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HomeMy WebLinkAbout1.0 Application4.4(itiSrtil ,n,,CIll10'rr,,t]$ tlili r | [i!; SUBDIVI S lON IMPROVEMENT AGREE}'TEN? ?HIs ACREEIGIfr r s made 8nd cnt.r'r'o.l , nt o ,4,,t;rrst, iq94, betrreen David Hicl:s an'l'-i'r'nie ,i" r.,..qpr ot'coutf,rY c(-fiMTS.cl0]l[Ps (r] r;AFtlrllr -/,'r't l lt rhis -d-/'day of tli t:ks, (Clwner) , and CClIIIITY, COI,OF.ADO, r I ? N E 8 8 E ? II: rHEREAS, '1wI)Fr ) s t ltt: 'wner of cet ta j n rea 1 prcpert;' located 1n,'ali,ri'l..,tinL'v'rC')ir)!ad')rnroreFarLicrrlarly.descrtbedinthe f :.r'r;1 p'lat. fot t'rince Cree'< i'sLates' which Is ftled on even date lrcr...f ancl I n" in...t rP?-ion 'rf which is set f orth tn Exhlblt A oiio,rrrc,t lrcroto and ma,-le a FarL hereof by referehce (subdlvlclon); al!'1 III{EREAS, as a concliLtott of approval of the Final Plat and as Ieqrlil'odb.y't-he}awsofthesLateofColorado,theownerwlshesto '-.i.,: cr int.o .-hrs Sut\d.i visiotl Ihprovements Agreement wlth the count,y, al"l rHEREAS,thecount},hasrequlredandtheovnerhasagreedto p.."ii"-o"."iiii.ri coliareral sufficient in the Judgment.of the rliurrt.!'Lc'make icasonable provision for completion of cert'aln p,uhiicilnprcvemcntsrequirecjtobeinstalledintheSubdlvlslonas set'torthinFesolutionNo.g4-063,recordedintheofflceofthe Cierl: anO p.eccidei of Garfield County, Colorado, as Receptlon No' \ l.-e__a rL:i in Book zis at Paqel-77: and ${EREAS, Owner has aqreed to execut'e and deliver a letter of :re,lrL to the county to secure and guarantee lts performanc:,?1 --this Agreement and has agreed Lo certain restrlctlons regarcling Ene rssuance of building pe.mits and certificat.es of occupancy wit'hln i;.-iruai"ision, ati is more fully set forth hereinafter. NOll , TIIEREFORE, FOR AltD IN CONSIDERATION OF rl{E PREMISES AllD THE FILI'TTING I{UAUAI. COVEITANTS A}ID AGREEMENTS ' TIIE PARTIES TIEREBY AGF.EE AS FOLIOI{S: l.OI|NER'SPERFORMAITCE.O'nerhasconstruct'edand .rristalled, or will cause to be constructed and installed at its sole expense those imprcvements requlred-through approval of the F'reliminarV pian in RLsolution No' 94-063' The improvemen required rnerein will be completed on or before Ar,gust lst. 1995 1n compl iance wjt.h the following: A.A,ilplaldocumentssubmittedpriortooratthetimeof t-he Fjnal Frot-"pp.o"a1 includjng approved as-built crawings of alr rmprovemenLs completecl prior to exetution of ghis Agreement, which are incorpot.i"J'trerein'by reference and made a part of this Ag reement Trl r.n00t0,rc,ffi , :. . !4-i\(,1, inel'rdirrq all ir: r,:,'l'-l,e .-;ari:e;:J A,. iawr:i'lr.,'r ,r.ilr: ', ii lar f ic.'l at ',i..',ai'iis' I .'l:s. :. I,)-1, -tli*": 'lr i,. I :lA't":'la.S S:]brii. a' l'i .r:-'.'.?')trei : a, r'l-,:. rlro.j':.a?e-<, 'hF S'rtl Of COlOfado, .s ...41i.-;s r.:Fi'lr;,ns 6trd affected ,sl,Jlls, :?tF\s, s['.' ', f lr:at-ictl 9, sk?Lehes and ed '-,1 rr',-! nF,pr'-vr'.J l)!'tni' of the abcve ii-]es. T}.r. ,,):jr,t..i lrq'ees t.tra?. 1f a) 1 aJ.,J:ic..'emerlLs are tnrtallcd in a--r. l dan''e wl1-f, l.hl s A'rreement, I 'nai !lat 't:rju'ne'rts' Lhe req,r: r.ments ct ?,he Prelinr rnarY Flan, r-lten thG owner lhall bc Jeer,ed '-c l",avr: sat; sf ied al I terms 6nd condttlons of zonlng' :;r;t. j,: ',s1.rr, lcsoir)t ions and rerrr'li6Lions 'f Garf lcld CoJnt'y' ].SECURITYtlRlMPRovEMENTs.onorbeforethedatecfthe :a: ::i::r: -f .-hc t';ral P:a'- wlth the C.l erk and Recorder, the owner ,:1.a, ^ ,jc.i ii'er a ie",,'r cf cre.JiL wiiich is acceptable to the County in:heailo'.]ntoft.heimprcrrementsforthesubdivislonor.:mrrcvemen..s r.-har. have nr-,L yet been completed. Those improvements, ,.lr.ai."i ,.ir-t, tna ccsL as ,:e::tif r.ed by a licensed enqineer. 6re .ai;;;;; n.iur" .,t uxhrLr:L B. The leiter of credit shal1 be issued b.r.a staLe or natrcr)aI bankrng instit-ution in a form acceptable to Itre Ccunty, and from an jnstiiution that 1s licensed to do business in the -qtate of colorado. Certification of completion of imprcvehents must be submjtted by a Iicensed or registered ;;r;;;";,. -sucn certification shall certify that the improvements have tleen constructed in accordance with the requirements of thl!' Aoreement, includin'l all Flnal Plats, anci plans, and shall be siamped by said professj'onaI engineer' Theletterofcreditsetforthhereinmustbevaricfora minimum of nr;rety (90) days beyond the completion date for the .tmprovements set forth heiein. Any extension of the tlme periods within which improvements must be completec shall-cause the llne of ciedit required herein to be extended for an equal amount of tlme' If the county aetermlnes that the improvements are not constructed in con,pfiance with the relevant speclfications, it shall furnish a ietter'of potential deficiencies lo the O.rner within fifteen (15) cia.,,s from th" dut" the county receives certification from the owner th;t all improvements as set forth in Exhibit B have been iompfetea. If that fet-er is not furnished within fifteen (15) auy., aII j.mprovement*S shall be deemed accepted and the county shall release the appropriate amount of security as such relates to the completed improvl."r,t". If a Ietter of potential.deficiencies rs furnished by the county, the count,y shall have thirty (30) days to complete j.ti in".stiqation and pro'lde written confirmation of ,., {)910,,o 881 t|,. jeficienr:ies to the ()tner. If, rrpon further lnvestlgatlon' the ,:our,ti, f inrts 'l.hat al I 1m[,r.:1vemeuts are acccDtable, then thc sppropriate securiiy st,ail be released to the Arner wtthln ten (10) d;;";fter compl.etton of sr:ch lnveEtlgatlon' In tfig event that such lmptovements are not tccepted by the County,-tle Board of C.unt-1, Comrnissjonui" shalI make wrltien flndings before rcquc!tlng pa',ment on the letter of ctedit' The county may' at its opr'ion' permlt-thc Ownat. to lubttltute .t,he! col lateral 66r-pt.able til the Count'y for the collateral oiigir,"lly qi..ren by tire Owner tc.secure the completion of the in,1,int"".nL.i as heieinabove provided' The County na)'r 6t its nyrlion, provide Ce.'ner with pirti rl releases of the securlty fo? imFrovenrents provrded by o*ner upon satisfactory evlJence of p,aitiai r:onpletion of the impro'rements' No Firral.PlaL shall be recorded pursuanL to this Agreenent r.rnt i i a ],eLt-er oi crecllt in a f orm acceptable to the county 1t re:eived b;' the CountY' 3. tlA?ER. At the time of executlon of t'hls Agreement,. all w.fLel s),stem improvenents, includlng all easements neceSSary fo! Lhc insialtation of that systeln, together wltt, the necessary water ii,lhts and assignment of permits and water all(tment contracts and cther water rights associated with the issuance of the wcll permlt inalt Ue transierred by deed, dedicatlon or contract to the tto*"o"rn"r. Association in the form set forth in Exhiblt "c" attached hereto. Thar deed shall be recorded coincldent wlth the filing of the final Plat. 4'INDEmII1I..Totheextentallowedbylaw,o.,neragreeg...: rndemnify and hold the county harmless and defend the county Ir.onr a1I :l,iirns whieh nay arise as a result of owner's lnstallatlon cf the improvements oursuant to this Agreement, provlded, however, owner doei not indemnify the Co;rLy foi claims made asserting that ihe standarCs imposed Uy tne County orr O&r,ner are improper or the ,:ause of the rnjurY asserted. The County sha1l be required to notify the O^,ner of receipt of a no.--r ce of clarm or a notice of intent. to sue and shall af f ord Owner the oplion of defendlng any such claim or action. Fallure to notrfy anci provide such option to o{ner shal1 extinguish the County'srrghtunderthisparagraph.Nothinghereinstatedshallbe ir,terpreted lo require )rnrnlr to indemnify the County from claims wnrcn'rnav arise fiom the negligent acts or omissions of the County :r its emploYees 5. SCSOOL IMPACT FEES. Owner shall be obligated to pay ?wo Hundrecj Dollars (s200.00) per 1ot for school impact fees. o"rner shai1,-ender Two Hundred Otllars (S2OO.OO) to the County for all rr{)010'rc,E82 1r:ts wlthin the srrbdivisi,.lr at !-he t ime of rer:ording ol the FtnaI Flat. 6.SALEoFtots.Nolotswilhintheproposedlubdlvtslon thatisthesubJectofthisAqreementshEll}reconveyedpriorto the recording ol Lhe FinaI Plat' 1, ADDno\'AL oF rINAL PlAt. The CcunLy agree!' to approval of the Final prat lubiect Lo t.he terms and conditlorrs of this i;r;;;";a; is welt-as'tne rerms and eondirions of thc Prellnln6rv Plan. 8'ENEIRCEI.GNt.lnadditiontoanyrightrrrhlchnayt.e prcrrided by Colora-o statute, it is rnuturlly agreed that the County or any purchaser ;i-.-iot wiLhin ttr. Subdivlslon thall havc the "r$,liiiiv io urtnq-"n i.iion In rhe Disrrict court of Garfleld couhLy, color6do io--o.p"l enforcement of tht! Agrcem.nt. In the ;;;;a'r)o actlon is-comnLnced before lssuance of the final certificate of cornpi"iion of improvements and tcceptaneg thareof by the County, aDY puichaser's rlghts to commehce an 6ctlon thall thereafter be extinguished' 9. CONSENI tO VACATE PIAI' In Lhe cvcnt the ownQr fallt to comply htlth the terms of this Agreement' tnciudlng Lhe teflns of the Prelimrnary Pran, -ii;-; a;r;av sr'iir have the abrlity to vtcatc the pi"i ,r= ir'perrain"-io-iot"'for which no bulldrng perftlts havc bccn I;;;"a: any exisrinf-rot" for which butlding permlt! have been issued shall not Ue iacat'ea and Lhe plat as to thosc lots ghall remain valid. The owner shall provide a survey and complcte lcgal descrjption with J m"p-.f,o'i"g Lne locatlon of that portlon of the pi ai- so vacaLed. 10. BIIIDING EFFECT. This Agreement shall be a covenant runninq with "he title to each loL withln the subdivlslon and thc iiqnts and oblioaiions as contained hereln shall be blndlng upon and inure to the benefit of the ownerr its successors and as319n!' 11. RECORDING. Upon execution, O'v{ner shaIl rccord thls Agreement with the offi;; of the clerk and Recorder for Garflcld County, Colorado. 12. \,IE}IIJE A}{D JI,,RtsDIctIoN, venue and Jurlsdlctlon for any cause arising out of or related to this Agreement shall lle ln thc r,i.a.:.i-c"rit for Garfield county and be construed purtuant to thc laws of the State of Colorado' l3.RoADs.TheHomeownersAssociationshallbearthegolc responsib,ility for the maintenance, rlpkeep,. rePal:' restoration' =noi ,u*o"a1 and reconstruction of aIl roads within the subCi vi st on. (303) 9a5.'100{ FAX (303) 9d5 tqdP ,hd r aa.=4? irintot:\i^, irt-=_(afflqt -' t.ttillt* 5 fl, - lxnInIT "4" t,IT IN('F] (-FIiEN F:STATF)S I,F:CAI, t)F:S(-F I I'T I()N A lrarce) df larld Fi t rtat-ed irl l'ot 6 s,-irt tr, Ranqe E R t'lest of t.ho s i xt h GaIf iel<1 , !t at.e of ('olotado, naid .:tenct ibo(l as f ol lows: <1i sr anc0 of 'l 94 . 95 f eet I t-hence, N,.rr-t h 0O degree8 00 mintltea 00 aeconds 5 and ?, SecLlon 11, TownehlP I Principal Meridlan, CountY of parcel' treing more parl-iculerly Beqinning at. a point dhence the witneEs corner for I .ornFr .oi sait.t iection l1 bearJ south 51 degreeg ?5 wesl iS 5lc.\r-'2t n t{), a distance of 1583'11 feeL ; ;.;;""; ;1 1 minutor: 54 !iecondc hlear (N olo2l'5{' h)' rl 0rr . F0 f oet ; l.lrettce, N()t t h 90 degroes o0 mintlt'eF o0 aecondr hest (N fhe Southwest- minuteE 26 seconds r,hence, North 0{ a diBtance of 90oo0'00i t{) , a (N 00000'00i E), a di st anc'e of 129 . 55 feeL ; thence, North 64 degrees 23 minutes 19 ,l j s:t ance rtf' 385.52 f eet; t.hence, Nott-h:B degrees 05 minutes 30 distance ot 224.28 feet to 6 Point54c, Page 2?3 in the office of the Fecorder' s ; thence, seconda (N 64023',19i second6 Eaat. (N 28o05' 30n E), a on a fenceline described aE Book Garfield County Clerk and bed in Book 549 aE Page 21) and Book 579 at (s 71030'23" El , Eheltce,(s 68030'14i E) , 274 a dist.ance of 53 second6 East (s 89045'53i of 4 16 . 99 feet ; thence, 59 seconds East (S 00033'59" Page EaBt Wes t NcrthSgdegrees42minutes26secondsEasE(N89042'26rEl'said fenceljne described in Book 549 aE Page 21) and Book 5 272 a distance of 19?.80 feet; thence, South ?l degrees 3O minutes 23 aeconds Eaat said fenceline a distance of 175.19 feet; south 6B degrees 3O minutes 14 seconds East along a fenceline described in Book 549 at Page along Pag(' alonq 1o: .64 teeL; thence, SouLh 89 degrees 46 minutes said fenceline a disEance South o0 degrees 33 minutes E) disLance ot 555.38 feet; thence, Sout.h 04 degrees 42 minuEes 01 Eeconds EaaE (S O4o42'01i E) along the Easc lIne of a parcel of land described in Book 530 at 432;f sairi Garfield Counly records a disEance of 214'05 feeu; Lhence J.eaving sajd East Iine. North 90 6"9."." 0O minutes OO seconds west (N 9o"oo'00n w)' distance of 434.5? feet !o Lhe point of beginning' Said parcel r:antains 12 . 0? l acres, more or 1ess. r.n,0010rtilE8{ t16 Wesl 6lh, Sule 200 firenwtxrd Sphn$, CO 8t60t (3031 945-100{ Frdl r3031 945.gon8 atr4 r ra - iriraYo". t t,u-. (6r, rra -ElitIk- rEXttTBfT '. rnn00l0rtn'88S luly 29, 199'l Mr. Drvid Hiclr l05l Prince CrEl Rmd Crrbonddc, CO t1623 R.E: hlnec Crteh Ertrtc Cd fstlmetc Deer David: Pet your rcque$r rE hsve completed I oon3tructior co3t eltimetl for rmd l,rd *rta tyryt iipi*r*b rr Frince Crek Erratqr. Thc ertimatc war done from thc planl poduccd-bfsgy ilfo-M;t 16, 1994. The totel cott of on-ritc impmvcmenu will bc rpprorimrtcly 17,'m' 0rc breakdown for thesc oostt lr! outlined below. The cost of road improvemcnts it basod on r l6fmt widc road urinj 6' of Chg 6 rt3rc3rf basod cout* touling $l.t'000. The cosr of the water sysrem ir rppmrimetcly t50,000. Ttrh lncluder thc lnrtalhfion of tso *"ift "t $8,000 cactr, i5O0 linear ieer of coliection rnd dirtribution piptnt r, i2{''m,-'m g.fi"n .irrch at $5,0b0, urd the conrol building rnd nessery rypurtenrnccr rt gl2'm' Due to rhc variability of rhc wclt rnd conuol building c(Rt!, nG hrve rddcd rp,prodmraly lOt o the rubtotal of $6t,000. There will bc no dgnifrcant r€vegetation corr requircd for Olr worL. Thc oost estimatc ir bascd on convcnationr wilh local contncton rnd priccr for rimllrr wort Urc past two year. The cosr for rhe project rre rubjcct to chu3c, basl on ficld cmdidmr and contractor availabilitY. Pleasc do not h$itatc to cell if you have rny questionr. Sincerely, SCHMUESER GORDON MEYER' INC. D-CU Dur CoUey, EIT tl? Wpct 6lh $11,rr 200 ;, F6u (r1 cnr,nfi rlO 8lB0t ffi*%**,f BaId( DATE OF ISSUE: August 7, 1994 TO: (Benef iciary) Garf iel-d County APPLICANT: David W. Hicks and Connie F. Hicks EXPIRATION DATE:October 1-, 1995 AMOUNT: Seventy-Five Thousand and Uo/100 Dollars ( $75, 000 . 00 ) We hereby establj-sh our irrevocable letter of credit in favorof the Beneficiary available by payment wlt.h the Alpine Bank of Carbondal-e of the Beneficiary's drafts drawn on the Alpine Bank ofCarbondal-e if accompanied by the fol_lowing documents: a) A Beneficiary's statement signed by the Commissioners ofGarfield County, Colorado, certifying that "David. w. Hicks and Connj-e F. Hicks have failed to perform under and in accordance withthe provisions of the Price Creek Estates Subdivision as per theexecuted Subdivision Agreementrr entered into the l-st day of August,7994, between the Beneficiary and the Applicant, a copy of which isattached hereto and incorporated herein by reference, and statingthe amount of the default; b) The original Letter of Credit. A11 drafts drawn under this credit are to be endorsed hereonand shall bear t.he clause rrDrawn under Alpine Bank of CarbondaleLetter of Credit No. 75722-02, dated August t, 1994." This Letter of Credit is subject to the "Uniform Customs andPractice for Documentary Credits (1983 Revision), InternationalChamber of Commerce Pub. 400." Alpine Bank of Carbondale hereby engages with the Beneficiarythat all- drafts and documents drawn under and in compliance witirthe terms of this Letter of Credit will be duly honored if drawnand presented for payment at the Alpine Bank of Carbondale on orbefore the expiration date of this Letter of Credit. 0326 Highway #133 . Carbondale, Colorado 81623 . (303) 963-3040 Fermetly hnown as Roartnq f atk Bank ALPiNE BANK OF fd, President lDn-OEC7 recycled paper 383953;'148 P. Er3 Form No. GWS-25 JUL_ I9-94 TUE E4 Ff'l FR I t'.lCE CREEIi rlOl'{ST. OFFICE OF THE $* -E ENGINEER COLOFADO DIVISIU,{ OF WATER RESOUHCES 818 Contonnial BtdE,. 1313 $hotman Et., Denvsr, C,]lorado 0OiS3 (3o3) 866-3581 APPLICANT DAVID & CONNIE HICKS 1051 PRINCE CRK RD CARBONDALE CO 81623 ( 303)s63-818? PERMTT TO CONSTHUCT A WELL A P P R OVED]ryELL..IS8AI!9N GARFIELD COUNTY NW 114 SW 1/4 Sectlon 11 Twp I S RANGE 88 W 6th P.M. DISTANCES FROM SECTION LINES 1790 Ft, from Sottth Seaion Llne 1O1O Ft. from West Section Llne DIV. 5 CNTY. 23 WD 1) 2) 3) ISSUANCE OF THIS PEHMIT DOES NOT CONFER A WATER RIGHT g, ,oNDmoNS oF APTBoVAL This well shall bo used iri such a way as to cause no material injury Io exlsling water rights. The lssuanoe of tlta permit does not assur€ the applicant that no injury will occur to another vestad watsr right or precludo another owner of a vested water right from seeking relief ln a civil couft actlon. Tha construotion ol thls well shall be irr complianco with the Wgter Well Construotion and Pump lnstallation Flules 2 CCR 402-2., unless approval of a variance has been granted by the State Board of Examlners of Water Well Construction and Pump lnstallation Contractors in accordance with Hule 17, Approvecl pursuant to CRS 37-s2-602(3)(c) for th6 relocation of en existirrg well, permit no. {05764. The old well must be pluggect and abandoned accordlng to the Wat6r W6ll Construction and Pump lnstallation Rules within nlnety (90) days of completlon of the new well. The enclosad well abandonmsfit repon form must be completed dfirming thd tfr€ old well was plugged ancl ahendoned. 4) Approved as the only well on a lract ol land of 38 acres described as that portion of the SW 1i4 of Sec, 11 and the SE 1/4 of Sec. 10, all in Twp. I South, Bng. 88 Wsst ot ths 6th P.M., Garfield County, llelng more particulerly described on the attached exhibit'A.. The use of ground water from this well is lirnited to ordinary household purposes lnslde threo (3) singte tamily dwellirtgs, fire protection. ths watering of poultry, domostic animals, and llvastock on a larm or ranch, ancl the lrlgetioft of not mor6 than one (l) aore of home gardens and lawns. Th€ maximum pumpillg rate shail not exceed 1S GpMr The average annual amount of ground water to be withdrawn shall not exceed B acre-feet. This well shall be constructed not rnore than 200 feet from the locatiorl specified on this perm'rt, The return flow from the use of this well must be through en indlvldual waste water disposal systenr of the nolr€vaporative type where the water is returned to ths same sream system in whlclr the wBll ls located. t-U tt-?-3-21 OWNHH'$ COPY s) 6) 7') 8) s) EXPIRATION DATE JUH 2. ? Igg$ DECI,ARATIONS oF covENANTS, CONDITIONS AND RESTRTCTIONS PRTNCE CREEK ESTATES HOMEOT{NERS ASSOCTATION, INC. THfS DECLARATION, made on the date hereinafter set forth by David Hicks and Connie Hicks, hereinafter referred to as "Declarant". WITNESSETH: WHEREAS, Declarant is the owner of certain Property in Garfield County, State of Colorado, which is more particularly described as: SEE ''EXHIBIT A'I - LEGAL DESCRIPTTON, andm ,referred to as the "Property". which is attached hereto and shall be hereinafter NOW THEREFORE, Declarant hereby declares that aII of theproperties described above shalI be heId, sol-d and conveyed subject to the following easements, restrictions, covenants, and conditions, whlch are for the following purposes, and which shal-Irun with the real property and be binding on all partles havinq any right, title or interest in the described properties or any part thereof, their heirs, successors and assiqns, and shall- inure tothe benefit of each owner thereof: 1. To protect the value, desirability and attractiveness ofthe Propert.y and enhance the quality of life within the development. 2. To develop the Property in accordance with a master plan and qeneral scheme of development into a resident.ial community, to be collectively known as Prince Creek Estates (the "Project") 3. To efficiently manage the Property by creating an owners association to which should be delegated and assigned the powers ofmanaqing, maj-ntaining by administration the common areas,administering and enforcj-ng these covenants, conditions andrestrictions and collecting and disbursing funds pursuant to the assessments and charges hereinafter created and to perform suchother acts as are herein provided or which generally benefit its members, the Project, and the owners of any interest therein. 4. To create the Prlnce Creek Estates Homeowners Association, a non*profit corporation, that has been, or will be,incorporated under the laws of the State of Col-orado for thepurpose of exercising such powers and functions. 5. To permit the owners, mortgagees, beneficiaries and trustees under trust deeds, occupants and all other persons hereinafter acquiring any interest in the Property to at aII times enjoy the benefits of, and to hold their interests subject to, the covenants, conditions, restrictions, 1i-ens, assessments, easements,privileges and rights hereinafter set forth, al-1 of whlch are declared to be in furtherance of a plan to promote and protect the Proj ect. SECTION 1 DEEINITIONS UnIess the context clearly requires otherwise, the following terms used in this Decl-aration are defined as follows. Defined terms appear throughout this Decl-aration with the initial letter of such term capitalized. 1.1 "Articles" means the Articles of Incorporation of theAssociationr- as such may be amended from time to time r or of any successor thereto. 7.2 "Assessments" shal-l include the following: 1,.2.1, "Regular Assessment" means the amount which isto be paid by each Member of the Assocj-ation as such Member'sProportionate Share of the Common Expenses of the Association, asprovided in Section 6.3. 1aaL.'.L "Special- Assessment" means a charge against. aparticular Member, an Owner or a Lot, directly attributable to suchMember, Owner or Lot, to reimburse the Association for costsincurred in bringing this Declaration, the Articl-es, By1aws, Association RuIes or Design Guidelines, or any other chargedesj-gnated as a Special Assessment in this Declaration, theArtic1es, Bylaws, Association Rules or Design Guidelines, togetherwith attorneys' fees and other charges payable by such Member or Owner pursuant to the provisions of thj-s Dec1aratlon. 1.2which is to Proportionatestruction of Secti-on B. "Reconstruction Assessment" means the amount be paid by each Member representing such Member's Share of the cost to the Association for recon- any portion of the Common Areas, ds provided in 7.2.4 "Capital Improvement Assessment" means the amount which is to be paid by each Member representing such Member's Proportionate Share of the cost to the Association for the instal-l-ation or construction of any capital improvements on any ofthe Common Areas which the Association may from time to time aut.horize pursuant to the provisions of Section 6.3.4. 1.3 "Association" shall mean and refer to PRINCE ESTATES gOUnOVgUnnS aSSOCIATION, it successors and assigns. CREtrK 7.4 "Association Rules" means the rules and adopteci uy t-@suant Eo section 4.i0. regulati-ons 1.5 "Board" means the Board of Directors of the Association. 1.5 "Bylaws" means the Bylaws of the Association adopted in accordance with the ArticLesr ds such Bylaws may be amended from time to timer or of any successor thereto. L.1 "County" means Garfield County, Colorado. l- . 8 "Common Areas " shall mean al-l- real- property (including improvements thereto) operated and maintained by the Association for the common use and enjo)rment of t.he owners. The Common Area to be maintained by the Association at the time of the conveyance of the f irst lot is described as f oll-ows: (a) Common driveways that provide access for all- lots to Garfiel-d County Road 111. (b) Two (2) domestic water wells (Col-orado WeII Permit #'s 105764-A & i-'7 4240) . (c) Domestic water supply piping and appurtenances. (d) Irrigation water supply piping and appurtenanceswithin the subdivision. 1. 9 "Corlrnsn__ExperrEeE" means incurred by-the Association in operatingr the Pro j ect, includi-ng, following: the actuaf and estimated costs administerJ-ng, maintaining andbut not strictly limited to, the (a) maintenance, management, operation, repai-r and replacement of the Common Areas and property, and all other areas on the Project which are maintained by the Association; (b) unpaid Assessmentsi (c) maintenance by the Association of areas within theproject where public right-of-way is allowed as provi-ded j-n this Declaration or pursuant to agreements with the County; (d) costs of management and administration of the Association, including, but not limited to, compensation paid by the Association to managers, accountants, attorneys and employees. (e) the costs of maintaining utilities, including but not limited to water, electrj-city, 9ds, sewer, trash pick-up and disposal, and other servj-ces which generally benefit and enhance the value and desirability of the Project and which are or may be provided by the Associati-on; (f) compensation Areas; (s) Associ-ation; the costs of fire, casualty, Iiability, worker'sand other appropriate j.nsurance covering the Common the costs of any other j-nsurance obtained by the (h) reasonabl-e reserves for continqencles, repJ-acements and other proper purposes as deemed appropriate by the Association, which reserve fund shall be adequate to meet the costs and expenses of maintenance, repairs and replacement of those Common Areas which must be maintained, repairedr or replaced on a periodic basis; (i) the costs of bonding the mernlcers of the Board, the President, any professional managing aqent or any other person handling the funds of the Association; (j ) taxes paid by the Association; (k) amounts pai-d by the Association for discharge of any lien or encumbrance Ievied against the Common Areas or portion thereof; (1) costs incurred by the Design Review Committee; (m) costs incurred by committees established by the Board or the President; (n) costs of securitygates at entrances to the Project, or services installed, operated Association; guards, and operation of key and any other security systems or contracted for by the (o) other expenses incurred by the Association for anyreason whatsoever in connectj-on with the Common Areas (excepting reconstruction costs and capital improvements as otherwise providedherein), or performed by t.he Association pursuant to, thisDeclaration, the Articles, Bylaws, Association Rules or Design Guj-de1ines, or j-n furtherance of the purposes of the Association orin the discharge of any duties or powers of the Association. 1.10 "Declaration" means this time amended. instrument,AS from time to 1.11 "Desrgn Guidefines" means the rules, regulatlons,restrj.ctions@tandardsanddesignguideIinesfrom time to time adopted by the Design Revj-ew Commi-ttee pursuant toSection 1,1, .2 . 1,.1,2 "Desrgn Review Conmittee" means the committee providedfor in Section t:-, effictura1 and Landscape Control". 1.13 "Declarant" means David Hicks and Connie Hicks, thelr successors and assiqns r er any person to whom t.he Declarant's rights hereunder are hereinafter assigned by recorded instrument, or any Mortgagee of the Decl-arant which acquired title to or succeeds to the interest of the Declarant in any Lot or other portion of the Property by reason of the foreclosure (or conveyance in l-ieu of foreclosure) or trustee's sale under the Mortgage of said Mortgagee. 1. 14 shown on shal-l- not "Lot" shall mean and refer to any final- platted lot ttre approved subdivision for Prince Creek Estates, but include platted outlots, if any. 1 . 15 "Ma j orit.y of Members " means the Members holdj-ng more than 50% of the total votes entitled to be cast with respect to a given matter; and any specified fraction or percentage of the Members means the Members holding that fraction or percentage of the total- votes entitled to be cast with respect to a given matter. A specified fraction or percentage "of all of the Members" means that fraction or percentaqe of the total votes of all Members other than Declarant. Unless otherwise specified, any provision herein requiring the approval of the Members means the approval of a "Majority" of Members. 1. l-6 "Member" means every Person who holds a Regular Membership -in the Association pursuant to Section 3, entitled "Membership". l.l7 "MoIlgege" means any recorded, filed or otherwise perfected instrurnent given in good faith and for valuable consideration which is not a fraudul-ent conveyance under Colorado law as security for the performance of an obligation, including wlthout l-imltation a deed of trust, but shal-1 not include any instrument creating or evidencing soleIy a security lnterest arising under the Uniform Commercial Code. "Mortqaqee" means the holder of a note secured by a Mortqage, including the trustee and beneficlary under any deed of trust. "Mortgaqor" means the party executinq a Mortgage. "First Mortgrage" means a rMortgage which is the first and most senior of aII Mortgages upon the same property. "First Mortgagee" means the hol-der of a First Mortgage. 1. 1B "Occjrpgrr!" means any Person, other than an Owner, in rightful possession of a Lot, whether as a guest, tenant or otherwise. 1. 19 "Owner" shall- mean whether one or more persons orany Lot which is a part ofseIlers, but excluding thosesecurity for the performance of and refer to entities, of a the Properties, having such an obligation. the record owner, fee simple title to including contract interest. merely as 5 7.20 "Person" means an individual, corporation, partnership,trustee or otLrer entity capable of holding titte to reit property, and their respective heirs, successors and assi-gns. 1.21, "Plat"frrsc recorcieci Colorado, and as mented. means the plat of subdivision of the Parcel asin the official records of Garfield County, thereafter from time to time amended or supple- 1.22 "Presi-dent" means thepresident of tne association. duly el-ected or appointed 1,.23 "Private Roads" and "Private Ways" are synonymous and mean any street, roadway, d.rive,@kway, path or otherright-of-way within the Project which has not expressly beendedicated to the public use. 1,.24 "Prqjgs!" means the master planned development of theProperty, as described in the recitalJ hereof, to be ca11ed the "Pri-nce Creek Estates". 1, .25 "Propsrly" means the real- property sub j ect to thisDeclaration,--t6gEEIer with al-l- buildings, - impiorrernents and otherpermanent fj-xtures of whatever kind now or hereafter locatedthereof, and a1I easements, rights, appurtenances and prlvileges belonging or in any way pertaining thereto. 1.26 "Record"aor or cire acc or County Recorder for or "Recording" means an j-nstrument of recordj-ng-En-Tnstrument with, the office Garf iel-d County, Col-orado. record of the 1.27 "Transfer Date" shalI be the date that control of the Homeowners associatiorr transfer from the Declarant to the Cl-ass rtArl Members, as provided in Section 3.2.2. t.28 thereof."Water Cost" means the cost of water and delivery SECTION 2. RIGHTS OF ENJOYMENT 2.1, Me . Every Member shall have anon-excl-usi joyment in and to the CommonAreas to the extent that the Homeowners Association has an interest in those areas, which right shall be appurtenant to and shall passwith such Member's membership as herein provided, with respect tothe property subject thereto, and to al-l of the easements,covenants, conditions, restrictions and other provisions containedin this Declaration, including, without limitatj-on, the followingprovisions: 6 2.1.1 The right of the Association to establ-ish reasonabl-e rules and regulations pertaining to or restrictinq the use of the Common Area by Members or other Persons. 2.1-.2 The right of the Association to borrow money for the purpose of improving, replacinq, restoring or expanding the Common Area or adding new Common Area and, in aid thereof, to mortgage said property, provided that the rights of the l-ender thereunder shal-I be subordinated to the rights of the Members. 2.1.3 The rights of the Association to suspend the right of a Member or any Person (including without flmitation an Owner or a member of the family of a Member or owner) to use the Common Area or any designated portlon thereof during any time in which any Assessment respecting such Member remai-ns unpaid and delj-nquent, or for a period not to exceed sixty 60 days for any single infraction of the Assocj-ation Rules or breach of this Declaration, and up to one (1) year for any subsequent violation of the same or simil-ar provision of the Association Rules or this Declaratlon, provided that any suspension of such right to use the Common Area, except. for failure to pay Assessments, shall be made only by the President, the Board or a duly appointed committee thereof, after notice and hearing given and held j-n accordance with the Bylaws. Notwithstanding the foregoinq, the Association shall not have the right hereunder to suspend any Member or owner's right to use any portion of the Property or Private Roads necessary for such Member or any owner to gain access to his Lot. 2.2 Deleqation of Use. No member may use and enjo@mmon Area to any members of his immediate family as provided guesLs as permitted by the Associatj-on Rul-es. delegate his right of Person, excepL to the in Section 3 or to his 2.3 Waiver of Use. No Member or Owner may exempt hi-mself,andnoueMhal].beexempt,frompersona1]i;bi1ityfor Assessments or release any Lot owned by hj-m from the Liens, chargesand other provj-sions of this Declaration, the ArticIes, Bylaws, Association Rules or Design Guidelines, by voluntary waiver of, or suspension or restriction of such owner or Memberls right to, theuse and enjoyment of the Common Area, or the abandonment of such Owner or Member's Lot or membership (except the relinquishment of a Special Membership. SECTION 3. MEMBERSHIP AND VOTING RIGHTS 3.1 Lot Owner. Every owner of a Lot which is subject to assessment shall- be a Regular Member of the Association. Regular Membership sha1l be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment. 3.2 Classes of Membership. classes of@. The Association shall have two 3.2.1, Class A. Class A member(s) shall be all Owners, with the exception of the Declarant, and shall be entitled to one vote for each Lot owned. When more than one person holds anj-nterest in any Lot, all such persons shall be members. The vote for such Lot sha1l be exercised as they determine, but in no event shal1 more than one (1) vote be cast with respect to any Lot. In the event that any Lot or Lots are owned by a corporation the corporation shall authorize an officer or director who is a resj-dent of the County of Garfie1d to be a Member for voting and other purposes. 3.2.2 Cl-ass B. The Class B member(s) shall be the Declarant and shall be entitled to three (3) votes for each Iot owned. At such time as the Class B membershj-p j-s converted to Cl-ass A membership in the manner described below the Class A memlcership shal1 obtain and shall permanently retain exclusive control over the activities of the Association. The Class B membership shal-I cease and be converted to Class A membership when the followlng sha1l occur: (referred to as "Transfer Date"). (1) The total membership attributable to the described in Exhibit 'rA" exceed Class B membership attributable 3.4 Transfer of membership. shall- not aas herein expressly provided. votes outstanding in the CLass A Iots incl-uded within the property the total- votes outstanding j-n the to the same property. A membership in the Association or alienated in any wdy, except A Regular Membership shall- 3.3 Voting Rights and Limitations. 3.3.1 Suspension of Votinq Rights. If any Owner, his family or any licensee, lessee or invitee violates the Association Rul-es once adopted by the Board after Notice and Hearing, the Board may suspend the right of such person to vote his membership interest, under such condi-tions as the Board may specify, for a peri-od not to exceed sixty (60) days for each viol-ation. Before j-nvoking any such suspension of voting rights, the Board shall gi-ve such person Notice and Heari-ng. 3.3.2 Additional Votirq Require . Prior to the completion of the fr ount of regular annual assessments levied 1n any year upon the owner of each Lot in the Subdivision under $500 per owner, shall require the consent of Declarant in addition to any other vote, consent or approval required. automatically be transferred to the new owner upon the transfer of the Lot to which it appertalns (and then only to such transferee), whether by sale, interstate succession, testamentary disposition, foreclosure of a Mortgage or other legal process transferring fee simple titl-e or the leasehold interest to such Lot. SECTION 4.ASSOC]ATION 4.L Purpose of Association. The Associatj-on has been, or wil-1 be, incorporated as a non-profj-t corporation to serve as the governing body for aII of the owners and Members for the protection, improvement, alteration, maj-ntenance, repair, replacement, administration and operation of the Project, the assessment of expenses, payment of losses, disposition of casualty insurance proceeds, and other matters as provided in this Declaration, the ArticIes, Bylaws, Associatj-on Rules or Design Guidel-ines. The Association shall not be deemed to be conducting a business of any kind, and all funds received by the Association shal-l- be hel-d and applied by it for the owners and Members in accordance with the provisj-ons of this Declaration, the Articles and the Bylaws. The Associatj-on shall- specifically have management, control and maintenance of the water distribution system/ all roadways, a1I common areas and al-l- irrigation systems. 4.2 Me . Each C1ass A and Cfass B Member shal ciation so long as he shall- be a Member of the Association as provided in Section 3, and such membership shal1 automatically terminate when he ceases to be a Member. Any attempt to make a prohibited transfer of a membership in the Assocj-ation is void and wiII not be recognized by or refl-ected upon the books and records of the Association. In the event any Member fail-s or refuses to transfer or surrender the membership registered in his name as herein required, the Association shalI have the right to record a transfer upon the books of the Association and issue a new membership as appropriate, and thereupon the old membership outstanding in the name of said Menrlcer shall be nuLl and void as though same had been surrendered. 4.3 Ple@. Notwithstanding the foreqoing, in the eve giranted an irrevocabl-e proxy or otherwise pledged the voting right appurtenant to the Regular Membership wlth respect to his Lot to a Mortgagee as additional- security, only the vote of such Mortgagee will be recognized in regard to such special matters if a copy of such proxy or other instrument pledging such vote has been fll-ed with the Association. In the event that more than one such instrument has been filed, the Association shall recognize the ri-ghts of the first Mortgagee to so fiIe, regardless of the priority of the Mortgages themselves. 4.4 Ass . If any l-ender to whom t ter assigns, ds security aIl or substantiatly a1l- of its rights under this Declaration succeeds to the interest of the Declarant by vi-rtue of said assignment, such assignment if it includes voting rights, sha1I be made known to the Homeowners Association. 4.5 Board of Directors 4.5.1 Directors.The affairs of the Association shaf l- be conducted by the Board as here j-n provided and 1n accordance with the Articles and Bylaws. Except for directors elected by the Declarant, each di-rector shal-l- be a Member or the spouse of a Member.If a director shall cease to meet such qualifications during his term, he wil-1 thereupon cease to be a director and his place on the Board shal-I be deemed vacant. 4.5.2 shal-I be elected by Members. Election of the Board. The Board of Directors a maiority of votes of the Class A and Class B . 4.6.7 to borrow any on behalf five (5%) 's budget, a Special deems necessary or appropriate. any assJ-stant except as provided in the Association's budget or otherwise approved by the Board. Notice and Quorum for Board Action. Writtenaction of any meeting called for the purpose of taking actlon authorized herei-n shal-I be sent to all Members not less than five(5) nor more than thirty (30) days in advance of such meeting. In the event the proposed action is favored by a majorlty of the votescast at such meeting, but less than the requisj-te fifty (50)percent (majorj-ty) of each class of Members, Members who were notpresent in person or by proxy may give their assent in writingwithln fourteen (14) days after the date of such meeting. 4.6 Duties and Powers of the President 4 .6.1 To the extent not prohlbited by Iaw, or as otherwise herein expressly Iimited, including without limitation Section 4.6.2,, the President of the Association shal-l- be empowered to exercise control over the affairs of the Association and to act on behalf of, and bind, the Assocj-atlon in every instance wherein the Association is required or permitted to take any action. The action of the President shall at al-l times be subject to the review of the Board. 4.6.2 Notwithstanding anything in Section the contrary, the President shal-} not have the power to funds on behalf of the Association, make any expenditures of the Associatj-on which are, in the aggregate, more thanpercent in excess of the total- amount of the Association or increase the amount of or levy any Assessment (except Assessment), without the prior approval of the Board. 4 .6.3 The President may appoint such assistants as No compensation shall- be paidhe to AS to 4 .6.4the Presi-dent Any right or power herein given or delegatedwhich cannot be exercised by the President, 10 whether by reason of Iaw or otherwise, shaIl be deemed to be aright or power to be exercised by the Board. 4.-l President's Determination Binding. In the event of anydispute or Membersr or any otheiPersons subject to this Declaration, relating to the project r otany question of interpretation or application of the provisions ofthis Declaration, the Articles, Bylaws, Association RuIes or DesignGuidelines, the determination thereof by the President shal1 befinal and binding on each and a1l- of such owners, Members or Persons.The President frdy, at his electj-on, delegate theresolution of such dispute or dJ-sagreement to the Board or acommittee appointed by the President. 4.8 Approval of Members. Unless elsewhere otherwise spe-cifically provided in this Declaration, the Articles or Bylaws, anyprovision of this Decraration, the Articl-es or Bylaws whichrequires the vote or wrj-tten assent of the Members of theAssociation or any class or cl-asses of membership shall- be deemedsatisfied by the following: (a) The vote in person or by proxy of the specifiedpercentage of Members at a meeting duly called and noticed pursuant to the provisions of the Articles or Bylaws dealing with annuaf orspecial meetings of the Members. (b) of Members as (c) then the vote required. Written consents signed by the specified percentageprovided by the Bylaws. If no percentage of Members is otherwise speci_fied,or written assent of a Majority of Members sha11 be 4.9 Additional Provlsions in Articles and l-aws.TheArticles and Bylaws ma relating to theconduct of the affairs of the Association and theof its directors, officers, employees, agentsinconsistent with law or this Decl_aration. rlghts and powersand members not 4.10 Association Rules. The Board sharr be empowered toadopt, ame@h rules and regulations as it deemsreasonable and appropriate (the "Association Rules") , binding uponall Persons subject to this Declaration and governing the useand/or occupancy of the common Area or any other part of theProject. The Association Rules may include the establj-shment of asystem of assessments enforceable as speciar Assessments.TheAssociation Rules shalL govern such matters in furtherance of thepurposes of the Association, includlnq, without llmitation, the useof the Common Areas; provided, however, that the Association Rulesmay not discriminate among Owners and Members except as expresslyprovided or permitted herein, and shall not be inconsistent withthis DecJ-aration, the Articres, Bylaws or Desiqn Guidel-ines . A l_ l- copy of the Association Rules as they may from time to time be adopted, amended or repealed or a notlce setting forth the adoption, amendment or repeal of specific portions of the Association Rul-es shall be del-ivered to each owner and Member in the same manner establ-ished in the Declaration for the delivery of notices.Upon completion of the notice requirements, said Association Ru1es sha1l have the same force and effect as if they were set forth in and were part of this Declaration and shall- be blnding on the Owners and Members, and all- other Persons havi-ng anyj-nterest in, or making any use of, the Property, whether or not actually received thereby. The Association Rul-esr ds adopted, amended or repealed, shalI be avail-ab1e at the principal office of the Association to each Owner, Member or other Person reasonably entitled thereto, upon request. In the event of any conf l-ict between any provj-sion of the Assocj-ation Rules and any provisions of this Declaration, or the Articl-es, Bylaws or Design Guidel j-nes, the provisions of the Association Rules shal-I be deemed to be superseded by the provisions of this Declaration, the Articl-es, Bylaws or Design Guidelines to the extent of any such conflict. 4.77 Indemnification. To the ful-lest extent permitted by Iaw,every-MveryofficeroftheAssociation,andthe members of the Design Review Committee, and the Decl-arant (to the extent a claim may be brought against the Declarant by reason of it.s appointment, removal or control over members of the Board or the Design Review Committee) shall be indemnified by the Association, or on behalf of the Assocj-atlon as a member of a committee or otherwise, mdy, in the discretion of the Board, be indemnified by the Association, against al-I expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed upon him in connection with any proceeding to which he may be a party, or in which he may become involved, by reason of his being or having served in such capacity on behaLf of the Association (or in the case of the Decl-arant by reason of having appointed, removed or controll-ed or failed to controf members of the Board or the Design Review Committee), or any settlement thereof, whether or not he is a director, officer or member of the Design Review Committee or serving in such other specified capacity at the time such expenses are incurred, provided that the Board shall determine, in good faith, that such officer, director, member of the Design Review Committee or other person, or the Declarant, did not act, fail to act, or refuse to act willfully or with gross negligence or fraudulent or criminal j-ntent in the performance of his duties. The foregoi-ng rights of indemnification shall be in addition to and not exclusive of al-l- other rights to which such persons may be entitl-ed at law or otherwise. 4.1,2 Non . To the fullest extent permit.tea U fre President, the Board, the Design committee or any other committees of the Association nor any L2 member thereof, nor any directors or officers of the Association, shal1 be liabl-e to any Member, Owner, Occupant, the Association, orany other Person for any damage, loss or prejudice suffered or claimed on account of any decision, approval or disapproval ofplans or specifications (whether or not defectj-ve), course ofaction, act, inaction, omissj-on, error, negligence or the like madein good faith and which Declarant, the Declarant, the President, the Board, or such commlttees or persons reasonable believed to bewithin the scope of their respective duties. 4.13 Easements. In addition to the bl-anket easements granted inSection-5.1,theAssociationisauthorizedandempoweredto grant upon, across or under real property maj-ntained or controlled by the Association such permits, Iicenses, easements and rights-of-way for sewer 1j-nes, water lines, underground conduits, storm drains, television cable and other similar public or private utility purposes, roadways or other purposes as may be reasonably necessary and appropriate for the orderly maintenance, preservation and enjoyment of the Common Area or recreational facilities or forthe preservation of the heal-th, safety, convenience and welfare ofthe Owners and Members, provided that any damaqe to a Lot resutting from such grant shalI be repaired by the Association at its expense. 4.L4 Acco_gglirrg. The Association, at aII times, shall keep, or cause to be kept, true and correct record.s of account in accordance with generally accepted accounting principles, and shallhave available f or the j-nspection of atl- owners and Members atreasonabl-e times during: regular business hours, such books which shall specify in reasonabl-e detail all- expenses incurred and funds accumulated from Assessments or otherwise. 4.15 Records. The Association shal-I, upon reasonable written request and during reasonable business houfs, make available forinspection by each owner and Member the books, records andfinancial- statements of the Association together with current copiesr ds amended from tlme to time, of thls Declaratj-on and theArticles, Bylaws, Association Rules and Design Guidelines.Notwithstanding the foregoing to the contrary, t.he Associationshall not be required to make its books and records available forinspection except as required by law. The Declarant shall- be underno obligation to make its own books and records avail-able forinspection by any Owner, Member or other person. 13 SECT]ON 5 EASEMENTS 5.1 Blanket Easements. Those easements required by the Projectsuu-@andpIatareadoptedherein.Further, there 1s hereby created a blanket easement upon, across, over and under the Property for j-ngress and egress (over existing roadways), installinq, constructinq, replacing, repairing, maintai-ningT and operating all, utilities, including but not Iimited to water, sewer, 9ds, telephone, electricity, tel-evision cable, security systems, and communication 1j-nes and systems, and in addition thereto for the use of emergency vehicles of al-I types. By virtue of the easement, it sha11 be expressly permj-ssible for the providing utility company to erect (including without l-imitation underg:round installation) and maj-ntain the necessary facilities, wires, circuits, conduits, cables and rel-ated appurtenances, facilities and equipment on the Property. Notwithstanding anything to the contrary contained j-n this Section, no easements shall- be created nor shall any sewers, electrical l-ines, water lines or other facil-ities for utilities be instal-Ied or relocated except as initlally created and approved by the Declarant or thereafter created or approved by the Association. This provision shalI in no way affect any other recorded easements on the Property. 5 .2 Use of Common Areas. Except f or the use l-imitations provided i wner and Member shall- have the non- excLusive right to use the Common Areas in conrmon with all other Owners and Members as requlred for the purposes of access and ingress and egress to (and use, occupancy and enjoyment of) any Lot owned by such Owner or Meml:er. Such right to use the Common Areas for purposes of access and ingress and egress sha11, subject to the Association Rules, ext.end to each Owner, Member, Occupant and the agents, servants, tenants, family members and j-nvitees of each Owner or Member. Such right to use the Common Areas shall be perpetual and appurtenant to each respective Lot, subject to and governed by the provisions of this Declaration, the ArticIes, ByIaws and Association RuIes and such reasonable Iimitatj-ons and restrictions as may from time to time be contained therein. 5.3 Exclusive Use of Rights. Certain areas of the Common Areas may be reseryard for the exclusive control, possesslon and use of the Owner of a Lot. If such an area serves as access to and from two Lots, the Owners of the two Lots shall have joint control, possession and use of such portion of sai-d area as reasonably serves both Lots. The exclusive use rights created herein are subject to the blanket utility easement, maintenance, and architectural and landscape control provisions contained in this Declaration and to such reasonabl-e rul-es and reqrulations with respect to possession, control, use and maintenance as the Association may from time to time promulqate. Easements are hereby created in favor of and running with each Lot having such an area for the exclusive control and use of each such area. Each Owner, by accepting title to a Lot, and each Member shall be deemed to 14 have further ratified the easements and rights to excfusive use created by this Section 5.3. SECTION 6.ASSESSMENTS 6.1 Creation of Lien and Personal Obligation. Each Owner and Uembe veyance of an interest in a Lot or by acceptance of his membership, is deemed to covenant and agree to pay to the Association: Reqular Assessments, Special Assessments, Capital Improvement Assessments, and Reconstruction Assessments, if applicable, such Assessments to be established and collected from t.j-me to time as provided in this Declaration. The Assessments, together with interest thereon, l-ate charges, attorneys I fees and court costs, and other costs of collectj-on thereof, as hereinafter provi-ded, shalI be a contj-nuing Iien upon such Owner or Member's Lot (or combined Lots as provided in Section 12.14) against which the Assessments are made. Each Assessment, together wlth such interest, and other costs, shal-l- also be the personal obligation of the Member and/or Owner to whom such Assessment rel-ates. The personal obligation for delinquent payments shall not pass to an Owner or Member's successor unless expressly assumed by him. The obligation of a Regular Member and the Owner of the Lot to which such membership appertains for the payment of Assessments shall be joint and several. 6.2 Purpose of Assessments. The Assessments levied by the Association shal1 be used to promote the health, safety and welfare of the owners and Members, to enhance the quality of life within the Project, to preserve the value of the Property, to pay the costs of administration of the Association and al-l- other Common Expenses or to otherwise further the interest of the Association. Where a Lot has separate 9ds r electr j.caI, sewer or other simj-lar utilities service, the cost of the same shall be the personal obligation of each owner. Maint.enance of sewer Iines serving a single Lot, if applj-cable, shall- be the responsibility of its Owner.AIso, a portj-on of the annual Assessments, which are payable monthly, may be used to provide an adequate reserve fund for the replacement, repair, and maj-ntenance of those portions of the Common Area and al-l- facil-ities, located within the Common Area, which must be replaced on a periodic basis, and the Board of Directors shal1 be obligated to establish such reserve fund. 6.3 Regular Assessments. 6.3.1 Except as otherwise specifically provided herein (including without limitation in Section 6.3.4), each Member shall- pay as his Regular Assessment such Member's Proportionate Share of the Common Expenses. Except as otherwise specifically provided herein, payment of Regular Assessments shal-l- be in such amounts and at such times as may be provided in the Articles and Bylaws or as determined by the Association. L5 6.3.2 Not later than sixty (50) days prior to thebeginning of each fiscal- year of the Association, the Associationshall- make availabl-e for revj-ew by each owner and Member at theAssocj-ation's office during reasonable times a pro forma operatj-ngstatement or budget for the upcoming fiscal- year which shaII, amongother thj-ngs, estimate the total Common Expenses to be incurred for such fiscal year. Subject to the provisions of Section 6.3.4, theAssociation sha1l at that time determine the amount of the Regular Assessment to be pai-d by each Member and notify the Member thereof. Each Member shall thereafter pay to the Association his Regular Assessment in monthly instal-lments. Each such instal-lment shalI be due and payable on the date set forth in the written notice sent to Members. 6.3.3 If the Association determines that the totaLRegular Assessments for the current year are, or will- become,lnadequate to meet all Common Expenses for whatever reason,including common Expenses in excess of the estimated Common Expenses used in preparatj-on of the Association's budget for thatyear, the President shal-l- then immediately determj-ne theapproximate amount of such inadequacy and, with the consent of theBoard, lssue a supplemental estimate of the Common Expenses and determine the revised amount of Regular Assessments to be paid by each Member for the balance of the year, and the date or dates when due. If the estimated total Regular Assessments for the currentyear proves to be excessive in light of the actual- Common Expenses, the Associ-ation mdy, at the discretion of the Board, retain such excess as additional working capital or reserves, reduce the amountof the Reqular Assessments for the succeedinq year, or abatecollection of Regular Assessments for such period as it deemsappropriate. No reduction or abatement of Regular Assessments because of any such anticipated surplus may diminish the quantity or quality of services upon which the Common Expenses for the year in question are based. 6.3.4 Special Assessments for Capj-taI Improvements. In addition to the annual Assessments authorized above, theAssociation may levy, in any Assessment year, a special Assessmentapplicable to that year only for the purpose of defraying, in whol-eor in part, the cost of any construction, reconstruction, repaJ-r orreplacement of a capital improvement upon the Common Area,including fixtures and personal property rel-ated thereto, provided that any such Assessment sha1l have the assent of two-thirds (2/3) of the votes of each cl-ass or Members who are votj-ng in person orby proxy at a meeting duly called for this purpose. 5 - 3.5 Special Assessments for Insurance. Homeowners Association, fnc. Board of Dj-rectors shall haveauthority to assess each owner for its equal pro-rata share1i-ability, fire and extended coveraqe monthly Assessment or The the of byseparate bilJ-ing to the Owner's mortgaqe for payment from Owner's escrow account at the sol-e discretion of the Board of Directors. l_6 6.3.6 Uniform Rate of Assessment Both annuaf and special Assessments must be fixed at a uniform rate for al-l Lots and may be on a monthly basis. Assessments on unimproved and improved Lots owned by Declarant shal-l-, notwj-thstanding anyt.hing to the contrary 1n the preceding sentence, be at a rate equal to twenty-fi-ve (252) percent of the Assessment rate applicable to Lots owned by owners other than Declarant.After any Lot under the Decl-arant's control- becomes occupied the Decl-arant shall be required to be charged at arate equal to the ful-l- Assessment of that Lot. Declarant sha1lalso, however, underwrite any difference between actual expenses ofthe Association and Assessments levied until Association control- passes to Cl-ass A Members. 6.3.7 Date of Commencement of Annual- Assessments: Due Dates. The an commence within the Property described on page 1 as to all Lots on the first day of the month following the conveyance of the first Lot within such Property. No Lot shaLl be conveyed, nor AssessmenL made until after the Common Area has been deeded to the Association.The first annual Assessment shall- be adjusted accordinq to the number of months remainingT 1n the calendar year. The Board of Directors shall fix t.he amount. of the annual Assessment against each Lot at least thirty (30) days in advance of each annual Assessment period.Written notice of the annual Assessment shall- be sent to every owner subject thereto. The due dates shal-l be established by the Board of Directors The Association sha1L, upon demand, and for a reasonabl-e charge, furnish a certificate sj-gned by an officer of the Association setting forth whether the Assessments on a specified Lot has been paid. A properly executed certj-ficate of the Associatj-on as to the status of the Assessments on a Lot 1s binding upon the Assocj-ation as of the date of its i-ssuance. 6.3.8 Effect of Nonpayrnent of Assessments: Remedies of the Association. -_zury essessment not pa. aays after tfre aue date shall bear interest from the due date at the rate of eighteen (18%) percent per annum. The Association may bring an action at 1aw against the Owner personally obligat.ed to pay the same, or foreclose the lien against the property. A delinquent Member shall- also be liable for attorneys' fees and all other related costs incurred by the Association as a result of such delinquency, including aII court, collection, and arbitration costs. No Owner may waive or otherwise escape liability for the Assessments provided for herein by non-use of the Common Area or abandonment of his Lot Notwithstanding the foregoingT any first Mortgagee who takes title to a Lot pursuant to the remedies provided in its deed of trust or Mortgagiee will not be l-iable for such Lot's unpaid dues, charges, or l-iens which accrue prj-or to the acquisition of title to such Lot by such Mortgagee. L7 6.4 Subordination of Lien. Any lien which arises against a Lot by re r refusal of any owner or Regular Member to make timely payment of any Assessment sha1l be subordinate to the l-ien of a prior recorded First Mortgage on the Lot, acquired in good faith and for value, except for the amount of the unpaid Assessment which accrues from and after the date on which a Eirst Mortgagee comes into possessj-on of or acquires tit.Ie to the Lot, whichever occurs first (together with any interest, cost, reasonable attorneys I fees and any late charges related thereto), and if any l-ien for unpaid Assessments prior to the date the First Mortgagee comes into possession of or acquires title to the Lot has not been extinguished by the process by which such First Mortgagee came into possession of or acquired titl-e to the Lot, such First Mortgagee shall not be l-iabLe for unpaid Assessments arising prior to the aforesald date and, upon written request to the Association by such First. Mortgagee, such lien sha11 be released in writing by the Assoclation. Any unpaid Assessments which are ext.inguished pursuant to the foregoing sentence shall- continue to be the personal obligation of the delinquent Owner and Regular Member and may also be reallocated by the Associ-ation among al-l Members as part of the Common Expenses. 6.5 Exery.!_igelsrly. The following Property shal1 be exempt from the li nts created herein: (a) A11 Properties dedicated to and accepted by a loca1public authority; and (b) The Common Area 6.6 No Offsets. A1I Assessments shall- be payable in the amount specified in the Assessment or notice of Asiessment and no of f sets against such amount shal-l- be permitted f or any reason, including, without Iimitation, a cl-aim t.hat (a) the Association, the Board, the Presi-dent or the Declarant is not properly exercising its duties and powers as provided in this Declaration;(b) Assessments for any period exceed Common Expenses; or (c) a Member has made, and elects to make, no use of the Common Areas. 6.'7 Homestead Waiver. Each Owner and Member, to the extentpermitted by lald, hereby waives, to the extent of any 1J-ens createdpursuant to this Declaration, whether such lj-ens 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 Col-orado or any statute of the United States now in effectr or in effect from time to time hereafter. 6. 8 Assessment Reserves Decl-arant s@ maintain with the Association the monthly instal-lment of the . Each owner, other than the deposit at closing and thereafter to an amount equal to three (3) times current annual monthly Assessment as 18 a reserve. Such reserve account shal-I not relieve an Owner from his obligations to pay his monthly instal-l-ment of the annual Assessment.The reserves in the Common Expenses which are collected as part of the Regular Assessments shal-J, be deposited by the Association in a separate bank account to be hel-d in trust for the purposes for which they are collected and are to be segregated from and not commingled with any other funds of the Association, except to the extent that the Association's regularly employed accountant deems it desirable to do otherwise on the basis of standard accounting prlnciples in similar contexts or the l-aws, tax or otherwise, of the State of Col-orado or the United States relating to non-profit corporatj-ons or homeowners associations. Such reserves shal1 be deemed a contrj-bution to the capital account of the Association by the Members. The responsibility of the Board(whether controlled by the Declarant or the Members) shall be only to utilize such reserves as the Board in good faith deems reasonable, and neither the Declarant, the Board or any member thereof shal-I have any liability to any Owner or Member or to the Association if such reserves prove to be inadequate. 6.9 Certificate of Payment.Any person acquiring aninterest in any Lot shal-I be entitled to a certificate from the Associatj-on setting forth the amount of due but unpaid Assessments relating to such Lot, if dDy, and such person shal-l not be liabIe for, nor shall any l-ien attach to the Lot in excess of, the amount set forth in the certificate, except for Assessments which occur or become due after the date hereof and any interest, costs, attorneys' fees and any late charges related to such Assessments. Nothing herein shall- be construed as requiring that the Association take any action required hereunder in any partlcul-ar instance, but the failure of the Association to take such action at any time shall not constitute a waiver of the right to take such action at a later ti-me or in a different instance. 6.10 Enforcement of Lien. The lien provided for in this Section O rnay f e f orecf osea Uy the Assoc j-ation in any manner provided or permitted for the foreclosure of realty mortgages or deeds of trust or pursuant to rul-es regarding the forecl-osure of Iiens by a homeowners' association that may exist in the State of CoIorado. 6.11 PIe . The Association exercise its Assessment powers and rights provided for in this Decl-aration as securi-ty for any obligation of the Association; provided, however, that any such pledge shalI require the prior affirmati-vevote or written assent of a majority of all of the Members. The Association's power to pledge its Assessment powers shall include, but not be 1imited to, the abil j-ty to make an assignment of Assessments which are then payable to, or which wiL1 become payable to, the Assocj-ation; which assiqnment may then be presently effective but shall al-Iow said Assessments to continue to be paid t_9 to the Association and used by the Association as set forth in thisDeclaration, unless and until the Association shal1 default on its obligations secured by said assignment. 6.1,2 Exe . Until- transfer dater ro Assessmentffiupon,orpayabIewithrespectto,any Lot owned by the Declarant, or an affiliate of the Decl-arant or anypartner (or such partner's successors, heirs or devisees) in theDeclarant to whom the Lot has been distributed by the Declarant (as distinguished from having been purchased by the partner), or by Decl-arant or other trustee for any of the aforesald Persons, until such Lot has been conveyed by the Decl-arant (or said affiliate,partner or trustee) to a non-affiliated purchaser thereof orDeclarant leases such Lot. 5.13 Notrce to Mortgaqee. Upon request of a first Mortgaqee ofanyr,ot@rreasonab1eCompenSationthereioie, the Association shal-l- report to such first Mortgagee any unpaid Assessment or other defaults under the terms of this Declaration which are not cured by said Mortgagee's mortgagor within thirty(30) days. 6.14 Notice and Quorum for any Section 3 @anyactionauthorizedunderSection3and4sha11be sent to all- Members not l-ess than thirty (30) days nor more thansixty (60) days in advance of the meeting. At the first suchmeeting ca11ed, the presence of Members or of proxies entitled tocast two-thirds (2/3) of aII the votes of each class of membershipshal-I constitute a quorum. If the requj-red quorum is not present, another meeting may be called subject to the same noticerequirement, and the required quorum at the subsequent meeting sha11 be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty(60) days fol-l-owing the preceding meeting. 6. 15 shall be hereafter of a deed waiver of Homestead.The lien ofsuperior to any homestead be provided by Colorado orto any Lot subject to thisthe homestead exempti-on as the Association Assessments exemption as is now or may Eederal- l-aw. The acceptance Decl-aration shal-I consti-tute a against said Assessment Iien. SECTION 7. INSURANCE 1.1, Aut@. The Association shall purchase and maintai pon the Common Areas including butnot limited to the insurance described in Section '7 .3.Suchpolicies, and endorsement thereon, or copies thereof shalI bedeposited with the Assocj-ation. The Association shalI advise theowner and Members of the coverage of said policies in order topermit the Owners and Members to determine which particular j-tems are incLuded within the coverage so that the owners and Members may 20 insure themselves as they see fit if certain items are not j-nsured by the Association. 1.2 Me . It shall be each owner's or Memberrs resp for himself insurance on hj,s own Lot, if dny, his additions and improvements thereto, furnishings and personal property therej-n, his personal property stored elsewhere within the Project, his personal liability to the extent not covered by the public liability insurance obtained by the Association and such other insurance which is not carried by the Association as the Owner or Member desires. No Owner or Member shall- maintain any insurance, whether on his Lot or otherwise, which would timit or reduce t.he insurance proceeds payable under the casualty insurance maintained by the Association in the event of damage to the improvements or fixtures on the Common Areas. 1 .3 Cove_rgge. The Association shall maintain and pay for, _policies of insurance as follows: 7.3. 1 A multi-periJ- type policy covering all of the Common Areas provi-ding, as a minimum, fire and extended coverage, and aI] other coverage in kinds and amounts customarily acquired or required for projects similar in construction, l-ocation and use, including, without limitation, perils normally covered by an "a]1-risk" policy, 1n an amount determined by the Association. 7 .3.2 A policy of comprehensive public liability insurance covering all of the Common Areas in an amount determinedby the Association for personal i-njury or death and/or property damage. The scope of such coverage shal-l- inc1ude aII other coverage in the kinds and amounts customarily acquired or required forprojects similar in construction, location and use, including, without limitation, liability for nonowned and hired automobiles, liability for property of others, liability arising in connection with the operatj-on, maintenance or use of the Common Areas, liability assumed by contract or contractual liability, and Iiability arising out of any employment contracts of the Association. 7.3.3 The Association shal-l, dL its election, obtain fidelj-ty bond coverage against dishonest acts on the part of directors, officers/ managiers, trustees, agents, employees or vol-unteers responsible for handling funds belonging to or administered by the Association. If funds of the Assocj-ation are handl-ed by a management agent, then fidelity bond coverage shall also be obtained for the officers employees and agents thereof handling or responsible for Association funds. The fidelity bond or insurance must name the Associati-on as the named insured and shal-I be written to provide protection in an amount not l-ess than the lesser of (a) one-half times the Association's estimated annual- operating expenses and reserves, (b) a sum equal to three (3) months I agqregate Reqular Assessments plus reserves r ot (c) the 2L estimated maximum amount of funds, including reserves, in the custody of the Associatj-on (and its management agent) at any one time. fn connection with such coverager drr appropriate endorsement to the policy to cover any person who serves without compensation shall be added j.f the policy would not otherwise cover volunteers. Such coverage must name the Association as an obligee. 1.3.4 A worker's compensation policy, if necessary, to meet the requirements of 1aw. 7.3.5 A policy of "directors and officers" liability insurance if determined necessary by the directors of the Association. 7.3.6 Such other insurance, and in such amountsr ds the Association shal-l- determine from time to time to be desirable. 1.4 Required Provisions. The insurance policies purchased by the Associatj-on shall, to the extent reasonabl-e and available, contain the fo1lowinq provisions: 7 .4.1 The coveraqe afforded by such policies shall- not be brought into contribution or proration with any insurance which may be purchased by an Owner, Member or First Mortgagee. 7 .4.2 The conduct of any one or more owners or Members shal-l- not constitute grounds for avoiding liability on any such policies. 7.4.3 There shall- be no subrogation with respect to the Association, its agents or employees, Owners, Members, or members of their households or families and employees, and each Mortgagee of all or any part of the Property or of any Lot, or the policy(ies) should name said persons as additional- insureds; and, each policy must contaj-n a waiver of any defenses based on co- insurance or on invalidity arising from the acts of the insured. '7.4.4 A "severability of interest" endorsement shal1 be obtained which shall preclude the insurer from denying the claim of any Owner or Member because of the conduct or negligent acts of the Associatlon and its aqents or other Owners or Members. 7.4.5 Any "no other insurance" clause shall- exclude insurance purchased by Owners, Members or First Mortgaqees. 1 or neglectwithin the Associ-ationportion of .4 .6 Coverage must not be prejudiced by (a) any of owners or Members when such act or neglect is controf of the Association or (b) any failure of to comply with any warranty or conditj-on reqardi-ng the Project over which the Association has no control act not the any 22 7.4.7 Coverage may modified without at 1east thirtyas the Association may reasonablynotice to the Association. 7.4.9 entered into by the not be canceled or substantially(30) days (or such lesser period deem appropriate) prior written 1.4.8 Any policy of property insurance which gives the carrier the right to el-ect to restore damage in l-ieu of a cash settlement must provj-de that such election is not exercisabl-e without t.he prj-or written approval of the Association, or when in conflict with the insurance trust provisions contained herein, or any requirement of l-aw. A recoqnition of any insurance trust agreement Association. Each hazard insurance policy shal-l- be written'l .4.10 by a hazard j-nsurance carrier which has a financial rating as designated in Best's Key Rating Guide of Cl-ass VI or better, or if such rating service be discontinued, an equj-va1ent. rating by a successor thereto or a similar such rating service. Each insurance carrier must be specificalJ-y licensed or authorized by law to transact busi-ness within the State of Col-orado. 1 .4.L! Pol-icies shal-1 not be utilized where, under the terms of the carrier's charter, Bylaws or poI1cy, contributions or assessments may be made agaj-nst the Owners, Members or the Association or Ioss payments are continqent upon action by the carrier's board of directors, policy hol-ders, or members. 1.5 Non . Notwith- standinq t nce coverage as stated herein, neither the Association nor any Board member nor the President of the Association nor the Declarant shall be li-able to any Owner, Member, Mortgagee or other Person if any risks or hazards are not covered by insurance or if the amount of insurance is not adequate, and it shal-l- be the responsj-bility of each owner and Member to ascertaj-n the coverage and protection afforded by the Association's j-nsurance and to procure and pay for such additional insurance coverage and protection as the Owner or Member may desire. 1.6 Premiums. Premiums upon insurance policies purchased by the Association shalI be paid by the Association as a Common Expense, except that the amount of increase over any annual or other premj-um occasioned by the use, misuse, occupancy or abandonment of a Lot or its appurtenancesr or of the Common Areas, by an Owner or Member, shafl be assessed against that particular Owner or Member. 7 .7 Insurance Cl-aims. The Association is hereby irrevocably appointed@subjecttotheprovJ.sionscontainedherein, to adjust al-1 claims arising under insurance policies 23 purchased by the Association and to execute and del-j-ver releases upon the payment of cl-aims, and to do a1I other acts reasonably necessary to accomplish any of the foregoing. The President of the Association has ful-l- and complete power to act for the Association in this regard and ildy, at his discreti-on, appoint an authorized representative r or enter into an insurance trust agreement wherein the trustee shaI1 have authority, to neqoti-ate fosses under any policy purchased by the Association. 7.8 Benefit.Except as otherwise provided herein, al-1 insurance pofici-es purchased by the Association shaIl be for the benefit of, and any proceeds of insurance received by the Association or any insurance trustee shal-l be hel-d or disposed of in trust for, the Association, the Owners or the Members, as their interests may appear. SECT]ON 8. DAMAGE AND DESTRUCTION OF COMMON AREAS 8.1 Duty of Association. In the event of partial or total- destruction of the Common Areasr or any improvements thereon, it shall be the duty of the Associatlon to restore and repair the same as promptly as practical pursuant to this Section B. The proceeds of any casualty insurance maintained pursuant to this Decfaratlon shalI be used for such purpose, subject to the prior rights of Mortgagees whose interest may be protected by said policj-es. Restoration and reconstruction under this Section B shall refer to the restoration and reconstruction of both constructed improvements and natural terrain. 8.2 Automatic Reconstruction. In the event that the amount avail-able f ny insurance policies for such restoration and repair, together with any uncommitted or unreserved capital of the Associatj-on, shalI be at Ieast seventy-five (75%) percent of the estimated cost of restoration and repair, a Reconstruction Assessment aqainst each Member and its Proportionate Share, and/or the Owner of the Lot to which a Regular Membership is appurtenant, may be levied by the Association to provide the necessary funds for such reconstruction in excess of the amount of the funds avaj-Iable for such purpose.The Association shall- thereupon cause the damaged or destroyed Common Areas to be restored to substantiatly the condition the Common Areas were in prior to the destruction or damaqe. 8.3 Vote of Members. In the event that the amount availabLe fromthepwinsurancepo1iciesforsuchrestoration and repair, together with any uncommitted or unreserved capital of the Association, shall be less that seventy-five ('15%) percent of the esti-mated cost of restoration and repair, the Common Areas shall be replaced or restored unl-ess two-thirds (2/3) of the Members, dt a special meetingr held for such purpose, disapprove of such replacement or restoration. If the Members do not disapprove the proposed replacement or restoration, the Association shaLl Ievy 24 a Reconstruction Assessment against each Member in its Proportionate Share, and/or the owner of the Lot to whi-ch a Regular Membership is appurtenant, and cause the damaged or destroyed Common Areas to be restored as closely as pract.ical to its former condition prior to the destruction or damage. insurance proceeds remain after any reconstructj-on by the Association pursuant to this Section, the Association, in its sole discretion, may retain such sums in the general funds of the Associatj-on or may distribute all or a portion of such excess to the Members in their Proportionate Shares, subject to the prior rights of Mortgagees whose interest may be protected by the insurance policies carried by the Association. The rights of a Member, an Ownerr or the Mortgaqee of a Lot as to such distribution shall- be governed by the provisions of the Mortgage encumlcering such Lot. 8.5 Use of Reconstruction Assessments All- amountscollected as Reconstruction Assessments shalI only be used for thepurposes set forth in this Section B and shall be deposited by theAssociation in a separate bank account to be held in trust for suchpurposes. Such funds sha11 not be commingled wlth any other fundsof the Association and shal1 be deemed a contribution to thecapital account of the Assocj-ation by the Members.Any Reconstruction Assessment shal-I be secured by the lien provj-ded for in section 6. 8.6 Contract for Reconstruction.In the event theAssociatlon undertakes the repair and restoration of the CommonAreas, the Association shall contract with a licensed contractor or Iandscaper who may be required to post a suitable performance or completion bond. The contract with such contractor or contractors shall provj-de for the payrnent of a specified sum for completion ofthe work described therein and shalI provide for periodic disbursements of funds, whj-ch shall be subject to the prior presentation of an architect's, or similar, certificate containing such provisions as may be appropriate in the circumstances and deemed suitable by the Association. 8.4 Excess Insurance Proceeds 8.7 Insurance Proceeds Trust fn the event any excess Upon receipt by theAssociation of any insurance proceeds, the Associatj-on may causethe insurance proceeds to be paid directly to a bank, savings andIoan association, or trust company located in Garfietd County, Colorador ds designated by the Association as trustee (the "Insurance Trustee"). Such funds shall be received, held and administered by the Insurance Trustee subject to a trust agreementconsistent with the provisions of thls Declaration and which shaLl- be entered into between the fnsurance Trustee and the Association. Disbursements to contractors performing any repair or reconstruc- tion upon the Property shal1 be made periodically as the work 25 progresses in a manner consistent with procedures then followed by prudent lending institutions in Garfield County, Colorado. SECTION 9 CONDEMNATION ff at any time or times during the contj-nuance of ownership pursuant to this Declaration a1l- or any part of the Common Areas shall be taken or condemned by any public authority or sol-d or otherwise disposed of in l-ieu of or in avoidance thereof, the fo1lowing provisions of this Article sha1l apply: 9.1 Proceeds. AlI therefrom, the sum of which Award", sha11 be payable to compensatlon damages or other proceeds is hereinafter cal1ed the "Condemnationthe Association. 9.2 Complete Taking. 9.2.1 In the event that all- of the Common Areas are taken or condemned or sol-d or otherwise disposed of in lieu of or in avoidance thereof, the Condemnation Award shaLl be apportioned among the owners equally and payment of said apportloned amounts shall be made payable to the owner and the flrst Mortgagee on his Lot jointly, 9.2.2 On the basis of the principle set forth in the .l-ast preceding paragraph, the Association shall determine as soon as practj-cable the share of the Condemnation Award to which each Owner is entitled. 9.3 ParEiel_ ig]<irrg. In the event t.hat less than the entire Common Area is taken or condemned or sold or otherwise di-sposed of in lieu of or in avoidance thereof, the Condemnation Award shall first be applied by the Association to the rebuilding and replacement of those j-mprovements on the Common Area damages or taken by the condemning public authority, unless seventy-five (75%) percent of the Owners and the first Mortgagees of each Lot agree otherwise. Any surplus of the award or other portion thereof not used for rebuilding and replacement shal-l be used by the Association for the future maintenance of the Common Area. 9.4 Mor@. The Association shall give any first t"tortgagee of a Lot timely written notice of any condemnation proceedings or threat thereof and destruction. SECTION 10. MATNTENANCE, REPAIRS AND REPLACEMENTS 10.1 Owner's ResponsibiliLy. Each Owner shall furnish and be responsib1ef@wnexpenSe,a11ofthemaintenance, repairs and replacements within his own Lot. Each Owner shaII, dt his sofe cost and expense, repair his residence, keeping the same in a condition comparable to the condition of such resj-dence at the 26 time of its initial construction, excepting only normal wear and tear. 1,0 .2 Ma j-ntenance of Common Areas . Except as otherwiseprovided aintenance, repaj-rs and replacements of the Common Areas shall be furnished by the Association as part of the Common Expenses, subject to the Bylaws and Association Rul-es . lf, due to the act or neglect of an owner or Member, or the invitee, guest or other authorj-zed visj-tor of either, or an Occupant of such owner or Member's Lot, damage shal-l- be caused to the Common Areas or to a Lot or Lots owned by others, or maintenance, repairs or replacement shall be required whlch would otherwise be a Common Expense, then such owner or Member shall pay for the damage and for such maintenance, repairs and replacement as may be determj-ned necessary or appropriate by the Association, to the extent not covered by the Association's insurance. Such obligation shall- be a Special Assessment secured by the lien provided for in Section 6. 10.3 Owner's Obligations to . If all or any portion of a resid y fire or other casualty, it shall be the duty of the owner thereof, with all due diligence, to rebuild, repair, or reconstruct such resldence in a manner which will substantially restore it to its appearance and conditionimmediately prior to the casualty.Reconstruction shal-1 be undertaken with three (3) months after the damage occurs, and shall be completed within twelve (12) months after the damaqe occurs, unless prevented by causes beyond the control- of the Owner or Owners. If construction shall not begin within three months, the structure shal1 be presumed to be a public nuisance which sha11 be so declared by Garfield County District Court upon peti-tion by theAssociation. Such declarat.ion shalI aIIow razing of the structure, the costs of which shal-l- be borne by the lot owner and paid by theAssociatlon to be reimbursed as a special assessment by the lot owner. 10.4 Right of Access. An authorized representative of the Association, and all contractors, repairmen or other agents employed or eng'aged by the Association, shall be entitled to reasonable access to each of the Lots as may be required in connection with maintenance, repairs or replacements of or to the Common Areas or any equipment, facil-itles or fixtures affecting or servJ-ng other Lots and the Common Areas t or to perform any of theAssociation's duties or responsi-bil-ities hereunder.AIIconstruction activities shalI access the Project through aconstruction entry if same is provided. 10.5 Construction in Common Areas. Nothing shall be altered in, constructed oLr or written consent of the removed from the Common Area except on the Association and the Desiqn Revlew Committee. 27 SECTION 11 ARCHITECTURAL AND LANDSCAPE CONTROL 11.1 Appointment of Design Review Committee. The Association shall have a Design Review Committee consisting of not less than one (1) nor more than three (3) personsr ds specified from time to time in the Design Guidelines by resol-ution of the Board. The Declarant shall initially appoint the members of the Design Review Committee. The Declarant shall retain the right to appoint, augmentor replace all- members of the DesJ-gn Review committee until the date of Transfer or as otherwise provided in the Design Guidelines. Thereafter, members of the Design Review Committee shall- be appointed by the Board as vacancies arise. Persons appointed to the Desi-gn Review Committee, other than those persons appointed byDeclarant, must be Members or satisfy such other requirements as may be set forth j-n the Design Guidelines.The Declarantvoluntarily may (but shal-I not be required to) permit the Members to appoint one or more members of the Design Review Committee at any time. Decisions made by the Design Review Committee shall becarried by a vote of a majority of the Members unless otherwisespecified herein, or in the Design Guidelines of the Association Rul-es. 1,1,.2 Desrgn Guidelines. The Design Review Committee shall estab1ish@ura1ru]-es,iegu1ations,restrictions, architectural standards and design guideJ-ines (the "DesignGuidelin€s"), which the Design Review Committee mdy, from time totlme in its sole discretion, amend, repeal or augment. The Design Guidel-ines are hereby incorporated herein and shal-I be deemed to bea part of this Declaration and shall- be binding on al-I owners, Members or other Persons as if expressly set forth herein. A copyof the current Design Guidelines shall at all tlmes be a part ofthe Association's records. The Design Guidelines may include, among other things, the following restrictions and Limitations: 11,.2.1, Procedure for submittal of all constructionplans to Design Review Commi-ttee. 11,.2.2 Tlme limitations for the completion, within specified periods after approval and coflrmencement of constructionof the improvements for which approval is required pursuant to the Design Guidelines. ]-1.2.3 Designation of a "building envelope" within aLot, thereby establ-ishing the maximum developable area of the Lot.Accessory buildirrgs may be excluded from the building envelope if approved by the Design Review Committee. All structures shatl be sited on each lot by the Design Review Committee. Unl-ess varied bythe provisions of Paragraph 21.4 hereafter, no structure on any lot shal-I be constructed closer than twent.y-five (25) feet to any sideor rear l-ot l-ine or cf oser than f if ty (5 0 ) f eet f rom any f ront l-ine. In siting a structure, the Design Review Committee shall- 28 approve its l-ocation as near to the spot selected by the Owner as shall not impede or restrict the view plane of other Owners. 1,1.2.4 Approval of plans and specifications prior to the commencement of all- construction. No building shal-l- be erected by means of other than new construction, it being the purpose of this covenant to ensure that old buildings wlll not be moved from previous locatj-ons and placed upon a lot. AlI structures shall be constructed of either brick, stone, lumber, stucco, or a combination thereof. The use of cinderblock shall- noL be allowed unless it is faced with another material herein approved. A11 driveways and parking areas shalI have paved surfaces. No structure shall be placed or erected upon any l-ot which is, ever has been, or could be made the subject of a specific ownership tax as now defined 1n Title 42 of the Colorado Revised Statutes, nor shal-I structures constructed in the fashion and manner as mobile homes or manufactured housing be al-l-owed. 77 .2 .5 Conformity of completed improvements to plans and specifications approved by the Design Review Committee; provj-ded, however, as to purchasers and encumbrancers in good faith and for val-ue, unless notice of noncompletion or nonconformance identifying the violating Lot and specifying the reason for the notice, executed by the Design Review Committee, shal-l be recorded with the County Recorder of Garfield, and given to the owner of such Lot within one (1) year of the expiration of the time Iimitation described in Section 1,1.2.2 above, or, if later, within one (1) year following completion of the improvement, or unless Iegal proceedings shal-l- have been instituted to enforce compliance or completion within said one (1) year period, the completed improvements shall- be deemed to be in compliance with plans and specifications approved by the Design Review Committee and in compllance with the architectural- standards of the Associatj-on and t.his Declaration, but only with respect to purchasers and encumbrancers in good faith and for value. r.:-..2.6 The Design Review Committee shall list the varieties of plants that shall be permitted to be planted on any lot. A list of such plants sha1l be kept on file at al-I times by the Homeowners Association. The Homeowners Association mdy, from time to time, amend the Iist of permitted plants to add or delete certain varieties. 71- .2 .1 The Design Review Committee or the Homeowners Association may make rules prohibiting the use of a1I chemj-cal pesticides and herbicides during certain peri-ods of the year, which rules may lnclude a provJ-sion for Special Assessments to be made in the event of violation of this Section and Section 11.2.6. L]-.2.B Such other l-imitations and restrictions as the Board or Design Review Committee in its reasonabl-e discretion shall adopt, including, without limitation, the regulation of al-1 29 exterior lighti-ng, landscaping (including without l-imitation absolute prohibition of certain types of landscapi-ng, trees and plants), construction, reconstruction, exterior addition, change or alteration to or maintenance of any buildinq, structure, foundatj-on system, wal-1 or fence, including, without limitation, the nature, sty1e, shape, height, materials, exterior co1or, surface texture, location of any such improvement, and prohibj-tion of construction during certain periods of the year. 1,1.2.9 Special assessments for violations of these or any other restrictions that the Design Review Committee creates. 11.3 General Provisions. 11.3.l- reasonable fees speci f icat j-ons . The Desigrn in connection Review Committee may assess with its review of plans and 77.3 .2 The Design Review Committee may delegate its plan review responsibil-ities, except final review and approval as may be required by the Design Guidelines, to one or more of its members or architectural consuLtants retained by the Design Committee. Upon such delegation, the approval or di-sapproval of pJ-ans and specifications by such members or consuftants shall be equi-valent to approval or disapproval by the entire Desi-gn Review Committee. 11.3.3 The address of the Design Review Committeeshall be the address established for griving notice to the Association, unless otherwise specified in the Design Guidel-ines. Such address shal-l- be the place f or the submittal- of plans and specifications and the place where the current Design Guidelines shall be kept. 11.3. 4 The establ-ishment of the Design Review committee shall not owners to specified disapprove accordance specified days. and the procedures herein for architectural approval be construed as changing any rights or restrictions upon maintain or repair their Lots as may otherwise be in this Declaration, the Bylaws or Association Ru1es. 11.3.5 The Design Review Commlttee shaLl- approve or any plans and specifications submitted to it in with the Design Guidelines wj-thin such period as may be in t.he Design Guidelines within a maximum of thirty (30) l-1.4 Approval- and Conformity of Plans. No building, fence, wall or other structure or improvement of whatever type shall be commenced, erected or maj-ntained upon the property, nor shal-l- there be any addition to or change to the exterior of any residence or other structure, improvement, or Recreatlon facility upon a Lot or the landscaping, grading or drainage thereof, including, without 30 limitation, the painting (other than painting with the original or subsequently approved color of paint) of exterior walIs, patio covers and fences, except in compliance with plans and specifications therefor which have been submitted to and approved by the Design Review Committee in accordance with the Design Guidelines as to harmony of externaf design and location in relation to surrounding structures and topography. In the event that the Declarant or its successors aflows the common area to be open to the general public, fences around an Owner's property in conformance with Design Guldelines shal-l be speciflcally permitted. 11.5 Non-Liability for Appr . Plans and speci-fi- cat j-ons s iew Committee as to sty1e, exterior design, appearance and location, and are not approved for engineering design or for compl.i-ance with zoning and building ordinances, and by approving such plans and specifications neither the Design Review Committee, the members thereof, the Association, any Member, the President, the Board nor the Declarant specifications, (c) the development, or manner of development of any property within the Prince Creek Estates r or (d) the execution and filing of an estoppel certificate pursuant to the Design Guidelines, whether or not the facts therein are correct; provi-ded, however, that such action, with the actual- knowledge possessed by him, was taken in good faith. Approval of plans and specifications by the Design Review Committee is not, and shal-I not be deemed to be, a representati-on or warranty that said plans or specifications comply with applicable qovernmental ordinances and building codes. 11.6 fnspection and Recording of Approvaf. Any member or authorized consultant of the Design Review committee, or any authorized officer, director, employee or agent of the Association, may at any reasonabfe time enter, without being deemed guilty of trespass, upon any Lot after reasonable notice as provided herein to the owner in order to inspect improvements constructed or being constructed on such Lot to ascertain that such improvements have been or are being built in compliance with the Design Guidelines and this Declaration. The Desiqn Review Committee sha1l cause such an inspectj-on to be undertaken within thirty (30) days of a request therefor from any Owner as to his Lot, and if such inspection reveals that the improvements Iocated on such Lot have been completed in compliance with this Section 11 and the Design Guidelines, the Design Review Committee shall provide to such Owner a notice of such approval in recordable form which, when recorded, sha11 be conclusive evidence of compliance with the provisions of this Section 11 and the Desj-gn Guidelines as to the improvements described in such recorded notice, but as to such improvements only. 11.7 Reconstruction of Common Areas. The reconstruction by the Associ truction by casualty or otherwise of any Common Areas which is accomplished in substantj.al 3l_ compliance for such Common Areas shal-l- not require complj-ance with the provisions of this Section 11 or the Design Guidel-ines. 1l-. 8 Addition .The Board may promulgate as a part. of the DesJ-gn archj-tectural and landscape standards, deems to be appropriate and as are Declaration. Guidelines such additionalrules and regulations as itnot in confLict with this 11.9 Reservation of Rj-ght to Exercise by Decl-arant. Notwith- standing any othrer p he contrary contained j-n this Declaration, the Articles, the Bylaws, the Rules and Regulatj-ons or the Regrulatory Agreement, Declarant reserves the right to exercise the rights, duties and functions of the Associatj-on's Desiqn Review Commit.tee until such tj-me as all of the Lots situated on the Property, including any Property and Lots annexed thereto and made subject to this Declaration, have been sold and conveyed by Declarant. SECTION 12. USE AND OCCUPANCY RESTRICTIONS 12.l Residential Use. Each Lot may be used only for resi- dential purposes ana none other.No business or commercial building may be erected or any Lot and no business or commerclal enterprise or other non-residential- use may be conducted on any part thereof except as approved under the plat or subdivision Agreement. No temporary buildj-ngs, structures or trail-ers may be erected, placed or maintaj-ned on any Lot except as expresslypermitted by, and in compliance with the Desiqn Guidel-ines. Nothing herein contained shall be deemed to limit the Declarant I s rights as set forth in Section 15. L2.2 Violation of Law or Insurance. permit Common thereon anytninq @ in Areas which will result in the No Owner or his Lot or in cancelLation any Iaw. Member shallor upon any of insurance or which would be in violation of 1,2.3 Signs. No sign of any kind shal-l- be displayed to the public view or from any Lot or any Common Areas without the approval of the Assocj-ation or the Design Review Committee, except:(a) such signs as may be used by Decl-arant in connection with the development and sal-e of Lots in the Project; (b) such signs as may be required by 1ega1 proceedings, or the prohibition of which is precluded by 1aw, (c) such signs as may be required for traffic control and regul-ation of Common Areasi ort (d) one "for Sa1e" sign which sha11 not exceed two feet by three feet. 72.4 Anima1s. No animals, i-ncluding horses or other domestic farm animal-s, fowl- or poisonous reptiles of any kind may be kept, bred or maintained in any Lot or in or upon any Common Area, except a reasonable number of commonly accepted household pets in accordance with the Association Rules. No animals shal-I be kept, 32 bred or raised within the Project for commercial purposes. In no event shal-1 any domestic pet be allowed to run free away from its owner's Lot without a leash, or so as to create a nuisance. L2.4.1 Lot Owners shall be entitled to keep a dog on their property pursuant to the following restrictions and llmitations:(a) No more than one (1) dog shal-l- l-ot Owner at any time on any one lot. (b) Dogs shall be kept under the Owner at all times and shall not be permitted to cause a nuisance in the Subdivision. be kept by any control of the run free or to (c) Dogs shall not be all-owed to bark contj-nuously, which shal1 be defined as barking for a continuous 15-minute period. (d) Dogs shall be leashed or kenneled at all times. Metal fencing will be allowed for the purposes of kenneling a dog. Location of kennels shal-l- be subj ect to review of the Design Revj-ew Committee. Kennef s shal-1 be installed prior to issuance of a Certificate of Occupancy. (e) Al-l- ]ot owners shal1 keep animals reasonably c]ean, and all lots shal-l be free of refuse, and animal waste. (f) The Association shall assess and enforcepenalties against Owners violating the restrictions applying to animal-s as fol-l-ows: One Hundred DoIIars ($100 ) f or the f irst violation committed by an Ownerrs dog; Two Hundred Doll-ars (5200) f or the second vj-ol-ation; Three Hundred DoIlars ($300 ) for the third violation; and for each succeedinq viol-ation the fine increases 1n One Hundred Dol-Iar ($100) increments. Should any dog chase or molest deer, elk, poultry, or any domesti-c animals or persons r or destroy or disturb property of another, the Association shal-l- be authorized to prohibit the property Owner or resident from continuing to maintain the offending animal on his property and may dispose of that anj-mal, if necessary, to protect wildlife or other Owner's domesti-c anlmals, persons or property. The offending dog owner shall be provided wrj-tten notice of such action at l-east two(2) days before disposal- occurs. Within such two*day period, the of fending dog shal-l be kennel-ed at a licensed kennel. AI1 charges associated with action taken by the Association may be assessed against either the 1ot Owner and/or the dog owner, or both, at the Association's sofe option. 1,2.5 Nuisances No owner or member shall- permit or suffer anything to be done or kept about or withj-n his Lot r or on or about the Property, which wiII obstruct or interfere with the rights of other Owners, Members, occupants or Persons authorized to the use and enjoyment of the Common Areas, or annoy them by unreasonable 33 noises or otherwj-se, nor wiII he commit or permlt any nuisance or commit or suffer any iI1ega1 act to be committed therein. Each owner or Member, shal1 comply with the Association Rules, the requirements of al-1 heal-th authorj-ties and other governmental- authoritles having jurisdiction over the Property. 12.6 Boats, RVrs and Motor Vehicles. Except as specifically permittea Uy o boats, trailers, buses, motor homes, campers, snowmobiles, four-wheelers, or other vehicles shall be parked or stored in upon a Lot except within an encl-osed garaqe or fuI1y screened area as permitted by the Design Guidelines; (b) no vehicle shal-l- be repaired or rebui]t in any Lot or upon the Common Areas; and, (c) nothing shal-l be parked on the Streets for longer than 24 hours. The Association may remove, or cause to be removed, any unauthorized vehicle at the expense of the Owner thereof in any manner consistent with Iaw. 72.1 Lights.No spotlights, flood lights or other high intensity lighting sha1l be placed or utilized upon any Lot, which in any manner will al-low liqht to be directed or reflected upon Common Areas, or any part thereof, or any other Lot, or any neighboring property. Security lighting is subject to this provision and must be shielded and dlrected downward. 12.B Antennas. No radio, tefevision or other antennas of kindorna-ture,ordeviceforthereceptionortransmission radio, microwave or other simj-1ar signals, shaIl be placed maintained upon any Lot except as may be permitted by Association Rules or j-n accordance with the Desiqn Guidelines. fully shieLded satel-lite dish is acceptable. any of or the A L2.9 Garbaqe. No rubbish, garbage or trash, or other waste material- snaff ne kept r or permitted on any Lot so as to be visible f rom another Lot or the Common Areas. No incinerators shal-l- be kept or maintained in any Lot.No refuse pile, garbage or unsi-ght1y objects shall be allowed to be placed, accumulated or suf f ered to remain anlrwhere on a Lot. Trash removal shall- be accomplished through contract negotiated by Association Directors and bil-l-ed as part of the regular assessment. 72 .70 Safe Condition. - Without limiting any other provision in this secti-on, each Owner shall maintaln and keep his Lot at all times in a safe, sound and sanitary condit.ion and repai-r and sha1l correct any condition or refrain from any activity which might interfere with the reasonable enjoyment by other owners or Members of their respective Lots or the Common Areas. 1_2 .1,1 Fires. Other than commercially manufactured barbecues or properly constructed barbecue pits or gri11s, and firepits in compliance with the Association Rules and the Design Guidelines, or as otherwise expressly permitted in the Assocj-ation Ru1es, ho open fires shaI1 be permitt.ed on the Lots nor shal-l- any 34 other similar activity or condition be permitted which would tend to increase the insurance rates for the Common Area, or for other Owners. ]-2.72 Cl-othes Dryj-nq Area. No portion of any Lot shall- be used as a drying or hanging area for laundry of any kind unl-ess totally screened from view, it being the intention hereof that all such facilities shal-1 be provlded within the buildings to be constructed on each Lot. ]-2.L3 Swimming Poof s. No swimming pools or tubs shal-I be placed outside of the constructed building envelope on any l-ot, except as may be inteqrated-with the qeneral construction and as may be permitted by the Association Rules or in accordance with the Design Guidelines. 12.1,4 Weed Control. It shall- be Lot owners responsibility to controf aff weeds and thistle on their entire Iot. Failure to control all- weeds and thistle can be remedied by the HOA and a special assessment issued. 72.75 No Obstruction to Drainage.No owner shall erect, construct, maintain, permit or allow any fence or other improvement or other obstruction which would interrupt the normal drainage of the l-and or within any area designed on a PIat, or other binding documentr ds a "drainage easement", except that, with the prior consent of the County and the Design Committee, non- permanent structures, including fencesr ildy be erected in those areas which contain only underground cl-osed conduit storm drainage facilities. 72.76 Rental of Lots. An owner who feases his Lot to any Person shall be responsibte for assuring compliance by his lessee with all of the provisions of this Declaration, the Articles, Bylaws, Association Rules or Desi-qn Guidelines, aII as amended and supplemented from t.ime to time, and shafl- be jointly and severally responsible for any violations by his lessee thereof. 12.11 Sewage Dj-sposal.Each resi-dence shal1 contain at Ieast one (1) fuIly-equipped bathroom.AlI sewage shall- be disposed of by means of an individual sewage treatment facility or septic tank and leachfield approved by the Colorado State Health Department or 1oca1 health aqencies havinq jurisdiction thereof. Owners shall mai-ntain such treatment facilities in good operating condition. 72.78 Resubdivision Prohibited. The resubdivision of a l-ot by an individual lot Owner is prohibited. Boundary line adjustments which do not result in the creation of additional- Iots shall not constitute resubdivision. 35 7 l-2.L9 Fences and Hedges. The Design Review Commi-ttee must approve @tion of aI1 fenci-ng prior to installation. Only wooden fencing shalL be permitted within the Subdivision, with l-imited exceptions pertaining specifically to gardens, kennels, or other elements where a wooden fence would not serve the purpose desired, be 1t to keep animal-s in an encfosed area or to keep wi-ldlife out of an enclosed area. Barbed wire fencing shal-l- be prohibited. The Design Review Committee shaII consider how the fencing wlII affect wil-d1ife. Wood fencing shall not exceed forty-two (42) j-nches in height, shal-I not have more than two (2) horizontaf po1es, and the bottom pole shal-l- be at least twenty-four (24) inches off the ground. No fences or hedges shal-I be constructed, grown or maintained on any 1ot higher than six (5) feet above ground level-, but this restriction sha1l not apply to patio fences attached to dwellings. 1,2 .20 Woodburning Stoves and Fireplaces. Each l-ot within t.he Subdivision shall- be prohibited from operating or install-ing an open hearth sol-id fuel burning devj-ce or a woodburning stove. Dwelling shall be entitled an unrestrlcted number of natural gas burning fireplaces or appliances. ]-2.21 Enforcement.The Association or it authorized agents may enter any Lot in which a violation of these restrictions exists and may correct such viol-ation at the expense of the Owner of such Lot. Such expenses, and such assessments as may be imposed pursuant to the Bylaws, Association RuIes or Desiqn Guidelines, shall- be a Special Assessment secured by a l-ien upon such Lot enforceable in accordance with the provisions of Section 6 hereof. AIl remedi-es described in section 74 hereof and al-L other rights and remedies avail-abl-e at law or equity shall be avail-able in the event of any breach by any Owner, Member, Occupant or other Person of any provj-sion of this Section 12. 12 .22 Modification. The Board may modify or waive the foregoing restriction or otherwise restrict and 'reg'ulate the use and occupancy of the Property and the Lots by reasonable rules and regulations of general application adopted by the Board from time to time which shall be incorporated i-nto the Association Rules. SECTION 13. RIGHTS OF FIRST MORTGAGEES l-3. 1 General Provisions. Notwithstanding and prevailing over anyother@sDec1aration,theArtic1es,By1aws, Association Rules or Design Guidelines, the following provisions sha1l apply to and benefit each holder of a First Mortgage upon a Lot. 13.2 Lirbrlity for Assess*e . A First Mortgagee who comes into possessi owner of a mortqaged Lot by vj-rtue of foreclosure of the Mortgraqe, or through any equivalent proceedings, such as but not limited to the taking of a deed or 36 assigrunent in ]ieu of foreclosure or acqui-ri-ng t.itle at a trustee's sale under a first deed of trust, or any third (3rd) party purchaser at a forecl-osure sale or trustee's sale, will not be Iiable for such Lotrs unpaid dues, charges or Assessments which may accrue prior to the time such Eirst Mortgagee or third (3rd) party purchaser comes into possession of such Lot or becomes record owner of the Lot, whichever occurs first, and shall acquire titl-e free and cf ear of any l-ien authorized by or arising out of t.he provisions of t.his Decl-aration which secures the payment of any dues, charges or Assessments accrued prior to the time such First Mortgagee or third (3rd) party purchaser either comes into possession of such Lot or becomes record Owner of the Lot. Any such unpaid dues, charges or Assessments against the Lot forecl-osed shall be deemed to be a Common Expense charged proratably against all of the Members. Nevertheless, in the event the owner or Member against whom the original Assessment was made in the purchaser or redemptioner, the l-ien shall- continue in effect and may be enforced by the Association, or by the Board, for the respective Lot's Assessment that was due prior to the final conclusion of any such foreclosure or equivalent proceedings. Further, dny such unpaid Assessment shal-l- continue to exist as the personal obligation of the default.ing Member and the defaulting owner of the respective Lot to the Association, and the Board may use reasonable efforts to collect the same from said Member and/or Owner even after he is no Iongier a Member of the Association or the Owner of the Lot. 13.3 No Personal Liability. A Eirst Mortgagee shal-l- not in any case or manner be personally Iiable for the payment of any Assessment or chargre, nor the observance or performance of any covenant, restriction, or rule and regulation of the Association, or any provision of the Articl-es or ByJ-aws, or any management agreement, except for those matters which are enforceable by injunctive or other equitable actions, not requiring the payment of money, except as specifically provided in thls Section 13. 13. 4 Enforcement After Foreclosure SaIe. An action to abate the breach ons, restrictions, and reservations may be brought against the purchasers who have acquired title through forecl-osure of a Mortgage and the subsequent foreclosure of trustee's sale (or through any equivalentproceedings), and the successors 1n lnterest to said purchasers, even though the breach existed prior to the time said purchaser acquired an interest in such Lot. 13.5 Exercise of Owner's Riqhts. During the pendency of any proceedings gage (including any period of redemption) or from the time a trustee under a flrst deed of trust has qiven notice of sale pursuant to power of sale conferred under a deed of trust and pursuant to the 1aw, the First Mortgaqee, or a receiver appointed in any such action, may but-need not exercise any or al-l- of the rights and privileges of the Owner in default 37 including, but. not limited to, the right to vote as a member of the Associatlon in the place and stead of the defaultinq Owner. 13.6 Subject to Decl-aration. At such time as the Eirst Mortgagee shal-l- come into possession of or become record Owner of aLot, the First Mortgragee shall be subject to aII of the terms and conditions of this Declaration including, but not limited to, the obligation to pay aII Assessments and charqes accruing thereafter,in the same manner as any other Owner. SECTION 14.REMEDIES 14.1 General Remedles. fn the event of any default by an owner,ltemu@otherPersonundertheprovisioniof this Declaration, the Articles, Bylaws, Association Rules or Design Guj-delines, the Association, or its successors or assignsr or its agents, or the Declarant, shall have each and all of the rights and remedies which may be provided for in this Declaration, theArticles, Bylaws, Association Rules or Desi-gn Guidelines, or which may be avail-able at law or equity, and may prosecute any action or other proceedj-ngs against such defaulting owner, Member, Occupant or other Persons for an j-njunction, whether affirmative or negative r or for enforcement or foreclosure of the l-ien hereinprovided and the appointment of a receiver for the Lot, or for damagesr or specific performance, or for judg'ment for payment of money and coll-ection thereof, or the right to take possession ofthe Lot and to rent the Lot and apply the rents recej-ved to payment of unpaid Assessments and interesL accrued thereof, and to seIl the same as hereinafter in this Section 15. l- provided r or for any combination of remedies or for any other relj-ef, all without notice and without regard to the value of the Lot or the solvency of such Owner or Member. The proceeds of any such rental or sale shal-l first be paid to discharge court costs, other litlgation costs,including without. l-imitation reasonabl-e attorneys I fees, and all other expenses of the proceeding and sa1e, and all such items sha1l be taxed agaj-nst the defaulting Owner or Member in a f inal-judgment. Any balance of proceeds after satisfaction of such charqes and any unpaid Assessments hereunder or any liens shall bepaid to the owner or Member. Upon the confirmation of the sa1e, the purchasers thereupon shall be entitl-ed to a deed to the Lot andto immediate possession of the Lot and may apply to the court for awrit of restitution for the purpose of acquiring such possession, and it shal-I be a condition of any such sale, and the judgement sha1I so provide, that the purchaser shal-I take the lnterest in theproperty sold subject to this Declaratj-on. The Homeowners Association shal-L al-so have the right to makerules provi-ding for penalties to be assessed to a Member forviolation of any provision herein, provided, however, that eachsaid rul-e shall state the purpose for the assessment, thedistribution procedure for special assessment proceeds, and theperson(s) responsible for enforcement. 38 1,4.2 Expenses of Enforcement.A11 expenses of theAssociation or the Declarant, or other Person granted rights of enforcement hereunder, in connection with any action or proceeding described or permitted by this Section 74, including court ' costs and reasonabl-e attorneys I fees and other fees and expenses, and aII damages, liquidated or otherwise, together with i-nterest thereon until paid at the Default Rate of Interest, shall be charged to and assessed against such defaulting owner or Member or other Person and sha1l be a Special Assessment aqrainst such Owner, Member or other Person and the Association shaIl have a l-ien as provided in Section 6 therefor. In the event of any such default by any Owner, Member, or other Person the Association and the Declarant, and the manager or managinq agent of the Association, if so authorized by the President, shal-l have the authority to correct such default and to do whatever may be necessary for such purpose, and aLl expensesin connection therewith sha1l be charqed to and assessed against such defaulting Owner, Member or other Person as a Special Assessment, which shall constitute a l-ien against the defaulting owner or Member's Lot as provided in Section 6. Any and aII such rights and remedies may be exercised at any time and from time to time, cumulatively or otherwise, by the Association or the Declarant. 14.3 Legal Action.fn addltion to any other remedies available under this Sectj-on L4, if any Owner or Member (either byhis conduct. or by the conduct of any occupant of his Lot or family member, quest, invitee or agent) shall vj-ol-ate any of theprovj-si-ons of this Declaration, or the Articles, Bylaws, Assocj-ation Rul-es or Design Guidellnes, as then in effect, then theAssociation, the Declarant, or any affected or aqgrieved Owner orMember, shall have the power to file an action against the defaul,ting Owner or Member for a judgrnent or injunction aqainst the owner or Member or such other Person requiring the defaulting owner, Member or other Person to comply'with the provisions ofthis Declaratj-on, or the Articles, Bylaws, Assocj-ation RuIes or Design Guidelines, and granting other appropriate relief, including money damages. 1-4.4 Effect on Mortgaqe. Anything to the contrary herein notwithstan@ranyofthecovenants,restfictions, reservations,, conditions and servitudes provided for in thisDeclaratJ.on, or any right of re-entry by reason thereof, shaIl not defeat or adversely affect the lien of any Mortgage upon any Lotbut, except as herein specifically provided, each and all of said covenants, restrictj-ons, reservations, conditions and servj-tudessha1l be binding upon and effective against any lessee or owner ofa Lot whose title thereto is acquired by foreclosure, trustee'ssa1e, sa1e, deed in lieu of foreclosure or otherwise. 14.5 Limitation on the Declarant's Liability. Notwith- standing a ressly agreed 39 that neither the Declarant (including without. l-imitation any assigrnee of the interest of the Declarant hereunder) nor anypartner in the Declarant partnership (or in any such assignee)shall have any persona1 liability to the Association, or any Owner, Member or other Person, arising under, in connection with, orresulting from (including without limitation resulting from actionor failure to act with respect to) this Decl-aration except, in the case of the Declarant (or its assignee) to the extent of itsj-nterest in the Property, and, in the case of a partner in theDeclarant (or in any such assiqnee), his interest in the Decl-arant(or such assignee), and, in the event of a judgrment against theDeclarant (or any partner or assignee thereof), no execution orother action shall be sought or brought thereon against any otherassets, nor be a Lien upon such other assets, of the judgrment debtor. SECTION 15 AMENDMENT 15.1 Amendment to Decl-aration.Amendments to this Declaration sha11 be made by an instrument in writing entitled "Amendment to Declaration" which sets forth the entire amendment. Except as otherwise specifically provided for j-n this Declaration, any proposed amendment must be approved by a majority of the board prior to its adoption by the Members. Amendments may be adopted at a meeting of the Members upon the approval thereof of two thirds(2/3) of al-l- of the Members or without any meeting if all- Members have been duly notified and if two thirds (2/3) of all of the Members consent in writing to such amendment. In al-l- events, the amendment when adopted shall bear the siqnature of the president of the Assocj-ation and shal-I be attested by the secretary, who shall state whether the amendment was properly adopted, and shal-l- be acknowledged by them as officers of the Association. Amendments once properly adopted shal-1 be effective upon recording of the Amendment to Decl-aration in the appropriate g:overnmental of f ices. 75.2 Effect of Amendment. It is specifically covenanted and agreedtrratanyffirrisDec1arationproper1yadoptedwi11 be completely effective to amend any and all of the covenants, condj-tions and restrlctions contained herein which may be affected and any or all clauses of this Declarati-on or the Pl-at, unless otherwise specifically provided in this Section being amended or the amendment itself. 15.3 Amendment of Plat. Except as otherwise provided herein, theP1atileamendedbyrevisedversionsorievisedportions thereof referred to and described as to effect in an amendment to this Declaration adopted as provided for herein. Copies of any such proposed amendment to the PIat shal-I be made available for the examination of every Member at the offices of the Association during reasonable times. Such amendment to the Plat shall be effective once properly adopted, upon recordation in the appropriate governmental office in conjunction with the Decl-aration 40 amendment. Declarant or assigns may amend any portion of the plat without member or Assocj-ation approval. l-5.4 Required Approval-s. Notwithstanding the provis j-ons ofthe foreqoing sections of this Section 15, if this Declaration or any applicable provision of 1aw requires the consent or agreement of all Members and/or Owners and/or all lienhol-ders and atI trustees and/or beneficiaries under trust deedsr or a specifiedpercentage thereof, for any action specified in this Declaration, then any instrument changing, modifying or rescindlng any provj-sion of this Decl-aration with respect to such actj-on sha11 be signed by all of the Members and/or al-l- Iienholders and trustees and/orbeneficiaries under trust deeds, or the specified percentage thereof, as required by this Declaration or by said 1aw. SECTION 16. GENERAL PROVIS]ONS 16.1 Notices. Notices provided for in this Declaration, or the eylaws or associatj-on Ru1es, shall be in writing and sha11 be addressed to the Association at the address specifled in the Bylaws. The Assocj-ation may designate a different address or addresses for notice by giving written notice of such change of address to all Owners and Members at such time. Al-l- notices to owners shal-l- be to their respective Lots or to the last address shown on the records of the Association and to other Members at thelast address shown on the records of the Association. Any Member may designate a different address or addresses for notices to him by giving written notj-ce of his change of address to theAssociation. Notices addressed as above shal-l- be deemed delivered when mailed by United States registered or certified mail- t or when delivered in person with written acknowledqrment of the receipt thereof. 76.2 Captions and Exhibits; Construction. Captions gj-ven tovarious Sections herej-n, and the Table of Contents for thisDeclaration, are for convenience only and are not intended to modify or affect the meaning of any of the substantive provisions hereof. The various exhibits referred to herein are J-ncorporated as though fuIIy set forth where such reference is made. Theprovisions of this Decl-aration shall- be 1iberal1y construed toeffectuate its purpose of creating a uniform plan for the development and operation of the Property as hereinabove set forth. 16.3 Severabil.ly. If any provisj-on of this Declaration, theArticl-es, Bylaws, Association Rules or Design Guj-deIines, or anysection, clause, sentence, phrase or word, or the appli-cation thereof in any circumstance, is held invalid, the validity of theremainder of this Declaration, the Articles, Bylaws, Assocj-ation Rules or Design Guidelj-nes, and of the application of any suchprovision, section sentence, clause, phrase or word in any other cj-rcumstances, sha11 not be affected thereby, and the remainder of this Declarati-on, the ArticIes, Bylaws, Associ-ation Rules or Design 4L Guidelines shal1 be construed as if such inval-id part were never included therein. 16.4 Mor@. Each Owner shal-I have the right, subjectto@ereof,tomakeseparateMortgaqesfor his respective Lot. No Member shall have the right or authority to make or create or cause to be made or creat.ed any MortgagTe r or other l-ien or security interestr orr or affecting the Property or any part thereof, except only to the extent of his Lot. 16.5Pow@.WhenevertheAssociationisgranted rights,pr@sinthisDecIaration,thePresident shall have the authority to act for the Association, unless such right and power is herein expressly reserved to the Board. Further, unless otherwise specifically restricted by the provisions of this Declarati-on, wherever the Association is empowered to take any action or do any act, including but not limited to action or acts in connection with the Common Areas or sale thereof, which may at any time be deemed to require the act of an Owner or Member, the owners and Members and each of them hereby consti-tute and appoint the Association as their attorney-in-factr ds may be appropriate, for the purposes of taking such action or doing such acts including but not l-imited to execut.ing, acknowledging and deliverlng any instruments or documents necessary, appropriate or helpful for such purposes.It is acknowledged that this power of attorney isj-rrevocable and coupled with an interest and by becoming a member of the Assocj-ation or by the acceptance of a deed for a Lot or by signing a contract for purchase of a Lot or by succeeding in anyother manner to the ownership of a Lot, or any interest therein, ora membershi-p j-n the Association, each Owner and Member shall- be deemed and construed to have ratified and expressly granted the above power of attorney. 16.6 Domestic Water. The domestic water supply sha1l be from a central water,system which shal-l- be operated by the Associati-on. Such water shall be for domestic in-house use only and theirrigatj-on of up to 14r500 square feet of grass, shrubs, treesr or other foliage on each lot as permitted by the Association. A11 water use shal-l be metered by water meters approved by theAssociation. Aqreements and/or additional RuIes and Regrulations concerning the use and operation of the water system may be executed, proposed, and adopted by the Association to aIlow for theefficient use and operation of such system. SECTION 17. RIGHTS AND OBLIGATIONS Each qrantee of Declarant or the Declarant, by the acceptance of a deed of conveyance, or each purchaser under any contract. for such deed of conveyance, or each purchaser under any agreement of sale, or each Person acquirinq a membership in the AssocJ-ation, andthe heirs, successors and assigns of the foregoing Persons, accepts the same subject to all restriction, conditions, covenants, 42 reservations, 1i-ens and charges, and the jurisdiction, rights and powers created or reserved by this Declaration, and aII riqhts, benefits and privileges of every character hereby granted, created, reserved or declared, and aIl imposi-tions and obligations hereby imposed shal-l be deemed and taken to be covenants running wi-th the Iand and equitable servitudes, and shall bind any Person having at any time any interest or estate 1n said 1and, and shall j-nure to the benefit of any such Person in like manner as though the provisions of this Declaration were recited and stipulated at Iength in each and every deed of conveyance, purchase contract or instrument, evidencing or creating such interest. IN thi s WITNESS day of WHEREOF the Declarant has set its hand and seal ' August | 1994. David Hicks Connie Hicks STATE OF COLORADO ) ) ss. COUNTY OF GARFIELD) Subscribed and sworn to before me this 1994. Witness my hand and official seal. My commission expires: Notary Public day of August, 43