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HomeMy WebLinkAboutCT 83-37; Faraday Business Park; Tentative Map (CT)85-018875 Rr.conoEO INOFFICIAL RECOHD5OF5/jinic:.3i:w;tY.CA.| •f;:5 JAH 18 PH 3 53 I VERAI . LYLf II cpv-ifY auOSI^R I RECORDING REQUESTED BY: IIK03MD BEQUEST OF fIRSr AMBnWi T1TU CO Jim Hollenbeck FARADAY DEVELOPMENT CORP. 1566 Cherokee St. San Marcos, Calif. 92069 DLCLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF FARADAY BUSINESS PARK A Commercial Condominium Project DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FARADAY BUSINESS PARK A COMMERCIAL CONDOMINIUM PROJECT RECITALS 1 I . DEFINITIONS 3 11 . THE PROPERTY 6 2 .1 Property Subject to Declaration 6 2.2 Waiver of PartiLion 6 2.3 Common Area Ownership III. CONDOMINIUM ASSOCIATION 7 3.1 The Organi zation 7 3.2 Membership 7 3.3 Voting Classes B 3 . 4 Voti ng Procedures 9 3.5 Notice and Quorum and Location of Meeting 9 3.6 Board of Directors 11 3.7 General Powers, Duties and Authority of The Association 11 3.8 Capital Improvements 14 3 .9 Power of Attorney 15 3.10 Majnlenance of Common Area 15 3.11 Maintenance Rights of City 16 3.)2 Authority for Entry for Maintenance or Construction 16 3.13 Annual Opera ti ng Statement 16 3.14 Additional Insurance by Unit Owner 17 3.15 Manager 17 3.16 Consolidations and Mergers 17 3.17 Dedication 17 3.18 Project Rules 18 3.19 Enforcement 19 3 . 20 Not.ice of Incumbency 20 3.22 Liability of Directors 22 IV. MAINTENANCE ASSESSMENTS AND ASSOCIATION FUNDS 21 4.1 Covenants for Maintenance Assessments 21 .2 Monthly Assessments. 22 .3 Special Assessments .'.' 24 .4 Reimbursement Assessments 25 .5 Non-Waiver of Assessments 25 . 6 Enforcements 25 .7 Power of Foreclosure and Sale 27 4.8 Status of Assessment Lien 28 4.9 Certificate of Discharge o£ Lien 28 4.10 Subordination of Lien to Encumbrance 29 4.11 Association Funds 29 4.12 Books of Account 30 V. USES, RESTRICTIONS AND COVENANTS 31 5.1 Proper Use of Premises..... 31 5.2 Maintenance by Unit Owner 34 5.3 Alterations or Additions 36 5.4 Partitions 36 VI . EASEMENTS 37 6.1 Generally ?'> 6.2 Utilities 3, 6.3 Encroachments and Partitions 37 6.4 Repairs 37 6.5 Ingress and Egress 38 6.6 Emergency Escapes 38 VII. DAMAGE OR DESTRUCTION OF BUILDING CONDEMNATION 38 7.1 Damage to Single Unit 38 7.2 Damage to Two or More Units or Common Area.... 38 7.3 Condemnation of Common Area 40 VIII. RIGHTS OF MORTGAGEES AND TRUST DEED BENEFICIARIES... 40 IX. MISCELLANEOUS PROVISIONS 43 9.1 Mechanic's Liens 43 9.2 Term of Declaration 43 9.3 Amendments 44 9.4 Construction of Provisions 45 9.5 Binding 45 9 . 6 Severabi 1 j ty of Prov j sions 45 9.7 Gender, Number and Captions 45 DECLARATION Of COVENANTS, CONDITIONS AND RESTRICTIONS OF FARADAY BUSINESS PARK A COME RI CAT ' CONDOKfKfUM "PROJECT This declaration is made this ___day of , by KAKADAV BUSINESS PARK, A LIMITED PAUTNEKSM) P)ierein referred to as "Declarant". This QC'claratibn is made with reference to the following facts: Declarant is the o.vner of that certain real property located in Carlsbad, San Die-go County, California, described as follows: Lot 1 of CARLSBAD TRACT NO. 83-37, according to Map thereof, No, 11094, as filed in the Office of the County Recorder of San .Diego County on November 30, 1984. The real property described above is a project vnthin the meaning of California Civil Code Section 1350 (3) and is subject to the provisions of the California Condominium Act (Cal i form'a Civil Code, Sections 1 350- 13/0, inclusive). It is the desire and intention of the Declarant to subdivide and develop such real ,'jro- perly as a condominium project pursuant to the Map arid to impose on said real property mutual beneficial restrictions easements, assessments and Hens under a general plan of improvement for the benefit of all of the subject Units and of the subject Common Area and the future owners of said Units and Coirr.ion Area, 2382 NOW, THEREFORE, Declarant hereby declares that all of the real property described in the Map is held and shall be held, conveyed, hypothecated, encumbered, leased, rented, used, occupied and improved, subject to the .'' following limitations, restrictions, covenants and condi- tions, all of which are declared and agreed to be in furtherance -of the plan for the subdivision, improvement and sale of said real property as a condominium project and are established and agreed upon for the purpose of enhancing and perfecting the value, desirability and attractiveness of the real property, improvements and every part thereof. All of the limitations, easements, uses, obligations, covenants, restric- tions and conditions stated herein shall run with the real property; shall be deemed appurtenants to the property each as to the remaining interests; Ehall be binding on all parties having or acquiring any right, title or interest in the described real property or any part thereof; and shall be for the benefit of eaih owner of any portion of said real property or any interest therein, and shall inure to the benefit of and be binding upon each successor in interest of the owners thereof. Each and all of said limitations, easements, uses, obligations, covenants, conditions and restrictions shall be deemed to be, and shall be construed as equitable servitudes, enforceable by any of the owners of any of the individual Units against any other owner, lessee or occupant of the Units, the real property, or any portion thereof. -2- ARTICLE I DEFINITIONS Unless the context clearly indicates a different meaning therefor, the terms .used herein, in the Map, and in any deeds regarding Units in the Project shall have the meanings specified in this Article. A. Articles; The term "Articles" shall mean and refer to the Articles of Incorporation of FARADAY OWNERS ASSOCIATION, filed in the Office of the Secretary of State of the State of California. Association: The term "Association" shall mean OWNERS ASSOCIATION to its successors B. and refer to FAR'.DAY and assigns, incorporated as a non-profit mutual benefit membership corporation under the laws of the State of California. C. Beneficiary: The term "Beneficiary" shall mean and refer to a mortgagee under a mortgage or a beneficiary un3er a deed of trust encumbering a Unit. D. Board: The term "Board" shall mean and refer to the Board of Directors of the Association. E. By-Laws: The term "By-l,aws" shall mean and refer t the By-l^aws of the Association which are or shall be adopted by the Board. City to the City of Carlsbad, The term City shall mean and refer San Diego County, California. of this Declaration 2384 H, Condominium: The term "Condominium" shall mean and refer to a Unit together with the undivided percentage (I) interest in the Common Area conveyed in fee to an Own^r, and all easements appurtenant thereto, all as more particularly defined in Section 783 of the California Civil Code. !• c.PJ™°n. hTJUL' Tlle term "Common Area" shall mean and refer to all o( the Project described on the Map which is not included within any Unit. Common Area shall include, but shall not be limited to, hallways, roofs, foundations, pipes, ducts, Dues, chutes, floors, bearing walls, columns and girders, to the unfinished surfaces thereof, all reyarclless of location, parking, storage, service and equipment areas, driveways, roads, alleys, walkways, accessways, sewers, storm drains, street liyht- ing, fire hydrants and all other portions of the fire prevention water system, open spaces, planted and land- scaped areas, and all other improvements which may be placed upon or located in the Common Area, except that gas & air conditioning apparatus as described in Paragraph "T. __Uni_t" below. The term "Common Area" shall not include any interior partitions separating individual Condominixim Units. J. and refer to Declarant: The term "Declarant" shall mean FARADAY BUSINESS PARK, A LIMITED PARTNERSHIP. K. Declaration; The term "Declaration" shall mean a;id refer to this Declaration of Covenants, Conditions and Restrictions. L. Di rector: The term "Director" and refer to a member of the Board. shall mean M. Map: The term "Map" shall mean and refer to that curtain Lot 1 of CARLSBAD TRACT NO. 83-37, In the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 11094, os filed in the Office of the County Recorder of San Diego County on November30, 1984. N. t'JLPA9.lL£• Tne term "Manager" shall mean and refer to the person, corporation, partnership or other business entity, if any, employed as such pursuant to Section 3.15 hereof. O. l'ViL™kc£: The term "Member" shall mean~and refer to those persons or entities who are members of the Association pursuant to Article 111 hereof. II 2385 P. PARKING SPACES: The forking spaces shall not; be specifically assigned to Unit Owners by the Association for the parking of motor vehicles but all spaces shall be open parking for jjse by Owners and their guests, invitees, employees, etc. Q. Project: The term "Project" shall mean and refer to the entire parcel of real property described on the Map which is divided or to be divided into Condo- miniums, including all structures thereon (C.C.§1350(3)). R. Rules: The term "Rules" shall mean and refer to the Rules adopted by the Association pursuant to Paragraph 3.IB of this Declaration. S. Tenant; The term "Tenant" shall mean and refer to a person or entity renting, occupying or leasing a Unit. T. Unit: The term "Unit" shall mean and refer to the elements of a Condominium not owned in common with the owners of other Condominiums in the Project. The "Unit" shall further include the air conditioning t gas mechanisms affixed to the roof of the structure and connected to the Unit including all fixtures, nuts, bolts, or other appendages necessary to connect the mechanism to the structure as well as all air lines, tubes, wires or other such items necessary to operate the equipment and/or to take air or power or gas from the mechanism to the rest of the Unit. Such air conditioning & gas mechanism is not part of the common area nor shall its maintenance, repair or replacement of any part be the responsibility of the Owners Association but rather shall be the exclusive responsibility of the Unit owner. The Boundaries of each Unit shall be the following: the interior unfinished surfaces (exclusive of paint, paper, wax, tile, enamel or other finishes) of the floors, ceilings, interior beams and columns, perimeter walls or lines as designated on the Map and/or Plan, bearing walls, doors and doorframes of said Unit. The Unit shall include the airspace so encompassed by said boundaries, excluding all. bearing walls and all walls containing any utility conduit to the unfinished surfaces of any such walls (except as noted above Re: Air Conditioning & Gas) U. Unit Owner: The term "Unit Owner" or" "Owner" shall mean and refer to the holder or holders of record fee title to a Condominium, including Declarant with respect to _ C _ 2386 each Condominium owned by Declarant. The term "Unit Owner" shall include a contract purchaser (Vendee) under an installment, land contract where and to the extent such Vendee has been granted membership rights in the Association pursuant to Paragraph 3.3A of this Declaration, and shall exclude those persons having an interest in a Condominium "merely as security for performance of an obligation. ARTICLE II THE PROPERTY 2.1 PROPERTY SUBJECT TO DECLARATION: All of the real property described on the Plan is hereby declared to be subject to this Declaration. 2.2 WAIVER OF PARTITION: There shall be no judicial partition of the Project or any part thereof. Except as provided in the California Civil Code Section 1354, each Unit Owner, and the successors of each Unit Owner, whether by deed, gift, devise or operation of law, for their own benefit, for the benefit of their respective Condominiums and for the benefit of all other Unit Owners, specifically waive and abandon all rights, interests and causes of action for a judicial partition of the tenancy in common ownership of the Project and do further promise and covenant that no action for such judicial partition shall be instituted, prosecuted, or reduced to judgment until the happening of the conditions set forth in Article VIII hereof; provided, however, that if any Condominium shall be owned by two or more co-tenants as tenants in common, or as joint tenants, or as community property, nothing herein contained shall be deemed to prevent a judicial partition as between such co-owners of the Condominium. 2.3 COMMON AREA OWNERSHIP: A schedule setting forth the percentage undivided interests in the Common Area which shall be conveyed with each respective Commercial Condominium Unit is attached hereto as Exhibit "A" and by this express reference incorporated herein. The undivided interests in the Common Area established hereundeir and to be conveyed with the respective Commercial Condominium Units cannot be changed. Declarant, its successors, assigns, and grantees, covenant and agree that the undivided interests in the Common Area and the fee title to the Commercial Condominium Unit even though the description in the instrument of conveyance or encumbrance may refer only to the fee title to r -6- ,.* 2387 the Commercial Condominium Unit. Each Unit and each Unit Owner shall share the expenses of the Common Area propor- tionately as more particularly set forth in Article IV below. ARTICLE III CONDOMINIUM ASSOCIATION 3.1 THE ORGANIZATION: A. The Association is an incorporated non- profit mutual benefit membership corporation charged with the duties and empowered with the rights set forth herein. Its affairs shall be governed by this Declaration, the Articles, the By-Laws, and the Rules of the Association. B. In the event that the Association as a corporate entity is dissolved, non-profit, unincorporated association shall forthwith and without further action or notice be formed to succeed to all of the rights and duties of the Association hereunder. The affairs of such unincorporated Association shall be governed by the laws of the State of California and, to the extent not inconsistent therewith, the Articles and By-Laws of the Association as if they were created for the purpose of governing the affairs of an unincorporated association. 3.2 MEMBERSHIP: Each Unit Owner, including Declarant, by virtue of being an Owner and for so long as Declarant is an Owner, shall be a Member of the Association, or, in the event of its dissolution, a Member of the unincorporated association succeeding to the Association,- provided, however, that any person or entity who holds an interest in a Unit merely as security for the performance of an obligation shall not be a Member. Each Unit Owner shall be entitled to one (1) membership in the Association for each Unit owned. Association membership shall be appurtenant to and may not be separate from the ownership of any Unit. Upon termination of Unit Ownership, the membership in the Association shall also terminate. Ownership of a Unit shall be the sole qualification for membership in the Association. Except-as otherwise provided herein, the rights, duties, privileges and obligations of all Members of the Association shall be as provided in this Declaration, the Articles, By-Laws and Rules of the Association.- The membership of an Owner shall not be transferred, pledged or alienated in any way .except upon transfer of title to the 21 2388 Owner's Unit and then only to the transferee of title to such Unit. Any attempt to make a prohibited transfer is void. 3.3 VOTING CLASSES: The Association shall have two (2) classes of voting Members. A. Class A; Class A Members shall be all Unit Owners with the exception of Declarant. Class A Members shall have one (1) vote for each Unit. When more than one (1) person owns a single condominium Unit, all Owners shall be Members of the Association. However, the vote for such Unit must be cast as a Unit. Said vote shall be cast by the designated "Voting Owner" for that Unit as hereinfter provided. Fractional votes shall not be allowed and in no event shall more than one (1) vote be cast with respect to any one (1) Unit. When more than one (1) person owns a single Unit, there shall be one (1) "Voting Owner" for such Unit. The "Voting Owner" shall be designated by the record Owner or Owners of each Unit by written notice to the Board. Said designation shall be revocable at any time by actual notice to the Board given by any of the Unit Owners of record or by the death or judicially declared incompetence or legal incapacity of any record Unit Owner. The power herein conferred to designate a "Voting Owner" and to revoke said designation may be exercised by the Unit Owner's conservator or by the guardian of his estate or, in the case of a minor having no guardian, the parent or parents entitled to custody of said minor, or during the administration of his estate, the executor or administrator of a deceased record Unit Owner where the latter's interest in the Unit is subject to administration in his estate, where no "Voting Owner" of a Unit has been designated or said designation has been revoked as herein provided, the vote for such Unit shall be exercised as the majority of co-owners of the Unit mutually agree. No vote shall be cast for any Unit where there is no designated "Voting Owner" and the majority of co-owners of the Unit cannot agree to said vote or other action. Majority co-owners shall be based upon the written agreement o£ the parties or the ownership of the majority percentage of the Unit if no agreement has been provided. A Class A Member who has sold his property to a contract purchaser under an installment land contract shall be entitled to delegate to such contract purchaser his membership rights in the Association. Such delegation shall be in writing and shall be delivered to the Board before such contract purchaser may vote. However, the contract seller shall remain liable for all charges and assessments until fee title to the Unit sold is transfer- red. Notwithstanding anything hcrcinabovc contained to —J •-Of 2389 the contrary, a Member of the Association may, but shall not be required to, transfer his voting right in the Association to any Tenant under any written lease or other agreement of not less than one (1) year, which transfer shall automatically terminate upon the expiration or other termination o£ such lease or other agreement. In the event of any such transfer, the Unit Owner shall by written notice to the Board designate such transferee to be the "Voting Owner" for such Owner's Unit. Nothing contained herein shall be construed to relieve any such lessor from the obligation to pay all charges and assess- ments hereunder. B. Class B; The sole Class B member shall be Declarant. ~~The Class B Member shall be entitled to three (3) votes for each Unit owned by it, provided that the Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (1) When the votes outstanding in the Class A member ship e^ual the votus outstanding in the Clcss B .i.c-mbtrsliip; or (2) On Dt-cc-,T.i,tr 3!, !9S5. 3.4 VOTING PKOCEDyMS: Ar'V vot<-' may be cast in person or by proxy. All proxius shall be in writing, dated, siyntd by the Owners and filed with the Board before the conuencemunt of any meeting. No proxy shall extend beyond a period of eleven (11) months after the filing of such proxy with the Board. Every proxy shall automatically ceiise upon the sale of Ihe Unit by the Owner, or upon the death or judicially declared incompe- tence or legal incapacity of an Ownur. When voting for the election or removal of a Director or Directors, each Owner may cumulate his votes as provided in the Dy-I,aws of the Association and Die California Corporations Code. 3.5 NOTICE AND_QUORUM AND LOCATION OF MEETING: Written notice to the'Members oi the Association of any iieeting of the Association, re'iul^r or special, shall r -9- -00 2390 be sent by the Secretary to all Members not less than ten (10) days nor more than thirty (30) days in advance of. the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast fifty percent (50«) of all the votes of each class of membership shall constitute a quorum. If any meeting cannot be heJd because the required quorum is not present, Unit Owners present may adjourn the meeting to a time not less than five (5) days nor more than thirty (30) days from the time the original meeting was called. The required quorum at the adjourned meeting shall be twenty-five percent (25%) Of all the votes of each class of membership. The first meeting of the Association shall be held within thirty (?0) days after the closing of the sale by Declarant of Units representing the fifty-one percent (51%) of the total Units in the Project, but in no event shall the meeting be held later than six (6) months after the closing of the sale by Declarant of the first Unit. Thereafter! the annual meetings of the Association shall be held on the day and time set forth in the By-Laws, A special mut-tiny of the Members of the Asso- ciation shall be promptly called by the President or, if the Prc'SiJt-nt fails or refii;;<?s to <?o so, Declarant , or upon: (i) The vote for such a special meeting by a majority of a quorum 'of the Board oC Directors; or (ii) Receipt by the Board of a written request for such a special meeting signed by Members representing not less than twenty-five percent (251) of the total vot- ing power of the Association, including Declarant, or by Members representing not less than fifteen percent (151) of the voting power rosiJing in M<:mb(!rs othtr than the ijecJ arant. The location of all such meetings shall be within the Project or as close thereto as is practicable and the written notice of sucli mc't.'ling shall state the -10- 2391 location thereof, specifying the place, day and hour and, in the case of a special meeting, the nature of the business to be undertaken. 3.6 BOARD OF DIRECTORS: The Board shall un- dertake all duties and responsibilities of the Associa- tion ana the management and conduct of the affairs there- of, except as expressly is reserved herein to a vote of the Members. The initial Board consisting of three (3) Directors shall be appointed by Declarant. Such Board shall hold office until the first regular meeting of the Members of the Association. At said meeting a new Board of three (3) Directors shall be elected by secret written ballot of the Members to serve until the next regular an- nual meeting of the Association Members, or until their successors are elected, whichever occurs first. At each subsequent annual meeting, the membership shall elect a Board. At any such election where Class A Members do not have sufficient votes to elect a Director to the Board, special procedures shall be adopted to assure one (i) such Director is elected by Class A Members' votes exclu- sive of any of the votes of Declarant. 3.7 (^FNERAL_POi';EKS^_pUT]_ES MD AUTIjOKITY OF THE ASSOCIATION;' The Association shalT have all of the powers set forth in the Articles and the By-Laws, together with the general power lo do any and all things that a non-profit corporation oryoni/yd under the laws of the State of California may lawfully do; subject only to the limitations on the exercise of such power as expressly set forth in the Articles, the By-Laws and this Declaration. The Association shall have the power to do any and all lawful things which may be authorized, required or permit- ted to be done by the Association under and by virtue of this Declaration and to do and perform any and all acts which may be necessary or proper for or incidental to the exercise of any of the express powers of the Associa- tion or for the peace, health, comfort, safety and/or general welfare of the Owners and Tenants of the Owners. The Association may delegate any of its power to such committees, officers or employees thereof as a majority of the Board may deem appropriate. Without limi-ting the PI 2392 generality of the foregoing, the Association, for the benefit of all Condominiums and all Unit Owners, shall have the power, obligation and duty to enforce the pro- visions of this Declaration, and shall obtain and pay for out of the maintenance fund all of the following: A. Water, sewage, garbage, electrical, gas, telephone and other necessary utility service for the Common Area, and, to the extent not separately metered or charged, for the Units; B. Gardening and landscaping services for the Common area; C. Charges for maintaining, vacuuming and cleaning any portion of the Common Area; D. A policy or policies of fire and casualty insurance, with extended coverage endorsement, for the full insurable value of the Common Area, payable as provided in Article VII hereof, or such other fire and casualty insurance as the Board shall determine give substantially equal or greater protection to the Association, Owners and their Beneficiaries, as their respective interests may appear. Each policy shall provide that it shall not be cancelled without at least thirty (301 days prior written notice to the Association and to each of the Unit Owners. The Board shall review the limits of such insurance for adequacy at least every year and shall increase or adjust the same, if necessary, to provide such coverage and protection as is customarily carried by prudent property owners in San Diego County, California. Said policy or policies shall provide for a separate loss payable endorsement in favor of the Beneficiary or Beneficiaries of each Condominium, if any. E. A policy of policies of comprehensive public liability insurance insuring the Association, the Declarant, the Board, and the Manager, if any, against any liability to the public or co the Unit Owners incident to the ownership and/or use of the Project and to protect against any liability to the public or to any Unit Owner S 2393 incident to the use 'of or resulting from any accident or intentional act occurring in or about the Common Area. The minimum limits o£ such insurance shall be determined by the Board and established to provide such coverage and protection as is customarily carried by prudent owners o£ similar property in San Diego County, California. The Board shall review the limits and coverage of such insur- ance at least every year and shall increase or adjust the same, if necessary, to provide adequate coverage and pro- tection to the Association, Board, and the Manager, if any. Such policy or policies shall contain a cross liabil- ity endorsement wherein the rights of named insureds there- under shall not be prejudiced as respects any action by one insured thereunder against another named insured. F. Any insurance acquired by the Board may be taken in the name of the Association, as trustee, for the use and benefit of the Board, the Manager, if any, and all Unit Owners. The Board may acquire any other types of insurance or insurance in amounts in excess of the limits provided above if the Board shall determine the same to be necessary or appropriate in its sole dis- cretion to fully protect the interests of the Unit Owners. G. WorJ-.L-r' s Coinpt-'nscj t i on Insurance to the extent necc-snary to comply with all applicable laws of the State oi California or the regulations o£ any governmental body or authority having jurisdiction over the Project; H. Legal, accounting and management ser- vices necessary or proper for the maintenance and opera- tion of the Common Area or the enforcement of this Dec- laration, the Articles, By-Laws and the Rules; 1. All taxes and oiisessnion t s, if any, levied or assessed separately unj.iinst the Common area; J. Painting, mainl('nance and repair of tht Common Art-a, including Rc-.strictcd Common Area, in- cluding, as necessary, rep) ocumt.-nt ol components thereof on a reasonable .ind prudent scho-lule of rL-placejncnt; ..Of 2394 K. Any lien or encumbrance, including taxes, levied against any Unit which may constitute a lien against the Common Area; provided, however, the Board shall levy a special assessment against, such Unit for the amount thereof. Where one or more persons are responsible for the existence of such lien/ they shall be jointly and severally liable for the cost of discharging it and any costs incurred by the Board by reason of said lien or liens shall be specifically assessed to said Owners, including but not limited to attorneys' fees, if any. L. Maintenance and repair of any Unit if such maintenance or repair is necessary, is the discretion of the Board, to protect the Common Area or preserve the appearance and value of the Project, and the Owner or Owners of said Unit have failed or refused to perform said maintenance or repair within a reasonable time after written notice of the necessity therefore delivered by the Board to said Unit Owner. Tne Board shall levy a special assessment against such Unit for the cost of said mainten- ance or repair. M. Any other goods, materials, supplies, labor, services, painting, maintenance, repairs, struct- ural alterations, insurance, taxes or assessments which the Board is authorized to secure or pay for pursuant to the terms of this Declaration or which are reasonably necessary in the discretion of the Board for the convenient operation of the Common Area. N. All costs of enforcing the provisions of this Declaration, including attorneys' fees and court costs, provided that all costs incurred in the enforcement of the provisions of this Declaration against any Unit Owner shall be assessed specially against such Unit. 3.8 CAPITAL IMPROVEMENTS: The Association may purchase or construct capital improvements in the Common Area and assess the owners for the costs thereof, provid- ed that if the cost of such capital improvement, includ- ing furniture and fixtures, shall be in excess of five percent (5%) of the budgeted gross expenses for the current -00 2395 fiscal year of the Association, t.he authori zation of such purchase roust be by the affirmative vote of at least two-thirds (2/3) of each class cf membership voting in person or by proxy at a meeting duly called for such purpose; provided, however that no such capital improvements shall be constructed without obtaining any and all approval s of governmental ayencies as may be required by law. No property owned by the Association having a fair market va3 ue in excess of five percent o.f the budgeted .Tin mini yross income of the Association shall be sold without the prior affirmative vote or wri tten consent of a majori ty of Die voting power of the Association residing in members other than the Dec!a rant. 3.9 POWER OF ATTORNEY: Whenever partition of the project may be had pursuant to California Civil Code Section 1354 (2), or thi s Dec!aration, each Unit Owner/ his successors and assigns, does hereby grant to the Association an irrevocable Power of Attorney to sell the entire Project for the benefit of all of the Unit Owners there- of, r>a i d power of sale to be exercised pursuant to California Civil Code Section 1355 (b) (9). 3.10 MAINTENANCE OF COMMON AREA: The Association shall have f xi 11 i»owi.-r and author i ty to act for and on bohal f of all Unit Owners, .ind shn 11 keep and mai nta in the Coirunon M'ea, in <joor3 condi I i on and > cp.i i r , i ncl vid i ng but not 1 imi ted to t he ma j n ton a nee of storm drains and thei r appurtences and accessories, curbs and gutters, asph.il t pavoniont, erosion and si 1 tat.ion control structuros ;md sha 11 provide for 1 ighting, landscaping, gardening, janitorial services as nr'oded, and shal 1 cause any and all other acts to be done which may be necessary to assure the maintenance of the Common Area in first class condition and repair, including, without 1 imitation, painting or staining of the exterior walls of any bui 1 clings and such other portions of the Common Area as the Board in its discretion dotermines to be necessary or as determined by the City Engineer. No contract executed by the Board of Materials and/or services for the Common Area shall exceed one year in duration unless the prior approval of a majority of the Association Members has boon first obtained by the Board. -15- ..Of 2396 3.11 MAINTENANCE RIGHTS OF CITY; The City shall have the right, but not the obligation, to" enforce this Declaration against the Association insofar as it relates to the maintenance and repair of the Common Area. In the event that the Association fails or refuses to maintain the Common Area as required by this Declaration! then and in that event the City shall have the right, but not the obligation, to enter into and upon the Common Area and/or the Units and maintain and repair the Common Area, or any portion or part thereof, when and if necessary, in the City's sole judgment, to protect the health, safety and general welfare of the Unit Owners, their employees, invitees, licensees and Tenants. The City shall have the right to recover all of its costs and expenses incurred in connection with such maintenance and repair by collec- tion as a real property assessment on a pro rata basis against all Units in the Project. 3.12 AUTHORITY FOR ENTRY FOR MAINTENANCE OR CONSTRUCTION: The Association or its agents may enter any Unit and any portion of the Common Area to which a Unit Owner has been granted an exclusive easement or license whenever such entry is reasonably necessary in connection with the performance of any maintenance or construction for which the Board is responsible. Such entry shall Lit- made with as little inconvenience to a Unit Owner as pruc.-t i coble .>nr) only ujion reasonable ad- vance written notice of at least twenty-four (24) hours, except in emergency r.ituations. 3.13 ANNUAL OPERATING STATEMENT; -The Board .ThaJl prepare an annual operating statement reflecting income and expenditures of the Board from the maintenance fund for the previous calendar year and the allocation thereof to tach Unit. A copy of such report shall be distributed to each unit Owner within ninety (90) days after the end of each fiscal year of the Association. The Board shall prepare a pro forma operating statement (budget) an<3 shall distribute same to Unit Owners a*. /east sixty (60) days prior to the foe<j i nn i n<j of encli fiscal year of thr* Associ o t ion. -16- Tall -Of 2397 The Board shall also prepare a balance sheet of an accounting date which is the last day of the "month closest in time to six {61 months from the date of clos- ing of the first sale by Declarant of a unit in the Pro- ject and an operating statement for the period from the date of such first closing to the said accounting date and shall distribute same within sixty (60) days after the accounting date. Th~is operating statement shall in- clude a schedule of assessments received ana receivable, identified by the number of the Unit interest and the name of the person or entity assessed. 3.14 ADDITIONAL INSURANCE BY UNIT OWNER: No provision contained herein shall be construed to prevent any Unit Owner from obtaining such additional insurance coverage as such Owner may consider necessary or desirable to protect himself or his Condominium. 3.15 MANAGER: The Board may, but shall not be required to, empToy a professional manager or management company to assist it in the management and operation of the Project. The Board may, but shall not be required to, delegate the daily management duties to said Manager, who shall be subject to the direction an<] control of the Board. Any cont.ract with such professional manager or T.ar.ogement company, and the con.penr.at ion to be paid, for a term in excess of one year must be approved by at least fifty-one pi-rce/nt (511) of the Members of each Class of the Association entitled to vote. 3.16 COHSOLIRATIONS ANO HEHGERS; To the extent ptru.it led by jaw, the Associat ion~may participate in mer- gers and consolidations with other non-profit associations or corporations organized for the same purposes of the Association, provided that any such merger or consolidation shall have the assent of a two-thirds (2/3) of the voting povc-r of each class of Members voting in person or by proxy at a meeting duly called for this purpose. Written notice of said int-cling, which notice .-.hall set forth the purpose of the meeting, shall be qivcn to all Members .it Jeii::t thirty (30) d.iys in I'jdv.mcL1 ol Hit.' meeting. 3.17 UF.P1CATJON: The Association, as-the aijent of all Owners, r.h.ilf have"~lhe power to ih.licnte any of the CO:;.:',CJD Ar^-a to uri iippi opr i a t e public :iutliur i ly (or public -17- 2398 use, provided that any such dedication shall have the assent of seventy-five percent (75%) of each class of membership. 3.18 PROJECT RULES: A. The Board may, from time to time, and subject to the provisions of this Declaration, propose such Rules as the Board may deem necessary foi: the manage-ment of the Project, which gules shall become effective and binding on all Unit Owners after adoption by fifty- one percent (51%1 of each class of membership at a meeting duly called for that purpose, or by the written consent of the above number of Unit Owners appended to a copy of the proposed Rules. Such Rules appended to a copy of the proposed Rules. Such Rules may concern, but need not be limited to the following subjects: (1) Use of the Common Area; (2) Signs; (3) Collection and disposal of refuse; (4) Minimum standards of maintenance of the Common Area; and (5) Any other subject or matter with- in the jurisdiction of the Association as provided in this Declaration. B. With respect to Subparagraph A, above, the rules may, without limitation and to the extent deemed necessary by the Association in order to preserve the benefits of the Project for all owners, and the employees, invitees, licensees and Tenants of Owners, restrict and/or govern the use of the Common Area, by any Owner, employee, invitee, licensee or Tenant of such Owner; provided, however, that with respect to use of the Common Area, the Rules may notdiscriminate between Owners and the Tenants of Owners. Any conflict between such rules and this Declaration shall be resolved in favor of this Declaration, -1B- ' 2399 C. With respect to Subparagraph h, above, the Rules may include with respect to the Common Area, but not any public streets adjacent thereto: (1) Parking restrictions and limita- tions on the Common Area; 12) Limitations upon vehicular travel; and (3) The types of vehicles which may be permitted to use the Common Area. D. A copy of the Rules so adopted shall be furnished to each Unit Owner and each Unit Owner, his employees, invitees, licensees and Tenants shall comply with such Rules. 3.19 ENFORCEMENT; The Board shall have the power, obligation anO duty to enforce the provisions of this Declaration, the Articles, the By-Laws and the Rules. In the event of a breach of any of the restric- tions contained in this Declaration, the Articles, the By-Laws or of any Rules by a Unit Owner, his family, guests, employees, invitees, licensees or Tenants, the Board, for and on behalf of all other Unit Owners, may enforce the obligations of each Owner to obey such Rules or restrictions in any manner provided by law or in equity, including, but not litmted to, appropriate legal action, suspension of t-H- Owner's right to use the Common Area, or suspension of the Owner's voting rights; pro- vided, however, such suspension may not be for a period in excess of thirty (30) days, after notice and hearing as herein provided, for an infraction of such Rules. In addition to the other remedies herein sot forth, the Board, by majority vote, may levy a fine against such Owner, after appropriate notice and hearing as herein provided, in an amount not to exceed One Hundred Dollars ($100.00) for each such violation and the payment of such fine may be enforced in the same manner as set forth in Article IV hereof. Prior to imposing any penalty pro- 2400 provided herein for breach of any Rules enacted hereunder or restrictions contained in this Declaration, the f\rti- cles, the By-Laws, or the Rules, the Board shall send written notice to the Unit Owner specifying the nature of the infraction and provide an opportunity to the Unit Owner to a hearing before the Board regarding such infrac- tion and the penalty to be imposed. In the event that the Board determines that said infraction has occurred and that a penalty shall be imposed, after a reasonable opportunity for a hearing has been provided, the determi- nation of the Board shall be final. Notwithstanding any- thing to the contrary herein contained, neither the Board nor the Association shall have the power to cause a for- feiture of abridgement of an Owner's right to the full use and enjoyment of his individually owned Unit on ac- count of such Owner's failure to comply with the provi- sions of this Declaration, the Articles, the By-Laws or any Rules except when such loss of forfeiture is the re- sult of a judgment of a court or a decision arising out of arbitration or on account of a foreclosure or under the power of sale herein granted for failure of the Owner to pay the assessments levied pursuant to the provisions hereof. In the event legal action is instituted by the Board pursuant to this Paragraph 3.19, any judgment ren- dered in any such action shall include costs of collec- tion, court costs, and reasonable attorneys' fees. 3.20 NOTICE OF INCUMBENCY: The Board shall record with the County Recorder of San Diego County, California, a notice stating the names and addresses of the persons elected to the Board. After the recordation of the first such notice, any two (2) persons who are designated of record as being members of the most recent Board, regardless of whether or not they shall still be members, may execute, acknowledge and record an affidavit stating the names of all of the members of the current Board. The most recently recorded of such notices shall be prima facie evidence that the persons named therein are all of the incumbent members of the Board and shall be conclusive evidence of the exercise of any authority thereby as to any bona fide purchaser or other third person who supplies labor or material to the manager, or •-<&<;'-a ...0( 2401 to any oLher person who relies thereon in good faith. 3.21 LIABILITY OF DIRECTORS: No Director shall be personally liable to any o£the Members or the Associ- ation or to any other person, including Declarant, for any error or omission of the Association, its representa- tives and employees, provided that such Director has, upon the basis of such information as may be possessed by him, acted in good faith. ARTICLE IV MAINTENANCE ASSESSMENTS AND ASSOCIATION FUNDS 4.1 COVENANTS FOR MAINTENANCE ASSESSMENTS: Ueclarant hereby covenantsfor each Unit owned by it with- in the project, and each Owner of any Unit by acceptance of a deed therefor, whether or not it shall be so expres- sed in any such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association the assess- ments levied pursuant to this Article IV and thereby vest in the Association the right, pout-r and authority to bring all actions for the collection of such charges and for the enforcement of the lien created hcroby. Such right and power shall continue in the Association, and such obligations shall run with the land so that each succes- sive Owner of record of a Unit in the Project shall in turn become liable to pay all such assessments which shall become a lien thereon during -he time he is-the record owner of any Unit in the Project. Each assessment levied by the Association under this Article IV shall constitute a separate assessment. Each assessment, together with interest thereon, costs of collection and reasonable attorneys' fees, shall be a charge on the Unit and shall be a continuing lien upon the unit aij.i nst which each such assessment is made. The Associat on, as the agent of all Unit Owners, shall have a sopor te lien, and a separate lien with powur of solo is In.- t-by created upon each Unit against which nn asso^sinr.-nl s made Lo secure the payment of any osscsr.immt:; umli-r this Article IV, or any other amount owed as previously set forth herein. -21- Ji- 2402 Each i'.ich lien for any particular month's charge shall likewise secure interest thereon if i*e same is not paid when due, and costs of suit and reasonable attorneys' fees to be fixed by the court if action or suit is brought to collect such charge. The priority of all such liens shall be in inverse order so that upon the foreclosure of the lien for a particular month's charge, any foreclosure sale pursuant thereto will be made subject to all liens securing the respective monthly charges on such Unit for preceding months. Each such assessment, together with such interest, attorneys' fees and costs of collection shall also be a separate, distinct and personal obliga- tion of the Unit Owner of the Unit at the time when the assessment fell due and shall bind his heirs, devisees, personal representatives and assigns. The personal obli- gation for delinquent assessments shall not pass to an Owner's successor in title unless expressly assumed by such successor, but the lien for such delinquent assess- ment shall remain and if unpaid by such successive Unit Owner, it may be foreclosed as herein provided. No such assumption of personal liability by a successor Unit Owner shall relieve any Unit Owner personally obligated hereby for delinquent assessment for such Owner's per- sonal liability therefor. After a record Unit Owner shall transfer of record title to his Unit, he shall not be liable for any charge thereafter assessed against such Unit. A contract seller of any Unit shall continue to be liable for all such charges until a conveyance by him of the Unit subject to Iht asucsument is recorded in the Office of the County Recorder of San Diego County, Cali forn in. 4 . 1- NORTHl_.y_ ASSESSMEKTS: *• JillS.H-Lail AKSCGMiL-nLs: The uoni'd shallestablish regular monthly".-iss'css'nicrit"s"Tor o^.-ration and mai/Uc-nance of Hit Project by ihc j>i occ'ilurcs cslalil ishc-din thin Paragraph 4.2. The: Ar,sc;;snic'nts filial! be due andpayable in monthly installments on the first day of each month during the continuance of this D'.'cl.'iration commenc- ing on the first day o£ the 1 i rst jnorith following close of escrow of the first sale by nuclarant of a Unit in the1'rojc-cl. -22- 2403 B. Budgeting; On or before the_ first business day of the first month following close of escrow of the first sale by Declarant of a Unit in the project, the Board shall prepare and distribute to each member a pro forma operating statement (budget) estimating the total expenditures to be paid out of the maintenance fund including a reasonable reserve for contingencies and re- placement for the remainder of the fiscal year, and shall assess the total of said charges to all Unit Owners, in- cluding Declarant in proportion to each Unit Owner's ownership interest in the Common Area; provided, however, that, notwithstanding the foregoing, the assessment for reimbursement of the costs of providing garbage collec- tion services may, in the Board's reasonable discretion, be allocated among the respective "nits in accordance with the estimated share of such costs as are allocable to each Unit; and provided, further, that in the event that the activities of one (1) or more of the Unit Owners results in an increase in insurance premiums, the assess- ment for reimbursement for such increased insurance prem- iums shall be allocated among the Units in accordance with the additional cost of such insurance premium allo- cable to each Unit. Within sixty (60) days prior to the beginning of each subsequent fiscal year, the Board shall estimate the total charges to bo |Mirl out oC the mainte- nance fund during such year (including a reasonable re- serve for contingencies nnd less any expected surplus from the prior year), and distribute a copy of a pro lorma operating statement (budget) to each Member; provi- ded, however, the board may not, without the prior vote or written consent of a majority of each class of Members of the Association, impose a regular annual assessment per Unit which is more than twenty percent (20%) greater than the regular assusuiiicnt pur Unit lor the immuriiatcly preceding fiscal year. All funds budgeted, allocated, assessed and collected for contingencies, deferred main- tenance and replacement of capital improvements shall be designated for that purpose and said funds shall be usc:d solely for that specific purpose for which said funds have been designated. Prior to the end of each calendar year, the Members shall receive an accounting of assess- ment receipts and disbursements for that calendar year. If such accounting shows that a surplus of cnsh~results. -23- -Of 2404 the Members shall vote as to whether to refund all or part of such surplus or as to whether such surplus shall be carried over to future assessment periods and applied to reduce future assessments. The Association shall allocate and assess said total charges to each Unit Owner in proporation to their respective ownership interests in the Common Area. C. Additional Assessments: In the event the Association is required to make any expenditure, the necessity for which was not foreseen at the commencement of the calendar year, or if the Board's original estimate of the annual assessment is inadequate and there are not sufficient funds available in the maintenance fund, the Board may levy an additional assessment, which additional assessment shall be charged to all Lnit Owners in accord- ance with their respective percentage ownership interests in the Common Area, except as otherwise expressly provid- ed herein; provided, however, tha Board shall not in any fiscal year of the Association, levy additional assess- ments 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 unless the prior vote or written consent of a majority of each class of Members of the Association is first obtained. 4.3 SPECIAL ASSESSMENTS; In addition to the regular assessments authorized by Paragraph 4.2 hereof, the Association may levy, in any calendar year, a special assessment in the same proportion as the respective ownership interests of the Unit Owners in the Common Area which shall be applicable to that year only for the pur- pose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or re- placement of a described improvement upon the Common Area, including the necessary fixtures and personal pro- perty related thereto; provided that any such assessment shall have the assent of two-thirds (2/3) of each class of its membership, voting in person or by proxy, at a meeting duly called for this purpose. Written notice of such meeting shall be given to all Members at least thirty(30) days in advance and shall set forth the purpose of the meeting. No such special assessment shall be levied -24- 2d05 prior t.o the commencement of the monthly assessments as provided herein. The provisions of this Paraqraph 4.3 shall not apply in case of the Association levying an assessment against an Owner under Paragraoh 4.4, for costs incurred in bringing the Owner and his Unit into compliance with provisions of this Declaration, the Articles, the By-Laws or the Rules. 4.4 REIMBURSEMENT ASSESSMENTS: The Board shall levy a reimbursement assessment against the Unit Owner and the Unit owned by each Owner whose failure to comply with this Delcaration, the Articles, the By-Laws or the Rules has necessitated an exnenditure of monies by the Association from the maintenance fund to bring such Owner and Unit in compliance with said instruments or in otherwise performing its functions under this Declaration. Such assessment shall be for the purpose of reimbursing the Association, shall be limited to the amount so expended and shall be due and payable to the Association when levied. Any such reimbursement assessment shall be levied in accord- ance with Paragraph 3.19 of this Declaration. 4.5 NON-WAIVER OF ASSESSMENTS: The omission by the Board, before the expiration of any year, to fix the assessments hereunder for that or the next year, shall not be deemed a waiver or modification in anv re- spect of the provisions of this Declaration, or a release of any Unit Owner from the obligations to pay the assess- ments, or any installment thereof for th«L ^" any subse- quent year, but the assessment fixed for the preucding year shall continue until a new assessment is fixed. No Unit Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Unit. 4.6 ENFORCEMENT: Each Unit Owner of a Unit on becoming such Owner is and shall be deemed to covenant and agree to pay to the Association each and every of the assessments provided for in this Declaration and shall be deemed to covenant and agree to the enforcement of all such assessments in the manner herein specified. In the event an attorney or attorneys are employed for collection of any assessment, whether by suit or otherwise, or to •00 2406 enforce compliance with or specific performance of the terras and conditions of this Declaration, each Unit Owner agrees to pay reasonable attorneys' fees and costs thereby incurred in addition to any other amounts due or any other relief or remedy obtained against said Unit Owner, and the same shall be included in any judgment in any suit or action brought to enforce collection of delin- quent assessments. Any assessment not paid when due shall be deemed to be delinquent. Any assessment not paid within thirty (30) days after the date on which it be- comes due shall thereafter earn interest from the date of delinquency at the rate of ten percent (10%) per annum. In addition to any other remedies herein or by law pro- vided, the Association, or its authorized representative, may enforce the obligations of the Owners to pav the assessments provided for in this Declaration, and each of them, in any manner provided bv law or in eauitv, and without any limitation of the foregoing, by either or both of the following procedures: A. Enfprcemen[t_ by Suit: By commencement and maintenance of a suit at""law against any Unit Owner or Owners personally obligated to pay assessments Jfor such delinquent assessments as to which they are person- ally obligated, such suit to be maintained in the name of the Association. Any judgment rendered in any such action shall include the amount of the delinqnenc", together with interest thereon, costs of collection, court costs and reasonable attorneys' fees in such amount as the court may adjudge against the delinquent Unit Owner. Suit to recover judgment for unpaid assessments shall be maintainable without foreclosing or waiving the lien hereinafter provided for. B. En.£g_rcement by Lien: There is a present lien, with power of sale, on each Unit to secure payment to the Association of any and all assessments levied against such unit pursuant to this Declaration together with interest thereon as herein provided, and all costs of collection which may be paid or incurred by the Association in connection therewith, includino reason-able attorneys' fees. No action shall be brought to foreclose the lien securing an unpaid assessment until .2407 Notice of Assessment Due signed by the Boat-d, or by any Unitj Owner if the Board fails or refuses to act, has been delivered to the Unit Owner of the Unit subject to such assessment., and a copy of such Notice recorded in the Office of the Recorder of San Diego County, California. Said notice shall state the amount of the assessment to- gether with the interest, costs and reasonable attorneys' fees, a description of the Unit against which the same has been assessed and the name or names of the record Unit Owner or Owners thereof. After the expiration of thirty (30) days from the date such Notice of Assessment Due has been recorded an action may be commenced in the name of the Association to foreclose the lien or such action may be commenced by any Unit Owner if the Associa- tion fails to act. Upon t-he declaration of an assessment and the recording of notice thereof, the Association may, at its option, declare the entire balance of all sums then due or to become due from the Unit Owner due and payable, which total sum may then be included in any suit, action or proceeding brought to collect said sum, including all costs, charges and attorneys1 fees. Not- withstanding anything contajnc-d in this Declaration to the contrary, no action may be brought to foreclose the lien created herounder, whether judicially, by power of sale, or otherwise, until the expiration o£ ten (10) days after a copy of said Notice of Assessment Due, showing the- date of recordatiijn thereof has been mailed to tht Unit Owner of the Unit which is described in such Notice. Each Unit Owner does hereby waive, to the extent of any liens created pursuant to the Declaration, whether such liens are now in existence or are created at any time in the future, the benefit of any homestead or exemption laws of the State of California now in efftct, or in L-ffuct from lime to time hereinafter. 4.7 P9y»£K or FOKKCUWURK AND _BM_,E: Eneli ol the Unit Owne-rs OorJs hi-rcby gr.irit aiid ;ifjpoTnt the Associ- ation as trustee to enforce- nny lien croatc'd pursuant to this Dc-cl ar.i t i <>n and Lo force lor.i.- such li<?n by private j*owtr of suit- .,s j'rovjfJcfJ i i) Title- 14, '."!».*(>ier 2r_ArtJcJe -27- 2408 I of the California Civil Code and California Civil Code Section 1356, as such statutes may be revised, amended or altered from time to time, or by judicial foreclosure, and does further grant the Association, as such Trustee, the power and authority to sell the Unit of any such defaulting Unit Owner, or any part thereof, to satisfy said lien, for lawful money of the United States to the 'highest bidder. The lien provided.for herein shall be in favor of the Association and shall be for the benefit of all Unit Owners and shall secure payment of all suras set forth in the Notice of Assessment Due together with all sums becoming due and payable in accordance with this Declaration after the date of recordation of said Notice of Assessment. The Association shall have the power to bid in at any foreclosure sale and to purchase, acquire, hold, lease, mortgage and convey any Unit. In the event such foreclosure is by action in court, reasonable attorneys' fees, court costs, title search fees, interest and all other costs and expenses shall be allowed to the extent permitted by law. Each Owner, by becoming an Owner of a Unit, hereby expressly waives any objection to the enforcement and foreclosure of the lien created in this Declaration in the manner set forth herein and also hereby expressly waives the defense of the Statute of Limitations applicable to the bringing of any suit or action thereon. Any judgment secured hereunder against an individual Unit Owner shall thereupon likewise become a lien on the Unit if said Owner is still the Unit Owner or subsequently becomes a Unit Owner of any type (until paid). The power of sale and enforcement herein is intended to reside first in the Association but thereafter, if not exercised, fully, in each individual owner/member. 4.8 STATUS OF -ASSESSMENT LIEN: Upon request by any Unit Owner, the Association will furnish, for the benefit of any prospective purchaser or present or prospective encumbrancer of such Unit, a statement showing all amounts then due which are secured by such lien. A reasonable fee, not to exceed Fifteen Dollars ($15.00) may be charged for the preparation of such statement. 4.9 CERTIFICATE OF DISCHARGE OF LIEN: Upon payment of the delinquent assessment or the satisfaction thereof, the Association shall cause to be recorded in the same manner as the Notice of Assessment Due a further certificate stating satisfaction and release of the -28- •00 2409 lien thereof. A failure to record Said certificate of discharge without good cause within thirty (30) days after written demand by the Unit Owner of the affected Unit shall entitle him to recover a penalty of Three Hundred Dollars ($300.00) from the Board plus his actual damages. 4.10 SUBORDINATION OF LIEN TO ENCUMBRANCE; Not- withstanding any provision to the contrary herein contained: A. The lien, for assessments created by this Declaration shall be.subject and subordinate to and shall not affect the rights of the holder of any recorded first mortgage or first deed of trust upon such Unit made in good faith and for value. In the event any lien imposed under the provisions hereof ia destroyed by reason of the foreclosure of any mortgage or deed of trust on the Unit subject to such lien, there shall be a lien on the interest of the purchaser at such foreclosure sale to secure all assessments, whether regular or special, charged to such Unit after the date of such foreclosure sale, which lien shall have the same effect and be enforced in the same manner as provided herein. For purposes of this Paragraph, a mortgage or first deed of trust may be given in good faith or for value even through the mortgagee or the beneficiary of such first mortgage or deed of trust has constructive or actual knowledge of the assessment lien provisions of this Declaration, B. No amendment of this Paragraph shall affect the rights of the holder of any such mortgage or deed of trust recorded prior to recordation of such amendment unless the mortgagee or beneficiary thereof joins in the execution of such amendment. 4.11 ASSOCIATION FUNDS: The assessments coll- ected by the Association shall be properly deposited into two separate bank accounts selected by the Board, which accounts shall be clearly designated as the -29- 2410 "FARADAY OWNERS ASSOCIATION Current Maintenance and Operation Account" and the 'FARADAY OWNERS ASSOCIATION Deferred Capital Maintenance and Replacement Account". The assessments collected by the Association shall be held in trust by the Association for and on behalf of each Unit Owner and shall be used solely for the operation, care and maintenance of the project as -provided in this Declaration. The Board shall allocate a portion of said funds as collected for the annual maintenance and operation of the project as specified in the annual budget and the Board shall allocate a portion of said funds as collected as reserves for contingencies, replacement and deferred maintenance of the capital improvements of the project as specified in the annual budget. Said funds shall be deposited, as allocated, into the appropriate bank accounts and said accounts shall be separately maintained by the Association. Upon sale or transfer of any Unit by any Owner, the Owner's interest in the trust funds shall be deemed auto- matically transferred to the successor or transferee of such Owner. In the event that the Board retains a professional management service, the Board may delegate the authority to deposit or withdraw funds to responsible representatives of the professional management agent so retained. Said professional management agent may additionally be authorized to establish a common trustee account for deposit of assessments as collected. Any funds deposited in such a common trustee account shall be allocated as previously specified herein. 4.12 BOOKS OF ACCOUNT: The Board shall maintain full, complete and correct books of account of the operation of the project and vouchers supporting expenditures and the same shall be open during all reasonable hours for inspection by any Unit Owner. Any Unit Owner may at any time and at his own expense cause an audit or inspection to be made of the books and records of the Association. Said books and records shall accurately detail in chronological order the receipts and expenditures affecting the Common Area, specifying and itemizing the maintenance and repair expenses of the Common Area and any other expenses incurred. ...Of 2411 :. • All other books, records and papers of the Asso- ciation, including, without limitation, the membership register, minutes of meetings of the Board, Members or committees of the Association, this Declaration, the Articles and the By-Laws, shall also be open during all reasonable hours for inspection and copying by any Unit Owner or his duly appointed representative. The Board shall establish reasonable rules with respect to: (1) Notice to be given to the custodian of such books, records and other papers by a Unit Owner desiring to inspect and/or copy the same; (2) Hours and days of the week when such in- spection and/or copying may be made or done; and (3) Payment of the cost of copying books, rec- ords or olhc-r papers requested by a Unit Owner. Every Director shall have the absolute right at any reasonable time to inspect all books, records and other papers of the As sue i fit ion and the properties owned or controlled by the Association. The right of inspection by a Director includes the riyht to make extracts and copies of any iind all such books, records and other papers. MtTJCi.E v I'SKS, HtSTUCTlONS AND COVENANTS A. Commercial C'ondoini ni urn Units: Each Coj.tK.-rci a J Coi>Ju;ninium~UnTf shall "be °u!Te"d~for' services '.•GMiOnly fi.uni) in a 'professional ol'l'iru I'omplex and the -31- ...0' 2412 warehousing of goods, materials, supplies, merchandise and other matters commonly found in commercial warehouses, and for such light industrial uses as may be consistent with the zon-'ng classification of the project. B. Rental of Units; Any rental or lease of a Unit shall be subject to this Declaration and the rules and regulations established by the Board pursuant to Section 3.IB of this Declaration. Each such rental or lease shall be by written lease or other agreement specifying that the Tenant shall be subject to all provisions of the Declaration, the Articles, and the By-Laws, and the Rules, and that a failure to comply therewith shall be a default under such lease or agreement. The Unit Owner shall be responsible for the Tenant's compliance with all provisions of this Declaration, the Articles, the By-Laws and the Rules pertinent to the occupancy and use of the Unit and the use of the Common Area. C. Use of Common Area: There shall be no use of the Common Area except by the Owners thereof, their employees, invitees, licensees or Tenants. There shall be no obstruction of any'part of the Common Area. Nothing shall be stored, kept, or parXed in the Common Area, without the prior consent of the Association. No storage closet, locker or facility of any kind shall be built, placed, or kept in any part of the Common Area without the prior approval of the Board. Nothing shall be done or kept in the Common Area which will increase the rate of insurance on any of the Project facilities without the prior written consent of the Board. No Unit Owner shall permit anything to be done or kept in the Common Area which will result in the cancellation of insurance on any Unit or any part of the Common Area or which would inter- fere with rights of other Unit Owners or which would be noxious or offensive to other Unit Owners or which would be in violation of any governmental statute, ordinance, rule or regulation. No waste shall be committed in the Common Area. D. Use of Units: No Unit Owner may permit or suffer anything to be done or kept upon, in, or about his Unit which will obstruct or interfere with the rights of other Unit Owners or annoy other Unit Owners by unreasonable noise, smell or otherwise, or which will be nxious or offensive to other Unit Owners. Each unit Owner shall comply with all of the requirements of all governmental authorities,_ federal, state and local, and all laws, ordinances, rules, and regula- tions applicable to his Unit. No Unit may be used as a residence. -32- IMH -Of 2413 E. Care of Unit and Appurtenances: Each Unit Owner shall keep the interior of his individual Unit, and all fixtures, appliances and appurtenances therein or thereto in good condition and repair. F. Uniformity of Exterior Appearancet No Unit Owner shall place in the windows of his Unit, if any, any drapery, shade, blind or other window covering which causes the exterior appearance of the Property to become non-uniform, except with the prior consent of the Board. The Board shall have the power to designate specific requirements to effectuate the provisions of this Subparagraph. G. Common Rrea Improvements: No person other than the Board and its duly euthorized agent shall construct, reconstruct, refinish or alter any improvement upon the Common Area. H. Unauthorized Vehicles; No dilapidated automobile, boat, trailer, recreation vehicle, camper, truck or other such vehicular machine shall be parked or left in any part of the Project. There shall be no rapair or reconstruction of automobiles within the Project except for emergency vehicle repairs, except as may otherwise be expressly authorized by the Board, in its sole discretion and determination. The Association may remove or cause to be removed any unauthorized vehicle at the expense of the owner thereof in any manner not inconsistent with law. I. Signs. No sign of any kind shall be installed or displayed on or from any Unit or the Common Area except with the prior consent of the Board. All signs shall be located in the areas designated on the signage plan for the Project which has or will be filed with the City, or in such areas as are subsequently designated by the City by applicable ordinance. All signs shall be of a type and color and constructed of materials in accordance with such signage plan or applicable City ordinance. The total surface area of all signs shall be as determined in accordance with applicable City ordinance. All signs located in or at the Project shall be wall-mounted and shall utilize individual letters without illumination. Notwithstanding the foregoing, any Unit owner, the Association, and/or Declarant may maintain any sign required by legal proceedings. Unless legally required to the contrary, or specifically authorized by the board, all signs shall comply with the specifications set forth in Exhibit "6" attached hereto. _ J. Parking: There shall be no over-night parking of motor vehicles except in the parking areas located at the rear of the buildings. -33- 24H K. structural Integrity; Nothing shall 'be done in any Unit or in, on, or to the Common Area which will impair the structural integrity of the Project. No devel- opment shall be made of the air space above any Unit or • the Common Area, without the approval of the Board. L. animals; No animals of any kind shall be raised, bred or kept in any Unit or in the Common Area. M. Easements; As recorded on the property, there exists certain reciprocal access easements, fire service easements and subdrain and sump pump easements on the property. No interference therewith shall occur and any damage, inter- ference or other liability with regard thereto shall be born by the causing or interfering Unit/Unit Owner. Notwithstanding the foregoing, the ongoing maintenance costs of said easements attributable to the Project shall be part of the assessments and monetary obligation of the Unit Owners N. Storage of Waste Materials: All garbage, trash and accumulated waste material shall be placed and kept in covered containers within each Unit or within an enclosed garbage collection area which shall be maintained by the Association. No garbage, trash or other waste material shall be accumulated or stored outside of a Unit or the enclosed garbage collection area maintained by the Association except at pick-up times specifically deisgnated by the Association. All garbage, trash and other waste materials shall be kept in closed containers at all times. The Association shall have the right and obligation to enforce the provisions of this Paragraph 5.1M by arranging for the unscheduled collection of accjmulated garbage and assessing a reimbursement assessment against the defaulting Unit Owner in accordance with Paragraph 4.4 of this Declaration. The Association shall further have the right and obligation to enforce any applicable City ordinance relating to refuse disposal in accordance with the foregoing. 5.2 MAINTENANCE BY UNIT OWNER: The Associatioii shall have the exclusive right to contract for all goods and services, payment for which is to be made from the maintenance fund. Each Unit Owner shall have the exclusive right, at his sole cost and expense, to maintain, repair, paint, paper, panel, plaster, tile and finish the interior surfaces~of the ceilings, floors and the perimeter walls of his Unit and surfaces of the bearing walls located within said Unit, and the surfaces of any other finishes owned by the Unit Owner as herein defined. -34- ...00 2415 Said Owner shall have the exclusive right to substitute new finished surfaces for the finished surfaces then existing on soid ceilings, floors and walls, including, without limiting the generality of the foregoing, the following: substitution of paint for paper or paper for paint, substitution of wood for linoleum or tile, or linoleum or tile for wood. Said Owners and their agents . have the exclusive right to maintain, repair, paint, finish, alter, substitute, add, or remove any fixtures attached to said ceilings, floors or walls. This Para' graph shall not be construed as permitting any interference with or damage to the structural integrity of the building. The Unit Owner shall be responsible and liable for the maintenance and replacement of the finishes of the interior walls, floors, and ceilings of the Unit. \.C- 2416 5.3 ALTERATIONS OR ADDITIONS: A proposal for any structural alteration or addition to the Common Area may be made at any regular or special meeting of the Asso- ciation, provided that said proposal shall be accepted only upon the affirmative vote of at least two-thirds (2/3) of each class of voting Members. Unless otherwise agreed at the meeting of such Members, the cost of the alteration or addition so approved shall be paid from the maintenance fund, and the Association shall levy a special assessment to cover said cost, which shall be shared among the Unit Owners in proportion to their respective Inter- est in the Common Area. The construction or Installation of interior partitions which do not affect the structural integrity of the Project and which are constructed by a Unit Owner or such Unit Owner's lessee shall not require the consent of the Board. 5.H PARTITIONS: Each interior partition con- structed or installed to separate or separating individ- ual Units shall constitute a party wall, and, to the ex- tent not Inconsistent with this Declaration, the general rules of law regarding party walls and liability for prop- erty damage due to negligence or willful acts or omis- sions shall apply thereto. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in proportion to such use. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and If the other Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in proportion to such use without prejudice; subject, how- ever, to the right of any such Owners to call for a larger contribution from the others under any rule of law regar- ding liability for negligent or willful acts or omissions. Notwithstanding any other provision of this Section, an owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements. The right of any owner to contribution from any other owner under this Paragraph shall be appurtenant to the land and shall pass to such Owner's successors in title. In the event of any dispute arising concerning a -36- 2417 party wall, or under the provisions of this Paragraph, such dispute shall be submitted in writing to the Board for its review, and the written decision of the Board shall be final and binding on the parties. ARTICLE VI EASEMENTS 6.2 UTILITIES: Thert is reserved for the bene- fit of each Unit, as dominant tenement, an easement ^or utility services over, under and through the Project, in- cluding the Common Area and each other Unit, jointly, as the servient tenement. 6.3 ENCROACHMENTS MtO PARTITIONS: There is reserved for the benefit of each Unit, as dominant tene- ment, an easement for encroachment, support, occupancv and use of such portion of the Project and each other Unit and the Common Area jointly as the servient tenement, as shall be encroached upon, used and occupied bv the dominant tenement as a result of any accretion, erosion, addition, subsidence, deterioration, decay, construction errors, movement or subsidence of any residence buildinn or structure or any portion thereof or any other cause. The easement of encroachment may be cured bv repair and restoration of the structure. 6.4 REPAIRS: There is hereby reserved to the Association an easement appurtenant to the Common Area and all other Units, as dominant tenements, through each Unit, as servient tenement, for the maintenance and repair of the Common Area . -37- 2418- 6.5 INGRESS AND EGRESS: There is hereby reserved to each Unit,as dominant tenement, a nonexclu- sive easement appurtenant to each Unit over and across the Common Area, as servient tenement for ingress and egress, and use and enjoyment of s^id Common Area subject to the limitations provided in this Declaration. 6.6 EMERGENCY ESCAPES: There is reserved for the benefit of each Unit, as dominant tenement, an ease- ment for ingress and egress from and to the fire escaoes and other emergency exits over, across and through the other Units and the Common Area, jointly as the servient tenement to be used only on an emergency basis. ARTICLE VII DAMAGE OR DESTRUCTION OF BUILDING: CONDEMNATION 7.1 DAMAGE TO SINGLE UNIT: If the Project is damaged by fire or other casualty which is insured against and said damage is limited to a single Unit, the insurance proceeds shall be paid to the Owner or Owners of such Unit, or the Beneficiaries thereof as their respective interests appear, and such Owner or Beneficiary shall use the same to rebuild or repair such Unit. In the event the insurance proceeds are insufficient to complete such work, the Unit Owner shall pay and advance such additional sums as may be necessary to complete such rebuilding and repair. 7.2 DAMAGE TO TWO OR MOKE UNITS OR COMMON AREA: If such damage extends to two (2) or more Units or extends to any part of the Common Area, then and in that event: A, If the amount of available insurance proceeds is at least eighty-five percent (85%) of the cost of repairing or rebuilding the damaged property to its original design and specifications, the insurance proceeds shall be paid to the Association, and the Board shall thereupon contract to repair or rebuild the damaqed por- FIT -,.C' 2419 tions of the Project, including all Units, and the Common Area so damaged. In the event the insurance proceeds are insufficient to pay all of the costs of repairing and/or rebuilding, the Board shall levy a special assessment against all Unit owners in proportion to their interest in the Common Area to make up any deficiency; provided, however, that the power_to levy such special assessment shall be subject to a prior vote or written consent of a majority of each class of members of the Association if the assessment would cause additional assessments levied in that fiscal year to exceed five percent (5%) of the budgeted gross expenses of the Association for that fiscal year. B. In the event that the amount available from such insurance proceeds is less than eighty-five percent (85») of the cost of repairing or rebuilding, or the vote of the Association disapproves the levy of an additional assr-psment, then such insurance proceeds shall be paid to a bank, savings and loan association or trust company designated by the Bo.'ird. Such funds shall be held for ttie benefit of all Unit Owners and their mortgagees, as their respective interests shall appear, pursuant to an insurance trust agreement consistent with the provisions of this Declaration approved and executed by the Board. The Board shall obtain bids from responsi- ble contractors to restore the project, including all damaged Units and all damaged Common Area to its condi- tion immediately prior to such damaye or destruction and shall, as soon as possible, call a special meeting of the Association Members and all first mortgagees of record to consider such bids. At such special meeting, the Members shall accept or reject such bids by a vote of not less than sixty pon:i.-nt (dO'i) of i.-och cliiss of voting niuir.bi.-ru and seventy-five percent (75K.) of the first mortgagees attending such meeting. In the event a bid is ai-copteri, tin1 Board shall levy a special assess- ment against all Unit Owners in proportion to their interest in the Con.mon Area to make up the deficiency, if any, between the total i nsur.'jnre proceeds and the contract pricu for ;;uch repair or rebuilding. All insur- ance proceeds, including any !-.uliji;cl to lions of Burn;fie- If* -39- -0' 2420 iaries shall be used for such rebuildinq or repair. I*: any bid shall be accepted to repair or rebuild, the contractor shall provide a completion bond naminq the Association and each Unit Owner as beneficiaries. In the event all bids are rejected/ thr> Board shall recom- mend such alternative reconstruction of the damaged or destroyed improvements at a lesser cost as it deems reasonable or adequate which alternatives shall be placed to bid and voted upon as previously provided. In the event that no such alternatives are accepted by the Owners and first Beneficiaries, then the Board is hereby empowered to, as the agent for all Owners, sell the entire Project, including all Units, and the Common Area in its then present condition, on terms satisfactorv to the Board. The net proceeds of such sale, together with the insurance proceeds, shall thereupon be distributed to the Unit Owners and/or to the Beneficiary of anv mortgage or deed of trust upon any Unit as their respec- tive interest may appear in proportion to their ownership interests in the Common Area. 7.3 CONDEMNATION OF COMMON AREA: If at any time all or any portion of any Common Area, or anv inter- est therein, be taken for any public or quasi-public use, under any statute, by riqht of eminent domain or by pri- vate purchase in lieu of eminent domain, the entire award in condemnation shall be paid to the holder or holders of the fee title to such Common Area as their interests may appear. ARTICLE VIII RIGHTS OP MORTGAGEES AND TRUST DEED BENEFICIARIES 8.1 The trust deed beneficiaries of first deeds of trust or mortgagees of units in the subject property, herein called "Beneficiaries," shall be entitled to the following rights and privileges: A. Notice of Default: Beneficiaries, and/ or their successors and assigns, having so requested in -40- ...0' 2421 writing to the Association of such a notice, shall be entitled to written notification from the Association of any default by the mortgagor or trustor of anv Unit in the performance of such mortgagor's or trustor's mortga- gor's obligations under the Declaration, the Articles and the By-Laws which is not cured within thirty (30) days. B. Unpaid Assessments: Beneficiaries who come into possession of the Unit pursuant to the remedies provided in the mortgage or deed of trust for foreclosure of the mortgage or deed of trust, excluding, however, any conveyance in lieu of foreclosure, shall take the Unit free of any claims For unpaid assessments or charges against the Unit which accrue prior to the time such holder comes into possession of the Unit excent for claims for a prorata share of such assessments or charges resulting from a prorata reallocation of such assessments or charges to all Units including the mort- gaged Unit. C. Beneficiaries Approval: Unless at least seventy-five percent(75) o? the <*irst Bene'icia- ries, based upon one vote for each mortgage or deed of trust owned, of Units, or seventy-five percent (75%) of the Unit Owners have given their prior written approval, the Association shall not be entitled to: (1) By act or omission seek to abandon or terminate the condominium regimes; (2) Change the prorata interest or ob- ligations of any Commercial Condo- minium Unit for (a) purposes of levying assessments or charges or allocating distributions of ha2- ard insurance, proceeds or condem- nation awards, and for (b) deter- mining the prorata share of, ownor-ship of each Unit in appurtenant -41- 2-123 real estate and any improvements thereon which are owned by the Unit Owners in the project in undivided interests. (3) Partition for subdivision of any Commercial Condominium Unit. U) By act or omission seek to aban- don, partition, subdivide, en- cumber, sell, or transfer the Common Area. The granting uf easements for public utilities or for otVier public purposes con- sistent with the intended use of the Common Area by the Project shall not be deemed a transfer within the meaning of this claure. o (Si Use hazard insuranee proceeds for losses to i rrprovemen ts in the Project, who ther to Units or tf> Common .M oa , f ui* ot her than the- i-i_-pa i r , rept oct. .'nt-nt or recon- s L rue t i on of surh i mprcv ements , oxi I'i't -is pi ov i 'J'-d by st ;i Lute in r.ist1 of r.ub:; t ,int i a 1 Joss to I lie (jri j ts tjnd/or Common At ea of the project. C. Rc-c_ords ,>nj MOO t i ngs : Bone f i c i ar J cs shall have the r iaht"fo~eVanTi"ne the Looks and records of the As soc i :i I i en for the Connomi n i urn project. Upori request, Dt nef i c i u r i c- b sha 11 l-t- cnt i 11 crl i o ; ece i ve on annual un- sue} i Led f i r.j;r r ;,': J F l .j L ':in<?n t of L he' A.-JSOC i at i on within ninety (90) coys (allowing the- <«nil of wr i I ten not i ro of -'• 1 ) mcc-t i nijs v I t he per rr. i l tt/d I o de••- i f?no tc j I'CTJI-'.-K.CM t ,i t. i ii.ec-1 i ny i;. any f iscal ytac ai\d Abisoc i a t ion uiid be f.' to ill tend <T )) such ration sit a J 1 -*j i ve pt i<»i i l^: NO J On 1 1 owner , < v i:; ion of this, [Xn: 1 J- .iny other party, pr i oi - 2423 1 ty over any r icjhts of the Benepici,ir i es n-.irsnant '".o tht'i r mortqaqes or deeds of trust in the caso oc .1 d i s tr i but i on to the Unit Owners of insurance proceeds or condemnation awards for losses to or A takinn of Units and 'or Common Area, F. Man.iaenent: An" aqreemont cor profes- sional manaqement of the Condominium nro iect shall oro\'ide that the management contract may be terminated For c/iubo on thirty (30) days' written not ice nntl the term oe anv such contract shall not exceed one (!) year, renewable bv agreement of the parties for successive one-year periods. r,. Not ice __g f __ Damage: The Associ^t ion sha) 1 aqree to qive the Bcnof iciarios notice in wr i t in.i of any loss to, or takinq of, the Common Area in the Pro- ject if such loss or takinq exceed Von Thousand Dol lars (SIO.OOO.OO1 . H. Reserve Fund; An ndenuate reserve fund for replacement and maintenance of the Common Area must be established by the Association and be Bunded by reqular monthly asocssnionts of Unit Owners. v> ARTICLE IX MISCELLANEOUS PROVISIONS 9.1 MECHANIC'S LIENS: In case there sh/ill bo filed a Notice of Mechanic' s Lien aqainst the "roicei: for, or purporting to be for, labor or material aliened to have been furnished or delivered at the Project r>r anv Unit at the request of or "or the benefit o^ the Unit Owner, the Unit Owner shall forthwith cause such lien to be discharoed by payment, bonding nr otherwise. I* the Unit Owner shall fail tr» ^--uise such 1 ien to be discharaed by payment, bondinq or otherwise, the Board nvi" send wri tten notice to said Unit Owner speciFvinq that unless said Un it Owner discharges said lien within five (S) days from the date of said notice, then the Board mav cause said lien to be clischancd by payment or bond or otherwise. -43-m 2424 Within said five (5) day period, the Unit Owner shall bo permitted to address a hearing of the Hoard roctard inq the validity of such lien or any offsets or defenses thereto. The Board shall determine whether such lien adversely and improperly a£ foots and encumbers the ownershin interests of the Association or other Unit Owners. Should the Board determine that said lien adversel" and improperIv affects and encumbers ownership interests oc the Associa- tion or other Unit Owners am.1, that no adequate protection of said interests has been provided, the Board mru' c.?"^^ said lien to be di schnrged bv payment, binding or other- wise. The Board shall have the riqht to collect from the Unit Owner responsible for said lion ail amounts so paid together with interest thereon at the leaal rate and all costs and expenses paid or incurred in connection there- with, including reasonable attorneys' *-"ee.s. 9.2 TERM Or DECLARATION: The provisions of this Dec 1 aratioii~~sh"alT~con"t"ih"ue and be e* fective for a term of fifty (50) years from the date o*7 this Declaration, after which time this Declaration shall bo automatically extended for successive periods of ten (10) years, until a majority vote of the Unit Owners sh,ill determine that this Declaration shall terminate. 9.3 AMENDMENTS r After the first conveyance bv Declarant of a Unit in the Project, the provisions hereo* may be amended by a vote or written consent of the record Owners constituting not less than seventy-^ive percent (75%) of both classes of membership. oc the Association. In the event only one class of membership exists at the time of the proposed amendment, said amendment shall re- quire the vote or written consent of the record owners ok" Units constituting seventy-five percent. (75'i) of the Units. Notwithstanding the foregoina, amendment of an" of the provisions of this Declaration shall renuire the prior consent- of the City. Said amendment shall be effec- tive upon the recordation in the Office of the Recorder of San Diego County, California, where the Pro-i act is situ- ated, of an instrument setting forth the terms thereof duly certified and executed by tho President and Secretary of the Association. Nothwithstandinq anything to the contrary herein contained, no such amendment shall af*i=»ct -44- the rights of the Beneficiary of any deed oi trust or mortgage recorded prior to the recordation of such amendment. 9.4 CONSTRUCTION OF PROVISIONS: The provisions of this Declaration shall be liberally construed to effect its purposes of creating a uniform plan for the development and operation of a condominium development pursuant to the provisions of Section 1350 et saq. of the California Civil Code. Failure to enforce any provision h'?reof shall net constitute a waiver of the right to enforce said provision or any other provision hereof. 9.5 BIKD1KG; This Declaration shall be for the benefit of and be binding upon all Unit Owners, their respective heirs, legatees, devisees, executors, administra- tors, guardians, conservators, successors, purchasers, lessees, encumbrancers, donees, grantees, mortgagees, lienors and assigns. 9.f SEVKRAHILITY OF PROVISIONS: The provisions hereof shall be deemed independent and scverable, and the invalidity or unenforceability of any one provision shall not afect the validity or enforceabi1ity of any other provision hereof. 9.7 GE'.TiKR, NUMBER AND CAPTION'S: As used he-rein, the singular shall include the plural and the masculine shall include the foniinine. The titles and captions of each paragraph hereof arc not a part hereof and shall not affect the construction or interpretation of any part hertiof, IN WITNESS WHLRKOF, the undersigned Declarant has executed the within Declaration the day and year first above written. M'.CI.AKANT: (§' l-'ARADAV RCSItlliSS PARK, A LIMITED PARTNERSHIP General '> I si / / \ I *• co-p 151 ptoved Ic mo on the basis ol satisfactory evidence ? IP oo one of ihc partners o' tho partnership lhal executed the within instrument, and actmuiv lodged lo me irtai partnership execute*! the same OFFICIAL LYNN ROGERS WTMlr L.I-- .m^..l Ihr |>arliirr-lii|> tlial ,-,-, utitl lln- «i aikn>mlr(lKiil In nip Unit xii-li . ,,f i.nrBli..n ritTiilitl Ihr -nni.- ,,n-li i.Arlni>f nn<t (I I, h t.,,ritf>rJii{- *\--m«t ilir same 2427 EXHIBIT "A" UNIT I.D. 57-11 I'aliwi-r Kay, A Bc D I'NDIVIDED I (UNIT) 1860 1S50 1970 2040 12SO 12SO 1280 1870 1730 261 4 1564 3705 1085 1085 1860 2100 3690 3865 5 •1 :' \ Jamn .•%$>. 5 [P- i6 ™- •' 2Q •4 S5 : o-: 5 ' O 5 |:«TJ 7 4 10 3 3 5 5 8C/5 £2•> '; •»••& " -|m-!m ' W : 'IP • :es!i^•SS-'i ^: tenant sign criteria 2429 FARADAY BUSINESS PARK ' Ttn/int Sij;n ('.r i K H KSKKSI Bl LI TIES: The individual bui Iriing develops, and unit nr.-up.'.:>ts will have signing ri-s|o'isi:iilHies. Those responsibilities include, IniL ?.ra ncit limited to, sijjn design, construction and ii-a'intcnanre. SICK r.iT.ciMivmoMS Color: Materials: I/.'l.t<?r Style: letter Sixer Installatino: Mi peellancous: KCI:I' i. n !"d V..-if lor: maroon (Panlono //206) lo n.'.tch Miii1,. piii/.';t.ri re high ck-iisiiy ro.im with acrylic face TENANT'S CHOICE scaled to size of allowed sign space to be flush nf.nin!.cd to building with si lie-one sealant (for clean rr^ioval) sign copy shall be lirail.ed to business naiie (inly (no pictoral logos) Visual Systrais, 9295 a»f/!:.-.;>.-ake Dr. "G" S:,n Die£o, Ca. 97123 (d!9) 27S-Oi82 (;K\KMM, SJG.'.'At-K K--.nUJi\!".'-',rJM'S: a) No sij-n sli;ill be p.-jinted directly onto a wall or surface of flny building and all signs shall be kept in a "1 i.ke new" condition. On notice by either Uie City or Linda Vista toners Association, a tenant will be required to refurbish riny'sign.ng wliich doos not qualify ;^s being acrc-ptable slandard. b) Ko j*.-;,r»i. r,ij it ins of t.he ».-xii:rior building si I'Mclure will be >-:iM l:Ujd. c) 7..-':ftni ^r.'ll be fully res;>:.-ns iMc for i be .-;---r,r :. • :s tif : he sii;n d) K\> .>:":i^(>ii.l] i-x:L*M\ir :-..-*l«-rJBl will be J..-I.IMI i"d l.o i.-:..,:i'.5. e) Ai.b irA'ANf SJC--:;V;F. K-TSIGN is SUBJECT *io AI^-HOVAL OF FARADAYU..'I;KKS ASsociA'i ION. 1" vinyl die cut Holvelica l-k'diui] (reverse cut for application insi.ie) Jiv;iall lop line 5 ff-et fro.i) ^rci i.-xl to Iffr. or j'ij^'it of <lix>r ;=r, •:,•,'!'•; (V-jjy t.o Ix: di^jiJ.-iyed lliLsh left. WSERA5E TECHNOLOGY - - GROUP The under.ij-gned, beneficiary under that c trust recorded Au*ust 9' l98li as In erta in st rume an Die nd a tion by a q i 11 be Official Records, S California, does hereby consent to each a previsions contained in the within Declar Conditions and Restrictions and does here lien and charge of said deed of trust sha of Covenants, Conditions and Restrictions effect ther eo f. PKOPT.E'S HANK, .i/Cnl if