Article VIII – Financing

Section 1. Approval of Owners and Holders of First Deeds of Trust. Unless at least fifty‑one percent (51%) of the owners and holders of the first deeds of trust on Home Sites located within the Property have given their prior written approval, the Association shall not:

(a)       By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer any real estate or improvements thereon which are owned, directly or indirectly, by the Association. The granting of easements for utilities or other purposes or the transfer to a public agency or governmental unit shall not be deemed a transfer within the meaning of this clause.

(b)       Change the method of determining the obligations, assessments, dues or other charges which may be levied against an Owner.

(c)       By act or omission change, waive or abandon any plan of regulation, or enforcement thereof pertaining to the architectural design or the exterior appearance of residences located on Home Sites, the maintenance of party walls or common fences and driveways, or the upkeep of lawns and plantings in the subdivision.

(d)       Fail to maintain Fire and extended coverage insurance on insurable improvements in the Common Area on a current replacement cost basis in an amount not less than one hundred (100%) percent of the insurable value.

(e)       Use the proceeds of any hazard insurance policy covering losses to any part of the Common Area for other than the repair, replacement or reconstruction of the damaged improvements, provided, however, if after repair or replacement of the damaged improvements, there are excess proceeds remaining, such excess proceeds may be used by the Association to meet its other obligations hereunder.

Section 2. Books and Records. Any owner and holder of a first deed of trust on a Home Site will have the right to examine the books and records of the Association during business hours upon giving the Declarant or the Association at least three (3) days written notice.

Section 3. Payment of Taxes and Insurance premiums. The Owners and the holders of First deeds of trust on Home Sites may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge or lien against any of the Common Area and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon the lapse of a policy for property owned by the Association and the persons, firms or corporations making such payments shall be owed immediate reimbursement therefor from the Association.