City of Oceanside

DECLARATION OF RESTRICTIONS FOR

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RA TE OF ASSESSMENTS ••••.••..••••.•••••••••••••• ~ •••..••••...•..•••• 8 ASSESSMENT ROLLS ......••••••••••••.•...••••••••.•.••.•.•••••.•• · •••. 8 SPECIAL ASSESSMENTS ••..............••..•••...•.•••..........•...... 8 RESIDENTIAL LOTS NOT SUBJECT TO ASSESSMENTS ..•......••.......•...•. 9 LIMITATIONS ON ASSESSMENTS .........................•............... 9

OBLIGATION OF ASSESSMENT .....•....•.•.....•..••..•................. 7 PURPOSE OF ASSESSMENTS .....••.•..•.•••...................•......... 8

ARTICLE 3. - COVENANT FOR ASSESSMENT TO CORPORATION . . . •.•.• 7 NO PERSONAL LIABILITY OF BOARD MEMBERS .

PENALTIES AGAINST MEMBERS .....•••....••••...•.....••............... 6 NOTICE AND HEARING .•••.••..•••••.. · ••••.•••••.•.••••.••••.••...••.•• 7 RIGHT TO ENTER 7

TYPES OF MEMBERS •••••••••••••••••.•••••••••••• · •••••.•••••••••.•.••. 5 RIGHT OF ACCESS 6 RIGHTS OF CORPORATION ••••.•.•••••••.•••••.•.•••••••••.•.•.•.••..•.. 6

ARTICLE 2. - MEMBERSHIP; CORPORATE RIGHTS RESOLUTION ••••••......••••• ~ ••.••••..••..••••...••.••........•..... 5 RESIDENTIAL LOT and LOT ••••....•••••....••••....•..•..............• 5 PUBLIC REPORT •...................................................... 5 PROPERTY and SUBJECT PROPERTY .•.•••..•••••...•...••......•••••...•• 4

DWELLING and RESIDENCE ..••.••.....••••.••.....••.....••...........• 3 ELIGIBLE INSURER and ELIGIBLE GUARANTOR •••.•.......•...•........... 3 ELIGIBLE MORTGAGE HOLDER ...•••.••......•....••.•.......••.••....... 3 FHLMC ••.•••••••••••••••••• · :· · •••••••••••••••••••••••••••••••••••••••• 3 FNMA ••••••.•••••••••••••••••••••••••••••••••••••••••••••••••••••••• 3 FIRST MORTGAGE .•.•.•••••••..•.••..••••••••..•.•..................•. 3 MAP .•••••••••••••••• , •••••••••••••••••••••••••••••••••••••••••••.••• 4 MEMBER ••••••••••••• ~ ••••••••••••••••••••••••••••••••••••••••••••••• 4 MORTGAGE •••••••••••••••••••.•••••••••••••••••••••••••••••••••••••••• 4 MORTGAGEE •........... · ••••••••••••••••••••••••••••••••••••••••••••••• 4 MORTGAGOR •••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 4 OWNER •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 4 PROJECT •....................................... ~ •••••••••••••••••••• 4 PROJECT DOCUMENTS •••••••••••••••••••••••••••••••••••••• · ••••••••.••• 4.

DECLARANT •.......................................................... 2 DECLARATION .••.••••••••••••••••••••••••••.••.••.•..••.••••••.••..•• 3

ARTICLES · •.....•.........•.•.•..........•.... ~ 2 BOARD •............................................................... 2 BYLAWS ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 2 CITY ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 2 COMMON EXPENSES •..........•.......•.........•............••..•..... 2 COMMON MAINTENANCE AREA •••.••••..••••..•.•.•..•.•••••.....•...••••. 2 CORPORATION and ASSOCIATION .•....••••..•.••..........••.....•••..•. 2

DEFINITIONS ARTICLE I. TABLE OF CONTENTS

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3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7.

2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7.

I.I. 1.2. 1.3. 1.4. 1.5. 1.6. 1. 7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15. 1.16. 1.17. 1.18. 1.19. 1.20. 1.21. 1.22. 1.23. 1.24. 1.25. 1.26. 1.27.

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6 . 1. GENERAL •.••.•.•.••.•••.•...•.•••.•..•••••••••.••.••. · •.••.••..••••• 20 6. 2. RESPONSIBILITY OF CORPORATION ••••••••••••••••••••••••••••••••••••• 20

ARTICLE 6. - RESPONSIBILITIES OF MAINT£NANCE

NON-COMPLIANCE WITH LAWS ..•.•.•••••....••...••••••••••••••••.•••.. 19 APPROVAL BY CITY. ••.•.•••• ~ •••••••.•••••••••..•.••.••••••••••.•••.••• 20

LIABILITY,. 19 · ENFORCEMENT •••••••••.•••••••••••••••••••••••••••••••••••••••••••••• 19

ESTOPPEL CERTIFICATE ..•••••.••••....••••••......•...•••••..•••.••• 19

ARCHITECTURAL COMMITTEE •••••• ; •••••••••••••••••••••••••••••••••••• 17 MEETINGS ••• · ••••••••• ~-~ •••••••••••••••••••••••••••••••••••••••••••• 18 #

FEE FOR REVIEW ••••••••••••••.•.••• ~ ••••••••••••••.•••••.•••• · •••••• 18 COMPENSATION •••••••••••••••••••.•• , ••••••••••••••••••••••••••••••••• 18 ARCHITECTURAL- RULES •••••••••••••• ·· ••••••••••••••••••••••••••••••••• 18

GENERAL •••••.••••••••••••••••••.••.•••••••••••.•••••.••.••••••••• · .17 RESTRICTED ACTIVITY ..............•.•.•••..••....•.•.........•.•••• 17 PLAN SUBMISSION, REVIEW •••••••.•••••••••••••••••....•••.••••••••••• 17 EXEMPTED FROM .REVIEW~- 17·

ARTICLE 5. - ARCHITECTURAL ANO DESIGN CONTROL LANDSCAPING ••••••••••••• ·• ••••••• ~ ••••••••••••••••••••••••••••• ~ ••• 16 RESTRICTIONS ON FURTHER SUBDIVISION ••••••••....•.••••...••.••••••• 16 SOLAR ENERGY SYSTEM •••••••••••••••••••••••.••.•.•••••••.••••••••••• 16.

REMODELING THE COMMON MAINTENANCE AREA ••••.••••..••••••••••••••.•• 14 OFFENSIVE ACTIVITIES AND CONDITIONS ••••••••••••••••••••••..••.•••• 14 CAR MAINTENANCE ANO POWER EQUIPMENT ••••••••••.••••••••••• ~ ..••..•• 15 USE OF COMMON MAINTENANCE AREA ••••••..••.••.••••••••.••••••••••••• 15 VEHICLE RESTRICTIONS ..............•...••..•....•.•........•........ 15 PARKING •••.••••.•••••.••••••••••••.•••••.••••••..••.•.•••••••••••• 16 WELLS; SEPTIC TANKS.• •••.••.••••••••••••• • •••••••.••••••••••••••.•• ·.1·6 LIABILITY FOR DAMAGE TO COMMON MAINTENANCE AREA ••••••• ." ••..••••••• 16

ANTENNAS, FLAG POLES, ETC ••.•••••••••••....•.•..•...•...•.••.•.... 14 EXTERIOR LIGHTING ........••...••...•..•......•..•........•...•.... 14 SIGNS " " ........•........ _ 13 INTERFERENCE OF OTHER OCCUPANTS .............•...................•. 13

USE OF RESIDENTIAL LOTS •.•..•.•••••••••••.•••••••••••••••••••••••• 12 LEASE OF OWELLING .....•........•.............•..................•. 13 . INSURAB I l lTY 13 PETS •....•..••.• ~ ..•••.•••••.•.••••••.•••.•••.• .- •.•••.••.••••••••. 13

COMMENCEMENT OF ASSESSMENTS; DUE DATES; NOTICE •.••••••••••..•••••• 10 LATE PENALTIES; INTEREST ON ASSESSMENTS •.••••••••.•••••..••.••.••. 10 EFFECT OF NON-PAYMENT OF ASSESSMENTS •••.•••• ~ •••.•••••••••.••••••• 10 FORECLOSURE PROCEEDINGS ...••••••••..•.•• .- •••••••.•...••.••..••.•.. 11 PRIORITY OF THE LIEN ..••..•.••...••••••.••••••.••.•..•.•..•••••••• 11 TAXATION OF CORPORATION •...•.••••..•••...•.••..••.••••.......•.... 12 PERSONAL LIABILITY OF OWNER ...•.......•••••.............••....•••• 12 ASSOCIATION FINANCIAL ACCOUNTS •.•••••.•...•....••••••••••••...•••• 12 ARTICLE 4. - USE RESTRICTIONS

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5.1. 5.2. 5.3 .. 5.4. S.S. 5.6. 5.7. 5.8. 5.9. 5.10. 5.11. 5.12. 5.13. 5.14.

4.1. 4.2. 4.3. 4.4. 4.5. 4.6.

-· 4. 7. 4.8. 4.9. 4.10. 4.11. 4.12. 4.13. 4.14. 4.15. 4.16. 4.17. 4.18. 4.19.

3.8. 3.9. 3.10. 3.11. 3.12. 3.13. 3.14. 3.15.

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6 • 1 • GEN ERA L • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • 2 0 6.2. RESPONSIBILITY OF CORPORATION .....•...•.........•................. 20

ARTICLE 6. - RESPONSIBILITIES OF MAINTENANCE

5 .1. GENERAL · .17 5.2. RESTRICTED ACTIVITY .•....•...•....••.•....•...•.......•.•..•...... 17 5.3. PLAN SUBMISSION, REVIEW ........••....•......•........•...•••••.•.• 17 5. 4. EXEMPTED FROM REVIEW ..••.•..•.•••.•..•.•••.••••..•.•••.••••.••.•.• 17 5.5. ARCHITECTURAL COMMITTEE •....••.••...•.•....••..•....••.••..••....• 17 5. 6. MEETINGS .........•••..••....••...•••.••......•......•.•....•.•.... 18 5.7. FEE FOR REVIEW .••••••..•••••••..•• ~ •.••••.••.••••••.•••••••• · •.••.. 18 S.S. COMPENSATION 18 5. 9. ARCHITECTURAL RULES .•.•.•..•.•.•••.•.•.•.••.•.•.••.•.•....•..•.••. 18 5.10. ESTOPPEL CERTIFICATE ......•..........•...•.•...................... 19 5.11. LIABILITY., ...•......................................•...•......... 19 5 .12. ENFORCEMENT ...•...•.•.•••.•..•.•.••..•••••.••.•.••••••.•.••.•••.... 19 5 .13. NON-COMPLIANCE WITH LAWS .........................•............•... 19 5.14. APPROVAL BY CITY .•••••••.••••••.•.•••••.••.•.••.•••••••.•.••.•.... 20

ARTICLE 5. - ARCHITECTURAL AND DESIGN CONTROL

3.8. COMMENCEMENT OF ASSESSMENTS; DUE DATES; NOT!CE ••..••......•...•... 10 3.9. LATE PENALTIES; INTEREST ON ASSESSMENTS •.•••••••••.•.•.•••••.•..•. 10 3.10. EFFECT OF NON-PAYMENT OF ASSESSMENTS •.•.••.• ~ .•...•••••..•...••••• 10 3 .11. FORECLOSURE PROCEEDINGS ...•.••..•••••••. .- ••..•..•.•.•.•.•..•••.•.• 11 3.12. PRIORITY OF THE LIEN •.•..............•...•.....••••........•....•• 11 3.13. TAXATION OF CORPORATION ........•.......................•.......... 12 3.14. PERSONAL LIABILITY OF OWNER ••••..••.•.•..•.•.••.••..•....•...•.•.• 12 3.15. ASSOCIATION FINANCIAL ACCOUNTS .•..........•.................•...•. 12 ARTICLE 4. - USE RESTRICTIONS

4.1. USE OF RESIDENTIAL LOTS .••••••••••••.••••.•.••.••••••.•.•••••••••• 12 4. 2. LEASE OF DWELLING •................................................. 13 4.3. INSURABILITY .......•............................................... 13 4. 4. PETS ~ 13 4.5. INTERFERENCE OF OTHER OCCUPANTS ..••.........•.......•...•......... 13 4 .. 6. SIGNS _, .•.................................... 13 4.7. ANTENNAS, FLAG POLES, ETC ••••••••••••••••••••••••••••••••••••••••• 14 4.8. EXTERIOR LIGHTING ............•.................................... 14 4.9. REMODELING THE COMMON MAINTENANCE AREA •••••••..•..••••••...••••••• 14 4.10. OFFENSIVE ACTIVITIES ANO CONOITIONS .••.•.•..••.........•.....••.•. 14 4.11. CAR MAINTENANCE ANO POWER EQUIPMENT •••••••.•.••..••..•••. ~ ..•••••• 15 4.12. USE OF COMMON MAINTENANCE AREA ••..••.••.•...•••••....•......•....• 15 4.13. VEHICLE RESTRICTIONS ..••••...•..•••.••••••.....••..••.•.......•..• 15 4.14. PARKING •....•...••.••...••••.•••••.•••.••••.••••.••.••••••..•.•... 16 4.15. WELLS; SEPTIC TANKS •..•.•...•••••.•..••••...••.•..•...•...•..••.•. ·.16 4.16. LIABILITY FOR DAMAGE TO COMMON MAINTENANCE AREA .•••..•• · •.•.•••.••• 16 4.17. SOLAR ENERGY SYSTEM •.•••.•••••••••••.••.•• - .•••..•.•.•.•.••..•••••• 16. 4.18. RESTRICTIONS ON FURTHER SUBDIVISION ..••••••..•••.•••••.••.•••••••. 16 4.19. 'LANOSCAPING •.•••..•...••.•••.•..•.•••••••............•.••...•.•.•• 16

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11.1. GENERAL 30 11.2. NO RIGHT OF FIRST REFUSAL ....•.•...•••.••....•.•..........•.....•. 30 11.3. UNPAID DUES OR CHARGES ...•..••...•••••..••....•.......•.........•. 30 11.4. ACTION REQUIRING MORTGAGEE APPROVAL ....•................•.......•. 30 11. 5. PAYMENT OF TAXES AND INSURANCE ......••.........•.....•..........•. 31 11.6. PRIORITY OF PROCEED OR AWARD DISTRIBUTION ..........•.....•........ 31 11. 7. NOTIFICATION TO MORTGAGEE. .••••••••••••••••••••••••••••••••••••••• 31 11.8. AGREEMENT FOR MANAGEMENT ....••...••.................•....•........ 32 11. 9. INSPECTION OF PROJECT DOCUMENTS, BOOKS AND RECORDS · •. 32 11.10. NON-CURABLE BREACH ...•..••.•.•..•...••....•.....•....•..•.•..••... 32

ARTICLE 9. - DAMAGE; DESTRUCTION OR CONDEMNATION 9.1. DAMAGE TO LOT OR OWELLING •...•.••....•.••••••...............•.•.•. 26 9.2. DAMAGE TO COMMON MAINTENANCE AREA IMPROVEMENTS ....••..••••••••• · ... 26 9.2.1. INSURANCE PROCEEDS AOEQUATE •........•..•..•••••••••. 26. 9.2.2. INSURANCE PROCEEDS INADEQUATE •...•.........•.•..•••• 27 9.3. CONDEMNATION; EMINENT OOMAIN •....••••.••.•••••...•.•.•........•... 27

ARTICLE 10. - EASEMENTS 10.l. COMMON MAINTENANCE AREA EASEMENT ........•.•••................•.••. 27 10.2. DRAINAGE & SLOPES 28 10.3. CORPORATION GRANT OF OTHER EASEMENTS .....•..•.•.....•............. 28 10.4. EASEMENTS FOR MAINTENANCE OF ENCROACHMENTS .........•..•.....•.•... 28 10.5. RESERVATION OF EASEMENTS ••..•.•..••••.........•...••.....•...••.•. 28 10.6. OWNERS' RIGHTS, DUTIES AND EASEMENTS FOR UTILITIES •.....•....•.... 29

ARTICLE 11. - RIGHTS OF LENDERS

ARTICLE~- - INSURANCE 8.1. MASTER INSURANCE POLICY .....•..•...•••••.•......••••••.•••....•.•• 24 8.2. COVERAGE, AMOUNT AND TERM OF INSURANCE •....•••.•••....••.....•••.• 25 8.3. FAILURE TO ACQUIRE .......•.....••.•.........•.••..............•... 25 8. 4. OWNERS' INSURANCE ••.•••••••.••.••••..•••.•••••••.•.•.••.••.••••••. 25

7 . 1 . GENERAL •••...•••••.•..•••.. ., .•..•...•••.•••.••........••..•.•..•.• 22 7.2. DAMAGE BY ONE OWNER ................•.............................. 23 7.3. SHARING OF MAINTENANCE ..•.....•..••••••.•...•...•••..•.....•.••••. 23 7.4. DAMAGE BY OTHER CAUSE ...............••............................ 23 7. S. ALTERATIONS •••••••.••••.••••.•..•••••.•••••••.•••••••••••••••••••• 23 7. 6. WEA.THERPROOFING •..................... - ..••••..••.•.•.••••..•.•••.•.• 23 7. 7. ARBITRATION ..........................•............................ 23 7. 8. BIND ING EFFECT •.......•.•..........•.....•..•••..•.•.•••.•.•...... 24

6.3. OWNER RESPONSIBILITY ......•.•.•.......••.•••••••..........••.....• 21 6.4. AMENDMENT OF RESPONSIBILITY ......••••••.........••.•..•.••..•••.•• 22 6.5. FAILURE TO MAINTAIN ........•..•.•........... ; 22 6.6. WOOD-DESTROYING PESTS OR ORGANISMS - ....•...•.••.....•••..... 22 ARTICLE 7. - PARTY WALLS

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EXHIBIT •A• - LEGAL DESCRIPTION

13 .1. SE1/ERABILITY 34 13.2. AMENDMENTS ..................••••••...................••........... 34 13.3. EXTENSION OF DECLARATION •. ~·······································36 13.4. ANNEXATION PURSUANT TO APPROVAL •••••••....••••.•••.•....••••.••••• 36 13. 5. LITIGATION ....•...•••.•••••••....•..•..•.........•....••.......... 36 13.6. NON-INTERFERENCE TO OECLARANT CONSTRUCTION EFFORT •.••.••......•••. 36 13.7. TERMINATION OF ANY RESPONSIBILITY OF DECLARANT .........•.•.•••.... 37 13.8. OWNER COMPLIANCE WITH DECLARATION ...•.•••••••.•.••.......•.••.•.•. 38 13.9. DELIVERY OF NOTICE ..••.•••..•••••••••...•...•.•.•.••.•.•...••••••• 38 13.10. REPORTS TO PROSPECTIVE PURCHASERS; ESTOPPEL CERTIFICATE ...•.....•• 38 13.11. GOVERNING DOCUMENTS ••..••••••••.•••••••••.•........•.•.••.•••.•... 39 13 .12 SINGULAR INCLUDES PLURAL. .••.....•..•..•.........••••••.•.....•.•• 39 13.13 TITLES ....•..••...•..••.•...•••.•......•...•...................••. 39

. ARTICLE 13. - GENERAL PROVISIONS

12.1. RIGHT TO ENFORCE 33 12 .2. NUISANCE •••... ~ ..••••.•.•..••••.•••••••••••.....••.•..••..•....... 33 12.3. FAILURE TO ENFORCE .•...••••..••....................••............. 33 12.4. VIOLATION OF LAW ......•......•..••••.•.••...................•..•.. 33

11.11. LOAN TO FACILITATE .........•..•................................... 32 11.12. MORTGAGEES FURNISHING INFORMATION ....•..•.•.....••.•••.•.•••.•.... 32 11.13. FINANCIAL STATEMENT .•••••••••••••••••••.••.• · •......••••••.•....•.• 33 11.14. TERMINATION WITHOUT SUBSTANTIAL OESTRUCTION •.•.••.....•........... 33 ARTICLE 12. - ENFORCEMENT

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NOW? THEREFORE, Declarant hereby certifies and declares and does hereby establish the following general plan for the protection and benefit of a 11 of the rea 1 property described, and has fixed and does hereby fix the following protective covenants, conditions and restrictions upon each and .every ownership interest in property described above, under which said covenants, conditions and restrictions, each ownership interest in the property shall be hereafter held, used, occupied, leased, sold, encumbered, conveyed and/ or transferred. Each and a 11 of said covenants, conditions and restrictions are for the purpose of protecting the va 1 ue and desirability of, and sha 11 inure to the benefit of a 11 of the rea 1 property described above,

A. Dec 1 arant is the Owner of the rea 1 property 1 ocated in· the C; ty of Oceanside, County of San Diego, State of Ca 1 i forni a, more particul ar1y described on Exhibit •A• attached hereto and by this reference made a part hereof.

B. Oeclarant has or intends to improve the hereinabove described property by constructing thereon a Common Interest Development pursuant to the provisions of the Davis-Stirling Common Interest Development Act, more particularly described in California._ Civil Code Section 1351(k} as a Planned Development (the "Project") by subdividing it into one hundred thirteen (113) Residential Lots.

C. The Property is subject to all requirements and conditions contained in the Planning Conmission of the City of Oceanside Resolution No. 88-P79, adopted September 12, 1988 (•Resolution•), and any amendments now or hereafter made thereto. All such requirements and conditions shall run with the land and bind all owners, lessees, transferees, heirs and successors of the Property or any portion thereof.

O. Each Owner of a Residential Lot in the Project will receive title to such Lot plus an appurtenant membership in the MARSELLA COMMUNITY ASSOCIATION, a California nonprofit mutua 1 benefit corporation ( "Corpora­ t i on11), organized under the Nonprofit Mutual Benefit Corpora ti on Law (Cal ifor­ nia Corporations Code Sections 7110-et seq.), which will be the management body for the Project.

E. Before selling or conveying any interests in the hereinabove described real property, Declarant desires to subject said property in accord­ ance with a common plan to certain covenants, conditions and restrictions for the benefit of Dec la rant and any and a 11 present and future owners of said property.

RECITALS

THIS DECLARATION is made on the day and year hereinafter written by OCEANSIDE VILLAS~ a California general partnership, hereinafter called "Dec] arant, 11 with reference to the following:

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"Deel arant" sha11 mean and refer to OCEANSIDE VILLAS, a California general partnership, its successors and assigns, if such successors or assigns·

1. 8. OE CLAR.ANT.

"Corporation," 1'Association," and Homeowner Association the terms being synonymous, sha 11 mean and refer to MARBELLA COMMUNITY ASSOCIATION, a California non-profit mutual benefit corporation, incorporated under the Non­ Profit Mutual Benefit Laws of the State of California, and its successors and assigns.

1.7. CORPORATION, ASSOCIATION~ HOMEOWNERS ASSOCIATION.

"Common Maintenance Area" shall mean and refer to those portions of the Property, as shown and described on the Map as landscape and drainage ease­ ments, over which the Association is granted an easement for the maintenance, repair and replacement of the landscaping and improvements thereon.

1.6. COMMON MAINTENANCE AREA.

"Common Expenses" means and includes the actual and estimated expens­ es of operating the Project and .any reasonable reserve for such purposes as found and determined by the Board and a 11 sums designated common expenses by or pursuant to Project Documents.

1.5. COMMON EXPENSES.

11City11 shall mean and refer to the City of Oceanside, a municipal corporation located in the County of San Diego, State of California.

1.4. CITY.

"Syl aws" shall mean and refer to the Bylaws of the Corporation, including such amendments thereto as may from time to time be made.

1.3. BYLAWS .. ration.

"Board" shall mean and refer to the Board of Directors of the Corpo- 1 .. 2. BOARD.

"Articles11 shall mean and refer to the Articles of Incorporation, including such amendments thereto as may from time to time be made.

1.1. ARTICLES. ARTICLE 1. - DEFINITIONS

and shall run with and be binding upon and pass with property, and each and every ownership interest therein, and shall inure to the benefit of, apply to, and bind the respective successors in title or interest of Oeclarant.

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"First Mortgage II sha 11 mean and ref er to a First Deed of Trust as well as a First Mortgage.

1.15. FIRST MORTGAGE. tion.

"FNMA" shall mean and refer to the Federal National Mortgage Associa-

1.14. FNMA.

ration. "FHLMC" shall mean and refer to the Federal Home Loan Mortgage Corpe-

1.13. FHLMC.

"El i gi b 1 e Mortgage Ho 1 der" sha 11 mean and ref er to the ho 1 der of a first mortgage or deed of trust on a Residential Lot, who has provided· a writ­ ten request to the Homeowners Association, to be notified of those matters which such holder is entitled to notice of by reason of this Declaration or the Bylaws of the Corporation. Such notice must contain the Residential Lot number or the street address of the secured Residential Lot.

1.12. ELIGIBLE MORTGAGE HOLDER.

"Eligible Insurer" and "Eligible Guarantor," the terms being synony­ mous, sha 11 mean and ref er to an insurer or governmenta 1 guarantor who has provtded a written request to the Homeowners Association, to be notified of those matters which such holder is entitled to notice of by reason of this Declaration or the Bylaws of the Corporation.

110well ing11 and "Res idenca, ~. the terms being synonymous, shall mean a residential structure or structures, including enclosed yard, balconies, patio areas and garages and located on a Residential Lot.

1.11. ELIGIBLE INSURER and ELIGIBLE GUARANTOR.

1.10. DWELLING and RESIDENCE.

"Decl arat ton" shall mean and refer to this Declaration recorded with the Office of the County Recorder of San Diego County, California, covering the property, including any amendments hereto as may from time to time be recorded.

1.9. DECLARATION.

acquire any or all of the Declarant's interest in the Property for the purpose of development or sale. A successor Declarant shall also be deemed to include the beneficiary under any deed of trust securing an obligation from a then existing Declarant encumbering all or any portion of the Property, which bene­ ficiary has acquired any such . property by foreclosure, power of sa 1 e or deed in lieu of such foreclosure or sale.

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"Property" and "Subject Property," the terms being synonymous, sha11 mean and refer to that certain real property 1 ocated in San Diego County, California, more particularly described in Exhibit •A• herein.

PROPERTY and SUBJECT PROPERTY. 1.24.

"Project Documents" means and includes this Declaration, the exhib­ its, if any, attached hereto, the Articles, the Bylaws, including any amend­ ments to the aforedescribed documents as may from time to time be made.

1.23. PROJECT DOCUMENTS.

11Project11 shall mean and refer to the entire parcel of real property described in Exhibit •A• herein, including all structures and improvements erected or to be erected thereon.

1.22. PROJECT.

"Owner" sha 11 mean and refer to the record Owner, whether one · ( l) or more persons or entities, of a Residential Lot. The term "Owner11 shall include a seller under an executory contract of sale, but shall exclude Mortgagees.

1.21. OWNER.

"Mortgagori' sha 11 mean and refer to the trustor of a Deed of Trust as well as a mortgagor.

1. 20.. MORTGAGOR.

"Mortgagee" shall mean and refer to a beneficiary or a holder of a deed of trust as well as a mortgagee.

1.19. MORTGAGEE ..

mortgage. "Mortgage" shall mean and refer to a deed of trust as well as a

1.18.. MORTGAGE.

"Membern shall mean and refer to a person entitled to membership in the Corporation as provided herein.

"Map" shall mean and refer to that certain recorded with the County Recorder of San Diego on August 28, 1989 as Map No. 12449.

1.17. MEMBER.

1.16. MAP.

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when the total outstanding votes held by the Class A Members are equal to or greater than the total outstanding votes held by the Class B Member; or

(a)

Every Owner of a Residential Lot shall be a Member of the Corpora­ tion. Membership shall be appurtenant to and may not be separated from owner­ ship of any Residential Lot. Each Owner is obligated promptly, fully and faithfully to comply with and conform to the Articles and Bylaws and this Declaration. Membership in the Corporation shall not be transferred, pledged or alienated in any way, except upon the sale of the Residential Lot to which it is appurtenant, and then only to the purchaser. The transfer of title to a Residential Lot or the sale of a. Residential Lot and transfer of possession thereof to the purchaser shall automatically transfer the membership appurte­ nant to such Residential Lot to the transferee.

The Corporation shall have two classes of voting membership: CLASS A. Each Member, other than the Dec 1 a rant, sha 11 be a Cl ass A Member. Class A membership entitles the holder to one (1) vote for each

Residential Lot owned. If a Residential Lot is owned by more· than one person, each such person sha 11 be a Member of the Corporation, but there sha 11 be no more than one (1) vote for each Residential Lot.· CLASS B. The Declarant is a Class B Member. Class B membership entitles the holder to not more than three (3) votes for each Residential Lot of which Declarant is record owner. The Class B membership shall be irreversibly converted to Class A membership on the first to occur of the following:

ARTICLE 2. - MEMBERSHIP; CORPORATE RIGHTS 2.1. TYPES OF MEMBERS.

"Resolution" shall mean and refer to the Resolution of the Planning Commission of the City of Oceanside No. 88-P79, adopted September 12, 1988.

1.27. RESOLUTION.

"Residential Lota and "Lot," the terms being synonymous, shall refer to all of Lots within the Project, including all improvements now or hereafter thereon, and those portions designated as Conunon Maintenance Areas.

"Publ ic Report" shall mean and refer to the Final Subdivision Public Report issued by the California Department of Real Estate covering each Phase of the Project. 1.26. RESIDENTIAL LOT and LOT.

1.25. PUBLIC REPORT.

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The Board shall have the right to suspend the membership rights and privi 1 eges, together with the voting rights of· any Member of the Corporation, for any period of time during which the assessment on a Member's Residential Lot remains unpaid.

No such suspension shall affect the rights of such Member to access to his Lot, except by judgment of a court or a decision arising out of arbitra­ tion or on account of foreclosure or sale under a power of sale for failure of the Member to pay assessments duly levied by the Corporation.

The Board sha 11 a 1 so have the right to 1 evy monetary pen a 1t i es against an individual Member as a disciplinary measure for failure of a Member to comp 1 y with provi s i ans of the Project Documents, or as a means of causing the Member to reimburse the Corporation for costs and expenses incurred by the Corporation in the repair of damage to the Common Maintenance Area for which the Member was allegedly responsible, or in bringing the Member and his Resi­ dential Lot in compliance with the Project Documents. Provided, however, no such monetary penalty may be characterized or treated as an assessment which may become a .1 ien against the Owner's subdivision interest enforceable by a sale of the interest in accordance with the provisions of Sections 2924, 2924(b) and 2924(c) of the Civil Code.

Except as otherwise provided herein, the Corporation acting through the Board and officers sha11 have the sole and exclusive right and duty to repair, replace or restore all of the Conunon Maintenance Area or any portion thereof together with the improvements, trees, shrubbery, pl ants and grass thereon, all as more fully set forth in this Declaration, the Articles and the Bylaws.

2.4. PENALTIES AGAINST MEMBERS.

Regard1 ess of any prcvisrons of the Project Documents to the con­ trary or any penalties imposed by the Board, each Owner shall have an unre­ stricted right of access for ingress and egress to and from such Owner's Resi­ dential Lot and Dwelling thereon.

2.3. RIGHTS OF CORPORATION.

2.2. RIGHT OF ACCESS.

(b) two (2) years following the date of original issuance by the California Department of Real Estate of its Final Subdivision Public Report covering the Project.

As a Member of the Corporation, each Owner is obligated to promptly, fully and faithfully comply with and conform to the Articles, this Declaration and the Bylaws.

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The Deel arant, for each Residential Lot owned within the Project, hereby covenants, and each Owner of any Resident i a 1 Lot by acceptance of a

ARTICLE 3. - COVENANT FOR ASSESSMENT TO CORPORATION 3.1. OBLIGATION OF ASSESSMENT.

In discharging their duties and responsibilities, the Board acts on behalf of and as representative of the Corporation which acts on behalf of and as representative of the Owners, and no Member thereof shall be individually or personally liable or obligated for performance of such duties or responsi­ bilities unless he fails to act in good faith.

2.7. NO PERSONAL LIABILITY OF BOARD MEMBERS.

For the purpose of performing the maintenance of the Common Mainte­ nance Area or for any other purpose reasonab 1 y related to the performance by the Board of its responsibilities under this Declaration, the Corporation's agents or emp 1 oyees sha 11 have the right,. after reasonable notice to the Own­ er, to enter upon any Residential Lot or upon any portion of the Common Mainte­ nance Area to effect emergency repairs. For other than emergency repairs, the Corporation's agents or employees shall have the right to enter upon any Resi­ dential Lot or any portion of the Conunon Maintenance Area to effect repairs, improvements, replacements or maintenance which the Corporation, after approv­ al by a majority vote of the Board, reasonably deems necessary. Such entry shall be made with as little inconvenience to the Owner as possible and any damage caused shall be repaired by the Corporation. Further, such entry for other than emergency repairs shall be made only after not less than three (3) days' notice has been given to the Owner.

2.6. RIGHT TO ENTER.

.. It is provided, however, that the provisions of the preceding para­ graph expressly do not apply to charges imposed against an Member consisting of reasonable late payment penalties for delinquent assessments and/or charges to reimburse the Corporation for the loss of interest and for costs reasonably

incurred (inc1uding attorneys' fees) in its efforts to collect de1inquent assessments as more fully described in Article 3 herein.

As set forth in Section 7341 of the California Corporations Code (or any successor statute or law), no suspension or monetary pena 1 ty described in the preceding Section shall .be effective unless a Member receives fifteen (15) days' prior written notice of the proposed action and the reasons therefor and is given an opportunity to be either heard orally or in writing before the Board not less than five (5) days before the proposed effective date of the action. The notice required hereby may be given by any method reasonably calculated to provide actual notice in accordance with the Delivery.of Notice provisions of Article 13.

2.5. NOTICE AND HEARING.

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If the Board determines that the estimated total amount or runds necessary to defray the common expenses of the Corporation far a given fiscai year is or will become inadequate ta meet expenses for any reasons, including, but not limited to, unanticipated delinquencies, costs of construction, unex­ pected repairs or replacement of the Common Maintenance Area, the Board shall determine the approximate amount nec2ssary to defray such expenses and, except as provided below, said amount shal l become a special assessment. The Board may, in its discretion, prorate such spec+al assessment over the remaining

3.5. SPECIAL ASSESSMENTS.

The Association shall maintain and revise as necessary, an assess­ ment roll for every Residential Lot subject to assessment hereunder, reflect­ ing the name and address of each Owner, and other data necessary to levy as­ sessments.

3.4. ASSESSMENT ROLLS.

Regular assessments and sneci a 1 assessments sha 11 be 1 evi ed at a uniform rate for all Residential Lots and may be collected on a monthly basis, or otherwise, as determined by the Soard.

3.3. RATE OF ASSESSMENTS.

The assessments levied by the Corporation shall be used exclusively to promote the recreation, health, safety and welfare of all the residents in the Project and far the improvement and maintenance of the Common Maintenanca Area for the common good of the Projec:.

3.2. PURPOSE OF ASSESSMENTS.

All assessments, together with interest, costs, 1ate charges and reason ab 1 e attorneys' fees, s ha 11 be a charge on the Resident i a 1 Lot and sh a 11 be a continuing 1 ien upon the Residential Lot against which each such assess­ ment is made, the lien to become effective upon recordation of a Notice of Delinquent Assessment~ as provided herein. Each such assessment, together with interest, costs, late charges and reasonable attorneys' fees, shall al so be the personal obligation of the person who was the Owner of such Residential Lot at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to an Owner's successors in tit1e as their personal obligation unless expressly assumed by them.

{b) Special Assessments which shall be established and collect­ ed as hereinafter provided.

deed therefor, whether or not it shall be so expressed in such Deed, is deemed to covenant and agree to pay to the Corporation: (a} Regular Assessments, which shall include an adeauate re­

serve fund for 1 ong-tar:n or peri ad i c maintenance, repair and replacement of the Common Maintenanca Area; and

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(2) An extraordinary expense necessary to repair or main­ tain the Common Maintenance Area where a threat to personal safety is discovered;

(3) An· extraordinary expense necessary to repair or main­ ta in the Common Maintenance Area that could not have been reasonably foreseen by the Board in preparing and di st ri but i ng the proforma operating budget described in the By 1 aws in accordance with Civil Code Section 1365. Provided, however, that prior to the imposition or collection of an assessment under this Section, the Board shall pass a resolution containing written find­ ings as to the necessity of the extraordinary expense involved and why the expense was not or could not have

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

(a) ihe Board of Directors of the Corporation shall not impose or collect an assessment, penalty, or Jee that exceeds the amount necessary for the purpose or purposes for which it is levied.

( b) Fram and after January 1st of the year immediate 1 y fo 11 owing the conveyance of the first Residential Lot to an Owner, the Board of Dt rec­ tors of the Corporation may not impose, except as provided herein, a regular assessment that is more than twenty percent (20%) greater than the regular assessment for the Corporation's preceding fiscal year or impose special as­ sessments which in the aggregate exceed five percent (5%) of the budgeted gross expenses of the Corporation for that fiscal year without the approval of Owners constituting a quorum casting a majority of the votes at a meeting or election of the Corporation conducted in accordance with Chapter 5 (corranendng with Section 7510) of Part 3 of Division 2 of Title I of the Corporations Code and Section 7613 of the Corporations Code. These provi s i ans, however, sha 11 not limit assessment increases necessary for the fo11owing "emergency situa­ tions:"

3.7. LIMITATIONS ON ASSESSMBITS.

Assessments which would nonna1ly become due an Residential Lots, but which Lots are owned by the Corporation by virtue of the Corporation having acquired such Lots through foreclosure, sha11 be deemed to be Common Expenses collectible from all of the remaining Residential Lots in the same proportion that each Lot bears to the others less the number of Residential Lots awned by the Corporation.

3. 5. RESIDBITIAL LOTS NOT SUBJECT TO ASSESSMENTS.

months of the fiscal year or levy the assessment immediate1y against each Residential Lot. Special assessments shall - be levied on the same basis as regular assessments.

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Any assessment made in accordance with this Declaration shall be a debt of the Owner . of a Resident i a 1 Lot from the ti me the assessment is due. At any time after any assessments levied by the Corporation affecting any Residential Lot have become de1 inquent, the Board may file for recording in the Office of the San Diego County Recorder a Notice of Delinquent Assess­ ment as to such Residential Lot, which notice shall state all amounts which have become delinquent with respect to such Resident i a 1 Lot and the costs (including attorneys' fees), late penalties and interest which have accrued thereon, the amount of any assessments relating to such Residential Lot which is due and pay ab l e a 1 though not de 1 i nquent, a description of the Resident i a 1 Lot with the name of the record or reputed record Owner of such Res; dent i a 1 Lot, and the name and address of the trustee authorized by the Corporation to

3.10. EFFECT OF NON-PAYMENT OF ASSESSMENTS.

Any assessment not paid within fifteen (15) days after the due date sha 11 be de 1 i nquent and sha 11 be subject to a reason ab 1 e 1 ate pen a 1 ty not exceeding ten percent (10%) of the delinquent assessment or ten dollars ($10.00), whichever is greater, and shall bear interest in all sums including the delinquent assessment, reasonable costs for collection and late penalties at an annual percentage not exceeding twelve percent (12%) commencing thirty (30} days after the assessment becomes due, or at the maximum legal rate as defined in the California Civil Code Section 1366, as it may be amended from time to time.

The regular assessments provided for herein shall commence as to all Residential Lots described in Exhibit •A• attached hereto on the first day of the month following the conveyance of the first Residential Lot to an Owner under authority of a pub 1 ic report. The first regular assessment sha 11 be adjusted according to the number of months remaining in the calendar year. The Board shall determine and fix the amount of the regular assessment against each Residential Lot at least thirty· (30) days in advance of each regular assessment period. Written notice of the regular assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board.

3.9. LATE PENALTIES; INTEREST ON ASSESSMENTS.

3.8. COMMENCEMENT OF ASSESSMENTS; DUE DATES; NOTICE.

(d) Any action authorized under this Section shall be taken at a meeting called for that purpose, written notice of which shall be sent to all Members not less than ten (10) days nor more than ninety (90) days in advance of the meeting.

(c) For purposes of this Section, "quorum" is defined as mare than fifty percent (50%) of the Owners (including the Oeclarant) of the Corpo­ ration.

been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the members with the Notice of Assessment.

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When a Notice of De 1 i nquent Assessment has been recorded, it sha 11 constitute a 1 ien on that respective Residential Lot and shall be prior and superior to all other liens except (i) all taxes, bonds, assessments and other levies which, by law, would be superior thereto, and (ii) the lien or charge of any first Mortgage of record. Sa 1 e or transfer of any Resident i a 1 Lot shall not affect the assessment 1 ien. However, the transfer of any Residen­ tial Lot pursuant to a "power-of'-sal e" or judicial foreclosure of a First Mortgage shall extinguish the lien of or obligation for such assessments as to payments which became due prior to the foreclosure transfer. No sale or trans­ fer shall relieve such Residential Lot from lien rights for any assessments thereafter becoming due.

PRIORITY OF THE LIEN. 3.12.

Each assessment 1 i en may be foreclosed as and in the same manner as the foreclosure of a mortgage upon real property under the laws of the State of California, or may be enforced by sale pursuant to Sections 2924, 2924(b), 2924(c) and 1367 of the California Civil Code, or any successor statute or law, and to that end, the right to enforce the lien by sale is hereby con­ ferred upon the Corporation and its trustee designated in the Notice of Delinquent Assessment, or a trustee substituted pursuant to California Civil Code Section 2934a. The Corporation, acting on behalf of the Residential Lot Owners, shall have the power to bid -for the Residential Lot at a foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Suit to recover a money judgment for unpaid assessments, costs, late penalties and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same.

FORECLOSURE PROCEEDINGS. 3.11.

enforce the lien, if by nonjudicial foreclosure as provided below. Such no­ tice shall be signed by the President or Vice President and Secretary or Assis­ tant Secretary of the Corporation. Inunediately upon recording of any notice of delinquency pursuant to the foregoing provisions of this Section, the amounts delinquent, as set forth in such notice, together with the costs (in­ cluding attorneys' fees), late penalties and interest accruing thereon, shall be and become a lien upon the Residential Lot described therein, which lien sha11 al so secure all costs ( including attorney's fees), 1 ate penalties and interest accruing thereof. When a notice of assessment has been recorded, such assessment shall constitute a lien on each respective Residential Lot prior and superior to all other liens, except (i) all taxes, bonds, assess­ ments and other levies which, by law, would be superior thereto, and (ii) the l i en or charge of any first Mortgage of record. In the event the de l i nquent assessments and all other assessments which have become due and payable with respect to the same Residential Lot together with all costs (including attor­ neys' fees)t late charges and interest which have accrued on such amounts are fully paid or otherwise satisfied prior to the completion of any sale held to foreclose the lien provided for iri this Article, the Board shall record a further notice, similarly signed, stating the satisfaction and releasing of such lien.

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Each Residential Lot shall be improved, used and occupied for pr+­ vate, single-family dwelling purposes only, and no portion thereof, nor the Common Maintenance Area, shall be used for any commercial purpose whatsoever; provided, however, Deel arant may use any of the Lots owned or 1 eased by De· clarant as model homes and sales offices during that period of time commencing when the . Residential Lots are first sold or offered for s a 1 e to the pub 1 i c, and ending (1) when all the Residential Lrits in the Project are sold and con· veyed by Dec l ar-arrt to separate Owners thereof; or, (ii) three (3) years from the date of sale of the first Residential Lot in the Project, whichever shall first occur.

ARTICLE 4. · USE RESTRICTIONS 4.1. USE OF RESIDENTIAL LOTS.

The Board sha 11 es tab 1 i sh- no fewer than two ( 2) separate accounts ("Maintenance Accounts"), into which shall be deposited all monies paid to the Corporation and from which disbursements shall be made, as provided herein, in the performance of functions by the Corporation under this Declaration. The Maintenance Accounts sha 11 be estab l i shed as separate trust savings or trust checking accounts at any banking or savings institution insured by the Federal Deposit Insurance Corporation. The Maintenance Accounts shall include: (i) an Operating Account for current Common Expenses of the Corporation, (ii) a Reserve Account for rep 1 a cements, painting and repairs of the Common Mai nts­ nance Area, and (iii) any other accounts which the Board may establish to the extent necessary under the provisions of this Declaration. The Board shall not commingle any amounts deposited into any of the Maintenance Accounts with one another. Nothing contained herein shall limit, preclude or impair the establishment of additional Maintenance Accounts by the Declarant so long as the amounts assessed to, deposited into, and disbursed from any such Account are earmarked for specified purposes authorized by the Declaration.

3.15. ASSOCIATION FINANCIAL ACCOUNTS.

No Owner may exempt himself from personal liability for assessments levied by the Corporation, nor release the Residential Lot owned by him from the liens and charges hereof by abandonment of his Residential Lot.

PERSONAL LIABILITY OF OWNER. 3.14.

In the event that any taxes are assessed against the Corporation, rather than against the individual Residential Lots, said taxes shall be added to the annual assessments, and, if necessary, a special assessment may be levied against the Residential Lot in an amount equal· to said taxes, to be paid in two (2) installments, thirty (30) days prior to the due date of each tax installment.

3.13. TAXATION OF CORPORATION.

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No signs, placards, decals or other similar objects, shall be erect­ ed or displayed to the public view on any Lot without the prior written permis­ sion of the Board; provided however, each Owner shall have the right to erect or display (a) one (l} sign of customary and reasonable dimensions, not to exceed 4 square feet in area, advertising a Residential Lot or Dwelling for sale or lease, and (b) one {l} sign not to exceed 1' x 1' in size·

4.6. SIGNS.

No Residential Lot or Owe 11 i ng sha 11 be used in such manner as to obstruct or interfere with the enjoyment of occupants of other such areas or~ annoy them by unreasonable noise or otherwise, nor shall any nuisance be com­ mitted or permitted to occur in any Dwelling.

4.5. INTERFERENCE OF OTHER OCCUPANTS.

An Owner may keep and maintain in his Dwelling domesticated pets such as dogs, cats or other usual and ordinary household pets, provided that they are not kept, maintained or bred for any commercial purposes. The forego­ ing notwithstanding, no pets may be kept on the Project which result in ah annoyance or are obnoxious to other Owners or occupants. Dec 1 a rant or any Owner may cause any un 1 eashed dog found within the Project to be removed by Declarant (or any Owner} to a pound or animal shelter under the jurisdiction of the City of Oceanside, or the County of San Diego by calling the appro­ priate -authorities, whereupon the Owner may, upon payment of all expenses connected therewith, repossess the dog. No dog whose barking disturbs other Owners or occupants shall be permitted to remain on the Project. Owners shall prevent thsfr pets from soiling all portions of the Project where other per­ ·sons customarily walk and shall promptly clean up any mess left by their pets.

4.4. PETS.

No Lot or any improvements situated thereon shall be occupied or used for any purpose or in any manner which shall cause such improvements to be uninsurable against loss by fire or the perils of the extended coverage endorsement to the California Standard Fire Policy form, or cause the rate of insurance to increase, or cause any such policy or policies representing such insurance to be cancelled or suspended, or the company issuing the same to refuse renewal thereof.

4.3. INSURABILID.

Each Owner shall have the right ta lease his Dwelling, provided that such 1 ease is in writing and provides that the tenant sha 11 be bound by and obligated to the provisions .of this Declaration, the Bylaws and the failure to comply with the provisions of these documents shall be a default under the lease. No Owner sha 11 lease his Owe 11 i ng for transient or hote 1 purposes. Any lease which is either for a period of less than thirty (30) days or pursu­ ant to which the Lessor· provides any services normally associated with a ho­ tel, shall be deemed to be for transient or hotel purposes.

4.2. LEASE OF DWELLING.

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No noxious or offensive activity· shall be carried on upon any Lot, nor shall anything be done therein which may be or become an annoyance· or nuisance to the other Owners other than construction or repair of improvements made at the Board's instruction, or at Dec1arant' s instruction. Except as otherwise provided herein, nothing shall be altered or constructed in or re· moved from the Common Maintenance Area except upon the written consent of the Board or an architectural committee appointed by the Board. A 1 T equipment, garbage cans, wood piles or storage piles shall be kept screened and concealed from view of neighboring Dwellings and streets. No fences, hedges or walls shall be erected or maintained upon a Residential Lot except such as are in­ stalled in accordance with the initial construction of the buildings located on the Residential Lot or as provided· by the Board. No exterior clothes lines

OFFENSIVE ACTIVITIES AND CONDITIONS. 4.10.

Except as otherwise specifically provided herein, nothing herein contained shall give the Owner the right to paint, decorate, remodel, land· scape or adorn any part or parce 1 of the Cammon Maintenance Area without the written consent of the Board.

4.9. REMODELING THE COMMON MAINTENANCE AREA.

All outdoor 1 ighting shall be properly shielded and directed so as to prevent glare on surrounding properties.

4.8. EXTERIOR LIGHTING.

There shall be no outside television, satellite or radio antennas, masts, poles or f1ag poles constructed, installed or maintained on any Residen­ t i a 1 Lot for any purpose whatsoever with out the prior written consent of the Board and necessary approva 1 s and permits from the appropriate 1 oca 1 govern· ment agency.

4. 7.. ANTENNAS, FLAG POLES, ETC.

advertising or noticing the existence of a security system. Such approved signs sha 11 not be attached to the outside of a Dwe 11 i ng or fence. Approved signs may be displayed in a window, or staked in the yard. Reasonable window dressings placed in observance of national or religious holidays shall not be considered signs for purposes of this Section.

Anything contained in this Declaration to the contrary notwithstand· ing, Declarant shall have the right to install and maintain during the sales period set forth above, such signs, poles and advertisements as it deems appro· priate in connection with its sales program for the sale to the public of Residential Lots, provided such signs shall comply with the local zoning ordi· nances, and that they do not unreasonably interfere with the right of use and quiet enjoyment of the Residential Lot Owners.

Any of the foregoing notwithstanding, all signs shall conform with applicable local governmental ordinances.

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No trailer, recreational vehicle, camper, boat, mobile home, motor home, house car, commercial veh i c 1 e, truck over 3/ 4 ton, i noperab 1 e automo­ bile, or similar equipment shall be permitted to remain upon any Residential Lot other than temporarily for purposes of loading, unloading or cleaning. Commercial vehicles shall not include sedans or standard size vans and pickup trucks which are used both for business and personal use, provided that any signs or markings of a commercial nature on such vehicles shall be unobtrusive and inoffensive as determined by the Board. No noisy or smoky vehicles nor any unlicensed vehicles shall be operated on any Lot. Trailers or temporary structures for use incidental to the initial construction of the Project or the initial construction of property owned by Declarant or Oeclarant's

VEHICLE RESTRICTIONS. 4.13.

(b) beautification thereof and providing privacy to the residents of the Project through landscaping and improvementt.

No part of the Common Maintenance Area shall be obstructed so as to interfere with its use for the purposes herei nabove permitted, nor sha 11 any part be used for storage purposes, nor in any manner which shall increase the rate of which insurance against loss by fire, or the perils of the extended

.coverage endorsement to the California Standard Fire Pol icy form, or bodily injury, or property damage liability insurance covering such area and improve­ ments situated thereon may be obtained, or cause the same to be uninsurable against such risks or any policy or policies representing such insurance to be cancelled or suspended or the company issuing the same to refuse renewal there­ of.

Except as otherwise provided herein, the Common Maintenance Area shall be improved and used only for the following purposes:

(a) recreational use by the Owners and occupants of a Dwelling and their guests;

USE OF COMMON MAINTENANCE AREA. 4.12.

No power equipment, other than equipment employed for personal use, nor commercial hobby shops nor car overhaul or maintenance (other than emergen­ cy or minor maintenance work) shall be permitted on the Residential Lot other than within a garage, except with prior written approval of the Board. The foregoing shall not be deemed to prevent the washing or polishing of motor vehicles together with those activities normally incident to such activity. Approval shall not be unreasonably. withheld and in deciding whether to grant approval, the Board shall consider the effects of noise, air pollution, dirt or grease, fire hazard, interference with radio or television reception and similar objections.

CAR MAINTENANCE ANO POWER EQUIPMENT. 4.11.

shall be erected or maintained, and there shall be no outside drying or 1aun­ dering of clothes except in areas which may be approved by the Board.

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Each Owner sha 11 1 andscape any portions of their respective Lot which is not landscaped by Oeclarant within one hundred and eighty (180) days after the date of the conveyance of such Residential Lot to said Owner. The landscaping on each Residential Lot shall be ma i nt ai ned in an attractive and well-maintained condition to the highest standards in the area surrounding the Project.

LANOSCAP ING. 4.19.

No Residential Lot sha11 be further subdivided nor shall less than all of any such Residential Lot be conveyed by an Owner thereof.

RESTRICTIONS ON FURTHER SUBDIVISION. 4.18.

No solar energy system or equipment, or any portion thereof, shall be installed without the prior written approval of the Board or any architec­ tural committee appointed by the Board (except for solar energy systems in­ stalled by Declarant).

SOLAR ENERGY SYSTEM. 4.17.

Each Owner shall be legally liable to the Corporation for all damag­ es to the Common Maintenance Area or to any improvements thereon caused by such Owner, his licensee(s) or any occupant of such Owner's Dwelling, as such liability may be determined under California law. Each Owner shall be respon­ sible for compliance with the provisions of the Declaration, Articles and Bylaws by his guests, lessees and all occupants of Dwelling, and shall, after written notice and an appointment for a hearing, pay the fines and penalties assessed pursuant hereto for any violation by his guests, lessees and occu­ pants of his Dwelling.

LIABILITY FOR DAMAGE TO COMMON MAINTENANCE AREA. 4.16.

No well or septic tank shall be constructed in the Project except as approved by the Board.

WELLS; SEPTIC TANKS. 4.15.

No Owners or their tenants shall park more than three (3) vehicles in the Project at any one time. Garages shall be used to park sedans, stan­ dard sized pickup trucks or standard sized vans only; provided that such vehi­ cle may be fully enclosed within the Garage. Garages shall not be converted into any use (such as recreational room) that would prevent its use as parking space for the number of vehicles the garage was designed to contain. Except for purposes of ingress or egress, all garage doors shall remain closed.

PARKING. 4.14. '·~•U""_ ...

designees and situated in the vicinity of the Project may be maintained within the Project, but shall be promptly removed on completion of all initial construction and all initial sales.

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The Architectural Committee shall consist of at least three (3) Members. Deel arant may appoint all of the original members of the Committee and all replacements until the first anniversary of the issuance of the origi­ nal final public report for the Project. The Declarant reserves to itself the

5.5. ARCHITECTURAL COMMITTEE.

No permission or approval shall be required to repaint in accordance with Oeclarant's original col~r scheme or as previously approved by the Commit­ tee or the Board, or to rebuild in accordance with plans and specifications previously approved by the Board or its committee. Nothing contained herein shall be construed to limit the right of an Owner to paint the interior of his Dwelling any color desired. The provisions of this Article shall not apply to the initial construction by Dec1arant of the Project improvements, and neither the Board nor any Cammi ttee sha 11 have any authority or right to approve or di sapprove thereof.

5.4. EXEMPTED FROM REVIEW.

Complete pl ans and specifications showing the nature, kind, shape, color, size, height, materials to be used and location of any proposed improve­ ments, alterations or landscaping shall be submitted to the Board or to the Architectural Committee for approval as to quality of workmanship, design and harmony of external design with existing structures, and as to location in relation to surrounding structures, topography, and finish grade elevation. In the event the Board or Committee fails to approve or disapprove plans and specifications within thirty (30) days after the same have been submitted to it, approval will not be required and the related covenants shall be deemed to have been fully complied with.

5.3. PLAN SUBMISSION, REVIEW.

No building, fence, wall, pool, spa, obstruction, outside or exteri· or wiring, balcony, screen, patio, patio cover, tent, awning, carport, carport cover, trellis, improvement or structure of any kind, or exterior alteration or room addition shall be commenced, erected, pl aced, painted or maintained upon the Project, nor shall any alteration or improvement of any kind be made thereto, until the same has been approved in writing by the Board, or by an Architectural Conunittee.

5.2. RESTRICTED ACTIVITY.

The powers and duties set forth in this Article shall be vested in, and exercised by, the Board of Directors of the Corporation unti 1 such time that an Architectural Committee is formed as provided herein.

ARTICLE 5. - ARCHITECTURAL ANO DESIGN CONTROL 5.1. GENERAL.

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,;,o.· ... ,. The Architectural Committee may, from time to time and in its sole discretion, adopt, amend and repeal, by unanimous vote, rules and regulations to be known as "Architectural Rul es ." ·Said Architectural Rules shall inter­ pret and implement the provisions of this Article by setting forth the stan­ dards and procedures for Architectural Committee review and guidelines for architectural design, placement of buildings, landscaping, color schemes exte­ rior finishes and materials and similar features which are recommended for use in the Project; provided, however, that said Architectural Rules shall not be in derogation of the standards required by this Declaration.

5.9. ARCHITECTURAL RULES.

The members of the Architectural Committee shall receive no compensa­ tion for serJ.Ji ces rendered, other than reimbursement by the Corporation for ·expenses incurred by them in the performance of their duties hereunder.

5.8. COMPENSATION.

The Architectural Committee shall have the right to establish a fee for the review· and approval of plans and specifications which must be submit· ted to the Arch i tectura 1 . Cammi ttee pursuant to the pro visions of this Art tc1e or the Bylaws, which shall be reasonably related to the duties performed.

5.7. FEE FOR REVIEW.

The Architectural Committee shal 1 meet from time to time as neces­ sary to properly perform its duties hereunder. The vote or written consent of the majority of the Architectural Committee shall constitute an act by the Architectural Committee unless the unanimous decision of its members is other· wise required by this Declaration.

5.6. MEETINGS.

Members appointed to the.Architectural Committee by the Board shall be from the membership of the Corporation. Members appointed to the Architec­ tural Committee by the Declarant need not be members of the Corporation. A majority of the Architectural Committee may designate a representative to act for it. In the event of death or resignation of any member of the Committee, the successor shall be appointed by_the person, entity or group which appoint- . ed such member until Oeclarant no longer has the right to appoint any members to the Committee, and thereafter the Board shall appoint such a successor.

power to appoint a majority of the members to the Committee until ninety per­ cent (90%) of all the Lots in the Project have been sold or until the fifth anniversary of the issuance of the final public report for the Project, which· ever first occurs. After one ( 1) year from the- date of the issuance of the original public report for the Project, the Board shall have the power to appoint one {l) member to the Architectural Committee· until ninety percent (90%) of all of the Lots in the development have been sold or until the fifth anniversary date of the issuance of the final public report, for the Project, whichever first occurs. Thereaftert the Board shall have the power to appoint and remove all of the members of the Architectural Committee.

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Neither the Corporation, the Board nor the Architectural Committee shall be responsible for any non-compliance with any governmental law, rule or regulation of any building or other structure erected, constructed, installed, p l aced, altered or maintained in accordance with or pursuant to any plans and specifications approved by the Corporation, the Board or the Architectural ·

5.13. NON-COMPLIANCE WITH LAWS.

In the event of a violation of any of the provisions of this :Artf­ cle, by any Owner including, without limitation, failure of any Owner to com­ ply with the written directive or order from the Architectural Committee, the Architectural Committee shall have the right and authority, after proper no-

. tice and the opportunity for a hearing, to perform the subject matter of such . directive including, if necessary, the right to enter the Lot where a viola­ tion of these restrictions exists, and the cost of such performance shall be

· charged to the Owner of the Lot in question. Such costs shall be due within five (5) days after receipt of written demand therefore, and shall bear inter-· est at the maxi mum rate a 11 owed by law. Said costs may be recovered by the Architectural Committee together with such interest and reasonable attorney's fees and costs in an action at law against such Owner.

ENFORCEMENT. 5.12.

Neither the Architectural Committee nor any member thereof shall be 1 iable to· the Corporation or to any Owner for any damage, loss or prejudice suffered or claimed on account of: (a) the approval or disapproval of any plans, drawings and specifications, whether or not defective; (b) the construc­ t 1 on or performance of any work, whether or not pursuant to approved pl ans, drawings, and specifications; (c) the development of any property within the neighborhood; or (d) the execution and filing of an estoppal certificate wheth­ er or not the facts therein are correct; provided, however, that such Architec­ tural Committee member has acted in good faith on the basis of such informa­ tion as may be possessed by him.

LIABILITY. 5.11.

Within a reasonable time after written· demand is delivered to the Architectural Committee by any Owner, and upon payment to the Corporation of a reasonable fee, if any, the Architectural Committee shall provide the Owner with an estoppe1 certificate certifying that as of the date thereof, either: (a) all improvements made and other work completed by said Owner comply with this Declaration, or (b) such improvements or work do not so comply, in which event the certificate shall also identify the non-complying improvements or work and set forth with particularity the basis of such non-compliance. Any purchase from the Owner, or from .anyone deriving any interest in said Lot through him, shall be entitled to rely on said certificate with respect to the matters therein set forth, such matters being conclusive as between the Corpo­ ration, Dec 1 a rant and Owners and such persons deriving any interest through them.

ESTOPPEL CERTIFICATE. 5.10.

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(d) Any property owned by the Association, lighting fixtures and utility, sewer or drainage systems not maintained by a public entity, utility company, or improvement district, where such systems are used by more than one Owner.

The landscaping on all medians within the Project site, adjacent parkways and along College Boulevard and Mission Avenue, including sidewalks and other public right of ways; and ·

(c)

The Corporation shall be responsible for the maintenance and repair of the following:

(a) Common Maintenance Area landscaping and gardening, including the proper maintenance and periodic replacement, when necessary, of the trees, ground cover and irrigation system originally installed by Oeclarant;

(b) All common open space, fences and walls, including those on the Common Maintenance Area;

6.2. RESPONSIBILITY· OF CORPORATION.

The Corporation and all Owners are hereby required to maintain the areas described in this Article. For purposes of this Article "maintenance" shall include. without limitation the painting, weatherproofing and cleaning of the items set forth below to keep a clean, safe and sanitary condition necessary to preserve the attractive appearance of each Dwelling and Residen­ tial Lot and protect the values thereof. Failure of any Owner or the Association to maintain the areas provided herein may subject such party to penalties imposed by the City of Oceanside.

ARTICLE 6. - RESPONSIBILITIES OF MAINTENANCE 6.1. GENERAL.

Prior to commencing any a 1 terat ion or improvements approved by the Architectural Committee, the Owner shall comply with all appropriate governmen­ tal laws and regulations. Approval by the Committee shall not be considered to satisfy the appropriate approvals that may be required by any governmental entity with appropriate jurisdiction. The Corporation shall not be obligated to enforce the provisions of this Section. An Owner's failure to obtain such governmental approval may subject such owner to certain penalties imposed by the governmental entity, notwithstanding the approval of the Architectural Committee, which penalties shall be the responsibility of such Owner.

5.14. APPROVAL BY CITY.

Committee or· any defect i-n any conditions or requirements they may have im­ posed with respect thereto.

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Except for those portions of the Project which the Corporation is required to maintain and repair, each Residential Lot Owner shall be solely responsible for causing the maintenance and repair of such Owner's Lot and all improvements and landscaping thereon, including all interior maintenance and repair, pest control, and all . air-conditioning, plumbing, electrical and heating systems and interior structural components, as well as all gas, sewer and water lines located in or under his Residential Lot so long as those systems are used exclusively by such Owner and not in common.

Each Owner shall also maintain and repair any fences, walls or slopes located on such Owner's Lot; provided, however, the cost of maintenance and repair of any fence or wall which separates Residential Lots, and any shared driveway, shall be shared by the respective Lot Owners.

Maintenance performed hereunder ·shall preserve an attractive and neat condition, consistent with the highest standards in the area surrounding the Project. The foregoing notwithstanding, no Owner shall allow the condition of such Owner's Lot to pose a threat to the health or safety of other Owners in the Project·. No rubbish or debris of any kind shall be placed or permitted by an Owner to accumulate upon or adjacent to any Lot, so as to render such property or portion thereof unsanitary, unsightly, offensive or detrimental to other residents.

6.3. OWNER RESPONSIBILITY.

If the Corporation incurs any maintenance or repair costs because of the willful or negligent act or omission of any Owner or the Owner's agents, occupants, or invitees, and such cost was not covered by insurance maintained by the Corporation, the Corporation shal 1 charge the responsible Owner who immediately shall pay the charge to the Corporation together with interest thereon at the rate of twelve percent (12%) per annum (but not in excess of the maximum interest rate authorized by law) from the date the cost was incur­ red by the Corporation until the date the charge is paid by the Owner. If the Owner disputes the charge, the Owner shall be entitled to a notice and a hearing as provided in Article 2 her~in before the charge may be collected ..

The Corporation shall have the right to enter onto any Residential Lot as may be necessary for the.construction, maintenance or emergency repair of the Common Maintenance Area or, if necessary, for the benefit of the Owners in common.

The maintenance required hereunder shall not be less than that required for normal care including irrigation of the landscaping, repair and replacement of plant materials and irrigation systems as necessary, and genera 1 c 1 eanup of the 1 ands caped areas, open areas, wa 1 kways, wa 11 s and fences.

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Each wall or fence which is constructed as a part of the original construction of a Dwelling and any part which is placed on the dividing line· or on any easement boundaries between the Residential Lots and either is used

7.1. GENERAL.

ARTICLE 7. - PARTY WALLS

Provided the responsibility herein is delegated to the Corporation, . it may cause the temporary, summary remova 1 of any occupant of a Owe 11 i ng for such periods and at such times as may·be necessary for prompt, effective treat­ ment of such pests or organisms. The costs of temporary relocation during such maintenance or repair shall be paid by the Lot Owner affected. The Corpo­ ration sha 1 l give notice of the need to temporari 1 y vacate a Owe 11 i ng to the record owners and occupants not 1 ess than fifteen (15) days nor more than thirty (30) days prior to the date of the temporary relocation. The notice shall state the reason for the relocation, the date and time of the beginning of treatment, the anticipated date and time of termination of treatment and that the occupants will be responsible for their own accommodations during the relocation. Any such notice shall be given in accordance with the Delivery of· Notice provisions in Article 13 herein, provided that an additional notice sha 11 al so be given to any occupant of the Owe 11 i ng if such occupant is not the record owner.

Each Owner shall be responsible for the maintenance and repair of their respective Owe 11 i ngs as required to contra 1 the presence of or damage caused by wood-destroying pests or organisms; provided, however, upon the vote of a majority of the voting power of the Corporation, this responsibility may be delegated to the Corporation, which in turn may levy a special assessment to recover such costs.

6.6. WOOD-DESTROYING PESTS OR ORGANISMS.

In the event an Owner of. any Lot shall fail to maintain his Lot and the improvements thereon as required herein, the Corpora ti on' s agents may, after notice and a hearing as provided in Article 2 herein, enter the Lot and perf arm the necessary maintenance. The cost of such maintenance shall immediately be paid to the ·corporation by the Owner of such Lot, together within interest at the rate of tw~lve percent (12%) per annum (but not to exceed the maximum interest rate authorized by law) from the date the cost was incurred by the Corporation until the date the cost is paid by the owner.

6.5. FAILURE TO MAINTAIN.

Any provision contained in an amendment to this Declaration which provision would relinquish or attempt to relinquish the responsibility for the maintenance of any common open space, including the Common Maintenance Area, shall be invalid and have no force and effect without the specific approval of the City Council of the City of Oceanside. Such approval shall be part of the amending document described hereinafter.

6.4. AMENDMENT OF RESPONSIBI.LITY.

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In the event of a dispute between Owners with respect to a party wall t or under the provisions of this Article the matter shall be submitted to arbitration under the rules of the American Arbitration Association.

7.7. ARBITRATION.

Any other provision of this Article notwithstanding, an Owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole costs of furnishing the necessary protection and

. repair against such e 1 ements.

7.6. WEATHERPROOFING.

In addition to meeting the other requirements of this Declaration and of any building code or similar regulation or ordinance, any Owner propos­ ing to modify, make additions to or rebuild his Dwelling in any manner which requires the extension or other alteration of any party wall shall first ob­ tain the written consent of the adjoining Owner and the Corporation.

7.5. ALTERATIONS.

In the event any such party wall is damaged or destroyed by some cause (including ordinary wear and tear anct·deterioration from lapse of time), other than the act of one of the adjoining Owners, his tenants, guests or family, both such adjoining Owners shall proceed forthwith to rebuild or re­ pair the same to as good condition as formerly existed, at their joint ex­ pense, to such extent not covered by insurance.

7.4. DAMAGE BY OTHER CAUSE.

.. The cost of reason ab 1 e maintenance of a party wa 11 sha 11 be shared

by the Owners who make use of the wall in proportion to such use.

7.3. SHARING OF MAINTENANCE.

In the event any such party wall is damaged or destroyed through the act of one adjoining Owner or any of his agents, guests, invitees, tenants or members of his family (whether or not such act is negligent or otherwise culpa­ ble) so as to deprive the other adjoining Owner of the full use and enjoyment of such wa 11 , then the first of the aforementioned Owners sha 11 forthwith proceed to rebuild and repair the same to as good a condition as formerly existed, without cost to the adjoini~g Owner.

in conunon with the Dwelling on the adjacent Lot or abuts against a similar · wall on the adjacent Lot shall constitute a party wall, and with respect to such wa11, each of the adjoining Owners shall assume the burdens and be enti­ tled to the benefits of this Declaration, and to· the extent not inconsistent with this Article, the general rules of law regarding party walls and liabil­ ity for property damage due to negligence or wil 1 ful acts or omissions shall be applied thereto.

7.2. DAMAGE BY ONE OWNER.

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. (a) A master policy of insurance with glass coverage, if applica- ble, and extended coverage endorsement for the full insurable value of all of

the improvements within the Conunon Area. The form and content of such policy must be satisfactory to all institutional first trust deed lenders and shall meet the maximum standards of th~. various institutional first trust deed lenders whose loans encumber any of the Residential Lots.

(b) A general, comprehensive liability and property damage insur- ance policy with cross liability endorsement, if available, in an amount not 1 ess than five hundred thousand dollars ($500,000), insuring the Corpora­ tion, its agents, the Declarant and the Owners and occupants of the Residen­ tial Lots and their respective family members, guests, invitees and agents against any liability incident to ownership or use of the Conunon Area or any other Corporation-owned or maintained real or persona 1 property, arising out of any single occurrence. Such coverage sha 11 inc 1 ude water damage 1 i ability, liability for non-owned and hi red automobi 1 es and 1 i abi 1i ty for property of others, and such other risks as are customarily covered with respect to simi­ lar real estate developments in the area of the Project. The general liabili­ ty policy shall also include such provisions as may be required by the provi­ sions of California Civil Code Section 1365. 7, or any successor statute, to limit the monetary liability of volunteer directors and officers of the Corpo­ ration. The policy shall, in any event, contain a "severabi1ity of interest" endorsement or the equivalent which sha 11 prec 1 ude the insurer from denying the claim of an Owner because of wanton or grossly negligent acts or omissions of the Corporation or other Owners.

(c) Such insurance covering officers and employees of the Corpora- tion and employees of any manager or managing agent, whether or not any such persons are compensated for their services, against di shone st acts on their part, or in lieu thereof, a fidelity bond, naming the Corporation as obligee, written in an amount equal to at least the estimated maximum of funds, includ­ ing reserves in the custody of the Homeowners' Association or the management agent at any given time during the term of the fidelity bond. However, the bond should not be less than a sum equal to three (3) months aggregat.e assessments on all Residential Lots plus reserve funds.

(d) Worker's compensation insurance covering any employees of the Corporation to the extent required by law;

(e} Officers and directors liability insurance; and

insurance: The Corporation shall obtain and continue in effect the following

ARTICLE 8. - INSURANCE; DAMAGE, DESTRUCTION ANO· CONDEMNATION 8.1. MASTER INSURANCE POLICY.

The provisions of this Article shall be appurtenant to the land and shall pass to such Owner's successors in title~

7.8. BINDING EFFECT.

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Each Owner sha11 obtain and maintain, at the Owner's sole expense, fire and casua1ty coverage as may be required by any mortgagee of the Owner's Lat and in no event less than the amount and type of fire and casualty insurance raoutrad to be obtained and maintained as deter:nined by the Board. All such tndtv idual ly carried insurance sha11 contain a waiver of subrogation by the carrier as to the other Owners, the Corporation, Dec1arant, and the mortgagees of such Lot.

8.4. OWNERS' INSURANCE.

The Carporat:on, and its directors and officers, shall have no 1 i ability to any Owner or mor-tqaqea if, after a good faith effort, it is unable to obtain the liability insurance required hereunder, because the insurance is no longer availab1e or, if availab1e, can be obtained only at a cost that the Board in its so1e discretions deter.nines is unreasonable under the circumstances, or the Members fail to approve any assessment increase needed to fund the insurance premiums. In such event, the Board immediately sha11 notify each Member and any mortgagee entitled to notice that the liability insurance wili not be obtained or renewed.

8.3. FAILURE TO ACQUIRE.

Each Owner aopoints the Corporation or any insurance trustee designated by the Corporation to act an behalf of the owners in connection with all insurance matters arising from any insurance policy·maintained by the Association, including without limitation, representing the Owners in any proceeding, negotiation, settlement or agreement.

Any insurance maintained by the Corporation snail contain nwaiver of subrogation" as to the Corporat~on and its officers, direc:ors and. Members, the Owners and oc:~pants of the Dwellings and mortgagees, and, if obtainable, a cross-liability or saverability of interest endorsement insuring each ·insured against liability to each other insured. The Corporation shall periodically (and not less than once every three (3) years) review a11 insur­ ance policies maintained by the Corporation to deter.nine the adequacy of the coverage and to adjust the po1icies ac:ording1y.

The amount, tar.n and coverage of any policy required hereunder (including the type of endorsements, the amount of the deduct ibl e , the named insureds, the 1 ass payees, standard rnor..gage clauses, and nati ces of changes or canca 11 ati ans) sha 11 satisfy the minimum requirements imoased for this type of projec:. by the rrlMA and the rHL11C or any successor there!o. If the FNMA or FHLM.C requirements conflic:, the rnore stringent requirement shall be met. If FNMA and FHL~C do not impose requirements on any pol icy required hereunder, the term, amount and coverage of such policy shall be no less than that which is customary for similar po1icas on similar prajec:s in the area.

8.2. COVERAGE. AMOUNT AND TERM OF INSURANCL

(f) Such other insurance as the Board in its discretion considers necessary or advisable.

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If the cost of repairing or rebuilding the Connnon Maintenance Area does not exceed the amount of insurance proceeds initially offered or paid by the .insurance carrier by more than fifty thousand dollars {$50,000), such insurance proceeds shall be paid to a commercial bank or trust company desig­ nated by the Board, to be held for the benefit of the Corporation and the Owners and their Mortgagees, as their interests shall appear. If the insur­ ance proceeds are insufficient to pay ail of. the costs of repairing or rebuild­ ingt the Board shall levy a Special Assessment against the Owners herein equal to the difference between the cost of repairing or rebuilding and the amount of available insurance proceeds, which sums shall be payable into the fund held by the insurance trustee. The Board may advance the amount of said spe­ cial assessment to the insurance trustee from Corporation general funds or

· reserve funds; provided the amount taken from reserve funds represent sums a 11 oca ted the ref or. The Board sha 11 thereupon contract for the repair or reconstruction of the improvements, paying the cost of such work from the amount held by the insurance trustee, said repair or reconstruction to be for the purpose of returning the improvements substant i a 11 y to their appearance and condition immediately prior to the casualty. ·

INSURANCE PROCEEDS ADEQUATE. 9.2.l. .

In the event of partial or total destruction of improvements, includ­ ing landscaping, on the Common Maintenance Area, it shall be the duty of the Corporation to (i) first mitigate any hazardous conditions posed by such damag­ ed condition, then (ii) with the prior written consent of a majority of the voting power of the Corporation, restore and repair the same to its former condition as provided herein, as promptly as practical, modified as may be required by applicable building codes and regulations in force at the time of such repair or reconstruction and subject to such alterations or upgrades as may be approved by the Board or its appointed conunittee.

9.2. DAMAGE TO COMMON MAINTENANCE AREA IMPROVEMENTS.

If all or any portion of any Lot or Dwelling, other than the Common Maintenance Area, is damaged or destroyed by fire or other casualty, it shall be the duty of the Owner of such Lot to rebuild, repair or reconstruct the Dwelling on such Lot in a manner which will restore it substantially to its appearance and condition inunediately prior to the casualty or as otherwise ap­ proved by the Architectural Conunittee, as hereinafter provided. The foregoing notwithstanding, the Owner of a damaged or destroyed Lot or Dwelling shall be obligated to take such reasonable measures to irmnediately mitigate any danger posed by such Lot or Owe 11 i ng. The Owner of any damaged Lot or Owe 11 i ng and the Arch i tectura 1 Cammi ttee sha 11 be ob l i gated to proceed with a 11 due di 1 i - gence hereunder, and such Owner shall cause reconstruction to commence within three (3) months after the damage_ occurs and be completed within one year after damage occurs, unless prevented by causes beyond his reasonable control.

ARTICLE 9. - DAMAGE; DESTRUCTION OR CONDEMNATION 9.1. DAMAGE TO LOT OR DWELLING.

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An easement over each Residential Lot as the serv ient tenement is reserved by Dec1arant, and is hereby granted to the Corporation, for the

ARTICLE 10. - EASEMENTS COMMON MAINTENANCE AREA EASEMENT. 10 .1.

. If a 11 or any part of a Resident i a 1 lot or sucn port i an of the Com­ mon Maintenance Area on such Lot is taken by eminent domain, the award sha l l be disbursed to the Owner of the Lot subject ta the rights of the o· .. mer' s mortgagees. If the taking renders the Lot uni nhabi table, the Owner sha 11 be divested of any further interest in the Project, inc1uding membership in the Association, and the interest of the remaining Owners shail be adjusted accord­ ingly. The Corpor-at i on shall participate in the negotiations, and shall pro­ pose the method of division of the proceeds of condemnation, '"'here Lats are not valued separately by the condemning authority or by the court. The Corpo­ ration shall represent the Lot Owners in any condemnation proceedings or in negotiations, sett1ements and agreements with the condemning authority for acquisition of the Common Maintenance Area, or part thereof.

9.3. CONDEMNATION; EMINENT DOMAIN .

If the cost of such repairing or rebuilding exceeds the amount of available insurance by more than fifty thousand dollars (SS0,000), then ail insurance proceeds sna 1i be deposited as provided herei nacove and the Soard sha 11 require a determination by written assent or vote of the ~embers in accordance with the provisions and limitations contained in Article 3 as to whether a speci a 1 assessment equa 1 to the difference bet·r1een ava i 1 ab 1 e i nsur­ ance proceeds and the cost of such repairing or rebuilding shall be 1evied. If the Members deter.nined not to levy such special assessment, then the Soard shall use the available insuranca proceeds (a) to mitigate any hazardous conditions that may exist, (b) to make provision for the continuance of pub 1 i c 1 i abi 1 ity insurance to prntact the interests of the Owners unt 41 the property can be so l d , and (c) to comply with all other ano i ic ab l e rscu ir-a­ ments of government a 1 aqenc i es; any deficiency in funds necas s ary for the foregoing may be raised by a Specia1 Assessment in an amount dete::nined oy the Board therefor. In the event any excess insurance procascs rem a in, the 3oard sha 11 distribute such proceeds among the Owners, subject to the prior r~ ghts of the Mortgagees whose interests may be protected by insurance policies car­ ried by the Corporation, in proportion to the respective fair market va1ues of their Lots as of the date immediately preceding the date of damage or des~ruc­ tion as determined by a qualified independent appraiser se l ect ad by the 3oard. In the event of a failure by the Board to agree on the selection of an apprai­ ser, an appraiser shall be appointed by the then President of the San Diego County Bar Association. The apportionment of proceeds di s tr : but ao l e to a Lot between the Owner and the Mortgagee of such Lot sha 11 ce governed by the provisions of the Mortgage encumbering such Lot.

INSURANCE PROCEEDS INADEQUATE. 9.2.2.

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Declarant reserves the right to estab1 i sh and/or grant over and across the Common Maintenance Area such easements and rights of way on, over, under or across a11 or any part thereof to or for the benefit of the state of California, the County of San Diego, the City of Oceanside or any other

RESERVATION OF EASEMENTS. 10.5.

None of the rights and obligations of the Owners created herein, or by the deed creating the Planned Resi den ti a 1 Deve 1 cement sha 11 be altered in any way by encroachments due to sett 1 ement or shifting of structures or any other cause. There sha 11 be va 1 id easements for the maintenance of such en­ croachments over the Common Maintenance Area or contiguous Residential Lot upon which the encroachment exists so long as they sha11 exist; provided, however, that in no event sha i1 a valid easement for encroachment be created in favor of an Owner or Owners if said encroachment occurred due to the wii l - fu1 conduct of said Owner or Owners. In the event a structure on a Residen­ ti a1 Lot is partially or totally destroyed and then rebuilt, or repaired, the Owners of such Residential Lots agree that minor encroachments over adjoining Lots sha 11 be permitted and there sha 11 be easements for maintenance of such encroachment so long as they shall exist.

EASEMENTS FOR MAINTENANCE OF ENCROACHMENTS. 10.4.

The Corporation may grant to third parties easements in, on, and over the Common Maintenance Area for the purpose of constructing, installing, rep l ac+nc , repairing or maintaining landscaping, improvements and necessary utilities and services, and each Residential Lot Owner, in accepting his deed to the Lot, expressly consents to such easement. No such easement can be granted, however, if it would interfere with any exc1usive easement, or with any Owner's use, occupancy, or enjoyment of his Lot.

CORPORATION GRANT OF OTHER EASEMENTS. 10.3.

The Owner of a Residential Lot shall permit free ac:ess by the Corpo­ ration and Owners of adjacent or adjoining Residential Lots to slopes or drainageways located on his property, which affect said adjacent or adjoining Residentiai lots, 11"hen such access is essential for the maintenance of perma­ nent stabilization on said slopes, or maintenance of the drainage facilities for the protection and use of property other than the Lot on which the slopes or drainageway is located. The Owner of any Residential Lot shal l not in any way interfere with the established drainage pattern over his Lot from adjacent or adjoining Lots, and such Owner will make adequate provisions for property drainage in the event it is necessary to change the established drainage aver his Lat. For the purpose herein, "est sbl istied drainage;' is defined as the drainage which occurred at the time of the overall grading of the Project was completed.

DRAINAGE & SLOPES. 10.2.

purpose of entering the Common Maintenance Area of each Lot to maintain, re­ pair and replace the landscaping and improvements thereon as provided herein.

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Whenever utility fac i l i t i es are installed within the Project which serve more than one ( l) Lot, the Owner of each Lot served by the ut i 1 i ty faci 1- it i es shall be entitled ta the fu11 use and enjoyment of such portions of the utility facilities as service his Lot. In the event of a dispute bet·"'een Owners with respect to the repair or rebuilding of the utility facilities, or with respect to the sharing of the cost thereof, then, upon written request to the Corporation by one ( 1) of such Owners, the matter sha 11 be submt t t ad to arbitration pursuant to the rules of tha American Arbitration Associat~on, and the decision of the Arbitrator(s) shall be final, conclusive and binding on the parties.

Whenever utility facilities are installed within the Project, or any port1on thereof 1ie in or uoon a Lot or Lots owned by other than the Owner of a Lot served by said utility facilities, the Owners of any Lots served by said ut~lity facilities shall have the right of reasonable access far themselves or for utility companies or the City of Oceanside to repair, replace and gener­ ally maintain said ut i l i ty facilities as and when the same may be necessary. A Lot Owner shall be entitled to reasonable access ta the Cornman Maintenance Area for the purpose of maintaining internal and external telephone wiring servicing such Owner's Lot. The access shall be subject to the consent of the Corporation or Architectural Committee, whose approval shall not be unreason­ ably withheld, and which may include reasonable conditions.

OWNERS' RIGHTS~ DUTIES AND EASEMENTS FOR UTILITIES. 10. 5.

political subdivision or public organization, or any public utility entity, for the purpose of constructing, erecting, operating and maintaining facili­ ties and improvements thereon. therein or thereunder at that time or at any time in the future, including: (i) roads, streets, walks, driveways, parkways and park areas; (ii) pol es, ,,.,; res and conduits for transmission of e 1 ectri c i - ty , providing teleohone service and cable television service to the Projec: and for the necessary attachments in connection there~i th, and ( i; i) pub 1 i c and private sewers, sewage disposal systems, sprink1ing systems, water, heat­ ing and gas 1 mes or pipes and any and all equipment in connection therewith. The grant of said public utility easement shall not be interpreted ta imply any ob1igation or responsibility of any such utility company, the County of San Oi~o or the City of Ocaans ide for maintenance or operation of any of the Common Maintenance Area or the facilities located thereon or the repair, replacement or recons truct i on thereof except as occasioned by such ut i1 ity companies or County of the utility facilities for which they are respons~ble. Excent for 1 awfu 1 and proper fences, structures and faci 1 it i es p 1 aced uocn the Cammon Maintanance Area by util itY. companies, the Corranon Maintenance Area subject ta the public easement shal1 be kept open and free from buildings and structures. The County of San Di ego and the City of Oceanside furthermore are granted an easement across the Corranon Maintenance Area for ingress and egress for use by emergency vehicles.

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{a) By act or omission seed to abandon, partition, .subdtvtda, encumber, sell or transfer any property owned, dj rectly or indirectly, by the Corporation (the granting of easements for public utilities or other public purposes consistent ~ith the intended use by the Corpora ti on is not a transfer in the meaning of this clause);

Un1ess at least two-thirds (2/3) of the First Mortgagees (based upon one (1) vote for each mortgage owned), or two-thirds (2/3) of the Owaer·s ( oth­ er than Declarant) of the individual Residential Lots in the Praject have given their prior written approval, the Corporation and/or the Owners shal l not be entitled to:

11.4. ACTION REQUIRING MORTGAGEE APPROVAL.

Where the Mortgagee of a first Mortgage of record or ethers purchaser of a Residential Lot obtains title to the same pursuant to the remedies in the Mortgage or as a result of forec1osure, such acqutrar of title, ht s.succassor s and assigns, shall not be 1 iable for the share of the common expenses or as­ sessments made by the Corporation chargeable to such Res tdent ia l.rl.ot which became due prior to the acquisition of title to such Residential lot by such acquirer. Such unpaid share of common expenses or assessments shalltbe deemed to be common expenses co11ectib1e from a11 of the Residential Lctsc.includtnq such acquirer, his successors and assigns.

11.3. UNPAID DUES OR CHARGES.

This Declaration neither cent a ins nor shall be amended tu contain any provision C;"9ating a "r iqnt: of firs: rei'use!" to the Corporation be­ fore a Ras i dent t a l Lot can be sold. Should any such rights nevertheless be created in the future, such rights shall not impair the rights of .:any first mortgagee to: (a) foreclose or take title to a Residential Lot pursuant to the remedies provided in the mortgage, (b) accept a deed (or assignment) in lieu of foreclosure in the event of a defau1t by a mortgagor, or (c) sell or lease a Residential Lot acquired by the Mortgagee.

NO RIGHT OF FIRST REFUSAL. 11.2.

No breach of any of the covenants, conditions and restricttons here­ in contained, nor the enforcement of any lien provisions herein, shal l render invalid the lien of any First Mortgage on any Residentia1 Lot made in good faith and far value, but an of said covenants, conditions and restr+ct tons shall be binding upon and effective against any Owner whose title ts derived through foreclosure or trustee's sa l s , or ather . .,ise. Any provision within the Proj act Documents to the contrary no twi thst andi nq, First Mortgagees sna 11 have the rights expressly provided in this Article.

GENERAL. 11.1.

ARTICLE 11. - RIG.HTS OF LENDERS

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Upon written request to the Corporation, i dent i fyi ng the name and address of the ho1der, insurer or guarantor and the Residential Lot number or address, any Eligible Mortgage Holder or Eligible Insurer will be entit1ed to timely written notice of:

NOTIFICATION TO MORTGAGEE. 11. 7.

Any other provision herein contained to the contrary notwithstand­ ing, no provision of this Declaration or any other Project Document sha11 give a Residential Lot Owner, or any other party, priority over any rights of the First Mortgagee of a Residentia1 Lot pursuant to its mortgage in the case of a distribution to sue!'! Lot Owner of insurance proceeds or condemnation awards for losses to or a tak~ng of Corporation owned property.

PRIORITf OF PROCEED OR AWARD DISiRIBUTION. 11.6.

First Mortgagees may, joint1y or singly, pay taxes or other charges which are in defau1t and which may or have become a charge against the Car?ora­ tion or its property and may pay overdue premiums on hazard insurance pol i­ c i es, or secure new hazard insurance coverage on the 1 apse of a po 1 i c:.,, for such property. First Mortgagees making such payments sha11 be owed immediate reimbursement from the Corporation. This provision shall constitute an agree­ ment by the Corporation for the express benefit of all First Mortgagees, and upon the request of any First Mortgagee, the Corporation shall execute and deliver to such Mortgagee a separate written agreement embodying this provi- sion.

PAYMENT OF TAXES AND INSURANCE. 11.5.

Use hazard insurance pro~eeds for lasses to Cor~oratian cJm­ mon property for other than the repair, replac2ment or recJn­ struction of such property.

Fail to maintain. f~re and extended coverage on insurable Corporation owned imcrovements on a current replacement cas~ basis in an amount not less than one hundred percent (100%) of the insurable vaiue (based on current replacement cas:s); or

By act or omission. change, waiver or abandon any scheme of regulations. or enforcement thereof, pertaining ta the arc:1i­ tectural design or the exterior appearance or exterior mainte­ nance of Lots. the maintenance of the wa 1 ks or fences and driveways, or the upkeep of landscaping in the Common Mainta­ nance Area; or

Change the method of determining the obligations, assess­ ments, dues or other charges which may be levied against an Owner; or

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(e}

(d)

(c}

(b)

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Any Mortgagee can furnish information to the Board concerning the status of any Mortgage.

MORTGAGEES FURNISHING INFORMATION. 11.12.

Any First Mortgage given to secure a loan to facilitate the resale of a Residential Lot after acquisition by foreclosure or by a deed-in-lieu of foreclosure or by an assignment-in-lieu of foreclosure shall be deemed to be a loan made in good faith and for value and entitled to a1l of the rights and protections of this Article.

LOAN TO FACILITATE. 11.11.

Any Mortgagee who acquires title to a Residential Lot by foreclosure or by deed-in-lieu of foreclosure or assignment-in-lieu of foreclosure shall not be obligated to cure any breach of this Declaration that is non-curable or of a type that is not practical or feasible to cure. A "breach", as used herein, shall not apply to any lien of or obligation for assessments owed to the Association which became due prior to the acquisition of title by deed or assignment in lieu of foreclosure.

NON-CURABLE BREACH. 11.10.

The Corporation shall make available to Eligible Mortgage Holders, current copies of the Project Documents and the books, records and financial statements of the Corporation. "Available" means available for inspection, upon request, during norma 1 business hours or under other reasonable ct rcum­ stances.

11.9. INSPECTION OF PROJECT DOCUMENTS, BOOKS AND RECORDS.

Project professional management agreement procedures, and the rights of Eligible Mortgage Holders relating to the termination of particular professional management agreements, are set forth in the Bylaws.

11.8. AGREEMENT FOR MANAGEMENT.

any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders as required by the Project Documents.

any default in the performance by an Owner of any obligation under the Project Documents not cured within sixty (60) days;

ar.y lapse, cancellation or material modification of any insur­ ance pol icy or fide1 ity bond maintained by the Corporation; and

any condemnation loss· or any casualty loss which affects a material portion of the Project or the Residential Lot in­ sured or guaranteed by such Eligible Mortgage Holder or Eligi­ ble Insurer;

( (

(d)

(c)

{b)

(a)

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Any violation of any state, municipal or local law, ordinance or regulation pertaining to the ownership, occupation or use of any Residentia1 Lot within the Project is hereby declared to be a violation of this Declara­ tion and subject to any or all of the enforcement procedures herein set forth.

12.4. VIOLATION OF LAW.

Failure by the Corporation, Oeclarant or any Owner to enforce any provisions of this Declaration shall in no event be deemed a waiver of the right ta do so thereafter.

FAILURE TO ENFORCE. 12.3.

The result of every act or omission, whereby any prov rsron, condi­ tion, restriction, covenants, easement, or reservation contained in this Decla­ ration is violated in whole or in part, is hereby declared to be and consti­ tute a nui.sance, and every remedy allowed by law or equity against a nuisance, either public or private, shall be applicable against every such rasul t and may be exercised by any Owner. Each remedy provided by this Declaration sha11 be cumulative and not exclusive.

NUISANCE. 12.2.

The Corpor at i on, Dec: arant or any Owner sha 11 have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, rasarvat ions , liens and charges now or hereafter imposed by this Declaration. Eac:i Owner of a Residential Lot shall have a right of action against the Corporation or any Owner for failure to comp1y with the provisions of the Declaration, the Bylaws, or with the decisions of the Corporation which are made pursuant to authority granted the Corporation under the Dec 1arat ion or Bylaws.

RIGHT TO ENFORCE. 12.1.

ARTICLE 12. - ENFORCEMENT

Neither the Corporation nor Owners may elect to terminate the lega1 status of the Project for reasons other than substantial destruction or condem­ nation of the Project without the written consent of Eligible Mortgage Holders who represent at least sixty-seven percent (67~) of the votes of the mortgaged Owe 11 i ng Units.

TERMINATION WITrlOUT SUBSiANTIAL DESTRUCTION. 11.14.

Any First Mortgagee shall be entitled, on written request therefor, to have the Corporation provide an audited financial statement for the immedi­ ately preceding f i scal year, which statement shall be furnished within a rea­ sonable time following sue~ request.

FINANCIAL STATEMOO. 11.13.

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Prior to close of escrow on the sale of the first Residential Lot in the Project, Deel arant may amend this Deel aration, with the consent of the Department of Real Estate of the State of California. Except ~as may be in accordance with the provisions of California Civil Code Sections 1355 and 1368 or any amendment or successor statute thereto, during the period ·nf time after the sale of the first Residential Lbt, and prior to conversion af the Class B membership in the Corporation to Class A membership, this Declaration may be amended at any time and from time to time by the vote or writ~n assent of sixty-seven percent (67i) of the total voting power of each clci'Ss of Members of the Corporation. After conversion of the Class B membership in!the Corpora­ tion to Class A membership, this Declaration may be amended at :any time and from time to time by the vote or written assent of ( i) stxty-sseven percent (6i%} of the total voting power of the Corporation, and (ii} six~y-seven per­ cent (67%) of the voting power of the Members of the Corporati~~ other than Declarant. However, the percentage of voting power necessary tat:...amend a spe­ cific clause or provision shall not be less than the prescribed:percentage of affirmative votes required for action ta be taken under that clause. Any such amendment shall become effective upon the recording with the. ·Office of the County Recorder of San Diego County, California of a Certificate of Amend­ ment signed and acknowledged by the President or Vice President· of the Corpora­ tion and the Secretary or Assistant Secretary of the Corporatto~ certifying that such votes or written consent have been obtained. For the ... purposes of recording such instrument, the President or Vice-President an~Secretary or Assistant Secretary of the Corporation are hereby granted an i·rmocable power of attorney to act for and on behalf of each and every Owner in certifying and executing and recording said amendment with the Office of the· Cturity Recorder of San Diego County, California. No material amendment may .bar made to this Declaration without the additional prior wr.itten consent of E1i!ible Mortgage Holders who represent at least fifty-one percent (51%) of the votes of Units which are subject to mortgages held by such Eligible Mortgage Holders. •Material amendment" shall mean any amendments to provisions of s tht s Oeclara­

·tion which establish, provide for, govern or regulate any of the following:

(a} Voting rights;

(b) Assessments, assessment l tens; or the priorityc.JJf assessment liens;

13.2. AMENDMENTS.

Should any provision in this Declaration be void or tmcome invalid or unenforceable in law or equity by judgment of court order, the remaining provisions hereof shall be and remain in full force and effect.

13.1. SEVERABILITY. ARTICLE 13. - GENERAL PROVISIONS

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(o) Any provisions that expressly benefit Mortgage Holders, insur­ ers or guarantors.

An addition or amendment to such document sha 11 not be considered material if it is for the purpose of correcting technical errors, or for clari­ fication only.

Any Eligible Mortgage Holder or Eligible Insurer who receives a written. request to consent to additions or amendments requiring consent under this provision who does not deliver or post to the requesting party a negative response within thirty (30) days after such receipt shall be deemed to have consented to such request, provided that notice was delivered by certified or registered mail, with a "return receipta requested. ·

(h) Expansion or contraction of the Project, or the addition, annexation or withdrawal of property to or from the Project;

(i) Insurance or fidelity bond coverage; (j) Leasing of Dwelling-Units; (k} Imposition of any restrictions on an Owner's right to sell or transfer his or her Dwe11ing Unit; (1) Any decision by the Board to establish self-management when

professional management had been required previously by the Project Documents or by an Eligible Mortgage Holder;

{m) The restoration or repair of the. Project (after hazard damage or partial condemnation) in a manner other than that speci - fied in the Project Documents;

(n) Any action to tenninate the legal status of the Project after substantial destruction or condemnation occurs; or

(f) Redefinition of the boundaries of any Residential Lot; (g) Convertibility of Residential Lots into Lots owned by Owners

in common or vica versa;

(c} Reserves for maintenance, repair, and replacement;. (d) Responsibility for maintenance and repairs; (e) Reailocation of interests in the Project, or rights to their use;

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Dec la rant is undertaking the work of construction of Resident i a 1. Lots and Dwellings thereon and incidental improvements upon the Project Proper­ ty. The completion of that work · and the sa 1 e, renta 1 and other di sposa 1 of said Residential Lot and the Dwellings thereon is essential to the establish­ ment and we 1 fare of the Project Property as a resi denti a 1 community. In order that said work may be completed and said Project Property be established as a fully occupied residential community as rapidly as possible, nothing in this Declaration sha11 be understood or construed to:

NON-INTERFERENCE TO OECL\RAHT CONSTRUCTION EFFORT. 13.6.

In the event the Corporation, Dec1arant, or any Owner shall cormnenca 1itigation to enforce any of the covenants, conditions or restrictions herein contained, the prevailing party in such litigation shall be entitled to costs of suit and such attorney's fees as the Court may adjudge reasonable and prop­ er. ihe "prevailing party" sha11 be the party who is entit1 ed to recover his costs of suit, whether or not the suit proceeds to final judgement. A party not entitled to recover his costs sha11 not recover attorney's fees. No sum for attorney's fees shall be counted in calculating the amount of a judg­ ment for purposes of determining whether a party is entitled to recover his costs or attorney's fees.

13.5. LITIGATION.

Upon approval in writing of the Corporation, pursuant to two-thirds (2/3) majority of the voting power of its Members, excluding the voting power of the Oec1 arant, the Owner of any property who desires to add it to the scheme of this Deciaration and to subjec: it to the jurisdiction of the Corpo­ ration, may file of record a Declaration of Annexation, which shall extend the scheme of this Dec1aration to such property. After conversion of the Class B membership in the Corporation to Class A membership, the action herein requir­ ing membership approval shall require the vote or written consent of (i) two-thirds (2/3) of the voting power of Members of the Corporation, and (ii) two-thirds (2/3) or more of the voting power of Members of the Corporation other than Oec1arant.

Each and a 11 of these covenants, cond it i ans and restri cti ans sha 11 terminate on December 31, 2050, after which date they shall automatically be extended for successive peri ads of ten ( 10) years, un 1 ess the Owners have executed and recorded at any time within six (6) months· prior to December 31, 2050, or within six (6) months prior to the end of any such ten (10) year period, in the manner required for the conveyance of rea1 property, a writing in which it is agreed that said restrictions sha11 terminate on December 31, 2050, or at the end of any such ten (10) year period.

13.4. ANNEXATION PURSUANT TO APPROVAL.

13.3. EXTENSION OF DECLARATION. ( (

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In the event Dec 1 arant sha 11 convey a 11 of its rights, tit 1 e and interest in and to the property to any partnership, individual or individuais, corporation or corporations, then and in such event, Declarant shall be reliev­ ed of the performance of any further duty or ob1 igation hereunder, and such partnership, individual or individuals, corporation or corporations, shall be obligated ta perform a11 such duties and obligations of the Oec1arant.

13.7. TERMINATION OF ANY RESPONSlBILITf OF DECLARANT.

The rights of Oeclarant provided in said paragraphs (a) through (d) above may be exercised during the period of time commencing when the Residen­ tial Lots are first sold or offered for sale to the public and ending (i) when all the Residenti a 1 Lots in the Project are sold and conveyed by Dec1 arant to separate Owners; or, (ii) five ( 5} years fo 11 owing the date of conveyance of the first Residential Lot in the Project, whichever shall first occur.

Deel arant , in exercising his rights under this Section shal l make reasonable efforts to avoid disturbing the use and enjoyment of lots and the Common Maintenance Area, while completing any work necessary to said areas.

So long as Dec1arant~ its successors and assigns owns one or more of the Residential Lots established and described herein, Declarant, its succes­ sors and assigns ·shall be subject to the provisions of this Declaration.

(c) Prevent Declarant from conducting on any part of the Project Property its business of completing said work, and of estab­ lishing a plan of Residential Lot ownership and of disposing of said Res ident t al -~ots by sale, lease or other,i1ise; or

(d) Prevent Declarant from maintaining such sign or signs on any of the Residentia1 Lots or Common Maintenance Area as may be necessary for the sale, lease or disposition thereof; provid­ ed~ however, that the maintenance of any such sign sha11 not unreasonably interfere with the use by any Owner of his lot or the Common Maintenance Area.

(b) Prevent Deel arant or its representatives from erecting, con­ structing and maintaining on any part or parts of the Project Property such structures as may be reasonable and necessary for the conduct of its business of completing said work and establishing said Projec~ Property as a resident~al community and disposing of the same in parcels by sale, lease or other­ wise; or

(a} Prevent Declarant~ its contractors or subcontractors from doing on the Project Property whatever is reasonably neces­ sary or advisable in connection with the completion of said work; or

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• 38 •

In. accordance with California Civil Code Section 1368, the Owner of a Residential Lot shall, as soon as practicable before transfer of title or execution of a real property sales contract therefor, as defined in California Civil Code Section 2985, provide the following to the prospective purchaser:

(a} A copy of the Declaration, Bylaws and Articles; (b) A copy of the most recant financial reports as required by

the Bylaws; ( c) A copy of the City Planning Cammi ss ion Reso 1 ut ion No. 88-P79

for the Project, and other applicable City documents; (d) A certificate signed by an authorized representative of the

Corporation as to the amount of any assessments levied upon the Owner's interest in his Residential Lot which are unpaid on the date of the ·statement. The certificate shall also include information on late charges,. interest and costs of collection which, as of the date of the certificate, are or may be made a lien upon the Owner's Residential Lot, pursuant to California Civil Code Section l36i, or any successor stat­ ute or law. A properly executed certificate of the Corpora­ tion as to the status of assessments on a Residenti~l Lot is binding upon the Corporation as of the date of its issuance.

REPORTS TO PROSPECTIVE PURCHASERS; ESTOPPEL CERTIFICATE. 13.10.

Any notice permitted or required by the Dec1aration, Artic1es or Bylaws may be de 1 i vered either persona 11 y or by ma i 1. If de 1 i very is by mail , it shall be deemed to have been delivered seventy-two (72) hours after a copy of the same has been deposited in the United States Mail, first class or certi­ fied, postage prepaid, addressed to the person to be notified at the last address shown on the Corporation's records, or addressed to the Residentia1 Lot of such person if no address has been given by such Member to the Corpora­ tion.

13.9. DELIVERY OF NOTICE.

Each Owner, tenant or occupant of a Residentia1 Lot shall comply with the provisions of this Oeclarationt the Bylaws, decisions and resolutions of the Corpora ti on or its duly authorized representative, as l awfu11 y amended from time to time and failure to comply with any such provisions, decisions or resolutions shall be grounds for an action to recover sums due for damages or for injunctive re1ief.

A 11 agreements and determi nat i ans 1 awfu 11 y made by the Corporation in accordance with the voting percentages estab1 ished in this Dec1aration or in the Bylaws, shall be deemed to be binding on a11 Owners of Residential Lots, their successors and assigns.

13.8. OWNER COMPLIANCE WI1'H DECl..ARATION.

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The titles or headings of the· Articles or Sections of this Declara­ tion are not a part hereof and shall have no effect upon the construction or interpretation of any part hereof.

rrnzs 13.13.

Whenever the context of this Declaration requires same, the singular shall include the plural and the masculine shall include the feminine.

SINGULAR INCLUDES PLURAL 13.12.

In the event of a conflict between this Declaration and any other Project Document, the provisions of this Declaration shall control.

GOVERNING DOCUMENTS 13.11.

Upon written request, the Corporation shall, within ten (10) days of the mailing or delivery of the request, provide the Owner of a Residential Lot with a copy of the items speeified hereinabove. .The Corporation may charge a fee for this service~ as well as a fee or assessment to change its reeords in connection with the transfer of title to a Lot. Any fe~s or assessments con­ tained in this Section shall not exceed the reasonable costs to prepare and reproduce the requested items or the actual costs to change records.

( ( . ,

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•

WITNESS my hand and official seal.

OFFTC:71\ L SEAL .!Ur"! I( SKIDMORE

NOTA#l'Y CUSLIC ' CAllFO~NIA :rr. 01::-ca cou;rrv

My comrr .. c::;::res AUG 2. 1993

General Partner ; Oceanside Villas. personaJly • nown to me (o_r ~ro~ed to me on the basis of satisfactory evidence) to be the person who xecuted the within instrument on behalf of the General Partnership named therein. nd acknow· !edged to me that the General Partnership executed it. 19

\

Silverwood Development, Inc.; :i

COUNTY OF ---=S:=a:=n:....::.D.=i::.egc.;o=------- 1 ii a . ;1

On this 9th day of January . in the ~ar 19 90 before me, the undersigned, a Notary Public in and for said State, personidly appeared

James Silverwood; President ~l

STATE OF CALIFORNIA

(Attach Proper Notary Certificate(s) of Acknowledgment}

ent, Silverwood Development Inc.; 1 Partner; Oceanside Villas

By:

OCEANSIDE VILI...AS, a California general partnership

OECLARANT:

IN WllHESS WHEREOF, the undersigned, being Oecl arant herein, has executed this instrument on this ...9..tb.. day of ,Ianuao: , 19~.

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Lots 1 through 113, inclusive, of TRACT T2488, in the City of Oceanside, County of San Diego, State of California, according to Map thereof .No. 12449, f i 1 ed in the Office of the County Recorder of San Oie<JO County, August 28, 1989.

LEGAL DESCRIITTON

EXHIBIT •A•

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llfff»l. SElil : P. L. TABER Nolary P\lbllC - Stat! of Al1%Dnl

MARICOPA COUNTY My Ct;MI. ~ ~ 2. 1~ -42-

~ COMMISSION EXPIRES: ~ 211990

Notary Public

This instrument was acknowledged before me this 27th day of December 1989 by Wayne Powers who acknowledged himself to be the Vice President of Lincoln Savings and Loan Association. F.A •• a federal savings and loan association, and that he as such Vice President being authorized so to do, executed the foregoing instrument for the purposes therein contained.

In witness wereof I hereunto set my haven and official seal.

STATE OF ARIZONA County of Maricopa

LINCOLN SAVINGS AND LOAN ASSOCJATlON, F.A. a federal savings and loan association --

DA TED: December 27, 1989

SUBORDINATION AGREEMENT

LINCOLN SAVINGS AND LOAN ASSOCIATION, F.A., being the beneficiary under that certain Deed of Trust dated November 9, 1988, and recorded November 18, 1988 as Fil I Page No. 88-593962 of Official Records in the Office of the County Recorder of San Diego County, California, hereby declares that the lien and charge of said Deed of Trust is and shall be subordinate to the Declaration to which this Subordination Agreement is attached

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GENEB,AL •••••••.•••••••••••••• ~- ••.•••• ~-;~. ~ .--~-· .. •· ••••••••••••••••••••• 30 NO RIGHT OF FIRST REFUSAL.~ ••••••••• ~ ••••••••••••••••••••••••••••• 30 UNPAID DUES OR CHARGES •• ', •• ~·.~ •••• ~,.~ •• -~.~~-~ ••• ~ •• - ••••••••••••••• 30 ACTION REQUIRING MORTGAGEE:APPROV~~-~·;\'.:{/. ~:~·.~· .: ~ ~ ~ •••••••••••••••• 30 PAYMENT OF TAXES ANO ... INSURANCE~ ~ ~ ~ ~:.~~<;·.\ ~ • ••......•.............. 31 PRiORITY OF PROCEED. OR :AWARD :·DISTRIBUTION:~..-.·.".\ •.••••••••••••••••• 31 NOTIFICATION To MORTGAGEE.~-/~.'..:~ ~/.;tr::.\;.·~ ;. H · .. 31 AGREEMENT FOR MANAGEMENT~.~ ••••• .":'~:~-/~.·~~ •• · •.••• ~--~ ••••••••••••••••• 32 INSPECTION OF PROJECr OOCUMENTS/'.BOOKS}ANO".RECOROS •••••••••••••• · •• 32 NON-CURABLE BREACH ••••••••• ~": •• '~. ://:.~_i'/t;/.··)~\\ ~ ~,; .':. 32

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ARTICLE 11. - RIGHTS OF·; LENDERS

DRAINAGE & SLOPES •• ~ •.••.•••••••••••••••••••••••••• · ••••••••••••••••• 28 CORPORATION GRANT '.OF.· OTHER;EASEMENTS •••••• · •• ~:.<· •.. · 28 EASEMENTS FOR MAINTENANCE OF .. ENCROACHMENTS •••• · •••••••••••••••••••• 28 RESERVATION OF EASEMENTS •• \}~\.'.~. :.:}:·l ~::.:~. ~ .. ., 28 OWNERS' RIGHTS, DUTIES :AND :EASEMENTS{F.OR: UTILITIES •••••••• · •••••••• 29 . . ' : .. ::. . " .. _ .... ' . : . . . . ' ... ·. .

ARTICLE 10. - EASEMENTS

COMMON MAINTENANCE AREA EASEMENT ••••••••• ~ 27

11.1. 11.2. 11.3 ~ 11."4. 11.5. 11.6. 11.7. 11.8. 11.9. · 11.10.

10.1. 10.2. 10.3. 10.4. 10.5. 10.6.

9 .1. DAMAGE TO LOT OR DWELLING ••••••••••• ." ••••••••••••••••••••••••••••• 26 9. 2. DAMAGE TO COMMON MAINTENANCE AREA IMPROVEMENTS ••••••••••••••••• · ••• 26'.

9. 2 .1. INSURANCE PROCEEDS ADEQUATE ••••••••••• ." •••• • •••••••• 26. 9.2.2. INSURANCE PROCEEDS INAOEQUATE ••••••••••••••••••••••• 27 9.3. CONDEMNATION; EMINENT OOMAIN ••••.•••• ~ ••••.••.•••••••••••.••••••.• 27 . .

ARTICLE 9. - DAMAGE; DESTRUCTION OR CONDEMNATION

8.1. MASTER INSURANCE POLICY ••••••••••••••••••••••••••••••••••••••••••• 24 8.2. COVERAGE, AMOUNT AND TERM OF INSURANCE ••••.••••••••••••••••••••••• 25 · 8.3. FAILURE TO ACQUIRE •••••••••••••••••••••••••••••••••••••••••••••••• 25 8.4. OWNERS' INSURANCE ...•............................................. 25

ARTICLE 8. - INSURANCE

7 • 1 • GENERAL • • • . . . • . • . • . • • • . • . ••.•••••••••••••••.• ~ •.•••.•••••.••.••••• 22 7.2. DAMAGE BY ONE OWNER : ~ 23 7. 3. SHARING OF MAINTENANCE ••• ; ! •••••••••••••••••••••••••••••••• 23 7. 4. .. .DAMAGE BY OTHER CAUSE ••••••••••••••••••••••••••••••••••••••••••••• 23 7. 5. . Al TERATIONS ••••.••••••••.••••••••••.•••••••••••••••••••••••••••••• 23 1·. 6. WEATHERPROOFING •.••.•••••••••• ·• •••••••••••••••••.•••••••••••••••••• 23 1. 7. ARBITRATION ••••.•.• · ••.• -~ •...•. ~ ••••• !~ •••••••••••••••••••••• • ••••••• 23 7. 8.. BIND ING EFFECT .•....••.•. · ...•..•.•. -·. ~ .•..•.••.••.• .- .•. · ......•....• -24

6.3. OWNER RESPONSIBILITY .••••.••...•.•••..•••.•••...••••..•.••...••• · •. .,21. 6.4. AMENDMENT OF RESPONSIBILITY ••••••••••••••••••••••••••••••••••••••• 22 6.5. · FAILURE TO MAINTAIN •.••••.••••••. ~ •••••••••• ~ .••.•••.•••••.••••••.• 22 6.6. WOOD-DESTROYING PESTS OR ORGANISMS ••••••• ·.- •••••••••••••••••••••••• 22

ARTICLE 7. - PARTY WALLS

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