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HomeMy WebLinkAboutCP 324; PETER GRAY; Condo Permit (CP)STATE OF CALIFORNIA—THE RESOURCES AGENCY -- GEORGE DEUKMEJIAN C',.,v,,'-nor CALIFORNIA COASTAL COMMISSION SAN DIEGO COAST DISTRICT 1333 CAMINO DEL RIO SOUTH, SUITE 125 SAN DIEGO, CA 92108-3520 (619) 297.9740 Date: March March 24, 1986 TO: Peter and Ellen Gray 1726 Kennincjton Rd. LeuCadia, CA 92024 SUBJECT: Waiver of Coastal Development Permit Requirement/De Minimis Developments-Section 30624.7 of the Coastal Act Based on your project plans and information provided in your permit appli- cation for the development described belcw, the Executive Director of the Coastal Commission. hereby waives the requirement for a Coastal Development Permit pursuant to Section 13238.1, Title 14, California Administrative Code. If, at a later date, this information is found to be incorrect or the, plans revised, this decision will become invalid; and, any development occurring must cease until a coastal development permit is obtained or any discrepancy is resolved iii writing. WAIVER #_272 . APPLICANT: Peter and Ellen Gray LOCATION: South side of Park Drive between Cove Drive and Marina Drive Carlsbad San Diego County APN 207-150-34 PROPOSED DEVELOPtENT:Construction of a three-story, 4,136 sq. 'ft. du p lex on a vacant 4,720 sq.ft. lot. Each unit will be provided a one-car garage anda - jacuzzi there will he 3 shared parking spaces in front and a shared boat dp,c,_ on the rear of the proper.'. Maximum height of the structure will be 30 feet.- - - RATIONALE: The project resents infill development in an established sub- division with a full array of urban services available. Th.project is consis- tent with the certified Aqua Hedionda Land Use Plan. This waiver will not become effective until reported to the Commission at thei; April 8-11, 1986 , meeting and the site of the proposed development has been appropriately noticed, pursuant to 13054(b) of the Administrative Code. The enclosed Notice Card shall remain posted at the site until the waiver has been validated and no less than seven days prior to the Commission hearing. If four (4) Conrrissioners object to this waiver of permit require- merits, a coastal development permit will be required. TOM CRANDALL South Coast District Director (6--86-129/6129R) cc: Commlssiorlers/Flle by :4 ____ (0790A)l2/A5 I Sheet 1 of 4 Sheets CONDOMINIUM PLAN Lot 50 of Shelter Cove, in the City of Carlsbad, County of San Diego, State of California, according to map thereof No. 5162 recorded in the Office of the County Recorder of San Diego County on April 23, 1963. GENERAL NOTES AND DEFINITIONS 1) This condominium plan consists of: a) a description of the land included within the project b) a diagrammatic plan of the RESIDENTIAL UNITS c) the location of the foundation of the Residential Buildings with respect to the RESIDENTIAL UNIT division line d) the certificate required by California Civil Section 1351 2) This Condominium Plan is composed of a Common Area and two units, RESIDENTIAL UNIT 1 and RESIDENTIAL UNIT 2. 3) Each RESIDENTIAL UNIT consists of a Residential Building and a Yard, as described herein. A Residential Unit is sometimes referred to herein, and in the Declaration of Covenants, Conditions and Restrictions applicable to this project, as a "Unit". 4) A Residential Building includes all portions of the structure comprising the Residential Building, including without limitation the foundation, bearing walls, roof, and all components of such improvement. The footprint of each Residential Building is shown hereon. 5) Each Residential Unit consists of all space, real property and improvements located within the Residential Unit area shown hereon. The lower boundary of each Residential Unit is a plane 10 feet below the slab elevation shown on sheet 3, and the upper boundary of Residential Unit 1 is a plane 38 feet above the slab elevation. The lateral boundaries of each Yard and Residential Unit are shown hereon. All angles be- tween the boundaries of any Yard and Residential Unit are 90 degrees, unless otherwise shown. 6) The common Area of this project is the land and real property within the boundary lines shown hereon, except therefrom those portions defined as UNIT 1 and UNIT 2. 7) The unit shall mean and include the elements of a condominium not owned in common with the owners of other condominiums in the project. 8) The physical boundaries of a condominium unit, or of a unit reconstructed in substantial conformance with the original plans thereof, shall be conclusively presumed to be its' boundaries rather than the metes and bounds expressed herein, regardless of settling or lateral movement of the building and regardless of variance between boundaries shown hereon and those of the building. SURVEYOR'S CERTIFICATE I hereby certify that I am a Licensed Land Surveyor in the State of California and that this plan consisting of 4 sheets correctly represents a survey of the boundary of the subject land and the relationship of the condominium units to said boundary. Jon Blake, L.S.4 LAND ExP(' (___ %E TERS 3O BLAKE 4368 9 Of C ° if h/Z7 Date LOT N 4 0 23'30" 1- C I) rp z 10 03 p.' ly, 0 10 ('3 V rn -i --4 -1ZI LE4EML • IOICATE5 A FOUl-JO LEAD 4 1216C 1.5 251? O1 A 4-.00' c/s 01-4 THE. LOT UME POJEC.TEO PER CPI • ifs4 0 IC.1ATES A FOUN 0 -3j4-" Pi PE 4 CA P LS 4-05 PgiC CR 5. E;. INDICATES SLAS ELEVATION NOTES fl.4115 SURVEV IS 13AS6O UPON COR1-1E.R RECORD -THE SASIS OF- SEARI1-15 FOR TI-ItS SURVEY IS TI-IC. 00' 0/6 LINE TO THE 81W OF PIAFZI< DRIVE LE N4(,0 OS'Z7'W E.LEVATIOl-46 ARE. SASEO UPOM THE TOP Oi CURS E LL- VAT ION OPPOSITE. THE CO8IUE.R TO LOT'S 60 AND 51 FROM crrl OF CARLSSAO DRAWIIJ- t'JO. I4-9 cz ELEVAIIOM = I2.57' -1 LI 0 CR z II .50 100.00' - —\ r Ii I R&6I06P4TIAL BUILOI1'J& t J I 0+ 60 o couMoAItoM LIME. N 4Z° 46'4-0"E IIS.(D(o' I RE.5I0E1-JflAL OMIT OIVlSIOr.J LIKIE 7 ZEI0EMTIAL SUILOUUG J ci' m rci 0 r 0 m 3 7 N SQ > 7 Cp x I') HET 3 OF .4 G-tEE.T5 CONDOMINIUM- PLAN LOT 50 ) MPh'.? 51,Z. FOUP4OAT(OH O&TALL S SCALE: I" = to / Ile- / CONOOIt4ftjI\ PLAN L0r50, MP5j&,Z. 40.00' zo-o' LAccot1 pcc-e5 SMtJr i' /'i(Q 16.00 , J10 zz I QU I FeWc AupcA1'E EP.MeNT POK utrr Z. I Ut4LT I I 0P4 IT Z. 1,41 I I tu \ JJ UJ ci*L - It') /\I) If Ij :!± - 11 OL 44 0 c's' z.-"g. 40.01' 21 TICOR TITLE JFSURANCE . (p TICOR TITLE INSURANCE COMPANY 925 "B" STREET SAN DIEGO, CALIFORNIA 92101 P.O. BOX 1150 SAN DIEGO, CALIFORNIA 92112 619 239-6081 PRELIMINARY REPORT MAY 19, 1987 SUMMIT ESCROW ATTN: KAY MC HAFFEY 7071 CONVOY CT., SUITE 114 SAN DIEGO, CALIFORNIA 92111 YOUR REFERENCE: 4663 OUR ORDER NO. : 1155666 IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, TICOR TITLE INSURANCE COMPANY OF CALIFORNIA HEREBY REPORTS THAT IT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, AS OF THE DATE HEREOF, A POLICY OR POLICIES OF TITLE INSURANCE DESCRIBING THE LAND AND THE ESTATE OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORMS. HE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH ON EXHIBIT 'A' ATTACHED HERETO AND INCORPORATED HEREIN. COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. THIS REPORT, (AND ANY SUPPLEMENTS OR AMENDMENTS THERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. DATED AT 7:30 A.M. AS OF MAY 15, 1987 TITLE OFFIC SANDRA WEBER TEL 619 544-6222 SIGNED: HE FORM OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS: (4 ALTA RESIDENTIAL TITLE INSURANCE POLICY - 1979 4 ALTA LOAN POLICY - 1970 WITH ALTA ENDORSEMENT FORM 1 COVERAGE (AMENDED 10-17-70) CLTA STANDARD COVERAGE POLICY - 1973 (AMENDED 12-6-85 AND 2-20-86) ALTA OWNER'S POLICY FORM B - 1970 (AMENDED 10-17-70) 1155666 PAGE Wj,j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ljr TICOR TITLE SiSURANCE 0 0) RECORDED : AUGUST 5, 1966, RECORDER'S FILE NO. 127577 RESTRICTIONS, IF ANY, BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE. SAID COVENANTS, CONDITIONS AND RESTRICTIONS HAVE BEEN PURPORTEDLY MODIFIED BY AN INSTRUMENT RECORDED : OCTOBER 28, 1977, RECORDER'S FILE NO. 77-447138 SAID COVENANTS, CONDITIONS AND RESTRICTIONS HAVE BEEN PURPORTEDLY MODIFIED BY AN INSTRUMENT EXECUTED BY : THE BRISTOL COVE PROPERTY OWNERS ASSOCIATION RECORDED : DECEMBER 6, 1983, RECORDER'S FILE NO. 83-442993 6. AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : SAN DIEGO GAS & ELECTRIC COMPANY FOR : UNDERGROUND ELECTRICAL FACILITIES FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY RECORDED : MARCH 17, 1967, RECORDER'S FILE NO. 36713 AFFECTS : THE NORTHEASTERLY 5.00 FEET. 7, AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : BRISTOL COVE PROPERTY OWNERS ASSOCIATION, A NONPROFIT CORPORATION FOR : UNDERGROUND DRAINAGE FACILITIES RECORDED : AUGUST 2, 1967, RECORDER'S FILE NO. 114092 AFFECTS : AS FOLLOWS: A STRIP OF LAND 15 FEET WIDE ON SAID LOT 50 AS SAID LOT IS SHOWN ON SAID MAP, THE WESTERN LINE OF SAID STRIP BEING THE EASTERN LINE OF LOT 74 AS SAID LOT IS SHOWN ON SAID MAP, THE EASTERN LINE AND WESTERN LINE OF SAID STRIP TO BE EXTENDED OR SHORTENED SO AS TO TERMINATE ON THE NORTHWEST LINE OF LOT 44 AND ON THE SOUTHERN LINE OF LOT 72. 8. AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : JANSS CORPORATION, A CORPORATION FOR : STORM DRAIN AND TREE MAINTENANCE RECORDED DECEMBER 22, 1967, RECORDER'S FILE NO. 201638 AFFECTS : A STRIP OF LAND 15 FEET WIDE ADJACENT TO THE BOUNDARY COMMON TO SAID LOTS 50 AND 74. 9. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS OF THE AMOUNT STATED HEREIN DATED : APRIL 28, 1986 AMOUNT : $300,000.00 TRUSTOR : PETER ANTHONY GRAY AND ELLEN BECKER GRAY, AS TRUSTEES UNDER DECLARATION OF TRUST DATED DECEMBER 28, 1978 AND 1155666 PAGE 3 0 TICOR TITLE 1SURANCE • 0 AMENDMENT THERETO DATED APRIL 11, 1985, WHO ACQUIRED TITLE AS PETER A. GRAY AND ELLEN B. GRAY, AS TRUSTEES UNDER THAT CERTAIN TRUST CREATED BY THE GRAY FAMILY TRUST DATED APRIL 11, 1985, AND IN PETER A. GRAY AND ELLEN B. GRAY, HUSBAND AND WIFE AS COMMUNITY PROPERTY; AS THE INTERESTS OF SAID TRUSTEE AND HUSBAND AND WIFE MAY APPEAR TRUSTEE : SAFECO TITLE INSURANCE COMPANY BENEFICIARY : SAN MARCOS NATIONAL BANK, A NATIONAL BANKING ASSOCIATION RECORDED : MAY 5, 1986, RECORDER'S FILE NO. 86-176291 10. AN AGREEMENT TO WHICH REFERENCE IS HEREBY MADE FOR FULL PARTICULARS DATED : FEBRUARY 27, 1986 BY AND BETWEEN : THE CITY OF CARLSBAD AND ED OLSEN REGARDING : AGREEMENT TO PAY INCREASED FEES FOR DEVELOPMENT MANAGEMENT SYSTEM RECORDED : MAY 20, 1986, RECORDER'S FILE NO. 86-199439 11. ANY MATTERS WHICH MAY BE DISCLOSED BY AN INSPECTION OF SAID LAND. 12, THE FACT THAT THE DESCRIPTION IN THIS REPORT APPEARS FROM OUR RECORDS TO COVER THE LAND PROVIDED FOR IN YOUR ESCROW. IT IS SUGGESTED, HOWEVER, THAT THE IDENTITY OF SAID LAND (SEE PLAT ENCLOSED) BE VERIFIED BY YOU TO ASSURE THAT IT IS THE LAND INTENDED TO BE COVERED IN THIS TRANSACTION. TAX FIGURES FOR CODE AREA PARCEL NO. LAND FIRST INSTALLMENT SECOND INSTALLMENT: 1986-87 9000 207-150-34 $135,000.00 $718.58, PAID $718.58, DELINQUENT SUPPLEMENTAL TAXES FOR THE FISCAL YEAR 1986-87 ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3.5 (COMMENCING WITH SECTION 75) OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA; CODE AREA 9000 PARCEL NO. 859-003-54-85 LAND $108,501.00 FIRST INSTALLMENT $483.81, PAID SECOND INSTALLMENT $483.81, PAID NOTE: THE COUNTY RECORDER'S OFFICE WILL CHARGE, IN ADDITION TO THE REGULAR RECORDING CHARGES, AN EXTRA $20.00 RECORDING FEE, UNLESS A DOCUMENT EVIDENCING A CHANGE OF OWNERSHIP IS ACCOMPANIED BY A "PRELIMINARY CHANGE OF OWNERSHIP REPORT." IN LIEU OF SAID REPORT, SIGNED BY THE 1155666 PAGE 4 fjej-- TICOR TITLE WSURANCE • (p TRANSFEREE, THE RECORDER WILL NOT CHARGE AN EXTRA FEE IF THE DOCUMENT IS ACCOMPANIED BY AN AFFIDAVIT THAT THE TRANSFEREE IS NOT A RESIDENT OF CALIFORNIA. OUR TITLE BILLING WILL BE ADJUSTED TO REFLECT SUCH ADDITIONAL FEES WHEN APPLICABLE. 1155666 PAGE 5 NJ TICOR TITLE 44SURANCE . 0 THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: ALL OF LOT 50 OF THAT TRACT DESCRIBED IN MAP NO. 5162, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON APRIL 23, 1963. EXCEPTING ALL THE OIL, GAS, MINERAL AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE OF SAID LAND, WITHOUT HOWEVER, THE RIGHT OF SURFACE ENTRY. PARCEL 2: A NON-EXCLUSIVE EASEMENT AND RIGHT OF WAY FOR PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS, INCLUDING THE RIGHT TO TRANSPORT SMALL WATERCRAFT, OVER LOT 15 OF THAT TRACT DESCRIBED IN MAP 5162, RECORDED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON APRIL 23, 1963, WHICH EASEMENT IS FOR THE BENEFIT OF AND APPURTENANT TO THE HEREINABOVE DESCRIBED PARCEL I AND, BEING APPURTENANT, SHALL RUN WITH THE LAND. PARCEL 3: A NON-EXCLUSIVE EASEMENT AND RIGHT OF WAY FOR VEHICULAR AND SMALL WATERCRAFT INGRESS AND EGRESS OVER LOT 74 OF THAT TRACT DESCRIBED IN MAP NO. 5162, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON APRIL 23, 1963, WHICH EASEMENT IS FOR THE BENEFIT OF AND APPURTENANT TO THE HEREINABOVE DESCRIBED PARCEL 1 AND, BEING APPURTENANT, SHALL RUN WITH THE LAND, AND WHICH EASEMENT IS SUBJECT TO SUCH RULES AND REGULATIONS FOR USE AS MAY BE PROMULGATED FROM TIME TO TIME PURSUANT TO THE DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS, RECORDED AUGUST 5, 1966, RECORDER'S FILE NO. 127577. THIS EASEMENT SHALL TERMINATE AS TO ANY WHARFAGE AREA WITHIN LOT 74 AS SOON AS CONSTRUCTION OF ANY WHARFAGE FACILITY IS INITIATED THEREIN, SUCH WHARFAGE AREA, TO WHICH REFERENCE IS MADE IN THE PREVIOUS SENTENCE, IS ANY ONE OF THOSE DELINEATED IN EXHIBIT "B" ATTACHED TO AND INCORPORATED IN THE DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS MORE SPECIFICALLY DESCRIBED ABOVE. PARCEL 4: AN EASEMENT OVER THAT PORTION OF THE ABOVE REFERENCED LOT 74 OF SAID TRACT DESCRIBED IN MAP NO. 5162, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON APRIL 23, 1963, WHICH PORTION IS WHARFAGE AREA 50, AS DELINEATED IN EXHIBIT "B" ATTACHED TO AND INCORPORATED IN THE ABOVE REFERENCED DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS, SAID EASEMENT TO BE FOR THE EXCLUSIVE RIGHT TO CONSTRUCT, MAINTAIN AND USE A WHARFAGE FACILITY PURSUANT TO SAID DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS AND APPURTENANT TO 1155666 PAGE 6 0 TICOR TITLE &SURANCE 0 0) PARCEL 1 ABOVE. 1155666 PAGE TICOR TITLE JVSURANCE EXHIBIT A S Printed Policy Exceptions and Exclusions AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY--1979 EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: * land use Improvements on the land * land division * environmental protection This exclusion does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks. 3. Title Risks: * that are created, allowed or agreed to by you * that are known to you, but not to us, on the Policy Date-- unless they appeared In the public records * that result in no loss to you * that first affect your title after the Policy Date--this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: * to any land outside the area specifically described and referred to in Item 3 of Schedule A, or 2. The right to take the land by condemning It, unless a notice of * in streets, alleys or waterways that touch your land. taking appears in the public records on the Policy Date. This exclusion does not limit the access coverage In Item 5 of Covered Title Risks. SCHEDULE B--STANDARD EXCEPTIONS (A) Any rights, interests or claims of parties in possession of the land not shown by the public records. (B) Any easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of the Covered Title Risks. (C) Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in Item 12 of Covered Title Risks. (0) Any water rights, claims or title to water on or under the land. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY--1970 WITH ALTA ENDORSEMENT FORM 1 COVERAGE (AMENDED 10-17-70) SCHEDULE OF EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation In ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law, ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears In the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the Insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (C) resulting In no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent insurance is afforded herein as to any statutory lien for labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy). 4. Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Policy or of any subsequent owner of the indebtedness to comply with applicable "doing business" laws of the state in which the land is situated. 1155666 PAGE 8 fje-j- TICOR TITLE 81SURANC6 41 n CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY---1973 (Amended 12-6-85 and 2-20-86) SCHEDULE B PART I This policy does not Insure against loss or damage, nor against costs, attorneys' fees or expenses, any or all of which arise by reason of the following: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. S. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the Issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (C) are shown by the public records. 6. Any right, title, Interest, estate or easement in land beyond the lines of the area specifically described or referred to in Schedule C, or In abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this paragraph shall modify or limit the extent to which the ordinary right of an abutting owner for access to a physically open street or highway is insured by this policy. 7. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part, whether or not shown by the public records at Date of Policy, or the effect of any violation of any such law, ordinance or governmental regulation, whether or not shown by the public records at Date of Policy. 8. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records. 9. Defects, liens, encumbrances, adverse claims, or other matters (a) whether or not shown by the public records at Date of Policy, but created, caused, suffered, assumed or agreed to by the insured claimant; (b) not shown by the public records and not otherwise excluded from coverage but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the Insured mortgage and not disclosed In writing by the Insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting In no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting In loss or damage which would not have been sustained if the insured claimant had been a purchaser or encumbrancer for value without knowledge. 10. Any facts, rights, interest or claims which are not shown by the public records but which could be ascertained by making Inquiry of the lessors in the lease or leases described or referred to in Schedule A. 11. The effect of any failure to comply with the terms, covenants and conditions of the lease or leases described or referred to in Schedule A. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B--1970 (Amended 10-17-70) SCHEDULE OF EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy: Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any Improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions of area of the land, or the effect of any violation of any such law, ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the-date such claimant acquired an estate or interest by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. Principal Office: 6300 Wilshire Boulevard, P.O. Box 92792, Los Angeles, California 90009 1155666 PAGE 9 LOT 14 SO.'SZ 33 32 3/ 50 ZS 21 21 1246 25 24 23 'LL L / PA 7 -, /V ,r 'V .. MAjOAACL d) 5AAEL T~F12 CO VE — aA/ 3Q/A/OAEY ,?se< .vao&gc.Ø .'1440S 1?W eSflS • = 4r--- N — PARK ,R)V I X ,•. N /( T. IL h EGEMO • VD.-'/(S.t..j., .CS: #rI Lift. • St C ._,o 5 • Sr - :i _Lf.6 ____,. - 21' 4 a,o 'p. ftTS .eaarj.._ mad-es C C-.. 1C .-'tSS P.w1( qflO This is not a survey of the land, but is compiled for information only, nor is it a part of the report or policy to which it may be attached. TITLE INSURANCE AND TRUST 220 'A' Street San Diego, California, 92101 - /O( TICOR TITLE INSURANCE CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY • 1973 SCHEDULE A POLICY NO. : 1134014 AMOUNT : $135,000.00 CHARGE : $637.50 EFFECTIVE DATE: AUGUST 7, 1985, AT 8:00 A.M. 1. NAME OF INSURED THOMAS J. LANAHANAND IRENE A. LANAHAN; ROGER LAMS AND LJEANNETTE MARIETTE LAMS AND PETER A, GRAY AND ELLEN P. GRAY, AS TRUSTEES UNDER THAT CERTAIN TRUST CREATED BY THE GRAY FAMILY TRUST DATED APRIL 11, 1985 AND IN PETER A. GRAY AND ELLEN B. GRAY, HUSBAND AND WIFE AS COMMUNITY PROPERTY; AS THE INTERESTS OF SAID TRUSTEE AND HUSBAND AND WIFE MAY APPEAR." 2. THE ESTATE OR INTEREST IN THE LAND DESCRIBED HEREIN AND WHICH IS COVERED BY THIS POLICY IS A FEE AS TO PARCEL 1; AN EASEMENT AS TO PARCELS 2, 3 AND 4 3. THE ESTATE OR INTEREST REFERRED TO HEREIN IS AT DATE OF POLICY VESTED IN: PETER A. GRAY AND ELLEN B. GRAY, AS TRUSTEES UNDER THAT CERTAIN TRUST CREATED BY THE GRAY FAMILY TRUST DATED APRIL 11, 1985 AND IN PETER A. GRAY AND ELLEN B. GRAY, HUSBAND AND WIFE AS COMMUNITY PROPERTY; AS THE INTERESTS OF SAID TRUSTEE AND HUSBAND AND WIFE MAY APPEAR. SCHEDULE B THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE, NOR AGAINST COSTS, ATTORNEY'S FEES OR EXPENSES, ANY OR ALL OF WHICH ARISE BY REASON OF THE FOLLOWING. PART I ALL MATTERS SET FORTH IN PARAGRAPHS NUMBERED I (ONE) TO 11 (ELEVEN) INCLUSIVE ON THE INSIDE COVER SHEET OF THIS POLICY UNDER THE HEADING OF SCHEDULE B PART I. PART II 1. GENERAL AND SPECIAL COUNTY AND CITY TAXES AND SPECIAL ASSESSMENTS, IF ANY, COLLECTED WITH SAID TAXES. FOR THE FISCAL YEAR : 1985-86 4 I I- •TICOR TITLE ISURNCE jj71 d$I A LIEN NOT YET PAYABLE. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3.5 (COMMENCING WITH SECTION 75) OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. 2. ANY ADVERSE CLAIM BASED UPON THE ASSERTION THAT SOME PORTION OF SAID LAND IS TIDE OR SUBMERGED LANDS, OR HAS BEEN CREATED BY ARTIFICIAL MEANS OR HAS ACCRETED TO SUCH PORTION SO CREATED. 3. EASEMENTS AND RIGHTS OF WAY FOR ROAD AND PUBLIC UTILITIES, AND APPURTENANCES THERETO, AS RESERVED AND CONVEYED BY VARIOUS DEEDS OF RECORD AFFECTS : EASEMENT PARCELS 2, 3 AND 4 4. AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : SAN DIEGO GAS & ELECTRIC COMPANY FOR : ANCHOR TO SUPPORT A LINE OF POLES AND WIRES RECORDED : JULY 8, 1963, RECORDER'S FILE NO. 118499 AFFECTS : THE NORTHEASTERLY 88 FEET FO THE SOUTHEASTERLY 3 FEET OF LOT 50. 5. COVENANTS, CONDITIONS AND RESTRICTIONS IN THE DECLARATION OF RESTRICTIONS RECORDED : AUGUST 5, 1966, RECORDER'S FILE NO. 127577 RESTRICTIONS, IF ANY, BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE. SAID COVENANTS, CONDITIONS AND RESTRICTIONS HAVE BEEN PURPORTEDLY MODIFIED BY AN INSTRUMENT RECORDED : OCTOBER 28, 1977, RECORDER'S FILE NO. 77-447138 SAID COVENANTS, CONDITIONS AND RESTRICTIONS HAVE BEEN PURPORTEDLY MODIFIED BY AN INSTRUMENT EXECUTED BY : THE BRISTOL COVE PROPERTY OWNERS ASSOCIATION RECORDED : DECEMBER 6, 1983, RECORDER'S FILE NO. 83-442993 6. AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : SAN DIEGO GAS & ELECTRIC COMPANY FOR : UNDERGROUND ELECTRICAL FACILITIES FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY RECORDED : MARCH 17, 1967, RECORDER'S FILE NO. 36713 AFFECTS : THE NORTHEASTERLY 5.00 FEET. 7. AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : BRISTOL COVE PROPERTY OWNERS ASSOCIATION, A NONPROFIT CORPORATION a a a s a a M A r t' olf ` P TICOR TITLE IURANCE •., FOR : UNDERGROUND DRAINAGE FACILITIES RECORDED : AUGUST 2, 1967, RECORDER'S FILE NO. 114092 AFFECTS : AS FOLLOWS: A STRIP OF LAND 15 FEET WIDE ON SAID LOT 50 AS SAID LOT IS SHOWN ON SAID MAP, THE WESTERN LINE OF SAID STRIP BEING THE EASTERN LINE OF LOT 74 AS SAID LOT IS SHOWN ON SAID MAP, THE EASTERN LINE AND WESTERN LINE OF SAID STRIP TO BE EXTENDED OR SHORTENED SO AS TO TERMINATE ON THE NORTHWEST LINE OF LOT 44 AND ON THE SOUTHERN LINE OF LOT 7. 8. AN EASEMENT, AS REFLECTED IN AN INSTRUMENT CREATING OR REAFFIRMING SAID EASEMENT, AFFECTING THE PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN, AND INCIDENTAL PURPOSES IN FAVOR OF : iJANSS CORPORATION, A CORPORATION FOR : STORM DRAIN AND TREE MAINTENANCE RECORDED : DECEMBER 22, 1967, RECORDER'S FILE NO. 201638 AFFECTS : A STRIP OF LAND 15 FEET WIDE ADJACENT TO THE BOUNDARY COMMON TO SAID LOTS 50 AND 74. 9. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS OF THE AMOUNT STATED HEREIN DATED : MAY 28, 1985 AMOUNT : $95,000.00 TRUSTOR : PETER A. GRAY AND ELLEN B. GRAY, TRUSTEES OF THE GRAY FAMILY TRUST DATED APRIL 11, 1985 TRUSTEE : TICOR TITLE INSURANCE COMPANY OF CALIFORNIA, A CALIFORNIA CORPORATION BENEFICIARY : THOMAS J. LANAHAN AND IRENE A. LANAHAN, HUSBAND AND WIFE AS JOINT TENANTS, AS TO AN UNDIVIDED ONE-HALF (1/2) INTEREST AND ROGER LAMS AND IJEANNETTE MARIETTE LAMS, HUSBAND AND WIFE AS JOINT TENANTS, AS TO AN UNDIVIDED ONE-HALF (1/2) INTEREST RECORDED : AUGUST 7, 1985, RECORDER'S FILE NO. 85-282622 j 71COR TITLE IPWURANCE 0 SCHEDULE C THE LAND REFERRED TO IN THIS POLICY IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: ALL OF LOT 50 OF THAT TRACT DESCRIBED IN MAP NO. 5162, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF RECORDED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY, ON APRIL 23, 1963. EXCEPTING ALL THE OIL, GAS, MINERAL AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE OF SAID LAND, WITHOUT HOWEVER, THE RIGHT OF SURFACE ENTRY. PARCEL 2: A NON-EXCLUSIVE EASEMENT AND RIGHT OF WAY FOR PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS, INCLUDING THE RIGHT TO TRANSPORT SMALL WATERCRAFT, OVER LOT 15 OF THAT TRACT DESCRIBED IN MAP 5162, RECORDED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON APRIL 23, 1963, WHICH EASEMENT IS FOR THE BENEFIT OF AND APPURTENANT TO THE HEREINABOVE DESCRIBED PARCEL I AND, BEING APPURTENANT, SHALL RUN WITH THE LAND. PARCEL 3: A NON-EXCLUSIVE EASEMENT AND RIGHT OF WAY FOR VEHICULAR AND SMALL WATERCRAFT INGRESS AND EGRESS OVER LOT 74 OF THAT TRACT DESCRIBED IN MAP NO. 5162, RECORDED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON APRIL 23, 1963, WHICH EASEMENT IS FOR THE BENEFIT OF AND APPURTENANT TO THE HEREINABOVE DESCRIBED PARCEL 1 AND, BEING APPURTENANT, SHALL RUN WITH THE LAND, AND WHICH EASEMENT IS SUBJECT TO SUCH RULES AND REGULATIONS FOR USE AS MAY BE PROMULGATED FROM TIME TO TIME PURSUANT TO THE DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS, RECORDED AUGUST 5, 1966, RECORDER'S FILE NO. 127577. THIS EASEMENT SHALL TERMINATE AS TO ANY WHARFAGE AREA WITHIN LOT 74 AS SOON AS CONSTRUCTION OF ANY WHARFAGE FACILITY IS INITIATED THEREIN, SUCH WHARFAGE AREA, TO WHICH REFERENCE IS MADE IN THE PREVIOUS SENTENCE, IS ANY ONE OF THOSE DELINEATED IN EXHIBIT "B" ATTACHED TO AND INCORPORATED IN THE DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS MORE SPECIFICALLY DESCRIBED ABOVE. PARCEL 4: AN EASEMENT OVER THAT PORTION OF THE ABOVE REFERENCED LOT 74 OF SAID TRACT DESCRIBED IN MAP NO. 5162, RECORDED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON APRIL 23, 1963, WHICH PORTION IS WHARFAGE AREA 50, AS DELINEATED IN EXHIBIT "B" ATTACHED TO AND INCORPORATED IN THE ABOVE REFERENCED DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS, SAID EASEMENT TO BE FOR THE EXCLUSIVE RIGHT TO A ^- 'g 31COR TITLE 11VURANCE • 4 CONSTRUCT, MAINTAIN AND USE A WHARFAGE FACILITY PURSUANT TO SAID DECLARATION OF RESTRICTIONS AND PROTECTIVE COVENANTS AND APPURTENANT TO PARCEL I ABOVE. - ,. A QUALITY ORIGINAL (S) CITY OF CARLSBAD 1200 ELM MVENUE CARLSBAD, CALIFORNIA 92008 438-5621 REC'D FROM_JLL DATE ACCOUNT NO. DESCRIPTION AMOUNT ./f.g'yL/ 92027 0027 08/19 01 5Mic 172 cm -V RECEIPT NO. 1 TOTAL CITY OF CARLSBAD 1200 ELM kqifENUE CARLSBAD, CALIFOhNIA 92008 438-5621 7 , - I,- REC'D FROM V V' VHV DATE ACCOUNT NO. V V DESCRIPTION AMOUNT V ifJ/)cco/f I r 314178 O021 CiS/1 (YOj ;N1 , V V V _ _ RECEIPT NO. 72724 TOTAL 7JLV/i Jon Blake and Surveyin? United States Mineral Surveyor California L.S. 4368- Alaska L.S. 4839 Nevada R.L.S. 5972 -Arizona R.L.S. 14660 May 15, 1987 City of Carlsbad Planning Department 2075 Las Plamas Dr. Carlsbad, CA. 92009-4859 Attention: Robert Wojic Subject: Request for Condominium permit Lot 50, Map 5162 (4629 A and B Park Drive) Dear Mr. Wojic: Transmitted herewith are: 1) / Copies of the building plans for Lot 50 2) /Check #2348 in the amount of $240.00 3) Check #2349 in the amount of $30.00',, 4) 1 City of Carlsbad Application & Permit (for compliance inspection) Please contact me if there is anything else I can provide which will assist you in processing the Condominium Permit or Parcel Map Waiver request. Sincerely, S)ZBJGJQL Jon Blake, L.S. REC%V ED 15 1991 CT'i OF CI\RLSBI\D PROC. SERV. Div. 1739 Red Barn Road. Encinitas. Co. 92024 (619) 753-3817 136705 DUP TO FROM - C14 CIL ç c- rti 1ep+. SUBJECT DATE G-e4 pôc /1 5/Z.7 /87 TcJ MESSAGE '' r Mvr/Cc ci pItcic' V ve3-J- CL c2 ( 4-1'L rr+. Thc j I7. TJii rpoc4 iJ1 2 k " -13 z r w / SIGNED IRE c*l. bTFOMj® 4S 468 NO REPLY NECESSARY T REPLY REQUESTED - USE REVERSE SIDE POLY PM(50 SETS) H A c F7 3 2 * i /87 DECLARATION OF ESTABLISHMENT OF COVENANTS, CONDITIONS, AND RESTRICTIONS OF LOT 50 - SHELTER COVE CONDOMINIUMS 8 TABLE OF CONTENTS Page ARTICLE 1 - DEFINITION OF TERMS Section 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 Articles Assessment Association Association Property Board or Board of Directors By-Laws Common Area Common Expense Common Interest Condominium Condominium Documents Condominium Plan Declarant Declaration Eligible Mortgage Holder Eligible Requesting Mortgagee, or Guarantor Exclusive Common Area First Lender, First Mortgagee, First Mortgage Holder First Mortgage Member Mortgage Mortgagee Mortgagor Owner or Owners Person Project Share Unit Unit Designation Singular and Plural Insurer or 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 ARTICLE 2 - DESCRIPTION OF LAND AND IMPROVEMENTS 5 Section 2.1 - Condominium Plan Best Authority 5 2.2 - Property Description 5 2.3 - Property Boundaries 5 2.4 - Description of Individual Condominium 5 2.4.1 - Units 6 2.4.2 - Condominium 6 2.5 - Owners' Easements and Rights of Enjoyment 2.6 - Easements -1.- r TABLE OF CONTENTS (Cont'd) Page ARTICLE 3 - OWNERS' ASSOCIATION 7 Section 3.1 - Creation of Association 7 3.2 - Transfer of Membership 7 3.3 - Control and Maintenance of Common Area and Other Areas 7 ARTICLE 4 - MANAGEMENT OF OWNERS' ASSOCIATION 8 Section 4.1 - Creation of Board of Directors 7 4.2 - Annual Meetings 8 4.3 - Owner Voting Rights 8 4.4 - Voting Rights 8 4.4.1 - Members' Right to Vote 8 4.4.2 - Voting 8 4.5 - Election of Board of Directors 8 4.6 - Meetings 9 4.7 - Voting Proxies 9 4.8 - Quorum 9 4.9 - Written Notice of Meetings and 9 Special Meetings 4.10 - Indemnification for Performance 9 of Duties 4.11 - Action by Written Consent 9 ARTICLE 5 - DUTIES AND POWERS OF OWNERS' ASSOCIATION 9 Section 5.1 - Administration of Project 9 5.2 - Authority of Board and Incorporator 9 ARTICLE 6 - COVENANT FOR MAINTENANCE ASSESSMENTS 18 Section 6.1 - Creation of Lien - Personal 18 Obligation of Assessments 6.2 - Basic Maximum Amount of Regular 19 Assessment 6.2.1 - Initial Regular Assessment 19 6.2.2 - Increase of Regular Assessment 19 by Board 6.2.3 - Certificate of Payment 19 6.3 - Special Assessments for Capital 20 Improvements and Emergency Needs 6.3.1 - Increase of Special Assessments 20 by Board 6.4 - Date of Commencement of Regular 20 Assessments -ii- TABLE OF CONTENTS (Cont'd) Page ARTICLE 6 (Cont'd) Section 6.5 - Payment of Assessment by Owners 6.6 - Maintenance Fund 6.7 - Effect of Non-Payment of Assessments - Lien Rights - Remedies of the Association 6.8 - Homestead Waiver 6.9 - Curing of Default 6.10 - Priority of Assessment Lien - Subordination of Lien 6.11 - Rights of Board - Waiver of Owners 6.12 - Purpose of Assessments 6.13 - Unallocated Taxes 6.14'- Exemption from Assessments ARTICLE 7 - USE RESTRICTIONS Section 7.1 - Condominium Use 7.2 - Nuisances 7.3 - Vehicle Restrictions 7.4 - Signs 7.5 - Animals 7.6 - Garbage and Refuse Disposal 7.7 - Radio and Television Antennas 7.8 - Right to Lease 7.9 - Use of Recreational Facilities by Tenants 7.10 - Architectural Control 7.11 - Power Equipment and Car Maintenance 7.12 - Liability of Owners for Damage to Common Area 7.13 - Drainage 7.14 - Laundry Drying 7.15 - Maintenance of Units 7.16 - Compliance with Law ARTICLE 8 - GENERAL PROVISIONS Section 8.1 - Right of Entry for Emergency Repair 8.2 - Continuing Liability for Assessments 8.3 - No Racial Restrictions 8.4 - Books and Records of the Association 8.5 - Taxes 8.6 - Enforcement of Declaration and By-Laws 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 25 25 25 25 26 27 27 27 27 28 28 28 29 29 29 29 29 29 -iii- TABLE OF CONTENTS (Cont'cl) Page ARTICLE 8 (Cont'd) Section 8.7 - Liberal Interpretation of Declaration 30 8.8 - Severability of Provisions 30 8.9 - Cumulative Remedies 30 8.10 - Successors and Assigns 30 8.11 - Waiver or Breach of Declaration 30 8.12 - Delivery of Notices and Documents 30 8.13 - Notification of Sale of Condominium 31 8.14 - Joint and Several Liability 31 8.15 - Encroachment Easements 32 8.16 - Limitation of Restrictions on 32 Declarant 8.17 - Determination of Costs and Expenses 33 ARTICLE 9 - UTILITIES AND EASEMENTS 33 Section 9.1 - Owners' Rights and Duties 33 9.2 - Easements for Utilities and Maintenance 34 9.3 - Association's Duties 34 9.4 - Underground 34 9.5 - Association Easements 34 9.6 - Declarant Easements 35 ARTICLE 10 - DESTRUCTION OF IMPROVEMENTS 35 Section 10.1 - Reconstruction with Election of 35 Owners 10.2 - Reconstruction Assessments 35 10.3 - Obligation of Board 35 10.4 - Determination Not to Rebuild 35 10.4.1 - Distribution of Insurance 36 Proceeds 10.4.2 - Recordation of Certificate 36 Not to Rebuild 10.5 - Destruction of Unit Improvements 36 10.6 - Condemnation 36 ARTICLE 11 - SUSPENSION OF THE RIGHT TO PARTITION 36 ARTICLE 12 - PROHIBITIONS AGAINST SEVERABILITY OF 37 COMPONENT INTEREST IN CONDOMINIUM Section 12.1 - Prohibition of Severance 37 12.2 - Conveyance of Entire Condominium 37 - iv- TABLE OF CONTENTS (Cont'd) Page ARTICLE 13 - TERM OF DECLARATION - COMPLIANCE WITH 37 RULE AGAINST PERPETUITIES AND RESTRAINTS OF ALIENATION ARTICLE 14 - PROTECTION OF LENDERS 37 Section 14.1 - Written Notification to Requesting 37 Mortgagees, Insurers or Guarantors 14.2 - Exemption from Right of First Refusal 38 14.3 - Subordination of Assessment Lien to 38 Mortgages 14.4 - Prior Approval of Eligible Mortgage 38 Holders 14.5 - Examination of Books and Records 40 14.6 - Reserves for Replacement 41 14.7 - Taxes, Assessments and Charges 41 14.8 - No Priority Over Rights of First 41 Mortgagees 14.9 - Professional Management of Project 41 14.10 - Notice to Lender 41 14.11 - Conflict 41 14.12 - Audited Statements 41 14.13 - Insurance 42 14.14 - Priority of Mortgage Lien 42 14.15 - Curing Defaults 42 14.16 - Resale 42 14.17 - Payment of Taxes or Premiums 43 ARTICLE 15 - BREACH 43 Section 15.1 - Right of Entry 43 15.2 - Nuisance 43 15.3 - Right of Lien Holder 43 15.4 - Enforcement 44 ARTICLE 16 - AMENDMENT 44 Section 16.1 - Subsequent to First Close of Escrow 44 16.2 - Prior to First Close of Escrow 44 ARTICLE 17 - ASSIGNMENT OF DECLARANT'S AND ASSOCIATION'S 45 RIGHTS -v- a) TABLE OF CONTENTS (Cont'd) Page ARTICLE 18 - BINDING EFFECT OF COVENANTS, CONDITIONS 45 AND RESTRICTIONS ARTICLE 19 - INVALIDITY OF ANY PROVISION 45 ARTICLE 20 - WAIVER 46 ARTICLE 21 - PARTIES SUBJECT TO PROVISIONS 46 ARTICLE 22 - ENFORCEMENT OF CERTAIN.BONDED OBLIGATIONS 46 Section 22.1 - Consideration by Board of Directors 46 22.2 - Consideration by the Members 46 ARTICLE 23 - RESTRICTION OF IMPOSITION OF MONETARY 47 PENALTIES BY THE ASSOCIATION Section 23.1 - Assessments which May Not Become 47 a Lien 23.2 - Assessments which May Become 47 a Lien ARTICLE 24 - MISCELLANEOUS 47 Section 24.1 - Headings 47 24.2 - Applicability of Corporations Code 48 - vi- DECLARATION OF ESTABLISHMENT OF COVENANTS, CONDITIONS, AND RESTRICTIONS OF LOT 50 - SHELTER COVE CONDOMINIUMS THIS DECLARATION is made this day of , 1987, by PETER GRAY and ELLEN GRAY, husband and wife, hereinafter referred to as "Declarant", with reference to the following facts: WHEREAS, on or about the date of recordation of this Declaration, in the Office of the County Recorder of San Diego County, State of California, Declarant owns that certain real property described in Exhibit "A", attached hereto and made a part hereof (the "Property"). The Property with any Association Property which may be acquired by the Association for the common use and enjoyment of its Members shall hereafter be referred to as the "Property". WHEREAS, it is the desire and intention of the Declarant together with the Association to create upon the Property a condominium project in accordance with Section 1351(f) of the California Civil Code, or any successor statute thereof (the "Project"), consisting of two (2) Condominiums to be conveyed and/or leased to various individuals subject to certain basic protective restrictions, limitations, easements, covenants, reservations, liens and charges as hereinafter set forth. THEREFORE, pursuant to the provisions of Title 6, Part IV, of Division 2 of the California Civil Code and Section 1468 of the California Civil Code, Declarant hereby declares that the Property shall be held, conveyed, divided, encumbered, hypothecated, leased, rented, used, occupied and improved only upon and subject to the following uniform covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges, and equitable servitudes, all of which are hereby declared, established, expressed and agreed: (1) to be in furtherance of a plan for the subdivision and sale or lease of Condominiums in the Project as defined in Section 1351(f) of the California Civil Code; (2) to be for the benefit and protection of the Project, its desirability, value and attractiveness; (3) to be for the benefit of the Owners in the Project; (4) to run with the land and be binding upon all parties having or acquiring any right, title or interest in the Project or any portion thereof; (5) to inure to the benefit of every portion of the Project and any interest therein; and (6) to inure to the benefit of and be binding upon each successor and assignee in interest of each Owner and of Declarant. Any conveyance, transfer, sale, assignment, lease or sublease made by -1- each current or future Owner, Declarant or by the Association (ashereinafter defined) of a Condominium in the Project will and hereby is deemed to incorporate by reference the provisions of this Declaration, including, but not limited to, covenants, conditions, restrictions, limitations, grants of easements, rights-of-way, rights, liens, charges and equitable servitudes contained herein. The Association or any Owner shall have a right of action against any Owner, and any Owner shall have a right of action against the Association to enforce by proceedings at law or in equity all restrictions, conditions, covenants and reservations now or hereafter imposed by the provisions of this Declaration or any of the other Condominium Documents, except that only the Association shall have a right of enforcement with respect to Assessment liens. ARTICLE 1 DEFINITION OF TERMS Whenever used in this Declaration, the following terms shall mean: 1.1 "Articles" shall mean and refer to the Articles of Incorporation or Association of the Association as amended from time to time. 1.2 "Assessment" shall mean those charges levied by the Board pursuant to the provisions of the Condominium Documents for Regular Assessments, Special Assessments and Reconstruction Assessments as hereinafter defined. 1.3 "Association" shall mean the Lot - 50 Shelter Cove Condominium Association, an unincorporated association, for the purpose of managing the Property. Each Owner shall become a Member of the Association contemporaneously with the acquisition of his or her Condominium, without further documentation of any kind. 1.4 "Association Property" shall mean all real property and the improvements thereon owned in fee, by easement, or leased from time to time by the Association for the common use and enjoyment of the Owners. The Association Property shall specifically not include Condominiums that may be owned by the Association for sale or lease to the public. 1.5 "Board" or "Board of Directors" shall mean and refer to the governing body of the Association. 1.6 "By-Laws" shall mean and refer to the By-Laws of the Association as amended from time to time. -2- cIe)) 1.7 "Common Area" shall mean the entire Project, excepting all Units, specifically including without limitation below ten (10) feet below the slab elevation of the structure built within the land the Units and the air space beginning thirty-eight (38) feet above the slab elevation of the structures built within the Units. 1.8 "Common Expense" shall mean and include the actual and estimated expenses of maintaining, managing, repairing and operating the Common Area and any reasonable reserve for such purposes as found and determined by the Board, management and administration of the Association, management services, taxes, insurance and fidelity bonds maintained by the Association, security systems or services, including without limitation the personnel or staff required for costs of water, propane and trash collection provided to the Association and the Owners to the extent not billed to the Owners, or any other expenses in connection with the Common Area, the Association or as designated as such in any of the Condominium Documents. 1.9 "Common Interest" shall mean the equal undivided interest in and to the Common Area which is appurtenant to each Unit as set forth in this Declaration. 1.10 "Condominium" shall mean a condominium as defined in Sections 783 and 1351(f) of the Civil Code, consisting of an undivided interest as a tenant in common in the Common Area of the Project, coupled with a separate interest in space called a Unit, the boundaries of which are described in the Condominium Plan. The ownership of each Condominium shall include the ownership of a Unit and an undivided interest in the Common Area and membership in the Association. 1.11 "Condominium Documents" shall mean this Declaration, as amended from time to time, the Exhibits, if any, attached hereto, together with the other basic documents used to create and govern the Project, including the Map, the Articles, the By-Laws, and the Condominium Plan, but excluding unrecorded rules and regulations adopted by the Board or the Association. 1.12 "Condominium Plan" shall mean and refer to the recorded plan of the Units on the Project which identifies each Unit and shows its dimensions pursuant to Civil Code Section 1351. 1.13 "Declarant" shall mean and refer to PETER GRAY and ELLEN GRAY, husband and wife, their successors and assigns. 1.14 "Declaration" shall mean and refer to this enabling Declaration, as amended or supplemented from time to time. -3- 1.15 "Eligible Mortgage Holder" shall mean a First Lender who has provided to the Board a written request to receive notification of and the right to vote or approve any proposedamendment or action that requires the consent of a percentage of Eligible Mortgage Holders. Wherever the vote or written approval of Eligible Mortgage Holders is required, it shall be deemed to mean such vote or approval of the percentage specified based on one vote for each Condominium encumbered by First Mortgage. To the extent that Declarants PETER GRAY and ELLEN GRAY, husband and wife, are First Mortgagees, they shall deemed to have made such written request and to be Eligible Mortgage Holders. 1.16 "Eligible Requesting Mortgagee, Insurer or Guarantor" shall mean a Mortgagee or an insurer or guarantor of a Mortgage who has requested notice of certain matters from the Association. 1.17 "First Lender", "First Mortgagee" or "First Mortgage Holder" shall mean a Person, entity, bank, savings and loan association, insurance company, or financial institution holding a recorded First Mortgage on any Condominium. 1.18 "First Mortgage" shall mean and refer to a Mortgage which has priority over all other Mortgages encumbering a Condominium. 1.19 "Member" shall mean and refer to a Person entitled to Membership in the Association as provided herein. 1.20 "Mortgage" shall include a deed of trust as well as a mortgage. 1.21 "Mortgagee" shall include a beneficiary or a holder of a deed of trust as well as a mortgagee. 1.22 "Mortgagor" shall include the trustor of a deed of trust as well as a mortgagor. 1.23 "Owner" or "Owners" shall mean and refer to the record holder or holders of title, if more than one, of a Condominium in the Project. This shall include any Person having a fee simple title to any Condominium, including contract sellers, but shall exclude Persons or entities having any interest merely as security for the performance of an obligation. The term "Owner" or "Owners" shall include Declarant and Association if they own any Condominiums. 1.24 "Person" shall mean a natural person, a corporation, a partnership, a trustee, or other legal entity. a be -4- _0 1.25 "Project" shall mean and refer to a Condominium project as defined in Section 1351(f) of the California Civil Code, or any successor statute thereof, upon the Property. 1.26 "Reciprocal Easement" shall mean those easements shown on the condominium plan as "Reciprocal Lagoon Access Easement" and "Reciprocal Guest Parking Easement", the extent of which easements is set forth in Section 2.6 herein. 1.27 "Share" shall mean a one-half (1/2) undivided interest, as tenant in common in and to the Common Area. 1.28 "Unit", which is synonymous with Residential Unit, shall mean and refer to the separate interest in space as defined in Section 1351(f) of the California Civil Code, or any successor statute thereof, in the Project with the upper and lower horizontal boundaries being planes above and below the surface of the land as shown on the Condominium Plan as a Residential unit. 1.29 "Unit Designation" shall mean the number, letter, or combination thereof, or other official designation(s) of a Unit shown on the Condominium Plan. Each Unit is identified by separate designation on the Condominium Plan, as unit followed by a number. 1.30 Singular and Plural: The singular and plural number, and the masculine, feminine and neuter gender, and capitalized and lower case shall each include the other where the context requires. ARTICLE 2 DESCRIPTION OF LAND AND IMPROVEMENTS 2.1 Condominium Plan Best Authority. The following description is intended for information purposes only, and in the event of any conflict between this description and the Condominium Plan, said Plan shall be deemed to conclusively control. 2.2 Property Description. The Property consists of that certain real property located in the County of San Diego, State of California, and as more particularly described in Exhibit "A" hereto. 2.3 Property Boundaries. The Property has within its boundaries various Units and Common Area, as shown and described on the Condominium Plan. 2.4 Description of Individual Condominium. Each Condominium within the Project shall consist of a fee simple -5- interest in and to a particular Unit, together with an undivided interest as a tenant in common in and to the Common Area. The Units and Common Area interests are as follows: 2.4.1 Units. Each of the Units, as separately shown, numbered and designated in the Condominium Plan consists of the ground and air space as designated in said Condominium Plan. Each Unit includes all physical improvements, strutures and utility lines and installations located within its boundaries that the Owner has exclusive use of, including, without limitation: landscaping, the residential building, garage and any associated outbuildings. 2.4.2 Condominium. Each Owner shall have a one-half (1/2) undivided interest as a tenant in common in the Common Area together with a separate interest in space called a Unit, the boundaries of which are described on the Condominium Plan in sufficient detail to locate all boundaries thereof. Each Owner may use the Common Area in accordance with the purposes for which they are intended without hindering the exercise of or encroaching upon the rights of any other Owners. 2.5 Owners' Easements and Rights of Enjoyment. Every Owner shall have an easement and a right of enjoyment in and to the Common Area which shall be subject to the following provisions: 2.5.1 The right of the Association to suspend the voting rights for any period during which any Assessment against his Unit remains unpaid, and for a period as set forth in the By-Laws for any infraction of its published rules and regulations after a hearing by the Board of Directors of the Association. 2.5.2 The right to impose a monetary penalty upon an Owner for punitive damages and/or to reimburse the Association for costs incurred by them to repair any damage to Common Areas or facilities as a result of or condition caused by violation of any of the limitations, restrictions, conditions and covenants. This right shall be in addition to charges and other reasonable late payment penalties imposed against an Owner because of delinquent Assessments and/or charges to reimburse the Association for loss of interest and for costs reasonably incurred (including attorney fees) in its efforts to collect delinquent Assessments and/or any other payment due. 2.6 Easements. 2.6.1 Each owner shall have a reciprocal easement for use of these areas designated on a reciprocal guest parking easement, and reciprocal lagoon access easement on the Condominium plan which easements shall be appurtenant to Units 1 and 2. 2.6.2 The owner of Unit 2 shall have easements designated on the condominium plan as "Electrical Meter Access Easement for Unit 2" and "Jacuzzi Equipment, Fence & Landscape Easement for Unit 2", which easement shall be appurtenant to Unit 2. ARTICLE 3 OWNERS' ASSOCIATION 3.1 Creation of Association. Each Owner, including Declarant to the extent that Declarant is an Owner, shall automatically be a Member of the Association. Ownership of a Condominium within the Project shall be the sole qualification for Membership in the Association. 3.2 Transfer of Membership. The Association Membership of each Owner (including Declarant) shall be appurtenant to the Condominium giving rise to such Membership, and shall not beassigned, transferred, pledged, conveyed or alienated in any way, except upon the transfer of title to said Condominium and then only to the transferee of title to said Condominium. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Condominium shall operate automatically to transfer Membership in the Association appurtenant thereto to the new Owner thereof. 3.3 Control and Maintenance of Common Area and Other Areas. The Association, through its Board, shall have the obligation to maintain, manage, operate, control, repair, replace and restore the necessary improvements on or upon the Common Area or upon the Association Property pursuant to the provisions of the Condominium Documents and the provisions of any document transferring any easement or obligation to the Association. In the event the Board shall determine that any portion of the Property required to be maintained by the Association has been damaged or destroyed by any negligent or malicious act or omission of any Owner, his guests, tenants, servants, agents or invitees, such Owner shall be responsible for repairing such damage in a timely manner. In the event any such Owner fails to accomplish any such repair, then after thirty (30) days' notice to such Owner and a public hearing in accordance with the provisions for public hearings contained elsewhere in the Condominium Documents, the Association shall make such repairs or replacements and the cost thereof shall be levied to such Owner as a Special Assessment. Each Owner shall maintain, repair, replace and restore in a clean, sanitary and attractive condition all portions of all of the improvements within his Unit. The Association shall have the responsibility to manage and maintain or cause to be maintained all of the Common Area in a state of -7- high quality so as to keep the whole Project in a first-class condition and in a good state of repair. ARTICLE 4 MANAGEMENT OF OWNERS' ASSOCIATION 4.1 Creation of Board of Directors. The Members of the Association shall hold an organizational meeting of the Association within forty-five (45) days after the close of the sale of the first Condominium which represents the fifty-first (51st) percentile interest to be sold, but in no event shall the meeting be held later than six (6) months after the closing of the sale of the first Condominium, at which time a Board of Directors shall be elected by vote of Members of the Association. All positions on the Board of Directors shall be filled at that election. Prior to the organizational meeting, the initial Board named by the incorporator of the Association shall manage the affairs of the Association. 4.2 Annual Meetings. Annual meetings of Owners shall be held on the same day of the same month of each year after the organizational meeting or as provided in the By-Laws. At the organizational meeting, the Owners shall elect a Board of Directors pursuant to the By-Laws. 4.3 Owner Voting Rights. Each Condominium, regardless of the number of Owners thereof, shall be represented in the Association by only one (1) vote as provided in the By-Laws. 4.4 Voting Rights. 4.4.1 Members' Right to Vote. Only memberships shall have voting rights. 4.4.2 Voting. With the exception of Article 22, no regulation which requires the approval of a prescribed majority of the voting power of members of the Association other than the subdivider for action to be taken by the Association is intended to preclude the subdivider from casting votes attributable to subdivision interest which he or she owns. Other than Article 22, any action which requires the approval of a prescribed majority of the voting power of members of the Association other than the subdividers require (the vote or written assent of a bare majority of the total voting power of the Association, as well as the vote or written assent of a bare majority of the total voting power of members other than the subdivider). 4.5 Election of Board of Directors. A new Board shall be elected pursuant to the By-Laws. : 0 4.6 Meetings. The Board shall meet as provided in the By-Laws. 4.7 Voting Proxies. Voting may be carried out either in person or by proxy. 4.8 Quorum. A quorum for transaction of business at a meeting of Association Members shall be as provided in the By-Laws. 4.9 Written Notice of Meetings and Special Meetings. A special meeting of the Members of the Association shall be promptly called by the Board upon: (1) the vote for such a meeting by a majority of a quorum of the Board; or (2) receipt of a written request for a special meeting signed by Members representing at least five percent (5%) of the total voting power of the Association. Written notice of each meeting of Members shall be given as provided in the By-Laws. 4.10 Indemnification for Performance of Duties. The Association shall indemnify any present or former director, officer, employee or other agent of the Association to the fullest extent authorized under California Corporations Code Section 7237, or any successor statute, and may advance to any such person funds to pay expenses that may be incurred in defending any action or proceeding on receipt of an undertaking by or on behalf of such person to repay such amount, unless it is ultimately determined that such person was not entitled to indemnification under this section. 4.11 Action by Written Consent. The Board may take actions without a meeting as provided in the By-Laws. ARTICLE 5 DUTIES AND POWERS OF (NERS' ASSOCIATION 5.1 Administration of Project. The Owners, and each of them, together with all parties bound by this Declaration, covenant and agree that the administration of the Project shall be in accordance with the provisions of this Declaration, 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 By-Laws, or said rules and regulations, the provisions of this Declaration shall prevail. 5.2 Authority of Board and Incorporator. Prior to the organizational meeting and thereafter, until their successors are elected, the initial Board or its duly appointed successors shall S 0) manage the affairs of the Association. The Board as constituted, from time to time, shall at all times be responsible 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 by the By-Laws, except for action or activity expressly set forth herein or in the By-Laws, or the California Corporations Code, as requiring the vote or assent of 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: 5.2.1 To enforce the applicable provisions of the Condominium Documents and other instruments for the management and control of the Project. Subject to the provisions of the Condominium Documents, the Board shall have the right to adopt reasonable rules and to amend the same from time to time, relating, without limitation, to the use, management and control of the Common Area and reciprocal easements, and any recreational and other facilities situated thereon, by Owners and their tenants or guests, and conduct of such Persons with respect to automobile parking, outside storage of boats, trailers, bicycles and other objects, disposal of waste materials, drying of laundry, control of pets and other activities, which, if not so regulated, might detract from the appearance of the Project or offend or cause inconvenience or danger to Persons residing or visiting therein. Such rules may provide that Special Assessments may be levied against the Owner whose occupants leave property on the Common Area in violation of the rules. The Board may provide in such rules for reasonable rental and cleanup charges to be made with respect to the use of any storage areas or facilities which may exist upon the Common Area or Reciprocal Easements, provided that such charge shall in no way impose liability upon the Board or any of its members for damage or loss to property so stored, it being intended that the use of any such storage area or facility be solely at the risk of the Person using the same. A copy of such rules and all amendments thereto shall be mailed to each Owner and a copy shall be posted in one or more places on the Common Area or Reciprocal Easements where the same may be conveniently inspected; 5.2.2 To pay taxes and Assessments which are or could become a lien on the Common Area or some portion thereof; 5.2.3 To delegate its powers to committees, officers, or employees including without limitation professional managers; 5.2.4 To contract for materials and/or services for the Common Area, Reciprocal Easements or the Association with the term of any service contract limited to a duration of one year, -10- except with approval of: (l) a majority of the total voting power of the Association; and (2) a majority of the votes of Members other than Declarant. The limitation of this Section 5.2.4 shall not apply to exceptions provided in the By-Laws; 5.2.5 To maintain the Common Area, Reicpirocal Easement, all improvements thereon and all utilities thereunder, except those maintained by public utility companies, in good, clean, attractive and sanitary order and repair and to perform its obligations under Section 3.3 of this Declaration; 5.2.6 To operate all recreational equipment and facilities located within the Common Area and Reciprocal Easements; 5.2.7 To repaint surfaces of all buildings situated on the Common Area and Reciprocal Easements, as such repainting is required in order to preserve the attractiveness of the Project; 5.2.8 To maintain, repair, replace, restore, operate and manage all of the Common Area, Reciprocal Easements, and all facilities, improvements, buildings, furnishings, equipment and landscaping thereon, and all existing or future easements for road or other purposes and other property that is owned by the Association. Maintenance shall include (without limitation): Painting, maintaining, cleaning, repairing and replacing of all facilities. The Association, through its Board, shall have the obligation to maintain, manage, operate, control, repair, replace and restore the necessary improvements on or upon the Common Area or upon the Association Property pursuant to the provisions of the Condominium Documents and the provisions of any document transferring any easement or obligation to the Association; 5.2.9 In the event the Board shall determine that any portion of the Property required to be maintained by the Association has been damaged or destroyed by any negligent or malicious act or omission of any Owner, his guests, tenants, servants, agents or invitees, such Owner shall be responsible for repairing such damage in a timely manner. In the event any such Owner fails to accomplish any such repair, then after thirty (30) days' notice to such Owner and a public hearing in accordance with the provisions for public hearings contained elsewhere in the Condominium Documents, the Association shall make such repairs or replacements and the cost thereof shall be levied to such Owner as a Special Assessment. Each Owner shall maintain, repair, replace and restore in a clean, sanitary and attractive condition all portions of all of the improvements within his Unit. If an Owner shall fail to make repairs or replacements to his Unit which are the responsibility of such Owner, as provided in the rules and regulations, By-Laws or this Declaration, then after thirty (30) days' notice to the Owner and a public hearing, the Association shall enter the Unit (if necessary) and make such -11- repairs or replacements, and the cost thereof shall be levied to such Owner as a Special Assessment; 5.2.10 To pay premiums, taxes and other Assessments against the Common Area; 5.2.11 To meet the costs of any liability insurance and fire insurance of the Common Area, Reciprocal Easements, fidelity bonds, Board of Director errors and omissions insurance, out-of-pocket expenses of the Board relating to the operation of the Association, legal and accounting fees and, including without limitation, fees of any manager and a reasonable reserve for contingencies with respect to the Common Area, and Reciprocal Easements. 5.2.12 To contract for fire, casualty, liability and other insurance on behalf of the Association; 5.2.12.1 The liability insurance policy shall insure the Association, the Declarant for as long as Declarant is an Owner, and the agents and employees of each, and the Owners and the respective family members, guests and invitees of the Owners against any liability incident to the ownership or use of the Common Area, Reciprocal Easements and Association Property or any other areas under the supervision of the Association. The limits of the insurance shall be not less than One Million Dollars ($1,000,000.00) for claims arising out of a single occurrence for bodily injury, deaths of persons and property damage; 5.2.12.2 The Board shall carry fire insurance with extended coverage endorsement or other form of coverage providing protection equal to or greater than the amount of the full insurable replacement value (as determined by appraisal or such other method as shall be deemed appropriate by the Board and be acceptable to the insurance carrier and reviewed at least annually) of all insurable improvements (including furnishings and equipment related thereto) situated upon the Property. Such insurance shall be payable to the Board. In the event of damage to or destruction of any such improvement, the Board shall cause the same to be repaired, rebuilt or replaced. In the event the cost of such repair, rebuilding or replacement exceeds the insurance proceeds payable by reason of said damage or destruction, Reconstruction Assessments shall be levied in accordance with the provisions of Articles 6 and 10. In the event the amount of such insurance proceeds for damage to improvements on the Common Area exceeds the cost of such repair, rebuilding or replacement, the surplus shall be retained by the Association and shall be taken into consideration in determining the amount of the Regular Assessment for the next budget period; -12- Q9 5.2.12.3 Further, the Board shall carry a blanket policy or policies of casualty insurance with a special form all-risk cover coverage endorsement for the full insurable replacement cost, from time to time, of the insurable improvements on the Common Area and Reciprocal Easements (or such other blanket fire and casualty insurance giving substantially equal or greater protection) insuring the Association, for the use and benefit of the Owners, designated by name. The loss-payable clause shall be in favor of the Association for each Owner and each such Owner's Mortgagees, if any. Such policy shall contain provisions, to the extent possible, protecting against any reduction in the amount of the proceeds payable, as a result of any fire or similar insurance independently carried by any Owner of or in respect of such Owner's interest in and to the Common Area or Reciprocal Easements. 5.2.12.4 The Board shall have authority to obtain such errors and omissions insurance or other insurance as it deems advisable, insuring the Board and each Member thereof against any liability for any act or omission in carrying out their obligations hereunder, or resulting from their membership on the Board, or any committee thereof; 5.2.12.5 The premiums for insurance purchased pursuant to the foregoing shall be a Common Expense of the Association; 5.2.12.6 If any additional insurance is required due to extra hazardous use made of any Unit or because of improvements to any Unit installed by its Owner, which increases the premiums for the required amount of coverage, the costs thereof shall be assessed to the Owner of such Unit as a Special Assessment; 5.2.12.7 It is the express obligation of each of the Owners of such Units to purchase such fire and casualty insurance as he may deem advisable for his own account and at his own expense to cover improvements within his Unit not insured by the Association, except that the carrying of any insurance individually by any Owner shall not relieve him of the obligation to pay such portion of Regular Assessments as may be made, from time to time, for the purpose of paying premiums or other charges on fire and casualty insurance carried or contracted for by the Board, for the benefit of the entire Project. No such insurance coverage or the terms of any such insurance policy shall defeat or contravene the purposes and intent of Article 10 (Destruction of Improvements) hereof; 5.2.12.8 Additionally, the Board may purchase and carry flood hazard insurance and earthquake insurance in the maximum amount available, in the event the area in which the Project is located is designated by the Office of Housing and -13- Urban Development as an area having special flood or earthquake hazards; 5.2.12.9 All insurance policies purchased by the Board for the mutual benefit of all Owners shall contain a provision that each Owner will receive a notice from the insurance company that said policy is in effect and that each Owner will receive ten (10) days' notice prior to cancellation or termination of said policy for any reason whatsoever; 5.2.13 To enter upon any privately owned Unit where necessary in connection with construction, maintenance or repair for the benefit of the Common Area or the Owners; 5.2.14 To send to each Member of the Association written notice of regular and special meetings. Except for special meetings called at the request of five percent (5%) of the voting power of the Owners, the same notice as for regular meetings shall be provided. The notice shall specify the place, day and hour of the meeting and, in the case of a special meeting, the nature of the business to be undertaken; 5.2.15 The following financial statements and related information for the Association shall be regularly prepared and distributed to all Members as follows: 5.2,15.1 A pro forma operating budget for each fiscal year shall be distributed not less than forty-five (45) days or more than sixty (60) days prior to the beginning of the fiscal year. Each such budget shall include all of the following: 5.2.15.1.1 The estimated revenue and expenses on an accrual basis. The identification of the total cash reserves currently set aside for replacement or major repair of common facilities and for contingencies. 5.2.15.1.2 An itemized estimate of the remaining life of, and the methods of funding used to defray the future repair, replacement, or additions to, those major components of the Common facilities and areas which the Association is obligated to maintain. 5.2.15.1.3 A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components of the Common Area and areas that the Association is obligated to maintain. 5.2.15.2 A balance sheet, as of an accounting date which is the last day of the month closest in time to six (6) months from the date of closing of the first sale of a -14- Condominium, and an operating statement for the period from the date of such first closing to the said accounting date, within sixty (60) days after such accounting date. This operating statement shall include a schedule of Assessments received and receivable itemized for each Condominium and identified by the number of the Condominium and the name of the entity assessed. 5.2.15.3 An annual report consisting of the following shall be distributed within one hundred twenty (120) days of the close of the fiscal year: 5.2.15.3.1 A balance sheet as of the end of the fiscal year; 5.2.15.3.2 An income statement for the fiscal year; 5.2.15.3.3 A statement of changes in financial position for the fiscal year; 5.2.15.3.4 Any information required to be reported under Section 8322 of the Corporations Code as currently enacted or subsequently amended. 5.2.15.3.5 A statement of the place where the names and addresses of the current Members can be found. In the event the gross income to the Association exceeds Seventy-Five Thousand Dollars ($75,000.00) in any fiscal year, the review of the above-noted annual report shall be prepared in accordance with generally accepted accounting principles by a licensee of the California State Board of Accountancy. If such annual report is not prepared by an independent accountant, it shall be accompanied by the certificate of an authorized officer of the Association stating that the statements were prepared without audit from the books and records of the Association. 5.2.15.4 A statement describing the Association's policies and practices in enforcing lien rights or the legal remedies for default in payment of its Assessments against its Members shall be distributed annually during the sixty (60) day period immediately preceding the beginning of the Association's fiscal year. 5.2.16 To establish and collect Regular Assessments to cover the Common Expenses; 5.2.17 To establish and collect Special Assessments for capital improvements or other purposes in accordance with the Condominium Documents to all Owners on the same basis as the allocation prescribed for Regular Assessments; -15- a 5.2.18 To file liens against Owners for non-payment of Assessments duly levied and to foreclose said liens; 5.2.19 To receive complaints concerning violations of the Restrictions, By-Laws and/or other instruments for management and control of the Association; to hold public or private hearings to determine whether or not to discipline Members of the Association who violate said documents or instruments; to suspend use privileges and voting rights of Members who violate said documents or instruments after a hearing on the alleged violation has been held pursuant to the provisions of the By-Laws; 5.2.20 To acquire and hold for the benefit of the Owners tangible and intangible Personal property and to dispose of same by sale or otherwise; 5.2.21 To bond any members of the Board or any Person who participates in management of the affairs of the Association; 5.2.22 Except as provided to the contrary in the Condominium Documents, any agreement for professional management and any other contract providing for services of the Declarant, developer, sponsor or builder shall not exceed three (3) years in duration and shall be terminable (a) for cause on not -more than thirty (30) days' written notice by the Association, and (b) without cause upon ninety (90) days' written notice to either party without payment of a termination fee. 5.2.23 The Board shall carry worker's compensation insurance covering all Persons employed by it in performance of its responsibilities under this Declaration and shall obtain fidelity bonds to cover the maximum funds that will be in the custody of the Association or its management agent at any time while the bond is in force and should be written in an amount equal to not less than three (3) months' aggregate of the Regular Assessments on all Condominiums. 5.2.24 With respect to each contract made by the Board for work and/or materials related to the maintenance, repair rebuilding or replacement of any building, structure or other improvement situated upon the Common Area or Reciprocal Easements in which the amount to be paid by the Board exceeds Five Thousand Dollars ($5,000.00), the Board shall secure at least three bids from responsible contractors and shall accept the lowest bid so obtained unless the Board determines that there is good cause to accept a higher bid. If the amount of the contract exceeds the sum of One Thousand -Dollars ($1,000.00) the Board shall require the contractor to furnish a completion bond assuring completion of the work and payment of all labor and materials bills for which a lien on the Common Area or Reciprocal Easement or any Condominium would be claimed. The Board shall require from each contractor which it engages satisfactory evidence that adequate -16- worker's compensation and liability insurance is carried with respect to the employees and activities of such contractor. In cases where a completion bond is not required, the Board shall require labor and material releases to be furnished by the contractor prior to making payment to same, unless the Board deems such requirements to be impractical or unnecessary to afford protection against liens. 5.2.25 The Board may not without the vote or written assent of: (a) a majority of the total voting power of the Association, and (b) a majority of the votes of members other than Declarant: 5.2.25.1 Incur aggregate expenditures for capital improvements to the Common Area or Reciprocal Easements in any fiscal year in excess of five percent (5%) of the Common Expenses of the Association for that fiscal year; 5.2.25.2 Sell during any fiscal year property of the Association having an aggregate fair market value greater than five percent (5%) of the Common Expenses of the Association for that fiscal year 5.2.25.3 Pay compensation to members of the Board or to officers of the Association for services performed in the conduct of the Association's business; provided, however, that the Board may cause a member of the Board or officer to be reimbursed for expenses incurred in carrying on the business of the Association; 5.2.25.4 Enter into a contract with a third person where the third person will furnish goods or services for the Common Area, Association Property or the Association for a term longer than one (1) year except as otherwise expressly permitted in the Condominium Documents. 5.2.26 The Association shall have the authority to obtain, for the benefit of all of the Condominiums, all water, gas and electric service and refuse collection, and cable television. 5.2.27 The Association shall have authority by document signed or approved by three-fourths (3/4) of the total voting power of the Association, including three-fourths (3/4) of the Members other than Declarant, to grant easements in addition to those shown on the Map, where necessary for utilities, cable television, and sewer facilities within the Common Area. 5.2.28 The Association shall have the power to acquire by gift, purchase or otherwise own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, or otherwise dispose of real or personal property in connection with the -17- r0j affairs of the Association subject to the provisions of Section 5.2.25 above. Any transfer of property shall be by document signed or approved by three-fourths (3/4) of the total voting power of the Association which shall include three-fourths (3/4) of the Members other than Declarant. 5.2.29 The Association shall have the power to borrow money, and only with the assent by vote or written consent of three-fourths (3/4) of the total voting power of the Association, including three-fourths (3/4) of the Members other than Declarant, to mortgage, pledge, deed in trust, or hypothecate, any or all of its real or Personal property as security for money borrowed or debts incurred. 5.2.30 The Association shall have the power to dedicate all or any part of the Common Area to any public agency, authority or utility for such purposes, subject to such conditions as may be agreed to by the Members. No such dedication shall be effective unless an instrument has been signed by three-fourths (3/4) of the total voting power of the Association, including three-fourths (3/4) of the Members other than Declarant, agreeing to such dedication. 5.2.31 The Association shall have the power to limit the number of Owners' tenants or guests who may use the Reciprocal Easement facilities, provided that all limitations apply equally to all Owners, unless imposed for disciplinary reasons, after notice of hearing. 5.2.32 The Association shall have the power to levy Special Assessments for punitive or actual damages and costs against Members who violate the By-Laws, this Declaration or the rules and regulations of the Association, after compliance with and subject to the procedures and limitations set forth in this Declaration and in the By-Laws, including without limitation Article 23 of this Declaration. ARTICLE 6 COVENANT FOR MAINTENANCE ASSESSMENTS 6.1 Creation of Lien - Personal Obligation of Assessments. Declarant, for each Unit owned by it within the Project, hereby covenants, and each Owner of any Unit within the Project, by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed or other conveyance, is deemed to covenant and agree to pay to the Association: (a) Regular Assessments; (b) Special Assessments for capital improvements and other purposes as provided in the Condominium Documents; and (c) Reconstruction Assessments. All of the foregoing Assessments shall be fixed, established and collected from time to time, as am hereinafter provided. Subject to Article 23 of this Declaration, the Regular, Special, and Reconstruction Assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a continuing lien upon the Condominium against which each such Assessment is made, which lien shall be created and enforced in accordance with the provisions of this Article 6. Each such Assessment (and all other Assessments levied in accordance with this Declaration), together with late charges, interest, costs, penalties and reasonable attorneys' fees, as provided for herein, shall also be the joint and several personal obligations of each Person who was an Owner of such Condominium at the time the Assessment fell due. 6.2 Basic Maximum Amount of Regular Assessment. 6.2.1 Initial Regular Assessment. A Regular Assessment shall be levied against each Owner for such Owner's proportionate share of the estimated Common Expenses for the forthcoming fiscal year, which Regular Assessments shall be paid in monthly installments as established by the Board. 6.2.2 Increase of Regular Assessment by Board. The Board may not, without the vote or written assent of a majority of the voting power of the Association residing in Members other than Declarant, impose a Regular Assessment per Condominium which is more than twenty percent (20%) greater than the Regular Assessment for the immediately preceding fiscal year. In addition, such Assessments are also subject to the provisions of Civil Code Section 1366 (and successor statutes) as applicable, which currently provides that a Regular Assessment that is more than ten percent (10%) greater than the Regular Assessment for the Association's preceding fiscal year cannot be imposed without approval of Owners casting a majority of votes at a meeting or election of the Association conducted in compliance with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code, unless the Assessment increase is for one of the following purposes: 6.2.2.1 The maintenance or repair of the Common Area or other areas which the Association is obligated to maintain or repair including, but not limited to, the payment of insurance premiums, the payment of utility bills, the costs incurred in the maintaining or repairing structures or improvements, and funding reserves. 6.2.2.2 Addressing emergency situations. 6.2.3 Certificate of Payment. The Association shall, upon demand, furnish to any Owner liable for Assessments a certificate in writing signed by two (2) officers of the Association, setting forth whether the Assessments on a specified -19- 0 Condominium have been paid and the amount of delinquency, if any. A reasonable charge per certificate may be made by the Board for issuance of said certificates. Such certificates shall be conclusive evidence of payment of any Assessment therein stated to have been paid. 6.3 Special Assessments for Capital Improvements and Emergency Needs. In any fiscal year, the Board may not, without the vote or written assent of a majority of the voting power of the Association residing in Members other than Declarant, levy Special Assessments to defray the costs of any action or undertaking on behalf of the Association which in the aggregate exceed five percent (5%) of the budgeted gross expenses of the Association for that fiscal year. 6.3.1 Increase of Special Assessments by Board. In addition, such Assessments are also subject to the provisions of Civil Code Section 1366 (and successor statutes), as applicable, which currently provides that Special Assessments which in the aggregate exceed five percent (5%) of the budgeted gross expenses of the Association for that fiscal year cannot be imposed without the approval of Owners casting a majority of the votes at a meeting or election of the Association conducted in accordance with the statutes described in Section 6.2.2 above, unless such increase is for one of the following purposes: 6.3.1.1 The maintenance or repair of the Common Area or other areas which the Association is obligated to maintain or repair, including, but not limited to, the payment of insurance premiums, the payment of utility bills, the costs incurred in maintaining or repairing structures or improvement, and funding reserves. 6.3.1.2 Addressing emergency situations. The provisions herein with respect to Special Assessments do not apply in the case where the Special Assessment against a Member is a remedy utilized by the Board to reimburse the Association for penalties or for costs incurred in bringing the Member and his subdivision interest into compliance with the provisions of this Declaration. Special Assessments levied against all Owners shall be levied upon the same basis as prescribed for levying Regular Assessments. 6.4 Date of Co Assessments provided Condominiums covered Declarant and/or the following conveyance Owner. nmencement of Regular Assessments. Regular for herein shall commence as to all by the Declaration, including those owned by Association, on the first day of the month of the first Condominium to an individual -20- W-N 6.5 Payment of Assessment by Owners. Regular Assessments shall be paid by each Owner, including the Declarant and/or the Association to the extent they are an Owner, in equal monthly installments in advance, on the first day of each month. After Assessments have commenced, such Assessments shall be prorated between the seller and buyer through escrow for the month in which escrow closes. Special Assessments shall be paid within thirty (30) days of receipt of a request to pay same. The voting rights attributable to each Condominium shall not vest until Assessments against those interests have been levied by the Association. 6.6 Maintenance Fund. Assessment charges so collected shall be promptly deposited in a commercial bank account in a bank to be selected by the Board, which account shall be clearly designated in the name of the Association. The Board shall have exclusive control of said account and shall be responsible to the Owners for the maintenance of accurate reports thereof at all times. Assessments collected for reserves, capital improvements, or for the reconstruction of any capital improvements can only be used for the purposes for which such funds were collected. 6.7 Effect of Non-Payment of Assessments - Lien Rights - Remedies of the Association. Subject to Article 23 of this Declaration, the Board shall have authority to create and enforce a lien with power of sale on each separate Condominium to secure payment of the amount of any Assessment, whether Regular, Reconstruction or Special, assessed to the Owner(s) thereof, to the full extent permitted by applicable law, by complying with provisions of Sections 1366 and 1367 of the California Civil Code and other applicable law. An action may be brought to foreclose or exercise the power of sale by the Board only. Reasonable attorneys' fees, expenses in connection with the collection of the debt secured by such lien or foreclosure of lien, and interest charges and late charges not exceeding the amount permitted by Civil Code Section 1366 or successor statutes shall be determined by the Board and paid by the Owner against whom such action is brought and secured by the lien. A certificate, signed and acknowledged, confirming the existence of the indebtedness secured by the lien on any Condominium hereunder, shall be conclusive on the Board and the Owners as to the amount of such indebtedness, on the date of the certificate, as to all Persons who rely thereon in good faith and such certificate shall be furnished to any Owner upon request at a reasonable fee. 6.8 Homestead Waiver. Each Owner, to the extent permitted by law, does hereby waive to the extent of any liens created pursuant to this Article, the benefit of any homestead or exemption law of the State of California in eftect at the time any Assessment becomes delinquent or any lien is imposed, pursuant to the terms hereof. -21- 6.9 Curing of Default. Upon the timely payment or other satisfaction of all delinquent Assessments set forth in the Notice of Assessment filed and recorded in accordance with applicable law, and all other Assessments which have become due and payable with respect to the Condominium as to which such Notice of Assessment was filed and recorded, following the date of such recordation, together with all costs (including reasonable attorney's fees) and all late charges and interest which have accrued thereon, the Board shall cause to be filed and recorded a further notice, stating the satisfaction and release of the lien created by the Notice of Assessment. The Notice may be executed by any officer of the Association or by any authorized representative of the Board. A reasonable fee covering the cost of preparation and recordation of the Notice of Release and Satisfaction shall be paid to the Association prior to execution, filing and recordation of such Notice of Release and satisfaction of the lien created by the Notice of Assessment. For purposes of this paragraph, the term "costs" shall include costs and expenses actually incurred or expended by the Association in connection with the cost of preparation and recordation of the Notice of Assessment and in efforts to collect the delinquent Assessments secured by the lien created by the notice of Assessment, and shall also include a reasonable sum for attorneys' fees actually incurred. 6.10 Priority of Assessment Lien - Subordination of Lien. Any lien created or claimed under the provisions of this Declaration is expressly made subject and subordinate to the lien of any First Mortgage upon a Condominium as provided in Section 14.3 of this Declaration. 6.11 Rights of Board - Waiver of Owners. Each Owner hereby vests in and delegates to the Board, or its duly authorized representatives, the right and power to bring all actions at law or lien foreclosures, whether judicially or by power of sale or otherwise, against any Owner or Owners for the collection of delinquent Assessments in accordance herewith, and hereby expressly waives any objection to the enforcement in accordance with this Declaration of the obligation to pay Assessments as set forth herein. 6.12 Purpose of Assessments. The Assessments levied by the Association shall be used to promote the economic interest, recreation, health, safety, and welfare of all the Owners in the Project and for the improvement and maintenance of the Common Area and Reciprocal Easement for the common good of the Project and for such other purposes deemed to be in the best interests of the Association by the Board. Subject to the limitations contained in the Condominium Documents, including without limitation the requirement to obtain the approval of the membership of the Association for increases in excess of certain stated amounts, Regular Assessments shall be levied for the -22- (9) payment of Common Expenses of the Association. Reconstruction Assessments shall be levied to cover cost of repair and reconstruction of improvements on the Common Area in excess of insurance proceeds available for such purposes, and Special Assessments shall be levied for any other act or undertaking of the Association, including without limitation the cost of any installation, construction, replacement or reconstruction of a capital improvement upon the Common Area or Association Property. 6.13 Unallocated Taxes. In the event that any taxes are assessed against the Common Area or Association Property or the personal property of the Association, rather than against the Units, said taxes shall be included in the Regular Assessments made under the provisions of Article 6 of this Declaration or, if necessary, a Special Assessment may be levied against the Units in any amount equal to said taxes, to be paid in two (2) installments thirty (30) days prior to the due date of each tax installment. 6.14 Exemption from Assessments. All property dedicated to, and accepted by, a local public authority or public agency shall be exempt from the Assessments created herein. However, no Condominium owned by any public authority shall be exempt from said Assessments. ARTICLE 7 USE RESTRICTIONS In addition to all of the covenants contained herein, the use of the Property and each Unit therein is subject to the following: 7.1 Condominium Use. Except as otherwise provided in this Declaration, and except for Association and Declarant, no Condominium shall be occupied and used for other than residential purposes by the Owners, their tenants, and social guests, and no trade or business shall be conducted, except a residential Unit may be used as a combined residence and executive or professional office by the Owner thereof and his tenants to the extent permitted by applicable law, ordinances or current use permit, so long as such use does not interfere with the quiet enjoyment by other Owners. Only permanent residential structures shall be permitted to be placed on a Unit and no tent, shack, trailer, basement, garage, outbuilding, or structure of a temporary character shall be used at any time as a residence, either temporarily or permanently. 7.1.1 Residents shall be limited as follows: -23- e) 7.1.1.1 No more than two (2) Persons per bedroom in any Unit shall be permitted as permanent residents ("permanent" means more than ninety (90) days out of each twelve (12) month period). 7.1.1.2 No Unit or Units or any portion thereof in the Project shall be leased, subleased, occupied, rented, let, sublet, or used for or in connection with any time-sharing agreement, plan, program, or arrangement, including without limitation, any so-called "vacation license", "travel club", "extended vacation", or other Membership or time-interval ownership arrangement. The term "time-sharing" as used herein shall be deemed to include, but shall not be limited to, any agreement, plan, program, or arrangement under which the right to use, occupy, or possess the Unit or Units or any portion thereof in the Project rotates among various Persons, either corporate, partnership, individual, or otherwise, on a periodically recurring basis for value exchanged, whether monetary or like-kind use privileges, according to a fixed or floating interval or period of time of twenty-five (25) consecutive calendar days or less. 7.1.2 All driveways within Units must be maintained by the Owner of the Unit in first class condition. 7.2 Nuisances. No noxious, illegal, or seriously offensive activities shall be carried on upon any Condominium, or in any part of the Property, nor shall anything be done thereon which may be or may become a serious annoyance or a nuisance to or which may in any way interfere with the quiet enjoyment of each of the Owners of his respective Unit, or which shall in any way increase the rate of insurance for the Project, or cause any insurance policy to be cancelled or to cause a refusal to renew. the same, or which will impair the structural integrity of any building. 7.3 Vehicle Restrictions. Parking of golf carts, recreational vehicles, campers, boats, travel trailers, similar equipment, cars and all other vehicles will be permitted in accordance with the rules and regulations as established from time to time by the Board. No electric, water, or other hook-ups will be permitted except as provided in the rules and regulations adopted by the Board. 7.4 Signs. No business sign or advertising may be displayed in the Project without the written permission of the Board of Directors, but this provision does not prohibit or restrict the display upon any Unit of a sign of customary and reasonable dimensions advertising a Condominium for sale nor does it prohibit or restrict any sign of Declarant used in connection with Declarant's sales office maintained in accordance with the provision of Section 8.16 of this Declaration or of any agreement -24- 0~9 between Declarant and the Association. The display of any vehicle or any other article for sale will not be permitted. 7.5 Animals. No poultry or other animal except small household pets may be kept in any Unit. Pets may not be raised, bred, or kept for commercial purposes. Pets must be on a leash at all times when taken outside of the Units. 7.5.1 Notwithstanding the foregoing, no pets may be kept on the Property which are obnoxious or annoying to other Owners. No pets shall be allowed in the Common Area or Reciprocal Easements except as may be permitted by rules of the Board. 7.5.2 After making a reasonable attempt to notify the Owner, the Association or any Owner may cause any unleashed dog found within the Common Area to be removed by the Association (or any Owner) to a pound or animal shelter under the jurisdiction of the County of San Diego by calling the appropriate authorities, whereupon the Owner may, upon payment of all expenses connected therewith, repossess the pet. Owners shall prevent their pet(s) from soiling any portion of the Common Area or Reciprocal Easement and shall promptly clean up any mess left by their pet(s). Owners shall be fully responsible for any damage caused by their pet(s). 7.6 Garbage and Refuse Disposal. All rubbish, trash and garbage shall be regularly removed from the Unit, and shall not be allowed to accumulate thereon. Trash, garbage and other waste shall not be kept except in sanitary containers. All equipment for the storage or disposal or such materials shall be kept in a clean and sanitary condition. All equipment, garbage cans, woodpiles, or storage piles shall be maintained in accordance with the rules and regulations of the Association, as adopted from time to time. 7.7 Radio and Television Antennas. Except if permitted by applicable law, regulations or use permit, no exterior television or radio antenna or tower or cable dish may be erected. No overhead wiring (telephone or electric) or any other wire, rope or cable shall be placed on the Property above the ground nor shall any such wiring, rope or cable be placed below the ground without prior written consent of the Architectural Control Committee. A master antennae system or cable television system may be constructed and maintained by the Association in the Common Area if permitted by applicable law, regulations and use permits. 7.8 Use of Recreational Facilities by Tenants. All Reciprocal Easement recreational facilities are for the use of Owners or their tenants and their respective guests; however, Owners who do not reside within the Project and who have rented -25- (D or leased their Condominium(s) are not permitted to use the recreational facilities. In such cases, said facilities are to be used only by the occupying tenants. Tenants are subject to all the rules and regulations and are responsible for any damage to the Common Area. Owners are also responsible for their tenants' violations of rules and damage to the Common Area. 7.9 Architectural Control. No building, fence, wall, obstruction, outside or exterior wiring, balcony, screen, patio, patio cover, tent, awning, carport, carport cover, improvement or structure of any kind shall be commenced, installed, erected, painted, repainted or maintained upon the Property or any Unit, nor shall any alteration or improvement of any kind be made thereto until the same has been approved in writing by the Board, or by an Architectural Control Committee appointed by the Board. 7.9.1 Plans and specifications showing the nature, kind, shape color, size, materials and location of such improvements, alterations etc., shall be submitted to the Architectural Control Committee for approval as to quality of workmanship and design and harmony of external design with existing structures, and as to location in relation to surrounding structures, topography, and finish grade elevation. 7.9.2 No landscaping of patios or yards visible from the street or from the Common Area (not involving the use of natural plants, grass, trees, or shrubs, and which does involve the use of synthetic materials, or of concrete, rock or similar materials) shall be undertaken by any Owner until plans and specifications showing the nature, kind, shape and location of the materials have been submitted to and approved in writing by the Board or by an Architectural Control Committee appointed by the Board. 7.9.3 The Architectural Control Committee shall consist of two (2) Members appointed by the Board. Members appointed to the Architectural Control Committee by the Board shall be from the membership of the Association. A majority of the Architectural Control Committee may designate a representative to act for it. In the event of death or resignation of any member of the Committee, the successor shall be appointed by the Board. Neither the members of the Committee nor its designated representative shall be entitled to any compensation for services performed pursuant hereto. In the event the Committee fails to approve or disapprove plans and specifications within twenty (20) days after the same have been submitted to it, then the applicant shall submit a request to the Board to act in lieu of the Committee. If the Board fails to act within ten (10) days of such request, approval will not be required and the requirements of this Declaration shall be deemed to have been fully complied with. -26- 7.9.4 The Architectural Control Committee shall adopt guidelines specifying the procedures to be followed for submitting plans for which approval is required (including, without limitation, fees) and standards to be applied in reviewing such plans. 7.10 Power Equipment and Car Maintenance. The use of power equipment, operation of hobby areas and/or performance of car maintenance shall only be permitted on the Property in accordance with the rules and regulations as adopted by the Board from time to time. 7.11 Liability of Owners for Damage to Common Area. Each Owner shall be liable to the Association for all damage to the Common Area or Reciprocal Easements or improvements thereon caused by such Owner or any occupant of his Unit or guest or by such Owner's pet(s). Liability of an Owner shall be established only after notice to the Owner and hearing before the Board. In the event an Owner disagrees with the decision of the Board on the question of liability, the Owner may petition a court of law or submit the matter to arbitration under the rules of the American Arbitration Association. 7.12 Drainage. The ground surfaces within any Unit or part of a Unit in the Project shall not be regraded without the prior consent of the Architectural Control Committee. The Owner will be responsible for the drainage of his Unit. The Unit must not drain onto any other Unit, or to any Common Area except the street or except as presently existing. Units, patios and carport areas must have down-drain gutters extended to the street area to prevent erosion. 7.12.1 The Owner of a Unit shall permit free access by Owners of adjacent Units to slopes or drainageways located on his Unit which affect said adjacent Unit, when such access is essential for the maintenance of permanent stabilization of said slopes, or maintenance of the drainage facilities for the protection and use of property other than the Unit on which the slopes or drainageway is located. 7.12.2 The Owner of any Unit shall not, in any way, interfere with the established drainage pattern over his Unit from adjoining other Units and he will make adequate provision for property drainage in the event it is necessary to change the established drainage over his Unit. For the purpose herein, "established" drainage is defined as the drainage in existence as of the date of recordation of this Declaration. 7.13 Laundry Drying. All drying laundry must be hung in an area designated for that purpose by the Board of Directors. -27- 6n 7.14 Maintenance of Units. All Units, including landscaping and improvements thereon, shall be maintained and kept clean at all times in a manner so as to meet the approval of the Board of Directors. In the event any Unit, including landscaping or improvements thereon, is not maintained and kept clean in such a manner, the Board of Directors shall have the right, either itself or through any other Person, to furnish the labor and/or materials necessary to bring said Unit, including landscaping and/or improvements thereon, up to a standard which meets the approval of the Board of Directors in its sole discretion and to maintain them according to such a standard. In such event, in addition to other penalties and disciplinary measures imposed by the Board of Directors, the Board shall levy a Special Assessment against such Owner in the amount equal to all direct and indirect costs and expenses incurred by the Board of Directors to furnish such labor and/or materials, or have the same furnished; the amount that the Owner of any such Unit is obligated to pay hereunder shall be payable within ten (10) days after the charge is made. Any such charge which is not paid within thirty (30) days of the due date shall be subject to late charges and shall bear interest thereafter at the rate of twelve percent (12%) per annum. This paragraph shall constitute a request by each Owner, under the conditions stated herein, for the Board of Directors to furnish any labor and/or materials which are furnished hereunder. Any claim against the Board of Directors shall not constitute a defense or offset in any action of the Board of Directors for nonpayment of any amounts which may be assessed hereunder. 7.15 Compliance with Law. applicable laws and regulations municipal authorities affecting improvements therein, including ordinances and any applicable u from time to time. Each Owner shall comply with all of governmental agencies and the use of his Unit, and other but not limited to zoning e permits as amended or replaced ARTICLE 8 GENERAL PROVISIONS 8.1 Right of Entry for Emergency Repair. The Board shall have authority to designate one or more qualified repairmen or other Persons to enter upon and within any individual Unit, in the presence of the Owner thereof, or otherwise, for the purpose of making emergency repairs therein or for necessary maintenance or repair to portions of the Common Area; or to abate any nuisance being conducted or maintained in said Unit in order to protect the property rights and best interests of the remaining Owners. : 8.2 Continuing Liability for Assessments. No Owner may exempt himself from liability for his specified contribution to maintenance fund by waiver of the use or enjoyment of the Common Area or by the abandonment of his Condominium. 8.3 No Racial Restrictions. No Owner shall execute or file or record any instrument which imposes a restriction upon the sale, lease or occupancy of his Unit on the basis of race, color, creed, sex, or national origin. 8.4 Books and Records of the Association. The membership register, books of account and minutes of meeting of Members of the Board and of committees of the Board and of the Association shall be made available for inspection and copying by any Member of the Association or by his duly appointed representative, at any reasonable time and for a purpose reasonably related to his interest as a Member, at the office of the Association. The Board shall establish reasonable rules with respect to: (a) notice to be given to the custodian of the records by the Member desiring to make the inspection; (b) the hours and days of the week when such an inspection may be made; and (c) the payment of the cost of reproducing copies of documents requested by a Member. Every Director shall have the absolute right, at any reasonable time, to inspect all books, records and documents of the Association and the physical properties owned or controlled by the Association. The right of inspection by a Director shall include the right to make extracts and copies of documents. 8.5 Taxes. Each Owner shall, before delinquency, pay any real and personal property taxes separately assessed against his respective Condominium and all utility and other charges separately metered or charged against his Condominium, and such payment shall be made by each Owner in addition to and separately from Assessments otherwise payable to the Association by each such Owner. 8.6 Enforcement of Declaration and By-Laws. The Owners or any one of them, or the Board acting on behalf of the Owners, shall be entitled to bring legal action for damages against any Owner who shall default in the performance of any of the provisions of this Declaration, the By-Laws or rules and regulations promulgated by the Board for the protection of the Project; provided, however, that only the Board may bring legal action to enforce Assessment liens. Further, said Persons shall be entitled to enjoin any violation of said documents, rules and regulations and shall further be entitled to prosecute any other legal or equitable action that may be necessary to protect the Project. If any Owner, Member of the Board or the Board shall deem it necessary to initiate any legal or equitable action for the protection of the Project against any Owner, and they shall be the prevailing party in said action, then said Persons shall be entitled to reasonable attorneys' fees and costs of said -29- 0 action from said Owner for expenses incurred in bringing or initiating said action; any judgment rendered against any such defaulting Owner shall include costs of said action, together with reasonable attorneys' fees in an amount to be fixed by the court. Notwithstanding the foregoing, the Association is not empowered to cause a forfeiture or abridgment of any Owner's right to the full use and enjoyment of his Unit on account of the failure by the Owner to comply with provisions of the Condominium Documents or the rules and regulations adopted by the Board except by judgment of a court or a decision arising out of arbitration or on account of a foreclosure or sale under a power of sale for failure of the Owner to pay Assessments duly levied by the Association. 8.7 Liberal Interpretation of Declaration. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the operation of the Project for the mutual benefit of all Owners. 8.8 Severability of Provisions. The provisions herein shall be deemed independent and severable and the invalidity of partial invalidity or unenforceability of any of the provisions hereof shall not affect the validity of the remaining provisions. 8.9 Cumulative Remedies. Each and all legal or equitable remedies provided for herein shall be deemed to be cumulative, whether so expressly provided for or not. 8.10 Successors and Assigns. This Declaration shall be binding upon and shall inure to the benefit of all heirs, personal representatives, successors and assigns of Declarant and all heirs, personal representatives, grantees, lessees and assignees of Owners. 8.11 Waiver or Breach of Declaration. No waiver or any breach of any of the covenants or conditions of this Declaration shall constitute a waiver of any succeeding or preceding breach of the same, or any other covenant or condition herein contained. 8.12 Delivery of Notices and Documents. Any written notice or other documents required by this Declaration may be delivered personally or by mail, including by deposit into a Member's mail box on the Unit site if such Unit site has been provided by the Member as his address as required below. If by mail, such notice, unless expressly provided for herein or in the By-Laws to the contrary as to the type of notice being given, shall be deemed to have .been delivered and received forty-eight (48) hours after a copy thereof has been deposited in the Member's mail box on the Unit site or in the United States mail, postage prepaid, addressed as follows: -30- 0 8.12.1 If to an Owner, other than Declarant, to the Member appearing on the books of the Association given by the Member to the Association, for the purpose of giving notice and delivering documents. Each Owner, other than Declarant, shall file in writing with the Board promptly upon becoming an Owner, his address for the purpose of giving notice and delivering documents and shall promptly notify the Board in writing as to any subsequent change of address. 8.12.2 If to Declarant, whether in their capacity as an Owner or in any other capacity unless and until changed by notice from Declarant to the Association as provided above: Peter and Ellen Gray do Olsen Construction Company 2665 Ariane Drive, #203 San Diego, CA 92117 8.12.3 Prior to the organizational meeting, notices to the Board shall be addressed to the address set forth in 8.12.2 above. Thereafter, notices to the Board shall be addressed to the Secretary and the Board shall cause the address of the Secretary to be posted at all times in a conspicuous place within the Common Area. In addition, from and after the organizational meeting, notice of the address of the Secretary of the Association shall be given by the Board to each Owner, within a reasonable time after the Board has received actual notice of such Owner's purchase of a Condominium. 8.13 Notification of Sale of Condominium. Concurrently with the consummation of the sale of any Condominium under circumstances whereby the transferee becomes an Owner thereof, or within five (5) business days thereafter, the transferee shall notify the Board, in writing, of such sale. Such notification shall set forth: (a) the name of the transferee and his transferor; (b) the street address or Unit number of the Condominium purchased by the transferee; (c) the transferee's mailing address; and (d) the date of sale. Prior to receipt of such notification, any and all communications required or permitted to be given by Declarant, the Board or the Architectural Control Committee or any agent or representative thereof, shall be deemed to be duly made and given to the transferee, if duly and timely made and given to said transferee's transferor. 8.14 Joint and Several Liability. In the case of joint Ownership of a Condominium, the liability of each of the Owners thereof in connection with the liabilities and obligations of Owners set forth in or imposed by this Declaration shall be joint and several. -31- 8.15 Encroachment Easements. Each Owner within the Property is hereby declared to have an easement appurtenant to his Condominium over all adjoining Condominiums and the Common Area for the purpose of accommodating any encroachment due to minor engineering errors, minor errors in original placement, construction, reconstruction, repair, settlement, shifting, or movement of the Unit or other improvements on the Units. There shall be valid easements for the maintenance of said encroachments as long as they shall exist, and the rights and obligations of Owners shall not be altered in any way by said encroachment, settlement or shifting; provided, however, that in no event shall a valid easement for encroachment be created in favor of an Owner or Owners if said encroachment occurred due to the intentional conduct of said Owner or Owners. In the event a structure is partially or totally destroyed, and then repaired or rebuilt, the Owners of each Condominium agree that minor encroachments over adjoining Condominiums or Common Area shall be permitted and that there shall be valid easements for the maintenance of said encroachments so long as they shall exist. 8.16 Limitation of Restrictions on Declarant. Declarant is undertaking the work of construction of residential Condominiums and incidental improvements on the Condominium property. It is recognized that speedy and effective completion of that work and the sale, rental and other disposal of said Condominiums will be of benefit and is essential to the Declarant, the Association and the Members and the Condominium community, all of whom have an investment in the Project and its future. In order that said work may be completed as rapidly as possible, nothing in this Declaration shall be understood or construed to: 8.16.1 Prevent Declarant, its contractors, or subcontractors from doing on the Property or any Unit whatever is reasonably necessary or advisable in connection with the completion of said work; or 8.16.2 Prevent Declarant or its representatives from erecting, constructing, and maintaining on the Property (except upon Units owned by others) such structures as may be reasonable and necessary for the conduct of its business; or 8.16.3 Prevent Declarant from conducting on the Property (except upon Units owned by others) its business of completing said work and of establishing a plan of Condominium ownership and of selling, managing, leasing and disposing of the Property as Condominiums by sale, lease, or otherwise including use of one or more Condominiums (including without limitation existing offices used by Declarant) as an office or manager's space before and after close of escrow on the first sale of a Condominium, provided that Declarant pays to the Association the same Assessments due for Condominiums owned by it as are due for other Condominiums; -32- 0 8.16.4 Prevent Declarant from maintaining such sign or signs on the Property (except upon Units owned by others) as may be necessary for the sale, lease, or disposition thereof; 8.16.5 Require Declarant to obtain approval of the Architectural Control Committee or Board for improvements, alterations or repair. 8.16.6 The foregoing rights of Declarant shall terminate upon sale of Declarant's entire interest in the Project, or seven (7) years after the date of recordation of the deed of the first Condominium to be sold in the Project, whichever occurs first. 8.16.7 There are hereby reserved in favor of Declarant and for the benefit of Declarant easements for Declarant to perform and exercise each of the rights described in this Section 8.16 or elsewhere in this Declaration. 8.16.8 Declarant shall make reasonable efforts to avoid disturbing the use and enjoyment of Condominiums owned by others and the Common Area, while completing any work necessary to said Condominiums or Common Area. 8.16.9 Anything in this Declaration, the By-Laws or Articles to the contrary notwithstanding, Declarant, its successors and assigns, shall be entitled and empowered to take all actions and execute all documents permitted or required by agreements between Declarant and the Association. 8.17 Determination of Costs and Expenses. Whenever the Association is entitled to recover costs and expenses from a Member, a determination of the amount thereof by the Association, the Board of Directors or a committee or two (2) or more officers, which is made in accordance with the Declaration or the By-Laws, shall be conclusive and binding upon the Members. ARTICLE 9 UTILITIES AND EASEMENTS 9.1 Owners' Rights and Duties. The rights and duties of the Owners with respect to sanitary sewer, water, drainage, electric, gas, television receiving, telephone equipment, cables and lines, exhaust flues, and heating and air conditioning facilities (hereinafter referred to, collectively, as "utilities facilities") shall be as follows: 9.1.1 Whenever utilities facilities are installed within the Property, which utilities facilities or any portion thereof lie in or upon Units owned by other than the Owner of a -33- (0 Unit served by said utilities facilities, the Owners of any Unit served by said utilities facilities shall have the right of reasonable access for themselves or utility companies to repair, replace and generally maintain said utilities facilities as and when necessary, due to failure or inability of the Board to take timely action to make such repairs or perform such maintenance. 9.1.2 Whenever utilities facilities are installed within the Property, which utilities facilities serve more than one (1) Unit, the Owner of each Unit served by said utilities facilities shall be entitled to the full use and enjoyment of such portions of said utilities facilities as service his Unit. 9.1.3 In the event of a dispute between Owners with respect to the repair or rebuilding of said utilities facilities, or with respect to the sharing of the cost thereof, then, upon written request of one (1) of such Owners addressed to the Association, the matter shall be submitted to arbitration pursuant to the rules of the American Arbitration Association, and the decision of the arbitrator(s) shall be final and conclusive on the parties. 9.2 Easements for Utilities and Maintenance. Easements over and under the Property for the installation, repair and maintenance of electric, telephone, water, gas and sanitary sewer lines and facilities, heating and air conditioning facilities, cable or master television antenna lines, drainage facilities, walkways, and landscaping, and as may be hereafter required or needed to service the Property are hereby reserved in favor of the Association for the benefit of Declarant and its successors and assigns together with the right to grant and transfer the same to public utility companies or other Persons. Said easements shall be in favor of Declarant, and its successors and assigns, for the benefit of the Project, and for the benefit of the Association. 9.3 Association's Duties. The Association shall maintain all utility installations located in the Common Area except for those installations maintained by utility companies, public, private or municipal. The Association shall pay all charges for utilities supplied to the Project except those metered or charged separately to the Units. Owners shall maintain the utility installations located within their respective Units. 9.4 Underground. All utility distribution facilities shall be placed underground if required by the Project's use permit or applicable law or regulations. 9.5 Association Easements. There are hereby reserved in favor of Association easements over and under the Project to permit the Association to discharge its obligations under the Condominium Documents. -34- (P) 9.6 Declarant Easements. There are hereby reserved in favor of or conveyed to Declarant easements over and under the Project to permit Declarant to perform all actions necessary to complete the Condominium construction and to sell or lease Condominiums, including without limitation easements for construction display, sales and exhibit purposes. ARTICLE 10 DESTRUCTION OF IMPROVEMENTS 10.1 Reconstruction with Election of Owners. In the event of total or partial destruction of the improvements in the Common Area wherein the cost of reconstruction exceeds the insurance proceeds available by One Hundred Thousand Dollars ($100,000.00) or more, a special meeting shall be called for the purpose of having the Association Members vote on whether or not to repair the damage. Said meeting shall be called within forty-five (45) days of said destruction. Unless at such meeting at least sixty-six and two-thirds percent (66 2/3%) of all Owners vote not to reconstruct, the reconstruction shall occur. If reconstruction is to take place, the Board shall be required to execute, acknowledge, file and record, not later than one hundred twenty (120) days from the date of said destruction, a certificate declaring the intention of the Owners to rebuild. 10.2 Reconstruction Assessments. If a majority of Owners determine to rebuild or the cost of reconstruction does not exceed the insurance proceeds available as set forth in Section 10.1 above, then each Owner shall be obligated to pay a Reconstruction Assessment in the amount necessary to pay his one-fourth (1/4th) share of the cost of reconstruction over and above the insurance proceeds, and the share of each Owner shall be levied upon the basis of each Owner's interest in the Common Area. In the event of failure or refusal by any Owner to pay his share, after notice to him, should failure or refusal continue for a period of sixty (60) days, the Reconstruction Assessment may be enforced under the lien provisions contained in this Declaration. 10.3 Obligation of Board. If the Association is obligated to rebuild such improvements on the Common Area as provided above, the Board shall obtain bids from at least two (2) reputable contractors and shall award construction work to the lowest bidder. The Board shall have authority to enter into a written contract with said contractor for such reconstruction work and the insurance proceeds held by the Board shall be disbursed to said contractor according to the terms of the agreement. It shall be the obligation of the Board to take all steps necessary to insure the commencement and completion of such reconstruction at the earliest possible time. -35- W. OP 10.4 Determination Not to Rebuild. If reconstruction is not required as provided herein, then: 10.4.1 Distribution of Insurance Proceeds. Subject to the rights of Mortgagees, any insurance proceeds available for such rebuilding of improvements in the Common Area shall be distributed among the Owners and their individual Mortgagees by the Board according to the value of each Condominium in relation to the value of all Condominiums, according to such Condominium fair market value at the time of destruction as determined by independent appraisal in accordance with procedures adopted by the Board. If a majority of Owners elect to rebuild, the Board shall then file and record a certificate as provided in Section 10.1 hereinabove. 10.4.2 Recordation of Certificate Not to Rebuild. The Board shall have the duty within one hundred twenty (120) days of the date of such loss to execute, acknowledge and record a certificate setting forth the determination of the Owners not to rebuild and shall promptly cause to be prepared and filed all necessary documents as may be required by law. 10.5 Destruction of Unit Improvements. The repair and restoration of any improvements within the Unit shall be accomplished by the Owner of such Unit. 10.6 Condemnation. Any awards received on account of the taking of Common Area shall be paid to the Association and shall be retained in the general funds of the Association. In the event of a taking of a Unit and any improvements therein, the award shall be distributed to the Owners and their Mortgagees on the allocation basis set forth in the judgment. In the event the taking is by sale under threat of condemnation, or the condemnation award is not apportioned among the Owners affected by the condemnation by court judgment or by agreement between the condemning authority and each of the affected Owners and their respective Mortgagees, the Board shall distribute the award among the affected Owners according to the relative decrease in value of the Condominiums affected by the condemnation as determined by an M.A.I. appraiser selected by the Board. ARTICLE 11 SUSPENSION OF THE RIGHT OF PARTITION The right of partition of the Common Area is hereby suspended pursuant to Section 1359 of the Civil Code of California. The Project may be partitioned and sold as a whole, pursuant to the provisions of said section of the Civil Code as presently enacted or subsequently amended upon a showing of the occurrences of any one of the events therein provided. Nothing -36- herein contained shall prevent the partition or division of interest between joint or common Owners of one (1) Condominium. ARTICLE 12 PROHIBITIONS AGAINST SEVERABILITY OF COMPONENT INTEREST IN CONDOMINIUM 12.1 Prohibition of Severance. No Owner shall be entitled to sever his Unit in any Condominium from his undivided interest in the Common Area for any purpose. Neither of said component interests may be severally sold, conveyed, encumbered, hypothecated or otherwise dealt with. 12.2 Conveyance of Entire Condominium. The elements of a Condominium and any easement rights appurtenant thereto are inseparable and each Owner agrees that he shall not, while this Declaration or any similar declaration is in effect, make any conveyance of less than the entire Condominium and such appurtenances. Any deed, mortgage or other conveyance that purports to convey less than all of the interests in a Condominium shall be deemed to transfer and convey the entire Condominium, including the omitted interests even though such omitted interests are not expressly mentioned in such conveyance document. The provisions of this Section shall terminate on the date that judicial partition shall be decreed. ARTICLE 13 TERM OF DECLARATION - COMPLIANCE WITH RULE AGAINST PERPETUITIES AND RESTRAINTS OF ALIENATION The covenants contained herein shall run with the land and shall be binding upon all parties and all Persons claiming under them until July 1, 2008, after which time the covenants shall be automatically extended for successive periods of twenty-one (21) years, unless an instrument executed by not less than seventy-five percent (75%) of Owners of the Condominiums shall be recorded not less than one (1) year prior to the expiration of the immediately preceding term, cancelling or terminating this Declaration. ARTICLE 14 PROTECTION OF LENDERS 14.1 Written Notification to Requesting Mortgagees, Insurers or Guarantors. Any Requesting Mortgagee, Insurer or -37- Guarantor, upon request, is entitled to written notification from the Board of any default in the performance by a Condominium mortgagor of any obligation under the Condominium Documents which is not cured within sixty (60) days. A Requesting Mortgagee, Insurer or Guarantor shall only be entitled to such notice if it notifies the Association of its name and address and Condominium encumbered by its Mortgage. Any Requesting Mortgagee, Insurer or Guarantor, upon written request, shall also be entitled to written notice of any destruction, taking or threatened taking of any Condominium, Common Area, Association Property and any improvements thereto or any portion thereof affecting the Mortgage held, insured or guaranteed by such Requesting Mortgagee, Insurer or Guarantor. As used in this Declaration, "damaged" or "taking" shall mean damage to or taking of the Common Area or Association Property exceeding Ten Thousand Dollars ($10,000.00) or damage to or taking of a Unit exceeding One Thousand Dollars ($1,000.00). If requested in writing by such Requesting Mortgagee, Insurer or Guarantor, the Association shall evidence its obligations under this subsection in a written agreement in favor of such Mortgagee, Insurer or Guarantor. Any Requesting Mortgagee, Insurer or Guarantor, upon written request, shall also be entitled to written notice of any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association or of any action requiring the consent of Eligible Mortgage Holders. 14.2 Exemption from Right of First Refusal. Any First Mortgagee which comes into possession of the Unit pursuant to the remedies provided in the Mortgage, foreclosure of the Mortgage, or Deed (or assignment) in lieu of foreclosure, shall be exempt from any right of first refusal, if such exists. 14.3 Subordination of Assessment Lien to Mortgages. Any First Mortgagee which comes into possession of the Condominium pursuant to the remedies provided in the Mortgage or foreclosure of the Mortgage, shall take the Condominium free of any claim for unpaid Assessments or charges against the mortgaged Condominium which accrue prior to the time such Mortgagee comes into possession of the Condominium (except for claims for a share of such Assessments or charges resulting from a reallocation of such Assessments or charges to all Condominiums, including the mortgaged Condominium). The Assessment liens provided for herein shall be subordinate to the lien of any First Mortgage now or hereafter placed upon the Project; provided, however, that such subordination shall apply only to the Assessments which have become due and payable prior to a sale or transfer of such property pursuant to a decree of foreclosure or trustee's sale. Such sale or transfer shall not relieve such property from liability for any Assessments thereafter becoming due, nor from the lien of any such subsequent Assessment. : Awd 14.4 Prior Approval of Eligible Mortgage Holders. Unless seventy-five percent (75%) of Eligible Mortgage Holders and seventy-five percent (75%) of the voting power of the Association have given their prior written approval, the Association shall not: 14.4.1 Amend a material provision of the Condominium Documents. A material provision shall be defined as those provisions governing the following subjects: 14.4.1.1 Voting rights; 14.4.1.2 Assessments, assessment liens, or subordination of such liens; 14.4.1.3 Reserves for maintenance, repair and replacement of the Common Area of Association Property; 14.4.1.4 Responsibility for maintenance and repair of the Property; 14.4.1.5 Reallocation of interests in the Common Area or rights to its use; 14.4.1.6 Boundaries of any Unit; 14.4.1.7 Convertability of Units into Common Area or Association Property or of Common Area or Association Property into Units; 14.4.1.8 Expansion or contraction of the Property or the addition, annexation or withdrawal of property to or from the Property; 14.4.1.9 Insurance or fidelity bonds; 14.4.1.10 Leasing of Units; 14.4.1.11 Imposition of any right of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey such Owner's Condominium; or 14.4.1.12 Any provision which by its terms is for the express benefit of Mortgagees or insurers or guarantors. An amendment or addition shall not be considered material under this Section if it is for the purpose of correcting technical errors or for clarification only. An Eligible Mortgage Holder who receives a written request to approve conditions or amendments which are not considered material who does not deliver or post to the requesting party a negative response within thirty (30) days shall be deemed to have approved such request. -39- 0 14.4.2 The Association shall not take any of the following additional actions: 14.4.2.1 Effectuate any decision to assume self- management of the Property when professional management had been previously required by an Eligible Mortgage Holder; 14.4.2.2 Restoration or repair of the Property (after hazard damage or partial condemnation) in a manner other than that specified in the Condominium Documents; 14.4.2.3 Termination of the legal status of the Property for any reason, including without limitation, the substantial destruction or condemnation of the Property; 14.4.2.4 By any act or omission, abandon, partition, sell, alienate, subdivide, release, transfer, hypothecate or otherwise encumber the Common Area or Association Property, provided, however, the granting of easements for public utilities or other public purposes consistent with the intended use of the Common Area or Association Property shall not require such approval; 14.4.2.5 Partition or subdivide a Condominium, or any elements thereof; 14.4.2.6 Change the pro rata interest or obligations of any individual Condominium for purposes of (a) levying Assessments or charges, allocating distributions of insurance proceeds or condemnation awards or (b) determining the pro rata share of ownership in the Common Area; 14.4.2.7 Use hazard insurance proceeds for losses to any Common Area or Association Property and the improvements thereto for other than repair, replacement or construction; 14.4.2.8 Fail to maintain fire and extended coverage insurance on the Common Area and Association Property and the improvements thereto in an amount less than one hundred percent (100%) of the insurable value based on current replacement cost; and 14.4.2.9 By act or omission change, waive or abandon any scheme of regulation, or enforcement thereof, pertaining to the architectural design or the exterior appearance of Units, the exterior maintenance of the Association Property including, without limitation, the party walls or common fences and driveways, or the upkeep of lawns and plantings. 14.5 Examination of Books and Records. The Condominium Documents, membership register, books and records of account, financial statements, and minutes of meetings of the Members, the -40- Board and any Committees of the Board, shall be made available for inspection and copying by any prospective purchaser of a Condominium, any Member or his duly-appointed representative, any holder, insurer or guarantor of a First Mortgage secured by a Condominium at any reasonable time during normal business hours or under other reasonable circumstances and for a purpose reasonably related to their interest as a prospective purchaser, Member, holder, insurer or guarantor, at the principal office of the Association or such other place within the Property as the Board shall prescribe, all as provided in the California Corporations Code, or any successor statute thereof. 14.6 Reserves for Replacement. An adequate reserve fund for replacement of the Common Area facilities must be established by the Association and must be funded by Regular Assessments paid in regularly scheduled installments rather than by Special Assessments. 14.7 Taxes, Assessments and Charges. All taxes, Assessments and charges which may become liens prior to the First Mortgage under the local law shall relate only to the individual Condominiums and not to the Project as a whole. 14.8 No Priority Over provision herein shall give priority over any rights of pursuant to their Mortgages Owners of insurance proceed or a taking of Units and/or Rights of First an Owner, or any First Mortgagees in the case of a s or condemnation the Common Area. ortgagees. No other Person, of Condominiums, distribution to awards for losses to 14.9 Professional Management of Project. Except as permitted in the Condominium Documents, any agreement for professional management of the Project, and any other contract providing for services by Declarant, developer, sponsor or builder must provide for termination by either party, or payment of a termination fee, without cause upon ninety (90) days' or less written notice and for cause on not more than thirty (30) days' written notice, and a maximum contract term of three (3) years. 14.10 Notice to Lender. The Association shall give written notice to all First Mortgagees of any loss to or taking of the Common Area as provided above. 14.11 Conflict. If there is any conflict between any provision of this Article and any other provision in this Declaration or the By-Laws of the Association, the language contained in this Article, "Protection of Lenders", shall control. 14.12 Audited Statements. The Association must provide at its expense an audited statement for the preceding fiscal year of -41- the Association to any holder, insurer or guarantor of any First Mortgage secured by a Condominium who has submitted a written request therefor, or if such audited statement is not then completed and available, within one hundred twenty (120) days after the close of such fiscal year. 14.13 Insurance. The Association shall obtain and maintain in effect insurance and fidelity bond coverage in the amounts and with endorsements deemed adequate by the Board, as required by the Condominium Documents, and such additional endorsements and coverages meeting the requirements established by Federal Housing Administration, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, or the Veterans Administration for condominium developments, when any such agency first becomes and as long as it continues to be either a Mortgagee, Owner, or insurer or guarantor of a Mortgage within the Property except to the extent such coverage or endorsements are not available or have been waived in writing by the applicable agency. 14.13.1 All insurance policies maintained by the Association must provide that such policies may not be cancelled, reduced or substantially modified without at least ten (10) days' prior written notice to the Association and to each First Mortgagee listed as a scheduled First Mortgagee in the policy. All Fidelity bonds maintained by the Association must provide that such fidelity bonds may not be cancelled or substantially modified without at least ten (10) days' prior written notice to the Association and each mortgagee servicing contractor acting on behalf of any of the said agencies. 14.14 Priority of Mortgage Lien. No breach of the covenants, conditions, or restrictions, nor the enforcement of any lien provisions contained in this Declaration, shall affect, impair, defeat or render invalid the lien or charge of any First Mortgage made in good faith and for value encumbering any Condominium, but all of said covenants, conditions and restrictions shall be binding upon and effective against any Owner whose title is derived through foreclosure or trustee's sale, or otherwise, with respect to a Condominium. 14.15 Curing Defaults. A Mortgagee, or the immediate transferee of such Mortgagee, who acquires title by judicial foreclosure, deed in lieu of foreclosure or trustee's sale shall not be obligated to cure any breach of the provisions of this Declaration which is noncurable or of any type which is not practical or feasible to cure. The determination of the Board made in good faith as to whether a breach is noncurable or not feasible to cure shall be final and binding on all Mortgagees. 14.16 Resale. It is intended that any loan to facilitate resale of any Condominium after judicial foreclosure, deed in lieu of foreclosure or trustee's sale is a loan made in good -42- faith and for value and entitled to all of the rights and protections afforded to other Mortgagees. 14.17 Payment of Taxes or Premiums. Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area or Association Property unless such taxes or charges are separately assessed against the Owners, in which case the rights of Mortgagees shall be governed by the provisions of their Mortgages. Mortgagees may, jointly or singly, also pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for the Common Area or Association Property. Mortgagees making payments pursuant to this Section shall be owed immediate reimbursement therefor from the Association. Entitlement to such reimbursement shall be reflected in an agreement in favor of any Mortgagee which requests the same to be executed by the Association. ARTICLE 15 BREACH 15.1 Right of Entry. Violation of any of the provisions, conditions, restrictions, covenants, easements or reservations contained herein, shall give to Declarant or its successors, or to the Association, the right to enter upon the Unit in which the violation exists or the Unit of the Person committing a violation affecting the Common Area and to abate and remove, at the expense of the Owner committing the violation, or the Owner of the Unit, as applicable, any erection, thing or condition that may be or exists within the Unit or the Common Area contrary to the intent and meaning of the provisions hereof. Such entry shall be made only after three (3) days' notice to said Owner (except in the case of emergency) and with as little inconvenience to the Owner as possible, and any damage caused thereby shall be repaired by the Person entering. The Person entering shall not thereby be deemed guilty of any manner of trespass by such entry, abatement or removal. 15.2 Nuisance. The result of every act or omission, whereby any provision, condition, restriction, covenant, easement or reservation herein contained is violated, in whole or in part, is hereby declared to be and constitutes a nuisance, either public or private, shall be applicable against every such result and may be exercised by Declarant or its successors or the Association. Such remedy shall be deemed cumulative and not exclusive. 15.3 Right of Lien Holder. A breach of any of the provisions, conditions, restrictions, covenants, easements or reservations herein contained, shall not affect or impair the -43- (9 lien or charge of any bona fide first Mortgage, made in good faith and for value, on any of the Condominiums, provided, however, that any subsequent Owner of the Condominium shall be bound by these provisions, conditions, restrictions, covenants, easements and reservations whether such Owner's title was acquired by foreclosure, trustee's sale or otherwise. 15.4 Enforcement. In the event of a breach of any of the provisions, conditions, restrictions, easements, covenants or reservations hereby established, the Board may enforce any and all of the terms and conditions of this Declaration. It is hereby declared that damages at law for such breach are inadequate. The restrictions provided bind all Owners. ARTICLE 16 AMENDMENT 16.1 Subsequent to First Close of Escrow. Subsequent to the close of the first escrow for the conveyance of a Condominium, each and all of the covenants, conditions and restrictions contained herein may be modified, amended, augmented or deleted in the following manner: by vote of seventy-five percent (75%) of the voting power of the Association and seventy-five percent (75%) of the votes of Members other than the Declarant, and such prior approval of Eligible Mortgage Holders as is required by Section 14.4 subject only to the qualification that the percentage of voting power necessary to amend a specific clause or provision shall not be less than the prescribed percentage of affirmative votes required for action to be taken under such clause or provision. Said amended Declaration or amendment to Declaration shall not be effective for any purpose unless and until recorded in the Office of the County Recorder, together with a certificate executed by two (2) officers of the Association certifying compliance with all applicable requirements, but shall thereafter be conclusive and presumed to be valid as to anyone relying thereon in good faith. 16.2 Prior to First Close of Escrow. Prior to the close of the first escrow for the conveyance of a Condominium, Declarant shall have the right to amend this Declaration, by executing and recording with the written consent of the holders of all Mortgages then on record, the desired amendment thereto, after receiving prior written approval of any state administrative agency then having regulatory jurisdiction over said Project and the recording of said amendment together with a Certificateof Declarant certifying compliance with applicable requirements, shall be presumed to be valid as to anyone relying thereon in good faith. -44- ARTICLE 17 ASSIGNMENT OF DECLARANT'S AND ASSOCIATION'S RIGHTS Some or all of Declarant's and Association's rights and obligations under the Condominium Documents may be assigned by Declarant or Association, as applicable, by an express exclusive or non-exclusive assignment incorporated in a recorded instrument including without limitation a deed, deed of trust, mortgage, assignment or lease. Such an assignment incorporated in a mortgage or deed of trust will automatically pass to a Person acquiring title at a trustee's sale, upon foreclosure, or upon receipt of a deed in lieu of foreclosure with respect to such mortgage or deed of trust. To the extent that the easements and other rights reserved for Declarant herein have not been conveyed to Declarant prior to conveyance of such rights to the Association, Association shall convey such rights to Declarant, its affiliates, successors or assigns in the manner provided in the preceding paragraph. ARTICLE 18 BINDING EFFECT OF COVENANTS, CONDITIONS AND RESTRICTIONS Each Owner and any successor in interest to said Owner, takes his right, title, interest and estate subject to all covenants, conditions and restrictions set forth herein, and agrees to perform and to be bound thereby. The covenants, conditions, and restrictions imposed hereby constitute a general scheme for the benefit of each Owner in the Project and are or will be imposed upon the first Owner of any Condominium. Said covenants, conditions and restrictions shall be a burden on and a benefit to not only each of the original purchasers of Condominiums, but also their grantees and all subsequent Owners. All covenants, conditions and restrictions herein are intended to and shall constitute covenants running with the land or equitable servitudes on the land, as the case may be, and are intended to and shall be binding on any future Owners of any Condominium(s). ARTICLE 19 INVALIDITY OF ANY PROVISION If any condition or restriction contained herein be invalid or held invalid or void by any court of competent jurisdiction, such invalidity or nullity shall in no way affect any other condition or restriction contained herein. -45- 0 ARTICLE 20 WAIVER A waiver of breach of any of the foregoing conditions or restrictions shall not be construed as a waiver of any succeeding breach or violation thereof, or of any other condition or restriction. ARTICLE 21 PARTIES SUBJECT TO PROVISIONS This Declaration shall be for the benefit of and be binding on the heirs, legatees, executors, devisees, administrators, guardians, conservators, successors, purchasers, lessees, sublessees, encumbrancers, donees, grantees, mortgagees, lienors and assigns of and from the parties hereto. An Owner who leases his Condominium shall be absolutely liable and responsible for the acts of his lessee, including but not limited to: (a) damage or destruction to any portion of the Common Area; (b) violation or threatened violation of the provisions of this Declaration, the By-Laws or of the rules and regulations of the Association. ARTICLE 22 ENFORCEMENT OF CERTAIN BONDED OBLIGATIONS 22.1 Consideration by Board of Directors. In the event that (a) any ref urbishments of the improvements located on the Project are not completed prior to the sale of the first condominium in the Project; and (b) the Association is obligee under a bond or other arrangement ("Bond") to secure performance of the commitment to complete the improvements, the Board shall consider and vote on the question of action by the Association to enforce the obligations under the Bond, with respect to any such improvement for which a Notice of Completion has not been filed within sixty (60) days after the completion date specified for that improvement in the Planned Construction Statement appended to the bond. If the Association has given an extension in writing for the completion of any Common Area improvement on the Project, the Board shall be directed to consider and vote on the aforesaid question if a notice of completion has not been filed within thirty (30) days after the expiration of the extension. 22.2 Consideration by the Members. 22.2.1 A special meeting of Members, for the purpose of voting to override a decision by the Board not to initiate action to enforce the obligations under the Bond or on the -46- 0 failure of the Board to consider and vote on the question shall be held no fewer than thirty-five (35) days nor more than forty-five (45) days after receipt by the Board of a petition for such a meeting signed by members representing five percent (5%) of the total voting power of the Association. A vote by Members of the Association other than Declarant shall be taken at such special meeting. 22.2.2 A vote by a majority of the voting power of the Association other than the Declarant to take action to enforce the obligations under the Bond shall be deemed to be the decision of the Association, and the Board shall thereafter implement this decision by initiating and pursuing appropriate action in the name of this Association. ARTICLE 23 RESTRICTION ON IMPOSITION OF MONETARY PENALTIES BY THE ASSOCIATION 23.1 Assessments which May Not Become a Lien. Any monetary penalty imposed by the Association as a disciplinary measure for failure of a Member to comply with the governing instruments or as a means of reimbursing the Association for costs incurred by the Association in the repair of damage to Common Area and facilities for which the Member was allegedly responsible or in bringing the Member and his Condominium into compliance with the Condominium Documents and rules and regulations of the Association may not be characterized nor treated in such instruments as an Assessment which may become a lien against the Member's Condominium enforceable by a sale of the interest in accordance with the provisions of Sections 2924, 2924(b) and 2924(c) of the Civil Code. 23.2 Assessments which May Become a Lien. The provisions of Section 23.1 above do not apply to charges imposed against an Owner consisting of reasonable late payment penalties for delinquent Assessments and/or charges to reimburse the Association for the loss of interest and for costs reasonably incurred (including attorneys' fees) in its efforts to collect delinquent Assessments. ARTICLE 24 MISCELLANEOUS 24.1 Headings. The subject headings of the sections and subsections of this Declaration are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. -47- 0 24.2 Applicability of Corporations Code. Whenever reference is made in this Declaration to the California Corporations Code the respective sections cited are meant to apply as stated in the reference as if the Association were a non-profit mutual benefit corporation. IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the day and year first hereinabove written. Declarants: PETER GRAY ELLEN GRAY STATE OF CALIFORNIA) ) ss. COUNTY OF SAN DIEGO) On , 19_, before me, the undersigned, Notary Public in and for said County and State, personally appeared PETER GRAY, personally known to me (or proved to me on the basis of satisfactory evidence) to -be the person whose name is subscribed to the within instrument and acknowledged that she executed the same. $ WITNESS my hand and official seal. -49- 0 STATE OF CALIFORNIA) ss. COUNTY OF SAN DIEGO) On , 19, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ELLEN GRAY, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged that she executed the same. WITNESS my hand and official seal. -50-