RECORDING REQUESTED BY,
AND WHEN RECORDED, MAIL TO:

CONDOMINIUM CONVERSIONS, INC
112 S. CATALINA AVE. #108
REDONDO BEACH, CA 90277

RECORDED IN OFFICIAL RECORDS
RECORDER'S OFFICE
LOS ANGELES COUNTY
CALIFORNIA
SEPT 1 1993 AT 8 A.M.
(Space Above For Recorder's Use) FEE $11 S 3

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DEPARTMENT OF REAL ESTATE OF THE STATE OF CALIFORNIA

FINAL SUBDIVISION PUBLIC REPORT
NOTICE OF INTENTION
FILE NO.: SB 1120LA
ISSUED: March 16, 1993
EXPIRES: March 15, 1998

In a matter of the application of
THE COLONY AT WESTWOOD HOMEOWNERS ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION
a Notice of Intent for
TRACT NO. 50520
CITY OF LOS ANGELES
LOS ANGELES COUNTY, CALIFORNIA
Clark Wallace
Real Estate Commissioner
by (signature)
Assistant Commissioner

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CONSUMER INFORMATION

• This report is not a recommendation or endorsement of the subdivision; it is informative only.

• Buyer or Lessee must sign that (s)he has received and read this report.

This report expires on the date shown above. All material changes must be reported to the Department of Real Estate. (Refer to Section 11012 of the Business and Professions Code; and Chapter 6, rule 10 of the California Administrative Code. Regulation 2800.) Some material changes may require amendment of the Public Report; which Amendment must be obtained and used in lieu of this report.

A review of the information filed in the Notice of Intention submitted by the subdivider on October 23, 1992, indicates it would not be against the public interest to waive the filing of a complete questionnaire and all documents normally required in subdivision filings.

The Commissioner may require the filing of a subdivision questionnaire and fee at a later date if in the Commissioner's Opinion the facts and circumstances warrant.

This report is issued based on the information submitted in the Notice on Intention subject to the following conditions:

1. The above-described subdivision project is being converted from a stock cooperative project to a common interest subdivision of the type referred to as condominium.

2. A copy of this public report will be given to the prospective party obtaining an interest in a condominium unit prior to conveyance thereof.

3. This project shall be null and void until further clearance is obtained from the Commissioner in the event there is any change in the plan of an offering or other information submitted in the Notice of Intention.

4. The Purchaser is advised that this report is valid only as to the above-named subdivider.

5. That if any funds from purchasers are necessary to complete their purchase, the subdivider shall place all such funds received from buyer in a neutral escrow depository until legal title is delivered to buyer. (Refer to Section 11013.4(a) of the Business and Professions Code).

6. The condominium units will only be conveyed to persons currently in possession of a unit in the project.

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RECORDING REQUESTED BY,
AND WHEN RECORDED, MAIL TO:

CONDOMINIUM CONVERSIONS, INC
112 S. CATALINA AVE. #108
REDONDO BEACH, CA 90277

RECORDED IN OFFICIAL RECORDS
RECORDER'S OFFICE
LOS ANGELES COUNTY
CALIFORNIA
l min. past 3 p.m. FEB 12 1993
(Space Above For Recorder's Use) FEE $311

DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
AND RESERVATION OF EASEMENTS FOR
THE COLONY AT WESTWOOD CONDOMINIUMS

THIS DECLARATION is made by The Colony at Westwood Condominiums Homeowners Association, California corporation ("Declarant").

P R E A M B L E:

A. Declarant is the owner of certain real property located in the City of Los Angeles, County of Los Angeles, State of California, described as follows:

Lot 1 of Tract No. 50520 , as shown on a Subdivision Map Filed on January 13, 1993, in Book 1195, at Pages 17 to 18, inclusive, of Maps in the Office of the Los Angeles County Recorder.

B. The members of Declarant have decided to convert the existing stock cooperative into a "condominium project," as defined in Section 1351(f) of the California Civil Code, to subdivide the Property (as hereinafter defined) as authorized by Section 66427 of the California Government Code into "condominiums" as defined in Section 783 of the California Civil Code, and to impose mutually beneficial restrictions under a general plan of improvement for the benefit of all the condominiums created pursuant to the Davis-Stirling Common Interest Development Act. The members of Declarant have authorized Declarant to take such action as is necessary to complete the conversion process including (i) creating The Colony at Westwood Condominium Association, a California nonprofit mutual benefit corporation, to which Declarant shall assign and delegate its powers of managing and operating the Common Property, and administrating and enforcing the Restrictions set forth herein, (ii) conveying the Association Property to the Association, and (iii) conveying the Common Area and the Units to the Owners, all subject to the Restrictions set forth herein.

C. Declarant hereby declares that all the Property is to be held, conveyed, hypothecated, encumbered, leased, rented, used, occupied and improved subject to the limitations, restrictions, reservations, rights, easements, conditions and covenants contained in this Declaration, all of which are declared and agreed to be in furtherance of a plan for the protection, subdivision, maintenance, improvement and sale of the Property for the purpose of enhancing the value, desirability and attractiveness of the Property. All provisions of this Declaration, including without limitation the easements, uses, obligations, covenants, conditions and restrictions hereof, are hereby imposed as equitable servitudes upon the Property. All of the limitations, restrictions, reservations, rights, easements, conditions and covenants herein shall run with and burden the Property and shall be binding on and for the benefit of all of the Property and all Persons having or acquiring any right, title or interest in the Property, or any part thereof, and their successive owners and assigns.

D. Declarant, its successors, assigns and grantees, covenant and agree that the undivided interest in the Common Area, the membership in the Association, any easements conveyed therewith and the fee title to each respective Unit conveyed therewith shall not be separated or separately conveyed, and each such undivided interest, membership and easement shall be deemed to be conveyed or encumbered with its respective Unit even though the description in the instrument of conveyance or encumbrance may refer only to the Unit; provided, however, that this restriction upon the severability of the component interests of the Condominiums shall not extend beyond the period for which the right to partition the Property is suspended in accordance with Section 1359 of the California Civil Code and the provisions of Article IX hereof. Any conveyance by an Owner of a Condominium, or any portion thereof, shall be presumed to convey the entire Condominium, together with a membership in the Association.

ARTICLE I

1. Definitions.
Unless otherwise expressly provided, the following words and phrases when used in this Declaration shall have the following specified meanings.

1.1. Architectural Committee or Committee.
Architectural Committee or Committee shall mean the Architectural Review Committee created pursuant to Article IV hereof:

1.2. Articles.
Articles shall mean the Articles of Incorporation of the Association, filed or to be filed in the Office of the Secretary of State of the State of California, a true copy of which is attached hereto, marked Exhibit "A," as such Articles may be amended from time to time.

1.3. Assessment Annual.
Annual Assessment shall mean a charge against a particular Owner and his Condominium, representing a portion of the Common Expenses which are to be levied among all of the Owners and their Condominiums in the Project in accordance with the percentages set forth in the Maintenance Expense Schedule.

1.4. Assessment, Capital Improvement.
Capital Improvement Assessment shall mean a charge which the Board may from time to time levy against each Owner and his Condominium, representing a portion of the cost to the Association for installation or construction of any capital improvements on any of the Common Property. Such charge shall be levied equally among all the Owners and their Condominiums in the Project.

1.5. Assessment, Reconstruction.
Reconstruction Assessment shall mean a charge which the Board may from time to time levy against a particular Owner and his Condominium, representing a portion of the cost to the Association for reconstruction of any Improvements on any of the Common Property. Reconstruction Assessments shall be levied among all of the Owners and their Condominiums in the Project in the same proportions as are Annual Assessments.

1.6. Assessment, Special.
Special Assessment shall mean a charge against a particular Owner, directly attributable to, or reimbursable by, the Owner, equal to the cost incurred by the Association for corrective action performed pursuant to the provisions of this Declaration, or a reasonable fine or penalty assessed by the Board, plus interest and other charges on such Special Assessments as provided for in this Declaration. Special Assessments shall not include any late payment penalties, interest charges or costs (including attorneys, fees) incurred by the Association in the collection of Annual, Capital Improvement and Reconstruction Assessments.

1.7. Association.
Association shall mean THE COLONY AT WESTWOOD CONDOMINIUM ASSOCIATION, a California nonprofit corporation (formed pursuant to the Nonprofit Mutual Benefit Corporation Law of the State of California), its successors and assigns. The Association is an "association" as defined in Section 1351(a) of the California Civil Code.

1.8. Association Property.
Association Property shall mean all of the real and personal property and Improvements to which the Association shall hold fee title. The Association Property located in the Property shall include Module A, as shown on the Plan, excluding all Condominium Units.

1.9. Beneficiary.
Beneficiary shall mean a Mortgagee under a Mortgage or a Beneficiary under a Deed of Trust, as the case may be, and the assignees of such Mortgagee or Beneficiary.

1.10. Board or Board of Directors.
Board of Directors or Board shall mean the Board of Directors of the Association.

1.11. Budget.
Budget shall mean a written, itemized estimate of the income and Common Expenses of the Association in performing its functions under this Declaration, which Budget shall be prepared pursuant to the Bylaws.

1.12. Bylaws.
Bylaws shall mean the Bylaws of the Association as adopted by the Board initially in the form of Exhibit "B" attached hereto, as such Bylaws may be amended from time to time.

1.13. City.
City shall mean the incorporated municipal City of Los Angeles, in the County of Los Angeles, State of California, and its various departments, divisions, employees and representatives.

1.14. Common Area.
Common Area shall mean the entire Property, except the Separate Interests therein and the Association Property.

1.15. Common Expenses.
Common Expenses shall mean those expenses for which the Association is responsible under this Declaration, including the actual and estimated costs of maintenance, management, operation, repair and replacement of the Common Property; unpaid Special Assessments, Reconstruction Assessments and Capital Improvement Assessments; the cost of maintenance of the facilities on the Common Property; the costs of any and all utilities metered to more than one Unit and other commonly metered charges for the Property; the costs of trash collection and removal (as applicable); the costs of maintenance of clustered mailboxes and address identification signs; costs of management and administration of the Association including, but not limited to, compensation paid by the Association to managers, accountants, attorneys and other employees; the costs of all gardening, security, and other services benefiting the Common Property; the costs of fire, casualty and liability insurance, workers, compensation insurance, errors and omissions and director, officer and agent liability insurance, and other insurance covering the Property and the directors, officers and agents of the Association; the costs of bonding of the members of the Board; taxes paid by the Association, including any blanket tax assessed against the Property; amounts paid by the Association for discharge of any lien or encumbrance levied against the Property, or portions thereof; and the cost of any other item or items incurred by the Association, for any reason whatsoever in connection with the Property, for the common benefit of the Owners.

1.16. Common Property.
Common Property shall mean the Common Area and the Association Property exclusive of the Units.

1.17. Condominium.
Condominium shall mean an estate in real property as defined in California Civil Code Section 1351(f), and shall consist of an undivided fee simple ownership interest in the Common Area, together with a separate ownership interest in fee in a Unit and all easements appurtenant thereto. Subject to the provisions of Section 11.5 hereof, the fractional undivided fee simple interest appurtenant to each Unit shall be an undivided one two hundred fifty-sixth (1/256) interest in the Common Area to be held by the Owners as tenants in common.

1.18. Condominium Plan.
Condominium Plan shall mean the Recorded plan, as amended from time to time, consisting of (1) a description or survey map of the Project, which shall refer to or show monumentation on the ground, (2) a three-dimensional description of the Property, one or more dimensions of which may extend for an indefinite distance upwards or downwards in sufficient detail to identify the Common Area, each Separate Interest and the Association Property, and (3) a certificate consenting to the recordation thereof signed and acknowledged by the record owner of fee title to the Property and by either the trustee or the Beneficiary of each Recorded Deed of Trust, and the Mortgagee of each recorded Mortgage encumbering the Property.

1.19. County.
County shall mean the County of Los Angeles, State of California, and its various departments, divisions, employees and representatives.

1.20. Declarant.
Declarant shall mean The Colony at Westwood Homeowners Association, a California corporation, its successors, and any Person to which it shall have assigned any of its rights hereunder by an express written assignment.

1.21. Declaration.
Declaration shall mean the within Declaration of Covenants, Conditions and Restrictions and Reservation of Easements, as it may be amended from time to time.

1.22. Deed of Trust.
Deed of Trust shall mean a Mortgage as further defined herein.

1.23. DRE.
DRE shall mean the California Department of Real Estate and any successors thereto.

1.24. Exclusive Use Area.
Exclusive Use Area shall mean those portions of the Association Property over which exclusive easements are reserved for the benefit of certain Owners including without limitation for parking and patio purposes and internal and external telephone wiring designed to serve a single Unit but located outside the boundaries of that Unit, in accordance with California Civil Code Section 1351(i).

1.25. Family.
Family shall mean one or more natural Persons each related to the other by blood, marriage or adoption, or one or more natural Persons not all so related, but who maintain a common household in a Residence.

1.26. FHLMC.
FHLMC shall mean the Federal Home Loan Mortgage Corporation (also known as The Mortgage Corporation) created by Title II of the Emergency Home Finance Act of 1970, and any successors to such corporation.

1.27. Fiscal Year.
Fiscal Year shall mean the fiscal accounting and reporting period of the Association selected by the Board from time to time.

1.28. FNMA.
FNMA shall mean the Federal National Mortgage Association, a government-sponsored private corporation established pursuant to Title VIII of the Housing and Urban Development Act of 1968, and any successors to such corporation.

1.29. GNMA.
GNMA shall mean the Government National Mortgage Association administered by the United States Department of Housing and Urban Development, and any successor to such association.

1.30. Improvements.
Improvements shall mean all structures and appurtenances thereto of every type and kind, including but not limited to, buildings housing the Units, facilities, walkways, sprinkler pipes, open or subterranean parking areas, carports, roads, driveways, fences, retaining walls, awnings, deck covers, stairs, the exterior surfaces of any visible structure and the paint on such surfaces, poles, signs, exterior air conditioning and water softener fixtures or equipment.

1.31. Maintenance Funds.
Maintenance Funds shall mean the accounts created for receipts and disbursements of the Association pursuant to the provisions of this Declaration.

1.32. Manager.
Manager shall mean the Person employed by the Association pursuant to and limited by the provisions of this Declaration, and delegated the duties, power or functions of the Association as limited by this Declaration, the Bylaws and the terms of the agreement between the Association and said Person.

1.33. Member, Membership.
Member shall mean every Person holding a membership in the Association, pursuant to the provisions of this Declaration. Membership shall mean the property, voting and other rights and privileges of Members as provided herein, together with the correlative duties and obligations contained in the Restrictions.

1.34. Mortgage.
Mortgage shall mean any Recorded mortgage or deed of trust or other conveyance of one or more Condominiums or other portion of the Property to secure the performance of an obligation, which conveyance will be reconveyed upon the completion of such performance.

1.35. Mortgagee, Mortgagor.
Mortgagee shall mean a Person to whom a Mortgage made and shall include the Beneficiary of a Deed of Trust; Mortgagor shall mean a Person who mortgages his or its property to another (i.e., the maker of a Mortgage), and shall include the Trustor of a Deed of Trust. The term "Trustor" shall be synonymous with the term "Mortgagor" and the term "Beneficiary" shall be synonymous with the term "Mortgagee."

1.36. Notice and Hearing.
Notice and Hearing shall mean written notice and a hearing before the Board, at which the Owner concerned shall have an opportunity to be heard in person, or by counsel at the Owner's expense, in the manner further provided in the Bylaws.

1.37. Owner.
Owner shall mean the record owner, whether one or more Persons, of a fee simple interest in a Condominium, including Declarant with respect to each Condominium owned by Declarant. The term "Owner" shall include a seller under an executory contract of sale but shall exclude Mortgagees.

1.38. Person.
Person shall mean a natural individual, a corporation or any other entity with the legal right to hold title to real property.

1.39. Project.
Project shall mean that portion of the Property which is, from time to time, divided into Condominiums, including the Common Area and the Units. The Project is a "condominium project" as defined in Section 1351(f) of the California Civil Code.

1.40. Property.
Property shall mean all of the real property described in Paragraph A of the Preamble to this Declaration. The Property is a "common interest development" and a "condominium project" as defined in Section 1351(c) and Section 1351(f), respectively, of the California Civil Code.

1.41. Record, File, Recordation.
Record, File, or Recordation shall mean, with respect to any document, the recordation or filing of such document in the Office of the Los Angeles County Recorder.

1.42. Residence.
Residence shall mean a Unit, intended for use by a single Family, together with any Exclusive Use Area reserved for the benefit of such Unit.

1.43. Restrictions.
Restrictions shall mean this Declaration, the Articles, Bylaws and the Rules and Regulations of the Association from time to time in effect.

1.44. Rules and Regulations.
Rules and Regulations shall mean the rules and regulations adopted by the Board pursuant to this Declaration or the Bylaws, as such rules and regulations may be amended from time to time.

1.45. Separate Interest or Unit.
Separate Interest or Unit shall mean a separate interest in space as defined in Section 1351(f) of the California Civil Code. Each Separate Interest or Unit shall be a separate freehold estate, as separately shown, numbered and designated in the Condominium Plan. In interpreting deeds, declarations and plans, the existing physical boundaries of the Unit or a Unit constructed or reconstructed in substantial accordance with the Condominium Plan and the original plans thereof, if such plans are available, shall be conclusively presumed to be its boundaries, rather than the description expressed in the deed, Condominium Plan or Declaration, regardless of settling or lateral movement of the building and regardless of minor variances between boundaries, as shown on the Condominium Plan or defined in the deed and Declaration, and the boundaries of a building as constructed or reconstructed.

ARTICLE II

2. The Colony at Westwood Condominium Association.

2.1. Organization of Association.
The Association is or shall be incorporated under the name of THE COLONY AT WESTWOOD CONDOMINIUM ASSOCIATION, as a corporation not for profit under the Nonprofit Mutual Benefit Corporation Law of the State of California, as required by Section 1363 of the California Civil Code.

2.2. Duties and Powers.
The duties and powers of the Association are those set forth in the Declaration, the Articles and Bylaws, together with its general and implied powers of a nonprofit mutual benefit corporation, generally to do any and all things that a corporation organized under the laws of the State of California may lawfully do which are necessary or proper, in operating for the peace, health, comfort, safety and general welfare of its Members, subject only to the limitations upon the exercise of such powers as are expressly set forth in the Articles, the Bylaws and in this Declaration. The Association shall further have the right to install or construct capital Improvements on the Common Property. The Association may at any time, and from time to time reconstruct, replace or refinish any Improvement or portion thereof upon the Common Property in accordance with the original design, finish or standard of construction of such Improvement; replace destroyed trees or other vegetation and plant trees, shrubs and ground cover upon any portion of the Common Property. The Association may employ personnel necessary for the effective operation and maintenance of the Common Property, including the employment of legal, management and accounting services.

2.3. Membership.
Every Owner, upon becoming the Owner of a Condominium, shall automatically become a Member of the Association, and shall remain a Member thereof until such time as his ownership ceases for any reason, at which time his Membership in the Association shall automatically cease. Ownership of a Condominium shall be the sole qualification for Membership in the Association. All Memberships shall be appurtenant to the Condominium conveyed, and with the exception of Declarant, a Person shall be deemed an Owner of a Condominium only upon Recordation of a deed conveying the Condominium to such Person. Except as may otherwise be provided herein, the rights, duties, privileges and obligations of all Members of the Association shall be provided in the Restrictions.

2.4. Transfer.
The Membership held by any Owner shall not be transferred, pledged or alienated in any way, except upon the sale or encumbrance of such owner's Condominium, and then only to the purchaser or Beneficiary of such condominium. A prohibited transfer is void, and will not be reflected upon the books and records of the Association. A Member who has sold his Condominium to a contract purchaser under an agreement to purchase shall be entitled to delegate to the contract purchaser his Membership rights in the Association. The delegation shall be in writing and shall be delivered to the Board before the contract purchaser may vote. However, the contract seller shall remain liable for all charges and assessments attributable to his Condominium until fee title to the Condominium sold is transferred, as further provided in Section 5.1 of this Declaration. If the Owner of any Condominium fails or refuses to transfer the Membership registered in his name to the purchaser of the Condominium upon transfer of fee title thereto, the Board of Directors shall have the right to record the transfer upon the books of the Association. The Association may levy a reasonable transfer fee against a new Owner and his Condominiums (which fee shall be added to the Annual Assessment chargeable to such new Owner) to reimburse the Association for the administrative cost of transferring the membership to the new Owner on the records of the Association provided such fee does not exceed the Association’s actual cost involved in changing its records of ownership.

2.5. Voting.
The Association shall have one (1) class of voting Membership. When more than one (1) Person owns any Condominium, all of those Persons shall be Members. The vote of such Condominium shall be exercised as they among themselves determine in accordance with Section 2.6, but in no event shall be more than one (1) vote be cast for any Condominium.

2.6. Voting Rights.

(a) All voting rights shall be subject to the Restrictions.

(b) At any meeting of the Association, each Owner shall be entitled to cast no more than one (1) vote for each Condominium owned as shown on the Condominium Plan. where there is more than one (1) record Owner of a Condominium ("co-owners"), all of those co-owners shall be Members and may attend any meeting of the Association, but only one (1) of those co-owners shall be entitled to exercise the single vote to which the Condominium is entitled. Co-owners owning the majority interests in n Condominium shall from time to time designate in writing one of their number to vote. Fractional votes shall not be allowed, and the vote for each Condominium shall be exercised, if at all, as a unit. Where no voting co-owner is designated or if the designation has been evoked, the vote for the condominium shall be exercised as the co-owners owning the majority interests in the Condominium mutually agree. Unless the Board receives a written objection in advance from a co-owner, it shall be conclusively presumed that the corresponding voting co-owner is acting with the consent of his co-owners. No vote shall be cast for any Condominium if the co-owners present in person or by proxy owning the majority interests in such a Condominium cannot agree to said vote or other action. The nonvoting co-owner or co-owners shall be jointly and severally responsible for all of the obligations imposed upon the jointly-owned Condominium and shall be entitled to all other benefits of ownership. All agreements and determinations lawfully made by the Association in accordance with the voting percentages established herein, or in the Bylaws of the Association, shall be deemed to be binding on all Owners, their successors and assigns.

2.7. Repair and Maintenance by the Association.

(a) Maintenance Standards. Subject to Article IX pertaining to destruction of Improvements and Article X pertaining to eminent domain, the Association shall paint, maintain, repair and replace the Common Property and Improvements thereon or shall contract for such maintenance, repair and replacement to assure maintenance of the Common Property and Improvements thereon in a clean, sanitary and attractive condition. However, the Association shall not be responsible for or obligated to perform those items of maintenance, repair or Improvement of the Units or Exclusive Use Area, the maintenance of which is the responsibility of the Owners as provided in Section 2.8. The Board shall determine, in its sole discretion, the level and frequency of maintenance of the Common Property.

(b) Maintenance Items. Association maintenance and repairs shall include, without limitation, the right, without obligation, to perform all corrective janitorial, landscaping and repair work within any Residence, if the Owner fails to repair it; the repair and payment for all centrally metered utilities, water charges, and mechanical and electrical equipment in or on the Common Property; payment of all charges for all utilities which serve individual Units but which are subject to a common meter; payment of all Common Expenses and charges for water and utilities serving any amenities; the repair and maintenance of all walks, private driveways and other means of ingress and egress within the Property; the periodic structural repair, resurfacing, sealing, caulking, replacement of the Exclusive Use Area, so long as the need for any of these activities is not caused by the willful or negligent acts of the Owner to whom the Exclusive Use Area is assigned or any of such Owner’s Family, tenants or guests; and if determined by the Board to be economically feasible, a monthly inspection and preventive program for the prevention and eradication of infestation by wood destroying pests and organisms in the Property. The Association shall also maintain the planted landscaping within the planter boxes defining the perimeter boundary of the Exclusive Use Area patios of certain Units.

(c) Charges to Owners. All such costs of maintenance, repairs and replacements for the Property shall be paid for as Common Expenses out of the Maintenance Funds as provided in this Declaration. It shall further be the affirmative duty of the Board of Directors to require strict compliance with all provisions of this Declaration and to cause the Property to be inspected by the Architectural Committee for any violation thereof. The cost of any maintenance, repairs or replacement by the Association which is not the responsibility of the Association or which arises out of, or is caused by, the act of an Owner or such Owner's Family, tenants, guests, invitees, or agents shall, after Notice and Hearing, be levied by the Board as a Special Assessment against such Owner.

2.8. Repair and Maintenance by Owners.
Each Owner shall maintain, repair, replace, paint, paper, plaster, tile, finish and restore or cause to be so maintained, repaired, replaced and restored, at his sole expense, all portions of his Unit, as well as the windows, doors, light fixtures actuated from switches controlled from, or separately metered to, such Owner’s Unit, cabinets, exposed plumbing, built-in appliances, and the interior surfaces of the walls, ceilings, floors, permanent fixtures in a clean, sanitary and attractive condition, in accordance with the Condominium Plan and the original construction design of the Improvements in the Project. However, no bearing walls, ceilings, floors or other structural or utility bearing portions of the buildings housing the Units shall be pierced or otherwise altered or repaired, without the prior written approval of the plans for the alteration or repair by the Architectural Committee. It shall further be the duty of each Owner, at his sole expense, to keep the Exclusive Use Area over which an exclusive easement has been reserved for the benefit of such Owner, free from debris and reasonably protected against damage, subject to the approval of the Architectural Committee. Each Owner shall also be responsible for maintaining and painting the surface of his assigned Exclusive Use Area patio. However, no Owner shall be responsible for the periodic structural repair, resurfacing, sealing, caulking or replacement of his assigned Exclusive Use Area, so long as the repair or replacement is not caused by the willful or negligent acts of the Owner or his Family, tenants or guests. Notwithstanding any other provision herein, each Owner shall also be responsible for all maintenance and repair of any internal or external telephone wiring wherever located which is designed to serve only his Unit, and shall be entitled to reasonable access over the Association Property for such purposes, subject to reasonable limitations imposed by the Association. It shall further be the duty of each Owner to pay when due all charges for any utility service which is separately metered to his Unit. Subject to any required approval of the Architectural Committee, each Owner shall be responsible for maintaining those portions of any heating and cooling equipment and other utilities which are located within or which exclusively serve his Unit. In addition, each owner shall be responsible for maintaining and repairing the air conditioning pad which supports or will support the air conditioning compressor serving such Owner's Unit.

2.9. Use of Agent.
The Board of Directors, on behalf of the Association, may contract with a Manager for the performance of maintenance and repair and for conducting other activities on behalf of the Association, as may be determined by the Board. The maximum term of any such contract ("Management Contract") shall be one (1) year, unless a longer term is approved either by vote or written assent of a majority of the voting power of the Association, in which case the maximum term of the Management Contract shall be three (3) years. Each Management Contract shall provide for its termination by either party thereto with cause upon no more than thirty (30) days, written notice to the other party, and without cause and without payment of a termination fee upon no more than ninety (90) days' written notice to the other party.

ARTICLE III

3. Rights in Common Property.

3.1. Association Easement.
The Association shall have an easement over the Common Area for performing its duties and exercising its powers described in this Declaration. The Association’s obligations to maintain the Common Property shall commence on the date Annual Assessments commence on Condominiums in the Project. Until commencement of Annual Assessments on Condominiums in the Project, the Common Property shall be maintained by Declarant.

3.2. Partition.
Except as provided in this Declaration, there shall be no judicial partition of the Common Area, or any part thereof, for the term of the Project, nor shall Declarant, any Owner or any other Person acquiring any interest in any Condominium in the Project seek any such judicial partition.

3.3. Members’ Easements in Common Property.
Subject to the provisions of this Declaration, every Member of the Association shall have, for himself, his Family, his tenants and guests, a nonexclusive easement of access, ingress, egress, use and enjoyment of, in, to and over the Common Property, and such easement shall be appurtenant to and shall pass with title to every Condominium in the Project.

3.4. Extent of Members’ Easements.
The rights and easements of use and enjoyment of the Common Property created by this Declaration shall be subject to the Restrictions, which include, without limitation, the following:

(a) The right of the Board to suspend the rights and easements of any Member, and the Persons deriving such rights and easements from any Member, for use and enjoyment of any recreation facilities located on the Common Property, for any period during which the payment of any Annual, Special, Capital Improvement or Reconstruction Assessment against the Member and his Condominium remains delinquent, and, after Notice and Hearing as provided in the Bylaws, to suspend such rights and easements for the period set forth in the Bylaws for any violation of the Restrictions, it being understood that any suspension for either nonpayment of any Assessment or breach of the Restrictions shall not constitute a waiver or discharge of the Member's obligation to pay assessments as provided in this Declaration;

(b) The right of the Association to consent to or otherwise cause the construction of additional Improvement on the Common Property and to consent to or otherwise cause the alteration or removal of any existing Improvements on the Common Property for the benefit of the Members of the Association;

(c) The right of the Association, acting through the Board, to grant, consent to or join in the grant or conveyance of easements, licenses or rights-of-way in, on or over the Common Property for purposes not inconsistent with the intended use of the Property as a residential Condominium project;

(d) Subject to the provisions of this Declaration, the right of each Owner to the exclusive use and occupancy for the purposes designated in this Declaration of the Exclusive Use Area assigned to his respective Unit;

(e) The right of the Association, acting through the Board, to reasonably restrict access to roofs, maintenance and landscaped areas and similar areas of the Property;

(f) The right of the Association to reasonably limit the number of guests and tenants of the Owners using the Common Property; and

(g) The right of the Association, acting through the Board, to establish uniform Rules and Regulations for the use of the Common Property, as provided in this Declaration.

3.5. Delegation of Use.
Any Member entitled to the right and easement of use and enjoyment of the Common Property may delegate his right to use and enjoyment of the Common Property to his tenants, contract purchasers or subtenants who reside in his Condominium, subject to reasonable regulation by the Board.

3.6. Waiver of Use.
No Member may exempt himself from personal liability for Assessments duly levied by the Association, or effect the release of his Condominium from the liens and charges thereof, by waiving the use and enjoyment of the Common Property or by abandoning his Condominium.

3.7. Damage by Member.
To the extent permitted by California law, each Member shall be liable to the Association for any damage to the Common Property not fully reimbursed to the Association by insurance if the damage sustained because of the negligence, willful misconduct or unauthorized or improper installation or maintenance of any Improvement by the Member, his guests, tenants or invitees, or any other Persons deriving their right and easement of use and enjoyment of the Common Property from the Member, or his or their respective family and guests, both minor and adult. However, the Association, acting through the Board, reserves the right to determine whether any claim shall be made upon the insurance maintained by the Association, and the Association further reserves the right, after Notice and Hearing as provided in the Bylaws, to levy a Special Assessment equal to the increase, if any, in insurance premiums directly attributable to the damage caused by the Member or the Person for whom the Member may be liable as described above. In the case of joint ownership of a Condominium, the liability of the owners shall be joint and several, except to the extent that the Association shall have previously contracted in writing with the joint owners to the contrary. After Notice and Hearing as provided in the Bylaws, the cost of correcting the damage to the extent not reimbursed to the Association by insurance shall be a Special Assessment against such Member’s Condominium, and may be enforced as provided herein.

ARTICLE IV

4. Architectural Review Committee.

4.1. Members of Committee.
The Architectural Review Committee, sometimes referred to herein as the "Architectural Committee" or the "Committee," shall consist of three (3) members. Committee members shall be appointed by the Board and shall be from the Membership of the Association. Board members may also serve as Committee members. The Committee may designate and appoint a representative who is a licensed architect and a majority of the members may, from time to time, remove or replace such representative. The designated representative of the Committee may be, but need not be, a member of the Committee or a Member of the Association.

4.2. Review of Plans and Specifications.
The Committee shall consider and act upon any and all plans and specifications submitted for its approval under this Declaration and perform such other duties as from time to time shall be assigned to it by the Board, including the inspection of construction in progress to assure its conformance with plan approved by the Committee. No construction, alteration, removal, relocation, demolition, repainting, addition, modification, decoration, redecoration or reconstruction of an improvement in the Property shall be commenced or maintained, until the plans and specifications therefor showing the nature, kind, shape, height, width, color, materials and location of the same shall have been submitted to the Committee and approved in writing by the Committee. Without limiting the generality of this Article IV, the provisions of this Article IV apply to the construction, installation, alteration and modification of solar 1energy systems, as defined in Section 801.5 of the California Civil Code, subject to the provisions of California Civil Code Section 714, the Uniform Building Code of the City, applicable zoning regulations, and associated City ordinances. The Owner submitting the plans ("Applicant") shall obtain a written, dated receipt for the plans and specifications from an authorized agent of the Committee. Until changed by the Board, the address for the submission of such plans and specifications shall be the principal office of the Association. The Committee shall approve proposals or plans and specifications submitted for its approval only if it deems that the construction, alterations, or additions contemplated thereby in the locations indicated will not be detrimental to the appearance of the surrounding area of the Property as a whole, that the appearance of any structure affected thereby will be in harmony with the surrounding structures, that the construction thereof will not detract from the beauty, wholesomeness and attractiveness of the Common Property or the enjoyment thereof by the Members, and that the upkeep and maintenance thereof will not become a burden on the Association. The Committee may condition its approval of proposals or plans and specifications for any Improvement (1) upon the Applicant's furnishing the Association with security acceptable to the Association against any mechanic's lien or other encumbrance which may be Recorded against the Property as a result of such work, (2) on such changes therein as it deems appropriate, (3) upon the Applicant's agreement to grant appropriate easements to the Association for the maintenance of the Improvements, (4) upon the Applicant's agreement to install (at it’s sole cost) water, gas, electrical or other utility meters to measure any increased consumption, (5) upon the Applicant's agreement to reimburse the Association for the cost of maintenance, (6) upon the Applicant's agreement to complete the proposed work within a stated period of time, or (7) all of the above, and may require submission of additional plans and specifications or other information prior to approving or disapproving material submitted. The Committee may also issue rules or guidelines setting forth procedures for the submission of plans for approval, requiring a fee to accompany each application for approval, or additional factors which it will take into consideration in reviewing submissions. The Committee may provide that the amount of the fee shall be uniform, or that it be determined in any other reasonable manner, such as by the reasonable cost of the construction, alterations or additions contemplated. The Committee may require such detail in plans and specifications submitted for its review as it deems proper, including without limitation, floor plans, site plans, drainage plans, elevation drawings and description or samples of exterior material and colors. Until receipt by the Committee of any required plans and specifications, the Committee may postpone review of any plan submitted for approval. Decisions of the Committee and the reasons for the decisions shall be transmitted by the Committee to the Applicant at the address set forth in the application for approval, within thirty (30) days after receipt by the Committee of all materials required by the Committee. Any application submitted pursuant to this Section 4.2 shall be deemed approved, unless written disapproval or a request for additional information or materials by the Committee shall have been transmitted to the Applicant Within thirty (30) days after the date of receipt by the Committee of all required materials. The Applicant shall meet any review or permit requirements of the City prior to making any alterations or Improvements permitted hereunder.

4.3. Meetings of the Committee.
The Committee shall meet from time to time as necessary to perform its duties hereunder. The Committee may from time to time by resolution unanimously adopted in writing designate a Committee Representative (who may, but need not, be one of its members) to take any action or perform any duties for and on behalf of the Committee, except the granting of variances pursuant to Section 4.8. In the absence of such designation, the vote of a majority of the Committee or the written consent of a majority of the Committee taken without a meeting, shall constitute an act of the Committee.

4.4. No Waiver of Future Approvals.
The approval of the Committee of any proposals or plans and specifications or drawings for any work done or proposed or in connection with any other matter requiring the approval and consent of the Committee, shall not be deemed to constitute a waiver of any right to withhold approval or consent to any similar proposals, plans and specifications, drawings or matter subsequently or additionally submitted for approval or consent.

4.5. Compensation of Members.
The members of the Committee shall receive no compensation for services rendered, other than reimbursement for expenses incurred by them in the performance of their duties hereunder.

4.6. Correction of Defects.
The Architectural Committee or its duly authorized representative may at any time inspect any work for which approval of plans is required under this Article IV ("Work"), which right to inspect shall include the right to require any Owner to take such action as may be necessary to remedy any noncompliance with the Committee-approved plans for the Work or with the requirements of this Declaration ("Noncompliance").

(a) Time Limit. The Committee's right to inspect the Work and notify the responsible Owner of any Noncompliance shall terminate sixty (60) days after the latest to occur of the following events: (i) submittal of the plans for the Work to the Committee for its approval as provided in this Article IV; (ii) completion of the Work as provided in the Committee-approved plans; and (iii) written notice from the Owner to the Committee that the Work has been completed. This time limit for inspection and notification by the Committee shall be extended indefinitely if any of these Conditions has not occurred. If the Committee fails to send a notice of Noncompliance to an Owner before this time limit expires, the Work shall be deemed to comply with the approved plans.

(b) Remedy. If an Owner fails to remedy any Noncompliance within sixty (60) days from the date of notification from the Committee, the Committee shall notify the Board writing of such failure. Upon Notice and Hearing, as provided in the Bylaws, the Board shall determine whether there is a Noncompliance and, if so, the nature thereof and the estimated cost of correcting or removing the same. If Noncompliance exists, the Owner shall remedy or remove the same within a period of not more than forty-five (45) days from the date that notice of the Board ruling is given to the Owner. If the Owner does not comply with the Board ruling within that period, the Board, at its option, may Record a Notice of Noncompliance and commence a lawsuit for damages or injunctive relief, as appropriate, to remedy the Noncompliance.

(c) Notice of Nonresponsibility. Notwithstanding anything contained in these Bylaws to the contrary, any member of the Board or of the Committee, or any officer of the Association, shall immediately notify the Board upon learning of any Work on the Project undertaken by or on behalf of an Owner, including any Work located entirely within such Owner's Unit. Within ten (10) days after the Board learns of such Work, the Board shall cause a Notice of Nonresponsibility to be recorded and posted in the manner specified in Section 3094 of the California Civil Code, or such other provision of California law dealing with nonresponsibility for mechanics' liens resulting from such Owner's Work on any portion of the Project.

4.7. Scope of Review. The Architectural Committee shall review and approve or disapprove all plans submitted to it for any proposed Improvement, alteration or addition, on the basis of aesthetic consideration, consistency with this Declaration, and the overall benefit or detriment which would result to the immediate vicinity and the Property generally. The Committee shall take into consideration the aesthetic aspects of the architectural designs, placement of buildings, landscaping, color schemes, exterior finishes and materials and similar features. The Committee’s approval or disapproval shall be based solely on the considerations set forth in this Article IV, and the Committee shall not be responsible for reviewing, nor shall its approval of any plan or design be deemed approval of, any plan or design from the standpoint of structural safety or conformance with building or other codes.

4.8. Variances. The Committee may authorize variances from compliance with any of the architectural provisions of this Declaration,including restrictions upon height, size, floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental consideration may require. Such variances must be evidenced in writing, must be signed by at least a majority of the members of the Committee, and shall become effective upon Recordation. The Board must approve any variance recommended by the Committee before any such variance shall become effective. If such variances are granted, no violation of the covenants, conditions and restrictions contained in this Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to the particular property and particular provision hereof covered by the variance, nor shall it affect in any way the Owner's obligation to comply with all governmental laws and regulations affecting the use of his Residence.

4.9. Appeals. The Board may, at its discretion, adopt policies and procedures for the appeal of Architectural Committee decisions for reconsideration by the Board. The Board shall have no obligation to adopt or implement any such appeal procedures, and in the absence of Board adoption of appeal procedures, all decisions of the Architectural Committee shall be final.

ARTICLE V

5. Maintenance Funds and Assessments.

5.1. Personal Obligation of Assessments. Declarant, for each Condominium owned by it, hereby covenants and agrees to pay, and each Owner, by acceptance of a deed of a Condominium whether or not it shall be so expressed in any such Deed, is deemed to covenant and agree to pay to the Association all Annual Assessments for Common Expenses and all applicable Special Assessments, Reconstruction Assessments and Capital Improvement Assessments. The Association shall not levy or collect any Annual Assessment, Capital Improvement Assessment, Special Assessment or Reconstruction Assessment that exceeds the amount necessary for the purpose for which it is levied. Except as provided in this Section, all such assessments, together with interest, costs, and reasonable attorneys' fees, shall be a separate, distinct and personal obligation of the Person who was the Owner of the Condominium at the time when the assessment fell due. This personal obligation cannot be avoided by abandonment of the Condominium or by an offer to waive use of the Common Property or the Exclusive Use Area. The personal obligation for delinquent assessments shall not pass to any new Owner ("Purchaser") unless expressly assumed by the Purchaser.

5.2. Maintenance Funds of Association. The Board of Directors shall establish no fewer than two (2) separate Maintenance Fund accounts into which shall be deposited all monies paid to the Association, and from which disbursements shall be made, as provided herein, in the performance of functions by the Association under this Declaration. The Maintenance Funds may be established as trust accounts at a banking or savings institution. The Maintenance Funds shall include: (1) an Operating Fund for current Common Expenses of the Association, (2) an adequate Reserve Fund for capital improvements, replacements, painting and repairs of the Common Property (which cannot normally be expected to occur on an annual or more frequent basis), and for payment of deductible amounts for policies of insurance which the Association obtains as provided in Section 9.1 hereof, and (3) any other funds which the Board of Directors may establish to the extent necessary under the provisions of this Declaration. Nothing contained herein shall limit, preclude or impair the establishment of additional Maintenance Funds by the Association, so long as the amounts assessed to, deposited into, and disbursed from any such Fund are earmarked for specified purposes authorized by this Declaration.

5.3. Purpose of Assessments. The assessments levied by the Board of Directors on behalf of the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents of the Condominiums and for the operation, replacement, improvement and maintenance of the Common Property and to discharge any other obligations of the Association under this Declaration. All amounts deposited into the Maintenance Funds must be used solely for the common benefit of all of the Owners for purposes authorized by this Declaration. Disbursements from the Operating Fund shall be made by the Board of Directors for such purposes as may be necessary for the discharge of its responsibilities herein for the common benefit of all of the Owners, other than those purposes for which disbursements from the Reserve Fund are to be used. Disbursements from the Reserve Fund shall be made by the Board of Directors only for the respective purposes specified in this Article V. Nothing in this Declaration shall be construed in such a way as to prohibit the use of Association assessments or funds to abate any annoyance or nuisance emanating from outside the boundaries of the Property. Annual Assessments shall be used to satisfy Common Expenses of the Association, as provided herein and in the Bylaws.

5.4. Limitations on Annual Assessment Increases. The board shall levy Annual Assessments in accordance with the following provisions:

(a) Maximum Authorized Annual Assessment. The Board may only levy Annual Assessments which exceed the Annual Assessments for the immediately preceding Fiscal Year as follows:

(1) If the increase in Annual Assessments is less than or equal to twenty percent (20%) of the Annual Assessments for the immediately preceding Fiscal Year, then the Board must either (a) have distributed the Budget for the current Fiscal Year in accordance with Section 1365 (a) of the California Civil Code, or (b) obtain the approval of Members casting a majority of votes in a meeting or election of the Association in which more than fifty percent (50%) of the Members are represented ("Increase Election");

(2) If the increase in Annual Assessments is greater than twenty percent (20%) of the Annual Assessments for the immediately preceding Fiscal Year, then the Board must obtain the approval of Members casting a majority of votes in an Increase Election.

Notwithstanding the foregoing, this Section does not limit Annual Assessment increases necessary for addressing an "Emergency Situation. as a defined in Section 5.4(c).

(b) Supplemental Annual Assessments. If the Board, by majority vote, determines that the important and essential functions of the Association may be properly funded by an Annual Assessment in an amount less than the maximum authorized Annual Assessment described above, it may levy such lesser Annual Assessment. If the Board determines that the estimate of total charges for the current year is or will become inadequate to meet all Common Expenses for the Property for any reason, it shall immediately determine the approximate amount of the inadequacy. Subject to the limitations described in Sections 5.4(a) and (c) below, the Board shall have the authority to levy, at any time by a majority vote, a supplemental Annual Assessment reflecting a revision of the total charges to be assessed against each Condominium.

(c) Emergency Situations. For purposes of Sections 5.4(a), and 5.6, an "Emergency Situation" is any one of the following:

(1) An extraordinary expense required by an order of a court;

(2) An extraordinary expense necessary to repair or maintain the Property or any portion thereof for which the Association is responsible when a threat to personal safety on the Property is discovered; and

(3) An extraordinary expense necessary to repair or maintain the Property or any portion thereof for which the Association is responsible that could not have been reasonably foreseen by the Board when preparing the Budget. Prior to the imposition or collection of an assessment pursuant to this subparagraph (3), the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process. The resolution shall be distributed to the Members with the Notice of Assessment.

(d) Notification of Increase. The Association shall provide notice by first-class mail to the Owners of any increase in the annual, capital improvement, reconstruction or special assessments not less than thirty (30) nor more than sixty (60) days prior to the increased assessments becoming due.

5.5. Annual Assessments/Commencement Collection.
The Board of Directors shall authorize and levy the amount of the Annual Assessment upon each Condominium, as provided herein, by majority vote of the Board. The initial Annual Assessment shall begin on all condominiums in the Project (including untransferred Condominiums therein owned by Declarant) on the first day of the first calendar month following the date upon which the first deed is Recorded conveying a Condominium pursuant to a transaction requiring the issuance of a Final Subdivision Public Report by the DRE for the transfer of a Condominium in the Project. All Annual Assessments shall be assessed against the Members and their Condominiums in accordance with the Maintenance Expense Schedule attached hereto as Exhibit “C”. Annual Assessments for fractions of any month involved shall be prorated. Declarant shall pay its full pro rata share of the Annual Assessments on all untransferred Condominiums for which Annual Assessments have commenced. The Board shall fix the amount of the Annual Assessment against each Condominium at least thirty (30) days in advance of each Annual Assessment period. From time to time the Board may determine that all excess funds in the Operating Fund be retained by the Association and used to reduce the following year's Annual Assessment. Upon dissolution of the Association incident to the abandonment or termination of the Property, any amounts remaining in any of the Maintenance Funds shall be distributed to or for the benefit of the Members in the same proportions as such monies were collected from the Members.

Each Member shall pay to the Association his Annual Assessment in installments at such frequency and in such amounts as established by the Board. Each Annual Assessment may be paid by the Member to the Association in one check or in separate checks as payments attributable to the deposits under the Operating Fund and the Reserve Fund. If any installment of an Annual Assessment payment is less than the amount assessed and the payment does not specify the Maintenance Fund or Funds into which it should be deposited, the receipt by the Association from that Owner shall be credited in order of priority first to the Operating Fund, until that portion of the Annual Assessment has been satisfied, and second to the Reserve Fund.

5.6. Capital Improvement Assessments.
Should the Board of Directors determine the need for a Capital Improvement or other such addition to the Property, the cost of which in the aggregate exceeds five percent (5%) of the Budgeted gross expenses of the Association for the then current Fiscal Year, then the vote or written consent of Members casting a majority of votes at an Increase Election shall be required to approve and render effective a Capital Improvement Assessment levied by the Board of Directors to cover the cost of such expenditure. Capital Improvement Assessments may be levied by the Board without the consent of the Members, if the aggregate of such expenditures in each Fiscal Year does not exceed five percent (5%) of the Budgeted gross expenses of the Association for such Fiscal Year. Notwithstanding the foregoing, the Board may levy in any Fiscal Year, a Capital Improvement Assessment applicable to that Fiscal Year which exceeds five percent (5%) of the Budgeted gross expenses of the Association for such Fiscal Year if such increase is necessary for addressing an Emergency Situation as defined in Section 5.4(c).

5.7. Delinquency.
Any installment of an assessment provided for in this Declaration shall become delinquent if not paid within fifteen (15) days of the due date as established by the Board of Directors of the Association. The Board shall be authorized to adopt a system pursuant to which any installment of Annual Assessments, Capital Improvement Assessments, Special Assessments, or Reconstruction Assessments not paid within thirty (30) days after the due date, plus all reasonable costs of collection (including attorneys' fees) and late charges as provided herein, shall bear interest commencing thirty (30) days from the due date until paid at the rate of up to twelve percent (12%) per annum, but in no event more than the maximum rate permitted by law. The Board of Directors may also require the delinquent owner to pay a late charge in accordance with California Civil Code Section 1366(c)(2). The Association need not accept any tender or a partial payment of an installment of an assessment and all costs and attorneys, fees attributable thereto, and any acceptance of any such tender shall not be deemed to be a waiver of the Association’s right to demand and receive full payments thereafter.

5.8. Creation and Release of Lien.
All sums assessed in accordance with the provisions of this Declaration shall constitute a lien on the respective Condominium prior and superior to (a) any declaration of homestead Recorded after the Recordation of this Declaration,and (b) all other liens, except (1) all taxes, bonds, assessments and other levies which, by law, would be superior thereto, and (2) the lien or charge of any first Mortgage of record (meaning any Recorded Mortgage or Deed of Trust with first priority or seniority over other Mortgages or Deeds of Trust) made in good faith and for value and Recorded prior to the date on which the "Notice of Lien" (described in this Section) against the respective Condominium was Recorded. The lien shall become effective upon Recordation by the Board or its authorized agent of a Notice of Assessment ("Notice of Lien") securing the payment of any Annual, Capital Improvement or Reconstruction Assessment or installment thereof, levied by the Association against any Condominium Owner as provided in Section 1367 of the California Civil Code. The Notice of Lien shall state (i) the amount of the assessment or installment, as the case may be, and other authorized charges and interest, including the cost of preparing and Recording the Notice of Lien, (ii) the expenses of collection in connection with any delinquent installments, including without limitation reasonable attorneys, fees, (iii) a sufficient description of the Condominium against which the same has been assessed, (iv) the name and address of the Association, (v) the name of the Owner thereof, and (vi) in order for the lien to be enforced by nonjudicial foreclosure, the name and address of the trustee authorized by the Association to enforce the lien by sale. The Notice of Lien shall be signed by any authorized officer or agent of the Association. The lien shall relate only to the individual Condominium against which the assessment was levied and not to the Property as a whole. Upon payment to the Association of the full amount claimed in the Notice of Lien, or other satisfaction thereof, the Board of Directors shall cause to be Recorded a Notice of Satisfaction and Release of Lien ("Notice of Release") stating the satisfaction and release of the amount claimed. The Board of Directors may demand and receive from the applicable Owner a reasonable charge, to be Determined by the Board, for the preparation and Recordation of the Notice of Release before Recording it. Any purchaser or encumbrancer who has acted in good faith and extended value may rely upon the Notice of Release as conclusive evidence of the full satisfaction of the sums stated in the Notice of Lien.

5.9. Enforcement of Liens.
It shall be the duty of the Board of Directors to enforce the collection of any amounts due under this Declaration by one or more of the alternative means of relief afforded by this Declaration. The lien on a Condominium may be enforced by sale of the Condominium by the Association, the Association’s attorneys, any title insurance company authorized to do business in California, or other persons authorized to conduct the sale as a trustee, after failure of the Owner to pay any Annual, Capital Improvement or Reconstruction Assessment, or installment thereof, as provided herein. The sale shall be conducted in accordance with the provisions of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any manner permitted by law. An action may be brought to foreclose the lien of the Association by the Board, or by any Owner if the Board fails or refuses to act, after the expiration of at least thirty (30) days from the date on which the Notice of Lien was Recorded; provided that at least ten (10) days have expired since a copy of the Notice of Lien was mailed to the Owner affected thereby the Association, through its agents, shall have the power to bid on the Condominium at foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Upon completion of the foreclosure sale, an action may be brought by the Association or the purchaser at the sale in order to secure occupancy of the defaulting Owner’s Unit, and the defaulting Owner shall be required to pay the reasonable rental value for such Unit during any period of continued occupancy by the defaulting Owner or any persons claiming under the defaulting Owner. Suit to recover a money judgment for unpaid assessments shall be maintainable without foreclosing or waiving any lien securing the same, but this provision or any institution of suit to recover a money judgment shall not constitute an affirmation of the adequacy of money damages. Any recovery resulting from a suit in law or equity initiated pursuant to this Section may include reasonable attorneys, fees as fixed by the court.

5.10. Priority of Assessment Lien.
The lien of the assessments provided for herein, including interest and costs of collection (including attorneys' fees), shall be subordinate to the lien of any first Mortgage upon one or more Condominiums which was Recorded before Recordation of the Notice of Lien on the Condominium(s). Sale or transfer of any Condominium shall not affect the assessment lien. However, the sale or transfer of any Condominium pursuant to judicial or nonjudicial foreclosure of a first Mortgage shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Condominium from liens for any assessments thereafter becoming due. When the Mortgagee of a first Mortgage of record or other purchaser of a Condominium obtains title pursuant to a judicial or nonjudicial foreclosure of the first Mortgage, such acquirer of title, his successors and assigns, shall not be liable for the share of the Common Expenses or assessments by the Association chargeable to such Condominium which became due prior to the acquisition of title to such Condominium by such acquirer. Such unpaid share of Common Expenses or assessments shall be deemed to be Common Expenses collectible from all of the Owners of the Condominiums in the Project including such acquirer, his successors and assigns.