THIS DECLARATION OF COVENANTS, CONDITION AND RESTRICTIONS is made this December 20, 2024 by the Meadows at Rexburg Homeowners Association, Ltd, (The Meadows) a non-profit corporation organized and existing under the laws of the State of Idaho, concerning the the residential Subdivision known as The Meadows. Upon the adoption of these Covenants, Conditions, and Restrictions, all prior Covenants, Conditions, and Restrictions, as evidenced by Instruments Nos. 313227, 314446, and 314447, shall be revoked and replaced in their entirety. All Plats shall remain in full force as recorded in the Public Records.

ARTICLE I
DEFINITIONS

The following terms used in this Declaration are listed alphabetically and shall have the meanings:

Articles shall mean and refer to the Articles of Incorporation of the Association, which are or shall be filed with the Secretary of State of the State of Idaho, as they are amended from time to time.

Assessment shall mean the amount which is to be levied and assessed against each Owner and the Owner's Lot or Unit (whether an Annual, Special or Specific Assessment, as described in the Bylaws) and paid to the Association for Common and other expenses.

Association shall mean The Meadows at Rexburg Homeowners Association, Ltd., an Idaho nonprofit corporation, its successors and assigns, which shall own and manage the Common Areas. Each Owner shall hold an appurtenant membership interest in the Association, as set forth in the Bylaws.

Board shall mean the Board of Directors of the Association.

Bylaws shall mean and refer to the Bylaws of the Association.

Common Areas shall mean all portions of the Development except the Lots and Units, and shall include all property to be owned by the Association for the common use and enjoyment of the Owners such as all private undedicated roadways, driveways, parking, recreational amenities, open appurtenant thereto, whether or not reflected on a Plat.

DRC shall mean and refer to the Design Review Committee referred to in ARTICLE VII of this Declaration.

Declarant shall mean the current board of directors of the Association.

Declaration shall mean this Declaration of Covenants, Conditions and Restrictions for The Meadows, a planned development in the City of Rexburg, Madison County, State of Idaho, as the same may be supplemented or amended from time to time. Supplemental Declaration shall mean and refer to an instrument which supplements the Declaration and which is recorded in the Public Records concurrently with a Plat for a subsequent phase of the Development pursuant to the annexation provisions of ARTICLE Ill of this Declaration.

Development shall mean the planned townhouse development known as “The Meadows” in the City of Rexburg, Madison County, State of Idaho.

Limited Common Area shall mean any Common Area designated for exclusive use by the Owner of a particular Townhouse Unit, whether or not designated as such on any Plat. Any Limited Common Areas that are identified on a Plat with the same number or other designation by which a Unit is identified thereon shall be Limited Common Area for the exclusive use of the Owner of the Unit bearing the same number or designation.

Lot shall mean and refer to any of the separately numbered and individually described parcels of land within the Development, as designated within numbered Blocks/Buildings on a Plat, and intended for single family residential use.

Managing Agent shall mean any person or entity appointed or engaged as Managing Agent of the Development by the Association.

Mortgage shall mean any recorded first mortgage or first deed of trust encumbering a Lot and/or Unit; and Mortgagee shall mean any mortgagee or beneficiary named in a Mortgage.

Owner shall mean any person who is the owner of record (as reflected in the Public Records) of a fee or undivided fee interest in any Lot/Unit, and any contract purchaser of any Lot/Unit. Notwithstanding any applicable theory relating to mortgages, no Mortgagee nor any trustee or beneficiary of a deed of trust or trust deed shall be an Owner unless such party acquires fee title pursuant to foreclosure or sale or conveyance in lieu thereof. Multiple Owners of a particular Lot/Unit shall be jointly and severally liable as to all responsibilities and obligation of an Owner.

Plat shall mean a recorded subdivision plat within the Development. The Development comprises three Plats, with a total of five phases, as evidenced by Instrument Nos. 313049, 336633, and 339414, all of which have been accepted by the City of Rexburg and recorded in the Public Records. Any future modifications of the Plats shall replace the previously mentioned instruments.

Property shall mean all land covered by this Declaration, including Common Areas and Lots or Units. The initial Property shall consist of the land described in ARTICLE III, Section 1 of this Declaration.

Public Records shall mean the Office of the Madison County Recorder in Rexburg, Idaho.

Rules and Regulations shall mean and refer to those Rules and Regulation authorized, adopted, and promulgated to the Owners from time to time by the Board pursuant to the provisions of Section 1 of ARTICLE II in the BYLAWS Declaration.

Townhome refers to a unit that consists of a multi-floor home that shares one or two walls with adjacent properties, has its own entrance, and owns the lot the unit sits on.

Unit shall mean a structure designed, constructed and intended for the use or occupancy as a single family dwelling on a Lot, together with all improvements located on the same Lot and used in conjunction with such residence, including anything located within or without said Unit (but dedicated and designed to serve only that Unit) such as paint, sheetrock, all exterior doors, all windows except window casings, all wiring in the unit that connects to the breaker box other than the incoming main line, plumbing and plumbing fixtures other than supply lines, vents and other wall, ceiling, or floor coverings on interior walls, appliances, electrical receptacles and outlets, fixtures, insulation, air conditioning compressors and other air conditioning apparatus, if any. Units shall specifically exclude roofs and exterior surfaces of the buildings in which Units exist from the sheathing out, all of which shall be treated as Limited Common Areas designated for the exclusive use of the particular Units to which such roofs and surfaces appertain, even if not designated as Limited Common Areas on a Plat. Notwithstanding the fact that they may be within the boundaries of said Unit, the following are not part of a Unit insofar as they are necessary for the support or for the use and enjoyment of any other Unit: Bearing walls, exterior wall sheathing, floor joists and sheathing, roof trusses (except the interior surfaces thereof), foundations, footings, roof sheathing, shingles, felt, vents, siding, rock, porches and rail.

ARTICLE II
STATEMENT OF PURPOSE AND EFFECTUATION

1. Purpose. The purpose of this Declaration is to provide for the preservation of the values of Lots, residential Units and Common Areas within the Meadows at Rexburg, a planned development in the City of Rexburg, Madison County and State of Idaho (the “Development”), and for the maintenance of the private roadways, driveways, sidewalks, parking, amenities, open spaces, landscaping, trees and all other Common Areas therein.
2. Effectiveness. From and after the effective date hereof: (a) each part of the Development and each Lot and Unit lying within the boundaries of the Development shall constitute parts of a single planned residential development; (b) the Development shall consist of the Units and the Common Areas which are described and depicted on the recorded Plats, (c) the Declaration for the Development may be modified, amended, supplemented, or expanded in accordance with the provisions hereof.
3. Submission to Legislative Acts. The Declaration hereby submits the Land, the buildings and all other improvements now or hereafter made in or upon the land to any provisions passed by any legislative body with jurisdiction over the property.

ARTICLE III
PROPERTY DESCRIPTION

1. Submission. The Property which initially is and shall be held, transferred, sold, conveyed, and occupied subject to the provisions of this Declaration, consists of the following described real property in the City of Rexburg, Madison County, State of Idaho.



Blocks 1, 2, 3, and 4 of a portion of the tract of land, Commencing at the Northwest corner of the S1/2NE1/4SW1/4 of Section 25, Township 6 North, Range 39 East, Boise Meridian, Madison County, Idaho and running thence South 1716 feet; thence N89°47’53” East 218.02 feet; thence S05°30’04” West 265.31 feet to the South Section line of said Section 25; thence East along said Section line of the West right-of-way line of State Highway 20 (State Highway Project F6471(41)); thence Northeasterly along said Highway right-of way to the North line of the S1/2NE1/4SW1/4; thence West 360 feet more or less to the point of beginning.

Together with all easements, right-of-ways, and other appurtenances and right incident to, appurtenant to or accompanying the above described parcel of real property, whether or not the same are reflected on the Plats.

Reserving unto the Declarant, however, such easements and rights of ingress and egress over, across, through and under the said property and any improvements (including buildings) now and hereafter constructed thereon as may be reasonably necessary for Declarant (in a manner which is reasonable and not inconsistent with the provisions of the Declaration)

All of the foregoing is subject to liens for current and future taxes, assessments, and charges imposed or levied by any governmental or quasi-governmental authorities; all Patent reservations and exclusions; all mineral reservations of record and right indigent thereto; all instruments of record which affect the above-described real property or any portion thereof, including, without limitations, any mortgage (and nothing in this paragraph shall be deemed to modify or amend such mortgage); all visible easements and rights-of-way; all easements and rights-of-way, encroachments, or discrepancies shown on, or revealed by a Plat or otherwise existing; an easement for each and every pipe, line, cable, wire, fiber, utility line, or similar facility which traverse or partially occupies the said real property at the time the Development was constructed and completed; and all easements necessary for ingress to, egress from, maintenance of, and replacement of all such pipes, lines, cables, wires, fiber, utility lines, or similar facilities; and to each of the easements, covenants, conditions and restrictions contained in this Declaration.

2. Division into Blocks, Lots and Units. The Development is hereby divided into 40 Blocks with 160 Lots and 160 Units, as set forth in the Phase 1, 2, and 3 Plots. All blocks are considered townhouse units, as described in the definitions, with appurtenant and equal rights and easements of use and enjoyments in and to the Common Areas as well as appurtenant obligations pertaining to Assessments, maintenance, insurance, etc., unless otherwise set forth in this Declaration.

ARTICLE IV
DUTIES AND OBLIGATIONS OF OWNERS

1. Maintenance and Repairs. Each Owner shall at his own expense maintain his Unit any improvements made thereto in good condition and repair at all times. However, the Unit exteriors as described in the Definitions shall be maintained by the Association. In the event of damage or destruction of any Unit, the Owner of said Unit shall either rebuild the same within a reasonable time or raze the remains thereof so as to prevent the unsightly appearance and dangerous condition of a partially destroyed structure in the Development. The painting or repainting, remodeling, rebuilding or modification of any Unit exteriors or parts thereof must be submitted to and approved by the DRC pursuant to its procedures. Notwithstanding the obligations of the Association to maintain Unit exteriors as provided herein, no Owner of such Unit shall openly or wantonly neglect or fail to do all within such Owner’s power to help keep such items in good and attractive condition at all times.
2. Insurance. Notwithstanding any hazard insurance coverage purchased by the Association pursuant to the terms of these Covenants, Conditions, and Restrictions (the “CC&Rs”), each Unit Owner shall procure and maintain, at their own expense, a hazard insurance policy covering their Unit, including interior improvements and personal property, as well as liability coverage for the Unit and common areas. Such insurance shall provide coverage for damage to the Unit’s interior, including but not limited to studs, insulation, drywall and fixtures (from the studs and fixtures in) and as described in ARTICLE I under “Unit”. This insurance is commonly referred to as condominium insurance.
3. Assessments and Rules Observance. Each Owner shall be responsible for the prompt payment of any Assessments provided for in this Declaration, and for the observance of the Rules and Regulations promulgated by the Association’s Board from time to time. Owners in violation of the provisions of this document will not be deemed to be in good standing for Association voting rights and will be subject to fines and liens for any violation of rules in accordance with State laws and regulations for HOAs.
4. Transfer of Interests. Except for obligations already accrued, an Owner who, for other than purposes of security, transfers all of his interests in his Unit to another, either voluntarily or by operation of law, shall be relieved of all obligations under this Declaration upon completion of said transfer.

ARTICLE V
PROPERTY RIGHTS AND CONVEYANCES

1. Easement Concerning Common Areas. Each Unit shall have appurtenant thereto a nonexclusive right and easement of use and enjoyment in and to the Common Areas for their intended purposes; subject, however, to the provisions of Section 4 below. Such right and easement shall be appurtenant to and shall pass with title to each Unit and shall in no event be separated there from.
2. Form of Conveyance. Any deed, lease, mortgage, deed of trust, purchase contract or other instrument conveying or encumbering title to a Lot or Unit shall describe the interest or estate involved substantially as follows:



Lot _ Block __ as identified in official Plat of The Meadows Development, Phase __ , City of Rexburg, Madison County, State of Idaho, recorded in Office of Madison County Recorder as Instrument No. ______ on _________, 20__, SUBJECT TO the Declaration of Easements, Covenants, Conditions, and Restrictions of The Meadows, recorded in the Office of the Madison County Recorder as Instrument No. ___ (as said Declaration may have heretofore been amended or supplemented), TOGETHER WITH a right and easement of use and enjoyment in and to the Common Areas described, and as provided for, in said Declaration of Easements, Covenants, Conditions and Restrictions (as said Declaration may have heretofore been amended or supplemented).

Whether or not the description employed in any such instrument is in the above-specified form, however, all provisions of this Declaration shall be binding upon and shall insure to the benefit of any party who acquires any interest in a Lot or Unit.

3. Title to Common Areas. All Common Areas of all Plats have been deeded to the Association, free and clear of any liens other than the lien of current general taxes, pursuant to the provisions of the Declaration and applicable Plat.
4. Limitation on Easement. Each Lot/Unit's appurtenant right and easement of use and enjoyment of the Common Areas shall be subject to the following:
5. The right of the Association to govern by reasonable Rules and Regulations the use of the Common Areas so as to provide for the enjoyment thereof in a manner consistent with the collective right of all of the Owners;
6. The right of the City of Rexburg and any other governmental or quasi-governmental body having jurisdiction over the Property, to enjoy access and rights of ingress and egress over and across any private street or driveway, parking area, walkway, or open area contained within the Common Areas for the purpose of providing police and fire protection and providing any other governmental or municipal service; and
7. The right of the Association to dedicate or transfer any part of the Common Areas to any public agency or authority for such purposes and subject to such conditions as may be agreed to by the Association; provided that such dedication or transfer must first be agreed to in writing by:
   • the Mortgagee of each and every Mortgage that encumbers any Unit and
   • the owners of units that represent at least 60% of the total voting power in the Homeowners' Association.
8. Utility Easements. Each Lot/Unit is subject to applicable easements for underground lines for utility purposes under and through such portions of the Common Areas that include roads, walkways and landscaped areas. If any Owner utilizes such easement rights with respect to his Lot/Unit, he shall be responsible for the restoration to its former state of any portion of the Common Area which may have been disturbed or damaged as a result.
9. Easements for Encroachments. If any structure or Unit improvement (including without limitation, roof overhangs) constructed on any Lot to which this Section 6 applies, whether or not constructed in replacement of the structure or improvement previously located thereon (so long as such structure or improvement is in substantially the same configuration and location as such prior structure or improvement) now or hereafter encroaches upon any other Lot or Unit or upon any portion of the Common Areas, a valid easement for such encroachment and the maintenance thereof; so long as it continues, shall exist. If any structure (including without limitation, roof overhangs) on any Lot shall be partially or totally destroyed and then rebuilt in a manner intended to substantially duplicate the location and configuration of the structure so destroyed, minor encroachments of such structure upon any other Lot or Unit or upon any portion of the Common Areas due to the reconstructed structure's being in a slightly different location than its predecessor shall be permitted; and valid easements for such encroachments and the maintenance thereof; so long as they continue, shall exist.

ARTICLE VI
USE RESTRICTIONS

1. Use of Common Area. The Common Areas shall be used only in a manner consistent with their community nature and with the use restrictions applicable to Units set forth in this Declaration.
2. Residential Use. The Property is zoned for and restricted to single family residential use pursuant to applicable zoning ordinances of the City of Rexburg. Each Unit and Owner is subject to the uses and restrictions imposed by such zoning, including, but not limited to occupancy and parking restrictions. No Unit shall be used, occupied, or altered in violation of such ordinances so as to create a nuisance or to interfere with the rights of any other Owner.
3. Prohibited Use and Nuisances. The following uses and practices are specifically prohibited, in addition to any additional prohibitions which may, from time to time, be adopted by the Board:
1. No Unit or any part thereof shall be used or occupied by any persons not coming within the definition of "Family" as such term is defined and intended in the zoning ordinances of the City of Rexburg as of the date hereof.
2. No lease of any Unit shall be for less than the whole thereof.
3. No animals, livestock, or poultry of any kind shall be permitted in any Unit or Common Areas except such domesticated household pets or birds as are allowed pursuant to the Rules and Regulations, including leash laws, adopted by the Board.
4. No parking of vehicles of any kind on the streets, private drives or parking areas within the Development shall be permitted except as set forth in Rules and Regulations adopted by the Board.
5. No outside television or radio aerial or antenna, satellite dish or other similar device for reception or transmission shall be permitted on any Lot or the exterior of any Unit except pursuant to written approval of the DRC pursuant to Rules and Regulations adopted by the Board.
6. No Unit within the Development shall (i) contain any coal or wood-burning fireplace, stove, or other similar device unless the same is EPA approved or unless such fireplace, stove, or other device is fueled by natural gas only; or (ii) contain a swamp cooler.
7. The clubhouse depicted in the Plat of Phase Two is intended solely for the private use and enjoyment of Association Members. Commercial activities, including operating a business, are strictly prohibited within the clubhouse.

ARTICLE VII
DESIGN REVIEW

1. Design Review Committee. The Board of Directors of the Association shall appoint a three-member Design Review Committee (the "DRC"), the function of which shall be to ensure that all improvements and landscaping within the Development harmonize with existing surroundings and structures. The DRC need not be composed of Owners. If the DRC is not appointed, the Board itself shall perform the duties required of the DRC.
2. Submission to DRC. No Unit or accessory of or addition to a Unit which is visible from the Common Areas, shall be constructed or maintained, and no alteration, repainting or refurbishing of the exterior of any Unit shall be performed, unless complete plans and specifications hereof have first been submitted to and approved by the DRC.
3. Standard. In deciding whether to approve or disapprove plans and specifications submitted to it, the DRC shall use its best judgment to ensure that all improvements, construction, landscaping and alterations on Units within the Development conform to and harmonize with existing surroundings and structures. Any structure hereafter constructed on any Lot or Unit in replacement of the structure previously located thereon shall be constructed in substantially the same configuration, location and architectural style and be approximately the same size as the prior structure; and if the plans and specifications therefore meet such criteria, the DRC must approve the same.
4. Approval Procedure. Except as provided in Section 3, any plans and specifications submitted to the DRC shall be approved or disapproved by it in writing within 30 days after submission. In the event the DRC fails to take any action within such specified period, it shall be deemed to have approved the material submitted except in those respects to which such material is not in conformity with the provisions of this Declaration, as to which respects it shall be deemed disapproved.
5. Construction. Once begun, any improvements, construction, landscaping, or alterations approved by the DRC shall be diligently pursued to completion. If reasonably necessary to enable such improvement, construction, landscaping, or alteration, the person or persons carrying out the same shall be entitled to temporarily use and occupy portions of the Common Areas in the vicinity of the activity, provided that they shall promptly restore such areas to their prior condition when the use thereof is no longer required.
6. Liability for Damages. Neither the DRC nor any member thereof shall be held liable for such damages by reason of any action, inaction, approval, or disapproval taken or given without malice by such member or the DRC with respect to any request made pursuant to this ARTICLE VII.

ARTICLE Vlll
INSURANCE

1. Hazard Insurance. The Board of Directors shall obtain and maintain hazard insurance from a reputable and financially sound insurance carrier to protect the commonly owned property of the Association. Such insurance shall provide coverage equal to or exceeding the full replacement cost of the Association’s Common Areas, excluding land, foundations, and similar items typically excluded from coverage. Coverage shall extend to the exterior of all Townhouse buildings (from the sheathing out), including roofs, surfaces, and structures. The insurance shall be sufficient to fully reconstruct the insured property in the event of loss.
   
   The Association shall be named as the insured on the policy, for the benefit of all Owners. The policy shall include, but not be limited to, coverage for loss or damage caused by fire, extended coverage perils, vandalism, malicious mischief, and windstorm.
   
   The Board may also elect to purchase additional coverages deemed necessary or advisable. The policy should include an Agreed Amount Endorsement, Inflation Guard Endorsement, or equivalent coverage, if available.
2. Liability Insurance. The Board shall procure and maintain from a financially sound insurance carrier a policy or policies of public liability insurance to insure the Association, the Board, the Managing Agent and employees of the Association and the Owners against claims for bodily injury and property damage arising out of the conditions of the Common Areas, or activities thereon, under a comprehensive general liability form. Such insurance shall be for such limits as the Board may decide, but not less than those limits customarily carried in connection with properties of comparable character and usage in Madison County, Idaho, not less than $1,000,000 for personal injury and property damage arising out of a single occurrence, such coverage to include protection against water damage liability, liability for non-owned and hired automobile, liability for the property of others, and such other risks as shall customarily be covered with respect to property similar in construction, location and use. The policy shall contain a "Severability of Interest" endorsement which shall preclude the insurer from denying the claim of any Owner because of negligent acts of the Association or other Owners, and a cross-liability endorsement pursuant to which the rights of the named insured as between themselves are not prejudiced, The policy shall provide that the policy may not be canceled or substantially modified by the insurer unless it gives at least 30 days' prior written notice thereof to each insured. Any such coverage procured by the Board shall be without prejudice to the right of the Owners to insure their personal liability for their own benefit at their own expense.
3. Additional Insurance and Further General Requirements. The Board may also procure insurance which shall insure the Common Areas and the Association or the Owners and others against such additional risks as the Board may deem advisable. Insurance procured and maintained by the Board shall not require contribution from insurance held by any of the Owners or their Mortgages. Each policy of insurance obtained by the Board shall, if reasonably possible provide:
   1. a waiver of the insurer's right of subrogation against the Association, the Owners, and their respective directors, officers, agents, employees, invitees and tenants;
   2. that it cannot be canceled, suspended, or invalidated due to the conduct of any particular Owner or Owners;
   3. that it cannot be canceled, suspended or invalidated due to the conduct of the Association without a prior written demand that the defect be cured; and
   4. that any "no other insurance" clause therein shall not apply with respect to insurance maintained individually by any of the Owners.
4. Fidelity Coverage. The Association may elect to maintain fidelity coverage to protect against dishonest acts on the part of officers, trustees, managing agents, directors and employees of the Association and all others (including volunteers) who handle, or are responsible for handling, funds of the Association. In that event, such fidelity bonds shall:
   1. name the Association as an obligee;
   2. be written in an amount based upon the best business judgment of the Association and shall not be less than the estimated maximum of funds (including reserve funds) in the custody of the Association or the Managing Agent at any given time during the term of each bond, but in no event be less than a sum equal to three months' assessment on all Units plus reserve funds;
   3. contain waivers of any defense based upon the exclusion of volunteers or persons who serve without compensation from any definition of"employee" or similar expression; and
   4. provide that they may not be canceled or substantially modified (including cancellation for nonpayment of premium) without at least 30 days' prior written notice to the insured.
5. Review of lnsurance. The Board shall periodically, and whenever a group of Owners entitled to exercise at least twenty percent (20%) of the outstanding votes in the Association request, review the adequacy of the Association's insurance program and shall report in writing the conclusions and action taken on such review to the Owner of each Unit and to the holder of any Mortgage on any Lot or Unit who shall have requested a copy of such report. Copies of every policy of insurance procured by the Board shall be available for inspection by any Owner and any Mortgage.
6. Other Insurance Provisions. All insurance required pursuant to this ARTICLE VIII shall be written by insurers licensed in the State of Idaho. Notwithstanding anything in this ARTICLE VIII to the contrary, any insurance required to be obtained by the Association pursuant to Sections 2, 3, or 4 of this ARTICLE VIII, shall be required only to the extent that such coverage is reasonably obtainable at reasonable rates and is customarily obtained with respect to improvements or facilities having the same or similar characteristics of the Common Areas and Units or risks being insured.

ARTICLE IX
RIGHTS OF MORTGAGEES

Title and Mortgagee Protection. A breach of any of the covenants, provisions, or requirements of this Declaration shall not result in any forfeiture or reversion of title, or of any other interest in a Lot or Unit, or any other portion of the Property. A breach of any of the covenants, provisions, or requirements of this Declaration shall not defeat, impair, or render invalid the lien ot: or other rights under, any Mortgage. Unless and until it enters into possession, or acquires title pursuant to foreclosure, or any arrangement or proceeding in lieu thereof, any Mortgagee interested under any Mortgage affecting a Lot or Unit or any other portion of the Property shall have no obligation to take any action to comply with, and may not be compelled to take any action to comply with, any of the covenants, provisions, or requirements of this Declaration (other than those, if any, concerning a consent or approval to be given by a Mortgagee if such Mortgagee's failure to do so is wrongful.) No amendment to this Declaration shall in any way affect the rights of any Mortgagee named in a Mortgage which is in effect at the time of the amendment, or the rights of any successor in interest or title to such Mortgagee, either before or after such Mortgagee or its successor enters into possession or acquires title pursuant to foreclosure, or any arrangement or proceeding in lieu thereof; unless such Mortgagee has consented in writing to such amendment.
1. Preservation of Common Area. The Common Area shall remain substantially of the same character, type and configuration as when such Common Areas became part of the Development. Unless the Association shall receive the prior written approval of (a) all first Mortgagees of Units and (b) at least two-thirds (2/3) of the outstanding votes in the Association, the Association shall not be entitled by act or omission to abandon, partition, subdivide, encumber, sell, transfer or materially modify the Common Areas, except to grant reasonable easements for utilities and similar or related purposes.
2. Notice of Matters Affecting Security. The Association shall give written notice to any Mortgagee of a Lot or Unit requesting such notice whenever:
   1. there is any material default by the Owner of the Lot or Unit subject to the Mortgage in performance of any obligation under this Declaration, or the Articles of the Association, which is not cured within 60 days after default occurs; or
   2. damage to the Common Areas from any one occurrence exceeds $10,000; or
   3. there is any condemnation or taking by eminent domain of any material portion of the Common Areas.
3. Notice of Meetings. The Board shall give to any Mortgagee of a Lot or Unit requesting the same, notice of all meetings of the Association; and such Mortgagee shall have the right to designate in writing a representative to attend all such meetings.
4. Right to Examine Association Records. Any Mortgagee shall, upon request, have the same right to inspect the books and records of the Association, and receive financial statements, as the Owner of the Lot or Unit securing the Mortgage.
5. Right to Pay Taxes and Charges. Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may, or have, become a charge against any portion of the Common Areas and may pay overdue premiums on insurance policies pertaining to the Common Areas on the lapse of a policy; and Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association.
6. No Priority Accorded. No provision of this Declaration gives, or may give, a Lot or Unit Owner or any other party priority over any rights of Mortgagees pursuant to their respective Mortgages in the case of a distribution to Lot or Unit Owners of insurance proceeds or condemnation awards for loss to or taking of Units and/or the Common Areas.
7. Construction. In the event another provision or clause of this Declaration deals with the same subject matter as is dealt with in any provision or clause of this ARTICLE IX, the provision or clause which results in the greatest protection and security for a Mortgagee shall control the rights, obligations, or limits of authority, as the case may be, applicable to the Association with respect to the subject concerned.

ARTICLE X
PARTY WALLS

1. General Rules of Law to Apply. Each wall to be built as a part of the original construction of the Units and placed substantially on a dividing line between Lots shall constitute a party wall, and to the extent not inconsistent with the provisions of this Article X, the general rules of law regarding party walls and liability for damage due to negligence or willful acts or omissions shall apply thereto.
2. Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in proportion to such use.
3. Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the Owner of another Lot thereafter makes use of the wall, such other Owner shall contribute to the cost of restoration thereof in proportions to such use; the foregoing provision shall not prejudice, however, the right of any Owner to call for a larger contribution from another Owner under any rule of law regarding liability for negligent or willful acts or omissions.
4. Weatherproofing. Notwithstanding any other provision of this ARTICLE X, an Owner who, by high negligent or willful act, causes a party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements.
5. Right to Contribution Runs with Land. The right of any Owner to contribution from any other Owner under this ARTICLE X shall be appurtenant to the land or Unit and shall pass to such Owner's successors in title.

EXECUTED by Declarant on the day and year first above written.