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HomeMy WebLinkAbout937527 000302 DECLARATION of COVENANTS, CONDITIONS AND RESTRICTIONS for SUNDANCE CONDOMINIUMS in THAYNE, LINCOLN COUNTY, WYOMING RECEIVED 3/12/2008 at 9:51 AM RECEIVING # 937527 BOOK: 689 PAGE: 302 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY MARCH 2008 SUNDANCE CONDOMINIUMS / CCR'S Page 1 of 28 INDEX 000303 SECTION: Page 1 Definitions ........................................................................................................................... 4 2 Scope of Project..................................................................................................................... 5 3 Map.............................................. ..... ......... ............. ....... .......... ......... .................................... 5 4 Division of Property into Condominiwn Units....................................................................... 5 5 Common Elements........ ..................... ..... ............. ......... ....................... ..... ......... ......... .......... 5 6 Parking Spaces...................................................................................................................... 6 7 Separate Assessment and Taxation........................................................................................ 6 8 Ownership - Title..........................................................................,...................................... 7 9 N on- Partitionability............................................................................................................... 7 10 Use of Common Elements...................................................................................................... 7 11 Use and Occupancy by Declarant........................................................................................... 8 12 Certain Additional Restrictions................................ ......................... ............ ......... ............ .... 8 13 Easements for Encroachments................................................................................................ 10 14 Owners Voting Rights............................................................................................................ 10 15 Sundance Condominiwn Home Owners' Association........................................................... 11 16 Management Committee......... ....... ....... ..... .......... ....... ............ ......... ..... ................ .................. 12 17 Powers and Duties of Management Committee....................................................................... 13 18 Manager....... ..... ....... ......... .... .......... ....... ........ ..... ........... ........ ......... .............. ........... .............. 16 19 No Waiver.............. ..... ............ .... ............ .......... ..... .... ............... ........... .... .......... .................... 16 20 Compensation........... ........... ..... ..... ......... ............... ..... .......... .... ......... ...... ........ ....... ................ 16 21 Accounts............................................................................................................................ .... 16 22 Indemnification...................................................................................................................... 17 23 Exculpation............................................................................................................................ 17 24 Mechanic's Lien..... ......... ......... ....... ..... ............ .......... ....... .,. ............................. ................. .... 17 25 Reservation for Access............................................................................................................ 17 26 Maintenance Responsibility.................................................................................................... 18 27 Revocation or Amendment to Declaration............................................................................... 18 28 Additions, Alterations and ..Improvements............................................................................. 18 29 Assessments..................................................................................................................... ...... 18 30 Insurance............................................................................................................................. ... 19 31 Restrictions Relating to Insurance Coverage........................................................................... 20 32 Foreclosure of Lien................................................................................................................. 20 33 Mortgages.......... ............... ....... ....... ....... ... ..... ..... ....... .......... ....... ...... ..... ..... ............................ 20 34 Reconstruction........................................................................................................................ 21 35 General Reservations.............................................................................................................. 24 36 Covenants to Run With the Land............................................................................................ 24 37 Assignment of Declarant's Rights..................... ... ............. ..... ....... .......... ................................ 24 38 Arbitration and Mediation...................................................................................................... 24 Exhibit A - Legal Description,....................................................................................................... .... 27 Exhibit B - Percentage of Ownership.............................................. ..................................................... 28 SUNDANCE CONDOMINIUMS / CCR'S Page 2 of 28 DECLARATION 0 . 4 if 00 30' COVENANTS, CONDITIONS AND RESTRICTIONS for SUNDANCE CONDOMINIUMS THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE SUNDANCE CONDOMINIUMS ("Declaration of Covenants") is made on the date hereinafter set fourth by the undersigned, Bruce M. Davis and Betty B. Davis, hereinafter referred to as the "Declarant" for the purpose of defming the rights and obligations of ownership for the SUNDANCE CONDOMINIUMS' Project ("this Project") located within the Town of Thayne, County of Lincoln, State of Wyoming. RECITALS: A. The Declarant is the owner of the real property located within the Town of Thayne, County of Lincoln, State of Wyoming, which is described in Exhibit A attached hereto and made a part hereof.. B. The Plat Map/s for the Sundance Condominiums recorded on n7ard1 12, ÆOéJð" , Instrument No. QJìS'2 b , Map No. 1375217 , in the County Recorder's Office of Lincoln County, Wyoming, which Plat Map/s defines the division of certain real property known as Lots 1,2,3,4,5,6, part of Lot 7, Lot 21, and part of Lot 22, Block 1, of the Van Noy Park Addition of the Town of Thayne, County of Lincoln, State of Wyoming into twelve (12) Condominium Units, more particularly described in Exhibit A, will be filed simultaneously with this Declaration of Covenants, Conditions and Restrictions. C. Declarant desires and intends to, and does hereby, submit the above-described real property, together with all buildings, structures, improvements and other permanent fixtures of every kind thereon or may be placed thereon or may pertain thereto to the provisions of the Wyoming Condominium Ownership Act and amendments thereto. D. Declarantdoes hereby publish and declare that the real properties stated above shall be held, sold, leased and conveyed subject to the following covenants, conditions and restrictions of this Project affecting all dwellings, appurtenances and improvements associated with this Project described herein along with the Plat Map/s and shall be in addition to all other covenants, conditions or restrictions of record affecting this Project, the Declarant and his successors and assigns, the Unit Owners and the Sundance Condominiums Home Owners' Association (the "Association"), which covenants shall be as follows: a. shall be both a burden and a benefit to the above named entities; b. shall run with the land; c. shall be for the purpose of protecting the value, desirability and character of the Property; d. shall be binding on all parties having any right, title or interest in the Property or any part thereof; e. and shall inure to the benefit of the aforementioned parties and their successors and assigns. SUNDANCE CONDO:MINIUMS I CCR'S Page 3 of 28 000305 E. The name of this Project shall be identified as the "SUNDANCE CONDOMINIUMS". F. The individual Condominium Units and related General Common Elements will be owned, managed and maintained by a Wyoming non-profit corporation known as SUNDANCE CONDOMINIUMS HOME OWNERS' ASSOCIATION (the "Association") serving as the Association of Owners as provided herein. NOW, THEREFORE, the Declarant does hereby publish and declare that the following covenants, conditions and restrictions shall be deemed to run with the land, shall be a burden and a benefit to the Declarant, and its successors and assigns. SECTION: 1. DEFINITIONS. Unless the context shall expressly provide otherwise, A. "Unit" means an individual air space Unit consisting of any enclosed rooms occupying part of any Building and is described as a column of vertical space existing between the horizontal planes of the floor and ceiling of the story within the Building in which it is located and bounded by the irregular, interior, unfmished surfaces of the perimeter walls, floors, ceilings, windows, doors, along the perimeter boundaries of the air space of said boundaries, as shown on the Plat Map/s, together with all fixtures, cabinets, carpets, flooring, paint and fmishes, all lath, furring, wallboard, plasterboard, plaster, paneling, tiles, wallpaper and any other materials constituting any part of the fmished surfaces are a part of the Unit along with all non bearing interior partition walls. Notwithstanding the fact that they may be within the boundaries of said air space, the following are not part of a Unit insofar as they are necessary for the support or use and enjoyment of another Unit: structural components of the Building/s, bearing walls, floors, ceilings, roofs, foundations, exterior walls and roof fmishes, ceiling equipment, pipes, vents, ducts, conduits, wire and other utility installations, except the outlets thereof located withing the Unit. Utilities or other fixtures which lie partially within and partially outside the boundaries of a Unit, any portion serving only that Unit is a Limited Common Element allocated solely to that Unit and any portion serving more than one Unit or any portion of the Common Elements is a part of the General Common Elements. B. "Owner" means any owner of record, whether one or more persons or entities, having recorded title to the full and exclusive use of a specific Unit, including contract buyers of record but excluding mortgagees, contract sellers or others having such interest merely as security for the performance of an obligation. An "Unit Owner" shall mean all of the owners of a particular Unit collectively and shall be jointly regarded as a single Owner for the purposes of this Declaration of Covenants. Any owner of an equity interest of record in a Unit, and any partner, officer, or shareholder of an entity, which is an Owner of record, may be treated by the Association as an Unit Owner and liable for the Assessment Lien as the representative of all the ownership of such Unit for purposes of giving notices, voting and other matters. C. "General Common Elements" means all portions of the Sundance Condominiums' Project other than the individual air space Units, including, but not limited to, all Limited Common Elements, any recreational areas, walkway areas, parking SUNDANCE CONDOMINIUMS / CCR'S Page 4 of 28 000306 areas, driveways, front porches, stairs, hallways, storage closets, and any structural components of the Building and its exterior fmishes, landscaping and fences which are for the use and benefit of all the Unit Owners. The General Common Areas are those areas outside the exterior building walls with are for the use of all Unit Owners. D. The Limited Common Elements are those areas outside of the exterior building walls which are a portionls of the General Common Elements which are either limited to and reserved for the exclusive or nonexclusive use of an Owner of a Condominium Unit or are limited to and reserved for the common use of more than one, but fewer than all, of the Condominium Unit Owners such as, but not limited to, front entrances, balconies, stairways, and decks that are accessible from a single Unit, and the Units individual utility services entering through the Building for the use of one or more but less than all the Unit Owners. E. "Common Expense" means expenses for project maintenance, repair, operation, management and administration determined in accordance with this Declaration of Covenants and shall become an Assessment Lien prorated equally on each Unit. F. "Association" means SUNDANCE CONDOMINIUMS HOME OWNERS' ASSOCIATION. G. "Management Committee" means the board of directors of the Association. SECTION: 2. SCOPE OF PROJECT. The "Project" consists of the construction of twelve (12) Condominium Units, together with onsite parking facilities for such Units and any other Common Elements as platted on Lots 1,2,3,4,5,6, part of Lot 7, Lot 21, and part of Lot 22, Block 1, ofthe Van Noy Park Addition ofthe Town of Thayne, County of Lincoln, State of Wyoming , along with any easements of record as shown on the Plat Map/s. SECTION: 3. MAP. Declarant and his successors and assigns reserves the right to amend or add to the Plat Map/s from time to time, to conform the same according to the actual10cation of any of the constructed improvements and to establish, vacate and relocate utility easements, assess road easements and on-site parking areas. SECTION: 4. DIVISION OF PROPERTY INTO CONDOMINIUM UNITS. The real property described in Exhibit A and the improvements located or to be located thereon has been platted or will be platted for division into separate fee simple estates, each such estate consisting of a separately designated Unit and the undivided percentage or fractional interest in and to the General Common Elements for each Unit as set forth in Exhibit B hereto. SECTION: 5. COMMON ELEMENTS. A portion of the General Common Elements is reserved for the exclusive use of the individual Owners of the respective Units, and such areas are referred to as "Limited Common Elements". The SUNDANCE CONDOMINIUMS I CCR'S Page 5 of 28 000307 Limited Common Elements so reserved shall be identified on the Plat Map/s. Any balcony, patio, deck, or stairway which is accessible from, associated with and which adjoins a single Unit, without further reference thereto, either herein or on the Play Map/s, shall be used in connection with such Unit to the exclusion of the use thereof by the other Owners of the General Common Elements except by invitation. All of the Owners of Condominium Units in this condominium Project shall have a nonexclusive right in common with all of the other Owners to use of sidewalks, pathways, hallways, stairways, roads, driveways, parking areas, and streets located within the entire condominium Project. No reference thereto, whether such Limited Common Elements are exclusive or nonexclusive, need be made in any deed, instrument of conveyance or other instrument. The water lines, sewer lines, propane tanks and gas lines (if owned by the Association), other onsite utilities which are for the use of the Sundance Condominiums, fences and landscaping are also General Common Elements. A. Each Unit, the appurtenant undivided interest in the General Common Elements and the appurtenant Limited Common Elements shall together comprise one "Condominium Unit", shall be inseparable and may be conveyed, leased, devised or encumbered only as a Condominium Unit. B. Every contract for the sale of a Condominium Unit written prior to the filing for record of the Plat Map/s may legally describe a Condominium Unit by its identifying Unit designation, followed by the name ofthe Project, with further reference to the Plat Map/s thereof and the Declaration of Covenants to be filed for record. Subsequent to the filing of the Plat Map/s and the recording of the Declaration of Covenants, every deed, lease, mortgage, trust deed, will or other instrument may legally describe a Condominium Unit by its identifying Unit designation, followed by the name of this Project, with further reference to the Plat Map/s thereof filed for record and the recorded Declaration of Covenants. Every such description shall be good and sufficient for all purposes to sell, convey, transfer, encumber or otherwise affect not only the Unit but also the General Common Elements and the Limited Common Elements appurtenant thereto. Each such description shall be construed to include a nonexclusive easement from ingress and egress to an Owner's Unit and use of all the General Common Elements together with the right to the use of the appurtenant Limited Common Elements. The initial deeds conveying each Condominium Unit may contain reservations, exceptions, and exclusions which the Declarant deems to be consistent with and in the best interest of all Condominium Unit Owners. SECTION: 6. PARKING SPACES. On-site parking areas and related facilities shall be under the control of the Declarant until the Project has been completed. Thereafter, the parking areas shall be under the control of the Management Committee. The parking to be used by an Unit Owner will be assigned and such authorization given in writing to the Unit Owner by the Management Committee with a maximum of two vehicles per Unit free of charge. All other parking is to be used for snow areas and guest parking as needed or appropriate and within reason for the needs and benefit of all Owners. Extra parking may be requested by an Owner if space is available for a fee payable to the Association. SECTION: 7. SEPARATE ASSESSMENT AND TAXATION. The real estate taxes, assessments and other charges of the State of Wyoming or other political subdivision or any special improvement district or any other taxing or assessing authority shall be assessed against and collected on each individual air space Unit, each of which shall be carried on the tax SUNDANCE CONDOMINIUMS I CCR'S Page 6 of 28 000308 books of the Lincoln County Assessor as a separate and distinct parcel for such purpose, and not on the building or the Property as a whole. The valuation of the General Common Elements shall be assessed proportionately upon each individual air space Unit in accordance with Exhibit B. Appropriate written notice shall be delivered to the Lincoln County Assessor for these purposes and such other action shall be taken to effectuate the foregoing purposes to tax the Units separately including their proportionate share of the General Common Elements. The lien for taxes assessed to any Condominium Unit shall be confmed to that Condominium Unit. No forfeiture or sale of any Condominium Unit for delinquent taxes, assessments or other governmental charges shall divest or in any way affect the title to any other Condominium Unit. SECTION: 8. OWNERSHIP - TITLE. A Condominium Unit may be held and owned in any real property tenancy relationship recognized under the laws of the State of Wyoming. SECTION: 9. NON-PARTITIONABILITY. The General Common Elements shall be owned by the Association in common for all of the Owners of the Units and shall remain undivided, and no Unit Owner shall bring action for partition or division of the General Common Elements. Nothing contained herein shall be construed as a limitation of the rights of partition of a Unit between the Owners thereof, but such partition shall not affect any other Unit. SECTION: 10. USE OF COMMON ELEMENTS. Each Unit Owner shall be entitled to exclusive usage and possession of his /her Unit and any related Limited Common Elements, subject to the rights of the Management Committee set forth herein. Each Owner of a Unit may use the General Common Elements in accordance with the purpose for which they are intended, without hindering or encroaching upon the lawful rights of other Owners of their Units. The exclusive right to repair, maintain and replace the Units is reserved to the Management Committee as provided herein, and the express written approval of the Management Committee is required for any improvement, painting, fencing, repair or alteration carried out by an Unit Owner. A. A Unit may be used and occupied by the applicable Owner, his/her family and their guests and invitees, or an Owner's lessee/s or tenantls; provided, however, that such use by an Owner's guestls and invitee/s or lessee/s or tenantls is maintained in conformity with any and all applicable conditions and restrictions provided here in. The Unit Owner shall be responsible for the actions and damages any such guest, invitee, lessee, or tenant may cause and for the payment of all Assessment Liens. B. Conformity with any and all applicable land use regulations of the Town of Thayne shall be required, in addition to the requirements of this Declaration of Covenants and any other related rules and regulations. In case of any conflict, the more stringent requirements shall govern. C. Only single-family residential use shall be permitted. No commercial, industrial or other non single-family residential use whatsoever shall be permitted in any Unit, with the exception of an artist studio, workshop, private office and such other endeavors not requiring SUNDANCE CONDOMINIUMS / CCR'S Page 7 of 28 000309 access to the property by the general public, employees, independent contractors or business invitees in a manner which would adversely impact the neighborhood; and the Management Committee may impose restrictions in that regard. D. This Project shall be subject to the "Water Line Easement Agreement" established between the Declarant and the Town of Thayne recorded on 12/17/2007, Instrument Number 935604, Book: 681, Page 282 through 286. SECTION: 11. USE AND OCCUPANCY BY DECLARANT. The Declarant and Declarant's employees, representatives, agents and contractors may maintain a business and sales office, construction facilities and yards, model units and other developer's facilities necessary or desirable to Declarant during the construction and sales period. SECTION: 12. CERTAIN ADDITIONAL RESTRICTIONS. The following additional restrictions are applicable to the Units and General Common Areas. Each reference to "Owners" includes their tenants and invitees. A. Keeoing Outside Areas Clean and Sightlv. The Owners shall not obstruct the General Common Areas as contained herein. All Owners shall keep their residences and their Units in a reasonably clean, safe, sightly and tidy condition. No clotheslines will be pennitted. Any tires. lawnmowers. garden equipment. children's toys and other similar items must be stored from the public view when not in use. No antennas or television "dishes" in excess of24 inches in diameter or other items may be placed in public view or upon any of the Common Areas or Units without the express written consent of the Management Committee. Refuse, garbage and trash shall be kept at all times in a covered container. The parking of recreational vehicles, motor homes, trailers, boats, snow mobiles, camper bodies and inoperative vehicles is prohibited in parking areas unless written authorization is given by the Management Committee and all parking fees pertaining to such assigned parking are paid. The Management Committee shall have full power and authority to regulate parking and storage of cars, trucks, bicycles, motorbikes, motorcycles and other similar vehicles and equipment and to regulate the use of roadways by imposing and enforcing speed limits and other restrictions, with full power and authority to impose and enforce (by special assessments hereunder or otherwise) fmes and other penalties for violations of such regulations. All landscaped areas shall be maintained by the Management Committee. The Management Committee shall have the right to charge an Unit Owner for landscape damaged by that Owner or his guests or animals. B. Obstructing Common Areas. Unit Owners shall not obstruct General or Limited Common Areas. Unit Owners shall not build any structure or place or store anything within the General or Limited Common Areas without the prior written consent of the Management Committee or its designee. All storage items shall be kept in a facility specifically designated or approved for such storage. C. No Fireworks. The discharge of fireanns, firecrackers or fireworks is forbidden. D. Signs. Without prior written consent of the Management Committee, Unit Owners shall not pennit any sign of any kind to be displayed to the public view from his/her Unit or from SUNDANCE CONDOMINIUMS I CCR'S Page 8 of 28 00031.0 the appurtenant Common Areas. Said restrictions shall not apply to the Declarant during the construction or sales period or to traffic signs, Unit designations, Project designations or similar signs displayed by the Management Committee or the Declarant. E. Animals. Owners shall Dot permit animals of any kind to be raised, bred or kept in their Unit, except the occupying Unit Owner only (not guests, invitees, lessees or tenants) may keep up to 1 dog or 1 cat on a permanent basis with the written permission of the Management Committee on a case by case basis. Other small pets kept inside are permitted on a reasonable basis, and all occupancy of pets are subject to the limitations set forth herein: 1. All pets shall be kept clean and odor free. Any animal kennel shall be only a portable type and located within the Unit Owner's Unit or Limited Common Area. 2. Any animals permitted to be kept on the property at any time shall be restrained and controlled at all times. 3: A cage or leash law will be strictly enforced in any of the General Common Areas. 4. The occupants of a Unit and the Owner thereof shall be responsible for the immediate removal and sanitary disposal of "litter" left by their pets or the pets oftheir guests. 5. Any clawing, chewing, barking, aggressive behavior or any other situation that causes property damage to any Unit or the Limited Common Element/s or the General Common Element/s and the actions of a pet that becomes a nuisances to other Owners will be grounds for that animal to be removed from the premises. 6. All pets of the occupying Unit Owner that will reside within that Owner's Unit and that Unit's Limited Common Area will require the written permission of the Management Committee. The approval of such pet will be on a case by case basis, and the approval of one pet dose not automatically mean approval of other animals. 7. All pets of guests of an Unit Owner must be properly restrained and controlled and will be allowed only on a day by day visit basis. 8. Any dog/s loose on the property at any time may be impounded by the Management Committee, and their release may be conditioned upon the payment of a fine or penalty, no matter who owns the dog/so 9. The Management Committee may adopt additional rules and regulations for animal control from time to time. 10. The public is hereby put on notice of this rule and of the potential effect if a member of the public permits their dog/s to be on the property at any time, whether or not they are aware of the whereabouts of the dog/so STRICT DOG CONTROL WILL BE ENFORCED AND IS ESSENTIAL TO THE QUALITY OF THE PROJECT. F. Limitations on Certain Activities. Owners shall not permit any obnoxious or offensive or illegal activity or nuisance to be carried on, in or around their Unit or in the Common Areas. No light shall be emitted or reflected from any Unit which is unreasonably bright or causes unreasonable glare for any adjacent Owner. No unreasonably loud or annoying noises or noxious or offensive odors shall be emitted from any Unit or the Common Area. The Management Committee is expressly authorized to regulate and limit the use of any flammable substance. The use of wood burning stoves in any Unit is prohibited. G. Architectural Control. Upon completion of the building/s, fences, driveways and SUNDANCE CONDOMINIUMS I CCR'S Page 9 of 28 00031.1 landscaping by the Declarant all future maintenance of the exterior of the building/s, driveways, roads, fences and landscaping will be the duty and responsibility of the Management Committee. All alterations, construction or additions must have plans submitted to the Management Committee for review and approval or disapproval at least 30 days prior to start of construction and such alterations, construction or additions that alter the General Common Elements must also be engineered and the altered plat be filed with Lincoln County and approved by the Town of Thayne. In no case shall commencement of such alterations, construction or additions be started without fIrst having all necessary written approvals and permits. The Management Committee shall be controlled by the following guidelines: 1. All maintenance of the building's exterior siding and trim, doors, windows, fences, driveways and landscaping will be under the express responsibility of the Management Committee to insure that the exterior appearance of the Project be equally maintained from Unit to Unit. 2. Any changes in the appearance of the exterior of the building whether changes in color or design (but not limited to), any inclosures (including but not limited to any closing in ofa porch, balcony or deck), or additions to the exterior of the building structure shall be by the following permits and approval: (a.) a permit from the Town of Thayne, and (b.) shall be approved by a majority vote of the members of the Sundance Condominiums Association. All approvals must be in writing and copies of such approvals must be given to the Management Committee. If such approval is given it is the sole responsibility ofthe Owner/s making such application to amend and record any changes to the Plat map/so 3. Any changes to the fences of the Project must be approved by the Building Committee and then by the Management Committee, and approvals must be in writing. 4. Any building construction approved after the completion of the Project by the Declarant which is attached to the Building shall be of quality construction equal to the construction of and in hannony with the design of the existing Building (such as but not limited to poured concrete foundations, 2" x 6" exterior stud walls, matching windows, matching siding, matching roof pitch and construction and fInish) and shall be accompanied by a plan showing foundation plan, floor plan, construction details, all exterior elevations, materials to be used and colors to be used. H. Compliance with Rules and Regulations. Unit Owners shall not violate any rules and regulations for the use of the General and Limited Common Areas adopted by the Management Committee and furnished in writing to the Unit Owners. Fines and other penalties for violations thereof may be imposed and enforced (by special assessment or otherwise) by the Management Committee for violations of such rules and regulations, and it is expressly understood that Unit Owners may be held responsible for acts of their tenants and invitees. SECTION: 13. EASEMENTS FOR ENCROACHMENTS. If any portion of the General Common Elements encroaches upon the Units, a valid easement for the encroachment and for the maintenance of same, so long as it stands, shall and does exist. SECTION: 14. OWNERS VOTING RIGHTS. The Ownerls of each Condominium Unit shall be considered as one Owner thereto, with all voting rights, privileges and liabilities of membership in the Sundance Condominiums Homes Owners' SUNDANCE CONDOMINruMS I CCR'S Page 10 of 28 000312 Association. The Association shall have one class of voting membership. Members shall all be Unit Owners and shall be entitled to one vote for each Unit owned. When more than one person or entity holds an interest in any Unit, all such persons or entities shall be members. The vote for such a Unit shall be exercised as they among themselves detennine, but in no event shall more than one vote be cast with respect to any Unit. SECTION: 15. THE SUNDANCE CONDOMINIUMS HOME OWNERS' ASSOCIATION. A. Membership. Each Unit Owner shall belong to the Sundance Condominiums Home Owners' Association by virtue of owning deeded rights to usage of a Condominium Unit in the Project covered by this Declaration of Covenants. By the sale or other transfer of deeded rights to usage of a Condominium Unit, the transferring Owner's membership in the Association shall be ipso facto transferred to the transferee of such Unit Owner. B. Annual Meetin~. There shall be an annual meeting ofthe Sundance Condominiums Homes Owners' Association to be held in each calendar year, at the Project site or at such other place, date or time as may be designated by written notice of the Management Committee to the Unit Owners not less that fifteen days prior to the actual date fixed for said meeting. At the annual meeting, the Management Committee shall present an audit for fmancial review of the Common Expenses, itemizing receipts and disbursements for the preceding calendar year, the allocation thereof to each Unit Owner and the estimated Common Expenses for the coming calendar year. C. Special Meetin~s. Special meetings of the Association may be held at any time, either upon the call of Owners possessing a one-forth interest in the Units, or upon the call of a majority of the Management Committee. Upon such call, or the receipt of such call, the Management Committee shall send out written notices of the meeting to all Unit Owners, provided that such notice is sent not less than fifteen days prior to the date fixed for said meeting, and shall specify the date, time, place and purpose for said meeting. D. Waiver of Notice. The presence of all Unit Owners, either in person or by proxy, at any meeting, shall render the same a valid meeting. Any meeting so held, notwithstanding the fact that no notice of meeting was given, or that the notice given was improper, shall be valid for all purposes; and at such meeting any general business may be transacted and any action may be taken. Such business or action taken shall be recorded in writing along with the minuets of such meeting. E. Quorum. At any meeting of the Sundance Condominiums Home Owners' Association, those present in person or by proxy, whose aggregate interest in the Units constitutes a majority of the aggregate interests of all Owners in the Units, shall constitute a quorum. Once such quorum is present, the concurring vote of a maj ority of those present on any matter shall be valid and binding upon the Unit Owners, unless otherwise expressly provided by this Declaration of Covenants. The Association may also act without a meeting by written consent of a majority of the voting power of the Unit Owners entitled to vote. Whenever in this Declaration of Covenants the consent or approval of Unit Owners is required, such approval or consent shall be given pursuant to this Section at a meeting of the Association or by a written notice, unless otherwise specifically provided herein. SUNDANCE CONDOMINIUMS / CCR'S Page 11 of 28 00031.3 F. Voting. Any person or entity or combination thereof, owning any Unit in this Project duly recorded in his/her or its name, as determined by the records of the Management Committee shall be entitled, either in person or by proxy, to cast one vote per Unit. Any provision to the contrary notwithstanding, co-owners or joint owners shall be deemed as one Owner. The authority given by an Owner to another to represent such Owner at meetings shall be in writing, signed by such member, or if a Unit is jointly owned then by all joint Owners, or if such Owner is a corporation, by the property officers thereof, and shall be filed with the Management Committee, and unless limited by its terms, such authority shall be deemed good until revoked in writing. An executor, administrator, guardian, or trustee may vote in person or by proxy with respect to any Unit owned or held by him/her in such capacity, whether or not the same shall have been transferred to his name by a duly recorded conveyance; provided, however, that reasonable evidence of such capacity first be offered to the Management Committee. Whenever any Unit is owned by two or more jointly, as determined by the records of the Management Committee, the vote thereof may be exercised by anyone of the Owners present in the absence of protest by the other or others. The Association has the right to suspend the voting rights of a Unit Owner: (a.) for any period during which any Assessment Lien against his/her Unit remains unpaid more than thirty (30) days after its due date, (b.) until the delinquent Assessment Lien is paid in full or (c.) for any other infraction or violation of the Condominium Documents. Such suspension and reinstatement of voting rights shall be delivered to the Unit Owner in writhing. G. Adiournment. Any meeting of the Association may be adjourned from time to time to such place and time as may be determined by a majority vote of the members present, whether a quorum be present or not. H. Fiscal Year. The fiscal year of the Sundance Condominiums Home Owner's Association shall end on December 31 of each year, or as otherwise determined by the Management Committee. SECTION: 16. MANAGEMENT COMMITTEE. A. Creation and Purpose. There is hereby created the Management Committee (the "Committee"), consisting of three (3) members. Each member of the Management Committee should be an Owner (or a duly authorized representative of an Owner which is an entity) of a Unit in this Project at all times during his/her tenure. The purposes of the Management Committee shall be to govern the affairs of the Project on behalf of the Sundance Condominiums Home Owners' Association as its board of directors. B. Term. The Management Committee members shall serve for a term of three years. Each member ofthe Management Committee shall hold office until the next applicable annual meeting of the Owners and until his/her successor shall have been elected and qualified, or until death, resignation, or removal, if one of the latter events occurs sooner; provided however, that if any member ceases to be an Owner or a duly authorized representative of an Owner which is an entity, then, his/her membership on the Management Committee shall thereupon automatically terminate. C. Cumulative Voting. At any election of the Committee members, the vote attributable to each Unit may not be accumulated by the owner thereof. SUNDANCE CONDOMINIUMS I CCR'S Page 12 of 28 000314 D. Resignation and Removal. At any regular meeting or special meeting duly called, any one or more of the members of the Management Committee may be removed with or without cause by a majority vote ofthe Unit Owners and a successor may then and there be elected to fill the vacancy thus created. Any member whose removal has been proposed shall be given an opportunity to be heard at the meeting. Any member may resign at any time by giving written notice to the Manager. E. Vacancv. Any vacancy in the Management Committee occurring during a member's term shall be filled for the balance of that member's term by appointment made by the Management Committee. F. Proceedin~s. If all members of the Management Committee are present, a majority vote shall be the act of the Management Committee. However, two members of the Management Committee shall constitute a quorum and; if a quorum is present, the unanimous decision of those present shall be the act of the Management Committee. The Management Committee shall elect a chairman to preside over its meetings and those of the Association. Minutes of the meetings of the Management Committee shall be maintained and available for inspection by any Owner. Meetings of the Management Committee may be called, held and conducted in accordance with such regulations as the Management Committee may adopt. The Management Committee may also act without a meeting by unanimous written consent of its members. G. Re~ular Meetin~s. Regular meetings of the Management Committee may be held at such time and place as shall be determined, from time to time, by a majority of the Management Committee. Notice of regular meetings of the Management Committee shall be given to each member, personally, by mail or by telephone at least five days prior to the day named for such meeting. H. Special Meetin~s. Special meetings of the Management Committee may be called by its chairman on five day's notice to each member, given personally, by mail or by telephone, which notice shall state the time, place and purpose of the meeting. 1. Waiver of Notice. Before or at any meeting of the Management Committee, any member may in writing waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. Attendance of a member at any meeting of the Management Committee shall be a waiver of notice by him/her of the time and place thereof. If all the members are present at any meeting of the Management Committee, no 1J,otice shall be required and any business may be transacted at such meeting. J. Initial Control Period Until a date which is three years from the date of recordation of this Declaration of Covenants, the Declarant shall have the option to appoint and remove all members of the Management Committee, and to exercise the powers and responsibilities otherwise assigned by this Declaration to the Sundance Condominiums Home Owners' Association. Declarant shall have the option at any time, by an express written declaration, to turn over to the control the Condominiums' Association the total responsibility for electing and removing members of the Management Committee. SECTION: 17. POWERS AND DUTIES OF MANAGEMENT COMMITTEE. SUNDANCE CONDOMINIUMS I CCR'S Page 13 of 28 00031.5 Subject to the rights of the Declarant the Management Committee shall have the powers and duties necessary for the administration, operation and maintenance of the Project. Such powers and duties of the Management Committee shall include, but shall not be limited to, the following, all of which shall be done for and on behalf of the Owners of the Units: A. To administer and enforce the covenants, restrictions, easement, conditions, uses, limitations, obligations and all other provisions set forth in this Declaration of Covenants. B. To enforce compliance with such rules and regulations (including without limitation enforcement provisions such as fmes) as may be necessary for the operation, occupancy and peaceful and orderly use and enjoyment of the Units and the General Common Elements of this Project. C. To incur such costs and expenses as may be necessary to keep in good order, condition and repair all of the General Common Elements and all items of common personal property. D. To insure and keep insured all of the Condominium Units and the insurable General Common Elements of the property and any common fixtures and equipment against loss due to fire or vandalism in an amount equal to the full insurable replacement costs. Further, to obtain and maintain comprehensive public liability insurance covering the entire premises. E. To prepare a budget for the Project, at least annually, in order to determine the amount of the general Assessment Lien payable by the Owners to meet the Common Expenses of the Project, and allocate and assess such common charges among the Owners on a Unit by Unit basis, and by majority vote of the Unit Owners to adjust, decrease or increase the amount of the quarterly or monthly assessments and remit or return or credit towards next years assessment any amount in excess over the actual annual expenses for that year of the current annualfund assessment/s to the Unit Owners at the end of each operating year and to retaining all remaining capital reserve funds in reserve and deferred for maintenance or for replacement of the General Common Elements. The budget assessed in the general Assessment Lien is to be set in accordance with but not limited to the following items: 1. A capital reserve fund as an accumulating reserve fund set aside for future expenses for maintenance, reinstallation, or new construction of the following items: siding, roofs, other building structure/s, utilities in the General Common Area or General Common Elements of the buildings, fences, parking lots and driveway areas, side walks and porches, decks and balconies, general building insurance and liabilities, landscaping, a reserve for miscellaneous items and unforseen contingencies, and/or other reserve capital items which will be of a permanent nature as may be voted upon by the Association. 2. A current annual fund of actual costs for expenses incurred annually for the following: lawn care and gardening, snow removal, garbage removal, and managerial and office costs, legal costs, or other costs as may be voted upon by the Association. 3. A one times special assessment fund of actual costs as voted upon. F. To levy one or more special assessment/s upon all Unit Owners in addition to the general Assessment Lien. Such special assessment/s are only to be levied when the facts at hand requiring such special assessment/s are brought to the Association for a vote and when the general Assessment Lien shall appear to the Management Committee to be insufficient to enable it to SUNDANCE CONDOMINIUMS I CCR'S Page 14 of 28 00031.6 carry out its obligations in connection with the operation of the Project or whenever the Management Committee is required to make an expenditure under or in connection with this Declaration of Covenants for which there are not sufficient funds available in the above mentioned funds. Upon the afore mentioned vote the special assessment/s will become a Common Expense and part of the Assessment Lien. One or more special assessments may be levied by the Management Committee upon less than all Owners when pennitted by this Declaration of Covenants. Unless the Management Committee notifies otherwise the Unit Owner or Owners against whom a special assessment has been levied, the special assessment is payable in full on the date specified in the notice of the levy. G. To enforce collection of any delinquent Assessment Liens and all other fees and charges owed to the Association in any manner allowed by law, including, but not limited to: 1. Bringing an action at law against the Unit Owner personally obligated to pay the delinquent amounts which came due at the time he/she was the Owner thereof, which action may be brought without waiving the Assessment Lien securing any such delinquent amount; 2. Bringing an action to foreclose its Assessment Lien against the Unit in the manner provided by law for the foreclosure of a realty mortgage including by advertisement and sale; 3. Suspending voting rights as provided herein; 4. Filing a lien for the delinquent amount and any interest and any reasonable attorney's fees or court costs with the County Clerk of Lincoln County. H. To protect and defend on behalf of the Project any part or all of the project from loss and damage by suit or otherwise. 1. To borrow funds in order to pay for any additional building, major building repairs or for the reconstruction as set forth in Section 34. 1. To enter into contracts to carry out their duties and powers. K. To establish a bank account or accounts for the common treasury and for all separate funds which are required or may be deemed advisable. L. To make all repairs and do all maintenance to the General Common Elements and the Units. M. To keep and maintain full and accurate books and records showing all of the receipts, expenses, disbursements, meeting minuets, plans and pennits, any other agreements and to pennit examination thereof at any reasonable time by any Owner. N. To prepare and deliver annually to each Unit Owner a statement showing receipts, expenses and disbursements since the last such statement. O. To meet at least once each year. P. To hire or designate the personnel necessary for the maintenance of the General and Limited Common Elements and the personnel necessary for secretarial, management or other SUNDANCE CONDOMINIUMS I CCR'S Page 15 of 28 operations necessary for the good of all the Unit Owners. 00031.7 Q. In general, to carry on the administration of the Project and to do all things necessary and reasonable in order to carry out the governing and the operation of the Project. SECTION: 18. MANAGER. A manager may be a person or a fIrm designated or contracted by the Association to manage, in whole or in part, the affairs of the Association. The Management Committee may elect to perform the functions of a manager in whole or in part, but in no case shall the Management Committee receive any compensation for such duties. Any Manager shall have the exercise of such powers as are granted to the Management Committee hereunder, but said Manager shall be directly responsible to and under the control of the Management committee. SECTION: 19. NO WAIVER. The omission or failure ofthe Management Committee, the Manager, or any Unit Owner to enforce the covenants, conditions, restrictions, easements, uses, limitations, obligations or other provision of this Declaration of Covenants, or the house rules and regulations adopted pursuant thereto, shall not constitute or be deemed a waiver, modifIcation or release thereof; and the Management Committee, the Manager, or any Unit Owner shall have the right to enforce the same thereafter. The failure or delay of the Management Committee, the Manager or the Association to prepare or adopt a budget for any fIscal year shall not constitute a waiver or release in any manner of a Unit Owner's obligation to pay his allocable share of the Common Expenses; and each Unit Owner shall continue to pay the Common Expense Assessment against his/her Unit as established for the previous fIscal year until notice of the Common Expense Assessment for the new fIscal year has been established by the Management Committee or the Manager. SECTION: 20. COMPENSATION. No member of the Management Committee shall receive any compensation for acting as such. SECTION: 21. ACCOUNTS. The funds and expenditures of the Unit Owners shall be credited and charged to accounts under the following classifIcations as shall be appropriate, all of which expenditures shall be common expenses: A. Capital reserve fund reserved for maintenance or repairs or replacement required because of damage, wear, or obsolescence and for additional structures and shall be voted upon not less than annually and allocated by a majority vote of the members. B. Current annual fund, which shall include all funds and expenditures within the year for which the funds are budgeted, including a reasonable allowance for contingencies and working funds, except expenditures chargeable to reserves for the capital reserve fund and shall be voted upon not less than annually and allocated by a majority vote of the members. C. A one time special assessment which shall be limited to the actual costs as required and shall be voted upon as need requires. SUNDANCE CONDOMINIUMS I CCR'S Page 16 of 28 SECTION: 22. INDEMNIFICATION. 00031.8 Contracts or other commitments made by the Management Committee or the Manager shall be made as agent for the Association, and Unit Owners shall have no personal responsibility on any such contract or commitment (except as Owners under Section 34 hereof). Every member ofthe Management Committee shall be indemnified by the Association, against all reasonable costs, expenses and liabilities (including reasonable legal fees) actually and necessarily incurred by or imposed upon him! her in connection with any claims, action, suit, proceeding, investigation or inquiry of whatever nature in which he/she may be involved as a party or otherwise by reason of having been a member of the Management Committee whether or not such individual continues to be a member of the Management Committee at the time of incurring or imposition of such costs, expenses or liabilities, except willful misconduct or gross negligence or malfeasance toward the Owners in the performance of duties. The foregoing right of indemnification shall be in addition to and not in limitation of all rights to which such persons may be entitled as a matter of law and shall inure to the benefit of the legal representatives of such person/so SECTION: 23. EXCULPATION. No member of the Management Committee shall be liable for the acts or defaults of any other member or for any loss sustained by the Owners as a result thereof, unless the same has resulted from hislher own willful misconduct. SECTION: 24. MECHANIC'S LIEN. No labor performed or materials furnished for use in connection with any Condominium Unit with the consent or at the request of the Owner thereof or his agent, contractor or subcontractor, shall create any right to file a statement ofmechanic's lien against the Unit of any other Owner not expressly consenting to or requesting the same or against any interest in the General Common Elements except as to the undivided interest therein appurtenant to the Unit of the Owner for which such labor shall have been performed and such materials shall have been furnished. Each Owner shall indemnify and hold harmless each of the other Owners from and against liability or loss arising from the claim of any claim against the Condominium Unit of the Owner, or any part thereof, for labor performed or for materials furnished in work on such Owner's Unit. At the written request of any Owner, the Association shall enforce such indemnity by collecting from the Owner of the Condominium Unit on which the labor was performed and materials furnished the amount necessary to discharge any such lien, and all costs incidental thereto, including attorney's fees. If not promptly paid, the Association may collect the same in the manner provided herein for collection of assessments for the purpose of discharging the lien. SECTION: 25. RESERVATION FOR ACCESS. The Association shall have the irrevocable right, to be exercised by the Management Committee or the Manager, to have access to each Unit from time to time during reasonable hours as may be necessary for the maintenance, repair or replacement or for making emergency repairs therein necessary to prevent damage to the General Common Elements or to another Unit. Damage to the interior or any part of a Unit resulting from the maintenance, repair, emergency repair, or replacement of any of the General or Limited Common Elements or as a result of emergency repairs within another Unit, at the insistence of the Management Committee or the Manager, shall be a common expense of all the Unit Owners unless such damage is the result ofthe misuse or negligence of a Unit Owner or such Owner's invitees, guests or representatives, in which case such expense shall be charged to such Unit Owner. SUNDANCE CONDOMINIUMS / CCR'S Page 17 of 28 SECTION: 26. MAINTENANCE RESPONSmILITIES. 00031.9 The maintenance and repair of the exterior of the building and the General Common Elements will be the responsibility of the Association, not the individual Unit Owners. An Owner shall maintain, replace and keep in good repair the interior of his/her own Unit, including the fIxtures, window glass, doors, appliances (including but not limited to the furnace and the furnace ducts which are specifIcally installed for that Unit, hot water heater, kitchen stove or micro-wave oven) and interior paint and wall coverings. All fIxtures and equipment installed within the Unit commencing at a point where the utilities (including but not limited to power, gas, and telephone lines) enter the Unit shall be maintained and kept in repair by the Owner thereof. The Unit Owner must repair items such as paint and sheetrock which are damaged by the Unit's occupants or fIre unless the repair cost is covered by the insurance of the Association. An Owner shall do no act nor any work that will impair the structural soundness or integrity of the Unit or the Unit of any other Owner. An Unit Owner shall also keep any Common Area appurtenant to his/her Unit in a clean and sanitary condition. An Unit Owner shall be responsible for the cost of repairs for damage caused by the negligence of the himselflherself or any occupant of his/her Unit, to the extent uninsured by the Association (such as the deductible amount). Unit Owners are required to maintain their own Home Owner's Condominium Unit Owner's Insurance and to require renter's to obtain their own Home Owner's Renter's Insurance Policies as appropriate to cover their own insurance needs and payment of damages. such as the deductible amount. which is not insured by the Association itself. Declarant shall not be liable for the costs of maintenance, repair or replacement of any Units or other improvements. SECTION: 27. REVOCATION OR AMENDMENT TO DECLARATION. This Declaration of Covenants shall not be revoked unless all of the Unit Owners and all of the holders of any recorded fIrst mortgage or fIrst deed of trust covering or affecting any or all of the Units unanimously consent and agree to such revocation by instrument duly recorded. This Declaration of Covenants shall not be amended unless all the Owners of the Units consent and agree to such amendment by instrument duly recorded and attested by the president and secretary of the Association, provided that amendment of this Declaration of Covenants shall always require the consent of all holders of any recorded fIrst mortgages. SECTION: 28. ADDITIONS. ALTERATIONS AND IMPROVEMENTS. The Declarant retains full authority to further improve the Property and add to and utilize the General Common Elements until such time as the Project is turned over to the Association by the Declarant as set forth herein. SECTION: 29. ASSESSMENTS. The making and collection of Assessment Liens of any nature from Unit Owners for their share of Common Expenses (determined pursuant to this Article and other applicable provisions of this Declaration of Covenants) shall be carried out by the Management Committee in accordance with the following provisions: A. When Assessments Commence. Assessments for any Condominium Unit shall commence on the applicable date specifIed by the Declarant, but not later than the date of closing of a sale of a completed Unit by Declarant. SUNDANCE CONDOMINIUMS / CCR'S Page 18 of 28 OO()320 B. Shares of Common Expenses. Each Owner of a Unit shall be responsible for an equal proportionate share of all approved Common Expenses, and in addition units tWo and four each will also pay 1/3 of the power bill generated by the hallway for the 8-plex building. Such Common Expenses shall be the responsibility of all Owners and shall be shared by all Owners on an equal Unit-by-Unit basis. The amount ofthe Common Expenses assessed against each Unit shall be the personal and individual debt of the Ownerls thereof. No Owner may exempt himself from liability for his contribution towards the Common Expenses by waiver of the use or enjoyment of any of the General Common Elements, by attempting to do the maintenance himselflherself or by abandonment of hislher Unit. The Management Committee in its discretion may bill specific Unit Owners for specific services or repairs for damage caused by the negligence ofthat Unit Owner or invitees to the extent uninsured as a special assessment against the applicable Ownerls and their Unit/so In the event of default in the payment of the assessments, the Unit Owner shall be obligated to pay interest on the amount of the assessment from the due date thereof, together with all expenses incurred, including attorney's fees, together with such late charges and interest as are decided upon by the majority vote at a regular annual meeting. C. Rights to Collect From Tenant. If an Unit Owner shall, at any time, lease hislher Unit and shall be in default for a period of one month or more in the payment of assessments or other charges, the Management committee may, at its option, so long as such default shall continue, demand and receive from any tenant or subtenant of the Unit Owner the rent due or becoming due; and the payment of such rent to the Management Committee shall discharge such tenant or subtenant from the obligation for rent to the Unit Owner and the Unit Owner from hislher obligation to the Association, to the extent of the amount so paid. The Management Committee shall be fully entitled to demand and receive a copy of the applicable lease agreement. SECTION: 30. INSURANCE. The Management Committee, or Manager, shall obtain and maintain at all times insurance of the type and kind stated in this Declaration of Covenants issued by responsible insurance companies authorized to do business in Wyoming. The fire and extended coverage insurance, including vandalism and malièious mischief, to be maintained as to the Units shall also cover all fixtures, interior walls and partitions, decorated and finished surfaces of perimeter walls, floors, and ceilings, doors, windows and other elements or materials comprising a part of the Units. The insurance shall be carried in blanket policy fonn naming the Management Committee the insured, as attorney-in-fact for all of the Unit Owners, and shall be a Common Expense, which policy or policies shall contain a standard non- contributory mortgage clause in favor of each first mortgagee, and a noncancellation clause (whether or not requested by the Owners of Units) providing that such policy or policies may not be canceled except upon thirty (30) days' prior written notice thereof to the Management Committee, each first mortgagee and every other person in interest who shall have requested such notice of the insurer. The Management Committee, or the Manager, shall also obtain and maintain public liability insurance insuring each member of the Manage~ent committee, the Manager, if any, the Association and the Unit Owners against any liability to the Owners or any other person incident to the ownership of or use of the Project or any part thereof. Limits of liability under such insurance shall not be less than Five Hundred Thousand Dollars($500,000.00) for anyone person injured, One Million Dollars ($1,000,000.00) for each occurrence, and Five Hundred Thousand Dollars ($500,000.00) for property damage for each occurrence. This is just the minimum amount, and it is expressly contemplated that the Management Committee may, in its discretion, obtain insurance with higher limits and insurance against risks (such as earthquake damage) which are not specifically referred to herein. SUNDANCE CONDOMINIUMS I CCR'S Page 19 of 28 000321 SECTION: 31. RESTRICTIONS RELATING TO INSURANCE COVERAGE. Without the prior written consent of the Management Committee, nothing shall be done, kept or permitted to exist in any Unit or in the Common Area, which will result in an increase in the rate of insurance therein. No Unit Owner shall permit anything to be done or kept in hisl her Unit which will result in the cancellation of insurance covering the Project or any part thereof, or which would be in violation of any law. SECTION: 32. FORECLOSURE OF LIEN. The Association shall have the power to bid in the indebtedness owed to the Association at any foreclosure sale and to purchase, acquire, hold, lease, mortgage and convey any and all Units purchased at such sale. SECTION: 33 MORTGAGES. A. Mortgage. The term "Mortgage" as used herein shall mean any recorded mortgage, deed of trust, or other security instrument having priority over other mortgages. The term "Mortgagee" shall mean the holder and owner of a mortgage as well as any insurer or guarantor of the mortgage. B. Notice. All Mortgagees are entitled, upon written request and after furnishing their addresses in writing to the Association or the Manager, to receive written notice of any default under this Declaration of Covenants or Assessment Lien which has become delinquent by the Owner of the corresponding Unit. C. Subordination of Assessment Lien. The lien of any assessment created under this Declaration of Covenants which arises before the time at which a Mortgagee obtains title to the mortgaged property shall be subordinate to the lien of the Mortgage held by the Mortgagee. However, the sale or transfer oftitle to property by deed, assignment or conveyance in lieu of foreclosure or aIiy other voluntary conveyance of title, shall not relieve, (a.) a party or its grantee (other than a Mortgagee) or other successors and assigns (whether as a result of a foreclosure or deed-in-lieu of foreclosure or otherwise by specifically excluding any Mortgagee itself) from liability from any charges which become due and payable before such sale or transfer or, (b.) a party or its grantee or other successors and assigns from liability from any charges which thereafter become due and payable, as the case may be. D. Application of Assessments. No Mortgagee shall be liable for the payment of assessments against the mortgaged property, except those accruing after such Mortgagee obtains title to the property pursuant to its remedies under its Mortgage. E. Notice by Mortgagees. All persons and entities holding a Mortgage affecting any portion of the Sundance Condominiums shall give written notice to the Association of the nature of their interests in the Condominiums along with contact information, the recording information pertaining to all deeds of trust, mortgages indebtedness secured by any such deed of trust, mortgage or security instrument. Any entity who has not given the notice required by this section shall not be entitled to the rights of a Mortgagee accorded by this Declaration of Covenants. SUNDANCE CONDOMINIUMS / CCR'S Page 20 of 28 000322 F. No hnpainnent of Mortgage Liens. No violation or breach of or failure to comply with any provision of this Declaration of Covenants and no action to enforce any such provision shall affect, defeat, render invalid or impair the lien of any Mortgage, or other lien on any Condominium Unit or the General Common Elements taken in good faith and value and perfected by recording in the office of the County Clerk of Lincoln County, State of Wyoming, prior to such violation, breach or failure to comply with any provision of this Declaration of Covenants; nor shall such violation, breach, failure to comply, or action to enforce, effect or defeat, render invalid or impair the title or interest of the holder of any such Mortgage, deed of trust, or other lien or the title or interest acquired by any purchaser upon foreclosure of any such Mortgage, deed of trust or other lien or result in any liability, personal or otherwise, of any such holder or purchaser. Any such purchaser on foreclosure shall, however, take subject to this Declaration of Covenants; provided, however, that violations or breaches of, or failures to comply with, any provisions, of this Declaration of Covenants which occur prior to the vesting of fee simple title in such purchaser shall not be deemed breaches or violations hereof or failures to comply herewith with respect to such purchaser, his heirs, personal representatives, successors or assigns. G. Separate Mortgages. Each Unit Owner shall have the right to mortgage or otherwise encumber his Condominium Unit; however, no Owner shall attempt to or shall have the right to mortgage or otherwise encumber the General Common Elements or any part hereof except the undivided interest therein appurtenant to his/her Condominium Unit. Any mortgage or other encumbrance of any Condominium Unit within the Project shall be subordinate to all of the provisions of this Declaration of Covenants, and in the event of foreclosure the provisions of this Declaration of Covenants shall be binding upon any Unit Owner whose title is derived through the foreclosure by private power of sale, judicial foreclosure or otherwise. H. Payment Order In the Event of Sale or F orec1osure. The order of payment of sale or funds derived therefrom shall be in the following order: 1. Payment of taxes and special assessment liens in favor of any assessing entity, and the customary expense of sale; 2. Payment of the balance of the lien of any fIrst mortgage or deed of trust, with interest and/or any prepayment penalty; 3. Payment of unpaid Common Expenses, the Assessment Lien or special assessments together with back Assessment Lien if any, with interest and reasonable attorney fees; 4. Payment of junior liens and encumbrances in the order thereof and to the extent of their priority; and 5. Payment of the remaining balance, if any, to the Unit Owner. SECTION: 34. RECONSTRUCTION. This Declaration of Covenants does hereby make mandatory the irrevocable appointment of an attorney-in-fact to deal with the Property upon its destruction, for repair, reconstruction or obsolescence. Title to any Unit is declared and expressly made subject to the terms and conditions hereof, and acceptance by any grantee of a deed or other instrument of conveyance from the Declarant or from any Owner or grantor shall constitute appointment of the attorney-in-fact herein provided. All of the Owners irrevocably constitute and appoint the Management Committee their true and lawful attorney in their name, place, and stead for the purposes of dealing with the property upon its destruction or obsolescence as is hereinafter provided. As attorney-in-fact, the Management Committee shall have full and complete SUNDANCE CONDOMINIUMS / CCR'S Page 21 of 28 000323 authorization, right and power to make, execute and deliver any contract, deed or any other instrument with respect to the interest of a Condominium Unit which is necessary and appropriate to exercise the powers herein granted. Repair and reconstruction of improvements as used in the succeeding paragraphs means restoring improvements to substantially the same vertical and horizontal boundaries as before. The proceeds of any insurance collected shall be available to the Management Committee for the purpose of repair, restoration, reconstruction or replacements unless the Owners and first mortgagees agree not to build in accordance with the provisions set forth hereinafter. A. In the event of damage or destruction due to fire or other disaster. the insurance proceeds. if sufficient to reconstruct improvements, shall be applied by the Management Committee, as attorney-in-fact, to such reconstruction, and improvements shall be promptly repaired and reconstructed. The Management Committee shall have full authority, right and power, as attorney-in-fact, to cause the repair and restoration ofthe improvements. B. If the insurance proceeds are insufficient to repair and reconstruct-improvements. and if such damage is to one-third or fewer Condominium Units, such damage or destruction shall be promptly repaired and reconstructed by the Management Committee, as attorney-in-fact, using the proceeds of insurance and the proceeds of an assessment to be made in the manner hereinafter set out. If any mortgage or deed of trust holder of any damaged Unit required and received payment of any part of the insurance proceeds, the Owner of that Unit shall pay to the Management Committee the amount so received by such mortgagee or deed of trust holder for use by the Management Committee, with the balance of the insurance proceeds, in repairing and reconstructing pursuant hereto. The insurance proceeds, together with payments made by Unit Owners shall be held in a building account for use in repairs and reconstruction pursuant hereto. Any deficiency in the building account shall be assessed against the Unit Owners as a common expense. Such assessment shall be payable within ninety (90) days after written notice thereof to the Owners assessed. The Management Committee shall have full authority, right and power, as attorney-in-fact, to cause the repair or restoration of improvements using all of the insurance proceeds and Unit Owners to pay an assessment. The assessment provided for herein shall be a debt of each Unit Owner and a lien on his/her Condominium Unit and may be enforced and collected as is provided in this Declaration of Covenants. In addition thereto, the Management Committee, as attorney-in-fact, shall have the absolute right and power to sell the Condominium Unit of any Owner refusing or failing to pay such deficiency assessment within the time provided, and if not so paid, the Management Committee shall cause to be recorded a notice that the Condominium Unit of the delinquent Owner shall be require to pay to the Management Committee the costs and expenses for filing the notices, interest at the rate of 10% per annum on the amount of the assessment from and after said 90 day period, and all reasonable attorney's fees incurred in selling the Unit and collecting said assessment. The proceeds derived from the sale of such Condominium Unit shall be used and disbursed by the Management Committee, as attorney- in-fact, in the following order: 1. Payment of taxes and special assessment liens in favor of any assessing entity, and the customary expense of sale; 2. Payment of the balance of the lien of any first mortgage or deed of trust, with interest and/or prepayment penalty; 3. Payment of unpaid Common Expenses, the Assessment Lien or special assessments together with back Assessment Lien if any, with interest and reasonable attorney fees; 4. Payment of junior liens and encumbrances in the order thereof and to the SUNDANCE CONDOMINIUMS I CCR'S Page 22 of 28 000324 extent of their priority; and 5. Payment ofthe remaining balance, if any, to the unit owner. NOTE: Under the conditions listed below in Section 34, Reconstruction, Paragraph C, the balance remaining, if any, shall be paid to the unit owners based on the percentages set forth in Exhibit B hereto. C. If the insurance proceeds are insufficient to repair and reconstruct the damaged improvements. and if such damage is to more than one-third of the Condominium Units. Reconstruction shall be as follows: 1. If the Owners representing an aggregate ownership interest of 51 percent, or more, of the General Common Elements do not voluntarily, within 100 days after such damage, make provisions for reconstruction, which plan must have the unanimous approval or consent of every holder of a fIrst mortgage then of record, the Management Committee shall forthwith record a notice setting forth such fact or facts, and upon the recording of such notice, the entire Condominium Project shall be sold by the Management Committee pursuant to the provisions of this paragraph, as attorney-in-fact for all of the Owners, free and clear of the provisions contained in this Declaration of Covenants and the Plat Map/s. The insurance settlement proceeds shall be collected by the Management Committee, and such proceeds shall be divided by the Management Committee according to each Owner's percentage interest in the General Common Elements, and such divided proceeds shall be paid into separate accounts, each account representing one ofthe Condominium Unit designation and the name ofthe Owner. The total funds of each account shall be used and disbursed, without contribution from one account to another, by the Management Committee, as attorney-in-fact, for the same purposes and in the same order as is provided in Paragraph B, 1. through 5., of this Section 34. 2. If the Owners representing an aggregate ownership interest of 51 %, or more, of the Units adopt a plan for reconstruction, which plan has the unanimous approval of all holder of fIrst mortgages then of record, then all of the Owners shall be bound by the tenus and other provisions of such plan. Any assessment made in connection with such plan, shall be a lien, and may be enforced to the extent and in the manner set out in paragraph B of this Section and shall be due and payable as provided by the tenus of such plan, but not sooner than 90 days after written notice thereof. The Management Committee shall have full authority, right and power, as attorney-in-fact, to cause the repair or restoration of improvements using all of the insurance proceeds and any Unit Owner's payments for such purpose notwithstanding the failure of any Owner to pay an assessment. g. The Owners representing an aggregate ownership interest of one-third of the common elements may agree that the buildings should be razed and new ones built, and adopt a plan for the renewal and reconstruction, which plan shall require the unanimous approval of all holders of fIrst mortgages of record at the time of the adoption of such plan. If a plan for the renewal or reconstruction is adopted, any assessment made in connection with such a plan shall be payable by all of the Owners as Common Expense; provided, however, that an Unit Owner not a party to such plan for renewal or reconstruction may give written notice to the Management Committee within 30 days after the date of option of such plan that such Unit shall be purchased by the Management SUNDANCE CONDOMINIUMS I CCR'S Page 23 of 28 000325 Committee for the fair market value thereof. The management Committee shall then have 60 days thereafter within which to cancel such plan. If such plan is not canceled, the Unit of the requesting Unit Owner shall be purchased according to the following procedures. If such Unit Owner and the Management Committee can agree on the fair market value thereof, then such sale shall be consummated within 60 days thereafter. If the parties are unable to agree, the Unit Owner shall appoint his own appraiser and the Management Committee appoint its own appraiser and the average of the two appraisals shall be the purchase price; or the Unit Owner may take the matter to mediation or arbitration as set forth herein, which decision shall be binding and final. In the event of arbitration, the Unit Owner shall be liable for all reasonable attorney fees and/or arbitration fees. The expenses and fees of such appraisers shall be borne equally by the Management Committee and the Unit Owner. The sale shall be consummated within 60 days thereafter and the Management Committee, as attorney-in-fact shall pay the purchase price therefore in cash and shall disburse such purchase price for the same purposes in the same order as is provided in Paragraph B, 1. through 5., of this Section 34. At the time of payment to such Unit Owner, such Unit Owner shall deliver to the Management Committee, or its nominee, a good and sufficient warranty deed to the Unit, fully executed and in recordable form, free and clear of all liens, charges and encumbrances. SECTION: 35. GENERAL RESERVATIONS. Declarant reserves the right until completion of the Project and until a written statement to that effect is recorded by Declarant, to establish easements, reservations, exceptions and exclusions for the best interests of the Project. SECTION: 36. COVENANTS TO RUN WITH THE LAND. Each of the covenants of this Declaration of Covenants shall run with the real Property, which is the subject of this Declaration of Covenants, and each and every Condominium Unit and every interest therein or pertaining thereto, and shall bind the Declarant, its successors, grantees and assigns, and all parties claiming by, through, or under the Declarant. Each purchaser of any Unit shall, by acceptance of the deed or other conveyance of any such Unit, be conclusively deemed to have consented to and agreed to each and all of said covenants for himselflherself and his/her heirs, executors, administrators, successors and assigns, and does, by said acceptance, covenant for himself/herself and his/her heirs, executors, administrators, successors, and assigns, to observe, perform and be bound by each and all of said covenants. SECTION: 37. ASSIGNMENT OF DECLARANT'S RIGHTS. Declarant reserves the right to vest any entity with all or any of the rights, interests, privileges, easements, powers and duties herein retained or reserved by Declarant, by a supplemental declaration and assignment which shall be effective when recorded in the Office of the County Clerk, Lincoln County, Wyoming, and Declarant shall thereupon be relieved and discharged from every duty so vested in such other entity. SECTION: 38. ARBITRATION AND MEDIATION. All disputes not involving claims for indemnity and arising under this Declaration of Covenants SUNDANCE CONDOMINIUMS / CCR'S Page 24 of 28 000326 between an Owner or Owners and the Association or the Management Committee shall, upon the request of either party, be resolved either by mediation or arbitration. In the event any such Owner or Owners are aggrieved and wish to pursue a Claim with respect to any provision hereunder or otherwise against the Association such Unit Owner may only do so through the below listed actions. The foregoing is not intended to be a limitation to all the rights to which such personls may be entitled under the laws ofthe State of Wyoming. A. Any "Claim" which any party has against another party pertaining to the matters set forth or referred to in the Declaration must be presented by the claiming party to the other within one (1) year of the date the claiming party knew or should have known of the facts giving rise to the Claim. B. The Parties shall make every reasonable effort to meet in person and encourage the amicable resolution of disputes, without the emotional and financial costs of litigation and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Management Committee may appoint a representative to assist the Parties in negotiation. C. If the Parties do not resolve the Claim within thirty (30) days after the date of the Notice (or within such other period oftime as may be agreed upon by the Parties) ("Termination of Negotiations"), Claimant shall have thirty (30) days to submit the Claim to mediation under the auspices of the American Arbitration Association ("AAA") in.accordance with the AAA's Rules, as appropriate. This is not intended to preclude the parties from agreeing, in writing, to submit their dispute to another alternative dispute resolution organization or individual for mediation. D. If Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the Claim; and, as a result of, Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to any Person other than the Claimant. E. Any settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties. If the Parties do not settle the Claim within thirty (30) days after submission of the matter to the mediation, or within such other time as determined by the mediator or agreed to by the Parties, the mediator shall, issue a notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was terminated. F. Each Party shall bear its own costs of the mediation, including attorney's fees, and each Party shall share equally all charges rendered by the mediator. If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with this Section 38 and any Party thereafter fails to abide by the terms of such agreement, then any other Party may file suit or initiate arbitration proceedings to enforce such agreement without the need to again comply with the procedures set forth herein. In such event the Party taking action to enforce the agreement shall be entitled to recover from the non-complying Party (or if more than one, from all such Parties pro rata) all costs incurred in enforcing such agreement, including without limitation, attorney's fees and court costs. SUNDANCE CONDOMINIUMS I CCR'S Page 25 of 28 000327 G. Upon Termination of Mediation, Claimant shall thereafter be entitled to initiate final, binding arbitration of the Claim under the auspices of the AAA. The arbitration shall be conducted in accordance with the Commercial rules of the AAA, as appropriate. Such claims shall not be decided by or in a court of law. Any judgment upon the award rendered by the arbitrator may be entered in and enforced by any court having jurisdiction over such Claim. If the claimed amount exceeds $500,000.00, the dispute shall be heard and determined by three arbitrators. Otherwise, unless mutually agreed to by the Parties, there shall be one arbitrator. Arbitratorls selected shall be qualified in the subject matter of the arbitration service and such rules shall specifically include rules of practice, procedure and evidence. H. Each Party shall bear its own costs and expenses and an equal share ofthe arbitrator's and administrative fees of arbitration. Notwithstanding the foregoing, if a Party unsuccessfully contests the validity or scope of arbitration in a court of law, the non-contesting party shall be awarded reasonable attorney's fees and expenses incurred in defending such contest. All decisions respecting the arbitrability of any Claim shall be decided by the arbitrator/so 1. The decision of the arbitratorls shall be conclusive and binding upon the parties and shall be enforceable through procedures adopted under the laws of the State of Wyoming for the enforcement of arbitration awards. The award of the arbitratorls shall be accompanied by detailed written fmdings of fact and conclusions of law. Except as may be required by law or for confmnation of an award, neither a party nor an arbitrator may disclose the existence, content, or results of any aÍbitration hereunder without the prior written consent of both parties. IN WITNESS WHEREOF, this Declaration has been executed by the Declarant effective as of the date of recordation hereof. DECLARANT: BRUCE M. DAVIS AND BETTY B. DAVIS of Afton, Lincoln County, Wyoming :~.~ 11/, Qcw-S Bruce M. Davis ð~-V~ B. Davis STATE OF WYOMING :SS COUNTY OF LINCOLN . The fore~g instrument was acknowledged by ðr (LtG M. h A-vi 5. ~ h. . viS on this t.e+-- day of -rn11.rt.Jt and .2OOtr.-;).C:D9 JENNIFER Stalaol Wyoming (~~Q:& Counly 01 Lincoln (e Commission Expires March 28, 2011 Y commission expires 'fY/a;., (I/k ;l ¥. 'J (J I J SUNDANCE CONDOMINIUMS I CCR'S Page 26 of 28 000328 EXHIBIT A LEGAL DESCRIPTION BSEnTDn ~ @lFù~~lFù@@~~lFù~ =.IldahO Falls, Idaho December 6, 2007 Job #4185 C.W.D. Legal Description Sundance Condominiums Beginning at the Northwest comer of Lot 1, Block 1, Van Noy Park Addition to the Town of Thayne, Lincoln County, Wyoming and running thence 889°54'24"E 120.75 feet to the Northeast comer of Lot 1; thence 800°32' 12"E 129.18 feet to the Northwest comer of Lot 21; thence 889°54'24"E 120.75 feet; thence 800°32' 12"E 42.84 feet along the East line of Block 1; thence N89°54'24"W 120.75 feet; thence 800°32' 12"E 43.50 feet; thence N89°54'24"W 120.75 feet; thence NOoo32' 12"W 215.53 feet along the West line of Block 1 to the point of beginning, containing 0.716 acres. SUNDANCE CONDOMINIUMS / CCR'S Page 27 of 28 EXHIBIT B PERCENT AGE OF OWNERSIllP IN THE GENERAL COMMON ELEMENTS 12 UNITS, AT 1/12TH (0.0833%) VOTE FOR EACH UNIT SUNDANCE CONDOMINIUMS I CCR'S Page 28 of 28 000329