Declaration of Covenants, Conditions & Restrictions (Continued)

Page 4

ARTICLE IX

PROHIBITION AGAINST SEVERABILITY
OF COMPONENT INTEREST IN CONDOMINIUM

     No Owner shall be entitled to sever his Unit from his undivided interest in the Common Area nor shall the respective undivided interests established and to be conveyed with each respective Unit be changed. The undivided interests in the Common Area established hereby and the fee title to the respective Units conveyed therewith shall not be separated, severed or separately conveyed, encumbered or otherwise transferred, and each such undivided interest in the Common Area shall conclusively be deemed to the conveyed, transferred or encumbered with its respective Unit even though the description in the instrument of conveyance or encumbrance may refer only to the Unit. It is intended hereby to restrict severability of the various components of a Condominium in the manner provided by Section 1355(g) of the Civil Code of California. Nothing herein contained shall be construed to preclude an Owner of any Condominium from creating a co-tenancy in the ownership of a Condominium from creating a co-tenancy in the ownership of a Condominium with any other person or persons.

 

ARTICLE X

DUTIES AND POWERS OF ASSOCIATION

     Section 1. Administration of the Property. The Owners and each of them, together with all parties bound by this Declaration covenant and agree that the administration of the Property shall be in accordance with the provisions of this Declaration, the Articles, the By-Laws and such rules and regulations as may be adopted by the Board, and amendments, changes and modifications thereto as by the Board, and amendments, changes and modifications thereto as may come into effect from time to time. In the event of any inconsistency between the provisions of this Declaration and the provisions of the Articles, the By-Laws and such rules and regulations as may be adopted by the Board, and amendments, changes and modifications thereto as may come into effect from time to time. In the event of any inconsistency between the provisions of this Declaration and the provisions of the Articles, the By-Laws or said rules and regulations, the provisions of this Declaration shall prevail.

Section 2. Organization Meeting. The members of the Association shall hold an organization meeting of the Association (the "organization meeting") within six (6) months following the recordation of a deed evidencing the initial sale and conveyance by the Declarant of a Condominium within the Project. Declarant shall call the organization meeting and give notice of the time thereof in the manner set forth in the By-Laws. Thereafter annual and special meetings of the members of the Association shall be held as provided for by the By-Laws.

     Section 3. Authority of Board. Prior to the organization meeting, and thereafter until their successors are elected, the initial Board named in the Articles, or their duly appointed successors, shall manage the affairs of the Association. The Board of Directors as constituted for the day to day operation and management of the affairs of the Association and shall have the sole power and duty to perform and carry out the powers and duties of the Association as set forth in this Declaration and the By-Laws, together with the powers and duties otherwise expressly delegated to the Board by this Declaration or the By-Laws, the Articles or the California Corporations Code as requiring the vote or assent of the members of the Association or a given percentage thereof. Without limiting the generality of the foregoing, the Board shall have the following powers and duties:

a)  The Board shall acquire and pay for out of the assessments levied and collected in accordance herewith, water, telephone, gas, electric powers, gardening service, refuse collection and other necessary utility services for the Common Area (and to the extent not separately metered or charged, for the Units).

b)  The Board shall maintain, or cause the Common Area and the Recreation Area, and the landscaping improvements, facilities, and structures thereof to be maintained and kept in a good state of repair, and acquire for the Association and pay for out of such assessments such services, furnishings, equipment, maintenance, painting and repair it may determine are necessary in order to keep and at all times maintain the Common Area and the Recreation Area and the facilities, landscaping, improvements and structures thereon in a good and sanitary state of condition and repair.

c)  Except as to taxes, bonds, levies and assessments levied separately against an individual Condominium and/or the Owner or Owners thereof, the Board shall pay all taxes, real and personal, and assessments, bonds and levies which are or would become a lien on the Project, the Common Area or the Recreation Area.

d)  The Board shall employ a professional Manager and may employ such other employees as it deems necessary to prescribe their duties, and enter into contract and agreements all for the purpose of providing for the performance of the business, powers, duties and/or obligations of the Board or any portion thereof. Prior to the organization meeting the initial Board, on behalf of the Association, may employ a professional Manager and may employ such other employees as it deems necessary. Such Manager, if any, and all employees shall have the right of ingress and egress over and access to, such portions of the project as may be necessary in order for them to perform their obligations. Notwithstanding anything contained in this Declaration or the By-Laws to the contrary, the Board, Association, and Declarant are precluded from entering into any contract or agreement which would bind the Association for a period in excess of one (1) year except with the approval of a majority of the members of the Association.

e)  The Board, at any time, and from time to time may establish, by a majority vote of the Board, and without the consent of the members of the Association, such uniform rules and regulations as the Board may deem reasonable in connection with the use, occupancy and maintenance of the Units, the Common Area and the Recreation Area by Owners and their family members, servants, tenants, guests and invitees, and the conduct of such persons with respect to vehicles, parking, bicycle use, use of recreational facilities, control of pets, number of guests and other activities which if not so regulated might detract from the appearance of the Project or offend or be offensive to or cause inconvenience, noise or danger to persons residing in or visiting the Project. Such rules and regulations shall be posted in a conspicuous place in the Common Area and the Recreation Area and the Board shall send a copy of such rules and regulations, together with amendments and additions thereto to each Owner upon receiving written notice of his status as an Owner.

f)  The Board, or its authorized agents may enter any Unit when necessary in connection with any maintenance, landscaping, repair or construction for which the Board is responsible or for any other purpose reasonably related to the performance by the Board of its powers or responsibilities. Such entry shall be made with as little inconvenience to the owners as practicable and shall be preceded by reasonable notice wherever the circumstances permit, and any damage caused thereby shall be repaired by the Board out of the common assessments.

g)  The Board shall levy assessments against the Owners and enforce payment thereof all in the manner and subject to the limitations set forth in this Declaration.

h)  The Board shall cause an annual independent audit to be made of the financial condition of the Association as of the end of each fiscal year and shall cause the delivery of copies of the report thereof to be made to all members not later than ninety (90) days after the close of each fiscal year or thirty (30) days after the completion of such reports, whichever is sooner.

i)  The Board shall have the power to perform such other acts, whether expressly authorized by this Declaration or the By-Laws as may be reasonably necessary to (i) enforce any of the provisions of this Declaration, the By-Laws or the rules and regulations duly adopted by the Board, or (ii) carry out and perform its power and responsibilities.

          Section 4. Personal Liability. No member of the Board or of any committee of the Association, or any officer of the Association or the Declarant, or the Manager, if any, shall be personally liable to any Owner, or to any other party, including the Association, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error or negligence of the Association, the Board, the Manager or any other representative or employee of the Association, the Declarant, or the Architectural Committee, or any other committee, or any officer of the Association, or the Declarant, provided that such person has, upon the basis of such information as may be possessed by him, acted in good faith, and without willful or intentional misconduct.

 

ARTICLE XI

COVENANT AGAINST PARTITION

     The right or partition of the Common Area is hereby suspended, provided, however, that an action may be brought by one or more Owners for partition by sale of the entire Project as if the Owners of all Condominiums in the Project were tenants in common n the entire Project in the same proportion as their interests in the Common Area, upon a showing of the occurrence of any one of the events provided in Section 752(b) of the Code of Civil Procedure. Nothing herein contained shall prevent the partition or division of interests between joint or common Owners of one Condominium Unit.

 

ARTICLE XII

EASEMENTS

     Section 1. Easements. Easements through the Units, Common Area and the Recreation Area for all facilities for the furnishings of utility services, television cable service and heating and air conditioning lines within any Unit, the Common Area or the Recreation Area, which facilities shall include but not be limited to conduits, ducts, plumbing and wiring, shall be appurtenant to each Unit, and all other Units, the Common Area and the Recreation Area shall be subject thereto; provided, however, that the easements for such facilities shall at all times be and remain substantially in accordance with the initial construction of the Project, or the Project as reconstructed upon damage or destruction pursuant to Article XIV hereof.

 

ARTICLE XII

INSURANCE

     Section 1. Public Liability Insurance. Comprehensive public liability insurance shall be purchased by the Board and shall be maintained in full force and effect at all times. Such insurance shall be obtained from reputable insurance companies authorized to do business in California. The amount of coverage shall be determined  by the Board from time to time so as to provide such coverage as the Board may deem prudent, provided, however, that the minimum amounts of coverage shall be $250,000.00 for personal injury to any one person, $500,000.00 for any one accident or occurrence and $50,000.00 for property damage. The premiums shall be paid for out of the common assessments levied and collected pursuant to this Declaration. Such policy shall name all Owners as insured's, including Declarant, as Declarant's interests may appear, and all holders of all Prior Deeds of Trust encumbering the condominiums within the Project, and also name as additional insured's, such persons or entities, including the Association, Declarant, the Board, the Manager, if any, and other agents or employees of the Board as the Board may deem necessary or required in order to insure the Association, Declarant, the Board, the agents, guests and invitees thereof, and the Owners against liability to the public, the Owners, their guest, tenants, family members and invitees, or any other persons whatsoever in connection with any damage or injury occurring in the Common Area or the Recreation Area or arising as a result of the ownership or use of the Common Area or the Recreation Area or any part thereof. Such policy shall otherwise be in such form and content and contain such endorsements as the Board deems appropriate, including, but not limited to cross-liability endorsement wherein the rights of named insured's shall not be prejudiced as respects actions by them against another named insured and provisions to the effect that the act of any Owner or other insured shall not invalidate the provisions of the policy. 

     Section 2. Fire and Extended Coverage Insurance. A master or blanket fire insurance policy shall be purchased by the Board and shall be maintained in force at all times, the premium thereon to be paid for out of the common assessments levied against each of the Owners in accordance with the Declaration. Such insurance shall be carried with reputable insurance companies qualified to do business in the State of California, and shall insure against loss from fire and such other hazards as the Board may deem appropriate, and shall insure all structures and improvements upon the Property and all personal property owned by the Association or by all the Owners as tenants in common for not less than one hundred percent (100%) of the full insurable replacement cost value thereof (as determined annually by the Board in conjunction with the insurance company issuing such policy). Such policy shall contain vandalism and malicious mischief coverage, together with such other coverage, endorsements and adjustment clauses as the Board deems appropriate. Such policy shall name the Board as insured as trustee for the benefit of all of the Owners, including declarant for so long as Declarant is an Owner of any Condominium within the Project. Such policy shall name the respective mortgagees of the Owners as their respective interests may appear and shall provide for the issuance of certificates of such endorsements evidencing the insurance as may be required by any insured. The Board may select such deductible, franchise, or franchise deductible provisions which, in its opinion, are consistent with good business practices in connection with the purchase of such policy.

     Section 3. Use of Proceeds. All insurance proceeds available under Section 2 of this Article XIII shall be paid to the Board and be held for the benefit of the Owners, mortgagees, and such other persons, as their respective interests shall appear, and shall be paid out in accordance with Article XIV of this Declaration.

     Section 4. Fidelity Bonds. The board shall purchase and maintain in force at all times a fidelity bond for each Director, naming each Director as principal and the Association as obligee. Each such bond shall be in an amount at least equal to the Association's total cash requirement for the year in which such bonds are issued as determined under subparagraph 2(a) of Article VI of this Declaration and for each succeeding year in an amount at least equal to the total sum collected as monthly assessments during the preceding year, the premiums thereon to be paid for out of the common assessments levied against all of the Owners in accordance with the provisions of this Declaration.

     Section 5. Additional Insurance. The Board may, at its option, purchase and maintain in force at all times demolition insurance in adequate amounts to cover demolition in the event of destruction and the decision not to rebuild. The premium therefore shall be paid for out of the common assessments levied against all the Owners in accordance with this Declaration. Such policy, if purchased, shall contain a determinable demolition clause, or similar clause, to allow for coverage of the cost of demolition in the event of destruction and decision not to rebuild. The Board shall also purchase and maintain workmen's compensation insurance to the extent that the same shall be required by law for employees of the Board. The Board may also purchase and maintain other fidelity bonds, insurance on commonly owned personal property, and such other insurance as it may deem necessary, the premiums thereon to be paid for out of the common assessments levied against all of the Owners in accordance with the provisions of this Declaration.

     Section 6. Owner Insurance. Any Owner may, at Owner's option, and at Owner's sole cost and expense, purchase personal liability and personal property insurance as Owner may desire; provided, however, that such policy or policies shall include a waiver of subrogation clause. The existence of such policy or policies shall not alter the obligations of the Board to obtain insurance as herein provided. Under no circumstances shall the Board be required to purchase any insurance covering the personal property of Owners, or any of them.

     Section 7. Authority of Board. Each of the Owners, and every other person named or covered as an insured in connection with any of the policies purchased by the Board hereby irrevocably delegates to the Board any authority which such Owner may otherwise has to negotiate loss settlements with the appropriate insurance carriers. The Board shall have the sole and exclusive authority and right to negotiate any such loss settlements; provided, however, that any execution of a loss claim form and release form in connection with the settlement of a loss claim shall be binding on all of the Owners, and upon any other person named as an insured on any such policy or policies only upon the execution thereof by a majority of the members of the Board.

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