BYLAWS OF THE COURT, A COfSDOMINIUM ARTICLE 1 G E N E W L PROVISIONS 1 . 1 Name and L o c a t i o n The p r o p e r t y l o c a t e d a t 2 3 0 - 2 5 6 Maryland Avenue, N . E . , 208-226 T h i r d S t r e e t , N . E . , 200-230 J u s t i c e C o u r t , and 221-225 1 / 2 C S t r e e t , N . E . , Washington, D . C . , has been s u b m i t t e d t o t h e p r o v i s i o n s o f t h e Condominium A c t o f 1976 ( D . C . Law 1 - 8 9 ) ( t h e " A c t " ) , by D e c l a r a t i o n r e c o r d e d s i m u l t a n e o u s l y h e r e w i t h . These Bylaws a r e e s t a b l i s h e d and r e c o r d e d a t t h e O f f i c e o f t h e R e c o r d e r o f Deeds o f t h e D i s t r i c t o f Columbia t h i s V & d a y o f A,:,, , 1 9 s (as I n s t r u m e n t Number ) . (The p u r p o s e o f t h e Bylaws i s t o p r o v i d e f o r t h e and s e l f - g o v e r n m e n t o f The C o u r t , A Condominium by a n a s s o c i a t i o n o f a l l o f t h e u n i t owners ( t h e " A s s o c i a t i o n " ) , a b o a r d o f d i r e c t o r s ( t h e " B ~ a r d) ',~ and t h e O f f i c e r s of t h e A s s o c i a t i o n . - 1.2 A p p l i c a b i l i t y o f Sylaws The p r o v i s i o n s o f t h e s e Bylaws a r e a p p l i c a b l e t o t h e Condominium and t o t h e u s e and occupancy t h e r e o f . A l l p r e s e n t and f u t u r e o w n e r s , m o r t g a g e e s , l e s s e e s and o c c u p a n t s o f U n i t s and t h e i r employees, and a n y o t h e r p e r s o n who may u s e t h e f a c i l i t i e s o f t h e Prope r t y i n any manner, a.re s u b j e c t t o t h e s e Bylaws and t o t h e Declaration. The a c c e p t a n c e o f a deed o f conveyance o r t h e e n t e r i n g i n t o o f a l e a s e o r t h e a c t o f occupancy o f a U n i t s h a l l c o n c l u s i v e l y e s t a b l i s h t h e a c c e p t a n c e and r a t i f i c a t i o n o f t h e s e Bylaws a s t h e y may b e amended from t i m e t o t i m e , by t h e p e r s o n s o a c q u i r i n g , l e a s i n g o r o c c u p y i n g a U n i t and s h a l l c o n s t i t u t e and e v i d e n c e an a g r e e m e n t by s u c h p e r s o n t o comply w i t h t h e same, a s w e l l a s w i t h t h e d e c i s i o n s and r e s o l u t i o n s o f t h e A s s o c i a t i o n and t h e 3oard. \ 1.3 I n c o r p o r a t i o n o f t h e Act and t h e D e c l a r a t i o n The p r o v i s i o n s o f t h e Act and t h e D e c l a r a t i o n , inc l u d i n g t h e d e f i n i t i o n s and t e r m s c o n t a i n e d t h e r e i n , a r e h e r e b y i n c o r p o r a t e d by r e f e r e n c e , and s h a l l p r e v a i l o v e r any c o n f l i c t i n g p r o v i s i o n s c o n t a i n e d i n t h e s e Bylaws. 1.4 O f f i c e Address The i n i t i a l o f f i c e o f t h e A s s o c i a t i o n s h a l l b e t h e o f f i c e o f the D e c l a r a n t s , and i t s a d d r e s s s h a l l b e : 220 S e v e n t h S t r e e t , S . E . Washington, D .C . 20003 1.4 O f f i c e .Address ( c o n t i n u e d ) The o f f i c e o f t h e A s s o c i a t i o n may b e l o c a t e d a t s u c h o t h e r p l a c e a s may b e d e s i g n a t e d from time t o t i m e by t h e Board o f D i r e c t o r s . ARTICLE 2 COMPOSITION A N D POWERS OF TIlE ASSOCIATION 2.1 Membership Every p e r s o n , group of p e r s o n s , c o r p o r a t i o n , t r u s t o r o t h e r l e g a l e n t i t y , o r any c o m b i n a t i o n t h e r e o f , which owns a U n i t w i t h i n The C o u r t , A Condominium s h a l l b e a member o f t h e A s s o c i a t i o n , p r o v i d e d , however, t h a t any s u c h p e r s o n , e t c . which h c l d s s u c h interest s o l e l y a s s e c u r i t y f o r t h e performance o f an o b l i , g a t i o n s h a l l n o t be a member. A l l o f t h e members o f t h e A s s o c i a t i o n , a c t i n g a s a group i n accordance w i t h t h e A c t , t h e D e c l a r a t i o n , and t h e s e Bylaws s h a l l c o n s t i t u t e t h e " U n i t Owners A s s o c i a t i o n 1 ' whlch s h a l l h a v e t h e r e s p o n s i b i l i t i e s set f o r t h below. 2.2 Powers o f t h e A s s o c i a t i o n The A s s o c i a t i o n , a c t i n g b y and t h r o u g h t h e B o a r d , s h a l l manage, o p e r a t e and m a i n t a i n t h e Condominium a n d , f o r t h e b e n e f i t o f t h e U n i t s and t h e Owners t h e r e o f , s h a l l e n f o r c e t h e p r o v i s i o n s h e r e o f and s h a l l h a v e t h e f o l l o w i n g e n u m e r a t e d powers: -- ----- -- t h e power t o govern i n a l l m a t t e r s r e l a t i n g t o t h e Condominium, t h e power t o s u e on b e h a l f o f a l l U n i t Owners, t h e power t o employ, d i s m i s s , and r e p l a c e a g e n t s and employees who e x e r c i s e and d i s c h a r g e t h e r e s p o n s i b i l i t i e s and ?ewers o f the Association, t h e power t o make o r c a u s e t o be made a d d i t i o n a l improvements o n and a s p a r t o f t h e common e l e m e n t s , t h e power t o a c q u i r e , h o l d , convey and encumber t i t l e t o r e a l p r o p e r t y , i n c l u d i n g b u t n o t l i m i t e d to t h e U n i t s , t h e r i g h t t o make c o n t r a c t s and i n c u r liabilities, 2.2 Powers o f t h e A s s o c i a t i o n ( C o n t i n u e d ) -- t h e r i g h t t o g r a n t o r withhold approval o f a c t i o n s b y one o r more o f t h e Owners o r o t h e r persons e n t i t l e d t o t h e occup a n c y o f any U n i t whlch would c h a n g e t h e e x t e r i o r a p p e a r z n c e o f any U n i t o r o f a n y o t h e r p o r t i o n o f t h e Condominiuin. E x c e p t a s t o t h o s e m a t t e r s which t h e A c t r e q u i r e s s p e c i f i c a l l y t o be performed by a c t i o n o f t h e Association, t h e foregoing pouers s h a l l be d e l e g a t e d by t h e A s s o c i a t i o n t o t h e Board o f D i r e c t o r s i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f ARTICLE 4 below. . . . . ARTICLE 3 MEETINGS OF T-FIE ASSOCIATION P l a c e o f Meetings Meetings o f t h e A s s o c i a t i o n s h a l l be h e l d a t t h e p r i n c i p a l o f f i c e of t h e Association o r a t such o t h e r s u i t a b l e p l a c e c o n v e n i e n t t o t h e Members a s may b e d e s i g n a t e d b y the Board. 3.2 Annual M e e t i n g s The f i r s t a n n u a l m e e t i n g o f t h e A s s o c i a t i o n s h a l l be h e l d a t t h e p r i n c i p a l o f f i c e of t h e Associat i o n o r a t s u c h o t h e r p l a c e a s may b e d e t e r m i n e d b y t h e B o a r d , on a d a t e t o b e d e t e r m i n e d b y t h e B o a r d , w h i c h d a t e s h a l l b e ( a ) w i t h i n two ( 2 ) y e a r s from t h e d a t e t h a t t h e f i r s t U n i t i s c o n v e y e d , o r ( b ) w i t h i n n i n e t y ( 9 0 ) d a y s a f t e r U n i t s t o which seventy-five percent (75%) of t h e undivided i n t e r e s t s i n t h e common e l e m e n t s a p p e r t a i n h a v e been conveyed, whichever d a t e s h a l l o c c u r f i r s t , o r ( c ) o n s u c h e a r l i e r d a t e a s may b e e s t a b l i s h e d by t h e Board o f D i r e c t o r s . E x c e p t a s may b e r e q u i r e d by t h e p r o v i s i o n s o f s e c t i o n 3 . 3 below, members o f t h e Board s h a l l n o t b e e l e c t e d a t t h c f i r s t annual meeting. Except a s s p e c i f i c a l l y p r o v i d e d i n s e c t i o n s 3 . 3 and 4 . 7 b e l o w , t h e D i r e c t o r s a p p o i n t e d by t h e D e c l a r a n t s , o r t h e i r s u c c e s s o r s a s a p p o i n t e d by t h e D e c l a r a n t s , s h a l l r e m a i n i n o f f i c e u n t i l t h e e a r l i e r t o o c c u r o f two ( 2 ) y e a r s from t h e d a t e o f r e c o r d a t i o n o f t h e D e c l a r a t i o n o r t h e c o n v e y a n c e o f U n i t s t o which t h r e e f o u r t h s ( 3 / 4 t h s ) of t h e undivided i n t e r e s t i n t h e common e l e m e n t s a p p e r t a i n . 3.2.2 A f t e r t h e i n i t a l annual meeting, annual meetings o f t h e A s s o c i a t i o n s h a l l b e h e l d on t h e t h i r d Tuesday i n September of each y e a r , u n l e s s s u c h d a t e 3.2.2 : 3.3 (continued) s h a l l b e a h o l i d a y , i n which c a s e t h e m e e t i n g s h a l l b e h e l d on t h e n e x t s u c c e e d i n g T u e s d a y t h a t i s n o t a h o l i d a y . A t a l l such subsequent annual meetings, members o f t h e Board o f D i r e c t o r s s h a l l b e e l e c t e d p u r s u a n t t o t h e s e Bylaws. S p e c i a l Meetings I t s h a l l be t h e d u t y o f t h e P r e s i d e n t of t h e A s s o c i a t i o n prcmptly t o c a l l a s p e c i a l meeting o f t h e Members a s may b e d i r e c t e d b y a r e s o l u t i o n o f t h e 3 o a r d o f D i r e c t o r s , o r upon a pet i t i o n s i g n e d and p r e s e n t e d t o , t h e . S e c r e t a r y b y . . .. Owners h a v i n g n o t l e s s t h a n t w e n t y - f i v e p e r c e n t o f t h e v o t e s i n t h e Association. In addition, t h e P r e s i d e n t s h a l l c a l l a s p e c i a l meeting under t h e following circumstances: ( a ) I f , p r i o r t o t h e e x p i r a t i o n o f two y e a r s from t h e d a t e o f r e c o r d a t i o n o f t h e D e c l a r a t i o n , u n i t s t o which t w e n t y - f i v e p e r c e n t o f t h e u n d i v i d e d i n t e r e s t s i n t h e common e l e m e n t s a p p e r t a i n have been conveyed, t h e Association s h a l l hold a s p e c i a l meeting a t which n o t l e s s t h a n t w e n t y - f i v e p e r c e n t o f t h e members o f t h e Board o f D i r e c t o r s s h a l l b e s e l e c t e d by U n i t Owners o t h e r t h a n t h e D e c l a r ant. ( b ) I f , p r i o r t o t h e e x p i r a t i o n o f two y e a r s from t h e d a t e t h e D e c l a r a t i o n i s r e c o r d e d , and s u b s e q u e n t t o an e l e c t i o n o f d i r e c t o r s a t a s p e c i a l meeting c a l l e d i n accordance with parag r a p h ( a ) a b o v e , u n i t s t o which f i f t y p e r c e n t o f t h e u n d i v i d e d i n t e r e s t s i n t h e common e l e m e n t s a p p e r t a i n have b e e n c o n v e y e d , t h e A s s o c i a t i o n s h a l l h o l d a s p e c i a l m e e t i n g a t which n o t l e s s t h a n t h i r t y - t h r e e and o n e - t h i r d p e r c e n t o f t h e members o f t h e Board o f D i r e c t o r s s h a l l b e s e l e c t e d by U n i t Owners o t h e r t h a n t h e D e c l a r a n t . ( c ) Upon t h e e x p i r a t i o n o f two y e a r s from t h e r e c o r d a t i o n of t h e D e c l a r a t i o n , o r i f p r i o r t o such t i m e u n i t s t o which t h r e e - f o u r t h s . o f t h e u n d i v i d e d i n t e r e s t s i n t h e common e l e m e n t s a p p e r t a i n h a v e been conveyed, t h e A s s o c i a t i o n s h a l l h o l d a s p e c i a l m e e t i n g a t which a l l o f t h e D i r e c t o r s s e l e c t e d b y t h e Declarant then remaining i n o f f i c e s h a l l res i g n , and a l l v a c a n c i e s s o c r e a t e d s h a l l b e f i l l e d b y v o t e o f t h e U n i t Owners, i n c l u d i n g t h e Decl a r a n t s , t o t h e e x t e n t t h e y t h e n own any u n i t o r units. 3.3 S p e c i a l Ivleetinqs ( c o n t i n u e d ) i f any, c a l l e d i n accorda n c e w i t h p a r a g r a p h s ( a ) and ( b ) a b o v e , a s u f f i c i e n t number o f d e c l a r a n t - a p p o i n t e d d i r e c t o r s s h a l l r e s i g n t o permit t h e s e l e c t i o n of d i r e c t o r s by U n i t Owners a s r e q u i r e d b y t h e p r o v i s i o n s o f those paragraphs. A t those s p e c i a l meetings, 3.4 N o t i c e o f Meetings I t s h a l l be t h e d u t y o f t h e S e c r e t a r y t o m a i l , by United S t a t e s mail with f i r s t - c l a s s postage p r e p a i d , a n o t i c e o f each annual meeting a t . l ' e a s t t w e n t y - o n e (.21') d a y s i n a d v a n c e , o f .s u c h ; . m e e t i n g and o f e a c h s p e c i a l m e e t i n g a t l e a s t s e v e n ( 7 ) days i n advance o f s u c h meeting, s t a t i n g t h e purpose t h e r e o f a s w e l l a s t h e time and p l a c e where i t i s t o b e h e l d , t o e a c h Owner o f record, a t t h e address of h i s r e s p e c t i v e Unit o r a t s u c h o t h e r a d d r e s s a s t h e Owner may h a v e d e s i g nated t o t h e Secretary i n w r i t i n g . This n o t i c e r e q u i r e m e n t may a l s o b e s a t i s f i e d b y t h e p e r s o n a l d e l i v e r y o f any s u c h n o t i c e t o t h e Owner when s u c h d e l i v e r y i s acknowledged i n w r i t i n g . N o t l c e s h a l l b e c o n s i d e r e d t o have b e e n p r o v i d e d upon e i t h e r m a i l i n g o r d e l i v e r y i n t h e manner d e s c r i b e d a b o v e . A t t e n d a n c e by an Owner a t a n y m e e t i n g o f t h e members s h a l l c o n s t i t u t e w a i v e r o f n o t i c e t o him o f t h e t i m e , p l a c e and p u r p o s e t h e r e o f . 3,5 puorum a t M e e t i n g s The p r e s e n c e , e i t h e r i n p e r s o n o r b y p r o x y , o f members r e p r e s e n t i n g a t l e a s t t h i r t y - t h r e e and o n e - t h i r d p e r c e n t (33-1/3%) o f t h e v o t e s i n t h e A s s o c i a t i o n s h a l l c o n s t i t u t e a quorum f o r t h e t r a n s a c t i o n o f b u s i n e s s a t a l l m e e t i n g s o f members. If t h e number o f Owners a t a m e e t i n g d r o p s below t h e quorum and t h e q u e s t i o n o f a l a c k o f a quorum i s r a i s e d , no b u s i n e s s may t h e r e a f t e r b e t r a n s a c t e d . 3.6 Adjournment o f M e e t i n g s I f a n y m e e t i n g o f members c a n n o t b e o r g a n i z e d bec a u s e a quorum h a s n o t a t t e n d e d , t h e members who a r e p r e s e n t , e i t h e r i n p e r s o n o r b y p r o x y , may, e x c e p t a s o t h e r w i s e provided by law, a d j o u r n t h e meeting t o a time n o t l e s s t h a n f o r t y - e i g h t ( 4 8 ) h o u r s and n o t more t h a n t w e n t y d a y s from t h e t i m e t h e o r i g i n a l m e e t i n g was c a l l e d . 3.7 Voting ~t any m e e t i n g o f t h e A s s o c i a t i o n , e a c h owner o f a one-bedroom u n i t s h a l l have o n e a n d o n e - t e n t h (1.1) v o t e s , e a c h owner o f a two-bedroom u n i t s h a l l h a v e two a n d t w o - t e n t h s ( 2 . 2 ) v o t e s a n d e a c h owner o f a p a r k i n g s p a c e u n i t s h a l l h a v e o n e - t e n t h v o t e (.1). Voting ( C o n t i n u e d ) ., . 3.8 When t h e r e c o r d ownership o f a u n i t i s h e l d by more t h a n one Owner, t h e v o t e o r v o t e s a s s i g n e d t o s u c h u n i t may o n l y b e c a s t ( i ) by o p e r a t i o n o f a v a l i d l y e x e c u t e d proxy o r p r o x i e s , ( i i ) by a g r e e d upon ccmmon v o t e o f a l l s u c h Owners i f p r e s e n t a t a m e e t i n g , o r ( i i i ) by an i n d i v i d u a l designated i n a l e t t e r t o ' t h e S e c r e t a r y s i g n e d by a l l s u c h Owners a s h a v i n g t h e a u t h o r i t y t o s o v o t e o r a s s i g n by p r o x y . Such l e t t e r s h a l l remain v a l i d u n t i l revoked by a s u b s e q u e n t l e t t e r s i g n e d by a l l t h e Owners o f r e c o r d . E x c e p t where a g r e a t e r number i s r e q u i r e d by t h e A c t , .t h e D e c l a r a t i o n o r by t h e s e Bylaws, Owners h o l d i n g a"ma'jority of t h e 'votes i n ' t h e Association p r e s e n t , i n p e r s o n o r by proxy a t t h e b e g i n n i n g o f a m e e t i n g a t which a quorum i s p r e s e n t , s h a l l b e r e q u i r e d t o t a k e any a c t i o n r e q u i r e d o r p e r m i t t e d a t any m e e t i n g I f t h e D e c l a r a n t s own o r h o l d of t h e Association. t i t l e t o one o r more U n i t s , t h e y s h a l l have t h e r i g h t a t any m e e t i n g o f t h e A s s o c i a t i o n t o c a s t t h e v o t e ( s ) t o which s u c h U n i t ( s ) i s / a r e e n t i t l e d . The S e c r e t a r y o r , i n h i s a b s e n c e o r i n a b i l i t y t o a c t , such o t h e r person designated f o r t h i s p u r p o s e by t h e P r e s i d e n t , s h a l l c o u n t a l l v o t e s c a s t on any m a t t e r v o t e d upon a t a m e e t i n g o f t h e Association. Proxies Any v o t e o r v o t e s a t a m e e t i n g o f t h e A s s o c i a t i o n may be c a s t p u r s u a n t t o a proxy e x e c u t e d by o r on b e h a l f o f a l l t h e Owners o f t h e U n i t t o which t h e v o t e a p p e r t a i n s . To be v a l i d , a p r o x y must be i n w r i t i n g and must b e f i l e d w i t h t h e S e c r e t a r y and may b e i n t h e form o f a l e t t e r o r any o t h e r form approved by t h e Board o f D i r e c t o r s . A proxy s h a l l b e v o i d u n l e s s i t i s d a t e d o r i f it p u r p o r t s t o b e r e v o c b l e without n o t i c e t o t h e person presiding o v e r t h e m e e t i n g a t which t h e v o t e i s t o b e c a s t , o r i f it is n o t f i l e d with t h e Secretary before t h e a p p o i n t e d t i m e f o r t h e m e e t i n g f o r which t h e p r o x y h a s been g i v e n . U n l e s s s p e c i f i c a l l y i n d i c a t e d i n t h e proxy, a proxy s h a l l terminate automatically upon t h e a d j o u r n m e n t o f t h e m e e t i n g h e l d on o r a f t e r t h e d a t e o f t h a t p r o x y , and no proxy s h a l l b e v a l i d f o r a m e e t i n g h e l d on a d a t e l a t e r t h a n e l e v e n (11) months a f t e r t h e d a t e o f t h e p r o x y . 3.9 Order o f B u s i n e s s The o r d e r o f b u s i n e s s a t a l l a n n u a l meetings o f t h e Association s h a l l be a s follows: (a) (b) R o l l c a l l and c e r t i f i c a t i o n o f p r o x i e s . P r o o f o f n o t i c e o f m e e t i n g o r waiver o f notice. Order o f Business ( C o n t i n u e d ) (c) (d) (e) (f) (g) (h) (i) . . I . : .. . , . 3.10 > , Reading o f minutes o f p r e c e d i n g meeting. Reports o f o f f i c e r s , i f any. Reports of committees, i f any. Election of inspectors of e l e c t i o n . E l e c t i o n of d i r e c t o r s . Unfinished business. New b u s i n e s s . I n t h e case of s p e c i a l meetings, items ( a ) through ( d ) s h a l l b e a p p l i c a b l e and t h e r e a f t e r t h e agenda s h a l l c o n s i s t of t h e items s p e c i f i e d i n t h e n o t i c e of t h e meeting. .. . . ..: :. . . . .. . . ,. . .' .. .. . ' . . . .,--.. Conduct o f M e e t i n g ' The P r e s i d e n t s h a l l p r e s i d e o v e r a l l m e e t i n g s o f t h e A s s o c i a t i o n and t h e S e c r e t a r y s h a l l keep t h e m i n u t e s o f a l l m e e t i n g s and r e c o r d t h e same a l o n g w i t h a l l r e s o l u t i o n s adopted t h e r e a t i n a minute book. R o b e r t s R u l e s o f O r d e r o r any o t h e r r u l e s of p r o c e d u r e a d o p t e d by m a j o r i t y v o t e a t t h e o u t s e t o f any m e e t i n g , s h a l l g o v e r n t h e c o n d u c t o f m e e t i n g s o f t h e A s s o c i a t l o n when t h e y a r e n o t i n c o n f l i c t with t h e Act, t h e D e c l a r a t i o n , o r t h e s e Bylaws. ARTICLE 4 DIRECTORS 4.1 Number and Q u a l i f i c a t i o n The a f f a i r s o f t h e Condominium s h a l l b e governed by an e x c e c u t i v e o r g a n known a s t h e Board o f D i r e c t o r s composed o f n o t l e s s t h a n t h r e e ( 3 ) and n o t more t h a n f i v e ( 5 ) n a t u r a l p e r s o n s who, e x c e p t a s p r o v i d e d i n s e c t i o n 4 . 2 below, s h a l l b e members o f t h e Association. 4.2 I n i t i a l Directors The i n i t i a l D i r e c t o r s ( a n d t h e i r s u c c e s s o r s o r replacements appointed i n accordance with s e c t i o n s 4 . 6 and 4 . 7 ) s h a l l b e s e l e c t e d by t h e D e c l a r a n t s and n e e d n o t b e members o f t h e A s s o c i a t i o n . The names o f t h e D i r e c t o r s who s h a l l a c t a s s u c h from t h e d a t e upon which t h e D e c l a r a t i o n i s r e c o r d e d among t h e Land Records f o r t h e D i s t r i c t o f Columbia, u n t i l t h e f i r s t a n n u a l m e e t i n g o f t h e members o r u n t i l such time a s t h e i r s u c c e s s o r s a r e d u l y chosen and q u a l i f i e d , a r e a s f o l l o w s : 4.2 1 n it i a l D i r e c t o r s ( C o n t i n u e d ) B a r r e t t M . Linde Bernard S . ~ e w i r z S a r a h M . Gewirz Powers and D u t i e s -. . .. j . . . .. The S o a r d o f D i r e c t o r s s h a l l have a l l t h e powers and d u t i e s n e c e s s a r y f o r t h e a d m i n i s t r a t i o n o f t h e a f f a i r s o f t h e Condominium and may do a l l s u c h a c t s . a n d . . t h i n g s a s . a r e . , n o t by t h e Act or by t h e s e . . B y laws d i r e c t e d t o . b e e x e r c i s e d and done by t h e Assoc i a t i o n . The powers and d u t i e s o f t h e Board o f D i r e c t o r s s h a l l i n c l u d e , bur n o t be l i m i t e d t o , the following: ( a ) To p r o v i d e f o r t h e c a r e , upkeep and r e p a i r o f t h e Condominiuin and i t s g e n e r a l and l i m i t e d common e l e m e n t s and s e r v i c e s i n a manner c o n s i s t e n t w i t h t h e p r o v i s i o n s o f t h e s e Bylaws and t h e D e c l a r a t i o n . ( b ) To p r e p a r e a n a n n u a l b u d g e t and t o e s t a b l i s h and p r o v i d e f o r t h e c o l l e c t i o n o f a s s e s s ments from t h e members and f o r t h e a s s e s s m e n t a n d / o r e n f o r c e m e n t o f l i e n s t h e r e f o r i n a manner c o n s i s t e n t w i t h t h e p r o v i s i o n s o f t h e s e Bylaws and t h e D e c l a r a t i o n . ( c ) To p r o v i d e f o r t h e d e s i g n a t i o n , h i r i n g a n d / o r d i s m i s s a l o f any p e r s o n n e l n e c e s s a r y f o r t h e good working o r d e r o f t h e p r o j e c t and f o r t h e p r o p e r c a r e o f t h e g e n e r a l o r l i m i t e d common e l e ments and t o p r o v i d e s e r v i c e s f o r t h e Condominium i n a manner c o n s i s t e n t w i t h t h e p r o v i s i o n s o f t h e s e Bylaws and t h e D e c l a r a t i o n . ( d ) To p r o m u l g a t e and e n f o r c e s u c h r u l e s and r e g u l a t i o n s and s u c h r e s t r i c t i o n s on o r r e q u i r e ments a s may b e deemed p r o p e r r e s p e c t i n g t h e u s e , occupancy and m a i n t e n a n c e o f t h e p r o j e c t and t h e u s e o f t h e g e n e r a l and l i m i t e d common e l e m e n t s a s a r e designated t o prevent unreasonable i n t e r f e r e n c e w i t h t h e u s e and occupancy o f t h e p r o j e c t and o f t h e g e n e r a l and l i m i t e d common e l e m e n t s by t h e members, a l l o f which s h a l l b e c o n s i s t e n t w i t h t h e p r o v i s i o n s o f t h e s e Bylaws and t h e D e c l a r a t i o n . ( e ) To open and m a i n t a i n bank a c c o u n t s on b e h a l f o f t h e . A s s o c i a t i o n , and t o c o l l e c t a s s e s s m e n t s a g a i n s t t h e Owners and d e p o s i t and withdraw s u c h f u n d s from s u c h a c c o u n t s a n d t o a p p l y such f u n d s and any p r o c e e d s t o the a d m i n i s t r a t i o n o f the Condominium. Powers and D u t i e s ( C o n t i n u e d ) ( f ) To e n f o r c e t h e p r o v i s i o n s o f t h e Decl a r a t i o n , t h e s e Bylaws and a n y r u l e s and r e g u l a t i o n s f o r t h e Condominium, i n c l u d i n g b y i n s t i t u t i n g l e g a l a c t i o n i n b e h a l f of t h e Association o r t h e Owners. ( g ) To do s u c h o t h e r t h i n g s and a c t s n o t i n c o n s i s t e n t w i t h t h e A c t , t h e D e c l a r a t i o n and t h e s e Bylaws which i t may b e a u t h o r i z e d t o do by r e s o l u t i o n of the Association. Manaqement Agent . '.. .. - . . . . . . . .. . ( . . . . The Board o f D i r e c t o r s may employ f o r t h e Condominium a management a g e n t ( t h e "Management A g e n t " ) a t a r a t e o f c o m p e n s a t i o n e s t a b l i s h e d by t h e B o a r d o f D i r e c t o r s , t o p e r f o r m s u c h d u t i e s and s e r v i c e s a s t h e Board o f D i r e c t o r s s h a l l a u t h o r i z e i n writing, including, but not necessarily limited t o , t h e d u t i e s s e t o u t i n s e c t i o n 4 . 3 a b o v e . The a p p r o v a l of t h e h o l d e r o r h o l d e r s o f mortgages c o n s t i t u t i n g f i r s t l i e n s on f i f t y - o n e p e r c e n t ( 5 1 % ) o f t h e condominium u n i t s encumbered by s u c h f i r s t l i e n m o r t g a g e s s h a l l be r e q u i r e d befo;e t h e Board d i s p e n s e s w i t h t h e s e r v i c e s o f any Management A g e n t a n d / o r r e t a i n s any new Management A g e n t . E l e c t i o n and T e r n o f O f f i c e The t e r m o f any D i r e c t o r named i n t h e D e c l a r a t i o n s h a l l e x p i r e when h i s s u c c e s s o r h a s been e l e c t e d p u r s u a n t t o t h e s e ' Bylaws. The t e r m o f o f f i c e o f a D i r e c t o r e l e c t e d a t an annual meeting o r a s p e c i a l meeting c a l l e d pursuant t o s e c t i o n 3 . 3 s h a l l b e one ( 1 ) y e a r , p r o v i d e d t h a t a D i r e c t o r s h a l l h o l d o f f i c e u n t i l h i s s u c c e s s o r has been elected. Vacancies V z c a n c i e s i n t h e Board o f D i r e c t o r s c a u s e d b y a n y r e a s o n q t h e r t h a n t h e removal o f a D i r e c t o r b y a v o t e o f t h e membership s h a l l b e f i l l e d by v o t e o f t h e m a j o r i t y o f t h e r e m a i n i n g D i r e c t o r s , even t h o u g h t h e y may c o n s t i t u t e l e s s t h a n a quorum; and each person so e l e c t e d s h a l l be a Director u n t i l a s u c c e s s o r i s e l e c t e d b y t h e members a t t h e n e x t annual meeting. This provision s h a l l not apply t o a v a c a n c y i n t h e p o s i t i o n o f t h e D i r e c t o r app o i n t e d by D e c l a r a n t s , which c a n o n l y b e f i l l e d b y t h e Declarant s u b j e c t t o t h e provisions of s e c t i o n 3.3. Removal o f D i r e c t o r s A t any r e g u l a r o r s p e c i a l meeting d u l y c a l l e d , any e l e c t e d D i r e c t o r may be removed w i t h o r w i t h o u t Removal o f D i r e c t o r s ( C o n t i n u e d ) c a u s e by t h e a f f i r m a t i v e m a j o r i t y v o t e ( s u c h m a j o r i t y t o b e d e t e r m i n e d f o r t h i s p u r p o s e on t h e b a s i s o f t h e t o t a l number o f v o t e s a p p e r t a i n i n g t o t h e e n t i r e membership of r e c o r d ) , provided t h a t a successor'is e l e c t e d t o f i l l t h e vacancy t h u s c r e a t e d , and p r o v i d e d t h a t , s u b j e c t t o s e c t i o n 3 . 3 , D e c l a r a n t s s h a l l have t h e r i g h t t o a p p o i n t a s u c c e s s o r t o any D i r e c t o r o r i g i n a l l y a p p o i n t e d by D e c l a r a n t s and removed i n a c cordance herewith. Compensation No compensation s h a l l ' b e ' p a i d t o D i r e c t o r s f o r t h e i r s e r v i c e s a s D i r e c t o r s . No r e m u n e r a t i o n s h a l l b e p a i d t o any D i r e c t o r who i s a l s o a member o f t h e Condominium f o r s e r v i c e s p e r f o r m e d by him f o r t h e Condominium i n any o t h e r c a p a c i t y u n l e s s a r e s o l u t i o n a u t h o r i z i n g s u c h r e m u n e r a t i o n s h a l l have been unanimously adopted by t h e Board o f D i r e c t o r s b e f o r e t h e services a r e undertaken. O r g a n i z a t i o n a l Meeting The f i r s t meeting o f a newly e l e c t e d Board o f D i r e c t o r s s h a l l be h e l d w i t h i n t e n ( 1 0 ) days o f e l e c t i o n a t s u c h p l a c e a s s h a l l b e f i x e d by t h e D i r e c t o r s a t t h e m e e t i n g a t which s u c h D i r e c t o r s were e l e c t e d , and no n o t i c e s h a l l be n e c e s s a r y t o t h e newly e l e c t e d D i r e c t o r s i n o r d e r l e g a l l y t o c o n s t i t u t e such meeting, provided a m a j o r i t y of t h e whole Board o f D i r e c t o r s s h a l l b e p r e s e n t . R e g u l a r Meetings R e g u l a r m e e t i n g s o f t h e Board o f D i r e c t o r s may be h e l d a t s u c h t i m e and p l a c e a s s h a l l be d e t e r m i n e d , from t i m e t o t i m e , by a m a j o r i t y o f t h e D i r e c t o r s , provided a t l e a s t t h r e e ( 3 ) such meetings i n addit i o n t o t h e organizational meeting a r e held during each f i s c a l y e a r . Notice of r e g u l a r meetings o f t h e Board o f D i r e c t o r s s h a l l b e g i v e n t o e a c h D i r e c t o r , p e r s ~ n a l l l o r by m a i l , t e l e p h o n e o r t e l e g r a p h , a t l e a s t f i ~ l e( 5 ) b u s i n e s s days p r i o r t o t h e day named f o r s u c h meeting. S p e c i a l Meetinqs S p e c i a l m e e t i n g s of t h e Board o f D i r e c t o r s may be c a l l e d by t h e P r e s i d e n t o r by any two ( 2 ) D i r e c t o r s on t h r e e ( 3 ) d a y s ' n o t i c e t o e a c h D i r e c t o r , g i v e n p e r s o n a l l y o r by ma. i l , t e l e p h o n e o r t e l e g r a p h , whic n o t i c e s h a l l s t a t e t h e time, p l a c e ( a s hereinabove p r o v i d e d ) and purpo s e o f t h e m e e t i n g . ' Waiver o f N o t i c e B e f o r e o r a t any m e e t i n g o f t h e Board o f D i r e c t o r s , any D i r e c t o r may, i n w r i t i n g , waive n o t i c e o f s u c h 4.12 Waiver o f N o t i c e ( C o n t i n u e d ) m e e t i n g and s u c h w a i v e r s h a l l b e deemed e q u i v a l e n t t o t h e g i v i n g o f s u c h n o t i c e . A t t e n d a n c e by a D i r e c t o r a t a n y meeting o f t h e Board o f D i r e c t o r s s h a l l b e a w a i v e r of n o t i c e by him of t h e time and place thereof. If a l l the Directors a r e present a t any m e e t i n g of t h e Board o f D i r e c t o r s , no n o t i c e s h a l l b e r e q u i r e d and any b u s i n e s s may b e t r a n s a c t e d a t such meeting. 4.13 Quorum A t a l l m e e t i n g s o f t h e Board o f D i r e c t o r s a major- , . jty...o f . t h e D i r e c t o r s s h a l l c o n s . t i t u t e a.. quorum f o r .. t h e t r a n s a c t i o n of b u s i n e s s , and t h e a c t s o f t h e m a j o r i t y of t h e D i r e c t o r s p r e s e n t a t a meeting a t which a quorum i s p r e s e n t s h a l l b e t h e a c t s o f t h e Board o f D i r e c t o r s . I f a t any m e e t i n g o f t h e B o a r d . o f D i r e c t o r s t h e r e b e l e s s t h a n a quorum p r e s e n t , t h e m a j o r i t y o f t h o s e p r e s e n t may a d j o u r n t h e m e e t i n g t o a l a t e r t i m e . A t any s u c h a d j o u r n e d m e e t i n g , any b u s i n e s s which might have b e e n t r a n s a c t e d a t t h e m e e t i n g a s o r i g i n a l l y c a l l e d may be transacted without f u r t h e r n o t i c e . In the event any a p p o i n t e d D i r e c t o r s h a l l . b e u n a b l e t o a t t e n d any m e e t i n g of t h e Board o f D i r e c t o r s , t h e a p p o i n t e d D i r e c t o r s h a l l have t h e r i g h t t o c o n s t i t u t e any p e r s o n a s h i s d e p u t y f o r t h a t m e e t i n g . Such d e p u t y s h a l l have t h e power t o e x e r c i s e a l l t h e r i g h t s t o v o t e and o t h e r w i s e o f t h e a p p o i n t e d D i r e c t o r and s h a l l q u a l i f y f o r determining t h e existence of a quorum. No e l e c t e d D i r e c t o r may a p p o i n t a d e p u t y . 4.14 Conduct o f Meetings The P r e s i d e n t s h a l l p r e s i d e o v e r a l l m e e t i n g s o f t h e Board o f D i r e c t o r s and t h e S e c r e t a r y s h a l l keep a Minute Book o f t h e m e e t i n g s o f t h e Board, r e c o r d i n g t h e r e i n a l l r e s o l u t i o n s adopted and a l l t r a n s a c t i o n s and p r o c e e d i n g s o c c u r r i n g t h e r e a t . R o b e r t s Rules o f Order o r any o t h e r r u l e s o f p r o c e d u r e a d o p t e d by a m a j o r i t y o f t h e D i r e c t o r s a t t h e o u t s e t o f a r n ? e t i n ~s h a l l g o v e r n t h e c o n d u c t o f a m e e t i n g whex.. t h e y a r e n o t i n c o n f l i c t w i t h t h e A c t , t h e D e c l a r a t i o n o r t h e s e Bylaws. A c t i o n Without Meeting Any a c t i o n by t h e Board o f D i r e c t o r s r e q u i r e d o r p e r m i t t e d t o be t a k e n a t any m e e t i n g may b e t a k e n w i t h o u t a m e e t i n g i f all o f t h e members o f t h e Board o f D i r e c t o r s s h a l l i n d i v i d u a l l y o r c o l l e c t i v e l y consent i n w r i t i n g t o such a c t i o n . Such w r i t t e n consent o r consents s h a l l be f i l e d with t h e m i n u t e s of t h e p r o c e e d i n g s o f t h e Board o f Directors. . ARTICLE 5 OFF1 CEXS 5.1 Designation The p r i n c i p a l o f f i c e r s o f t h e Condominium s h a l l b e a P r e s i d e n t , a Vice P r e s i d e n t , a S e c r e t a r y and a T r e a s u r e r , a l l o f whom s h a l l be e l e c t e d by t h e Board o f , D i r e c t o r s . The D i r e c t o r s may a p p o i n t an a s s i s t a n t s e c r e t a r y and an a s s i s t a n t t r e a s u r e r and such o t h e r o f f i c e r s a s i n t h e i r judgment may be necessary. The o f f i c e s o f S e c r e t a r y and T r e a s u r e r p e r s. o, n. .. may be f i l l e d by t h e . same . . . 5.2 .- , . . .. ,. . .: ..... (: , ~ l e c t i d no f o f f i c e r ' s The o f f i c e r s o f t h e Condominium s h a l l be e l e c t e d a n n u a l l y by t h e Board o f D i r e c t o r s a t t h e o r g a n i z a t i o n a l m e e t i n g o f e a c h new Board, and s h a l l h o l d o f f i c e a t t h e p l e a s u r e o f t h e Board o f D i r e c t o r s . Any vacancy i n an o f f i c e s h a l l b e f i l l e d by t h e Board o f D i r e c t o r s a t a r e g u l a r m e e t i n g o r s p e c i a l meeting c a l l e d f o r s u c h p u r p o s e . 5.3 Removal o f o f f i c e r s Upon t h e a f f i r m a t i v e v o t e o f a m a j o r i t y of t h e members o f t h e Board o f D i r e c t o r s , any o f f i c e r may b e removed, e i t h e r w i t h o r w i t h o u t c a u s e , and h i s o r h e r s u c c e s s o r may b e e l e c t e d a t any r e g u l a r meeting o f t h e Board of D i r e c t o r s , o r a t any s p e c i a l m e e t i n g o f t h e Board o f D i r e c t o r s c a l l e d f o r such purpose. 5.4 President The P r e s i d e n t s h a l l b e t h e c h i e f e x e c u t i v e o f t h e Condominium and must be a member of t h e Board o f Directors. The P r e s i d e n t s h a l l p r e s i d e a t a l l m e e t i n g s o f t h e U n i t Owners' A s s o c i a t i o n and o f t h e Board o f D i r e c t o r s . The P r e s i d e n t s h a l l have a l l o f t h e g e n e r a l powers 2nd d u t i e s which a r e i n c i d e n t t o t h e o f f i c e o f ;>r.esid+nt o f a s t o c k c o r p o r a t i o n o r g a n i z e d u n d e r t h e D i s t r i c t o f Columbia B u s i n e s s C o r p o r a t i o n A c t , i n c l u d i n g , b u t n o t l i m i t e d t o , t h e power t o a p p o i n t committees from among t h e Owners from t i m e t o t i m e a s t h e P r e s i d e n t i n h i s o r h e r s o l e d i s c r e t i o n may d e c i d e i s a p p r o p r i a t e t o a s s i s t i n t h e c o n d u c t of t h e a f f a i r s o f t h e Condominium. 5.5 Vice P r e s i d e n t The Vice P r e s i d e n t s h a l l t a k e t h e p l a c e of t h e P r e s i d e n t and p e r f o r m t h e d u t i e s o f t h e P r e s i d e n t ' Vice P r e s i d e n t (Continued) 5.5 whenever t h e P r e s i d e n t s h a l l be a b s e n t o r u n a b l e t o act. I f n e l t h e r t h e P r e s i d e n t nor t h e Vice P r e s i d e n t 1s a b l e t o a c t , t h e B o a r d o f D i r e c t o r s s h a l l a p p o i n t some o t h e r member o f t h e B o a r d o f D i r e c t o r s t o a c t i n t h e p l a c e o f t h e president,^ o n a n i n t e r i m b a s i s . The V i c e P r e s i d e n t s h a l l a l s o p e r f o r m s u c h o t h e r d u t i e s a s s h a l l from t i m e t o t i m e b e Imposed b y t h e B o a r d o f D i r e c t o r s o r by t h e P r e s i d e n t . : . Secretary ,5.6 . .. .. .. . .-- . .. . . ... . . he s e c r e t a r y s h a l l k e e p t h e m i n u t e s o f a l l m e e t i n g s " of t h e U n i t Owners' A s s o c i a t i o n and o f t h e Board o f D i r e c t o r s ; s h a l l have charge o f such books and p a p e r s a s t h e Board o f D i r e c t o r s may d i r e c t ; and s h a l l , i n g e n e r a l , perform a l l t h e d u t i e s incident t o the office of secretary of a stock c o r p o r a t i o n organized under t h e District o f Columbia B u s i n e s s C o r p o r a t i o n A c t . . ..* . _ . . . ' 5.7 Treasurer The T r e a s u r e r s h a l l h a v e t h e r e s p o n s i b i l i t y f o r Condominium f u n d s a n d s e c u r i t i e s a n d s h a l l b e r e s p o n s i b l e f o r keeping f u l l and a c c u r a t e f i n a n c i a l r e c o r d s and books o f a c c o u n t showing a l l r e c e i p t s and disbursements, and f o r t h e preparat i o n of a l l required financial data; s h a l l be r e s p o n s i b l e f o r t h e d e p o s i t o f a l l monies and o t h e r v a l u a b l e e f f e c t s i n t h e name o f t h e B o a r d o f D i r e c t o r s , o r t h e Managing A g e n t , i n s u c h d e p o s i t o r i e s a s may from t i m e t o t i m e b e d e s i g n a t e d by t h e Board o f D i r e c t o r s , and s h a l l , i n g e n e r a l , perform a l l t h e d u t i e s i n c i d e n t t o t h e o f f i c e o f t r e a s u r e r o f a s t o c k c o r p o r a t i o n organi z e d u n d e r t h e D i s t r i c t o f Columbia B u s i n e s s Corporation A c t . .5.8 Agreements, C o n t r a c t s , Deeds, Checks, E t c . A l l agreements, c o n t r a c t s , deeds, l e a s e s , checks a n d o t h e r i n s t r u m e n t s o f t h e C o c ~ o i ~ ~ i n i ruemq u i r i n g o r e f f e c t i n g e x p e n d i t u r e s or o b l i g a t i o n s o f $ 1 , 0 0 0 o r m o r e , s h a l l b e e x e c u t e d b y a n y two o f f i c e r s o f t h e Condominium o r b y s u c h o t h e r p e r s o n a s may b e d e s i g n a t e d b y t h e B o a r d o f D i rectors. 5.9 ~ o m ~ e ' n s a t i oonf O f f i c e r s No o f f i c e r s h a l l r e c e i v e a n y c o m p e n s a t i o n f r o m t h e Condominium f o r a c t i n g a s s u c h . ARTICLE 6 ADMINISTRATION OF THE CONDOMINIUM 6.1 Financial Matters 6.1.1 Fiscal Year The fiscal year of the Condominium shall consist of the twelve month period commencing on January 1 of each year and terminating on December 31 of that year . 6.1.2 The Budqet On or before December 1 of each year, the Board of Directors shall adopt a budget for the Condominium containing an estimate of the total amount which it considers necessary to pay the cost of maintenance, management, operation, repair and replacement of the common elements and those parts of the Units which it is the responsibility of the Unit Owners' Association to maintain, repair and replace, and the cost of wages, materials, insurance premiums, services, supplies and other expenses that may be declared to be common expenses by the Condominium Act, these Bylaws or a resolution of the Unit Owners' Association or the Board of Directors, and which will be required during the ensuing fiscal year for the administration, operation, maintenance and repair of the Condominium and the rendering to the Owners of all related services. Such budget shall also include such reasonable amounts as the Board of Directors considers necessary to provide working capital for the Condominium, a general operating reserve, and reserves for contingencies and replacements. The Board of Directors shall send to each Owner a copy of the budget, in a reasonably itemized form which sets forth the amount of the common expenses payable by each Owner, on or before December 7 preceding the fiscal year to which the budget applies. The budget shall constitute the basis for determining each Owner's contribution for the common expenses of the Condominium. 6.1.3 Assessment and Payment of Common Expenses The total amount of the estimated funds required for the operation of the Condominium set forth in the budget for the fiscal year adopted by the Board of Directors shall be assessed against each Unit Owner in proportion to his allocated, undivided interest in the common elements and shall constitute a lien against each Owner's Condominium Unit from the date the first installment payment thereon is due. If the Board of Directors deems 6.1.3 A s s e s s m e n t and Payment o f Common E x p e n s e s ( C o n t i n u e d ) i t a d v i s a b l e , t h e a s s e s s m e n t made a g a i n s t e a c h U n i t Owner f o r e a c h f i s c a l y e a r s h a l l s e t f o r t h s e p a r a t e l y s u c h U n i t O w n e r ' s s h a r e o f t h e amount o f t h e t o t a l a s s e s s m e n t a l l o c a t e d t o n o r m a l and r e c u r r i n g e x p e n s e s o f a d m i n i s t r a t i o n , management, o p e r a t i o n and r e p a i r , and t h e amount o f t h e t o t i 1 assessment a l l o c a t e d t o each category of reserves i n c l u d e d i n t h e b u d g e t . On o r b e f o r e t h e f i r s t d a y o f e a c h i i s c a l y e a r , and t h e f i r s t d a y o f e a c h o f t h e s u c c e e d i n g e l e v e n (11) months i n s u c h f i s c a l y e a r , , e a c h Owner s h a l l b e o b l i g a t e d t o p a y t o t h e Bpard. o f , ,D l r , e c t o , r s ; o: r , t h e . .Ma,n,zgln,g.Agent ( a s d e t e r - , . mined b y t h e Board ' o f D i r e c t o r s ) , o n e - t w e l f t h ( 1 / 1 2 t h ) of t h e a s s e s s m e n t f o r s u c h f i s c a l y e a r made p u r s u a n t t o t h e f o r e g o i n g p r o v i s i o n s ; p r o v i d e d , however, i f t h e Board o f D i r e c t o r s s o d e t e r m i n e s , a s s e s s m e n t s may b e c o l l e c t e d q u a r t e r l y i n which e v e n t e a c h Owner s h a l l b e o b l i g a t e d t o pay t o t h e Board o f D i r e c t o r s o r t h e Managing Agent ( a s d e t e r m i n e d b y t h e B o a r d o f Directors) one-fourth ( 1 / 4 t h ) .of the assessment f o r s u c h f i s c a l y e a r on t h e f i r s t d a y o f e a c h f i s c a l y e a r , and o n e - f o u r t h ( 1 / 4 ) o n t h e f i r s t d a y o f t h e f o u r t h , s e v e n t h and t e n t h months o f such f i s c a l y e a r . Within s i x t y ( 6 0 ) days a f t e r t h e end o f e a c h f i s c a l y e a r , t h e Board o f D i r e c t o r s s h a l l s u p p l y t o a l l Owners a n i t e m i z e d a c c o u n t i n g o f t h e common e x p e n s e s f o r s u c h f i s c a l y e a r a c t u a l l y i n c u r r e d and p a i d , t o g e t h e r w i t h a t a b u l a t i o n o f t h e amounts c o l l e c t e d p u r s u a n t t o t h e b u d g e t o r b u d g e t s a d o p t e d b y t h e Board o f D i r e c t o r s f o r s u c h f i s c a l y e a r , and showing t h e n e t amount o v e r o r s h o r t o f t h e a c t u a l e x p e n d i t u r e s p l u s r e s e r v e s . Any amount a c c u m u l a t e d i n e x c e s s o f t h e amount r e q u i r e d f o r a c t u a l e x p e n s e s and r e s e r v e s e i t h e r s h a l l b e c r e d i t e d i n a p p r o p r i a t e p r o p o r t i o n s t o t h e U n i t Owners t o t h e n e x t m o n t h l y i n s t a l l m e n t ( s ) due u n d e r t h e c u r r e n t f i s c a l y e a r ' s budget, u n t i l exhausted, o r ref u n d e d t o e a c h U n i t Owner, a s t h e Board o f D i r e c t o r s d e t e r m i n e s . Any n e t s h o r t a g e , i f t h e Board o f D i r e c t o r s deems it a d v i s a b l e , s h a l : b e added i n a p p r o p r i a t e p r o p o r t i o n s t o t h e i ~ s : - a l l m e n t ( s ) due i n t h e s u c c e e d i n g months, a f t e r t h e rendering of t h e accounting. 6.1.4 Reserves The Board o f D i r e c t o r s s h a l l b u i l d up and m a i n t a i n a n a d e q u a t e r e s e r v e f o r w o r k i n g c a p i t a l and c o n t i n g e n c i e s , and a n a d e q u a t e r e s e r v e f o r r e p l a c e m e n t o f t h e common element.^, which s h a l l b e f u n d e d by r e g u l a r m o n t h l y ( o r q u a r t e r l y ) payments r a t h e r t h a n by s p e c i a l a s s e s s m e n t s . A l l f u n d s a c c u m u l a t e d f o r : . ' - 6.1.4 Reserves (Continued) r e s e r v e s s h a l l be k e p t i n a s e p a r a t e bank a c c o u n t , s e g r e g a t e d from t h e g e n e r a l o p e r a t i n g f u n d s . E x t r a o r d i n a r y expenditures n o t originally i n c l u d e d l n t h e a n n u a l b u d g e t and which may become n e c e s s a r y - d u r i n g any y e a r s h a l l be c h a r g e d first a g a i n s t s u c h r e s e r v e s . E x c e p t where an emergency r e q u i r e s an e x p e n d i t u r e t o p r e v e n t o r minlmlze l o s s from f u r t h e r damage t o , o r d e t e r i o r a t i o n o f , t h e common e l e m e n t s , r e s e r v e s a c c u m u l a t e d f o r one p u r p o s e may n o t b e e x pended f o r any o t h e r p u r p o s e u n l e s s a p p r o v e d by t h e U n i t Owners' A s s o c i a t i o n . I f t h e r e s e r v e s a r e lna d e q u a t e f o r any r e a s o n , i n c l u d i n g non-payment o f Hny Owner's a s s e s s m e n t , t h e Board o f D i r e c t o r s may a t any t i m e l e v y a f u r t h e r a s s e s s m e n t , which s h a l l b e a s s e s s e d a g a i n s t t h e Owners i n p r o p o r t i o n t o t h e i r i n t e r e s t s i n t h e common e l e m e n t s and which may b e p a y a b l e i n a lump sum o r i n i n s t a l l m e n t s a s t h e Board o f D i r e c t o r s may d e t e r m i n e . The Board o f D i r e c t o r s s h a l l s e r v e n o t i c e o f any s u c h f u r t h e r a s s e s s m e n t on a l l Owners by a s t a t e m e n t i n w r i t i n g g i v i n g t h e amount and r e a s o n s t h e r e f o r , and s u c h f u r t h e r assessment s h a l l , unless otherwise s p e c i f i e d i n t h e n o t i c e , become e f f e c t i v e w i t h t h e n e x t monthly ( o r q u a r t e r l y , ~ f payments a r e r e q u i r e d by t h e Board o f D i r e c t o r s t o b e made q u a r t e r l y ) payment which 1s due more t h a n t e n ( 1 0 ) d a y s a f t e r t h e d e l i v e r y o r mailing of such n o t i c e of f u r t h e r assessment. A l l Owners s h a l l be o b l i g a t e d t o pay t h e a d j u s t e d monthly amount o r , i f t h e a d d i t i o n a l a s s e s s m e n t i s n o t paya b l e i n i n s t a l l m e n t s , t h e amount o f s u c h a s s e s s m e n t . 6.1.5 I n i t i a l Assessment When t h e f i r s t Board o f D i r e c t o r s t a k e s o f f i c e , it s h a l l determine t h e budget, as defined i n t h i s s e c t i o n , f o r t h e p e r i o d commencing upon t h e conveyance o f l e g a l t i t l e t o t h e f i r s t Unit by t h e D e c l a r a n t s and e n d i n g on December 3 1 o f t h e f i s c a l y e a r i n which s u c h conveyance o c c u r s . A s s e s s m e n t s s h a l l b e l e v i e d a g a i n s t t h e Owners d u r i n g s a i d period a s provided i n secton 6.1.3. The Board o f D i r e c t o r s may e s t a b l i s h an i n i t i a l working c a p i t a l fund through s p e c i a l assessment of each Owner upon p u r c h a s e o f h i s Condominium U n i t from the Declarants. Effect o f F a i l u r e t o P r e p a r e o r Adopt Budget The f a i l u r e o r d e l a y o f t h e Board o f D i r e c t o r s t o p r e p a r e o r a d o p t t h e annual budget o r a d j u s t e d b u d g e t f o r any f i s c a l y e a r s h a l l n o t c o n s t i t u t e a w a i v e r o r r e l e a s e i n any manner o f an Owner's o b l i g a t i o n t o pay h i s a l l o c a b l e s h a r e o f t h e common e x p e n s e a s h e r e i n p r o v i d e d , whenever t h e same s h a l l b e d e t e r m i n e d , and i n t h e a b s e n c e o f any E f f e c t o f F a i l u r e t o P r e p a r e c r Adopt Budget ( C o n t i n u e d ) a n n u a l b u d g e t o r a d j u s t e d b u d g e t , e a c h Owner s h a l l c o n t i n u e t o p a y t h e monthly c h a r g e a t t h e t h e n e x i s t i n g monthly r a t e e s t a b l i s h e d f o r t h e p r e v i o u s f i s c a l p e r i o d u n t i l t h e monthly ( o r q u a r t e r l y ) payment which i s due more t h a n t e n ( 1 0 ) d a y s a f t e r s u c h new a n n u a l o r a d j u s t e d b u d g e t s h a l l have been mailed o r d e l i v e r e d . 6.1.7 Accounts ~ x d e p ta& o t h e r w i s e p r o v i d e d by t h k s e Bylaws, a l l sums. c o l l e c t e d by t h e Board 'of D i r e c t o r s w i t h r e s p e c t t o a s s e s s m e n t s a g a i n s t t h e Owners may b e commingled i n t o a s i n g l e f u n d , b u t s h a l l b e h e l d f o r e a c h Owner i n p r o p o r t i o n t o h i s i n t e r e s t i n t h e common e l e m e n t s . Payment o f Common Expens= A l l Owners s h a l l b e o b l i g a t e d t o pay t h e common e x p e n s e s a s s e s s e d by t h e Board o f D i r e c t o r s p u r suant t o t h e provisions of section 6 . 1 . 3 . No U n i t Owner may exempt h i m s e l f from l i a b i l i t y f o r h i s contribution toward common e x p e n s e s by w a i v e r o f t h e u s e o f e n j o y m e n t o f any o f t h e common e l e ments o r by abandonment o f h i s U n i t . No Owner s h a l l b e l i a b l e f o r t h e payment o f any p a r t o f t h e common e x p e n s e s a s s e s s e d a g a i n s t h i s Condominium U n i t s u b s e q u e n t t o a s a l e , t r a n s f e r o r o t h e r conv e y a n c e by him o f s u c h U n i t . The p u r c h a s e r o f a Condominium U n i t o r s u c c e s s o r Owner by v i r t u e o f s u c h t r a n s f e r o r o t h e r conveyance s h a l l be j o i n t l y and s e v e r a l l y l i a b l e w i t h t h e s e l l i n g Owner f o r a l l unpaid assessments a g a i n s t the l a t t e r f o r h i s prop o r t i o n a t e s h a r e o f t h e common e x p e n s e s up t o t h e time o f t h e conveyance, w i t h o u t p r e j u d i c e t o t h e p u r c h a s e r ' s r i g h t t o r e c o v e r from t h e s e l l i n g Owner t h e amounts p a i d by t h e p u r c h a s e r t h e r e f o r ; p r o v i d e d , however, t h a t any Owner o r p u r c h a s e r o f a U n i t s h a l l , upon w r i t t e n r e q u e s t a d d r e s s e d t o t h e P r e s i d e n t o f t h e Condominium o r a member o f t h e Board o f D i r e c t o r s o r t h e Managing Agent, b e e n t i t l e d t o a r e c o r d a b l e s t a t e m e n t from t h e Board o f D i r e c t o r s o r Managing Agent s e t t i n g f o r t h t h e amount ( i f a n y ) o f t h e unp a i d a s s e s s m e n t s a g a i n s t t h e s e l l i n g Owner. Such p u r c h a s e r s h a l l n o t be l i a b l e f o r , nor s h a l l t h e Condominium U n i t conveyed b e s u b j e c t t o a l i e n f o r , any u n p a i d a s s e s s m e n t s i n e x c e s s o f t h e amount t h e r e i n s e t f o r t h . Such s t a t e m e n t s h a l l b e b i n d i n g on t h e U n i t Owners' A s s o c i a t i o n , t h e Board o f D i r e c t o r s , and e v e r y U n i t Owner. F a i l u r e t o f u r n i s h o r make a v a i l a b l e such a statement within f i v e ( 5 ) business d a y s from r e c e i p t o f s u c h r e q u e s t s h a l l e x t i n g u i s h t h e l i e n f o r u n p a i d a s s e s s m e n t s . Payment o f a f e e 6.1.8 Payment o f Common E x ~ e n s e s ( C o n t i n u e d ) o f Ten D o l l a r s ( $ 1 0 ) s h a l l b e r e q u i r e d a s a p r e If a r e q u i s i t e f o r issuance of such a statement. mortgagee o f a f i r s t mortgage of r e c o r d o r o t h e r p u r c h a s e r o f a Condominium U n i t o b t a i n s t i t l e t o t h e Condominium U n i t o r comes i n t o p o s s e s s i o n o f t h e Condominium U n i t a s a r e s u l t o f f o r e c l o s u r e o f a f i r s t m o r t g a g e , o r a s t h e r e s u l t o f any o t h e r remed i e s p r o v i d e d f o r i n t h e mortgage o r by v i r t u e o f a deed o r assignment i n l i e u of f o r e c l o s u r e , such f i r s t mortgagee o r p u r c h a s e r , t h e i r s u c c e s s o r s and a s s i g n s sha.11 n o t b e l i a b l e f o r , ' and s u c h Condominium U n i t .. s h a l l . . n o t . be. s u b , j e c t tq,.. a ..l i e n ...f o r . .thepaymen.t o f . . common'expenses a s s e s s e d and p a y a b l e p r y o r ' t o t h e acquisition of t i t l e t o o r prior t o the taking of possession of (whichever f i r s t occurs) such Unit by such p u r c h a s e r o r f i r s t mortgagee p u r s u a n t t o t h e a f o r e s a i d remedies. Such u n p a i d s h a r e o f common , expenses f o r which, p u r s u a n t t o . t h i s s e c t i o n , a p u r c h a s e r o r f i r s t m o r t g a g e e s h a l l n o t have l i a b i l i t y , s h a l l b e c o l l e c t i b l e from a l l Owners, i n c l u d i n g t h e f i r s t mortgagee o r p u r c h a s e r , i n s h a r e s p r o p o r t i o n a t e t o each Owner's a l l o c a t e d , undivided i n t e r e s t i n t h e common e l e m e n t s . C o l l e c t i o n of A s s e s s m e n t s The Board o f D i r e c t o r s s h a l l t a k e prompt a c t i o n t o c o l l e c t any a s s e s s m e n t s f o r common e x p e n s e s d u e from any Owner which r e m a i n u n p a i d f o r more t h a n t h i r t y ( 3 0 ) d a y s from t h e due d a t e f o r payment t h e r e o f . 6.2 M a i n t e n a n c e and R e p a i r 6.2.1 By t h e U n i t Owners' A s s o c i a t i o n The U n i t Owners' A s s o c i a t i o n and i t s Board o f D i r e c t o r s s h a l l be r e s p o n s i b l e f o r t h e maintena n c e , r e p a i r and r e p l a c e m e n t ( u n l e s s n e c e s s i t a t e d b y the n e g l i g e n c e , m i s u s e o r n e g l e c t o f an Owner, i n which c a s e s u c h e x p e n s e s h a l l b e c h a r g e d t o s u c h Owner) o f t h e f o l l o w i n g , t h e c o s t o f which s h a l l b e c h a r g e d t o a l l Owners a s a common e x p e n s e : (1) A l l o f t h e l i m i t e d and g e n e r a l common elements, whether l o c a t e d i n s i d e o r o u t s i d e o f the U n i t s , e x c e p t f o r p a t i o s w i t h r e s p e c t t o which o n l y s t r u c t u r a l components s h a l l be i n cluded. ( 2 ) A l l i n c i d e n t a l damage c a u s e d t o any U n i t b y s u c h work a s may b e done o r c a u s e d t o be done by the Board o f D i r e c t o r s i n a c c o r d a n c e h e r e w i t h . By Owner E x c e p t f o r t h e p o r t i o n s o f any U n i t a n d l i m i t e d common e l e m e n t s r e q u i r e d t o b e m a i n t a i n e d , rep a i r e d and r e p l a c e d by t h e U n i t Owners' A s s o c i a t i o n , e a c h Owner s h a l l b e r e s p o n s i b l e f o r t h e maintenance, r e p a i r and r e p l a c e m e n t , a t t h e ' u n i t O w n e r ' s own e x p e n s e , o f h i s o r h e r U n i t a n d a n y ' p a r t t h e r e o f , i n c l u d i n g where a p p l i c a b l e p a t i o s e x c e p t a s t o s t r u c t u r a l c o m p o n e n t s . Each Owner s h a l l keep h i s o r h e r U n i t and i t s equipment and a p p u r t e n a n c e s i n good o r d e r , c o n d i t i o n a n d r e p a i r and i n a c l e a n a n d s a n i t a r y c o n d i t i o n . , a n d s h a l l , d o a l l r e d g c , o r a t i n g , , , a n d , p a i n t i n g . w h i c h ,.may.,a t any t i i i e ' b e n e c e s s a r y t o ' m a i n t a i n t h e good a p p e a r ance and c o n d i t i o n of t h e Unit. I n a d d i t i o n , each Owner s h a l l b e r e s p o n s i b l e f o r a l l damages t o a n y a n d a l l o t h e r U n i t s o r t o t h e common e l e m e n t s r e s u l t i n g from h i s o r h e r f a i l u r e t o make a n y o f t h e r e p a i r s r e q u i r e d t o b e made by t h e Owner by t h i s . s e c t i o n . E a c h Owner s h a l l p e r f o r m h i s o r h e r r e s p o n s i b . i l i t y i n s u c h manner a s s h a l l n o t u n r e a s o n a b l y d i s t u r b o r i n t e r f e r e w i t h t h e o t h e r s Owners. Each Owner s h a l l p r o m p t l y r e p o r t t o the Board o f D i r e c t o r s o r t h e Managing A g e n t any d e f e c t o r n e e d f o r r e p a i r s f o r w h i c h t h e U n i t Owners' A s s o c i a t i o n i s r e s p o n s i b l e . ,,. 6.2.3 ., Manner o f R e p a i r a n d R e p l a c e m e c t A l l r e p a i r s and replacements s h a l l be s u b s t a n t i a l l y s i m i l a r t o t h e o r i g i n a l c o n s t r u c t i o n and i n s t a l l a t i o n a n d s h a l l b e o f h i g h q u a l i t y . The method o f a p p r o v i n g p a y m e n t v o u c h e r s f o r a l l r e p a i r s a n d rep l a c e m e n t s s h a l l b e d e t e r m i n e d by t h e B o a r d o f D i rectors. A d d i t i o n s , ~ l t e r a t i o n so r Improvements 6.3.1 By t h e ~ s s o c i a t i o n Whenever i n t h e judgment o f t h e B o a r d o f D i r e c t o r s t h e common e l e m e n t s s h a l l r e q u i r e a d d i t i o n s , a l t e r a t i o n s o r improvements c o s t i n g i n e x c e s s o f F i v e Thousand D o l l a r s ( $ 5 , 0 0 0 ) d u r i n g any p e r i o d o f t w e l v e ( 1 2 ) c o n s e c u t i v e m o n t h s , and t h e making o f s u c h add i t i o n s , a l t e r a t i o n s o r improvements s h a l l h a v e b e e n a p p r o v e d by Owners h o l d i n g a m a j o r i t y o f t h e v o t e s , t h e Board o f D i r e c t o r s s h a l l p r o c e e d w i t h s u c h a d d i t i o n s , a l t e r a t i o n s o r improvements and s h a l l a s s e s s a l l Owners f o r t h e c o s t t h e r e o f a s a common e x p e n s e . Any a d ' d i t i o n s , a l t e r a t i o n s o r improvements c o s t i n g F i v e Thousand D o l l a r s ( $ 5 , 0 0 0 ) o r l e s s d u r i n g a n y p e r i o d o f t w e l v e ( 1 2 ) c o n s e c u t i v e months may b e made b y t h e Board o f D i r e c t o r s w i t h o u t a p p r o v a l o f t h e Owners a n d t h e c o s t t h e r e o f s h a l l constitute p a r t o f t h e common e x p e n s e s . N o t w i t h s t a n d i n g t h e f o r e g o i n g , i f , i n the o p i n i o n o f n o t l e s s t h a n 6 6 - 2 / 3 % o f t h e 6.3.1 'By t h e A s s o c i a t i o n ( C o n t i n u e d ) members o f t h e Board o f D i r e c t o r s , any a d d i t i o n s , a l t e r a t i o n s o r improvements a r e e x c l u s i v e l y o r s u b s t a n t i a l l y e x c l u s i v e l y f o r t h e b e n e f i t o f t h e Cwner o r Owners r e q u e s t i n g t h e same, s u c h r e q u e s t i n g Owners s h a l l b e a s s e s s e d t h e r e f o r i n s u c h p r o p o r t i o n a s t h e y j o i n t l y approve o r , i f t h e y a r e u n a b l e t o a g r e e t h e r e o n , i n s u c h p r o p o r t i o n s a s may b e det e r m i n e d by t h e S o a r d o f D i r e c t o r s . 6.3.2 By Owners NO Owner s h a l l make any s t r u c t u r a l a d d i t i o n , ' a l t e r . ' . a t i . o n . o r irnproveirient, i n . - o r ' t o a Uriit w i t h o u t t h e , p r i o r w r i t t e n c o n s e n t t h e r e t o o f t h e Board o f D i r e c t o r s . No Owner s h a l l p a i n t o r a l t e r t h e e x t e r i o r o f t h e B u i l d i n g o r a U n i t , i n c l u d i n g t h e d o o r s and windows, o r any f e n c e , n o r s h a l l an Owner e r e c t a f e n c e on t h e P r o p e r t y , w i t h o u t t h e p r i o r w r i t t e n c o n s e n t t h e r e t o o f t h e Board o f D i r e c t o r s . The Board o f D i r e c t o r s s h a l l b e o b l i g a t e d t o answer any w r i t t e n r e q u e s t by a n Owner f o r a p p r o v a l o f a p r o p o s e d s t r u c t u r a l a d d i t i o n , a l t e r a t i o n o r improvement ( b y p a i n t i n g o r o t h e r w i s e ) , i n o r t o s u c h O w n e r ' s Unit w i t h i n f o r t y - f i v e ( 4 5 ) days a f t e r such r e q u e s t , and i t s f a i l u r e t o do s o w i t h i n t h e s t i p u l a t e d t i m e s h a l l c o n s t i t u t e a c o n s e n t by t h e Board o f D i r e c t o r s t o t h e p r o p o s e d a d d i t i o n , a l t e r a t i o n o r improvement. Any a p p l i c a t i o n t o any g o v e r n m e n t a l a u t h o r i t y f o r a p e r m i t t o make an a d d i t i o n , a l t e r a t i o n o r improvement i n o r t o any U n i t s h a l l b e e x e c u t e d by t h e Board o f D i r e c t o r s o n l y , w i t h o u t however i n c u r r i n g a n y l i a b i l i t y on t h e p a r t o f t h e Board o f D i r e c t o r s , o r any member t h e r e o f , t o any c o n t r a c t o r , s u b c o n t r a c t o r o r m a t e r i a l m a n on a c c o u n t o f s u c h a d d i t i o n , a l t e r a t i o n o r i m p r o v e m e n t , o r t o any p e r s o n h a v i n g anv c l a i m f o r i n j u r y t o p e r s o n o r damage t o p r o p e r t y a r i s i n g therefrom. -6.4 R e s t r i c t i o n s on Use o f U n i t s and Common E l e m e n t s Each U n i t and t h e common e l e m e n t s s h a l l b e o c c u p i e d and used a s follows: 6.4.1 No p a r t o f t h e P r o p e r t y e x c e p t i n d i v i d u a l U n i t s s h a l l be u s e d f o r o t h e r t h a n h o u s i n g and t h e r e l a t e d common p u r p o s e s f o r which t h e P r o p e r t y was d e s i g n e d . Each U n i t s h a l l b e u s e d a s a r e s i d e n c e and e a c h P a r k i n g U n i t shall b e u s e d t o p a r k one a u t o m o b i l e o r two-wheeled v e h i c l e o n l y ( a n d n o t trucks, recreational vehicles or other). 6.4.2 N o t h i n g s h a l l b e done o r k e p t i n any U n i t o r i n t h e common e l e m e n t s which w i l l i n c r e a s e t h e r a t e o f insurance f o r t h e Property, o r t h e contents thereof, applicable for residential or professional use, w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f t h e Board o f ~ i r e c t o r s . No Owner s h a l l p e r m i t a n y t h i n g t o be done o r k e p t i n h i s o r h e r U n i t o r i n t h e common e l e m e n t s which w i l l r e s u l t i n t h e c a n c e l l a t i o n o f i n s u r a n c e on t h e P r o p e r t y , o r t h e c o n t e n t s t h e r e o f , o r which would b e i n v i o l a t i o r 1 o f a n y law. No w a s t e w i l l b e committed i n t h e common e l e m e n t s . 6.4.3 No immoral, i m p r o p e r , o f f e n s i v e , o r u n l a w f u l u s e s h a l l b e made o f t h e P r o p e r t y o r any p a r t t h e r e o f , and a l l v a l i d l a w s , z o n i n g o r d i n a n c e s and r e g u l a t i o n s o f ' a l l governmental a g e n c i e s having j u r i s d i c t i o n thereof s h a l l be observed. A l l laws, o r d e r s , r u l e s , r e g u l a t i o n s , o r r e q u i r e m e n t s o f any g o v e r n m e n t a l agency h a v i n g j u r i s d i c t i o n t h e r e o f , ' r e l a t i n g ',to..' a n y . p a r t i o n ' o f the,~ r o p e r t ysha.ll"be.'compl'ied'. ' w i t h , by and a t t h e s o l e e x p e n s e o f t h e U n i t Owner o r t h e U n i t Owner's A s s o c i a t i o n , w h i c h e v e r s h a l l have t h e o b l i g a t i o n t o m a i n t a i n o r r e p a i r s u c h portion of t h e Property. , 6.4.4 N o t h i n g s h a l l b e done i n any U n i t o r i n , o n , o r t o t h e common e l e m e n t s which w i l l i m p a i r t h e s t r u c t u r a l i n t e g r i t y o f t h e P r o p e r t y o r which would s t r u c t u r a l l y change t h e B u i l d i n g o r o t h e r improvements on t h e P r o p e r t y e x c e p t a s i s o t h e r w i s e p r o v i d e d i n t h e s e Bylaws; p r o v i d e d , f u r t h e r , t h a t i n t e r i o r p a r t i t i o n s c o n t r i b u t i n g t o the s u p p o r t o f any U n i t o r t h e B u i l d i n g s h a l l n o t b e a l t e r e d o r removed. 6.4.5 No Owner may p o s t any a d v e r t i s e m e n t , p o s t e r o r sign o f any k i n d on t h e e x t e r i o r o f h i s U n i t o r i n t h e windows o f h i s U n i t , e x c e p t ( i ) a s p e r m i t t e d by t h e Board o f D i r e c t o r s ; ( i i ) a t e m p o r a s y s i g n a d v e r t i s i n g t h e s a l e o r r e n t a l of a Unit; o r (iii) when r e q u i r e d by law. A l l s i g n s s h a l l b e s u b j e c t t o t h e a p p r o v a l o f t h e Board o f D i r e c t o r s a s t o s i z e , a p p e a r a n c e and l o c a t i o n . T h e r i g h t i s r e s e r v e d by t h e D e c l a r a n t s o r t h e i r a g e n t s t o u s e any u n s o l d U n i t o r U n i t s and t h e common e l e m e n t s f o r d i s p l a y p u r p o s e s and t o d i s p l a y "For Sale" o r s i m i l a r s i g n s f o r unsold Units . 6 4.6 Nothing s h a l l b e a l t e r e d o r c o n s t r u c t e d i n o r removed from t h e common e l e m e n t s , e x c e p t upon t h e w r i t t e n c o n s e n t o f t h e Board o f D i r e c t o r s . 6.4.7 The common furnishing which t h e y incidental 6.4.8 No f e n c e s may b e e r e c t e d on t h e P r o p e r t y e x c e p t f o r t h o s e e r e c t e d by t h e D e c l a r a n t s and t h o s e e r e c t e d by Owners a f t e r o b t a i n i n g t h e w r i t t e n c o n s e n t o f the Board o f D i r e c t o r s . elements s h a l l be used only f o r t h e o f t h e s e r v i c e s and f a c i l i t i e s f o r a r e r e a s o n a b l y s u i t e d and which a r e t o the u s e and occupancy o f t h e U n i t s . 6.4.9 No e x t e r i o r a n t e n n a may be e r e c t e d by any U n i t Owner. 6 . 4 . 1 0 No p o r t i o n o f a u n i t ( o t h e r t h a n t h e e n t i r e U n i t ) may be r e n t e d , and no t r a n s i e n t t e n a n t s may be accommodated t h e r e i n . 6 . 4 . 1 1 The L i m i t e d Common Elements and t h e e x t e r i o r o f a l l U n i t s must be k e p t i n an o r d e r l y c o n d i t i o n s o a s n o t t o d e t r a c t from t h e n e a t a p p e a r a n c e o f the Building. 6.5 Right of Access. ' , An. Owner s h a l l . g r a n t a r i g h t ' o f 'access t o h i s ' o r h e r U n i t t o t h e o t h e r Owners and Board o f D i r e c t o r s o r t h e Managing Agent, o r any o t h e r p e r s o n a u t h o r i z e d by t h e Board o f D i r e c t o r s o r t h e Managing Agent o r t h e o t h e r U n i t Owners, o r any g r o u p o f t h e f o r e g o i n g , f o r t h e p u r p o s e o f making i n s p e c t i o n s oz f o r t h e p u r p o s e o f c o r r e c t i n g any c o n d i t i o n o r i g i n a t i n g i n h i s o r h e r U n i t and t h r e a t e n i n g a n o t h e r U n i t o r t h e Common E l e m e n t s , o r f o r t h e p u r p o s e o f performing i n s t a l l a t i o n s , a l t e r a t i o n s o r r e p a i r s t o t h e mechanical o r e l e c t r i c a l s e r v i c e s of o r t h e Common E l e m e n t s i n s u c h U n i t o r e l s e w h e r e i n t h e P r o p e r t y , o r t o c o r r e c t any c o n d i t i o n which v i o l a t e s t h e p r o v i s i o n s o f any mortgage c o v e r i n g a n o t h e r Condominium U n i t , p r o v i d e d t h a t r e q u e s t s f o r e n t r y a r e made i n advance and t h a t any s u c h e n t r y i s a t a t i m e r e a s o n a b l y c o n v e n i e n t t o t h e Owner. I n c a s e o f a n emergency, s u c h r i g h t o f e n t r y s h a l l b e i m m e d i a t e , w h e t h e r t h e Owner i s p r e s e n t a t t h e t i m e or not. 6.6 R u l e s and R e q u l a t i o n s R u l e s and ~ e g u l a t i o n sc o n c e r n i n g t h e o p e r a t i o n and u s e o f the. Common Elements may be p r o m u l g a t e d and amended by t h e Board o f D i r e c t o r s , p r o v i d e d t h a t s u c h R u l e s and R e g u l a t i o n s a r e n o t c o n t r a r y t o o r i n c o n s i s t e n t w i t h t h e Condominium A c t , t h e D e c l a r ~ t i o no r t h e s e Bylaws. Copies o f t h e R u l e s and ? . ~ g u l a t i o n s s h a l l b e f u r n i s h e d by t h e Board o f D i r e c t o r s t o e a c h Owner p r i o r t o t h e t i m e when t h e same s h a l l become e f f e c t i v e . 6.7 E l e c t r i c i t y and Water Charges and Sewer R e n t s E l e c t r i c i t y s h a l l be s u p p l i e d by t h e public ( o r p r i v a t e ) u t i l i t y companies s e r v i n g t h e a r e a d i r e c t l y t o each Unit through separate meters and e a c h Owner s h a l l b e r e q u i r e d t o pay t h e b i l l s f o r e l e c t r i c i t y consumed o r u s e d i n h i s o r h e r U n i t o f t h e l i m i t e d common e l e m e n t ( s ) a p p e r t a i n i n g t o s u c h U n i t . The e l e c t r i c i t y s e r v i n g t h e g e n e r a l common e l e m e n t s s h a l l be s e p a r a t e l y m e t e r e d , and t h e U n i t Owners' A s s o c i a t i o n s h a l l pay a l l b i l l s f o r s u c h consumed i n s u c h . 6.7 (Continued) p o r t i o n s o f t h e g e n e r a l common e l e m e n t s a s a common e x p e n s e . The w a t e r and s e w e r r e n t s s h a l l b e commonly m e t e r e d and c h a r g e d , and t h e U n i t Cwners' A s s o c i a t i o n s h a l l p a y a l l b i l l s f o r w a t e r and sewer r e n t s consumed on t h e P r o p e r t y a s a common e x p e n s e . Water and s e w e r ' s e r v i c e s h a l l be s u b j e c t t o d i s c o n t i n u a n c e i n t h e e v e n t of f a i l u r e f o r any r e a s o n by t h e U n i t Owners' ~ s s o c i a t i o nt o pay t h e b i l l o r b i l l s r e n d e r e d for s u c h s e r v i c e . . .. ARTICLE 7 .. , INSURANCE PROVISIONS 7.1 A u t h o r i t y t o P u r c h a s e ; Coverage The Board o f D i r e c t o r s s h a l l o b t a i n and m a i n t a i n t o t h e e x t e n t r e a s o n a b l y a v a i l a b l e and from a major insurance cornpany(ies) of r e p u t a b l e standi n g and i n good f i n a n c i a l c o n d i t i o n t h e f o l l o w i n g i n s u r a n c e , t h e p o l i c i e s f o r which s h a l l name a s t h e i n s u r e d t h e U n i t Owners' A s s o c i a t i o n o f The C o u r t , A Condominium f o r t h e u s e a n d b e n e f i t o f t h e Owners ( d e s i g n a t e d by name, i f r e q u i r e d ) : 7.1.1 A s i n g l e m a s t e r p o l i c y c o v e r i n g p h y s i c a l damage t o t h e e n t i r e P r o p e r t y by f i r e o r o t h e r c a s u a l t y , w i t h e x t e n d e d c o v e r a g e and v a n d a l i s m , windstorm, and o t h e r a p p r o p r i a t e e n d o r s e m e n t s , u n d e r which t h e i n s u r a n c e company w i l l i s s u e t o e a c h Owner a c e r t i f i c a t e o r subpolicy specifying t h e portion o f t h e m a s t e r p o l i c y a l l o c a t e d t o e a c h Owner's U n i t and t h e p e r c e n t a g e i n t e r e s t o f s u c h U n i t i n t h e common e l e m e n t s . The f o r e g o i n g p o l i c y s h a l l i n c l u d e such waiver of s u b r o g a t i o n , c a n c e l l a t i o n a n d "no o t h e r i n s u r a n c e " p r o v i s i o n s , a s w e l l a s a s t a n d a r d mortgagee and s u c h o t h e r c l a u s e s a s t h e Board o f ~ i r e c t o r ss h a l l deem a d v i s a b l e , p r o v i d e d that s u c h p o l i z y s h a l l i n no e v e n t p r o v i d e t h a t it can be cancelled, reduced o r s u b s t a n t i a l l y modified w i t h o u t a t least t e n ( 1 0 ) d a y s ' p r i o r w r i t t e n n o t i c e t o t h e U n i t Owners' A s s o c i a t i o n , t h e Board o f D i r e c t o r s and a l l f i r s t m o r t g a g e e s o f Condominium U n i t s ( o r t h e i r t r u s t e e s ) . Such p o l i c y s h a l l b e c a r r i e d i n an amount equal t o t h e f u l l r e p l a c e m e n t c o s t o f t h e P r o p e r t y w i t h no d e d u c t i o n f o r depreciation. 7.1.2 Comprehensive p u b l i c l i a b i l i t y and p r o p e r t y damage i n s u r a n c e p r o v i d i n g c o v e r a g e i n an amount deemed a p p r o p r i a t e by t h e Board o f D i r e c t o r s . Such p o l i c y s h a l l i n s u r e e a c h member o f t h e Board o f D i r e c t o r s , the Managing Agent, if any, a n d e a c h Owner a g a i n s t any l i a b i l i t y t o the p u b l i c o r o t h e r Owners, o r t h e i r i n v i t e e s , agents, o r e m p l o y e e s , a r i s i n g o u t (Continued) o f o r i n c i d e n t t o t h e ownership and/or use of t h e common e l e m e n t s . s u c h i n s u r a n c e s h a l l c o n t a i n s u c h e n d o r s e m e n t s and s h a l l be i n s u c h form a s from t i m e t o t i m e i s d e t e r m i n e d b y t h e Board o f Directors. I t shall b e t h e r e s p o n s i b i l i t y o f . e a c h Owner t o o b t a l n a t h i s o r h e r own e x p e n s e l i a b i l i t y i n s u r a n c e w i t h r e s p e c t t o t h e owners h i p and/or use of such Owner's U n i t . Workman's C o m p e n s a t i o n i n s u r a n c e i f and t o t h e e x t e n t n e c e s s a r y t o comply w i t h t h e r e q u i r e m e n t s o f any. a p p l i c a b l e laws. o r r e g u l a t i o n s . Other Insurance The Board o f D i r e c t o r s may from time t o t i m e p u r c h a s e f o r t h e Condominium s u c h o t h e r i n s u r a n c e a s i t deems n e c e s s a r y o r a p p r o p r i a t e . Each Owner s h a l l have t h e r i g h t , a t s u c h O w n e r ' s own e x p e n s e , t o o b t a i n a d d i t i o n a l i n s u r a n c e c o v e r a g e upon p e r s o n a l p r o p e r t y and f o r p e r s o n a l l i a b i l i t y , p r o v i d e d t h a t no Owner s h a l l b e e n t i t l e d t o e x e r c i s e t h e r i g h t t o acquire o r maintain such a d d i t i o n a l i n s u r a n c e c o v e r a g e s o a s t o d e c r e a s e t h e amount which t h e U n i t Owners' A s s o c i a t i o n o r t h e Board o f D i r e c t o r s , on b e h a l f o f a l l Owners, may r e a l i z e u n d e r a n y i n s u r a n c e p o l i c y w h i c h i t may h a v e i n f o r c e on t h e P r o p e r t y a t any p a r t i c u l a r t i m e o r t o c a u s e any i n s u r a n c e c o v e r a g e m a i n t a i n e d by t h e Board o f D i r e c t o r s t o b e b r o u g h t i n t o contribution w i t h s u c h a d d i t i o n a l i n s u r a n c e c o v e r a g e o b t a i n e d by t h e Owner. A l l s u c h a d d i t i o n a l p o l i c i e s s h a l l contain waivers of scbrogation. Premiums and D e d u c t i b l e s Premiums and d e d u c t i b l e s upon a l l i n s u r a n c e p o l i c i e s p u r c h a s e d by t h e Board o f D i r e c t o r s s h a l l b e deemed t o b e common e x p e n s e s . Board o f D i r e c t o r s a s ;,gent The Board o f D i r e c t o r s i s h e r e b y i r r e v o c a b l y a p p o i n t e d t h e a g e n t f o r t h e U n i t Owners1 . A s s o c i a t i o n , e a c h Owner o f a Condominium U n i t and f o r e a c h m o r t g a g e e o f a Condominium U n i t a n d f o r e a c h owner o f a n y o t h e r i n t e r e s t i n the Property t o adjust a l l claims a r i s i n g u n d e r i n s u r a n c e p o l i c i e s p u r c h a s e d by t h e Board o f D i r e c t o r s and t o e x e c u t e and d e l i v e r r e l e a s e s upon t h e payment o f c l a i m s . Payment o f P r o c e e d s The n e t p r o c e e d s o f any i n s u r a n c e m a i n t a i n e d p u r s u a n t t o t h i s A r t i c l e 7 , i f $25,000 o r l e s s , s h a l l b e p a y a b l e t o t h e Board o f D i r e c t o r s a n d , i f more t h a n $ 2 5 , 0 0 0 , s h a l l b e p a y a b l e t o t h e (Continued) "Insurance Trustee." The I n s u r a n c e T r u s t e e s h a l l b e a b a n k , t r u s t company, s a v i n g s and l o a n association, building loan association, insurance company, o r a n y i n s t i t u t i o n a l l e n d e r d e s i g n a t e d by t h e Board o f D i r e c t o r s , and a l l p a r t i e s b e n e f i c i a l l y i n t e r e s t e d i n such insurance coverage s h a l l b e bound by s u c h d e s i g n a t i o n . The i n s u r a n c e t r u s t e e s h a l l n o t b e l i a b l e f o r payment o f a n y premiums, r e n e w a l o f p o l i c i e s , s u f f i c i e n c y o f c o v e r a g e , form o r c o n t e n t o f p o l i c i e s , c o r r e c t n e s s o f amounts i t r e c e i v e s , o r t h e . f a i l u r e t o c o l l e c t proceeds; t h e s o l e d u t y of t h e i n s u r a n c e " t n i s t ' e e " s h a l 1 ' b e t o r e c e ' i v e ~ u c h . ~ r o c e e da's s ' are" p a i d t o i t and t o h o l d t h e same i n t r u s t f o r t h e p u r p o s e s s e t f o r t h i n t h e D e c l a r a t o n and t h e s e Bylaws f o r t h e b e n e f i t o f t h e U n i t Owners' A S S O C ~ a t i o n , t h e U n i t Owners a n d t h e i r r e s p e c t i v e m o r t gagees . ARTICLE 8 REPAIR AND RECONSTRUCTION AFTER FIRE OR OTHER CASUAL= When R e p a i r and R e c o n s t r u c t i o n Are R e q u i r e d S u b j e c t t o t h e p r o v i s i o n s o f s e c t i o n 8 . 4 below, i n t h e e v e n t o f damage t o o r d e s t r u c t i o n o f a l l o r any p a r t o f t h e B u i l d i n g a s a r e s u l t of f i r e , o r o t h e r c a s u a l t y , t h e Board o f D i r e c t o r s s h a l l a r r a n g e f o r a n d s u p e r v i s e t h e prompt r e p a i r and r e s t o r a t i o n o f t h e B u i l d i n g ( i n c l u d i n g any damaged U n i t s , and a n y f l o o r c o v e r i n g s o r any k i t c h e n o r b a t h r o o m f i x t u r e s i n i t i a l l y i n s t a l l e d t h e r e i n by t h e D e c l a r a n t s , and r e p l a c e m e n t s t h e r e o f i n s t a l l e d by t h e Owners, b u t n o t i n c l u d i n g any o t h e r f u r n i t u r e , f u r n i s h i n g s , f i x t u r e s o r equipment i n s t a l l e d by t h e Owners i n t h e U n i t s ) . N o t w i t h s t a n d i n g t h e f o r e g o i n g , e a c h Owner s h a l l h a v e t h e r i g h t t o s u p e r v i s e the r e d e c o r a t i n g o f h i s o r h e r own U n i t . P r o c e d u r e f o r Reconstruction and R e p a i r 8.2.1 Cost Estimates Immediately a f t e r a f i r e o r o t h e r c a s u a l t y c a u s i n g damage t o any B u i l d i n g , t h e Board o f D i r e c t o r s s h a l l o b t a i n r e l i a b l e and d e t a i l e d e s t i m a t e s o f t h e c o s t o f r e p a i r i n g and r e s t o r i n g t h e B u i l d i n g . Immediately a f t e r a f i r e o r o t h e r c a s u a l t y causi n g damage t o a n y B u i l d i n g , t h e Board o f D i r e c t o r s s h a l l o b t a i n r e l i a b l e and d e t a i l e d e s t i m a t e s o f t h e c o s t o f r e p a i r i n g and r e s t o r i n g t h e B u i l d i n g ( i n c l u d i n g a n y damaged U n i t s , and any f l o o r c o v e r i n g s a n d k i t c h e n and b a t h r o o m f i x t u r e s i n i t i a l l y i n s t a l l e d b y the D e c l a r a n t s , and r e p l a c e m e n t s , 8.2.1 (Continued) t h e r e o f i n s t a l l e d by t h e Owner, b u t n o t i n c l u d i n g any o t h e r f u r n i t u r e , f u r n i s h i n g s , f i x t u r e s o r e q u i p m e n t i n s t a l l e d by t h e Owner i n t h e U n i t ) t o a c o n d i t i o n a s good a s t h a t e x i s t i n g b e f o r e s u c h c a s u a l t y . Such c o s t s may a l s o i n c l u d e p r o f e s s i o n a l f e e s and premiums f o r s u c h bonds a s t h e Board o