to the contrary (except that, in the event of\na conflict with the provisions of Section 18 hereof, those provisions shall be controlling) and except\nas provided in Section 14 hereof, none oftherestrictions contained in this Declaration shall be\nconstrued or deemed to limit or prohibit any act of Declarant or the Designated Builder, or any of\ntheir employees, agents and subcontractors, or parties designated by it in connection with the\nconstruction, completion, marketing, sale or leasing of the Lots, or repair of Lots as required inthis\nDeclaration or any contracts of sale with Owners. Declarant and Designated Builder are hereby\ngranted an easement to access any Common Areas for purposes of Construction or maintenance\nthereon or on any Lot.\n20.\nRemedies.\n20.1\nPower to Enforce. In the event of any default by any Personunder the\nprovisions of this Declaration, or the Articles, Bylaws or rules and regulations of the\nAssociation, the Association, or its successors or assigns, and the Board, or its agents, and\nan Ownerof a Lotshall have each andall of the rights and remedies which may be provided\nfor in this Declaration, the Articles, Bylaws or rules and regulations of the Association, and\nwhich maybe available at law or equity, and may assess such fines against the defaulting\nPerson as may be determined by the Board in the mannerprescribed in the Bylaws and may\nprosecute any action or other proceedings against the defaulting Person for enforcement or\nforeclosure ofits lien and appointmentofa receiver for a Lot, or for damages or injunction,\nwhether mandatory or prohibitory, or specific performance, or forjudgment for payment of\nmoney and collection thereof, and to sell the Lot as hereafter in this Section 20 provided, or\nfor any combination of remediesor for any otherrelief, all without notice and without regard\nto the value of the Lot or the solvency of the defaulting Person.\n20.2\nExpenses. The proceeds of any such rental or sale shall first be paid to\ndischarge court costs; other litigation costs including, but not limited to, reasonable\nattorneys’ fees, and all other expenses ofthe proceeding andsale, andall such items shall be\ntaxed against the defaulting:Owner, in.a‘final:judgment Any balance of proceed after\nNpArhor LaneAL. -CCHs [-294)2aho\n   \n \nwee eeee\n————1\n \n(tAArboe Pang.8Reb.202doe\nsatisfaction of such charges and any unpaid assessments hereunder or anyliens shall be paid\nto the Owner or the Mortgagees of the Lot, as their interests may appear. Upon the\nconfirmation of the sale, the purchasers shall be entitled to a deed to the Lot and to\nimmediate possession of the Lot and may apply to the court for a writ of restitution for the\npurpose of acquiring possession, and it shall be a condition of any such sale, and the\njudgmentshall so provide, that the purchaser shall take the interest in the property sold\nsubject to this Declaration.\n20.3.\nLien Rights. All expenses of the Association in connection with any action\nor proceeding described or permitted by this Section 20, including court costs and reasonable\nattorneys’ fees and other fees and expenses, and all damages, liquidated or otherwise,\ntogether with interest thereon at the annual rate of eighteen percent (18%) (or such lesser\nrate) as the Board mayselect from timeto time but in no event in excess of the maximum\nlawful rate or the maximum rate allowed under applicable requirements of Institutional\nGuarantors), until paid, shall be charged to and assessed against such defaulting Owner and\nshall be added to and deemedpart ofhis respective share of the Common Expenses, and the\nAssociation shall have a lien as provided in Section 7 hereoffor all such sums, as well as for |\nnonpayment of his respective share of the Common Expenses, upon the Lot of the defaulting\nOwnerand uponall of his additions and improvementsthereto.\n20.4\nSelfHelp. In the event of a default by any Person, the Association and the\nBoard, and the manager or managing agent, if authorized by the Board, shall have the\nauthority to correct the default and to do whatever may be necessary, and all expenses in\nconnection therewith shall be charged to and assessed against the defaulting Person,if the\ndefault is not cured within thirty (30) days after written notice of the default is given to the\ndefaulting Person and the defaulting Person is given an opportunity to be heard by the Board\n~\n(if written request therefor is made by such Person within such thirty-(30) “day period);-\nprovided, however, that the foregoing notice and cure period andopportunity to be heard\nshall not apply if, in the sole opinion of the Board, there exists an emergency which threatens\n‘health, safety or property, or in the event of repeated violations of these restrictions or the\nrules and regulations of the Association. Such an assessmentshall constitute a lien against\na defaulting Owner’s Lot as provided for in Section 7 of this Declaration. Any andall such\nrights and remedies may be exercised at any time and from time to time, cumulatively or\notherwise, by the Association or the Board.\n20.5\nWarning Notice. Ifany Person (either by his conductor by the conduct of any\nOccupant of his Lot, or the Owner’s family, guests, invitees or tenants to the extent the\nOwner may be held legally responsible therefor) violates any of the provisions of this\nDeclaration, or the Articles, Bylawsor rules and regulations of the Association, as then in\neffect, and the violation continuesfor 10 days after notice in writing to the defaulting Person\nor occurs repeatedly during any 10 day period after written notice, then the Board or any\naffected or aggrieved Ownershall have the powerto file an action against the defaulting\nPerson for a judgment or injunction, whether mandatory or prohibitory, requiring the\ndefaulting Person to comply with the provisions of this Declaration, or the Articles, Bylaws\n \nor rules and regulations of the Association, and granting other appropriate relief, including\nmoney damages.\n20.6\nMortgage Priority. Anything to the contrary herein notwithstanding, any\nbreach ofany ofthe covenants,restrictions, reservations, conditions and servitudes provided\nfor in the Declaration, or any right ofreentry by reason thereof, shall not defeat or adversely\naffect the lien ofany Mortgage upon any Lot but, except as herein specifically provided, each\nand all ofthe covenants,restrictions, reservations, conditions and servitudes shall be binding\nupon and effective against any lessee or Owner of a Lot whosetitle thereto is acquired by\nforeclosure, trustee’s sale, sale, deed in lieu of foreclosure or otherwise. To the extent that\nsummary abatement or endorsementrights are herein reserved to a Designated Builder, the\nAssociation or any other Person, judicial proceedings for endorsement must be instituted\nbefore any items of construction can be.altered or demolished.\n21.\nAmendment. Amendments to this Declaration shall be made by an instrument in\nwriting entitled “Amendment to Declaration” whichsets forth the entire amendment. So long as there\n1s Outstanding any Class B membership im the Association, any amendmentother than one authorized\nby Section 21.4 must be approved byall Institutional Guarantors.\n21.1\nAdoption. Amendments may be adopted with or without a duly held meeting\n(iVrboe Lance CCRa 1-29-02.doe\nof the Owners upon the approval of two-thirds of the Owners then entitled to vote for\nmembersof the Board. In the event that no meeting of Ownersis held, the requisite number\nof Owners must consent in writing to the Amendment. Amendments properly adoptedshall\nbear the signature of the president ofthe Association and shall be attested by the secretary,\nand shall be acknowledged by them as officers of the Association. Properly adopted\namendmentsshall be effective upon recording in the appropriate governmentalofficesor at\nsuch later date as may be specified in the amendment. Notwithstanding the foregoing, any\namendment of this Declaration which is deemed to be “material” under the requirements of\nInstitutional Guarantors, including, but not limited to, any amendment which would change\nthe Fractional Interest of any Owner, may be adopted only with the affirmative note of\nconsent of two-thirds of the Owners and two-thirds ofall First Mortgages (based on one\nvote for each Mortgage owned).\n21.2\nEffect. It is specifically covenanted and agreed that any Amendmenttothis\nDeclaration properly adopted will be completely effective to amend any and all of the\ncovenants, conditions andrestrictions contained herein which may be affected and anyorall\nclauses of this Declaration, unless otherwise specifically provided in the section being\namended or the amendmentitself.\n21.3\nRequired Percentages. If this Declaration, the Articles or Bylaws requires the\nconsent or agreement of all Owners and/orall lienholders andall trusteesand/or beneficiaries\nunder trust deeds, or any specified percentage of them, for any action specified in this\nDeclaration, then any instrument changing, modifying or rescinding any provision ofthis.\nDeclaration with respect to such an action shall be signed by nolesser percentage of the\nOwners and/or lienholdersandtrustees and/orbeneficiaries under trust deeds.\n \n \n \neT NT tyeegt lay\nayers ee ele\ntee\nnot\nshale\n.\nte era UT te\nwe a\ngp\neat te Nomi.\nos\nPetr\ngd\nce\noptateheeteled, BieTsAlege\ntT\neee NT\npee le ta oT.\nPg EL Sa\nell Ln teeaD a aT Sastre\n21.4 Designated Builder Powers. Notwithstanding any provision of this Section\n21, for so long as any Class B membership in the Association is outstanding, the Designated\nBuilder is hereby reserved the right, and shall be authorized and empowered,actingjointly,\nto amend this Declaration as necessary to comply with, or conform this Declaration to, the\nrequirements or guidelines of an Institutional Guarantor and governmental authorities\n(including, but not limited to, requirements to qualify the Property and offer it for sale);\nprovided, however, that the Designated Builder shall obtain the approval of any interested\nInstitutional Guarantor or governmental authority to such an amendment. Upon the adoption\nand recording of any such amendment by the Designated Builder, a copy of the amendment\nshall be made available for the inspection of every Ownerand Eligible Holder.\n21.5\nInstitutional Guarantors. Anything to the contrary herein notwithstanding,\nno amendment shall be effective to materially modify, change, limit or alter the rights\nexpressly conferred upon Mortgagees in this Declaration, or which is in any way materially\ninconsistent with the rules, regulations or requirements of any interested Institutional\nGuarantor, unless the Amendmentis approved in writing bythe Institutional Guarantor.\n21.6\nApproval by City. Anything to the contrary herein notwithstanding, no\namendment shall be effective to modify, change, limit or alter the obligations of the\nAssociation under Sections [3.2 and [3.3 or the provisions of Section 13.4 hereof or the\nprovisions of this Section 21.6, unless such amendmentis approved in writing by the City\nAttorneyfor the City of Chandler.\n22.\nNotices. Notices provided for in the Declaration, or the Bylaws or rules and\nregulations of the Association, shall be in writing and shall be addressed to the Association or the\nBoard,as the case maybe, at an address to be established by the Board. The Association or the Board\nmayat any time designate a different address or addresses for notices to them respectively by giving\nwritten notice of the change of address to all Owners. All notices to Owners shall be to their\nrespective Lots. Any Owner may designate a different address or addresses for notices to him by\ngiving written notice of his change of address to the Board. Notices addressed as aboveshall be\ndeemed delivered when mailed by United States mail, first class with postage prepaid, or when\ndelivered in person. Upon written request to the Board, a Mortgagee of a Lot shall be given a copy\nof all notices permitted or required by this Declaration to be given to the Ownerof the Lot subject\nto the Mortgage.\n23.\nCaptions and Exhibits: Construction. Captions given to various sections herein are\nfor convenience only and are not intended to modify or affect the meaning of any of the substantive\nprovisions hereof. Any exhibits referred to herein are incorporated as though fully set forth where\nthe reference is made. The provisions of this Declaration shall be liberally construed to effectuate\nits purpose of creating a uniform plan for the ownership and operation of the Property under the\nprovisions of Arizona law.\n24.\nSeverability. If any provisionofthis Declaration, the Articles, Bylawsor rules and\nregulations of the Association, or.2 sysection,c\nIst,‘sentence,\n©, phrase0or word,or the application\nTEVrbor Panel»UH 1-29-)2sha\n \n     \n \nthereof in any circumstance, is held invalid, the validity of the remainder of this Declaration, the\nArticles, Bylawsorthe rules and regulations, and of the application of any such provision, section,\nsentence, clause, phrase or word in any other circumstances, shall not be affected, and the remainder\nshall be construedas if the invalid part were never included therein.\n25.\nPower ofAttorney. Whenever the Association or the Board is granted rights, privilege\nor duties in this Declaration, the Board shall have the authority to act for the Association in\naccordance with the Articles and Bylaws. Further, unless otherwise specifically restricted by the\nprovisions of this Declaration, wherever the Association or the Board is empowered to take any\naction or do anyact including, but not limited to, action or acts in connection with the Common\nAreas, the Owners and each of them hereby constitute and appoint the Association, acting through\nits Board, as their attorney-in-fact for the purposes oftaking such action or doing such acts including,\nbut not limited to, executing, acknowledging and delivering any instruments or documents\nappropriate or helpful for such purposes. It is acknowledged that this power of attorney is irrevocable\nand coupled with an interest and by the acceptance of a deed for a Lot or by signing a contract for\npurchaseof a Lot ofby succeeding in any other manner to the ownership ofa Lot, each Ownershall\nbe deemed and construed to haveratified and expressly granted the above powerofattorney.\n26.\nRight to Cure Alleged Defects.\nIt is the intent of Declarant and each Designated\nBuilderthat all Improvements constructed as part of the Project, whether on a Lot, as part orall of\na Residence or as Common Areas, shall be built in compliance with all applicable building codes\nand ordinances and that they be of a quality that is consistent with good construction and\ndevelopment practices. Nevertheless, disputes may arise as to whether a defect exists with respect\nto the Improvements constructed as part ofthe Project and the responsibility ofDeclarant and/or a\nDesignated Builder therefor. It is the intent ofDeclarant and each Designated Builder to resolveall\ndisputes and claims regarding “Alleged Defects” (as defined below) amicably, and without the\nnecessity of time-consuming and costlylitigation. Accordingly, the Association, the Board andall\nOwnersshall be boundbythe following claim resolution procedure:\n(1)\nRight to Cure. In the event that the Association, the Board, or any Owneror\nOwners (collectively or singly, “Claimant’’) claim, content, or allege that any\nportion of the Common Area and/or any Improvements constructed on the\nProperty are defective, or that Declarant, Designated Builder, their agents,\nconsultants, contractors or subcontractors (collecitvely, “Agents”) were\nnegligent in the planning, design, engineering, grading, construction or other\ndevelopment thereof (collectively, an “Alleged Defect’’), Declarant and the\napplicable Designated Builder hereby reserve the right for itself to inspect,\nrepair and/or replace such Alleged Defect as set forth herein.\n(ii)\nNotice. In the event that a Claimant discovers any Alleged Defect, Claimant\nshall notify Declarant and the applicable Designated Builder, in writing,\nwithin fifteen (15) days of discovery of the Alleged Defect, of the specific\nnature of such Alleged Defect (“Notice ofAlleged Defect’).\n[iMAtbor Lanc\\AL. -CCRs 1-2902de  \n(iii)\nRight to Enter, Inspect, Repair and/or Replace. Within a reasonable timeafter\nthe receipt by Declarant and Designated Builder of a Notice of Alleged\nDefect, or the independent discovery of any Alleged Defect by Declarant and\nDesignated Builder, Declarant and Designated Builder shall have the nght,\nupon reasonable notice to Claimant and during normal business hours, to\nenter onto or into, as applicable, the Common Area, a Residence, or a Lot,\nand/or any Improvements situated thereon for the purposes of inspecting\nand/or conducting testing and, if deemed necessary by Declarant or\nDesignated Builder, repairing and/or replacing such Alleged Defect.\nIn\nconducting such inspection, testing, repairs and/or replacement, Declarant\nand Designated Builder shall be entitled to take any actionsas it shall deem\nreasonable and necessary underthe circumstances.\n(iv)\nNo Additional Obligations: Irrevocabilityand Waiver of Right. Nothing set\nforth in this Section shall be construed to impose any obligation on Declarant\nor Designated Builder to inspect, test, repair, or replace any item or Alleged\nDefect for which Declarant and/or Designated Builder is not otherwise\nobligated under applicable law. The right of Declarant and/or Designated\nBuilder to enter, inspect, test, repair and/or replace reserved hereby shall be\nirrevocable and may not be waived or otherwise terminated except by a\nwriting, in recordable form, executed and recorded by Declarant and\nDesignated Builder.\n(v)\nTolling of Statutes ofLimitations. In no event shall any statutes oflimitations\nbe tolled during the period in which Declarant and/or Designated Builder\nconducts any inspection or testing of any Alleged Defects.\n27.\nLegal Actions.\nAll legal actions initiated by a Claimant shall be brought in\naccordance with and subject to Sections 28 (Binding Arbitration) and 29 (Approval of Litigation)\nof this Declaration. In the event a Claimantinitiates any legal action, cause of action, proceeding,\nreference or arbitration against Declarant or Designated Builder alleging damages(i) for the costs\nof repairing or the replacement ofany defective portion of the Project, a Lot, a Residence, or any\nCommonArea, and/or Improvements constructed thereon, (11) for the dimunition in value ofany real\nor personal property resulting from any such Alleged Defect, or(111) for any consequential damages\nresulting from such Alleged Defect, any judgment or award in connection therewith shall first be\nused to correct and/or repair such Alleged Defect or to reimburse the Claimantfor any costs actually\nincurred by such Claimant in correcting and/or repairing the Alleged Defect.\nIn the event the\nClaimant is the Association, the Association must provide written notice to all Memberspriorto\ninitiation of any legal action, cause ofaction, proceeding, referenceorarbitration against Declarant\nor Designated Builder, which notice shall (at a minimum) include (1) a description of the Alleged\nDefect, (ii) a description ofthe attempts of Declarant or Designated Builderto correct such Alleged\nDefect and the opportunities provided to Declarant or Designated Builder to correct such Alleged\nDefect, (iii) a certification from an engineer licensed in the State ofArizona that such Alleged Defect\nexists along with a description of the scope of work necessary to cure such Alleged Defect and a\nresume of such engineer,(iv) theéstisiated-cost\nto\'Fepairsuch Alleged Defect, (v) the name and\n{Arbor Lane. +COR J-294)2.doy\n2\nwo\n. ‘4    \n   \n \n \n \nprofessional backgroundofthe attorney retained by the Association to pursue the claim against\nDeclarant or Designated Builder and a description of the relationship between such attorney and\nmember(s) ofthe Board (ifany), (vi) a description of the fee arrangement between such Attorney and\nthe Association,(vii) the estimated attorneys’ fees and expert fees and costs necessary to pursue the\nclaim against Declarant or Designated Builder and the source ofthe funds which will be used to pay\nsuch fees and expenses,(viii) the estimated time necessary to concludethe action against Declarant\nor Designated Builderand (ix) an affirmative statement form the Board that the action is in the best\ninterests of the Association and its Members. In the event the Association recovers any funds from\nDeclarant or Designated Builder(or any other Person) to repair an Alleged Defect, any excess funds\nremaining after repair of such Alleged Defect shall be paid into the Association’s reserve fund.\n28.\nBinding Arbitration.\nIn the event of a dispute between or among Declarant, its.\nbuilders, contractors or brokers, or their agents or employees, on the one hand, an any Owner(s) or\nthe Association, on the other hand, regarding any controversy or claim betweenthe parties, including\nany claim based on contract, tort, or statute, arising out ofor relating to the rights or duties of the\nparties under this Declaration, the design or construction of the Property, or an Alleged Defect, the\nmatter shall be resolved by binding arbitration conducted in accordance with the followingrules:\n(i)\nInitiation of Arbitration. The arbitration shall be initiated by: any party\ndelivering to the other a Notice of Intention to Arbitrate as providedfor in the\nAmerican Arbitration Association (“AAA”) Commercial Arbitration Rules,\nas amended from timeto time (the “AAA Rules’).\n(ii)\nGoverning Procedures. Thearbitration shall be conducted in accordance with\nthe AAA Rules and A.R.S. § 12-1501 et_seq.\nIn the event of a conflict\nbetween the AAA Rules and this Section, the provisions of this Section 28\nshall govern.\n \n(11)\nAppointment ofArbitrator. The parties shall appoint a single Arbitrator by\nmutual agreement. If the parties have not agreed within ten (10) days of the\ndate of the Notice of Intention to Arbitrate on the selection of an arbitrator\nwilling to serve, the AAA shall appoint a qualified Arbitrator to serve. Any\narbitrator chosen in accordance with this Subsection (iii) is referred to in this\nSection as the “Arbitrator”.\n(iv)\nQualifications of Arbitrator. The Arbitrator shall be neutral and impartial.\nThe Arbitrator shall be fully active in such Arbitrator’s occupation or\nprofession, knowledgeable as to the subject matter involved in the dispute,\nand experiencedin arbitration proceedings. The foregoing shall not preclude\notherwise qualified retired lawyers or judges.\n(v)\nDisclosure. Any candidate for the role ofArbitrator shall promptly disclose\n©\nto the parties all actual or perceived conflicts ofinterest involving the dispute\nor the parties. NoArbitrator may serve if such person has a conflict of\ninterest involvingthe-subjéct\'matter of the dispute or the parties.\nIf an\n  \n  \nArbor Faneuil, ©CORs [-29-ftdae\n \n \ndisArhor | aml, «CRs 1-202dog\n(vi)\n(vii)\n(viii)\n(ix)\n(x)\nArbitrator resigns or becomes unwillingto continue to serve as an Arbitrator,\na replacementshall be selected in accordance with the procedure set forth in\nsubsection (111) above.\nCompensation. The Arbitrator shall be fully compensated for all time spent\nin connection with the arbitration proceedings in accordance with the\nArbitrator’s hourly rate not to exceed Three Hundred Dollars ($300.00) per\nhour, unless otherwise agreed to by the parties, for all time spent by the\nArbitrator in connection with the arbitration proceeding. Pending thefinal\naward, the Arbitrator’s compensation and expenses shall be advanced equally\nby the parties.\nPreliminary Hearing. Within thirty (30) days after the Arbitrator has been\nappointed, a preliminary hearing among the Arbitrator and counselfor the\nparties shall be held for the purpose of developinga plan for the management\nof the arbitration, which shall then be memorialized in an appropriate order.\nThe matters which may be addressed include, in addition to those set forth\nin the AAA Guidelines, the following: (i) definition of issues; (ii) scope,\ntiming and types of discovery,if any; (iii) schedule and place(s) ofhearings;\n(iv) setting of other timetables; (v) submission of motions and briefs; (vi)\nwhether and to what extent expert testimony will be required, whether the\nArbitrator should engage one or more neutral experts, and whether,if this is\ndone, engagement of experts by the Parties can be obviated or minimized,\n(vii) whether and to what extent the direct testimony of witnesses will be\nreceived by affidavit or written witness statement; and (viii) any other matters\nwhich may promotetheefficient, expeditious, and cost-effective conduct of\nthe proceeding.\nManagementof the Arbitration. The Arbitrator shall actively manage the\nproceedings as the Arbitrator deems best so as to make the proceedings\nexpeditious, economical and less burdensomethanlitigation.\n.\nConfidentiality.\nAll papers, documents, briefs, written communication,\ntestimony andtranscripts as well as any and all arbitration decisionsshall be\nconfidential and not disclosed to anyone other than the Arbitrator, the parties\nor the parties’ attorneys and expert witnesses (where applicable to their\ntestimony), except that upon prior written consent of all parties, such\ninformation may be divulgedto additional third parties. All third partes shall\nagree in writing to keep such information confidential.\nHearings.\nHearings may beheld at any place within the State of Arizona\ndesignated by the Arbitrator and, in the case of particular witnesses not\nsubject to subpoenaat the usual hearing site, at a place where such witnesses\ncan be compelled to attend. \n \n \n(xi)\nFinal Award. The Arbitrator shall promptly (within sixty (60) days of the\nconclusion of the proceedings or such longer period as the parties mutually\nagree) determine the claims ofthe parties and render a final award in writing.\nThe Arbitrator may award the prevailing party in the proceeding all or a part\nofsuch party’s reasonable attorneys’ fees and expert witness fees, taking into\naccount the final result of arbitration, the conduct of the parties and their\ncounsel in the course of the arbitration, and other relevant factors.\nThe\nArbitrator shall not award any punitive damages. The Arbitrator shall not\naward indirect, consequential or special damages regardless of whether the\npossibility of such damageor loss was disclosed to, or reasonably foreseen\nby the party against whom the claim is made; provided, however, that such\ndamages may be deemed by the Arbitrator to be direct damages in an award\nreimbursing payments made by a party therefor to a third party.\nThe\nArbitrator shall assess the costs of the proceedings (including, without\nlimitation, the fees of the Arbitrator) against thenon-prevailing party.\n(xii)\nStatute ofLimitations. All statutes of limitation applicable to claims which\nare subject to binding arbitration pursuantto this Section 28 shall apply to the\ncommencementof arbitration proceedings underthis Section. If arbitration\nproceedings are not initiated within the applicable period, the claim shall\nforever be barred.\n|\n29.\nApproval ofLitigation. The Association shall not incur attorney fees or other legal expenses\nin connection with legal proceedings or arbitration proceedingsinitiated by the Association or in\nconnection with legal proceedings orarbitration proceedings in which the Associationis joined as\na plaintiff without the written approval of a Majority ofMembers, excluding the vote of any Owner\nwho would be a defendantin such proceedings. The Association mustfinance any legal proceeding\nwith monies that are specifically collected for same and may not borrow moneyoruse reserve funds\nor other monies collected for specific Association obligations other than legal fees. In the event that\nthe Association commences any legal proceedings, all Owners must notify prospective purchasers :\nof such legal proceedings and must provide such prospective purchasers with a copy of the notice\nreceived from the Association in accordance with Section 26. This Section 29 shall not apply to\nlegal proceedings initiated by the Association to collect any unpaid Assessments or other sums levied\npursuant to this Declaration. Prior to any vote of the Members, the Association will provide full\ndisclosure ofthe nature of.the claim, the name and professional backgroundof the attorney proposed\nto be retained by the Association to pursue the matter, a description of the relationship (if any)\nbetween the attorney and the Board of Directors (or any memberof the Board of Directors) or the\nproperty management company, a description ofthe fee arrangement with the attorney, an estimate\nof the fees and costs necessary to pursue the claim, and the estimated time necessary to complete the\nproceedings andthe nature ofthe disclosure regarding the legal proceedings that will be made public\nand/or which must be disclosed to prospective purchasers.\n30.\nRepurchase, Option for Alleged Defect Claims. Notwithstanding anythingin this Declaration\nto the contrary, in the event any Owner, either directlyor through the Association, shall commence\nan action against Declarant or Desigtiatéd Sisider-and/or‘any contractor in connection with any\n      \n \nDiAAhor Lane. - COHs 1-202doc\n \n \nwe atte ee\nAlleged Defects in such Owner’s Lot, Declarant or Designated Builder (or any assignee ofDeclarant\nor Designated Builder) shall have the option (but not the obligation) to purchase such Lot on the\nfollowing terms and conditions:\n(A)\nThe Purchase price shall be an amount equal to the sum ofthe following, less any\nsums paid to such Owner under any homeowner’s warranty in connection with the Alleged Defect:\n(1)\n(i)\nThe purchase price paid by the Owner of the Lot whenoriginally\npurchased from Declarant or Designated Builder or from a prior Ownerin a\nbona-fide, arm’s length, non-related party transaction;\n(ii)\nThe value of any Improvements madeto the Lot after purchase by Owner by\nanyone other than Declarant or Designated Builder,\n(iii)\n|The Owner’s reasonable moving costs; and\n(iv)\nAny closing costs, including loan fees and/or “points” incurred by the Owner\nin connection with the purchase of another primary residence within ninety\n(90) days after the closing of the repurchase provided for herein.\n(B)\nClose of escrow shall not occurlater than forty-five (45) days after written notice\nfrom Declarant or Designated Builder to the Owner of Declarant’s or Designated Builder’s intent\nto exercise the option herein.\n(C)\nTitle shall be conveyed to Declarant free and clear of all monetary liens and\nencumbrances other than non-delinquentreal estate taxes.\n(D)\nAll closing costs in connection with the repurchase shall be paid by Declarant or\nDesignated Builder.\n(E)\nExercise of the repurchase option as provided hereinabove shall constitute full and\nfinal satisfaction ofall claims, relating to the subject Lot, including claimsrelating to the Alleged\nDefect. The Owner(or Association, as applicable) shall promptly execute and deliver any notice of\ndismissal or other document necessary or appropriate to evidence suchsatisfaction.\n31.\nFailure to Enforce. Failure ofthe Association or any Ownerto enforce any covenant\nand reservation in this Declaration will not be deemed a waiver ofthe right of the Association or any\nOwner to enforce the covenants and restrictions in the future for the same or similar violation.\nFailure of the Association or any Owner to enforce any covenantorrestriction in this Declaration\nwill not subject the Association or any Ownerto liability for its actions or inactions. No act or\nomission by the Declarant (nor any Designated Builder), whetherin its capacity as a Memberofthe\nAssociation or as a seller or builder of any Lot or residence thereon, will act as a waiver, offset, or\ndefense to the enforcement of this Declaration by the Association or any Owner.\nWAArhor Lanta- CCHS [929-07aby  \n \n \npee 2a. eek alae DidSE LRReSe\n32.\nLimitation on Recovery Against the Association. Each Owner ofa Lot, by accepting\na deed for that Lot (whether or not expressed in the deed or conveying instrument) or otherwise\nbecoming an Owner,specifically acknowledges that any award ofmonetary damages made in favor\nof the Owner against the Association for the Association’s failure to comply with, or accurately\ncomply with, the provisions ofA.R.S. §33-1806 will be satisfied from and limited solely to: (i) the\nproceeds available under any policy of insurance maintained by the Association for errors or\nomissions of this type; or (ii) the amount available in any liability reserve account that may be\nestablished by the Association and funded through specific liability reserves collected as part of the\nannual assessments.\n33.\n Declarant’s Right to Use Similar Name. The Association irrevocably consents to the\nuse by any other profit or nonprofit corporation that may be formed or incorporated by Declarant of\na corporate namethat is the same or deceptively similar to the name ofthe Association, provided one\nor more wordsare added to the nameofthe other corporation to make the nameofthe Association\ndistinguishable from the nameof the other corporation. Within five days after being requested to\ndo so by; the Declarant, the Association will sign all letters, documents, or other writings as may be\nrequired by the Arizona Corporation Commission (or any other governmental entity) in order for any\nother corporation formed or incorporated by the Declarant to use a corporate namethat is the same\nor deceptively similar to the name of the Association.\n[SIGNATURES APPEAR ON THE FOLLOWING PAGE]\nitlArhor Cantal- CCH: £2902dg  \n \n \nIN WITNESS WHEREOF, Declarant has caused this Declaration to be duly executed on the day\nand yearfirst written above.\nMDM102 L.L.C., an Arizona limited liability company,\nDeclarant\nBy:\nMAGEE DEVELOPMENT,INC., an Arizona\ncorporation, Administrative Member\no\nZz Lie\n<b.\nIts:\n\\\n‘\n“\nRATIFICATION AND APPROVAL:\nThe Association herebyratifies and approves\nthis Declaration\nARBOR LANE HOMEOWNERSASSOCIATION,INC.,\na nonprofit Arizona Corporation\n» Lee bie.\nIts:\nFeeseoee7~\n \nivArbor Lane- CRs P202d  \n \nSTATE OF ARIZONA\n)\n \n) ss.\nCounty of Maricopa\n)\n:\niz\nThe foregoing instrument was acknowledged before methis SS day of Hep , 2002,\nby\nBrian G& Magee\n,the fresidth“e\nofMAGEE\n \nDEVELOPMENT,INC., atrArizona corporation, the Administrative Member of MDM102.L.L.C.,\nan Arizona limited liability company, on behalf of the company.\n \n \n   \n  \n \n  \n \n \nfal\nAL\nia, ELiZASeTn\n=. SA SNDERS\n|\nNITARM FUdL\nLl -SAITNA\nWAR.Gora COUNTY\n=\nMy comm. Expires Jan.\n23, 2004\ni\nMy Commission Expires:\nlo 2/04\nfa)\n \n  \n  \n  \n     \nSTATE OF ARIZONA\n)\ndss.\nCounty of Maricopa:\n)\n/oe\nThe foregoing instrument was acknowledged before methis\n‘\nday of\n> 2002,\nby\nPamela C.\nCrudele.\n, the Fresident-\nofArbor Lane\n \n \nHomeowners Association, Inc., a nonprofit Arizona corporation, on behalf of the Corporation.\n{EkLater\nD>\nOFF:CLAL SEAL\n*\nae\nELIZABETF =. SAUNDERS|\nB|\nNOTARY ©J5_.0-ARZONA\n \n \nMy Commission Expires:\nlaz/o4\n \n   \n \n \n \nEXHIBIT\nLegal Description of Subdivision\nLots | through 58, inclusive and Tracts A through L,inclusiveas set\nforth in the Final Plat for Arborlane in Book 57S of Maps, page\n3/, of the Official Records of Maricopa County, Arizona\nHARBOR LANE\\AL - CCRS 1-29-02.D0C  \n \n \n \nHAARBOR LANE\\AL - CCRS t-29-02,D0C\nI.\nEXHIBIT\nB\nDESIGNATED BUILDERS\nMDM102 L.L.C.\nMagee Construction,Inc.\n \n \n'}