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HomeMy WebLinkAboutIsland Lagoon Leaf Blower DocumentsRESOLUTION NO. ___ _ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ISLAND LAGOON HOMEOWNERS ASSOCIATION PERTAINING TO CITY RESTRICTIONS ON GAS-POWERED LEAK BLOWERS IN RESIDENTIAL ZONES WHEREAS, the Island Lagoon Homeowners Association is the association of a common interest development located within the boundaries of the City of Newport Beach; and WHEREAS, the City Council of the City of Newport Beach has adopted Ordinance No. 2011-12, which amends Newport Beach Municipal Code ("NBMC") section 6.04.055 (Leaf Blowers) to prohibit, with certain exceptions, the use of gas- powered leaf blowers in all residential districts within the City effective November 14, 2011; and WHEREAS, Ordinance No. 2011-12 finds and declares that common interest development of five or more dwelling units that have an association responsible for establishing regulations controlling the management and maintenance of exterior common area and separate interests have adopted, or have the ability to adopt, self imposed regulations that establish a regulator framework addressing the exterior residential environment, and such regulatory frameworks can be used by common interest developments of five or more dwelling units to more closely address neighborhood impacts of gas-powered leaf blowers within such developments; and WHEREAS, Ordinance No. 2011-12 states that the City Council wishes to prohibit the use of gas-powered leaf blowers in all residential districts except by certain public employees or contractors acting in the scope of their employment, and in residential common interest developments of five or more dwelling units that have an association with the power to establish rules and regulations for the management and maintenance of exterior connnon areas and separate interest. WHEREAS, NBMC section 6.04.055 states that residential common interest development of five or more dwelling units that have an association with the power to establish rules and regulations for the management and maintenance of exterior common areas and separate interest may, by the method set out in their association's rules and regulations, choose, to be exempt from the restrictions on gas-powered leak blowers; and -I - WHEREAS, NBMC section 6.04.055 provides that the City Manager's Office shall establish procedures through which such residential common interest developments rna demonstrate their decision to be exempt from subsection 6.04.055.B.3.; and WHEREAS, the Newport Beach City Manager's office has determined that any residential common interest development of five or more dwelling units that has an association with the power to establish rules and regulations for the management and maintenance of exterior common areas and separate interest may demonstrate its decision to be exempt from the City's restrictions on gas-powered leaf blowers in residential districts through a resolution of its board of Directors of; and WHEREAS, the Island Lagoon Homeowners Association is the association for the common interest development known as Island Lagoon Homeowners Association which is a common interest development of five or more dwelling units, and which has the power to establish rules and regulations for the management and maintenance of exterior common areas and separate areas through its operational rules; and WHEREAS, the Board of Directors of the Island Lagoon Homeowners Association has been granted the power to make decisions for the proper conduct and administration of the affairs of the Island Lagoon Homeowners Association by the CC&R's. NOW, THEREFORE, the Board of Directors of the Island Lagoon Homeowners Association resolves as follows: 1. The Board of Directors of the Island Lagoon Homeowners Association has determined that it is in the best interest of the Island Lagoon Homeowners Association to be exempt from the NewpOli Beach Municipal Code's prohibition on the nse of gas-powered leaf blowers in residential districts. 2. The Board of Directors of the Island Lagoon Homeowners Association has decided, by majority vote to exempt the Island Lagoon Homeowners Association development from the provisions of Newport Beach Municipal Code section 6.04.055.B.1. IN WITNESS WHEREOF, the undersigned, President of the Board of Directors, has executed this Resolution this "6 day of ~'" veAS-e;o ZCi//. -2 - ISLAND LAGOON HOMEOWNERS ASSOCIATION '-.. [Nam~~ - 3 - MINUTES OF THE BOARD OF DIRECTORS ISLAND LAGOON HOMEOWNERS ASSOCIATION September 13, 2011 The Board of Directors meeting of the Island Lagoon Homeowners Association was held on Tuesday September 13, 20 11, in the Clubhouse. BOARD MEMBERS PRESENT: Vince Lee, Kathy Anter Suresh Khemlani MANAGEMENT: Terry Smith CALL TO ORDER The meeting was called to order by Mr. Lee at 2:30 PM. COMMITTEE REPORTS ARCHITECTURAL COMMITTEE REPORT Kathy Anter repolted for the Committee 1. 59 Sea Brook garage paint job is not exactly a match. Although the Committee had signed the completion of the job it was their recommendation to have the HOA re-paint the garage the proper color when other painting in the community is being done at the expense of the Association. a. A motion by member Lee, seconded by member Khemlani to approve this request. This motion was approved. 2. The Committee is working to streamline certain procedures in order to make the architectural process easier for residents. 3. 9 Sea Cove -the owners to be notified that prior architectural approvals for work that has not yet been completed must present a new request. 4. The committee will add to the application that all improvement projects be completed with 90 days, or notify the committee FINANCIAL COMMITTEE REPORT Chairman Patton repOlted: I. Reported that at the end of the FlY the Association ended approximately $27,669 under budget for the year. 2. Reserves expect to be approx $490,000 at the end of the next FlY 3. Purged accounts that have a retained balance will be transferred to miscellaneous income LANDSCAPE COMMITTEE REPORT Chairman Berube repot1ed 1. All non palm tree trimming will begin and will be completed in November 2. A motion was made by Member Lee, seconded by member Anter to approve a proposal to install boulders in the parking lot by the tennis courts, where shrubs had been removed. This motion was approved. 3. A motion by member Lee, seconded by member Khemlani was made to approve the annual overseeding in the Community. This motion was approved. 4. 62 Ocean Vista ~ a tree had to be removed do to roots-in-pipe issue. The Board approved a new 15gal tree to be planted. The owner will be given the option to install a larger tree with the owner paying the difference. Manager to follow up with owner. 5. Owner at 75 Ocean Vista has donated several sago palms which will be placed throughout the community. 6. Lagoon ~ the north lagoon was requested to have chemical tests to determine if green agley problems existed. None were found. The Board approved reimbursement in the amount of $114.00 to Mr. Berube for out of pocket costs for testing. 7. A motion was made by member Lee, seconded by member Anter to authorize the manager to sign and mail in the "opt out" notice regarding the use of gas leaf blowers within the City ofNewpot1 Beach. The labor cost to do cleaning without the leaf blower is prohibitive. MASTER CALENDAR No additional or changes were made. It was noted that amount of maintenance, especially plumbing will be required in October. CLUBHOUSE After a review, there was no fut1her action taken. MINUTES A motion was made by member Anter seconded by member Lee to accept the August 2011 meeting minutes. REPORT OF EXECUTIVE SESSION (September 2011) Following the regular scheduled meeting of the Board, an executive session was held with the following being reported to the membership: Review of delinquency repot1s Correspondence received from the Attorney and reviewed. Violation Correspondence FINANCIALS A motion was made by member Lee, seconded by member Anter to accept the August 2011 financial reports as presented. CURRENT BUSINESS Wood Repairs A report, including proposal, was submitted by Patscheck for some additional deck and dry rot repairs. It was reported that this would bring the large wood and deck proposal to almost complete. A motion was made by member Khemlani, seconded by member Anter to approve this proposal. This motion was approved. 75 Ocean Vista Owner had been submitted an invoice in the amount of $2200.00 as a result of additional, owner responsible, repairs that were found when dry rot repairs were made. According to the contractor the amount ofthe extra work amounted to $1,250. The Board authorized management to notify the homeowner of the reduced amount owed. 71 Ocean Vista As a result of multiple slab leaks this owner has opted to participate in the shared re- plumbing costs. A motion was made by member Lee seconded by member Anter to authorize the owner to proceed with the accepting of epoxy linning with the Association responsible for half of the cost. 15 Sea Cove A request was made by the owner to investigate needed repairs at the back soundwall gate to the owners property. Repairs are needed. Gutter Cleaning A motion was made by member Anter, seconded by member Khemlani to approve the proposal of Gale Force Pressure Washing for the annual gutter cleaning. Vendor also approved to provide doorhangers to residents for notification purposes. Plumbing -Area Drains PMC provided a proposal for the annual drain cleaning maintenance. A motion was made by member Lee, seconded by member Anter to approve this annual activity. It was noted that several additional locations will most likely be added. Electrical Holiday Lighting Repairs Peak Lighting submitted a proposal for suggested additions in the front to accommodate the holiday lighting, which last year had problems. Member Anter made a motion to approve with the condition that the vendor will be responsible for any additional call backs during the holiday light period. Mr. Lee seconded the motion and it was approved. Pool/Spa The Ocean Vista pool and spa heater will be turned off Oct 1 st. The clubhouse pool heater will be turned off Oct. 1st . The spa will continue to be heated. ARW Roof Billing ARW submitted an invoice in the amount of$39,919.25 for various pending outstanding bills dating back to November 2009. Payment had been withheld for various reasons. The Board voted to clear up the entire roof account. A motion was made by member Khemlani, seconded by member Anter to approve management to attempt to negotiate a settlement with AR W staring with a 25% reduction if paid in full within 10 days and go from there. a. 8 Sea Cove -the ARW bill for roof tile repairs due to the fire was determined to be accurate. The bill sent to the owner in the amount of$I,600.00 remains unpaid. HOMEOWNERS OPEN FORUM No Owners present NEXT MEETING October, 2011 2:30 PM ADJOURNMENT There being no further business to come before the Board of Directors, the meeting was adjourned to executive session. \ ~, " , \. ) lIlI!N RECORDED MAIL TO: The Irvine Company SSO Newport Center Drive Newport Beach, California 92663 ATTENTION: Builder and· Eserow Service. Community Development Divi.ion BOOK l4088 PAGES l654 through l7l5 Recordinq Requested By FIRST AMERICAN TITIB INSURANCE CO. RECORDED IN OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA lO,l5AM JUNE 5, 1981 LEE A. BRANCH, County Recorder Above Space for Recorder', U.e Only DECLARAtION OF COVENANTS, CONDITIONS AND RESTRICTIONS Tract 9676 ORANGE COUNTY, CALIFORNIA Sea Ill.ad Table of Contents RECITALS " ARTICLE I -Definitions Section 1 -Applicable Voting Power. Se~tion 2 -Architectural Committee. Section 3 -Articles and Bylaw •. SectioD. 4 -A., •• ,mentl. Section 5 -A"ociation. Section 6 A"ociation Rule •. Section 7 -Board. Section 8 -City Section 9 -Common Area. . Section 10 -Common Expeoles. Section 11 -Community Facilities Section i2 -Condominium. Section 13 -Condominium Building Section 14 -Condominium Elements Section 1S -Condominium Plan Section 16 -Covered Property Section 17 -Development. Section 18 -Exhibit. Section 19 -Family Section 20 -Federal Agencies Section 21 -Final Subdivision Public Report. Section 22 -M8mber Section 23 -Mortgage Section 24 -Mortg_g.ee. Sec t ion 25 -" Owner. Section 26 -Phase. Section 27 -Project. Section 28 -Residence. Section 29 -Restricted Common Area Section 30 -Supplementary Declaration. Section 31 -Trustee. Section 32 -Unit R-l 1-1 " , 91/8-24-79 CC&R's BA62al-2 Island Lagoon Homeowners Association 286-91 (5-19-81) dau t' ,. I ARTICLE II -Koaber.hip Section Section Section Section Section Section Section I Membership 2 -Tran.fer . 3 -Voting Right •• 4 -CI ••• es of Voting Membership 5 -Special Voting Right. of Kember. Other Than Declarant 6 -Approval of All Kember ••.••. 7 -Approval by Each Cia •• of Member.. • • ARTICLE III -Covenant for K.in~enaace A ••• lament. Section Section Section· Section Section Section Section Section Section Section Section Section Section 1 -Creation of the Lien ~ Perlonal Obligation of A •••• 6meut. . . . 2 -Purpo.e of A •••• .-.ent.·. . . . . 3 -Regular AI.el..ent.. . • • • • • 4 -Capital t.provell:ent AII •• aunt •• S -~.e • .ment Allocation. 6 -Certificate of Par-ent 7 -Exempt Property. . . • 8 -Special A •••• mentl •. 9 -Cable Televi.ion Service A'I •• sment. 10 -Date of Commencement of aegular A •• es~nt •• 11 -No Oft.et. . • . .. 12 -Homestead W.i~er 13 -R~.erve •. ARTICLE IV -Nonpayment of AA,.lsaent. Section Section Section Section Section 1 -Delinquency 2 -Notic. of Lien : 3 -For.cloture Sale 4 -Curing of Default 5 Cu.ulative Remediel. '. . ARTICLE V -Architectural Control Section Section Sect ion Section Section Section 1 -Appointment of Architectural Committe. 2 -General Provi.ion. • • • • • 3 -Approval and Conformity of Plan •• 4 -Nonliability for Approval of Plans 5 -Appeal •••...•...••. 6 -Reconltruction After Destruction • ARTICLE VI -Dutie. and Power. of the A.sociation Section I -General Dutie. and Power. Section 2 -General L~itatioD. and Restrictions on the powers of the Board. Section 3 -!alociation Rulet Section 4 -Pledge of AA.es.ment Rights. ARTICLE VII -Repair and Kaintenance Section Section· Section Sect ion Section Section Section 1 -Repair and Kaintenance by A •• ociation 2 -Repair and Maintenance by Owner ...• 3 -Right of Aaloci.tion to Kaintain and Inleall 4 -Standardl for Kaintenance, Installation and Repair 5 -Right of Entry . • . . . • • • • . • . 6 -Kaintenance of Public utilities .... 7 -Assumption of Maintenance Obligations. 2-1 3-1 4-1 S-I 6-1 7-1 ~~~~~~~~(~iil~~~~ __ ~~~ 91/8-24-79 CC&R's Island Lagoon Homeowner. ~8ociation BA62a3-4 286-91 (3-6-81) ----.---. -~ .. ,. ---.----~ n ARTICLE VIII -Inaurance. , . Section Section Section Section Section Section Section Section Section Section Section 1 Type..... 2 -Waiver by Kember •• 3 Other Ineurance. • 4 _ Premium., Proceeds and Settlement. S -Annual Inlurance Review. • • • • • 6 Abandomaent of Replacement Cost Insurance 7 Federal Requ1r~ent8 • • • • • • • • • • 8 Tfuat...........········ 9.'-Individual Caeualty Ineurance Prohibited 10 -Rights of Owners to Insure 11 Required Waiver_ • • •••• . " ARTICLE IX neatruct1ou·ol Improvements. Section 1 Section 2 Section 3 Section 4 Section 5 Sectiou 6 Section 7 Section 8 Section 9 S.cti011 10 Section 11 Section 12 Section 13 Section 14 Section 15 Automatic Reconstruction • • Reconstruction Purauant to Meeting necil10n to Reconstruct; frocedure After Meeting Decil10n Not to Reconstruct; Procedure After Meetiq_ • • • • • • • • • • • • • • • • .. Certificaee of Intention to Reconstruct. Partition. • • • • • • • • • • • Compliance with Cond01llinilllll Plan Negotiations with Insurer. • • llapair of Unit.. .. • • • • • • • AIlendaeut of Cond01llinium Plan. • aeconatruction of Coaounity Facilitiee and ca..on Are.. • • • • • • • • • • . AvaUebility of Labor and Keterial • • Contracting for Reconstruction • • • • Seventy-live Percent (75%) Vote Required Co.t •. of Collecting Inaurance Proceed. .' ARttCLE X -Eminent Domain. • •• 1 -Definition of Taking .. ••. !- Section Section Section Section Section Section 2 Repre.entation by Board in 3 Avard for Cond01lliniua. • • Condemnation Procaeding Section Section Section 4 5 6 7 8 9 ARTICLE n Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 . , Inver.e Condemnation • • • Revival of Right to Partition. Avards for Memb~rs' Personal Property and Relocation Allowances. • • • • Notice to Members •••.••. Change of Condominium Interest Avard for Community Facilities u •• Restriction. Commercial Use Signe Nuisance • Temporary Structures Vehicle. • • • • . • An1mala. • • • • • • Oil and Kineral Rights Uneightly It~. Antennae Drainage • • • Garages. • • • Window Covers. California Vehicle Code. Single-Family ReSidential. Hard Surface Flooring. . . 8-1 9-1 10-1 11-1 ~~ (iii) ~9~1~/~8-~24~-·7~9~·C~C~&~R~'~.""""""""""""·I~S~1~a·n·d~La"g·o·o·n~H·o·me·o·wn"e·r·'''As''.·o·c·i~a·t~i·o~n~ BA62a5-6 286-91 (2-25-80) ARTIC1.E XlI Section 1 Section 2 Section 3 ARTICLE XlII Rights of Enjoyment • . • . ~mb.ra' Right of Enjoyment. Delegation of Use, Waiver of Use. -Eas.enta. Amendment to Eliminate Easements Nature of Easements. • • • • • • Section 1· Section 2 Section 3 Section 4 Section 5 Section 6 Certain Rights and Eaaament8 aeserved to neclarant Certain Easements for Owners • • • • Certain ea_ementa for Aaaociation. • Support, Settlement and Encroachment ARTICLE XlV -Anneutiou • . . . . . . . . . Sect1011 Section Section Section Section Section 1 -nevelopment of the Covered Property. 2 ADnu.tion Pursuant to Approval. • • 3 Suppl_.nt~ ..Declarationa • • • • • 4 Annexation Without Approval and Pursuant to General Plath • '0 • • • 5 Mergere or Consolidations. 6 Limitaeion Upon Annexation ARTICLE XV Right. of Lendera. • -. • • 1 Filing Notice; Noticee and Approvele 2 Priority of Mortgage Lien. 3 Curing Defaults. • •••• 4 a..ale....... ... 5 aelat1ou.hip with A8.e ••• ent Liena S.ction Section Section Secti;oD Section . Section Sect'1011 Section Section Section Section Section 6 Seventy-Five Percent (75Z) Vote of Firat Mortgageea • 7 Other Righte of Fir.t Mortgagee. • 8,-Kortaag ••• Furnishing Information. 9 -Ri8ht of Firat Refusal • • • • • 10 Conflict..........·.··· •• 11 Notice of Destruction' or Taking. • • • 12 Payment of Taze. or Premiums by first Mortgagees ARTICLE XVI -Effecta of Federal Program5 Section 1 Section 2 Section 3 FHA/VA • • • • • • • fHA/VA Approval. • • Regulatory Agreement •.• ' ... . . 12-1 13-1 14-1 15-1 16-1 ARTICLE XVII -Liaitation Upon the Right to Partition and Severance 17-1 Section 1 Section 2 Section 3 No Partition • • • • • • • No S.veranc. • • • • • • • Proceeda of Partition Sale ARtICLE XVIII -Protection of the Project From Liena. Section 1 Section 2 Section 3 Section 4 !asaci.tion to Defend Certain Actions. Pa,.eDt of Lien. • • • • • • • • OVnera to be Spocielly Asses.ed. Retmbursement by Certain Owners, (iv) 18-1 91/8-24-79 CC&R'. BA62a7-8 Island Lagoon Homeowners Association 286-91 (7-11-80) . ----.----_._--_. --_ ... _--- , --'/ ) ARTICLE XIX -General Provisions . . . • . . • . . . . . • . • .. 19-1 Section Section Section Section Section Section Section Section Section Section Section Section Section Section Section Section Section Section Section 1 -Enforcement. 2 -No Waiver. 3 -Cumulative Remedies. 4 -Severability 5 -Covenants to Run With the Land; Term 6 -~onstruction 7 -Singular Includes Plural 8 -Nuisance 9 -Attorneys' Fees. 10 -Notices. ~ 11 -Obligations of Declarant 12 -Effect of Declaration. 13 -Personal Covenant. '.' 14 -Nonliability of Officials. 15 -Enforcemmt of" Bonded Obligations. 16 -Leases • 17 -Construction By Declarant. 18 -Amendments 19 -Irvine Coast Country Club Indemnity. EXHIBITS: A -Initial Covered Property • J -"1.- BA62.9 B -Initial Community Facilities C -Annexation Area D -Common Sewer Line (v) s s an .. agoon omeowners SSOCla lon 286-91 (5-15-81) dau --,--~---.-----.. --.. -.--~---. 1 , I I I DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS Tract 9676 ORANGE COUNTY, CALIFORNIA THIS DECLARATION is made this .±.-dey of IJ-t::.~, (/1 gj , by The Irvine Company, a Michigan corporation. The Irv1~any: its successors sod assigns, shall hereafter be referred to &s "Declarantll or "Irvine". RECITALS A. Declarant 1s the fee owner of the real property described in Exhibit A to this Declaration, which shall be the initial Covered Property under this Declaration, and the real property which may from time to time be annexed pursuant to this Declaration and become a part of the Covered Property. This Declaration 1s being impo8ed by Declarant upon the Covered Property_ B. Declarant haa deemed it desirable to establish covenants, conditions snd restrictions upon the Covered Property and each and every portion thereof, which will constitute a general scheme for the management of the Covered Property,. and for the use. occupancy and enjoyment thereof. all for the purpose of enhanc·iDg and· protecting the value, deairabilityand attractiveness of the Covered Property and'enhancing the quality of life within the Covered Property. C. It i8 desirable for the efficient management of the Covered Property and the preservation of the value, deairability and attractivenesl of th~ Covered Property to create a corporation 'to which should be. delegated and asSigned the powers of managing the Covered Property, maintaining and administering the Commu- nity Facilities and the ComoD Area and administering and enforCing these cove- nants, conditions and restrictions "and collecting and disbursing funds pursuant to the asaesament and cbarges hereinafter created and referred to and to perform such.other acts .. shall generally benefit the Covered Property. D. Island Lagoon Homeowners AsSOCiation, a nonprofit mutual benefit corpo- ration, bas been incorporated under the lava of the State of california for the purpose of exercising the povers and functions aforesaid. All persons who purchase Residences within the real property designated as a Project in this Declaration sba1l be Owners as defined herein, and sball thereby automatically become Members of said Aaaociation and shall be subject to its powers and jurisdiction. In addition, the purchasers of Residences located on the other Proje.ct. annexed to the plan hereof pursuant to this Deciaration, while not OWner. within the first Project, shall also automatically become Members of said Aa.oc1&tion by virtue of certain Supplementary Declaratipns which Declarant intand_ to record covering certain lands of Declarant, more particularly descri- bed in this Declaration. Declarant intends that the Covered Property shall conaist of the re.1 property designated as a Project in this Declaration togetber with other Projects on other parcels of land on which Declarant intends to construct Residence.. OWners within each Project shall share ownership of that Project and said Aaaociation shall own certain Com=unity Facilities not contained within any parcel owned in common by the Members. Except as otherwise expressly provided in this Declaration, the rights, duties and obligations of all Members of said Association muBt be determined with regard to the entire membership of ~~~~~~~~C~&~R~.:-................... R_ .. l"I~.~a~n~'La~g~O~O~n~Ho~me~o~wn::e:r:.~~.~o~c~a~t~o~n~ BA62alQ-U 286-91 (2-2~80) said Asaociation and not just with regard to those Members who are Owners in any particular Project. The foregoing shall not require Declarant to annu any real property to the plan of this Declsration. E. Declarant will hereafter hold and convey title to all of the Covered Property subject to certain protective covenants, conditions and restrictions hereafter set forth. NOW, THEREFORE, Declarant hereby covenants, agrees and declares that all of its interest 8a the same mAy froll time to time appear in the Covered Property shall be beld and conveyed subject to the following covenants, conditions, restrictions and easements which are hereby declared to be for the benefit of said interest~ in the Covered Property, and the owners of said interests, their suece.asors and UlS1gns-. These covenants, conditions, restrictions and eaements shall run with .aid interests and .hall be binding upon all parti •• having or acquiring any right or title in said interests or any part thereof, and shall inure, to the. benefit of each owner thereof and are imposed upon said interests and every part thereof u a servitude in favor of each and every of said interes tl as the dominant tenement or tenements. 91/8-24-79 CC&R'. BA62a12' R-2 Island Lagoon Homeowners Association 286-91 (8-21-79) .) Section 6. "A.,ociation Rules" sh.ll mean rule! adopted by the A •• oci.tion pursuant to the Article hereof entitled "Duties and Pavers-of the A •• oci.ation". Section 7. ItBoard" shall mean the Board of Directors of the A •• oci.tioD • Section 8. "City" sh.ll mean and refer to the City of Newport Beach, California, a municipal corporation of the State of California. Section 9. IICommon Are.1I Ihall mean .11 portions of the Projects except the Units and, without limiting the generality of the foregoing, .pecific.lly includ- ing .11 structural projections within a Unit which .re required for the support of a Condominium Building, g •• , water, w.ate pipea, .11 lewera, all duct., chute., conduits, wire. and other utility in.tall.tion. of the atructure. wherever located (except the outlet. thereof when located within the Units), the land upon which the structurel are located, the aie .pace above these structures, all bearing walls, columnl, floors, the roof, the slab foundatiou, common stairways, window glasl and the like. Section 10. "Cou-an Expenses" shall mean and refer to the actual and estimated costs of: (a) maintenance, management, operation, repair and replacement of the Common Area, Community Facilities, and all other areas which are maintained by the AI.ociatioD; (b) unpaid Aa.e.saentl~ (c) maintenance by the A~lociation of areas within the public right-of-way of public streets in the vicinity of the Covered Property a. provided in this Declaration or pursuant to agreement I with the City; (d) costs of management and administration of the Association, including, but not limited to, ca.pensation paid by the Association to manasers, account- ants, attorneys and eaployees; (e) the cost. of utilitie., tralh pickup and dilpolal, gardening and other services which generally benefit and enhance the value and desirability of the Covered Property including, without limitation, the cost of operating and maintaining a private sewer system; (f) the cost. of fir., c.lualty, liability, workmen'. compensation and other inlurance cover ina the Community Facilities and the Common Area; (g) the costs of any other insurance obtained by the Asaociation; (h) realonable relerves .s deemed appropriate by the Board; (i) the costs of bonding of the memberl of the Board, any profeslional managing agent or any other person handling the funds of the A.sociation; (j) tax •• paid by tne Association; (k) amounts paid by the ASloeiation for dilcharge of any lien or encum- brance levied against the Community Facilitiel or Common Area or portions thereof; (1) eDits incurred by the Architectural Committee Or other committees establi.hed by the Board; (m) coats of security guards, guard gates and/or key gates at entrances to the Covered Property froa the public streetl, and any other security syst~ or services inltalled by or contracted for by the Alsociatl0n; (n) COlt of maintaining and administering the water quality progrma approved by the City, which includes, ~vithout limitation, the cleaning and maintenance of the parking and street areas, the grease interceptorl or other devices which have been installed to trap runoff debris: 91/8-24-79' CC&R'. BA62al5-16 1-2 Island Lagoon Homeowners Association 286-91 (3-6-81) (0) other expenses incurred by the Association for any reason whatsoever in connection with the Community Facilities and the Common Area, or the costs of any other item or items designated by this Declaration, the Articles, Bylaws or Association Rules, or in furtherance of the purposes of the Association or in the discharge of any duties or powers of the Association. Section 11. "CotImalnity Facilities" shall mean all real property, and the improve- ments thereon, owned or leased from tUne to t~e by the Association for the common use and enjoyment of the Members, including without limitation any of the following: guard gates and key gates, private storm drains, private streets, private utilities, private parks, open space&, trails and slopes. Upon the date of the first conveyance of a Residence to an Owner, the Community Facilities shall be that certain property described on Exhibit B. Any real property denomi- nated a_s "Community Facilities" in a Supplementary Declaration shall be conveyed to the Association prior to or concurrently with the first conveyance of a Residence located ~ithin the real property which is annexed to the coverage hereof by such Supplem~ntary Declaration. Declarant shall convey the Community Facilities to the Association free of all liens and encumbrances except current real property taxes (which taxes shall be prorated as of the date of conveyance), title exceptions of record and the covenants, conditions, reservations and restrictions contained in this Declaration and the instrument which conveys the C~nity Facilitie. to the A.sociation. , Section 12. "Condominium" shall mean a fractional undivided interest in common with the other Owners within a Project in the Common Area of such Project, together with a separate interest in a Unit and all right, title and interest appurtenant thereto. Sucp fractional undivided interest in common of each Owner shall be a. described in the in.trument conveying a Condominium to such Owner and sh.ll not be changed except as provided in the Section entitled "Amendment of Condominium Plan" of the Article hereof entitled "Destruction of Improvements" and the Section entitled "Change of Condominium Interest" of the Article hereof entitled ''!minent Doatain. II Section 13. IICondominium Building" shall mean a separ.te building containing one or more Units or elements of Unit •. Section 14. IICondcainil.D Elements" sn.ll mean the foll.oving element. of a Unit: (a) .hall be "Deck." ~hall mean that portion of a Unit designed for use a. a ,deck and identified on the Condominium Plan by a Unit number .nd the letter "011 , (b) "!ntryll sh.ll'mean that portion of a Unit designed for use as .n entry and shall be identified on the Condominium Plan by a Unit number and ·the letter "E", and sh.ll consist of the contiguous surfaces of any COmmon Are. walla ot' fences, the surfaces of the wall. of contiguous Condominium Buildings, with the upper and lower l~it. being as shown on the Condominium Plan and the spsce and the ·land encomp.ssed by all of the foregoing. In the event that the contiguous Common Area land or improvements do not completely enclo.e the Entry Element, the remaining boundaries of the airspace contained within said Entry Element shall be as delineated on the CondominiUm Plan. (c) "Carage" shall mean that portion of a Unit designed for use as a garage, and shall be identified on the Condominium Plan by a Unit number and the letter "Gil and shall consist of the interior undecorated surfaces of the perime- ter wall., floors, ceiling., windows (if any) and doors of each Garage element and the space encompassed thereby, including the outlets of all utility installa- tions therein. I (d) "Yard tl shall mean that portion of a Unit designed for use as a yard recreational, gardening and/or landscaping area and shall'be ~dentified on the Condominium Plan by a Unit number and the letter "yn and shall consist of the contiguous lurfaces of any Common Area walls or fences, the surfaces of the walls of contiguous CondOMinium Building., with the upper and lover horizontial boun- daries of the Yard element being plane! above and below the surface of the land as shown on the Condominium Plan, and the space and the land encompaseed by alt of the foregoing. In the event that the contiguous Common Area land or ~prove­ ments does not completely enclose the Ysrd element, the ramaining boundaries of the airspace contained within said Yard element shall b. as delineated on the Condominium Plan. 91/8-24-79 CC&R'. BA62.17-18 1-3 Island Lagoon Homeowner! Association 286-91 (3-6-81) · (.) 1IB. •• ident.ial Element" shall mean that portion of a Unit d.signed for u •• a. a re.idence. and shall be identified on the Condominium Plan by a Unit number only and shall consi.t of the i~terior undecorated surfaces of the perim- eter vall., -floor., ceilings, windows and doors of each Re.idential Element and the .pace encampa •• ed thereby, including the outlets of all utility installation. therein and .lso including the interior surfaces of the firebox of each fireplace extending from the floor to the top of each fireplace. if any, and the space encompa.sed thereby, which adjoins any Residential Element. Section 15. "Condominild Plan" shall mean each of thOle certain condominium plans ~ecorded by Declarant in the Office of the County Recorder of Orange County, California for the Pr.ojectl and any aen.dmentl thereto. In interpreting deeds, le.ses, declarations and plana, the exi.ting physical boundaries of a Unit con.tructed in substantial accordance with the Condominium Plan .ball be conclu.ively presumed to be its boundariel rather than the descrip- tion expr~ •• ed in the 4eed, lease, declaration or plan,.regardle •• of settling or lateral movement of the buildfng and regardless of minor variances between boundaries as shown on the plan or in tbe deed, lea.e. or declaration and tho.e of the building al con.tructed. Section 16. ItCovered P1:operty"' sh.ll mean and refer to all the real property de.cribed on Exhibit A hereto and. sub.equent to the annexation thereof pursuant to the Article of this Declaration entitled "Annexations", any real property which may become subject to this Declaration. Section 17. ItDevelopment" .hall mean and refer to the real property de.cribed on Exhibit. A and C. Section 18. IIExhibit lt Iball mean and refer to those documents so de.ignated herein ana attached hereto and each of .uch Exhibit. is by thi. reference incorporated in tbi. Declaration. ~ additional property ia annexed purluant to the Article entitled "Annuationa ll of thi. Declaration, exhibit •• imilar to the exhibits attached to thi. Declaration may be attached to .uch Supplementary Declarations pertaining to the annexed property, and eacb of such exhibit. shall thereby be incorporated in thil Declaration. Section 19. "rmil,." Ihall mean one or more per,oDs related to each other by blood, marriage, or legal adoption, or a group of not more than tbree person. not all 10 related, together with hi. or their dome.tic servants, maintaining a common houlehold in a Relidence. Section 20. IIFederal Agenciea u shall mean and refer to collectively one or more of the following agencie. and the following letter de.igaation for such agenciel shall mean and refer to relpectively the agency specified within the parentheses following luch letter delignation: FHA (Federal Hou.ing Adminis- tration), FaLKC (Federal Home Loan Mortgage Corporation ), FNKA (Federal National Mortgale AI.ociation), GNHA (Government National Mortgage A •• ociation), VA (Veteran. Administration). Section 21. "Final Sub4ivi.ion Public Report ll shall refer to that report i:uued by the Department of Real Eltate of the State of California purluant to Section 11018.2 of the California BUlinel1 and Professiona Code or any .imilar statute hereafter enacted. Section 22. uMember ll .hall mean and refer to every person or entity wbo qualifies for memberlhip pur.uant to the Article of this Declaration entitled l'MembershipllJ including Declarant '0 long .a Declarant qualifies for member.hip pursuant to said Art ic Ie. Section 23. "Mortgage ll shall mean and refer to any duly recorded mortgage or deed of trust encumbering a Residence. A IIFirst Mortgage" shall refer to a Mortgage which has priority over any other Mortgage encumbering a specific Residence. 91/8-24-79 CC&R'. BA62a19-20 1-4 Island Lagoon Homeowners Association 286-91 0-6-81) Section 2~. "Mortgagee ll shall mean and refer to the mortgagee or beneficiary under any Mortgage. A "First Mortgagee" shall mean the holder of a Mortgage that has priority over any other Mortga&e encumbering a Residence. Section 25. "Owner'l shall mean and refer to on.e or more persons or entities who are alone or collectively the record owner of a fee simple title to a Residence, including Declarant, or the vendee under an installment land sales contract, but excluding those having any such interest merely as security for the performance of an obligation. If a Residence is leased by Declarant for a term in excess of twenty (20) years and the lease or memorandum thereof is recorded, the lessee or transferee of the leasehold interest and not the Declarant shall be deemed to be thOe Owner. If fl!!"e title to a Residence is owned other than by Declarant, the Owner of the fee title and not the lessee of such Residence shall be deemed the Owner regardless of the term of the lease. Section 26. "Pha~e" shall mean and refer to each increment of the Covered Property on which the~Department of Real Estate of the State of California has issued a Final S~bdivision Public Report. Section 27. "Project" shall mean each portion of the Covered Property for which Declarant records a separate Condominium Plan in the office of· the County Recorder of Orange County, California, and which Declarant designates as a Project in this Declaration or in a Supplementary Declaration. The real property and all Lnprove- ments constructed thereo~ known as Lots 4, ; and 15 of·Tract 9676 as per map filed in Book 482, Pages 1 to 6 incluaive, of Miscellaneous Maps in the office of the County Recorder of Oran~e ~oun~y, California is hereby designated as a Project. Section 28. "Residencell shall mean and'refer to a Condominium and shall spe- cifically not include any Community Facilities. Section 29. "Restricted COtI:!1IIon Area" shall mean those portions of the COmm<)n Area which, subject to the rights of the ASlociation and Declarant, are reserved for the exclulive ule of the ~ers of particular Units within th~ Project des- ignated tn thi~ Declaration or a Project designated in a Supplementary Declara- tida. The Restricted Common Area and the Units, the Owners of which shall be entitled to such exclusive use thereof, are identified on the Condominium Plan as followl: (a) "Driveway" ,hall be identified by the letter "R", the unit number, and the letter "Oil j (b) "Side Yard" (also referred to herein as "Coanon Area Yard") shall be identified by· the letter IIR", the Unit number J and the letters IlSyn, and is reserv.d for the exclusive use of the Owner of a particular Unit in the Project to be delignated in the 'Supplementary Declaration covering the adjoining prop- erty. ·The Unit number within such adjacen·t Project is shown on the Condominium Plan,,· The COD!lOn Area Yard shall be used for yard recreational, gardening and/or land'caping area to the same extent a. a Yard Cdhd~minium Element. Section 30. "Supplementary Declarationll shall mean those certain declarations of covenants, condition., and restrictions or similar instruments I annexing additional property extending the plan of this Declaration to such additional property al provided in the Article of this Declaration entitled "Annexations". Section 31. "Trulteell .hall mean and refer to the insurance trustee as more fully described in the Article hereof entitled "In.urance." Section 32. "Unit" .hall mean the element of a Condominium not owned in common with the Owner. of other Condominium. in a Project aad sball coe.i.t of a Reli- denti.l Element together with one or more Condominium Elements set forth in this Article. Each Unit shall be identified on the Condominium Plan with a separate number. 91/8-24-79 CC&R'. BA62a21-22 1-5 Island Lagoon Homeowners A •• ociation 'l86-Ql (~-I~-Al' " •• , . --.. _ ... ----------------_.-._._, , r ) ARTICLE II IlEllBERSHIP Section 1 -Membership. Every Owner 'hall be a Member and no Owner aball h.ve ~e than one (1) member.hip. The te~ and provisions set forth in this Declar- ation, which are binding upon all Owners are Qot exclusive, as Owners .hall, in addition, be subject to the te~ and provisions of the Articles, Bylaws and AI.oeiation Rules to the extent the provisions thereof are not in conflict with t.his Declaration. Membership of OWners shall be appurtenant to .ad may not be separated from the intereat of such Owner in any Re.ide~ce. OWnerahip of 4 Residence shall be the lole qualification for member.hip. Section 2 -Transfer. The membership held by any Owner Ih.ll not be tran.fer- red, pledged or alienated in any way, except that such membership ,hall automati- cally be tran.ferred "to the transferee of the interest of an Owner required for membership. Any attempt to make a prohibited tranafer is void and will not be reflected upon the books and record. of the Association. The Association shall have the right to record the transfer upon the books of the Association without any further .ction or cou.ent by the tr.nsferring OWner. Section 3 -Voting Risht.. "An Owner's right to vote shall ves~t immedi.tely upon the d.te Regular Aa.e.-=entl c~nce upon such Owner's Residence a. provided in thi. Declaration. All voting rights shall be subject to the restrictions and limitation. provided herein and in the Articles t Bylaws and Association Rulea. Section 4 -CI.".s of Votial MemberShip. The Association shall have two (2) classes of voting membership. 'Cla •• A. Claa. A Members .h.ll be .11 OWners with the exception of the Declarant -for aa long aa there i •• CIa •• B membership. CIa •• A Members shall be entitled to one (1) vote for each Reaidence in which they hold the intereat r.quired for membership. When more tban one person own8 a portion of the inter •• t in • Residence required for membership, eack such person .hall be a Member and the vote for auch Residence sball be exercised .s they .. ong th~elve. determine. but in no event Ihall more than one (1) CIa •• A vote b. c •• t with respect to any Re.idence. The A •• ociation shall not be required to reco;nize the vote or written a.sent of any such co-owner except the vote or written •••• nt of the co-Owner de.ignated in • writing executed by all of .uch co-Owner. and delivered to the Association. CIa •• B. The Cl.a. B Member shall be Decl.rant. The Class B Member shall be entitled to three (3) votes for each Residence in which it holds the interelt required for membership; provided that the Class B membership shall forever cea.e and be converted to Class A Membership on the happening of one of the following eventl, whichever occur. earlier: <a) When the total vote. outstanding in the Class A Membership equals the tot.l vote. out.tanding in the CI •• s B Membership; (b) The l.cond anniversary of the original iS8uance of the most recently baued Fin.lFSubdivi.ion Public Report for a Phase of the Covered .. Property, or (c) Th. date of the fourth (4th) anniversary of the original issuance of the Final Subdivision Public Report for the first Phase of the multiphase development. Section 5 -Special Voting Rights of Members Other Than Declarant. Notwith- standing the pravi.ions of this Article, from the first election of the Board, and thereafter for so long a. a majority of the voting power of the Association resides in the Declarant, or so long as there are two outstanding classes of membership in the A8sociation, not le88 than twenty percent (20%) of the director. on the Board shall have been elected SOlely by the votes of Members other than Declarant. 91/8-24-79 CC&R'. BA62a23-24 2-1 Island Lagoon Homeowners Association 286-91 (3-6-81) I I ! ~( Section 7 -Approval of All Members. Unless elsewhere otherwise specifically provided 1n this Declaration, any provision of this Declaration which requires the vote or written assent. of a specified majority of the voting power of the Association or any class or classes of membership shall be deemed satisfied by the following: <a> The vote in person or by proxy of the specified percentage of all of the votes which are entitled to be cast by the entire m~bersbip of the Association. Said vote shall be at meeting duly called and noticed pursuant to the prOVisions of the Bylaws dealing with annual or special meetings of the Members. (b) Written conseuts signed by the specified percentage of all of the votes which are entitled to be cast by the entire membership of the Association. Said vote by written consent shall be solicited pursuant to the procedures provided in the Bylaws. Section 8 -Approval by Each Class of Members, Except for the Section entitled "Enforcement of Ronded Obligational! of the Article entitled ltGeneral Condition.1I of this Declaration, and as long as there i. a Clas. B membership, any provi4ion of this Declaration which expressly require. the approval of a specified per- centage of the voting power of the Association before being undertaken, shall require the approval of said specified percentage of each of tbe Class A and Claas B meaberahip. 91/8-24-79 CC&R'. BA62.25 2-2 Island Lagoon Homeowners Association 286-91 (7-11-80) ."'l I () ARTICLE III COVENANT FOR !IAlIITEliANCE ASSESSMENTS Section 1 -Creation of the Lien and Personal Obligation of Assessments. Each OWner including the Declarant to tne extent Declarant 18 an OWner as defined herein, of ·any Residence by acceptance of a deed or other conveyanca, creating in such Owner the intereat required to he deemed an Owner, whether or not it ahall be 80 expressed in any Buch deed or other conveyance, 1s deemed to covenant and agree to pay to the Association: Regular Aaae881Uuts, Special AsseSBlIlents, Capital Lmpravement Assessments, Reconstruction Assesaments, and cable Television Service Assessments, 1f applicable, such Aa.ssamants to be fixed, established and collected from time to time as provided in this Declaration. The Assessments, together with interest thereon, late cbar8.8~ attorneys' feea and court costs, and other costa of collection thereof, aa heretnafter prOVided, shall be a continuing lien upon ·the Residence againat which each sw:h !asessmene is made. Each such Aasesament, together with such interest, late ehargea, coats and attorney.~ fees. shall also be the personal obligation of the OWner of 6ucb Residence at the tiDe when the Assesament becames due. The personal obligation shall not pa •• to the successors in title of an OWner unless ezpreasly assumed by such succ ... ora. Sectiou 2 -Purpoee of Uee8&lHnts. The !aae •• enta levied by the Mlociation shall ba used exclusively for the purpose. of promoting the recreation, health, safety and welfare of the Members, the management of the Covered Property, eDhancing the quality of life in the Covered Property, and the value of the Covered Property including, without It=1tation. the ~rovea.nt and maintenance of the Covered Property,_ I.rvice. and faciliti .. devoted to this purpose and related to the use and euj oyaent of the C01DDlUl11ty Facilitie. and Col:lllaOn Area, or in furtherance of any other duty or power of the Alaoci.tion. Section 3 -Ra8ular Aoaeaaments. Not later than sixtr (60) dar" prior to the beginning of e.ch fiscal year, the Board shall distribute to each Kamber a pro forma operating atatuant or budget for the upcoming fi.cal year which .hall, among other things, .stimate the total Cammon Expenae. to be incurred for luch fiscal rear. The Baard .bal.l at that tirla: determine tha _aunt of the Regular A.asa.lIlUnt to be. paid br oach lIamher. Each !!amber .bal.l thereafter par to the Aslociation hi_ Regular Asee.ament in inetallment. as establiabed by the Board. Each such 1n8tallllent .hall be due and payable on a data .. atabUshed by the aoard in the written IlOtil:. sent to Kambert.. In the went the Board .shall determine that the eatt.ate of total charges tor the current year is, or vill become inadequate to meet all Common Expenaes for any reaBoD, it shall then immediately determine the approximate amount of such inadequacy and isaue a supplemental e.at1Jlate of the CoIllllOU Expenses and determine the ravised amount of Regular la.saRent againat. each Kember, and the data or dates when due. The Regular Aasea.ment& for the fiscal year following the conveyance of the first Residence by Declarant shall be the amount as set forth in the originally issued Final SubdiviSion Public Report for such first conveyance. After the Association'. first fiscal year of operation, it shall not fmpose a Regular Aa8 •• ~Dt which is increaaed more than the greater of (l) twenty percent (20%) over the amount of the Regular A.a.es .... ent in the 1lIImediatelr preceding fiscal year, or (11) the percentage increase 8S compared with the previous fiscal year iD. the. U.S. Bureau of Labor Statutics, Loa Angeles-Long Beach-Anaheim, Consumer Price Index for all Urban Consumers" or any similar index substituted therefor, without the vote or written assent of a majority of the Applicable Voting Paver. Section 4 -Capital Improvement Assesa-ments. In addition to the Regular Asaessmene&, the Aasociation may levy in any calendar year, a capital Improve- ment Aalessment applicable to that year only, for the purpole of defraying, in whole or in part, the cost of any construction or replacement (other than due to destruction) of a described capital improvement upon the Common Area or Community Facilities to the extent -the same i8 not covered by the provisions affecting Reconstruction Assessments in the Article hereof entitled '~estruction 3-1 ,~~~~~~~~~~~ 91/8-24-79 CC&R'a Island Lagoon Homeowners Association BA62a28-29 286-91 (7-11-80) -----. --.-----------:--.. --.----.. of Improvements", including the necessary fixture. and peraonal property related thereto. The Association shall not impose a Capital Lmprovement A.ses~ent, the total amount 9f which exceeds five percent (5%) of the estimated Common Expenses, a. set forth in the Section of this Article entitled "Regular Assess- ments ll , without the approval of a majority of the Applicable Voting Power. A:ny reserves collected by the Association for the future maintenance and repair of the Community Facilities and Common Area, or any portion thereof, shall not be included in determining said annual capital ~provement limitation. All amounts collected as Capital Improvement Assessments may only be uled for capital improvements and shall be depo.ited by the Board in a separate bank account to be held in trust for such purposea. Said funds shall not be commingled with any other funds of_the A.sociation and shall be deemed a contribution to the capital account of the A.sociation by the Members. Section 5 -Assessment Allocation. Regular .nd Capital Improvement Asses~ents and Reconstruction A •• e.aments levied in the event of de.truction to Community Facilities only or Common Area other than Condominium Buildings shall be fixed at .n equal amount for each Re.idence and may be collected at intervals .elected by the Board. Recon.truction A •• esaments for a destruction of Condominium Buildings shall be determined for each affected Residence by multiplying the total amount required to be collected from the Affected Owner. pursuant to the Article hereof entitled "Destruction of Improvements ll by a fractfon, the denominator of which is the total square feet of living area for all Residence. within the Project in which recon.truction i. undertak"en; and the numerator of which i. the total square feet of living area of the appropriate Residence for which such Recon.truction A.sessment i. being determined. Section 6 -Certificate of Payment. The A •• ociation ,hall, upon demand, furni.h to any Member liable for A.ses.ments, ~ certificate in writing signed by an officer or authorized agent of the A.sociatioD, .ettins forth whether the A •• e.s-entl aD a -.pecified Re.idence have been paid, and the .mount of delin- quency. if any. A rea.onable charge not to exceed Fifteen Dollars ($15.00) may be collected by the Board for the il.uance of the.e certificate.. Such certifi- cate •• hall b. prima facie evidence of payment of any AI.Se'dent therein stated to have been paid. Section 7 -Exempt Property. All properties dedicated to .nd accepted by, or otherwise owned or acquired by. a public authority shall be exempt from the ASlessments created herein. Section 8 -Special A •• e.Stlent.. Special As.el.mentl shall be levied by the Board againlt a Re.idence to re~burse the A.sociation for: (a) COle. incurred. in bringing an Owner and hi. Residence into compliance with the provi.ionl of this Declaration, the Article., the Bylaws or A •• ociation Rule.; (b) an1 other charge de.ignated a. a Special A'les~ent in this Declaration, the Article., Bylaw. or Association Rule'i and (c) attoroey.' fee., interest and other charge. relating thereto a. provided in tbi. Declaration. In the event the A •• ociation undertake. to provide materials or services which benefit individual Relidencel and which can be accepted or not by individual Owners, such .•• tree trimming, luch Owners in accepting such materials or service. agree that the COlts thereof .hall be a Special As.es~ent. In the event & Special A •• ea.-ent i. to b. levied against all Residence. unle •• other- wiae set fort~ herein, .aid Special A.ses.mentl shall be fixed at an equal amount for each Residence. 91/8-24-79 CC&R'. BA62bl-2 3-2 Island Lagoon Homeowners A.soctation 286-91 (3-6-81) .~ ) Section 9 -Cable Television Service Assessment. In the event the Board elects to contract for cable television service, Gable Television Service Assesaments shall be leVied by the Board againat the Owners who have subscribed with the Aasociat1on.for such service. In such circumstances, the cable Television Service Assessment shall commence as to such Owner on the first day of the month follow- ing the month in which he 80 subscribes and shall continue against such Owner and any subsequent transferee of his Residence until the first day of the month follOwing the month in which. any such Owner or transferee no'tifies the Board in writing that be no longer wishes to subscribe to such service, or the month in which the Board elects to cancel the Association's contract for cable television service. Section 10 -Date of Commencement of Regular Asses~nts. The Regular Assess- ments shall commence as to all Residences within a Phase on the first day of the month following the first conveyance of a Residence within such-Phase. In. the event the amount budgeted to meet Common Expenses for the then current year proves to be excessive in light of the actual Common Expenses, the Board in its discretion may either reduce the amount of tbe Regular Assessment or may abate collection of Regular Assesaments a8 it deems appropriate. Until such time as the Class B Membership has cealed and been converted into Class A Membership, in no event shall a reduction in the amount or the abatement in the collection of Regular Assessmenta pursuant to this Section r~sult in a quantity or quality of services diminished froa those upon which the Common Expense budget for the year in question is based. Section 11 ~ No Offs.ts. All Assessments snall ba payable in th. amount speci- fied by the Assessment and no offsets againlt such amount shall be permitted for any reason, including, without ltmdtation, a claim that (1) the Association 11 not properly exerCising its duties and powers as provided in this Declaration; (11) • Kamber has made or elects to uke no use of tbe Co_on Ar~ or COumunity 'acilities; or (iii) any conatruction or maintenance performed purauant to the Section entitled. "Assumption of Maintenance Obligations" of the Article entitled IlRepair and KaintenanceU of this Declaration shall in _y way poatpone Aaeesements or entitle a Meuber to claim any such offset or reduction. Section 12 -Homestead Waiver. Each Owner, to the extent permitted by law, does hereby waive, to the -extent of any lieu created pu.r.euant to thia Declaration, whether such liens are now in existence or are created· at auy time in the future, the benefit of any homestead or exemption lava of the State of California now in effect, ·or in effect fro. time to time hereafter. Section 13 -Reserves. The Regular Assesaments shall include reasonable amounts as determined by the Board collected as reserves for the future periodic mainte- nance, repair or replacement of all or a portion of the Community Facilities and Common Area, or any other purpose as determined by the Board. All amounts collected &8 reserves, whether pursuant to this Section or otherwise, shall be deposited by the Board in a separate bank account to b. held in trust for tbe purposes for which they are collected and are to be segregated from and not commingled with any other funds of the Association. Such reserves shall be deemed a contribution to the capital account of the Association by the Members. 91/8-24-79 CC&R's BA62b3-4 3-3 Island Lagoon Homeowners Association 286-91 (2-25-80) ., ARTICLE IV NONPAYMENT OF ASSESSMENTS Section 1 -Delinquency. Any A8ses~ent provided for in this Declaration which is not paid when due shall be delinquent on said date (the "delinquency datel!). If any such Assessment is not paid within thirty (30) days after delivery of notice of such delinquency from the Association, a late charge of Ten Dollars ($10.00) shall be levied and the Assessment shall bear interest from the delin- quency date at the highest rate of interest authorized under California law. The Association may, at its option, and without waiving the right to judicially foreclose its lien agaiost the Residence, pursue any available remedies, includ- ing, without limitatioD, bringing an action at law against the Member personally obligated to pay the same, and/or upon compliance with the notice provisions set forth in the Section entitled "Notice of Lien" of this Article to foreclose the lien against the Residence under the power of sale granted herein. If action is commenced, there shall be added to the amount of such Assessment the late charge, interest, the COlts of, such action, and attorneys' fees incurred in connection with such action; and in the event a judgment is obtained, such judgment shall include said late charge, interest and attorneys' fees, together with the costs of action. Each Member vests in the Association or its a.signs, the right and power to bring aLL actions at l&~ or any lien foreclosure against .uch Member or other Members for the collection of such delinquent As.essments. Section 2 -Notice of Lien. No action shall be brought to foreclose said Assessment lien or to proceed under the power of sale herein provided until thirty (30) days after the date's notice of claim of lien is deposited in the United States mail, certified or registered, poltage prepaid, to the Owner of said Residence, and a copy thereof is recorded by the Association in the office of the County Recorder in which County the properties are located; .aid notice of claim of lien must recite a good and sufficient legal description of any such Residence, the record Owner or reputed Owner thereof, the «mount claimed [which shall include interest on the unpaid Asses~ent at the highest rate of interelt authorized under California Law, a late charge of Ten Dollars ($10.00), plu. rea.onable attorney.' fee~ and expenses of collection in ~onnection with the debt secured by laid lien}, and the name and address of the claimant. Section 3 -Foreclosure Sale. S"aid Assessment lien may be enforced by sale by the As.ociation, it. attorney or any other person authorized by the Board to make the sale after failure of the Owner to make the payments specified in the notice of claim of lien within said thirty (30) day period. Any such sale provided for above is to be conducted in accordance with the provisions of Sections 2924, 2924b, 2924c, 2924f, 2924g and 2924h of the Civil Code of the State of California as said statute. may from time to time be amended, applicable to the exerci.e of powers of sale in mortgages and deeds of trust, or in any other manner permitted or provided by law. The A,sociation, through its duly authorized agents, shall have the power to bid on the Residence, using Associa- tion funds, or fund. borrowed for .uch purpose, at the sale, and to acquire and hold, lease, mortgage and convey ~he same. Section 4 -Curing of Default. Upon the timely payment or other satisfaction of: (a) all delinquent A.sel.ments specified in the notice of claim of lien, (b) all other A •• e.sments which have become due and payable with respect to the Residence a. to which luch notice of claim of lien was recorded, and (c) inter- est, late chargel , attorneys' fees and other costs of collection pursuant to this Declaration and the notice of claim of lien which have accrued, officers of the ASlociation or any other person. designated by Board are hereby authorized to file or record, a. the cas. may be, an appropriate release of such notice" upon payment by the defaulting Owner of a fee, to be determined by the Association, but not to exceed Twenty-five Dollars ($25.00) to cover the costs of preparing and filing or recording such release. Section 5 -Cumulative Remedies. The Assessment lien and the rights to fore- closure and sale thereunder shall be in addition to and not in substitution for all other rights and r~edies which the Association and it. assign. may have hereunder and by law, including a suit to recover a money judgment for unpaid Assessments, as above provided. 91/8-24-79 CC&R'. BA62b5-6 4-1 .. -. --~-"----."--~"-----~---~--,,-. Island Lagoon Homeowners Association 286-91 (3-6-81) . ',./ ) r') ( ARTICLE V ARCHITECTURAL CONTROL Section 1. -Appointment of Architectural Committee. (.) The Architeceural Committee shall consist of Dot Ie •• than three (3) nor more than five (5) persona a. fixed from time to tLme by resolution of the Board. '. (b) Irvine ahall initially appoint all of the members of the Architectural Committee and shall retain the right to appoint, augment or replace .11 members of the Architectural Committee until the first anniversary of the i.suance of the original Final Subdivision Public Report (hereinafter tlPirlt Final Subdivi- sion Public Report").£or the first ph.se of the subdivision which is de.cribed on Exhibit A. Irvine relerves the power to appoint the majority of the members of the Committee until ninety. percent (90%) of the Residence. within th~ Develop- ment have been conveyed by the Declarant or until the fifth &nniver.ary of the issuance of .the Fir.t Fina~ Subdiviaion Public aeport, whichever occurs earlier. (c) After one (1) y.ar fallowing the i.luence of the First Final Subdivi- sion Public Report, the Board .hall have the right but not the obligation to appoint one (1) member to the Architectural Com.ittee until ninety percent (90%) of the ie.idencel within the Developaent have been conveyed by Declarant, or until the fifth ~aiver.ary of the i •• uence of the Firlt Final Subdivi.ion Public Report, whichever occur. earlier. After the fifth anniver.ary of the i •• uance of the First Final Subdivilioa Public Report, or when ninety percent (90%) of the Residences within the Development have been conveyed by Declarant, whichever occurs earlier, the right to appoint, augment or replace all ~mber. of the Architectural Coaaittee ahall automatic.lly be tr.nlferred to the Board. (d) Per. on. appointed by the Board to the Architectural Committee must be Member.; however, perlon •• ppointed by Declarant to the Architectural Co=-ittee need not be M~berl, in Declarant t • sale di.cretion. Section 2 -General Provilion •• (a-> The Architectural. C~ttee may e.tabliah reaaonable procedur.l rules in connection with r.vi~ of plana and specification. including, without limita- tion, the n~ber of .eta of plan. to be .ubmitted; and say •••••• a fee not to exceed Fifty Dollar. ($SO.OO) per submission of pl.ns, however, the Archi- tectural Committee may delegate its plan review responsibilities to one or more members of such Architectural Committee. Upon such delegation, the approval or disapproval of plana and specificationa by such persons· shall be equivalent to approval or disapproval by the entire Architectural Committee. Unlea. any such rules are complied with, .uch plana and specifications shall be deemed not submitted. (b) The addrel. of the Architectural Committee shall be the principal office of the A •• ociation •• deaignated by the 80ard pursuant to the Bylaw •• Such address sh.ll be the place for the submittal of plana and specifications and the place where the current Architectural Standards shall be kept •• (c) The eatablishment of the Architectural Committee and the systems herein for architectural approval shall not be construed as changing any rights or restriction. upon owner. to mAintain, repair, .lter or modify or otherwi.e have control over the Residencel a. may otherwise be specified in this DeclaratioD, in the Bylaws or in any !asociation Rule •• (d) In the eVent the Architectural Committee fail. to approve or disap- prove such plana and specifications within thirty (30) days after the same have been duly submitted in accordance with any rules regarding such submission adopted by the Architectural Committee, such plans and specifications will be deemed approved. 91/8-24-79 CC&R'. BA62b7-8 5-1 Island Lagoon Homeowner. Association 286-91 (3-6-80 Section 3 -Approval and Conformity of Plans. No building, fence, wall, pool, spa, deck or other structure shall be commenced, erected or maintained upon the Covered Property, nor sball there be any addition to or change in the exterior of any Residence, structure or other improvement including, without limitation, the replacement of awnings 01' the parnting of exterior walls and fences, unless plans and specifications therefor have been submitted to and approved by the Architec- tural Committee. The Board shall, from time to tUne, adopt and promulgate Architectural Standards to be administered through the Architectural Committee. The Architectural Standards shall include among other things those restrictions and limitations upon the owners set forth below: (a) T~e limitations for the completion of the arChitectural improvements for which approval is required pursuant to the Architectural Standards; (b) Conformity of completed architectural ~provements to plans and specifications approved by the Architectural Committee; provided, however, as to purchasers and encumbrancers in good faith and for value, unlesa notice of noncompletion or nonconformance identifying the violating Residence and its OWner and specifying the reason for the notice, executed by the Architectural Committee, shall be filed of record in the Office of the County Recorder of Orange County, California, and given to such OWner within thirty (30) days of the expiration of the time limitation described in subsection (a) above, or unless legal proceedings sball have been instituted to enforce compliance or completion within said thirty (30) day period, the completed architectural improvements shall be deemed to be in compliance with plans and specifications approved by the Architectura.l Committee and in compliance with the Architectural Standards of the Association, but only with respect to purchaaers and encum- brancers in good faith and for value; and (c) Such other limitationa and restrictions as the Board in its reasonable discretion shall adopt, including, without l~itation, the regulation of the following: con.truction, reconatructipn, exterior addition, change or alteration to or maintenance of any building. structure, wall or fence, including, without limitation, the awnings or the nature, kind, shape, height, materials, exterior color and surface and location of .uch awning, dwelling. or atructure. Section 4 -Noaltabilltr for Approval of Plans. Plans and specifications are not approved for engineering design, and by approving luch plana and specifi- cation. neither th~Architectural Committee, the members thereof, the Associ- ation, the Membera, the Board nor Declarant aSlumes liability or respOnsibility therefor, or for any defect in any structure constructed from such plans and specifications. Section 5 -Appeal. In the event plans and specifications submitted to the Architectural Committee are disapproved thereby, the party or parties making such sub.ission may appeal in writing to the Board. The written request shall be received by the Board not more than thirty (30) days following the final decision of the Architectural Committee. The Board shall submit such request to the Architectural Committee for review, whoa~ ~tten recommendations will be submitted to the Board. Within forty-five (45) daya following receipt of the requeat for appeal, the Board shall render its written decision. The failure of the Board to render a decision within said forty-five (45) day period shall be deemed a decision in favor. of the appellant. Section 6 -Recon.truction After Destruction. The reconstruction after destruc- tion by caaualty or otherwise of any Residences which ia accomplished in substan- tial compliance with the Condominium Plan filed covering the portion of the Project in which auch Reaidence is situated shall not require compliance with the provisions of thia Article. Such reconstruction shall be conclusively deemed to be in subatantial compliance with such Condominium Plan if it ha. received the approval of the A.sociation. 91/8-24-79 CC&R. BA62b9-IO 5-2 Island Lagoon Komeowners Assoclatlon 286-91 (3-6-81) -~----~---~ ----.-.. ~.--~--c---~~~_"""._,.~_ -~--.--~.-----~---.-- - - . --------.-------- _./ ARTICLEvt DUTIES AND POWERS OF THE ASSOCIATION Section 1 -General Duties and Powers. In addition to the duties and powers enumerated in its Articles and Bylaws, or elsewhere provided for herein, and without limiting tbe generality thereof, the duties and powers of the Board shall normally include, but shall not be limited, to tbe following: (a) enforce the provisions of this Declaration, the Articles, Bylaws, Association Rules, and other instruments for the ownership, management and control of the Covered Property by appropriate means and carry out the obliga- tions of the Association hereunder which includes without limitation, the maintenance and-management of the following: (i) all. easements and real property and all facilitiea, tmprovementa and landscaping thereon in which the Association holds an °interest, subject to.tbe terms of any instrument transferring such interest to the Association; (ii) all personal property in whicb tbe Association· bold. an interest, subject to the terma of any instrument transferring such interest to the Association; and (iii) all property, real or personal, which the !asocLation is obligated to repair or maintain pursuant to this Declaration, including, without limitation, the Article of tbis Declaration entitled llRepair and Maintenuce". (' are, 0: portiol (d itie. a property taxes and other assessments which ~mmon Area and Community Pacilities or a :ial statements for the Association as on of the Coumon Aru and CoDIDUnity Pacil- Ued by the Association. (8, ~~~G~e anQ executa disciplinary proceedings against Members for violations of proviaions of the Articles, Bylaws, Declaration and Association Rules in accordance with procedures set forth in such documents. (f) enter upon any Residence as necessary in connection with construction, maintenance or emergency repair for the benefit of the Common Area and Community Facilities or the OWners_ (g) employ a manager or other persons and contract with independent contractors or managing agents who have profes.ional experience in the management of residential developments similar to the Covered Property, to perform all or any part of tbe-duti •• and responsibilities of the AsSOCiation, provided that any contract not approved by FHA or VA with a person or firm appointed as a manager or managing agent shall be terminable as follows: (i) for cauae on not more than thirty (30) days' written notice by the Aasociation; and (ii) witbout cause upon ninety (90) days' written notice by either party, without payment of a termination fee. Such contract shall have a term of not more than one (1) year with successive one (1) year renewal periods upon mutual agreement of the parties; (h) acquire interests in real or personal property for offices or other facilities that may be necessary or convenient for the management of the Covered Property, the administration of the·affairs of the Association or·for the benefit of the Members; 91/8-24-79 CC&R's BA62bll-12 6-1 Island Lagoon Homeowners Association 286-91 (2-25-80) (i) borrow money a. may be needed in connection with the discharge by the Association of its powers and duties; (j) establish in cooperation with the City a special tax assessment district for the performance of all ·or a portion"of the maintenance or other functions now within the responsibility of the Association. (k) provide trash pickup snd disposal service for the benefit of the Owners and their Re8idence~; (1) contract for cable television service for the benefit of the Owners who have subscribed for such service; and (m) negotiate and enter into contracts with First Mortgagees and mortgage insurers and guarantors as may be necessary or desirable to facilitate the availability of loans secured by Mortgages within the Covered Properey. (n) elect officers of the Board; (0) fill vacancies on the Board except vacancies created by the removal of a director. (p) subject to the limitations imposed under this Article, contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association. (q) subject to the limitations imposed under this Article, contract for casualty, liability and other insurance on behalf of the Association; (r) subject to the l~itations imposed under this Article, contract for goods and/or services for the property owned or controlled by the Association. (s) delegate to committees, officers, employees or agents any of its duties and powers under the Governing Instruments, according to law and ., expressl"y PFovided in the Governing Instruments, provided however. no such delegation to a professional ~nagement company, the-Architectural C~ittee or otherwise shall relieve the A,aociation of its obligation. to perform such delegated duty. (t) act as a managing ag~nt for all of the Projects. Section 2 -General Limitation. and Restrictions on the Powers of the Board. In addition to the limitations and restrictions enumerated in the Articles and Bylaws or elsewhere provided for herein, and without limiting the generality thereof, the Board shall be prohibited from taking any of the following actions except with the vote or written assent of a majority of the Applicable Voting Power. (a) enter contracta for materials or services which have a term in excess of one (1) year, with the following exceptions: (0' a IUnagement contract, the terms of which have been approved by the FHA or VA; (ii) • contract with a public utiLity company if the rates charged for the materials or services are regulated by the Public utilities Commission; provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate; and (iii) prepaid casualty and/or liability insurance policies of not to exceed three (3) years duration, provided that the applicable policy permits short rate cancellation by the insured. 91/8-24-79 BA62b13-14 CC&R's 6-2 ---~----~-~.~.--- Island Lagoon Homeowners Association 286-91 (3-6-81) ) I I (b) incur aggregate expenditures for capital improvements to the Covered Property in any fileal year in excess of five percent (5%) of the •• t~.ted Common Expenses for the .fiscal year al set forth in the Section. entitled IIRegular Aaelsmente" and "Capital Improvement AIII.samentl lt of tbe Article hereof entitled lIeavenaat for Alleeameotalt , (e) sell any real or perlonal property of the AI.Deiation with an aggregate fair market value in excess of five percent (5%) of .aid elt_~ted Common Expenees during any fiscal year. (d) pay compen.ation to directors or to officers of the A •• ceiation for services performed in the conduct of the A •• ceiation'. buainesa; provided, however, the Board may cause a director or officer to be reLmburled for expenses incurred in carrying on the bu.inesa of the A.sociation. (.) fill a vacancy on the Board created by the removal of a Board member. Section 3 -Aaaociation Rules. The Board shall also have the power to adopt, &mend, and repeal auch rules and regulationa al it de~. reasonable (the "Alaociation Rule.lI ) which may include the establishllent of a sYltem of finea and penaltiee enforceable al Special As.el~ents, all aa provided in the Bylaws. The A.sociation Rules shall 'govern 'such matters in furtherance of the purposes of the Aasociation, including, without limitation, the uae of tbe Common Area and Community Facilitiel; provided, however, that the Alsociation Rules may not discr~inate .mong Ownerl, and sball not be inconsistent with thil Declaration, the Articles or Bylaw.. A copy of the ~Iociation Rulel a. they may from tLme to time be adopted, amended or r.peal~ or a notice setting forth the adoption, &mendment or repeal of .pecific portion. of the Alsociation Rule •• hall be delivered to each Owner in the s .. e manner eatablished in this Declaration for the delivery of notice.. Upon completion of the notice requireaenta, said Allociation Rule •• hall have'the .ame force and effect a. if they were set forth in Ind were part of this Declaration and shall be binding on the Owners Ind their succ.s.or. in intere.t vbether or not actually received thereby. The Association Rul •• , al adopted; amended or repealed, Ihall be available at the principal office of the Association to each Owner and First Mortgagee upon reque.t. In the event of any conflict between any such Association Rule. and any other provision. of this Declaration, or the-Articles or 'Bylaw., the provi.ions of the Ass.ociation Rules shall be deemed 'to be superseded by the provision. of this Declaration, the Article. or the Bylaws to the extent of any such conflict. Section 4 -Pledge of A.sealment Rishts. The Association shall have the power to pledge the right to exercise ita Ass.s.ment powers in connection with ob- taining fund. to repay a debt of the Association; provided, however. any such pledge shall require the prior affirmative vote or written assent of not less than sixty-six and two-thirds percent (66-2/3%) of the voting power of the Asaociation. Said pawer shall include. but not be limited to, the ability to make an assignment of AA.es .. ents which are then payable to or which will become payable to the Allociation; which as.ignment may be then presently effective but shall allow said AI.es~ents to continue to be paid to and used by the Association aa set forth in this Declaration, unless and until the Association shall default on the repayment of the debt which is secured by said assignment. The Alaociation may levy Special Asses~ents against the Members to obtain such funds. Upon the failure of Iny Member to pay said Special AssesBment when due, the Association may exercise all ita rights, including, without limitation, the right to foreclose its lien, pursuant to the Article hereof entitled 'tt{onpayment of As.elsments". Without limiting the generality of the foregoing, Iny pledge of Alsessment rights in excess of an amount equal to twenty-five percent (25%) of the total Regular Asselsment. collected by the As.ociation in the then preceding fiscal year, shall require the prior written approval of seventy-five percent (75%) of the First Mortgagees baaed on one (1) vote for each first mortgage held. 91/8-24-79 CC&R'. BA62b1S-16 6-3 Island Lagoon Homeowners AS80clatlon 286-91 <3-6-81) -,--.---~~.....--,.-.-.----.-".--~ ._---- il ~ ( ~ I I 1 ARTICLE VII REPAIR AND MAINTENANCE Section 1 -Repair and Maineenance bY Association. Except to the extent that an Owner may be obligated to maintain and repair as hereinafter provided, and without limiting the generality of the statement of duties and powers contained in this Declaration, the Articles, Bylaws or Association Rules, the Association shall have the duty to accomplish the following upon the Covered Property or other land in· such manner and at such times as the Board shall prescribe: <a) maintain, repair, t'e.store, replace and make necessary improvements to the Common Area or Community Facilities, including, without limitation, the following: (i) the exterior sur faces of all Condominium Bui ldings I to include the painting thereof, including, without limitation t the interior surface boundaries of Condominium Elements which are exterior walls of Condominium Buildings, but specifically excluding awnings. <ii) the po<tion of the Restdcted Common A<ea designated as D<iveway, and further excepting the Common Area Yard. (iii) private walkways, bicycle paths, trails or other pedestrian paths; (iv). private streets and adjacent streetscapes within the Covered Property in conformance with the standard of maintenance established by the Director of Public Works of the City for public streets and street- scapes within the CitYi (v) drainage facilities and easements in accordance with the re- quirements of the Orange County Flood Control District; (vi) water quality filtering system approved by the City in ehe inieial development and construction of the Covered Property, including, without limitation I the grease interceptors or other devices installed to trap runoff debris. (vii) the private sewer system servicing the Units. The common sewer line is depicted on Exhibit D. (b) maintain, repair, restore, replace and make necessary improvements to that surface of any fence marking the boundary of either a Yard Condominium El~ent or a Common Area Yard and the Common Area. (c) maintain, repair, .restore, replace and make necessary improvements to the interior surface boundaries of the Deck and Entry elements of Units which are not ground or floor surfaces. (d) maintain all other areas, facilitie., equipment, services or aesthetic components of whatsoever nature as may from time to time be requested by the vote or ~_itten consent of two-thirds (2/3) of the voting power of the Members. (e) the COlts of any such maintenance and rep:ir pursuant to this Section shall-be paid out of the general fund. of the Association, except a. otherwise herein specified al payable by the particular Owners. Section 2 -Repair and Maintenance by Owner. be obligated to maintain and repair &1 may be every Owner shall: Except as the Association shall provided in ehis Declaration, (a) maineain, repair, replace and restore all of the Residential elem-ent, the Garage element, and the floor or ground surfaces of the Deck and Entry elements. Without limiting the (teneraliey of the foregoing, Owners. shall lI\4in- eain all plants or other growing thing. emplaced or located within such non- residential elements of Units, and such plants or other growing things shall be permitted to encroach into or onto the Common Area, subject to the Article hereof entitled "Architectural Control". 91/8-24-79 CC&R's BA62b17-18 7-1 Island Lagoon Komeowners Association 286-91 (5-15-81) dau / I I I J I (b) repair and replace all window glass for his own Condominium,~ and Owners shaLL be responsible for the interior and exterior cleaning of such window glass. (c) repair, maintain or replace Garage doors, including, without limita- tion, garage door opening systems, hinges, eprings and other parts of the door mechanism; except that the Association shall maintain and replace the painting on the exterior surfaces of Garage doors. (d) maintain, repair, replace and restore all portions of the Unit, in- cluding without limitation, the interior wallS, ceilings, floors and doors in a clean, sanitary and attractive condition. {e} tn the event the Board shall determine that the walls, ceiling. floors, doors or any other portion ~f the Common Area forming the boundaries of a Unit or an Owner's Restricted Common Area have been damaged from within the Unit, or such Owner's Restricted Common Area, notwithstanding that such damage may be to the Common Area, the Owner of the Unit shall be responsible for repairing such damage in a ti~ly manner and in accordance with such rules as the Board or Architectural Committee shall from time to time adopt. (f) maintain and repair all surfaces of the awnings that shelter the windows for the Unit. {g} repair. maintain or replace any portion of any Air Conditioning Equip- ment whi.ch services such Owner's Residence. In the event that the Board shall determine that the Common Area or any Unit has been damaged by reason of a defect in or accident to a piece of Air Conditioning Equipment, the Owner of the Resi- dence which is served by such Air Conditioning Equipment shall be responsible for repairing such dam.ge in a timely manner and in accordance with such rules as the Board or the Architectural Committee shall from time to time adopt. {h} maintain, repair, restore, replace and mak.e ",ecessary improvements to the interior surfaces of his Yard Element or C~n Area Yard, including the interior surface. of walls or fences, landscaping. and all improvements con- structed or installed in his 'lard Element or Common Area Yard .. The repair of any wall or fence separating the Yard Element or Common Area Yards of neighboring Condominiums shall be the joint responsibility of th"e Owners whose COhdominiums are separated by such walls or fences. notwithstanding that such walls or fences· may consist of Common Area. Such adjoining Owners shall share the expense of such repair equally, but if one such Owner refuses to join in such repair, the other may undertake such repair himself and shall receive contribution from his neighbor for his neighbor's share of the cost thereof. In the event that such repair is required because of the acts or negligence of such adjoining Owners, such repair shall be accomplished by such Owner at his sole expense. Nothing contained in this subsection shall obligate any Owner to paint or maintain the surface of any such wall or fence except as such surface forms a portion of the boundary of his Yard Element or Common Are4 Yard, as the case may be. Section :J -Right of Association to Maintain and Install. tn the event that an Owner faiLs to accomplish any maintenance, instalLation or repair required by this Article, the Association or its delegates may, but sha~ll not be obligated ,to, cause such maintenance, instaLlation or repair to be accomplished as here- inafter set forth. (a) Upon finding by the Board of a deficiency in such maintenance, in- stallation , or repair, the Board shall give notice of deficiency to the Owner which shaLL briefly describe the deficiency and set a date for hearing before the Board or a committee selected by the Board for such purpose. The Board may delegate its powers under this section to a duly appointed committee of the Association. 7-2 " ~9~1~/~8~-~2~4~-~7~9~·~"~C~C~~~R~'~S""""""""--""--~I~S~1~a·n·d~L·a·g·o·o·n~H·o·m·e·o·wn"e·r·s·A"s·so·e--ia·t·l-·o-n.v~ BA62b 19-20 "-286-9\ (0-10-81) do. (b) S4ch hearing shall be held not less than fifteen (15) nor more than thirty (30) days from the date of delivery of said notice. (c) Such hearing shall be conducted according to such reasonable rules and procedures as the Board shall adopt which shall provide the Owner with the right to present oral and written evidence and to confront and cross-examine any person offering at such hearing evidence adverse to such Owner. If the Board or any such committee renders a decision against the Owner, it shall further set a date by Which the deficiency is .to be corrected by the Owner. A decision of such committee may be appealed to the Board, but a decision of the Board shall be final. (d) If the deficiency continuea to exiat after the time limitation imposed by a final decision of the Board or any such committee, the Board or such committee may cause such maintenance, installation or repair to be ac- campI ished. (e) In the event the Board or such committee elects to cause sucr. mainte- nance, installation or repair to be accomplished, the following shall apply: (i) 'nle OWner shall have ·no more than ten (10) days following the receipt of written no~ice of such election from the Board or such committee to select a day or days upon which such maintenance, installation or repair work shall be accomplished; (ii) 'nle date which said Owner selects shall be not less than fifteen (15) days nor ~ore tnan forty-five (45) days following the last day of said ten (10) day period; (iii) If said Owner does not select such day or days within said ten (10) day period, the Board or such committee may select a day or days upon which such work may be accomplished which shall be not less than twenty-five (25) nor more tban fifty-five (55) days from the 1 •• t day of said ten (10) day period; and (iv) Onlea. the Owner and the Board otherwise agree, such maintenance, inttallation or repair shall take place only during.daylight hours on any day, Monday through Friday, excluding holidays. (f) If the Association pays for all or any portion of such maintenance, inltallation, or repair sucb amount shall be a Special Asses8ment to the affected Owner and Residence. Section 4 -Standardl for Maintenance, Installation and Repair. All mainten- ance, installation and repa1r to be accomplished by an Owner, including, without limitation, the awnings, Ihall be accomplished in accordance with the Architectural Standarda, and, if required by the Architectural Standards, only after approval of the Architectural Committee. All awnings shall be white. Section 5 -Right of Entry. The Association after reasonable notice to Owner, shall have the right to enter upon any Residence in connection with any mainte- nance, inltallation, repair or construction in the exercise of the powers and duties of the A.aociation. Section 6 -H.aintenance of Public Utilities. tlothing contained herein shall require or obligate the Association to maintain, replace or restore the under- ground facilitiel of public utilities which are located within. easements in the Common Area or Community V.cilitiea owned by such public utilities. Rowever , the ASlociation shall take such stepa as are necessary or convenient to ensure that such facilitie. are properly maineained, replaced or restored by such public utilitie •• 91/8-24-79 CC&R'. BA62b21-22 7-3 Island Lagoon Homeowners Alsociation 286-91 0-6-81) ( "'-') Section 7 -AJsumption of Kaintenance ObligatioDs. Declarant, its subcontractor. and the agent. and employeel of the same shall have the right to come on the Common Area and Community Facilities to complete the construction of any land- leaping or other improv~ent to be in.talled on the Common Area and Co~nity Facilities 88 provided in tbis Declaration. In the event that Declarant IS subcontractors are contractually obligated to maintain the landscaping and/or other improvements on the Common Area and Community Facilities such maintenance shall-not be .I.umed by the Association until the termination of such contractual Obligation. If any exces. of !asesaments collected OVer actual Common Expenses incurred by the Association ia caused by reason of construction or maintenance pursuant to this Section, or otherwiae, .uch excel' shall be placed in reserve to off.et the future expenses of the A.sociation in any manner designated by the Board. 91/8-24-79 CC&R'. BA52b22 7-4 Island Lagoon Homeowners Association 286-91 (3-6-81) ARTICLE VI II INSURANCE Section 1 -Types. The Association shall obtain and maintain in effect the following types of insurance: (4) A comprehensive public liability insurance insuring the Association, the Declarant and the agents and emloyees of each and the Owners and the respec- tive family members, guests and invitees of the OWners against any liability incident to the ownership or use of the Common Area aod Community Facilities, and including, if obtainable, a cross-liability endorsement insuring each insured against liability to each other insured. The limits of such insurance shall not be less than One Million Dollars ($1,000,000) for death of or injury. to anyone person in anyone occurrence, One Million Dollar. ($1,000,000) for death or injury to more than one person in anyone occurrence, and One Hundred Thousand Dollars ($100,000) for property damage in anyone occurrence. (b) A master or blanket policy of fire insurance for the full insurable replacement value, without deduction for depreciation, of all of the improvements within the Covered Property. Such policy shall contain extended coverage and replacement cost endorsements, if available, and may also contain vandalism and malicious mi.chief coverage, special form endorsement, stipulated amount clause and a determinable cash adjustment clause, or a similar clause to permit cash settlement covering full value of the improvements on the Covered Property in the event of destruction of improvements and a decision not to rebuild pursuant to the Article herein entitled l11)estruction of Improvements. II Such policy shall be in such amounts as shall be determined from tune to time by the Board, shall name as insured the Association, the OWners and Declarant, so long .. Declarant is the Owner of any of the Condominiums, and all Mortgagees as their respective inter- ests may appear, and shall contain a loss-payable endorsement in favor of the Trustee. (c) Fidelity coverage against dishonest acts on the part of directors, officer., employees or volunteers who handle or who are responsible for handling the funds of the Association, and such fidelity bonds shall name the A.soeia- tion as obligee, shall be written in an amount equal to one hundred fifty percent (150%) of the estimated annual operating ~xpenses .of the Association, including reserves, and shall contain waivers of any defense based on the exclusion of perlons who serve without compensation or from any definition of "employee" or similar expression. ·Section 2 -Waiver by Members. All insurance obtained by the Association shall be maintained by the Association for the benefit of the Association, the Owners and the Mortgagees as their interests may appear. As to each of said policies which will not be voided or impaired thereby, the Owners hereby waive and release all claiml againlt the Association, the Board, other OWners, the Declarant and agents and employees of each of the foregoing, with respect to any loss covered by such inlurance, whether or not caused by nesligence of or breach of any agreement by said persons, but to the extent of insurance proceeds received in compensation for such loss only. Section 3 -Other Inlurlnce. The Board shall purchase and maintain worker's compensation insurance for all employees of the Association to the extent such insurance is required by law. The Board may purchase and maintain in force demolition insurance in adequate amounts to cover demolition in the event of total or partial' destruction and a decision not to rebuild as well as a blanket policy of flood in.urance. The Board may also purchase and maintain in effect such insurance on personal property owned by the Association. The Board shall also have the power to purchale and maintain in effect, such other insurance as it deems neceslary, including without limitation, earthquake inlursnce, plate- glass insurance, and officers' and directors' liability insurance. 91/8-24-79 CC&R'. BA62b23-24 .... -.~-.-.-._-~.-----.-------: .. _-_.-----_ .... --.-. 8-1 Island Lagoon Homeowners Assoclatlon 286-91 (3-6-81) r-' { i Section 4 -Premiums. Proceeds and Settlement. Insurance premiums for any such blanket insurance coverage obtained by the Association and any other insurance deemed necessary by the Association shall be a C~n Expense to ba included in the Regular AssesamentB levied by the Association. Casualty insurance proceeds shall be used by the Association for the repair or replacement of the property for whicb the insurance was carried, or otherwise disposed of as provided in the Article hereof entitled 'toestruction of Improvementsll • The Association is hereby granted the authority to negotiate loss settlements with the appropriate insurance .carriers. Any two (2) directors of the Aslaclation may sigo a 1088 claim form and release form in connection with the settlement of a 1088 claim, and such signatures shall be binding on the Association and the Kembers. Section 5 -APDual Insurance Review. The Board shall annually determine whether the amounts and types of insurance it baa obtaine.d provide adequate coverage for the Covered Property in light of tncreased construction costa, inflation, practice in the area in which the Covered Property is located, or any other factor which tends to indicate that either additional insurance policies or increased coverage under existing policies are necessary or desirable to protect the interests of the OWners and of the Mlociation. If the Board determines that increased coverage or additional insurance is appropriate. it shall obtain the same. Section 6 -Abandonment of Replacement Cost Insurance. Unless at least aeventy- five percent (75%) of the First Mortgagees ba.,d on one (1) vote for each Pirlt Mortgage held have given their prior written approval, the Association shall not be entitled to fail to-maintain the extended coverage fire and casualty insurance required by this Article on le88 than a one hundred percent (100%) current replacement cost basis. Section 7 -Federal Requirements. Notwithstanding the foregoing proviliona of thi. Article, the ~sociation must obtain and continuously maintain in effect such cao .. lty, flood and liability insurance and a fidelity bond .meeting the insurance and fidelity bond requirements for condominium projects established by any of the Federal Agencie., when such Federal Agency first becomes and as long a8 it continue. to be either a Mortgagee, owner, or insurer or guarantor of a Mortgage within the Covered Property, except to the extent such coverage is not available or baa boon vaived in writing by the foregoing entitie •• Section 8 '-Trustee. Except as provided below, all. insurance proceeds payable under the Section entitled IIFire and Extended Coverage Insurance" of this Article shall be paid to a Truatee. The Trustee shall hold, distribute and expend such proceeds for the benefit of the OWners, Mortgagees and others, as their respec- tive intereats shall appear. p'ursuant to the provisions -of the Article herein entitled ''Destruction of Improvements.1t The Trustee shall be appointed by the Board and shall b. a commercial bank, or branch thereof. or a trust company in Orange County, which haa agreed in writing to accept such trust. When proceeds from a single claim do not exceed Ten Thousand Dollars ($10,000), such proceeds shall b. paid to the .Msociation to be Wled as provided in the Article hereof entitled 'tnestruction of Improvements". Section 9 -Individual Casualty Insuran~e Prohibited. Except as expressly provided in the Section of this Article entitled !lRights of Owners to Insurell , no Owner will separately insure his Condo=inlum or any part thereof against loss by fire or other caaualty covered by any insurance carrier under the Section entitled "Pire and Extended Coverage Insurance" of this Article. Should any Owner violate this proviaion, and should any 10&8 intended to be covered by insurance carried by the Association occur, and the proceeds payable thereunder be reduced by reason of insurance carried by any owner, such Owner shall assign the proceeds of such insurance carried by it to the extent of such reduction to the Trustee for application by the Board to the same purposes as the reduced proceeds are to be applied. 91/8-24-19 CC&R's BA62b25-26 8-2 Island Lagoon Homeowners Association 286-91 (7-11-80) In the event· that such Owner has failed to pay such amount within thirty (30) days of a written demand therefor by the Association or the Trustee, the Board may levy a Specia~ Asses~ent against such Owner and his Condominium for such amount. In the event such Special Assessment is not paid within thirty (30) days of its due date, the Board may effect the remedies of Section 1356 of the California Civil Code and the Article hereof entitled "Nonpayment of }.asess- ments.1I Section 10 -Rights of Owners to Insure. Notwithstanding the other provisions of this Article, an Owner shall be permitted to insure his personal property against loss by fire or other casualty and may carry public liability insurance covering his individual liability for damage to persons or property occurring inside his individual Unit or his Restricted Common Area. In addition, any improv~ents made by an Owner may be separately insured by such Owner, provided such insurance shall.be limited .to the type and nature of coverage commonly known as IItenant I s improvements" coverage. Provided, however I such limitat ion as to type and nature of coverage shall not apply to improv~ents installed within the Entry and Yard Elements, but any policy of insurance covering such improvements shall meet the other requirements of this Section. All such policies as may be carried by the Owners shall contain waivers of subrogation of claims against the Association, -the Board, other Owners. Declarant and the agents and employees of each of the foregoing, with respect to any loss covered by such insurance. whether or not caused by negligence of or breach of any agreement by said per- sonS t but to the extent of insurance proceeds received in compensation for such loss only; provided, however, such other policies shall not adversely affect or dLminish any liability under any insurance obtained by the Association, and duplic.ate copies or certificates 6f such other policies shall be deposited with the Board. Section 11 -Required Waiver. All policies of physical damage insurance shall provide for waiver of the following rights to the extent such waivers are ob- tainable from the respective insurers: (.) Subrogation of claims against the Owners or tenants of the Owners; (b) Any defensa based on co-insurance; (c) Any right of set-off. counterclaim, apportionment, pror~tion or con- tribution by rea.on of other insurance not carr~ed by the Association; (d) Any invalidity, other adverse effect or defense on account of any breach of warranty or condition caused by the Association, any Owner or any tenant of ·any Owner or arising from any act, neglect or omislion of any named insured or the respective agents, contractors and employees of-any insured; (e) Any right of the insurer to repair, rebuild or reptace and, in the event the building is not repaired. rebuilt or replaced following 10ss 1 any right to pay under the insurance the lesser of the replacement value of the improvements inlured or the fair ~arket value thereof; (f) Notice of the assignment of any Owner of its interest in the insur- ance by virtue of a conveyance of any Uniti and (g) Any right to require any assignment of any Mortgage to the insurer. 91/8-24-79 CC&R'. BA62b27-28 8-3 Island Lagoon Homeowners Associatio~ 286-91 (3-6-81) ~ J n J ARTICLE U DESTRUCTION OF llIPROVEllENTS Section 1 -Automatic Reconstruction. In the event of partial or total destruction of any Condominium Building, the Board sbsll promptly take tbe following action, <a> The Board shall ascertain the coat of reconstruction by obtaining fixed price bids from at least two (2) reputable contractors, including the obligation to obtain a performance bond, 1f the Board deems the same to be necessary or appropriate, and obtaitting one or mDre independent appraisals if the Board deems sucb appraisal or appraisals to be necessary or desirable. (b) The Board shall determine tbe amount of insurance proceeds, 1f any, payable by contacting the appropriate representative of the insurer of said CondominiUII. Building. (c) The Board shall meet and determine whetber the insurance proceeds, 1f any, will cover eigbty-five percent (85%) or more of the estimated cost of reconstruction 4S determined pursuant to subsection (a) of this Section, or whether the portion of the estimated cost not covered by insurance 1s 18S8 than One Hundred Fifty Dollars ($150.00) per yoar per Condominium. Such per- centage covered by insurance or 8uch coat shall hereinafter be referred to as the "Acceptable Range of Reconstruction Cost. II If the Board finds that a bid obtained under this Section is within the Acceptable Range of Reconstruction Cost, the Board shall cau.eo a notice to be sent to all OWners of Condominiums in the Project within whicb tbe partially or totolly destroyed Condominium Building is located (hereinafter in this Article the "affected Ownersll) and to the Mortga- gees of Mortgages encumbering Condominiums in said Condominium Building setting fortb sucb findings and informing said OWners and said Mortgagees that the Board intends to commence construction pursuant to this Declaration. In the event that at leaat twenty percent (20%) of tbe affected OWners, based on one (I) vote for each Condominium, object in writing to such reconstruction by the date indicated therefor on such notice, whicb in no event sball be sooner than ten (10) days or later than thirty (30) days aftor tbe date on whicb tbe Board send. sucb notice to the _era, tb. Board .hall c:all a ", .. ting of tbe &ffec ted OWners pursuant to the Section entitled 1fRacODstructl_OD Pursuant to Haeting" of this Article. In tbe event that the foregOing requirements are satisfied and tbe requisite number of affected OWners do not object in writing by sucb date, tbe Trust •• shall pay such insurance proceeds as are available to the Board and the Board shall cause reconstruction to take place ae promptly ,8e practicable and shall levy a RacoU8truction Assessment against each affected Owner at such time and in sucb amount .. the Board shall determine is necessary to cover the costs of raC01l8tructian in BCdS of insurance proceeds. If the Board in good faith determines that none of the bids submitted under this Section reasonably reflects the anticipated reconstruction costs, the Board shall proceed according to the Section entitled ''Reconatruction Pursuant to Meeting" of this Article. (d) Th. foregoing determinations .hall be made by tbe Board as soon as pos.ible. However, if such determinations cannot be made within sixty (60) days of the date of destruction because of the unavailability or unaceeptabllity of an insurance esttmate or reconstruction bid, or otherwise, the Board shall immediately call a ceeting of the affected Owners pursuant to the Section en- titled "Reconstruction Pursuant to Meeting" of this Article. (e) If tbe Board determines that any Unit has become uninhabitable by reason of its total or partial destruction, Regular Assessments shall abate against the·OWUer tbereof until the Board determines that the reconstruction of the Unit has restored its habitability. However, if the Board determines that such abatement will adversely and substantially affect the management, maintenance and operation of the Covered Property, it may elect to disallow such abatement. 9-1 ~, ~9~1~/8~-·2~4-~7~9~~C~C~&~R~'·.""""""""""""·I-.·l·a-n·d--L-a-g·o·o·n--R-o-me .. own .. e·r· ... As .. s-O-C-ia .. t-i-o=n~~ BA63al-2 286-91 (2-25-80) (f) In the event that Condominium Buildings are totally or partially destroyed in more than one (1) Project, the Board shall separately follow the procedures set forth in this Article as to eachlProject so affected. Section 2 -Reconstruction Pursuant to Meeting. If the Board determines that the requirements of the Acceptable Range of Reconstruction Cost have not been met, or if the requisite number of affected Owners object in writing to a deci- sion by the Board to reconstruct pursuant to the Section entitled "Automatic Reconstruction" of this Article, the Board shall call a meeting of the affected Owners by mailing no.tice of such determination and of the meeting to such Owner at his address as shown on the records of the Association. Such meeting shall be held not less than fourteen (14) days and. not more than twenty-one (21) days after (i) the meeting at which the Board makes its determination that the cost of reconstruction was not within the Acceptable Range of Reconstruction Cost, or (ii) the date indicated on the notice of the Board sent to M.mbers pursuant to subsection (c) of the Section entitled "Automatic Reconstruction" above, as the case may be. The affected Owners may, by a vote at such meeting or by the written consent of not less than sixty-six and two-thirds percent (66-2/3%) of the affected Owners based on ooe (1)~vote for each CondominiUM determine to proceed with the recon.truction. If the affected Owners so determine to recon- struct the partially or totally destroyed Condominium Building, the Board shall levy a Reconstruction A.ses~ent against each affected Owner at such time and in such amount as the Board .hall determine is necessary to cover the costs of recon.truction in excess of insurance proceeds. Section 3 -Decfsion to Recon.truct; Procedure After Meeting. In the event that the Association uoderrakes reconstruction pursuant to the Section entitled "Recon.truction Pursuant to Meetiogl! of this Article, the following shall apply: (a) Lmmediately after .uch meeting, the Board shall notify by first-class mail, regi.tered or certified, all First Mortgagees of Condominium. in totally or partially de.troyed Condominium Building. of the A •• ociation'. decision to undertake reconstruction. The Board shall al.o send ~ true copy of all such notice. to the Tru.tee. (b) In the ~ent that aoy such Fir.t Mortgagee desire. to apply insurance proceed. allocable to the Condominium· encumbered by it. Mortgag~ to the reduction or elimination of the indebtedne •• secured by "such Mortgage, such First Mortgagee shall notify the Tru.tee and the A.lociation in writing of luch election within thirty (30) day. of the date the notice of the Board sent pursuant to subsection (a) above is depo.ited in the United States mail. Upon receipt of tLmely notice from any such First Hortsagee, the Tru.te. shall promptly pay to such First Hortgagee the insurance proceeds allocable to the Condominium encumbered by the Mortgage of such First Mortgagee for the p'urpose of the reduction or elLmination of the Obligation lecured by such Hortgage; provided, however, in no event shall the Trustee pay to luch Fir.t Mortgagee an ~unt greater than (i) the. outstanding indebtedness s.cured by ,aid Hortsage, or (ii) the insurance proceed. allocated to such Condominium, whichever of (i) or (ii) is t~ Lesser. Simultaneously with such payment, the Tru.tee sh.ll notify the Board of the .mount of such payment. The Trustee shall not make payments to First Hortgagee. pursuant to this sub- section (b) unless such First Hortgagee notifies the Tru.tee of its election prior to the expiration of the thirty (30) day period following the deposit in the United State. aail of the Board's notice to such First Mortgagee pursuant to this .ubsection (b). (c) A. to .ach Condominium for which insurance proceeds have been paid to the Trultee and for which a First Mortgagee has not t~ely notified the Tru.tee of itl election to apply .uch proceeds to the reduction or elimina- tion of the obligation owing to such First Mortgagee, the Trustee promptly upon the expiration of the appropriate time period shall pay all inlurance proceeds allocable to such Condominium to the Board to be applied to reconstruction undertaken by the A •• ociation pursuant to the Section entitled "Recon- struction Pursuant to Meeting" of this Article. In the event that the Trustee 91/8-24-79 CC&R'. BA63a3-4 9-2 Island Lagoon Romeowner. Association 286-91 (3-6-81) baa paid a portion of the inlurance proceeds allocable to a Condomiuium to an First Mortgagee after ttmely request therefor, stmultaneously with such payment the Truatea shall pay all reaaining prooeeds, if any, allocable to suoh Condo- minium to the Board to be applied to reconstruction undertaken by the Association pursuant to the Section entitled ItReconstruction Pursuant to Meeting" of this Artiole. (d) For the purposes of this Article, the amount of insurance proceeds lIallocatedlf or lIallo_cable" to a Condominium shall be determined pursuant to this subsection (d). In the event that -the insurance carrier allocates casualty insurance proceeds among Coudominiume for which such proceeds are payable, such allocation shall be final and binding on the OWners, the Mortgagees, the Associa- tion and tbe Trueee. 'l11e Board ahall make l!Very possible effort to cause such insurance carrier to make such allocation. In the &Vent that such allocation is not made, the'Trustee shall allocate such proceeds among such Condominiums in totally or partially destroyed Condominium Buildings based upon the relative value of the Condoadniums aa established by an independent appraisal c~nducted by an M.A.I. appraiser selected by the Trustee and the extent to which the Units involved have been affected by the destruction. Such allocation made by the Trustee shall be final and binding on the Owners, the Mortgagees and the Asso- ciation. (e) In the event that the Trustee paya insurance proceed. to any Firat Mortgagee pursuant to tbis Sec tion, the Owner of the CondOld.nium. whicb was encumbered by the Kortgage of such First Mortgagee shall pay to the Association an amount equal to the insurance, proceeds paid by the Truatee to such First Mortgase.. In the event that sucb Owner bas failed to pay such amount witbin thirty (30) day. of • writton damand therofor by tho Assooiation, tho Board may levy a Special As •• SOlent against such Ovn.r and bis CondaainiUII for such amount. In tho event .\lO1l Speoial As.esmont 1A not paid within thirty (30) day. of ita due date, the Board .. y offeot tho r .. odies of Soction 1356 of the california Civil Cod. and the Article hereof entitled '~onpayment of AsH.delltS." Such Special As •• sam.nt and any aegular A8sess.e~t levied subs.quant thereto shall not be • personal UabUity of tbe Owner against ¥b01ll sucb Aa •• s8lMnts are levied and .heLl only be oharged against his Condooaini .... Section 4 -DeCision Kat to aecou.truct; Procedure After Keeting. In the aveut tbat the affected Ownera decide not to reconstruct at the aeeting called pursuant to the Section eutitled ''Raconstruction Pursuant to Heeting" of this Article, the Tru.tee shall apply the insurance proceeds as follows: (a) The Trustee ahall first apply insurance proceeds to the reduction or elimination, as the Cd. may be, of all outstanding Mortgages encumbering Condo- miniUlU for which inaurance proceeds have been paid by reason of the. casualty; prOVided, however, a. to any Condominium, the Trustee shall not pay iusurance proceeds to Mortgageea in an amount greater than (i) the outstanding indebted- ness •• cured by ~rtgage8 encumbering said Condominium, or (i1) the insurance prooeeds allooable to .. id Condooainiua, whiohever of (i) or (ii) is the leaser. (b) All prooooda allooated to CondominiUllUl and reDl4ining after payments to Mortgagees pursuant to .ubsection (a) shall be distributed by the Trustee to suoh OWners in the partially or totally destroyed Condominium Building after the deduction of an amount determined pursuant to subsection (c) below. The amount of insurance proceeds allocable to each Condominium shall be determined by multiplying the amount of insurance proceeds available for distribution by a fraction, the denoainator of which is the total M.A.I. appraised value of all Condominiums within the Project and the numerator which is the M.A.I. appraised value of each such Condominiums; The appraised values shall all be determined by an M.A.I. appraiser selected by the Board. (c) The Board sball levy • Reconstruction Aasessment agaiust all affected OWners equal to the costs of clearing of the debris of totally or partially destroyed Condominium Buildings and cleaning of the area. The Trustee shall pay to the Board said Reconstruction Assessments of the Owners of partially or totally destroyed Condominiums out of the insurance proceeds allocated to such Owners prior to the distribution of such proceeds thereto pursuant to 91/8-24-79 CC&R'. BA63a5-6 . -------------------~-------------~~ 9-3 Island Lagoon Homeowners Association 286-91 (7-11-80) '"'<'-~-~,~------------------, subsection (b) above. In the event that insurance proceeds allocated to any Owner, -after deduction of proceeds paid to Mortgagees, is not sufficient to pay the entiye Reconstruction Assessment levied against such OWner, such Owner shall not be relieved of his obligation to pay any such excess. Section 5 -Certificate of Intention to Reconstruct. In the event that the Association undertakes reconstruction pursuant to this Article, the Board shall execute, acknowledge and record in tbe Office of the County Recorder of Orange County, california, a certificate declaring the intention-of the Asso- ciation to rebuild not later than one hundred eighty (180) days from the date- of destruction. If no such certificate of reconstruction is so filed within .aid one hundred eighty (lSO) day period, it shall be conclusively presumed that the Association has determined not to undertake reconstruction pursuant to this Article. Section 6 -Partition. In the event that a certificate described in the Sec- tion entitled uCertificate--of Intention to Reconstruct" of this Article is not recorded within the one hundred eighty (ISO) day period provided therein, the right of any Owner to partition through legal action aa described in the Article hereof entitled '~imitationa Upon the Right to Partition and Severancell shall forthwith revive. Section 7 -Compliance with Condominium Plan. Any reconstruction undertaken pursuant to thi. Article shall subatantially conform to the CondominiUlll Plan, as amended pursuant to the Section entitled "Amendment of CondominiUZl Planlf of this Article, or othervi-se, -if appropriate. Section 8 -Negotiations with Insurer. The Board shall have full authority to negotiate in good faith with representatives of the insurer of the totally or partially destroyed Condaadnium Building or any other portion of the Common Area, and to make .ettlement with the insurer for less than full insurance coverage OD the d ... ge to the Condominium Building or any other portion of the Common Are.. Any .et.lament _de by the Bo.rd in good faith ahall be binding upon all OWner.. . Section 9 -Repair of Units. Installation of improvements to, and repair of any damage to, the interior of • Unit ahall be made by and at the individual expense of the owner of that Unit and. in the event of a determination to reconstruct after partial or total de.eruction, shall be completed u promptly aa practical and in a lawful and vorlaDanl.ika manner. Section 10 -Amendment of Condominium Plan. In the event_ that reconstruction is to take place pursuant to this Article, the Board shall have the power to record an mendment to the Condominium Plan so that the Condominium Plan conforms to the Condominium Building. aa designed to be reconstructed; provided, however, the Board ahell not file an .... ndlHn. '0 the CoodaadniUlll Plan without the prior authorization of the MOrtgagee of a Mortgage encumbering any Condominium, the plan of which aball be altered by such amendment. In the event that the Board, together with said Mortgageea, if appropriate, decide to record such amendment to the Condominium Plan, all Owners within the affected Project and the record holder. of all security interasts in said ?roject ahall execute and acknowledge .aid amendment so thet it will coaply with Sec'ion 1351 of the california Civil Cod. or any similar statute then in eff.ctt Said OWners and holders of security intereats shall also execute such other documents or take such other actions as required to make auch amendment effective. Section 11 -Reconatruction of Community V.ciiitie. or Common Area. If Community Vaciliti.a or Common Area other than a Condominium Building ia totally or par- I tially d.atroyed, the Board shall cauae reconstruction to commence by the earlier of (i) thir.y (30) days of .he Associa.ion's receipt of the insurance proceeds I payable by reason of such destruction, or (ii) ninety (90) days after each I destruction, and to thereafter be diligently and continuously prosecuted to completion within a reasonable period of time. The Trustee shall pay to the Board all insurance proceeds payable by reason of such destruction and the Board II shall apply such proceeds to the costa of reconstruction. In tho event that the ~,:.~i~no:s=ur;;a=n~c;;e~p;;r~o~c~e~e~d!"._a;;r;;e_n;;o;;t_';;U;;f;;fi;;C;;i;;e;;n;;t_~;;0;;4;;P;;.;;Y~t!"h;;e-:oc~o;;a;;';;;._0;;;f~r;;e;;co;;n;;a;;tlir;;U;;Clit~i;;o;;n_O!"f~t~h~e ... 91/S-24-79 CC&R'. Island Lagoon Homeowners Association BA63a7-S 2S6-91 (2-25-S0) '.-:-- ( ) Community Facilities or Common Area, the Board shall levy a Reconstruction Assessment against all Owners in the Project which suffered such damage to its Common Area in a total amount equal to such difference and in the case of Co~ munity Facilities, a similar Reconstruction Assessment shall be levied against all Members. 1£ the insurance proceeds exceed the cost of reconstruction, the Board shall in the CAse of Common Area, distribute the excess in equal shares to each Owner in such Project or to their Mortgagees a8 their interests may appear, and in the case of Co~~ty_Facilit1es, to 811 Owners. Section 12 -Availability of Labor and Material. In determining whether the plans for a reconstructed Condominium Building are in substantial conformance with the Condominium Plan, the Board may take into consideration the availabil~y and espanaa of the labor and materials in the original construe tion of the Project. If such labor or material. i8 not available or is prohibitively expenaive at the time of reconstruction, the Board may permit the substitution of other labor or material 8S it deems proper. Section 13 -Contracting for Reconstruction. In tbe «vent repair or reconstruc- tion 1a undertaken pursuant to tbis Article, other than the Section entitled IlRepair of Unita" hereof, the Board or its delegates shall have the sole ability to contract for sucb work as may be necessary for said repair and reconatruction. Section 14 -Seventy=Five Percent (75%) Vote Required. All insurance proceeds available from any total or partial destruction shall be applied to the purposes set forth in this Arttcle, ·unl ..... otherwise .pecified pursuant to the vote or written assent of not l.s. than seventy-five percent (75%) of the Ftrst Kort- gageea baaed on one (1) vote for each Firat Mortgage bald thereby and the neceaaary governing agenciea~ approval such as City Planning Director and City Attorney, I.a.W.D., and County of Orange. Section 15 -Costa of Collecting lnaurance Proceeda. If it Ibould become neces- sary 1n the judgaent of the Board to incur coats for appraisals, legal f88a, court costl and similar expenses in order to determine or collect inaurance proce.ds, such coat. ahall be first deducted before diatribution or application of lnlurance proceeds as provided in this Article. 91/8-24-79 CC&R's BA63a9 9-5 Island Lagoon Homeowners Association 286-91 (7-11-80) ---~~.-.---~~-.--~----... - · ........... ---- ARTICLE X EIIINENT DOIlAIN Section 1 -Definition of Tak.ins. The term "t.kingll ... used in this Article shall mean condemnation by eminent domain, or by sale under threat thereof, of all or part of the Covered Property. Section 2 -Representation by Board in Condemnation Proceeding. In the event of a taking, the Board sball, subject to the right of all Kortgagees who have requested the right to join the Bo4rd in the proceeding., represent all of the Kembers in an action to recover all awarda. No Kember shall challenge the good faith exercile of the discretion of the Board in fulfilling its duties under this Article. The Board is. further empowered, subject to the limitations hereip, al the sole-representative of the Members, in all .spects of condemna- tion proceedings not specifically covered herein. Section 3 -Award for Condominium. In the evant of a taking of Condominiums, the. Board shall distribute the award forthcOMing from the taking authority according to the provisions of thi. Section after deducting therefrom fees and expen.el related to the condemnation proceeding including, witbout limitatiou, fees for attorney. and appraisers and court costs. In the event that the taking is by judgment of condemnation and said judgment apportion. the avard &mOng the ~er3 and th.ir relpective Mortgasee., the Board shall distribute the amount remaining after .uch deductiona among.such OWner. and Mortgagees on the allocation b~is set forth in such judgment. In the event that the taking i. by sale under threat of condemnation, .or if the judgment of condemnation fails to apportion the award, the Board shall diltribute the award among the Owners in the Project in which the taking occurs and their respective Kortgagees based upon the relative values of the CondominiuMs affected by such taking a. determined by: (i) an independent apprailal conducted by an K.A.I. appraiser selected by the Board and (ii) tbe degree to which each Condominium ha. been affected by the taking. The d6termi- nation by the Board II to the degree each Condominium hal been affected by the taking shall be final and binding on all Owners and Kortgagee.. Nothing contaioed herein shall entitle an Owner to priority over a Mortgagee of his Condominium II to the portion of the condemnation award allocated to his Condo- mlDlum. In no event shall any portion of such award be distributed by the Board" to an Owner and/or the Mortgagees of his Condominium in a total amount greater than the portion allocated hereunder to such Condominium. Section 4 -Inverse Condemnation. The Board is authorized to bring an action in inverse condemnation. In such event, the provisions of this Article shall apply with equal force. Section 5 -Revival of Right to Partition. Upon a taking which renders more than fifty percent (50%) of the Condominiums in any Project incapable of being restored to at least ninety-five percent (95%) of their floor area and substan- tially their condition prior to the taking, the right of any Owner within such Project to partition through legal action as described in the Article hereof en- titled 'tt.imitationl Upoo the Right to Partition and SeveranceH shall forthwith revive. The determination as to whether Condominiums partially taken are capable of being so restored shall be made by the Board} whose decision shall be final and binding on all Owners and Mortgagees. Section 6 -Awards for Members! Personal Property and Relocation Allowances. Where .11 or part of the Covered Property is taken, each Member shall have the exclusive right to claim all of the award made for his personal property, and any relocatioo, moving expense, or other allowance of a similar nature designed to facilitate relocation. Notwithstanding the foregoing provisions, the Board shall represent each Member in an action to recover all awards with respect to such portion, if any, of Members I personal property as is at the time of any taking, as a matter of law, part of the real estate comprising any Condominium, and shall allocate to such Member so much of any awards as is attributable.in the taking proceedings, or failing such attribution, attributable by the Board to such portion of Members' personal property. 91/8-24-79 CC&R'. BA63al0-11 10-1 Island Lagoon Homeowners Association 286-91 (8-21-79) I '-.../, Section 7 -Notice to Members. The Board, immediately upon having knowledge of any taking or threat thereof with respect to the Covered Property, or any portion thereof, shall promptly notify .11 Hembers. Section 8 -Change of Condominium Interest. In tbe event of a taking, and notwithltanding the Section entitled "Amendmenta ll of the Article herein en- titled "General Provisions," the Board may amend the Condominium Plan.to reflect the change in the Project or Projects affected by a taking. In the event that tbe Board decides to record such amendment to the Condominium Plan, all Owners within such Project or Projects and the record' holders of all security interests in such Project or Projects sball execute and acknowledge said ~ndment so that it will comply with Section 1351 of the California Civil Code or any similar statute then in effeet. Said Owners and holders of seeurity interests shall ale a execute sueh other documents or take eueh other actions as required to make sueh amendment effeetiv-e. The Itoard shall cause a notice of cl1ange in the·-Condoainium Plan to be sene to each Owner and Mortgagee in such Project or Projects within ten (10) days of the fil-iug of sueb amendments in the County Recorder l s-Office of Orange County, California. Section 9 -Award for Community Facilities. Any awarda received on account of the taking of Community Facilities shall be paid to the A.sociation. The Board may in its· .ole di.cretion retain any award in .the general funds of the As.ocia- tion or distribute pro rata all or a portion thereof to the Member.. The rights of an Owner and the Mortgagee of his Re.idence as to any pro rata distribution shall be governed by the provision. of the Mortsag. encumbering luch Residence. 91/8-24-19 CC&R's BA63al2 10-2 Island Lagoon Homeowners Association 286-91 (8-21-19) ARTICLE XI USE RESTRICTIONS Section 1 -Commercial Use. Subject to the Section entitled IICon.truction and" S.les" of the Article hereof entitled 'txasementsn, no part of • Residence shall be used or caused to be used or allowed or authorized in any way, directly or indirectly, for any business, commercial, manufacturing, mere.u"tile, atoring, vending, or any nonresidential purposesj provided, however, that the A •• oci.tion shall have the right to provide or authorize such services on the Common Area or Community F.ciiitie •• s it deema appropriate for the enjoyment of the Common Area or Community Facilities or for the benefit of the Members. Section 2 -Signl. No aign or billboard of any kind shall be di.played to the public view OD any portion of the Covered Property except such signa as may be used by Declarant or itll lIalel agents in connection witb the development of the Covered Property and .ale of the Rellidencelj provided, however, that a Member may display in hil Re.idence, a sign advertising its lale or le.se by hLD so long .s such lIign IIball comply vith any cUlltomary and rea.onable standards promulgated by the Board as to the size, color, shape or other qualification for permitted. signs. Section 3 -Nuilance. No noxious or offenaive trade or activity shall be carried on upon any Residence, or any part of the Covered Property nor shall anything be done thereon-which may be, or may become an annoyance or nuisance to the neighborhood, or which ah.ll in any vay interfere vith the quiet enjoy- ment of each of the Owners af his respective Residence, or which .hall in any way incre •• e the rate of in.urance on any Residen~e or the Covered Property. Section 4 -Temporary Structures. No structure of a temporary character, trailer, ba.ement, tent, shack, garage, barn or other out-building shall hereafter be used on any Reaidence at any time, either temporarily or permanently. Section 5 -Vehicle.. No trailer, camper, boat or similar equipment shall be permitted to remain upon the Covered Property, including, without limitation, Icreetl, alley. or driveway., unles. placed or maintained within an enclosed area, or unlel. ob.cured from view of adjoining Relidences, street •• or alleys by a fence or appropriate screen, nor permitted to be parked other than temporarily, pn any .treet, alley, or any other portion of the. Covered Property. Temporary parking shall mean parking of vehicles belonging to guests of Ownerl, delivery truckl, service vehiclel and other coa:aercial veh·icles being u.ed in the fur- nishing of service. to the Alsociation or the Owners and parking of vehicles belonging to or being u.ed by Owners for loading and unloading purposel~ The Board may adopt rules for the regulation of the admission and parking of vehicles within the Covered Property, including the as.e.sment of charges to Owners who violate or whOle invitees violate, .uch rule.. Any charges so asses.ed shall be Special AISel8ment.. Any fence or screen required under this Section shall coaply with any standards promulgated pursuant to the Article entitled IIArchi- tectural Control" of this Declaration al to size, color. or other qualification for permitted fencel or Icreen.. In addition, the Board may delignate areas: within the Covered Property for parking of camper. and I~ilar equipment without the requirement of fencing or screening. Section 6 -Ania.ll. No an~als, livestock or poultry of any kind. shall be railed, bred or kept upon the Covered Property~ except that dogs, cats or other household pet. may be kept on the Residencel, provided they are not kept. bred or maintained for any commercial purpOle, or in numbers de~ed unrea.onable by the Board. Notwithltanding the foregoing, no animals may be k~pt on the Resi- dence. which in the good faith judgment of the Board or a comqittee selected by the Board for thi. purpose, reault in an annoyance or are obnoxious to residents in the vicinity. All .n~ls permitted to be kept by thil Section shall be kept .on & lea.h wben on any port ion of the Covered Property except within a Re.idence. 91/8-24-79 CC&R'. BA63al3-14 Island Lagoon Homeowners Association 286-91 0-6-80 I . J I ) r) 1 , I Section 7 -Oil and Mineral Rights. No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted upon or in the Covered Property nor, ,ubeequent to the recording of this Declaration, sh.ll oil wella, tanks, tunnell, or mineral excavations or Shafts be in.talled upon the surface of the Covered Property or within five hundred (500) feet below the surface of such properties. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted upon the Covered Property. Section 8 -Unsightly Items. All weeds, rubbish, debris, or unsightly material or objects of any kind shall b~ regularly removed from the Residences and shall not be allowed to accumulate thereon', All clothesline., refuse containers, woodpiles, storage areas, machinery and equipment shall be prohibited upon any Residence unless obscured from view of adjoining streete or portions of the Covered Property from a height of six (6) feet or les8. Any fence or screen required by this Section shall comply with any standards promulgated pursuant to the Article. entitled .iArchitectural Control" of this Declaration as to siz:e, color or o~her qualification for permitted fences or screens., Section 9 -Antennae. No television, radio, or other electronic antenna or device of any type shall hereafter be erected, constructed, placed or permitted to remain on the Covered Property unless and until the same shall have been approved in writing by the Architectural Committee, or unless the same be con- tained within a building, Section 10 -Drainage. Ali drainage of water from any Residence shall drain or flow into adjacent streets, or alleya an~ shall not be allowed to drain or flow upon, acro •• , or under any other portion of the Covered Property uniesl an easement for .uch purpo.e is granted. Section 11 -Garages. No Garage door. for a temporary purpo.e, and the Board opening of Garage doors, including the or .whose invitees violate such rule •• ASlesslDents. shall be permitted to remain open except may adopt rules for the regulation of the aaaelsment of charges to Owners who violate Any charges so as.eased shall be Special Section 12 -Window Covers. Curtains. drapes, shutters or blind. may be in- stalled.a. window covers. No win~ow shall be covered with aluminum foil or similar material. Section 13 -CaLifornia Vehicle Code. The City !hall be allowed to Lmpose and enforce all provilion. of the applicable California Vehicle Code sections on any private street. contained within the Covered Property. Section 14 -Single-Family Residential. All Residences shall o?ly be used for the residential purpoles of a family. Seceion 15 -Rard Surface Flooring. Rard surface floor coverings including, but not limited to wood, ceramic tile, and surfaces such as non-cushioned asphalt tile, linoleum or vinyl shall be prohibited on upper levels of Units where such flooring, or portion thereof, i. located i.eediately above a Unit, or portion thereof, of another Owner. Such reacriccion in flooring material Ihall not apply in thOle inltance. where the upper and lover levels are a part of the same Unit. ~~~~~~~ _____________ 1l_-_2~~~~~~~~~~~~ ~1/8-24-79 CC&R's Island Lagoon Homeowners Association BA63a15-16 286-91 (5-15-81) dau together with the right of the Association to convey, lease or otherwise transfer, subject to the provisions of this Section, all or any portion of the Community Facilities to said district. (g) The right of the Association to grant easements on, over and under the Common Area to public utilities or governmental entities or agencies; provided that such easement shall not unreasonably interfere with the right of any Owner to the use and enjoyment of his Residence and the Common Area. No such e&Sement shall be effective unless an instrument signed by Members entitled to cast two-thirds (2/3) of the 'voting power of the Members residing in the Project in which the easement will be granted has been recorded agreeing to the granting of such easement. The certificate of the President and Secretary of the Association attached to such inatrument certifying that the Members signing such instrument represent two-thirds (2/3) of the voting power of the Members residing in the Project in which the easement will b~ granted shall be deemed conclusive proof thereof. . (h) The right of particular Owners to the exclusive use of Restricted Common Area as provided in the Article hereof entitled "Definitions.1t Section 2 -Delegation of Use. Any Member may ·delegate his right of enjoyment to the Community Facilities and Common Area .to the members of his family or his tenants who reside on his Residence, or to his guests, subject to rules and regulations adopted by tb, Board. Section l -Waiver of Use. No Member may exempt b~self from personal liability for Asses~ents duly levied by th~ A.,ociation, Qor release the Residence owned by him from the lieUl, charges and other provisions of tbis Decl~ration, the Article •• Bylaws and Association Rule~. by waiver of the use and enjoyment of the Community Facilities and Common Area. or the abandonment of his Residence. 91/8-24-79 CC&R'. BA63.19 12-2 Island Lagoon Homeowners Association 286-91 (8-21-79) ARTICLE XII RIGHTS OF ENJOYMENT Section 1 -Members' Right of Enjoyment. Every Member shall have a nonexclusive easement for use and enjoyment in and to the Common Area, regardless of the Project in which such Member is an Owner and such right shall be appurtenant to and shall pass with the interest required to be an Owner to every Residence, subject to all of the easements, covenants, condition., reltriction. and other provi.ions contained in this Declaration, including, without limitation, the following provisions: (.) The right of the Association to limit the number of guests of Members and to l~it the use of the Community Facilities by persons not in po.ses.ion of a Relidence, but owning a portion of the interest in a Relidenee required for membership. (b) The right of the Association to eltablish reasonable rulel and regula- tionl pertaining to the use of the recreational facilitie., if any, located On the Common Area or the Community Facilitie •. (c) The right of the Allociation to borrow money for the purpo.e of improving, replacing, re.toring or expanding the Community Facilities or adding new C~nity Facilitie. and in aid thereof,_ to mortgage said property, provided that the prior affirmative vote or written approval of a majority of each of the Cla •• A and the Cl ••• B Kember. ~al been obtained to mortgage .aid property, and provided further that the right. of the lender thereunder .hall be subordinated to the rights of the Members. In the event of a default upon any such mortgage of the Community Facilities, the lender t • rights thereunder sh.ll be limited to a right, after taking pOlselsion of such properties, to charge ad.ission and other fees a. a condition to continued enjoyment by the Members and, if neceslary, to open the enjoyment of the Community Facilitiel to a wider public until the mortgage debt i. sati.fied, whereupon the polle •• ion of such properties .hall be returned to the A'lociation and all rights of the Memberl hereunder shall be fully reltored. (d) The right. of the Allociation to SUI pend the right of a Member to ule the recreational facilitiel, if any, located on the Common Area or the Community Facilities Or any portion thereof delignated by the Board during any time in which any Aa.es~ent against hi. Relidence remainl unpaid and delin- quent or for a period not to exceed thirty (30) day. for any single infraction of the rule. and regulation. of the ASlociation, provided that Iny suspenlion of such right to ule .uch recreational facilities, if any, located on the Common Area or the Community Pacilities, except for failure to pay AIses~ent., shall be made _only by the Allociation or a duly appointed committee thereof, after notice and hearing given and held in accordance with the Bylaws. Notwithstanding the foregoing, the A.sociation shall not have the right hereunder to auspend Iny Memberla right to ule Iny Portion of the Covered Property neceslary for such Member to gain acce •• to hi. Residence. (e) The right of the Association subject to the approval rights of First Hortgagee. pur.uant to the Article hereof entitled "Rights of Lenderl", to dedicate or tranlfer all or Iny part of the Community Facilities to any public Igency, authority or utility'or other entity. No such dedication or transfer, including, without U .. itation, the conveyance, lease or ot-her transfer of any portion of the Community Facilities to a special tax a.ae.~ent di.trict or to the City, .hall be effective unlesl an instrument signed by Members entitled to ca.t tva-third. (2/3) of the voting pover of the membership ha. been recorded, Igreeing to luch dedication or tran.fer. The certificate of the Prelident and the Secretary of the A •• oeiation attached to such instrument certifying that the M~ber. signing luch in.trument represent two-thirds (2/3) of the voting power of the Association shall be deemed conclusive proof thereof. (f> The right of the Association to establish in cooperation with the City, a special tax Issessment district for the performance of III or a portion of the mlintenance and other functions now within the responsibility of the Association, 91/8-24-79 CC&R'. BA63al7-18 12-1 Island Lagoon Romeowners A,sOclation 286-91 (3-6-81) ) ~ . -'J r) all Residences within the Covered Property, and provided further that no such use by Declarant and others shall otherwise restrict the Members in the rea.onable u.e and enjoyment .of tbe ·Covered Property. (f) Utilities Shown on Tract Map. There i. hereby reserved to Declarant, together with the right to grant and transfer the same, easement. over the Covered Property for the installation and maintenance of electric, telephone, cabLe television, water, gas, •• nitary sewer linea and drainage facilities .a shown on the. recorded tract maps covering the Covered Property. (g) Public Bicycle and Pedestrian Trails. There is hereby reserved to Declarant, together with the right to grant and transfer the same, an easement for public ingre.s and egrea. over any bicycle, pedestrian, equestrian or other trails sbown on any recorded final tract or parcel map covering the Covered Property. The reservation of this easemeat shall not imply any right of public use of the Covered Property or improvement. thereof. Section 4 -Certain Eaaemeats for Owners. (.) Rights and Duties: ntilit"ies and Cable Television. Wherever sanitary sewer house connectiona, water house connections, electricity, s •• , telephone and cable television lines or drainage facilities are installed within the Covered Property, the OWner. of any Residence served by said connections, lines or facilities .hall have the right" and there is hereby reserved to Declarant, together with the right to grant and transfer the same to Owners an ealement to the full extent necessary for "the full use and enjoyment of such portion of such connections which service his Relidence, and to enter upon the Residences owned by others, or to have utility companiel enter upon the Residences owned by others, in or UPOQ which said connections, lines or facilities, or any portion thereof lie, to repair, replace and generally maintain said .connections as and when the same may be necelsary as "let forth below, provided that such Owner or utility company shall promptly repair any damage to a Residence cauaed by such entry as promptly as possible after completion of work thereon. (b) tnlresl, 8sre •• and Recreational RiBhts. Declarant hereby reaerves to itself, its successors and a •• igns. and agrees that it will grant to all Owner. nonexclu.ive easements for ingre •• , egre •• , pede.trian walkway and general recreatiooal purpole. over and upon the Community Facilities and" Common Area which is not Restricted Common Area. Such easements when granted to Owners .hall be subject to the rights of the Association as set forth in the Article hereof entitled HRights of Enjoymentl!, (~) Exclusive Restricted Common Area Easement. There is hereby reserved to Declarant, together w1th the right to grant and transfer the same, exclusive easements which shall be appurtenant to the Units, over the Restricted Common Area. The Unit shall be the dominant tenement and the" exclusive easement shall burden the Restricted Common Area as the servient tenement. Subject to the rights of the A.sociation as provided in the Section entitled "Repair and Main- tenance by Msoeiation" of the Article entitled IIRepair and Maintenancell of this Declaration, the benefit of such easement shall inure only to the Owners of Units indicated on the Condominium Plan an~ their families and guests. The easement of enjoyment over the Common Area granted to Members in the Section entitled IIIn- gress, Egress and Recreational Rightsl! of this Article shall not apply to those portions of the Common Area designated as Restricted Common Area. Section 5 -Certain Easements for Association. (a) Association Rights. There is hereby reserved to Declarant easements over the Covered Property, together with the right and obligation to grant and transfer the same to the AssociatioD, for the purpose of permitting the Associa- tion to discharge its obligations aa described in this Declaration. 91/8-24-79 CC&R'. BA63a22-23 13-2 Island Lagoon Homeowners Association 286-91 (3-6-80 ARnCLE XIII EASE!!ENTS Section 1 -Amendment to Eliminate Easements. Thi, Declaration cannot be amended to modify or eliminate the easements reserved to Declarant without prior written approval of Declarant and any attempt to do so shall have no effect. Any attempt to modify or eliminate this Section shall likewise require the prior written approval of Declarant. Section 2 -Nature of Easements. Unless otherwise set forth herein, any easement reserved to Declarant herein shall be nonexclusive. Section 3 -Certain Rights and Easements Reserved to Declarant. (.> Utilitiea. Easements over the Covered Property for the installation and maintenance of electric., telephone, cable television, water, gas, sanitary sewer linea and drainage facilities as are needed to service the Covered Property are hereby reserved by Declarant, together with the right to grant and transfer the same; provided, however, such easements shall not unre .. onably interfere with the use and enjoyment by the Members of their Residences or the Common Area and Community Facilitiel. eb) Cable Television. There is hereby reserved to Declarant over the Covered Property, together with the right to grant and transfer the same, the right to emplace on, under or across the Covered Property tranlmiuion lines and other facilities for a community antenna television system and thereafter to own and convey such lines and facilities and the right to Inter upon the Covered Property to aervice, maintain, repair, reconstruct and replace said lines or facilities; provided, nowever, that the exerei •• of such rights shall not unrea- sonably interfere with any Owner's realonable use and enjoyment of his Residence. (c) Oil and Mineral Rishtl. There i. hereby reserved to Declarant, together with the right to grant and transfer the lame, all oil, oil rights, mineral., mineral rightl, natural ga. rights, and other hydrocarbons by whatso- ever name known, geothermal steam, and all products derived from any of the foregoing, that ~y be within or under the Covered Property together with the perpetual right of drilling, mining, exploring and operating therefor and Jtoring in and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from land. other than the Covered Property, oil or gaa well., tunnel. and shafta into, through or acro.s the .ublurface of tne Covered Property and to bottom such whipstocked or direction- ally drilled wells, tunnels and ahafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such well. or mine. without, however, the right to drill, mine, store, explore and operate through the lurface or the upper 500 feet of the sublurface of the Covered Property. Cd) Water Rights. There is hereby reaerved to Declarant with full right and paver, among others, to transfer or asaign to other. or to use or utilize on any other property owned or leased by Declarant, any and all water rights or intere.ts in water riahts no matter how acquired by Declarant, and oWned or used by Declarant in connection with or with relpect to the Covered Property, whether auch water right. shall be riparian, overlying, appropriative, percolating, prescriptive or contractual, provided, however, that the reservation made herein sball not rl.erve to or for the benefit of Declarant any right to enter upon the .urface of the Covered Property in the exercile of luch rights. ee) Conltruction and Sales. There i. hereby reserved to Declarant, together with the right to grant and tranJfer the lame to Declarant's aales agent I and reprelentative. and prospective purchaser. of R.lidence., over the Covered Property as the same may from time to time exilt, eaaements for construc- tion, display, maintenance, sal.1 and exhibit purposes in connection with the erection and .ale or leas. of Re.idencea within the Covered Property; provided, however, that such use .hall not be for a period beyond the sale by Declarant of 91/8-24-79 CC&R'. BA63.20-21 13-1 tsland Lagoon Komeowners Aaaociation 286-91 (8-21-79) ( ~ n ARTICLE XIV ANNEXATIONS The raal property delcribed on Exhibit C (hereinafter in this Article referred to u the "Annaation Prop.rtyll) and/or any other real property may be sunued to and become subject to this Declaration by any of the methods set forth herein- after in this Article, a. follows, Section 1 -Development of the Covered Property. Declarant intends to sequent- ially develop the Annexation Property On a phased basie; however. Declarant may elect not to develop all or any part of such real property, to aan~ such real property to this Declaration in incrementa of any. size whatsoever, or to develop more than one such increment at any given tfme and in any given order. Moreover, Declarant reserves the right to subject all or any portion of the Annuatlon Property to the plan of this Declaration or one or more separate decl~ratlon8 of covenants, conditions and restrictioua which subjects-_aid property to the jurisdiction and povers, of a "homeowners association or other entity with powers and obligation. similar to the Association and which is not subject to the provisions of this Declaration. Although Declarant shall have the ability to annu. the ADnuation Property a. provided in this Article, Declarant shall not be obligated to annex all or any portion of such property, and such property shall not become subject to this Declaration unless and until a Supplementary Declara- tion ahall have been 80 executed and recorded. Section 2 -Annexation Pursuant to Approval. Upon the vote or written assent of not leI. than sixty-six and two-third. percent (66-2/3%) of the Applicable Voting Power, any perl on who desires "to add real propertYt other than the Annexation Property to the plan of this Declaration and to subject luch proparty to the jurisdiction of tha ~80ciation, may fila of record a Supplementary Declaration. The provisiolUl of this Section shall also apply to the Annuation Property sub •• quent to the expiration of the power of Declarant to annes such property without the approval of the Members .a provided in this Article. ~. certificate of the Presid.nt and the Secretary of the Aaaociation attached to any Supplemen- tary Declaration recorded pursuant to this Section certifying that the required oixty-aix and tva third. percent (66-2/3%) of the Applioable Voting Power has approved the recordation of such Supplementary· Declaration shall be de~ed conclusive proof thereof. Section 3 -Supplementary Declarations. A Supplementary Declaration shall be a writing in recordable form. which mnues real property t9 the plan of this Declaration and which incorporates by reference all of the covenants, conditions, restrictions, e.sements and other provisions of this Declaration and shall contain such other prOVisions aa sat forth in this Declaration relating to Supplementary Declarations. Such Supplementary Declarations contemplated above may contain such complementary additions and modifications of the covenants, conditions and restrictions contained in this Declaration as may be necessary to reflect the different character, if any, of the annexed property and a8 are not inconsistent with the plan of this Declaration. In no event, however t ahall any such Supplementary Declaration, or any merger or consolidation, revoke, modify or add to the covenants established by this Declaration with respect to the existing property. Section 4 -Annexation Without Approval and Pursuant to General Plan. Allor any part of the Annexation Property may be annexed to and become subject to this Declaration and subject to the jurisdiction of the Association without the approval, allent or vote of the Association or its Members, provided that a Supplementary Declaration covering the portion of the Annexation Property to be annexed, shall b. azecuted and recorded by Declarant; provided, however, the annexation must be effected prior to the third anniversary of the original issuance of the most-recently-issued Final Subdivision Public Report for a Phase of the Development. The recordation of said Supplementary Declaration shall constitute and effectuate the annexation of the said real property des- cribed therein, making said real property subject to this Declaration and subject to the functions, powers and jurisdiction of the AsSOCiation, and there- after said annexed real property shall be part of the Covered Property and all of the Owners of Residences in said annexed real property shall automatically be Members. 91/8-24-79 CC&R's BA63a26-27 14-1 Island Lagoon Homeowners AssociatLon 286-91 (7-11-80) (b) ·Rights and Duties: Utilities and Cable Television. Wherever sanitary sever house connections, water house connections, electricity, gas, telephone and cable television lines or drainage facilities are installed within the Covered Property) and said connections, lines or facilities serve the Community Facili- ties, the Association shall have the right and there is hereby reserved to Declarant, together with the right to grant and transfer the same to the Asso- ciation an easement to the full extent necessary for the full use and enjoyment of such portion of such connections which service the Community Facilities and to enter upon the Residences owned by others~ or to have utility companies enter upon the Residences owned by others, in or upou which said connections, lines or facilities, or any portion thereof lie) to repair, replace and generally maintain said connections 8S and when the same may be necessary as set forth below) pro- vided the Association or utility company shall promptly repair any damage to a Residence caused by ·such entry as promptly as possible after completion of work thereon. Section 6 -Support, Settlement and Encroachment. There is hereby reserved to Declarant, together with the right to grant and transfer the same to Owners, the following reciprocal easements for the purposes set forth belov: (a) An easement appurtenant to each Residence which is contiguous to another Residence or Common Area or Community Facilities which Residence shall be the dominant tenement and the contiguous Residence or Common Area or Community Facilities shall be the servient tenement. (b) An easement appurtenant to the Common Area or Community Facilities contiguous to a Residence, which Common Area or Community Facilities shall be the dominant tenement and which contiguous Residence shall be the servient tenement. (c) An easement appurtenant to the Community Facilities which are contiguous to Common Area, which Community Facilities shall be the dominant tenement.and which Common Area shall be the servient tenement. (d) It i. provided, however, that in the event Community Facilities are the dominant tenement in an easement de.cribed in this Section, Declarant shall have the right to transfer said ease=ent to the Association and Dot to Owner •• (e) Said easements shall be for the purposes of: (i) support and accommodation of the natural settlement of structures (ii) encroachment by re.son of • roof or eave overhang from. Residence and for the maintenance of such roof or eave overhang by the Owner of the dominant tenement; (iii) encroachment of fireplaces, doorsteps, foundation footings, garage doors, utilities and other appurtenances Or fixtures and the maintenance thereof by the OWner of the dominant tenement, which, in the construction of the structures upon the dominant tenement or from any reconstruction or modifications of such structures, project beyond the external surface of the outer walls of such structures. 91/8-24-79 CC&R'. BA63.24-25 .---c--. -, •. -- 13-3 I.land Lagoon Homeowner. Association 286-91 (8-21-79) ,~- I ) ~ /-.. ) ARTICLE XV RIGHTS OF LENDERS Section 1 -F1110g Notice; Notices and Approvals. A Mortgagee shall not be entitled to receive any notice wbich this Declaration requires the Association to deliver to Mortgagees unless and until such Mortgagee, or itB mortgage servicing contractor, has delivered to the Board a written notice stating that such Mortga- gee is tbe holder of a Mortgage encumbering a Residence within the Covered Property_ Such notice need not state which Residence or Residences are encum- bered by such Mortgage, but shall state whether such Mortgagee 1s a First Mortga- gee. Wherever the approval of all or a specified percentage of Mortgagees is required pursuant to this Declaration, it shall be deemed to mean the vote or approval of all or a specified percentage only of thoae Mortgagees which have delivered such notice to the Board. Notwithstanding the foregOing, if any right of a Mortgagee unde-r this Declaration is conditioned on a specific written request to the Association, in addition to having delivered the notica provided in this Section, a Mortgagee muat also make such request, either in a separate writing da1ivered to the Aaaociation or in the notice provided above in this Section, in order to b. entitled to luch right. Except 88 provided in this Section, a Mortgagee's rights pursuant to this Declaration, including, without limitation, the priority of the lien of Mortgages over the lien of Assessments levied by the Association hereunder shall not b. affected by the failure to deliver a notice to the Board. Any notice or request delivered to the Board by a Mortgagee s~all reaain effective without any further &etion by such Mortgagee for so long aa the facts set f~rtn in such notice or request remain unchanged, Section 2 -Priority of Mortgage Lien. No breach of the coveaanta, conditione or restriction. herein contatned, nor the enforcement of any lien proviaione berein, lhall affect, impair, defeat Of render invalid the lien or charge of any Firat Martsas_ ude in good faith and for value encUSlber1ng any ReSidence, but all of said covenants, conditioua and r •• trictione shall be binding upon and effective againat any OWner who.e' title 18 derived through foreclolure or truate."',B Bale, or otherwise, vith relpect to a R.esid81lce u:cept .. otherwise provided in this Article. Section 3 -CuriRg Defaults. A Mortgag.e Or the immediate tranaferee of BUch Mortgase., who acquirel' title by judicial foreclosure, deed in lieu of foreclosure or trute.". 8&le lhall not be obligated to cure any breach of the provisions of this Declarati011 which U 1I000curable or of a type which U 110t practical or . feasible to cure. Tb. determill&tioll of the lloerd IUd. in good faith .. to whetber a breach is noncurable or not feasible to cure shall be final and binding on all Mortgage.a. Section 4 -Resale. It is intended that any loan to facilitate the rea ale of any Residence after judicial foreclosure, deed in lieu of foreclolure or trustee's .ale 10 a loall made in good faith Slid for value and entitled to all of the right. and protectiona afforded to other Mortgagee., Section 5 -aelation.hip vith ~.essment Liens. (a) The liell provided for in the Articl. hereof entitled '~onpayment of AIIsesallenta" for the payraent of Mselamentl sball be subordinate to the lien of any Firat Mortgase which va. recorded prior to the date any such Assessment becomel due. (b) If any Residence subject to a monetary lien created by any provision hereof Iball be subject to the liln of I P1rlt MOrtgage, (1) the foreclosure of any lien cr .. ted by anything set forth in this Declaration shall not operate to affect or impair the lien of such Firat Mortgage; and (2) the foreclosure of the lien of said Firlt Mortgage t (such eventa being bereinafter referred to as "Eventa of Foreclolurell ) shall not operate to affect or impair the lien hereof, escapt that any persona who obtain an interest through any of the Events of Foreclosure, and their 8UCCessors in interest, shall taka title free of the lien 91/8-24-79 CC&R'. BA63a29-bl 15-1 laland Lagoon Homeowners Association 286-91 (7-11-80) Section 5 -Mergers or Consolidations. Upon a merger or cOQBolidation of the Association with another allaociation which merger or· couolidation cauat be approved by sixty-.ix and tvo-third. percent (66-2/3%) of the Applicable Voting Power, the ~aociation'. properttea, rights and obltgationa may, by operation of law, be transferred to the surviving or consolidated association, or, alter- natively, the properties, rights and obligations of another 48aociatiou may, be oparation of lav, be added to the propertiea, rigbta and obligations of the AssOCiation aa a surviving corporation pursuant to a marger. The surviving or consolidated association may administer the covenants, conditions and re- strictiona established by this Declaration within the Covered Property, together with the COVenants and reatrlctiou. established upon any other property aa one plan. Section 6 -Limitation Upon Annexation. Notwitbatanding the foregoing SectioQB of this Arttcle, unlesa there haa been approval thereof by a ujority of the Applicable Voting Povar, no annexation of additional real property to thi. Declaration, ahall have the effect of either overburdening the common interests of the then exiating OWners, except .. sat forth in thi. Declaration or aub- at_ntially increa.ing the !as.aaaents of auch Owners if such increase haa not beon dilclo.ed in the California Department of Real Estate'. Final SubdiVision Public Report applicable to such Owner'lI Residence. 91/8-24-79 CC&R'. BA63a28 14-2 Island Lagoon Homeowners Association 286-91 (7-11-80) .:-.... { } Section 7 -Other Rights of First Mortgagees. Any First Mortgagee or its mortgage servicing contra~tor, shall, ~pon written request to the Association, be entitled to: (8) Inspect the books and records of the Association during normal business hoursj (b) Receive the annual audited financial statement of the Association ninety (90) days following the end of the Association 1 s fiscal year; (c) Receive written notice of all annual and special meetings of the Members- or of the Board, and First Mortgagees shall further be entitled to designate a representative to a~tend all such meetings in-order to, among other things, draw attention to violatioDs of this Dec·laration which have not been corrected or made the subj"ect of remedial action by the Associationj provided, however, fl:0thing concained in Chis Secc'ion shall give a First MorCgagee Che right to call a meecing of the Board or of the Members for any purpose or to vote at any such meeting; and (d) Receive written notification from the Association of any default in the performance of the Obligations imposed by this Declaration by the Owner whose Residence is encumbered by such First Morcgagee's Mortgage, which default haa not been cured within thirty (30) days of' a request therefor by the Associa- tion; provided, however, tbe Association shall only be obligated to provide such notice to First Mortgagees who have delivered a written request therefor to the Association specifying the Residence or Residences to which such request relates. Section 8 -Mortgagees Furnishing Information. Mortgagees are hereby authorized to furnis~ information to the Board concerning the status of any Mortgage. Section 9 -Right of First Refusal. In the event this Declaration is amended to provide for any right of first refusal to purchase or lease a Relidence in the Associatiou, a Mortgagee who comel into poIse.sion of a Residence pursuant to a judicial foreclosure, a deed in lieu of foreclosure or a trustee's sale shall be exempt therefrom. In addition conveyances to and from th-ird party foreclosure purcha.er. and mortgage insurers and guarantors shall alIa be exempt. Section 10 -Conflicts. In the event of any confiict between any of the provis- ions of this Article and any of the other provisions of this Declaration, the provisions of this Article shall control. Section 11 -Notice of Destruction or Taking. In the event that any Condominium, Common Area or Community Facilities and any Uaprovements thereto or any portion thereof is damaged or is made the subject of any condemnation proceedings in eminent domain or is otherwise sought to be acquired by a condemning authority, the Board shall promptly notify any First Mortgagee affected by such destruction, taking or threatened taking. Aa used herein, "damaged" or "taking"· shall mean damage or taking to the Common Area or Community Facilities exceeding Ten Thousand Dollars ($10,000.00) or damage or taking to a Unit exceeding One Thousand Dollars ($1,000.00). If requested in writing by a First Mortgagee, the Association shall evidence its obligations under this Section in a written agreement in favor of such First Mortgagee. Section 12 -Payment of Taxes or Premiums by First Mortgagees. First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which mayor .have become a charge against the Common Area or Community Facilities, unless such taxes or charges are separately assessed against the Owners, in which case the rights of First Mortgagees shall be governed by the provisions of their Mortgages. First Mortgagees may, jointly or si~gly, also pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy) for the Common Area or Community Facilities and First Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association. Entitlement to such reimbursement shall be reflected in an agreement in favor of any First Mortgagee which requests the same to be executed by the Association. 91/8-24-79 CC&R'. BA63b4-5 15-3 Island Lagoon Homeowners Association 286-91 (7-11-80) personal obligation for said charges as shall have accrued up to the time of any of the Events of Foreclosure, but subject to the lien hereof for all said charges that shall accrue subsequent to the Events of Foreclosure. (c) Any First Mortgagee who obtains title to a Re.idence by. reason of 4ny of the Events of Foreclosure, or any purchaser at a private or judicial foreclosure sale under and pursuant to the terms of a First Hortgage shall take title to such Residence free of any lien or claLm for unpaid Assessments against such Residence which accrue prior to the time such First Mortgagee _or purchaser takes title to such Residence, except for liens or cla~. for a share of such Assessments resulting from a pro rata reallocation of such AssesBments to all Residences within the Covered Property. (d) Nothing in this Section shall be construed to release any Owner from his obligations to pay for any A.ses5ment levied pursuant to this Declaration. ::s=e'ic=t:i"on=,.6.,-~S:,e:.v::.~n::t:::-::F:iirv"e:TP"e;;r"c"ie",n".:t:=:(,,-7-:5,,%.;;) ,:v=o~t e::.:0r.;,f ;:F~i=,r::.::t=-=:M;;o"r:;t'tiameC'e::.:7' Exc e 11 t upon the pr10r wr1tten approval 0 at east seventy-1ve percent of First Hortgagees, based on one (1) vote for -each First Mortgage held, neither the Association nor the Members shall be entitled to do any of tbe following: (a) Abandon or terminate by any act or omi'lion the condominium legal status of the Covered Property, or any part thereof, except for abandonment or te~ina­ tion provided by law and/or this Declaration in the case of substantial destruc- tion by fire or other calualty or in the case of a taking by condemnation or eminent domain; (b) Dillolve the Association or abandon or terminate the maintenance of the Community Facilitiea by the ASlociatioD; or (c) Amend a material provision of thi. Declaration, the Bylawa or the Articles. A material provision of such documents shall be defined al thoa. provilionl governing the following subject.: (i) The.percentage interelt of the Unit Owners in the Common Area of the Project; (ii) The fundamental purpoo. for which the Project va. created; (iii) Voting; (iv) AIsea~entsf aSles~ent liene and aubordination thereof; (v) The reserve for repair and replacement of Community Facilitiel or Common Area; (vi) Property maintenance obligations; (vii) Casualty and liability insurance; (viii) Reconltruction in the event of damage or destruction: (ix) Right. to us. the Community Facilities or Common Area: (x) Annexation; (xi) Any provilion, which by its terms, is specifically for the benefit 'of First Mortgagees, or specifically confers rights on First Mortgagt es • (d) Effectuate Iny decision to terminate profelsional management Ind assume self-management of the Covered Property; (e) Abandon, partition, sell, alienate, subdivide, releale, transfer, hypothecate or othervile encumber the Common Area or Community Faciliti.'j provided, however, the granting of easement. for public utilitiea or other public purpose. conlistent with the intended use of the Common Area or Community Facili- ties shall not require such approval. (f) Partition or subdivide a Unit or any elements thereof; (g) Change the Ownership interest of the Condominium as provided in the Section entitled "Condominium" in the Article hereof entitled "Definitiona", 91/8-24-79 CC&R 0 BA63b2-3 15-2 Is an agoon OlI1eowners saoclatl-on 286-91 (3-6-81) () ARTICLE XVI I LlHlTATIONS UPON THE RIGHT TO PARTITION AND SEVERANCE Section 1 -No. Partition. The right of partition is hereby suspended, except that tbe right to partition shall revive and the Project may be sold as a whole when the conditions for such action set forth in the Articles hereof entitled 'txleatruction of Iaprovementalt and "Eminent Domain" have been met; provided, however, notwithstanding the foregoing, any OWner may, upon the prior written approval of the ?irst Mortgagee of the Pirat Mortgage encumbering his Condo- minium, bring an action for partition by sale of the Project in which his Condominium i. located, a. providad in Section 1354 of the california Civil Code or any Similar statute then in effect upon the occurrence of any of the events therein provided. Provided. further. thet 1£ any Condominium .hell be owned by two (2) or mora co-tenants, nothing herein contained sball b. deemed to prevent a judicial partition aa between such co-tenants. Section 2 -No Severance. The elements of a Condoainium and other rights appur- tenant to the ownership of a Condominium are inseparable, and each OWner agrees that he sball not, while this Declaration or any similar declaration is in effect, make any c-ouveyance of la88 than an entire Condoa.iniUli and such appur- tenances. Any conveyanca made in contravention of this Section shall be void. The provision. of this S.ction shell terminate on the date thet judicial parti- tion shall be decread. Section 3 -Proceeds of Partition Sale. (a) Whenever an action 1.8 brought for the partition by .al. of a Project. whether upon the occurr.nce of any of the events provided in Section 1354 of the California Civil Cod. (or similar otatut. th.n in .ffect) or upon the revival of the right to partition purauant to the Article. hereof entitled "Destruction of Improvesents" or "!ainent DoMin", tb. OWnera of CondOldn1\S8 in such Proj tct .hell .here in the proc.ada of such oal. in the .eae proportion .. their int.re.t in auch Project. Aa u.ed in the faregoiDa aentence, auch intereat of aach OWner shell b. d.termined by cootparing (i) an independent eppreioal of an Owner' a Condominium conducted by an M.A.I. appraiser •• lected by the Board to (ii) the total of the apprei.ad valu .. for all CondoadniUlllS in .uch Project. (b) The distribution of the proceeda of any oUch partition oal. shall be adjusted as necessary to reflect any prior diatributioD of in.urance proceeds or condemnation avard .. may have been made to Owner. and their Mortgageea pursuant to the Article. hereof entitled "Destruction of Improvementsll and "Eminent Do- "mainlt • In ,the event of any such partition and sale, the liens and provisions of all IIortgage. or As ....... nt liens encumbering CondoadniUlllS within the Project or Projects so encumb.~ed sh.ll est.nd to each applicable OWner'. interest in the proceeds of such partition and aale. The interest of an Owner in such proceeds shall not be distributed to such Owner except upon the prior payment of any Mortgage or Assessment lien encumbering such proceeds as aforesaid. 91/8-24-79 CC&&'. BA63b8-9 17-1 Island Lagoon Homeowners Association 286-91 (7-11-80) r"'\ I () ARTICLE XIX GENERAL PROVISIONS Section 1 -Enforcement. The Association, or any Owner, shall have the right to enforce by proceedings at law or in equity, all restrictions, conditions, cove- nanta and reservation., DOW· or hereafter imposed by the provisions of this Declaration or any amendment thereto, including the right to prevent the viola- tion of any such restrictions, conditions, covenants, or reservations and the right to recoVer damages or other dues for such violation. The Association or any Owner shall also have the right to enforce by proceedings at taw or in equity the provisions of the Articles. or Bylaws and any amendments thereto. With respect to architectural control, Asses.ment liens or any other· liens or charges an~ Association Rules, the Association shall have the exclusive right to the enforcement thereof. Section 2 -No Waiver. Failu~e by the Association or by apy Member to enforce any covenant, condition, restriction or reservation herein contained, or the Articles, Bylaws or Association Rules, in any certain instance or on any particular occasion shall not be deemed a waiver of such right on any such future breach of the same or any other covenant, condition, restriction or reservation. Section 3 -Cumulative R~edies. All rights, options and remedies of Declarant, the Association, the Owners or Hortgagees under this Declaration are cumulative, and not one of them shall be exclusive of any 'other, and Declarant, the Associa- tion, the Owners and the Hor~gagees shall have the right to pursue anyone or all of such rights, options and remedies or any other remedy or relief which may be provided by law, whether or not stated in this Deelaration. Section 4 -Severability. Invalidation of anyone or a portion of these cove- nants, conditions, restrictions or reservationl by judgment or court order shall in no way affect any other provisions which shall r~ain in full force and effect. Se~tion 5 -Covenants to Run with the Land; Term. The covenants, conditions, restrictions or reservations of this Declaratioo" shall run ·with and bind the Covered Property and shall inure to the benefit of and be enforceable by the Association or any Owner, their respective legal representatives, ~eirs, suc- cessors and assigns, for a term of sixty (60) years from the date this Declara- tion is recorded, after which time said covenants,' condition. &n.d res tric·t ions shall be automatically extended for successive periods of ten (10) years, unless an instrument, signed by a majority of the then Owner. and seventy-five percent (75%) of the First Mortgagees, based on one (1) vote for each First Mortgage held, has been recorded at least one (1) year prior to the end of any such period, agreeing to change said covenants, conditions, restrictions and re- servations in whole or in part. Section 6 -Construction. The provisions of this Declaration shall be, liberally construed to effectuate its purpose of creating a plan for the development of a residential community or tract and for the maintenance of the Covered Property. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or conltruction. Section 7 -Singular Includes Plural. Whenever the contex~ of this Declaration require I same, the singular shall include the plural and the masculine shall include the feminine and the neuter. Section 8 -Nuisance. The result of every act or omission, whereby any provision, condition, restriction, covenant, easement, or reservation contained in this Dec- laration is violated in whole or in part, is hereby declared to be and consti- tutes a nuisance, and every remedy allowed by law or equity against a nuisance, either public or private, shall be applicable against every such result, and may be exercised b:t the Association or any Member. Such remedy shatl be deemed cumulative and not exclusive. 91 8-24-79 CC&R. BA63bll-12 19-1 Island Lagoon Homeowner's -Assocl"atlon" 286-91 (5-15-81) dau ARTICLE XVI EFFECTS OF FEDERAL PROGRAMS Section 1 -FHA/VA. Although Declarant has not obtained the approval of FHA or VA in connection with the development of the initial Covered Property, such approval may be sought by Declarant with respect to real property which is subsequently annexed to tbe Covered Property pursuant to the Article of this Declaration entitled IIAnnexatioDs". In the event that the approval of FHA or VA 1s so sought for the purpose of having FHA and/or VA insure or guarantee any Mortgage or provide aoy form of assistance witbin the purview of such agencies with respect to the Covered Property, the rules and regulations of FHA and VA 8S the same exist at the date of recording of this Declaration require that FHA and/or VA participate in certain decisions affecting the entire Covered Property and the IUnagement· of the Association. ntis Article shall become effective immediately upon the date a Supplementary Declaration, or other document is recorded in the Official Records of Orange County, california stating that such FHA and/or VA approval has been obtained. Section 2 -FHA/VA Approval. approval of the FHA or VA, or gagee or guarantor or insurer The following actions will require the prior both, 80 long sa FHA and/or VA is an Owner, Kort- of any Mortgage within the 'Covered Property.' (a) Dedication or other transfer of any portion of the Community Facilities pursuant to the Articles hereof entitled ''Duties and Powers of the Association" and "Ughts of Enjoyment't.-; (b) Alteration of the Community Factltties or the Residences, construction of additional improvements, the ~tablishaent of additional licenaes, reserva- tions and rights-of-way, or alteration of construction plans and designs, all pursuant to the Section entitled "Conltruction by Declarant" of the Article of thi. Declaration entitled ItGaural Proviaionslt • (c) Kargar. or conaolidatlona of the Association pursuant to the Article hareof entitled "Annaxatloua.1t (d) Any amendment or modification of this Declaration pursuant to the Section entitled ItAJIendment" of the Article of this Declaration entitled ''General Provisions"j Ca) Any amendment or modification of the Article. and Bylawa; and (f) Annexation of additional properties to the plan of this Declaration pur- suant to the Articla hereof entitled "Annexations"; (8) The A .. oc1ation shall submit for review and approval to 1IIA andlor VA sixty (60) daye prior to the beginning of each fiscal year of the AsSOCiation, a budget of the Coaaon Expanse. for the eu.uing fiscal year on an FHA and/or VA model form of budgat indicatina the .. aunt of the Regular Aasessments, and such submittal shall aleo include similar budgets for 1IIA/s andlor VAla review and approval for capital Improvement. or Reconstruction Assessmenta if such Assess- ment. are contemplatad for the next fiscal year period. Section 3 -Regulatory Agreement. If requested so to do by FHA and/or VA, the Board shall be aut01ll&tically authorized and shall be obligat.d to execute a Regulatory Air .... nt on 1IIA Porm No. 3278 (revised August 1969) or such later veraion thareof tben in uae or the analagoWl VA fora, or both ' .. modified to reflact any peculiarities pertaining to the Covered Property .a shall be deemed appropriate by 1IIA andlor VA. 91/8-24-79 CC&R's BA63b6-7 16-1 Island Lagoon Homeowners Association 286-91 (7-11-80) ARTICLE XVIII PROTECTION OF THE 'PROJECT FROM LIENS Section 1 -Association to Defend Certain Action.. In the event that a lawsuit is brought against all or substantially all of tbe Kembers within a Project which will or could re.ult in any lien or encumbrance being levied agaiUlt an entire Project, the Association sh.ll defend lucb lawluit and tbe coats of such defense shall be a Special Assessment against all of the Kembers within such Project joined a. defendants in such law.uit; provided, however, in the event that an insurance carrier 1s obligated to provide sucb defense under .-policy of insurance carried by the A •• oci.tion. the A..oeiation aball be relieved of the obligation to provide lucb defen.e. Nothing. contained herein ahall in any way lL=it the rights of any Member or Kember. to retain counsel of their choice to represent them in .uch lawsuit at their own expense. In the event that a Member 10 chooles, he shall not be relieved of liability for the Special Aasesament provided for in this Section. Section" 2 -Payment of Lien. In the event that a lien or encumbrance not covered by California Civil Code Section 1357 attaches to all or substantially all of a Project by rea.on of a judgment or otberwi •• , the A •• ociation sball promptly take the appropriate step. to remove .ucb lien, including but not lUaited to the payment of money and tbe posting of a bond. The ~sociation shall bave the power to borrow money and to take such other 'tepa .1 are neces- sary to free a Project o~ .uch liena. Section 3 -Ownerl to b. Specially A.ael.ed. Simultaneously with any action taken pursuant to the Section entitled "Payment of Lien ll of thil Article, the Aaaociation shall levy a Special Allellment againat all of the Kember. whale Cond"ominiuall were subj4ct to the lien or encumbrance which cauled the A'locia- tion to act pursuant to laid Section equal to each auch Member', pro'rata .hare of such lien or encumbrance. In the event that such Special Aal.llment il not paid within thirty (30) day. of it. due date. the Board ... y effect the remedies of Section 1356 of the California· Civil Code and the Article hereof entitled "Nonpayment of AI .... ment •• n Section 4 -Re~bur.ement by Certain OWners. In the event that it shall be proven in a court of lav of competent jurisdiction over the claim or claim. caulina the A"ociation to take action under thil Article that a ju~gment relulting in a lien on all or a portion of a Project va. pr~.rily due to the act. or omis.ion. of a particular Kember or Kember. or the fa.ilie. thereof. .uch Member or Member. ,hall reimbur.e the A'lociatioD for-all expenaes incurred by it puriuant to the provisions of thi. Article. Up aD such reimbursement, the As.ociatioD shall distribute the funds received to the Members asainlt whom Special A ••• laments were levied pursuant to the provilion. of this Article. 91/8-24-79 CC6R'. BA63bl0 18-1 l.land Lagoon Homeowners Aalociation 286-91 (8-21-79) I Section 15 -Enforcement of Bonded Obli8ation~. In the event that the improve- ments to the Community Facilities and Common Area have not been completed prior to the is.uance of a Final Subdivision Public Report covering the Covered Property by the Department of Real Estate of the State of California, and the Association is obligee under a bond or other arrangement (hereinafter the "Bondl!) to secure performance of the commitment of Declarant to complete such improvements J the following provisions shall apply: (a) The Board shall consider and vote on the question of action by the Association to enforce the obligations under the Bond with respect to any improvements for which a Notice of Completion has not been filed'within sixty (60) days after the completion-dat~' specified for such improvements in the Planned Construction Statement appended to the Bond. If the Association has given an extension in writing for the completion of any Community Facilities and Common Area improvement, the Board shall consider and vote On the aforesaid question if a Notice of Completion has not been filed within thirty (30) days after the expiration 6f such extension. ' (b) In the event that the Board determines not to initiate action to enforc~ the obligations under the Bond J or in the event the Board fails to consider and vote on such question as provided above J the Board shall caLL a special meeting of the Members for the purpoae of voting to override such decision or such failure to act by the Board. Such meeting shall be called according to the provisions of the Bylawa dealing with meetinga of the Membera, but in any event such meeting Ihall be held not less than-thirty-five (35) days nor more than forey-five (45) days after'reeeipt by the Board of a petition for such meeting signed by Members reprelenting five percent (5%) of the total voting power of the Association. ' (c) The only Members entitled to vote at such meeting of Members shall be the Owners other than Declarant. A vote at luch meeting of a majority of the voting power of such Members other than Declarant to take action to enforce the obliga- tion. under the Bond shall be deemed' to be the decision of the A •• ociatioD and the Board shall thereafter impL~ent such decision by initiating and pursuing app'ropriate action in the name of the As.ociation. Section 16 -Leases. Any agreement for the leasing or rental of a Residence (hereinafter in this Section referred to a, a "lease") shan provide that the term. of such lea.e shall be subject in all re.peets to the provision. of this Declaration, the ArtiCles, the Bylaw'J the A.sociation Rulet and any applicable agreements between ehe A'lociaeion and any of the Federal Agencie.. Said lease shall further provide that any failure by the lessee thereunder to comply with the terms of the foregoing documents shall be a default under the lease. All leases shall be in writing, Any Owner who ,hall lease his Residence shall be responsibLe for a.suring compliance by such Ownerls lessee with this Declaration, the Articles, the Bylaws and the Association RuLes; provided, however J the obligation of the foregoing sentence shall not apply to Declarant in the event Declarant leases a Residence for a term of twenty (20) years or more and such lea.e, or memorandum thereof. I. recorded. No Residence shall be leased for t'ransient or hotel purposes, which shall be defined as rental for any period less than thirty (30) days or any rental whatloever. if the occupants of the Residence are provided cu.tomary hotel services such al room service for food and beverage, maid service, furni.bing laundry and linen and bellboy service. Section 17 -Construction By Declarant. Nothing in this Declaration shall limit the right of DecLarant to alter the Community Facilities or the Residences, or to construct,.uch additional improvements as Declarant deem. advisable prior to com- pletion of improvements upon and sale of the entire Development. Such right shall include but shall not be limited to erecting, constructing and maintaining on the Covered Property such structures and displaYI as may be reasonably neces- sary for the conduct of the business of completing the work and disposing of the same by sale, lease or otherwise. This Declaration shall not limit the right of Declarant at any time prior to acquisition of title by a purchaser from Declarant ~o establish on the Covered Property additional licenses, reservations and rights-of-way to itself, to utility companies. or to others as may from time to time be reasonably necessary to the proper development and disposal of the Development. Declarant reserVes the right to alter its construction plans and ~~~~~~~ ___________ 1_9_-3 __ ~~~ __ ~ ____ ~ __ ~~~ 91 8-24-79 CC&R's Island Lagoon Homeowners Association BA63b15-16 286-91 (5-15-81) dau Section 9 -Attorneys' Fees. In the event action is instituted to enforce any of the provisions contained in this Declaration, the party prevailing in such action shall be entitled to recover fram the other party thereto a. part of the judgment, reasonable attorneys' fees and co.ts of such suit. Section 10 -Notices. Any notice to be given to an Owner or a Mortgagee or mortgage servicing contractor under the provisions of this Declaration shall be in writing and may be delivered as follow.: (a) Notice to an Owner shall be deemed to have been properly delivered when delivered personally or placed· in the first class United States mail, postage prepaid, to the most recent &ddress furnishedlby such Owner in WTiting to the Association for the purpose of giving notice, or if no such address shall have been furnished, then to the street address of such Owner1s Residence. Any notice so deposited in the mail within Orange County, California, shall be deemed delivered· forty-eight· (48)' hours after such deposit. In the case of co-Owners, any such notice may be delivered or sent to anyone of the co-Owners on behalf of all co-owners and shall be deemed delivery on all such co-owners. (b) No-eice to a Mortgagee or its mortgage servicing contractor shall be deemed to have been properly delivered when placed in the first class United States mail, postage prepaid, to the address furnished to the Association'by such Mortgagee or such contractor for the purpo.es of notice or, if no such address is furnished, to any office of the Mortgagee in Orange County, California, or if no such office is located fn 'aid-County, to any offiee of such Mortgagee. (c) The affidavit of an officer or authorized agent of the Associ.tion declaring under penalty of perjury that 4 notice has been mailed to any Owner or Owners, to any Mortgagee or Mortgagees, or to all Members or all Mortgagees, to the address Or addres.es thown on the records of the Associatio'n, shall be deemed conclulive proof of such mailing, whether or not such notices are actually received • Seation 11 -Obligationl of Deelarant. So long al DeclaraDt is utilizing the ealement de.cribed in the Section entitled "Con.truction-and Sale." of the Article in this Declarati.on entitled IIE.sements," Declarant shall not be subject to the provision. of the Article entitled "Architectural Control" or the provi-' sion. of the Article ent~tled l'Use Restrictions.!' Section 12 -Effect of Declaration. This Declaration is made for the purposes set forth in the Recital. to this Declaration and Declarant makes no warranties or representation., expre.s or implied, a. to the binding effect or enforce- ability of all or any portion of this Declaration, or as to the compliance of any of these provisions with public laws, ordinances and regulations applicable thereto. Section 13 -Personal Covenant. To the extent the acceptance of a conveyance of a Residence creates a personal convenant between the Owner of such Residence and Declarant or other ~ers, such personal covenant shall terminate and be of no further force or effect from and after the date when a person or entity ceases to be an Owner except to the extent this Declaration may provide otherwise with respect to the payment of money to the A.sociation. Section 14 -NonHabilLtr of Officials. To the fulle.t ext'ent permitted by law, neither the Soard, the Architectural Committee, any other committees of the AJlociation or any member of such Board or committee shal~ be liable to .ny Member or the A"oeiation for any damage, 10 •• or prejudice suffered or claimed on account of any deci.ion, approval or di.approval of plan. or .pecifications (whether or not defective), course of action, act, omis.ion, error, nesligence or the like made in good faith within which such Soard, committees or persons reasonably believed to be the scope of their duties. CC&R • BA63b13-14 19-2 Island Lagoon Homeowners Association 286-91 (5-15-81) dau ) -- r--, ,) STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) On , before til , the undersi Notary Public in and fa said St.te,~raon.l1Y appe red.l' , known to me to be the5 r1 'f:..~~.1 and' • W' , known to me to be the A.Vt. of the corporation that executed the within instrument, and known to_ me to be~he persons -who executed the within instrument on behalf of the corporation therein named, and acknowledged to me that such corporation executed the within inltrument" pursuant to its Bylaws or a Resolution of its Board of Directors. WITNESS my hand and official seal. 91 8-24-79 CC&R. BA63b19 19-5 • OFFICIAL SEAL LINDA RUSSELL NOTARY PU8UC· CAUFORMlA PRINCIPAL OFFICE IN ORANGE COUNTY MY COMWISSION £X~RES DEC. 21, 1914 Island Lagoon Homeowners ASSOclatlon 286-91 (5-19-81) dau ( designs 'as it deems appropriate. Declarant shall exercise its righes contained in this provision in such a way as not to unreasonably interfere with the Members' rights to u.e and enjoy the Covered Property. Section 18 -Amendments. Subject to the other provlslona of this Declaratioo, including, without limitation, the rights of First Mortgagees pursuant to the Article. hereof entitled "Insurancell and "Rights of Lenders,lI or otherwise, this Dec laration may be amended as fa llows: (a) Until such time a. there i. a Class A membership, this Declaration may be cancelled or amended by Declarant. Any Supplementary Declaration covering all or a portion of the property described in Exhibit C may be cancelled or emended by Declarant until such tLne as there has been a conveyance of a Residence within the real property described in said Supplementary Declaration. Thereafter, any amend~nts shall require the affirmative vote or written assent of the Applicable Voting Power. (b) In addition to the foregoing, any amendment or modification of the Articles hereof entitled "Covenant for Maintenance A •• essments," "Nonpayment of Auessments," "Architectural Control,1I IIRepair and Maintenance," "Destruction of Improvements" and "Eminent Domain" shall additionally require the prior written approval of not le •• than seventy-five percent (15%) of Members other than Declarant. (c) An eMendment or modification that requires the vote and written assent of the Member,' a, hereinabove provided shall be effective when executed by the President and Secretary of the Aa.oeiation who shall certify that the £mendment or modification ha. been approved a. hereinabove provided, and when recorded in the Official Record. of Orange County, California. (d) Notvith.tanding the foregoing, any provi.ion of this Declaration, or the Article., Bylaw. or A •• ociation Rules which expre •• ly requires the approval of a .pecified percentage of the voting power of the A.sociation for action to be taken under ,aid provision can be amended only with the affirmative vote or WTitten assent of not lest than the .ame percentage of the voting pover of the A •• ociation. Section 19 -Irvine COI.t Cou.ntry Club Indemnfty, The'Mlociation and e,ch OWner 'sh.ll hold the Irvine Coast Country Club, itl officers, aaent. and ~ployees harmles. and free fra. liability from all damages, co.te or expen.e. incurred by rea.on of injury to property or injury to or death of per.on. caused by golf ball. enterins' the Covered Property from th~ adjacent Irvine Coa.t Country Club property, and a. provided in the Article entitled "Inlurance" of this Declara- tion, the A •• ociation may obtain any in.urance the Board deems appropriate to cover any .uch damage., co.t. or expen.ee. IN WITNESS WHEREOF, Declarant ha. executed thi. instrument the day and year fir.t hereinabove written. 91/8-24-79 CC&R'. BA63b17-18 19-4 I.land Lagoon Homeowner. A.sociation 286-91 (5-19-81) dau , ') ~I ~ .. "'j EXHIBIT A INITIAL COVERED PROPERTY Lots 1, 4, 5, 7, 9, 15 and A of Tract 9676-88 per map filed in Book 482, Pages 1 to 6 inclusive, of Miscellaneous Haps, records of Orange County, California. ~1/8-24-79 CC&R'. BA63b22 Island Lagoon Homeowners As.oeiation 286-91 (3-6-81) EmlBIT B INITIAL COKHUNITY FACILITIES Lot. 1, 7, 9 and A of Tract 9676 •• per map filed in Book 482, Page. 1 to 6 inclusive, of Milcellaneous Hap., record. of Orange County, California. 91/8-24-79 CC&R'. BA63b23 Island Lagoon Homeowners Association 286-91 (3-6-81) CONSENT OF ENCUMBRANCER The undersigned, beneficiary under that certain deed of trust recorded on April 24, 1981, in Book 14031, Page 1327, of Official Record. of Orange County, California, to McLain Development Company •• California corporatioD, IS Tru.tor, covering the lea.ehold interest in and to the Covered Property, hereby consent. to the within Declaration of Covenant., Condition. and Reatrictions and hereby subordinate. the lien of .aid deed of trust to the provilions of the Declaration. UNITED CALIFORNIA BANK, a California corporation By-+~~~~~~~~~ __ ___ As President i=U:;41 - l STATI! OF CAUFORNIA . COUNiY OP ORANGE } SS. dIITTTlE INSURANCe iirI AND TRUST ._- On May 28 J 1981 before me, tho unden.lpcd, a Notary Publk: in and for said t State. penooa11y appeared Lawrence A. Nords trom kDown to me to be ,he Vice Preside •• ,~:.~and~==R:, :J::, :Dwy::::e:r=======-__ _ knowntometobo Allat Vice President¥iVf&li' r- of tho corporation that executed the wit.hiD IDStrnmeDt, .. blown to me to be the penooJ who executed the withiD ~ Jnstrument 011 bebaJf of thI corporatlOD tbcrcin Damed. and • a.cknowiedaed to me that such «If'POC'UIOD executed tho I within instrwneDt pumlI.D.t to ita by·laW! or • moIutiOD of t its board of dim::ton. WITNESS my band and ofticial teal. s~m~~~ ~. CCQR a BA63b20 OFFICIAL SEAL • SANDRA REUTER • NOTARY P'\J81IC • CALIFORNIA ._ CIOUIIIY .., _ ...... WAY 3, ItaS ~~~~~~~~ 1s1afl_d Lagoon Homeowners Association 286-91 (5-19-81) d&u "'--- RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: THE LUSK COMPANY 17550 Gillette Avenue P. O. Box 19560 Irvine, CA 92713-9560 Attn: Legal Department 88-073885 ~ l...£!.O...J Ptco~rwx; 0t0:,IeS1EO BY ~'rrp 7;', F <.J\ :n ,)F CALIF. RECORDED IN OFFICIAL RECORDS OF OI'lANGE COUNTY. CALlFCRNIA -11 ~! AM FE819 '88 (Space Above Line For Recorder's Use Only) SUPPLEMENTARY DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ISLAND LAGOON HOMEOWNERS ASSOCIATION TRACT 9676, LOTS 8 and 10 ORANGE COUNTY, CALIFORNIA THIS SUPPLEMENTARY DECLARATION is made this 8th day of December , 1987, by THE LUSK COMPANY, a California corporation, hereinafter referred t6 as "Declarant." RECITALS WHEREAS, Declarant is the Owner of real property (herein- after referred to as the "Annexed Property") described as Lots 8 and 10 of Tract No. 9676 as per map filed in Book 482, Pages 1 through 6, inclusive, as amended by Newport Beach Lot Line Adjustment 85-5, recorded November 18, 1985 as Instrument No. 85- 462783, both filed in the Office of the County Recorder of Orange County, California; and WHEREAS, the Annexed Property is subject to the reservation of rights and easements, and the declaration of covenants, set forth in that certain Grant Deed conveying title in and to the Annexed Property from The Irvine Company, as "Grantor", to Declarant's predecessor-in-interest, as "Grantee", recorded February 8, 1984 as Instrument No. 84-056845 in the Official Records of Orange County, California (hereinafter referred to as the "Grant Deed"); and . 6/2/87Rlefl32 -1-Phase 7 88-073835 WHEREAS, Declarant will convey the Annexed Property subject to t"he rights, easements and covenants of said Grant Deed and certain covenants, conditions, restrictions, reservations, liens and charges substantially as set forth in that certain Declaration of Covenants, Conditions and Restrictions which was recorded on June 5, 1981 in Book 14088, Pages 1654 through 1715, Official Records of Orange County, California, and as amended by that certain Amendment to Declaration recorded January 25, 1982 as Instrument No. 82-27174, Official Records of said County, (hereinafter referred to as the "Declaration"), pursuant to the provisions of Article 14, entitled "Annexations", of the Dec lara tion. NOW, THEREFORE, it is declared as follows: 1. The Annexed Property is subject to the reservation unto The Irvine Company, a Michigan corporation, its successors and assigns, with the right to grant and transfer all or a portion of the same, of the following referenced rights and easements which are more specifically described and defined in said Grant Deed: (a) All oil and oil rights, minerals and mineral rights, hydrocarbons and geothermal resources, together with the right to mine and remove the same, without the right to enter the upper 500 feet of the Annexed Property; (b) All water and water rights, together with the right to remove and use the same, but without the right to enter upon the surface of the Annexed Property; (c) Nonexclusive easements in gross over and under the Annexed property for purposes shown as existing or proposed on any recorded parcel or tract map covering the Annexed Property; and (d) Nonexclusive easements over and under the Annexed Property, within ten feet (10') from all property lines bordering public or private streets, for utility purposes. 2. The Annexed Property is subject to the covenant that no improvements shall be installed or constructed within the Annexed Property without the prior review and approval of The Irvine Company, all as more specifically described and defined in said Grant Deed and Exhibit "A" attached thereto. 3. Subject to the modification of the Declaration herein- after set forth, all of the Annexed Property is hereby made sub- ject to the terms, covenants, conditions and provisions of the Declaration, as provided in Article 14, entitled "Annexations", of the Declaration. The Declaration, to which the Annexed Property shall be subject, is hereby modified with respect to the Annexed property, as follows: -2- 88-073885 (a) Delete in its entirety section 15, entitled "Hard Surface Flooring", of Article XI, entitled "Use Restrictions," of the Declaration, and substitute in place thereof the following provision: "Section 15 -Hard Surface Flooring: Hard surface floor coverings including, but not limited to, wood, ceramic tile, asphalt tile, linoleum or vinyl, may be installed in upper levels of Condominium Buildings only in those areas of Units which are depicted on Exhibit "B", attached to this Supplementary Declaration and incorporated herein by this reference. This restriction in flooring material shall not apply to lower levels of Condominium Buildings or in any instance where a Unit is comprised of both upper and lower levels." (b) Add Section 20, entitled "The Lusk Company Indemnity," to Article XIX, entitled "General provisions," of the Declaration, as follows: "Section 20 -The Lusk Company Indemnity. Each Owner shall indemnify, defend and hold Declarant, its officers, agents, employees, successors and assigns, harmless from and against any and all obligations, liability, suit, claim, loss, judgment, lien, cost or expense of any kind, including attorney's fees, that Declarant or the specified others may incur in connection with injury or death to the person, or damage to the property, of Owner and its invitees, or in conne·ction with the existence of a nuisance or trespass, by reason of or arising out of the golf and related activities at the Newport Beach Country Club." All other terms, covenants, conditions and provisions of the Declaration shall apply to the Annexed Property as though said real property was part of the initial Covered property defined in the Declaration. In no event shall this modification of the Declaration revoke or modify any of the covenants established by the Declaration with respect to such initial Covered Property. 4. The recordation of this Supplementary Declaration shall constitute and effectuate the annexation of the Annexed Property, making said real property subject to the Declaration as modified, and subject to the functions, powers, and jurisdiction of ISLAND LAGOON HOMEOWNERS ASSOCIATION, a California nonprofit mutual benefit corporation (hereinafter referred to as the "Associa- tion"), as provided in the Declaration, and thereafter said real property shall be part of the Covered Property as that term is defined in the Declaration, and all of the Owners of Residences in the Annexed property as those terms are defined in the -3- ( 88-073885 Declaration, shall automatically be Members of the Association and Owners under the Declaration. 5. All rights and easements reserved by Declarant in the Declaration are hereby reserved by Declarant over the Annexed Property, together with the right to grant and transfer the same as provided in the Declaration. IN WITNESS WHEREOF, this instrument is executed as of the day and year first above written. STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) THE LUSK COMPANY, a California corporation By: ~~~~~~~~--~-------By:~~~~Vice President DOnaldD.St~~ Assistant Secretar On December 29, 1987 before me, the under- signed, a Notary Public in and for said State, personally appeared James C. Waples personally known to me or proved to me on the basis of satis- factory evidence to be the person who executed the within instru- ment as the Sr. Vice President and Donald D. Steffensen personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the A?sistant Secretary of the Corporation that executed the with~n instrument and acknowledged to me that such corporation executed the within instrument pursuant to its bylaws or a resolution of its board of directors. WITNESS my hand and official seal. Si<gnature -4- ( 88-073885 CONSENT OF ENCUMBRANCER The undersigned, Beneficiary under that certain Deed of Trust recorded September 27, 1985, as Instrument No. 85-369558, in the Office of the Orange County Recorder, California, hereby consents to the attached Supplementary Declaration of Covenants, conditions and Restrictions covering Lots 8 and 10 of Tract 9676, and hereby subordinates the lien of said Deed of Trust to the provisions of the Supplementary Declaration. STATE OF CALIFORNIA COUNTY OF ORANGE ) ) ·SS. ) SERVICE MORTGAGE COMPANY, a California corporation / By :-=-;rJ;?ZCl~~:t:~~---- J C. On December 29, 1987 before me, the under- signed, a Notary Public in and for said State, personally appeared James C. Waples personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the Vice President and Donald D. Steffensen personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the Assistant Secretary of the Corporation that executed the within instrument and acknowledged to me that such corporation executed the within instrument pursuant to its bylaws or a resolution of its board of directors. WI?NESS my hand and official seal. ~'''''otFiCIALsEA\''' --1 .. ~., VICKI L JOHNSON I ~ I .' NOTARY PUBlIC·CAlIFORNIA .. o""s· PRI'lCIPAl OffiCE Itt ~\: '. ORANGE: COUNTY • (."!::-~'~ My Cornm. Exp. Mat. 2.1990 ~ • ....., '" ..... ""w ""'""'" ".. "'",.,. S gnature -5- OO-V(jOO~ \:: t 2: :J '2 1. - :l :l 2. '1.. cl J 2 ~ ~ a "2 ~ -z () ~ ~ ~ v.. 2. \lI ~ ~ ~ ~ :::l .J :3 ~ -I. dl "'2 7. ~ & ~ £<l ~ ( '-< ~ ~ H - '" 1 H L R ~ 4 ( r.> ~ ~ ~ IY... W \\l ~ ~ :l W \:. \:: ~ 'Z :J - :r :z U ~ -:1. :l r:i. ~ Z ~ j \1\ ~ ~ ~ a ~ -1 j ~ "2 ~ - ~ D , ( ~ ~. ~ ::J ~ ..l J l. ti) V ::l ( EXHIBIT "B" ucru{ JOO) UPHILL CONOOMINllM BUILDING -LIPPER LEVEL. PLAN 1 MASTER BEDROOM I I I I I I I I I I I I I I I I I I I r---------t I \--1 l--\. NOOK HARD SURFACE FLOOR COVERING PERMITTED IN SHADED AREAS ONLY. PAllO I DECK DINING ROOM PallO 2 of 7 LIVING ROOM BEDROOM 3 {DEN ,......IIWoIo ...... .....----t I I I I I I I I I I I I I I I I I \ I \ \ ;----------t \ \--1 +-~ EXHIBIT " B " 88-073885 UPHILL CONDOMINIUM BUILDING -UPPER lEVa. PlAN 2 PATIO/DECK NOOK HARD SURFACE FLOOR COVERING PERMITTED IN SHADED AREAS ONLY. MASTI:R BEDROOM LIVING ROOM DINING ROOM DEN ------1 I I ! f f I I I I I I I t----------t I ~~ ~~ BEDROOM 2 ~-"~"""'...l--1 I I I I I I I I I I I 1----------t I l-~ i--L Pl!oe 3 of 7 EXHIBIT " B ' , 88-073835 UPHIU CONDOMINIUM BUILDING -UPPER LEVEL PLAN 3 MASTER BEDROOM BEDROOM 2 ..... ____ ...a--- j I I I I I I I I I I I I j-"---------t I i-J 1-.1 PAllOt DECK H .... RD SURFACE FLOOR COVERING PERMITTED IN SHADED AREAS ONLY. MORNING ROOM LMNG ROOM PaQe 4 of 7 DINING ROOM BEDROOM 3 I I I \ I I \ I \ I I r---------1" I j.......\. 1---4 ( EXHIBIT" B" 88-073885 DOWNHILL CONDOMINIUM BUILDING -UPPER LEVEL PLAN 1 MASTER BEDROOM GARA.GE HARD SURFAce FLOOR COVERING PERMITTED IN SHADED AREAS ONLY. PATIO/ DECK NOOK DINING ROOM BEDROOM 2 Pa.go 5 of 7 lMNG ROOM BEDROOM 3 IDEN ·GARAGE EXHIBIT "B" DOWNHILL CONDOMINIUM BUILDING -UPPER LEVEL PLAN 2 NOOK DINING ROOM GAAAGE PAT10/DECK LMNG ROOM Page 8 of 7 HARD SURFACE FLOOR COVERING PERMITTED IN SHADED AREAS ONLY. MASTER BEDROOM BEDROOM 2 GAAAGE ( EXHIBIT "E" OO-UIJOOJ DOWNHILL CONDOMINIUM BUILDING -UPPER LEVEL PLAN 3 PAllO I DECK MASTER BEDROOM LIVING ROOM BEDROOM 2 GARAGE Paoa 7 of 1 HARD SURFACE FLOOR COVERING PERMITTED IN SHADED AREAS ONLY. MORNING ROOM DINING ROOM _ ..... _.---,;. BEDROOM 3 GARAGE