HomeMy WebLinkAboutBylaws & Covenants 09-24-2019Return To:
SecurityTitleCompany
P.O.Box 6550
Bozeman,MT $9771450
&ST>azof t Ase-owwedcaba
The Watson Companies
Attn:Shawn Holm
963 SW Simpson,Suite110
2399078Page:1 of 82 10/141201111:05.14AM Fee:$574.00Bend,Oregon 97702 chariotsmist.-callatincounty,NT misc
AMENDED AND RESTATED DECLARATION
OF PROTECTIVE COVENANTS,
CONDITIONS AND RESTRICTIONS FOR
NORTON RANCH
Norton Properties,LLC and
Norton Ranch Homes,LLC
TABLE OF CONTENTS
Page
AR T ICLE 1 -DE F INIT IONS ........................................................................................................2
1.1 "AdditionalProperty"..............................................................................................2
1.2 "Alleys"....................................................................................................................2
1.3 "Annual Assessments".............................................................................................2
1.4 "ARC"......................................................................................................................2
1.5 "Association"...........................................................................................................2
1.6 "Base Assessments".................................................................................................2
1.7 "Board"....................................................................................................................2
1.8 "Builder"..................................................................................................................2
1.9 "Bylaws"..................................................................................................................3
1.10 "City".......................................................................................................................3
1.11 "Common Areas".....................................................................................................3
1.12 "Common Maintenance Areas"...............................................................................3
1.13 "Conversion Date"...................................................................................................3
1.14 "Declarant"..............................................................................................................3
1.15 "Design &ConstructionGuidelines".......................................................................3
1.16 "Directors"...............................................................................................................4
1.17 "FutureDevelopment Lot"......................................................................................4
1.18 "Governing Documents"..........................................................................................4
1.19 "Improvement"........................................................................................................4
1.20 "Lot"........................................................................................................................4
1.21 "Mortgagee"and "FirstMortgagee"........................................................................4
1.22 "Owner"...................................................................................................................4
1.23 "Parks".....................................................................................................................5
1.24 "Plat"........................................................................................................................5
1.25 "Property"................................................................................................................5
1.26 "Reserve Account Assessments".............................................................................5
1.27 "RestatedDeclaration".............................................................................................5
1.28 "Rules and Regulations"..........................................................................................5
1.29 "SpecialAssessments".............................................................................................5
1.30 "SpecificAssessments"...........................................................................................5
1.31 "Subdivision"...........................................................................................................6
1.32 "Turnover Meeting".................................................................................................6
1.33 "Unit".......................................................................................................................6
ARTICLE 2 -ASSOCIATION.......................................................................................................6
2.1 Membership .............................................................................................................6
2.2 Voting Rights...........................................................................................................6
2.3 Suspension ...............................................................................................................7
ARTICLE 3 -ASSOCIATION FINANCES ...............................................................................7
3.1 Budgeting.................................................................................................................7
3.2 Base Assessments....................................................................................................7
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3.3 Replacement Reserve Assessments.........................................................................8
3.4 SpecificAssessments...............................................................................................9
3.5 SpecialAssessments................................................................................................9
3.6 Reimbursement Assessments.................................................................................10
3.7 Commencement of Assessments............................................................................10
3.8 ObligationforAssessments...................................................................................11
3.9 Lien forAssessments.............................................................................................11
3.10 Interest;Late Fees;Fines.......................................................................................12
3.11 Accelerationof Assessments.................................................................................l2
3.12 Certificateof Payment...........................................................................................12
3.13 ReallocationUpon Annexation of AdditionalProperty.........................................13
3.14 ReallocationUpon Removal of a Portionof theProperty.....................................13
3.15 No Reimbursement to Declarant............................................................................13
ARTICLE 4 --EASEMENTS AND RIGHTS OF ENTRY.........................................................14
4.1 PlatEasements.......................................................................................................14
4.2 Owners'Easements in Common Areas.................................................................14
4.3 Easement of Encroachment....................................................................................14
4.4 Easements forUtilities,Etc....................................................................................14
4.5 Easements toServe AdditionalProperty...............................................................15
4.6 Easements forMaintenance,Emergency and Enforcement..................................15
4.7 Easement to Inspectand Right to Correct..............................................................15
4.8 PerimeterFence Easement.....................................................................................16
4.9 RetainingWall Easement.......................................................................................16
4.10 SpecialDeclarantEasements.................................................................................16
ARTICLE 5 --COMMON AREAS .............................................................................................17
5.1 Use of Common Areas...........................................................................................17
5.2 Alienationof Common Areas................................................................................18
5.3 Conversion of Lots to Common Areas..................................................................18
5.4 No Partition............................................................................................................18
5.5 Titleto Common Areas..........................................................................................18
5.6 Damage or DestructionBy Owner.........................................................................18
ARTICLE 6 --MAINTENANCE.................................................................................................19
6.1 Maintenance by Association..................................................................................19
6.2 Maintenance by Owner..........................................................................................19
6.3 Maintenance During Construction.........................................................................20
ARTICLE 7 -ARCHITECTURAL REVIEW .............................................................................20
7.1 ArchitecturalReview Committee..........................................................................20
7.2 Design &ConstructionGuidelines........................................................................21
7.3 Scope of Review....................................................................................................2I
7.4 Sub mis sionof Plans...............................................................................................21
7.5 Plan Review...........................................................................................................21
7.6 N on-conformingS tructures...................................................................................22
7.7 Imm unityof ARC M emb ers..................................................................................22
7.8 Limited Review......................................................................................................22
7.9 Address forNotice.................................................................................................22
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7.10 Appearance and Design of Subdivision.................................................................22
7.11 DeclarantExempt;Constructionby Declarant......................................................23
7.12 Approval of BuilderPlans.....................................................................................23
ARTICLE 8 -INSURANCE AND INDEMNIFICATION.........................................................23
8.1 AssociationInsuranceCoverage............................................................................23
8.2 Owners'InsuranceCoverage.................................................................................25
8.3 Builders'InsuranceCoverage................................................................................25
8.4 Builders'Indemnification......................................................................................25
ARTICLE 9 -DAMAGE OR DESTRUCTION ...........................................................................26
9.1 Common Areas......................................................................................................26
9.2 Units.......................................................................................................................27
ARTICLE 10 -CONDEMNATION.............................................................................................27
ARTICLE 11 -USE RESTRICTIONS.........................................................................................27
11.1 ResidentialUse....................................................................................................28
11.2 No Tree Removal...................................................................................................28
11.3 No Improvements or FillMaterial.........................................................................28
11.4 Rental Restrictions.................................................................................................28
11.5 Air ConditioningUnits..........................................................................................29
11.6 Nuisances...............................................................................................................29
11.7 Temporary Structures.............................................................................................29
11.8 Signs.......................................................................................................................29
11.9 Campers,Boats,RecreationalVehicles and otherNon-Passenger Vehicles.........30
11.10 Commercial Vehicles.............................................................................................30
11.11 Disabled Vehiclesor Vehicles in Disrepair...........................................................31
11.12 Maintenance or Repair of Vehicles........................................................................31
11.13 Pets,Livestockand Poultry....................................................................................31
11.14 Garbage and Refuse Disposal................................................................................31
11.15 Detached Buildings................................................................................................31
11.16 Fences and Hedges.................................................................................................32
11.17 General Landscaping.............................................................................................32
11.18 Antennae and SatelliteDishes...............................................................................32
11.19 SolarEnergy Panels...............................................................................................33
11.20 ClothesHanging Devices.......................................................................................33
11.21 Window Treatments...............................................................................................33
11.22 Oil and Mining Operations....................................................................................33
11.23 Garages..................................................................................................................33
11.24 Setback Lines.........................................................................................................33
11.25 Athleticand RecreationalFacilities.......................................................................33
11.26 Water and Sewage Systems...................................................................................34
11.27 ExteriorHoliday Decorations................................................................................34
11.28 RetainingWalls......................................................................................................34
11.29 Household Chemicals............................................................................................34
11.30 ProhibitedPlants....................................................................................................34
11.33 Rezoning Prohibited...............................................................................................35
11.34 Lot Consolidationand Division.............................................................................35
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11.35 Drainage AlterationProhibited..............................................................................35
ARTICLE 12 -SPECIAL DECLARANT AND BUILDER RIGHTS.......................................35
12.1 Development and SalesActivities.........................................................................35
12.2 Control of and Changes inDevelopment Plan.......................................................36
12.3 Right to Transferor Assign DeclarantRights........................................................36
ARTICLE 13 -ANNEXATION AND REMOVAL....................................................................36
13.1 Annexation by Declarant.......................................................................................36
13.2 Annexation by Action of Owners..........................................................................38
13.3 Removal by Declarant............................................................................................38
ARTICLE 14 --MORTGAGEES.................................................................................................39
14.1 Notice of Delinquency...........................................................................................39
14.2 Reimbursement of FirstMort gagees......................................................................39
ARTICLE 15 -AMENDMENT..................................................................................................39
15.1 General Amendments.............................................................................................39
15.2 DeclarantAmend ments..........................................................................................40
15.3 Regulatory Amendments.......................................................................................40
ARTICLE 16 -REMEDIES ........................................................................................................40
16.1 Remedies................................................................................................................40
16.2 Attorneys'Fees......................................................................................................41
ARTICLE 17 -GENERAL TERMS............................................................................................41
17.1 Term.......................................................................................................................41
17.2 Rights and Obligations...........................................................................................41
17.3 Waiver....................................................................................................................41
17.4 Severability............................................................................................................42
17.5 PersonalPronouns..................................................................................................42
17.6 Headings................................................................................................................42
17.7 Conflicts.................................................................................................................42
17.8 Security..................................................................................................................42
17.9 Termination of OriginalDeclaration.....................................................................42
iv-TABLE OF CONTENTS
When Recorded,Return to:
The Watson Companies
Attn:Shawn Holm
963 SW Simpson,Suite110
Bend,Oregon 97702
AMENDED AND RESTATED DECLARATION OF PROTECTIVE
COVENANTS,CONDITIONS AND RESTRICTIONS FOR NORTON RANCH
THIS AMENDED AND RESTATED DECLARATION OF PROTECTIVE
COVENANTS,CONDITIONS AND RESTRICTIONS FOR NORTON RANCH (this"Restated
Declaration"),made effectiveupon itsrecordingin theOfficialRecords of GallatinCounty,
Montana,isexecuted on the datehereinaftersetforthby NORTON PROPERTIES,LLC,an
Oregon limitedliabilitycompany,and NORTON RANCH HOMES,LLC,an Oregon limited
liabilitycompany (individuallyand collectively,the "Declarant").
WITNESSETH
WHEREAS,Declarantcreateda planned residentialcommunity known as Norton Ranch
(the"Subdivision")by recordingthefollowinginstruments:
(a)The platofNorton East Ranch SubdivisionPhase 1,recorded on February 16,
2011,as Document Number 2382592 in theOfficialRecords of GallatinCounty,
Montana;and
(b)The Norton East Ranch SubdivisionPhase 1 Declarationof Covenants and
Restrictions,recorded on February 16,2011,as Document Number 2382596 in
the OfficialRecords of GallatinCounty,Montana (the"OriginalDeclaration");
and
WHEREAS,Declarantdesiresto replacetheOriginalDeclarationwith thisRestated
Declaration.
NOW,THEREFORE,Declaranthereby declaresthatthe propertydescribedon attached
Exhibit A (the"Propertv")shallbe held,sold,hypothecated,and conveyed subjecttothe
covenants,conditions,and restrictionsdeclaredbelow,which shallbe deemed tobe covenants
running with the land and imposed on and intendedtobenefitand burden each lotand other
portionsof the Propertyin ordertomaintain withinthe Propertya community of high standards.
Such covenants shallbe binding on allpartieshaving any right,titleor interestthereinor any
1 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
partthereof,theirrespectiveheirs,personalrepresentatives,successorsand assigns,and shall
inuretothebenefitof each owner thereof.
ARTICLE 1 -DEFINITIONS
1.1 "Additional Property"
"AdditionalProperty"shallmean any additionalpropertyannexed totheSubdivisionand
made subjectto theterms of thisRestatedDeclaration.
1.2 "Alleys"
"Alleys"shallmean thestreetswithintheSubdivisiondesignedas"Alley"on the
Plat.
1.3 "Annual Assessments"
"Annual Assessments"shallmean Base Assessments,Reserve Account Assessments,and
any SpecificAssessments which may be leviedby the Associationin each of itsfiscalyears
pursuantto theterms of Article3.
1.4 "ARC"
"ARC"shallmean thearchitecturalreview committee established ursuanttothe terms
of Section7.1.
1.5 "Association"
"Association"shallmean theNorton Ranch Community Association,a Montana
nonprofitcorporation,establishedforthepurposes setforthherein.
1.6 "Base Assessments"
"Base Assessments"shallmean theassessments imposed upon allLots forservices
rendered or expenses incurredby theAssociationpursuanttotheterms of Section3.2.
1.7 "Board"
"Board"shallmean the Board of Directorsof the Association.
1.8 "Builder"
"Builder"shallmean any individualor company who purchases one or more Lots forthe
purpose of constructingUnits forresaleto consumers inthe ordinarycourseof itsbusiness.
2 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
1.9 "Bylaws"
"Bylaws"shallmean theBylaws of the Association,as amended from time to time.A
copy of the Bylaws isattachedheretoas Exhibit B.
1.10 "City"
"City"shallmean the City of Bozeman,Montana.
1.11 "Common Areas"
"Common Areas"shallmean thoseportionsof the Propertyowned or leasedby the
Associationforthecommon use and benefitof the Owners.The "Common Areas"includethose
areasdesignatedas"open space"on the Plat,but specificallyexcludes Lots.The initialCommon
Areas aredescribedon attachedExhibit C.
1.12 "Common Maintenance Areas"
"Common Maintenance Areas"shallmean the Common Areas,and shallalsomean any
areaswithinpublicrights-of-wayor locatedon adjacentpropertythatthe Associationisrequired
to maintainpursuantto theterms of thisRestatedDeclaration,or which theBoard deems
necessary,desirableor appropriateforthe Associationto maintain forthecommon benefitof the
Owners,including(butnot limitedto)theParks.
1.13 "Conversion Date"
"Conversion Date"shallbe the dateupon which the ClassB membership ceasesto exist
and isconvertedtoClass A membership.Such dateshallbe the datewhich istheearlierof (i)
thedateatwhich seventy-fivepercent(75%)of the totalLots anticipatedtobe createdwithinthe
Subdivisionhave been conveyed to ClassA members;(ii)ten (10)yearsafterconveyance of the
firstLot toa Class A member;or (iii)upon writtenelectionof Declarant.
1.14 "Declarant"
"Declarant"shallmean Norton Properties,LLC,an Oregon limitedliabilitycompany,
and Norton Ranch Homes,LLC,an Oregon limitedliabilitycompany,and theirrespective
successorsand assigns,who aredesignatedas such inwritingby the applicableDeclarant,and
who consent in writingto assume the dutiesand obligationsof theDeclarantwith respectto the
Lots acquiredby such successoror assign.
1.15 "Design &Construction Guidelines"
"Design &ConstructionGuidelines"shallmean the design and constructionguidelines
adopted by theARC or Declarantpursuantto Section7.2,as amended or modified from time to
time.
3 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
1.16 "Directors"
"Directors"shallmean themembers of the Board.
1.17 "Future Development Lot"
"FutureDevelopment Lot"shallmean any Lot intendedtobe developed or further
subdividedtoaccommodate additionalhousing products,including(butnotlimitedto)
singlefamily,apartments,townhomes,condominiums and otherhousingtypespermittedby
the City.The initialFutureDevelopment Lots aredescribedon attachedExhibitD.
1.18 "Governing Documents"
"Governing Documents"shallmean thisRestatedDeclarationand theArticlesof
Incorporation,Bylaws and Rules and Regulationsof theAssociation,allas may be amended
from time totime.
1.19 "Improvement"
"Improvement"shallmean every structureor improvement of any kind,including,but
not limitedto,a Unit,landscaping,patios,decks,fences and walls(includingretainingwalls),
driveways,sidewalks,fixtures,storageshelters,pools,hot tubs,athleticfacilitiesand other
productsof constructionefforts(includingexteriorpainting,alterations,and reconstruction).
1.20 "Lot"
"Lot"shallmean each lotof land indicatedas such on the Plat.The term "Lot"
specificallyincludesa Future Development Lot (unlessotherwiseindicated),but excludes
Common Areas and Common Maintenance Areas.
1.21 "Mortgagee"and "FirstMortgagee"
"Mortgagee"shallmean theholder of any recorded mortgage,or thepartysecuredor
beneficiaryofany recorded deed of trust,encumbering one or more of theLots."First
Mortgagee"shallmean a holderof a Mortgage with priorityover allotherMortgages.
1.22 "Owner"
"Owner"shallmean Declarantand every record owner,whether one or more personsor
entities,of fee simple titleto any Lot,includingcontractsellers,but excluding thosehaving an
interestmerely as securityfortheperformance of an obligation.
4 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
1.23 "Parks"
"Parks"shallmean thosetractsidentifiedas"Parks"on the latofNorton Ecut
Ranch SubdivisionPhase 1,recordedon February 16,2011,as Document Number 2382592
intheOfficialRecords ofGallatinCounty,Montana.The PlatdedicatestheParkstothe
City,but theAssociationwillmaintaintheParks as Common Maintenance Areas.
1.24 "Plat"
"Plat"shallmean the latof Norton East Ranch SubdivisionPhase 1,recorded on
February 16,2011,as Document Number 2382592 in the OfficialRecords of GallatinCounty,
Montana,and any additionalplatsthatmay be annexed to the Subdivisionas Additional
Property.
1.25 "Property"
"Propertv"shallmean therealpropertydescribedon the attachedExhibit A,plus such
AdditionalPropertyas may be made subjecttothisRestatedDeclaration,but excludingany real
propertyremoved from thejurisdictionof thisRestatedDeclaration.
1.26 "Reserve Account Assessments"
"Reserve Account Assessments"shallmean assessmentsestablishedpursuanttothe
terms of Section3.3.
1.27 "Restated Declaration"
"RestatedDeclaration"shallmean thisAmended and RestatedDeclarationof Protective
Covenants,Conditions,and RestrictionsforNorton Ranch,and any amendments or supplements
theretomade in accordance with itsterms.
1.28 "Rules and Regulations"
"Rules and Resulations"shallmean therulesand regulationsadopted by theAssociation
from time to time in accordance with ArticleXII of theBylaws.
1.29 "Special Assessments"
"SpecialAssessments"shallmean any specialcharges establishedpursuantto theterms
of Section3.5.
1.30 "SpecificAssessments"
"SpecificAssessments"shallmean the chargesimposed upon some,but lessthan,all
Lots forservicesrenderedor expenses incurredpursuant to Section3.4.
5 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
1.31 "Subdivision"
"Subdivision"shallmean Norton Ranch,asthesame may be modified,expanded or
contractedpursuantto the terms of thisRestatedDeclaration.
1.32 "Turnover Meeting"
"Turnover Meeting"shallmean the meeting ofthe Owners calledtoturnover controlof
the AssociationtotheClass A members,as furtherdescribedin the Bylaws.
1.33 "Unit"
"Unit"shallmean an attachedor detached residentialdwellin intendedforoc anc
by a singlefamily,including(butnot limitedto)a detached singlefamily home,an apartment
locatedwithin a multifamilybuilding,an attachedtownhouse and a condominium unit.
ARTICLE 2-ASSOCIATION
2.1 Membership.The Declarant and every otherOwner of a Lot by virtueof
ownership of such Lot shallbe a member of the Association.Membership inthe Association
shallbe appurtenantto and shallnot be separatedfrom ownership of any Lot.Transferof
ownership of a Lot shallautomaticallytransfermembership in the Association.Without any
otheractor acknowledgment,Owners shallbe governed and controlledby theGoverning
Documents.There shallbe two (2)classesof membership inthe Association,ClassA
membership and Class B membership,as describedin Section2.2.
2.2 Voting Rights.The Associationshallhave two (2)classesof voting
membership:
2.2.1 Class A Membership.
Class A members shallbe allOwners with the exceptionof Declarant,provided
thatDeclarant shallbecome a Class A member from and afterthe Turnover Date.Each Class A
member isentitledtothegreaterof (a)one (1)voteforeach Lot owned or (b)one (1)vote for
each Unit constructedon each Lot owned.When more than one (1)person holds an interestin
any Lot,allsuch persons shallbe members,but thevote forsuch Lot shallbe exercisedasthey
among themselves determine;provided,however,thattheOwners of thatLot shallnot castmore
votesthan the number of votesallocatedto the Lot by the preceding sentence.Ifthe co-Owners
of a Lot cannot agreeupon thevote forthe Lots,then thevote of the Lot shallbe disregardedin
determiningthe particularmatteratissue.
2.2.2 Class B Membership
The Class B member shallbe Declarant,provided thattheClass B membership
shallterminateand become convertedto Class A membership on the Conversion Date.The
6 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
Class B member isentitledtothegreaterof (a)three(3)votes foreach Lot owned or (b)three
(3)votesforeach Unit constructedon each Lot owned.
2.3 Suspension.All votingrightsof an Owner shallbe suspended duringany period
inwhich such Owner isdelinquentin the payment of any assessment duly establishedpursuant
toArticle3 or isotherwiseindefaultunder the Governing Documents.The Board may also
suspend an Owner's rightstouse theCommon Areas during such period of default.
ARTICLE 3-ASSOCIATION FINANCES
3.1 Budgeting.
3.1.1 At leastsixty(60)days beforethebeginning of each fiscalyear,the
Board shallpreparea budget of the estimatedexpenses of the Associationforthecoming year.
The estimatedexpenses inthe budget of the Associationshallinclude,inadditiontooperating
reserves,a contributiontothe Reserve Account determined in accordance with theterms of
Section3.3below.The budget shallalsoreflectthe sourcesand estimatedamounts of funds to
cover such expenses,which may includeany surplustobe appliedfrom prioryears,any income
expected from sourcesotherthan assessmentsleviedagainstthe Lots,and theamount estimated
tobe generatedthrough thelevy of assessmentsagainstLots.Finally,the budget shall
differentiatebetween expenses applicableto allLots versus expenses applicabletosome,but not
all,Lots.
Estimated operatingexpenses and Reserve Account Assessments applicableto all
Lots shallbe allocatedamong such Lots as Base Assessments pursuant to Section3.2below,
while estimatedoperatingexpenses and Reserve Account Assessments applicabletosome,but
not allLots,shallbe allocatedamong the affectedLots as SpecificAssessments pursuantto
Section3.4below.
3.1.2 Within thirty(30)days afteradoptingthe annual budget,theBoard shall
seta datefora meeting of the Members to considerratificationof the budget and send noticeof
such meeting to theMembers in accordance with Section4.5 of the Bylaws.Unless theOwners
holding a majorityof the votesinthe Associationvote torejectthebudget,the budget isratified,
whether or not a quorum ispresentatthemeeting.IftheBoard failsto adopt a budget or ifthe
Owners vote to rejectthebudget,then the lastadopted and ratifiedbudget forthe Association
shallcontinuein effect.
3.1.3 The Board may revisethebudget and adjustthe assessmentslevied
pursuanttheretofrom time totime during the year,subjecttothe same noticeand ratification
procedures setforthabove.
3.2 Base Assessments.Upon determiningthetotalamount of income requiredtobe
generatedthrough the levy of Base Assessments as provided in Section3.1,theAssociationshall
allocatesuch amount among the Lots subjecttoassessment (asdetermined under Section3.7
7 -Amended and Restated Declarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
below)based on the formula describedinthefollowingsentence.The shareof Base
Assessments tobe assessedby the Associationagainsteach Lot subjectto assessmentshallbe
representedby a fraction,thenumerator of which isthe number of votes assignedto the
particularLot and thedenominator of which isthe totalnumber of Class A votesassignedto all
Lots subjectto assessment.Such fractionshallbe multipliedby the totaldollaramount ofthe
Base Assessments in orderto determine the dollaramount of the Base Assessment tobe levied
againsteach Lot subjectto assessment.
Declarantmay,but isnot obligatedto,reduce the Base Assessment forany fiscal
year by payment of a subsidy,which may be eithera contribution,an advance againstfuture
assessmentsdue from Declarant(ifany),or a loan,as determined by Declarantin itssole
discretion.Any such subsidy shallbe disclosedas a lineitem inthe income portionof the
budget.Payment of such subsidyin any year shallnot obligateDeclaranttocontinuepayment of
such subsidy in futureyears,unlessotherwiseprovided in a writtenagreement between the
Associationand Declarant.
3.3 Replacement Reserve Assessments.
3.3.1 As a partof any Annual Assessment theBoard shallobtainfrom Owners
contributionsfora reserveaccount (the"Reserve Account")establishedforallitems of property
includedwithinthe Common Maintenance Areas which willnormally requiremajor
maintenance,repairor replacement,in whole or inpart,inmore than one (1)and lessthan thirty
(30)years,forexteriorpainting(ifthe Common Maintenance Areas includesexteriorpainted
surfaces),and forotheritems,whether arenot includedwithinthe definitionof Common
Maintenance Areas,ifthe Associationhas responsibilitytomaintain;provided,however,thatthe
Reserve Account need not includeitems thatcould reasonablybe funded from Base Assessments
or SpecificAssessments or otherfunds or accounts of the Association,or items forwhich the
Owners (and not theAssociation)areresponsibleformaintenance,repairand replacementunder
the terms of the Governing Documents.
3.3.2 The Declarantshallconduct an initialreservestudy(a"Reserve Studv")
todetermine the Reserve Account requirements.The Reserve Study shallinclude:(a)
identificationof allitems forwhich reservesare or willbe established;(b)includethe estimated
remaining usefullifeof each item as of thedateof the Reserve Study;and (c)includeforeach
item,as applicable,an estimatedcostof maintenance,repairand replacement attheend of the
item'susefullife.The Board shallthereafterperiodicallyconduct a Reserve Study or review and
update an existingReserve Study to determine the Reserve Account requirements.
3.3.3 Contributionstothe Reserve Account ("Reserve Account
Assessments")shallbe in an amount (a)initiallydetermined by Declarantbased upon the results
of the initialReserve Study or otherreliableinformationand (b)thereafterby theBoard from
time to time based on theresultsof theperiodicReserve Study (orreview and update of an
existingReserve Study).Reserve Account Assessments shallbe allocatedto Lots inthe same
manner as Base Assessments under Section3.2 and SpecificAssessments under Section3.4,as
8 -Amended and Restated Declarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
applicable,and shallbe paid to theAssociationmonthly,quarterlyor annuallyas determined by
the Board.
Reserve Account Assessments paid intotheReserve Account arethepropertyof
the Associationand arenot refundableto sellersor Owners of Lots.The Reserve Account must
be a separateaccount holding only Reserve Account Assessments and otherfunds intendedtobe
used forthe same purpose maintained ata federallyinsuredbank or otherdepositoryinstitution
with branches in Montana,and any funds inthe Reserve Account may be expended only forthe
purposes forwhich the Reserve Account was establishedas describedabove.
3.3.4 Afterthe Turnover Meeting,theBoard may borrow funds from the
Reserve Account to meet high seasonaldemands on theAssociation'sregularoperatingfund or
to meet unexpected increasesin expenses ifthe Board has adopted a resolution,which may be an
annual continuingresolution,authorizingtheborrowing of such funds.Not laterthan the
adoption ofthebudget forthe followingyear,the Board shalladopt by resolutiona written
payment plan providingforrepayment ofthe borrowed funds withina reasonableperiodof time.
3.3.5 At any time afterthe second (2")year afterthe Turnover Meeting,
futurereplacement reserveassessmentsforthe Reserve Account may be increasedor reduced by
thevote of Owners of Lots representingseventy-five(75%)of theOwners.
3.3.6 Nothing in thisSection 3.3prohibitsthe prudent investment of Reserve
Account funds,subjecttoany constraintsimposed by the Board or the Governing Documents.
3.4 SpecificAssessments.The Associationshallhave the authorityto levy
assessmentsto satisfythe expenses of undertaking a particularprojector effortthatbenefitsome,
but lessthan all,ofthe Lots (such assessments,"SpecificAssessments").SpecificAssessments
shallbe allocatedequallyagainsttheOwners of those Lots thatbenefitfrom theproject,effortor
otherspecificundertakingby the Association,unlessthe Association(initsreasonable
discretion)determines thatanothermethod of apportionment more accuratelyreflectsthebenefit
receivedby such Owners (such as allocationtoeach Owner based on the number of votes
entitledtobe castby thatOwner).
3.5 Special Assessments.In additionto theBase Assessments authorizedabove,the
Board may levy "SpecialAssessments"againstan Owner or allOwners inthe followingmanner
forthefollowingpurposes:
(a)To correcta deficitin the operatingbudget,by vote of a majorityof the
Board;
(b)To collectadditionalamounts necessaryto make repairsor renovationsto
the Common Areas or Common Maintenance Areas ifsufficientfunds arenot availablefrom the
operatingbudget or Reserve Account,by vote of a majorityof the Board;and
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Norton Ranch
(c)To make capitalacquisitions,additionsor improvements,by vote of
Owners holding atleastsixtypercent(60%)of the votingrightsof theAssociation.
SpecialAssessments shallbe leviedagainstallLots subjecttoassessment inthe same
manner as Base Assessments under Section3.2and SpecificAssessments under Section3.4,as
applicable.
3.6 Reimbursement Assessments.The Associationshallhave the authorityto levy a
reimbursement assessment (each,a "Reimbursement Assessment")againstany Owner and such
Owner's Lot if(a)a failureto comply with thisRestatedDeclarationor the otherGoveming
Documents has necessitatedan expenditureof monies by the Associationto effectcompliance or
resultedinthe impositionofa fineorpenaltyagainstsuch Owner or such Owner's Lot;or (b)
correctiveactionof theAssociationhas necessitatedan expenditureof monies by theAssociation
as a resultof the willfulor negligentactionsor omissions of such Owner or such Owner's family
members,tenants,guests,contractorsor invitees.A Reimbursement Assessment,togetherwith
interest,costs,and reasonableattorney'sfees,shallbe due and payable tothe Associationwhen
levied.A Reimbursement Assessment shallnot be leviedby theAssociationexcepton atleast
ten(10)days'priorwrittennoticetothe Owner being assessed.If,within saidten (10)day
period,the Owner makes a writtenrequestto theBoard fora hearing,a hearingshallbe held.On
requestfora hearing,the Board shallconduct thehearingnot lessthan ten (10)nor more than
thirty(30)days afterthe requestby the Owner,and shallmake itsdecisionwithinthirty(30)
days afterthe hearingisheld.Ifa noticehas been previouslygiven,and thehearinghas already
been held or waived (inwritingor by the Owner's failureto appear)fortheviolationresultingin
theReimbursement Assessment,no additionalnoticeand hearing isrequiredbeforelevyingthe
Reimbursement Assessment.
3.7 Commencement ofAssessments.
3.7.1 Base Assessments and SpecificAssessments.Declarant shallpay all
operatingexpenses of the AssociationuntilDeclarantelectsto assessthe Lots forBase
Assessments and SpecificAssessments as provided herein.The date of commencement of Base
Assessments and SpecificAssessments on the Lots (excludingany Lots owned by Declarantor a
Builder,which shallbe exempt asprovided below)shallbe determined by Declarant;provided,
however,in no event shallitcommence laterthantheTurnover Meeting or ifno Turnover
Meeting isheld,thedateon which administrationof the Associationisturnedover to theClass A
members.
3.7.2 Reserve Account Assessments.Reserve Account Assessments
commence on a Lot as of thedateDeclarantor a Builder conveys the Lot to an Owner otherthan
Declarantor a Builder.
3.7.3 All Other Assessments.SpecialAssessments and Reimbursement
Assessments shallcommence on a Lot as of thedateDeclarantor a Builderconveys the Lot to an
Owner otherthan Declarantor a Builder.
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Norton Ranch
3.7.4 Exemption From Payment of Assessments.Any Lot owned by Declarant
isexempt from thepayment of Base Assessments,SpecificAssessments,Reserve Account
Assessments,SpecialAssessments and Reimbursement Assessments.Any Lot owned by a
Builderisexempt from the payment of Base Assessments,SpecificAssessments,Reserve
Account Assessments,SpecialAssessments and Reimbursement Assessments fora periodof one
(1)year aftersuch Lot was conveyed by DeclaranttotheBuilder;provided,however,that
Declarantshallhave theright,ititssolediscretion,to extend a Builder'sassessment exemption
period foran additionalyearby sending writtennoticethereofto the Association.
3.8 Obligation for Assessments.Each Owner,by acceptinga deed forhis,her or
theirLot,isdeemed tocovenant and agree topay allassessments authorizedinthisRestated
Declarationor otherGoverning Documents.All assessments,togetherwith interest,finesand
latecharges as determined by Board resolution,and collectioncosts(includingreasonable
attorneys'fees),shallbe thepersonalobligationof each Owner and alien upon each Lot until
paid in full.Upon transferof titleto a Lot,the granteeshallbe jointlyand severallyliablefor
any assessments and othercharges due atthe time of conveyance.The Associationmay sue any
person liableforunpaid assessments and othercharges authorizedhereunder without foreclosing
or waiving theliensecuringthe same.
Failureof the Board to fixassessment amounts or ratesor to deliverormail each
Owner an assessment noticeshallnot be deemed a waiver,modificationor releaseof any Owner
from the obligationtopay assessments.In such event,each Owner shallcontinuetopay Annual
Assessments on thebasisof the lastyear forwhich an assessment was made,ifany,untila new
budget becomes effectiveand a new assessment isleviedpursuant thereto.Any such budget
may includeas an expense item any shortfallin amounts previouslycollected.
No Owner may exempt himselffrom liabilityforassessmentsby non-use of the
Common Areas,abandonment of hisor her Lot,or any othermeans.The obligationtopay
assessmentsisa separateand independent covenant on thepartof each Owner.No diminution
or abatement of assessmentsor set-offshallbe claimed or allowed for any allegedfailureof the
Associationor Board totakesome actionor perform some functionrequiredof it,or for
inconvenience ordiscomfort arisingfrom the making of repairsor improvements,or from any
otheractionittakes.
3.9 Lien for Assessments.The Associationshallhave alien againsteach Lot to
securepayment of delinquentassessments,as well as interest,finesand latecharges as
determined by Board resolution,and collectioncosts(includingreasonableattorneys'fees).
Such lienshallbe superiortoallotherliens,except (a)liensforrealestatetaxesand assessments
and otherlevieswhich by law would be superior;and (b)the lienof any recorded FirstMortgage
made in good faithand forvalue.Such lien,when delinquent,may be foreclosedinthe same
manner as a constructionlienor as otherwiseprovided by applicablelaw aftertheAssociation
recordsa noticeoflien againstthedelinquentLot inthe OfficialRecords of GallatinCounty,
Montana.
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Norton Ranch
The Associationmay bid fortheLot atthe foreclosuresaleand acquire,hold,
lease,mortgage and convey the Lot.While a Lot isowned by theAssociationfollowing
foreclosure:(a)no rightto vote shallbe exercisedon itsbehalf;(b)no assessmentsshallbe
leviedon it;and (c)each otherLot shallbe charged,in additiontousual assessments,itspro rata
share oftheassessmentsthatwould have been charged to such Lot had itnot been acquiredby
the Association.
Saleor transferof any Lot shallnot affecttheassessment lienorrelievesuch Lot
from the lienforany subsequent assessments.However,thesaleor transferof any Lot pursuant
to foreclosureof a FirstMortgage or a deed inlieuof foreclosureforthebenefitof any First
Mortgagee shallextinguishthe lienof such assessmentson the Lot as topayments which became
due priorto the saleor transfer.The unpaid assessments shallthen become common expenses of
allOwners,includingthe FirstMortgagee and any purchaserattheforeclosuresaleor from a
FirstMortgagee.No saleor transferof any Lot pursuantto foreclosureof a FirstMortgage or a
deed in lieuof foreclosureforthe benefitof any FirstMortgagee shallrelievesuch Lot from
liabilityas to any assessmentsthereafterbecoming due or from the lienthereof.Notwithstanding
the foregoing,no saleor transferof any Lot pursuantto a mortgage foreclosureor a deed in lieu
of foreclosureforthebenefitof any FirstMortgagee shallbe deemed to extinguishany mortgage
or lienwhich theAssociationhas itselfplacedupon any propertyowned by theAssociation.
3.10 Interest;Late Fees:Fines.The Board,in itsreasonablediscretion,may from
time to time adoptresolutionsto setthe rateof interestand to impose latefeesand fineson
delinquentassessments or forviolationsof theprovisionsof thisRestatedDeclarationor other
Governing Documents.The adoption of such impositionsby the Board shallbe communicated
to allOwners inwritingnot lessthan thirty(30)days before the effectivedateby a noticemailed
to the address of the Owners as containedintherecordsoftheAssociation.Such impositions
shallbe consideredassessmentsthatarelienableand collectibleinthe same manner as any other
assessments;provided,however,thatfines(butnot interestor latefees)forviolationof this
RestatedDeclarationor otherGoverning Documents may notbe imposed againstan Owner or
such Owner's Lot untiltheOwner isgiven an opportunityfor a hearing.
3.11 Acceleration of Assessments.Ifan Owner isdelinquentinpayment of any
assessment or installmenton any assessment,theAssociation,on not lessthan ten(10)days'
writtennoticeto theOwner,may acceleratethe due dateof the fullannual assessment forthat
fiscalyear and allfutureinstallmentsof any SpecialAssessments.
3.12 Certificateof Payment.The Associationshallprovide,withinten (10)business
days of receiptof a writtenrequestfrom an Owner,a certificatesigned by an officerof the
Associationsettingforth(i)the amount of assessmentsdue from the Owner and unpaid atthe
time therequestisreceived,includingAnnual Assessments and allotherassessmentsauthorized
inthisRestated Declaration,latefees,interest,finesand othercharges,(ii)thepercentagerateat
which interestaccrueson assessments thatarenotpaid when due,and (iii)thepercentagerate
used to calculatethecharges forlatepayments;provided,however,thatthe Associationisnot
requiredto comply with the foregoingifthe Associationhas commenced litigationby filinga
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Norton Ranch
complaint againstan Owner and thelitigationispending when the certificatewould otherwisebe
due.A properlyexecuted certificateof theAssociationshallbe bindingupon theAssociationas
of thedateof itsissuanceas tothe statusof assessments on a Lot.
3.13 Reallocation Upon Annexation of Additional Property.When Additional
Propertyisannexed to the Subdivisionpursuantto Sections 13.1 or 13,2,theAssociationshall,
within sixty(60)days afterthe annexation,recompute thebudget fortheAssociationbased on
the additionalLots,Common Areas and Common Maintenance Areas and recompute all
applicableassessmentsforeach Lot.Newly annexed Lots shallbe subjecttoassessment from
thetime of annexationof the Lots to the Subdivision,unlessa laterdateisprovided elsewhere in
thisArticle3 (e.g.,Lots owned by Declarantor a Builder,which aregenerallyexempt from
assessments).The Associationshallsend noticeof any applicableassessment to the Owners of
newly annexed Lots not laterthan sixty(60)days afterthe annexationor with thenext occurring
Annual Assessment,whichever issooner.Assessments shallbe due and payable on or before a
datesetforthin thenotice,which shallbe not lessthan thirty(30)days afterthe datethe noticeis
mailed tothenew Owners or atsuch othertime or times as the Associationmay specifyin the
noticeinaccordance with thisRestated Declarationor the Bylaws.IfAdditionalPropertyis
annexed to the SubdivisionduringtheAssociation'sfiscalyear,the Associationshallsend notice
of therecomputed assessment and any additionalassessmentsowed to theOwners of the Lots
which were withinthe Subdivisionpriorto the annexation,and theAssociationshallcollectsuch
recomputed additionalassessments from such Owners.Notice of the adjustmentin the
assessments shallbe sentto such Owners not laterthan sixty(60)days aftertheannexationor
with the next occurringAnnual Assessment,whichever issooner.To the extentthatany
adjustmentresultsin a creditwith respectto assessmentspayable by an Owner,such creditshall
be appliedtoward the next occurringpayment or payments of the applicableassessment.
3.14 Reallocation Upon Removal of a Portion of the Property.When partof the
Propertyisremoved from the Subdivisionpursuantto Section 13.3,theAssociationshall,within
sixty(60)days aftertheremoval,recompute the budget forthe Associationbased on the removal
of the applicableLots,Common Areas and Common Maintenance Areas and recompute all
applicableassessmentsforeach of the remaining Lots.The Associationshallthen send noticeof
therecomputed assessmentand any additionalassessmentsowed tothe Owners of Lots which
remain in the Subdivisionaftertheremoval notlaterthan sixty(60)days aftertheremoval or
with the next occurringAnnual Assessment,whichever issooner,and theAssociationshall
collectsuch recomputed additionalassessments from theremaining Owners.To the extentthat
any adjustmentresultsin a creditwith respectto assessmentspayable by an Owner of a Lot
which remains intheSubdivisionaftertheremoval,such creditshallbe appliedtoward the next
occurringpayment or payments of the applicableassessment.Lots removed from the
Subdivisionshallno longerbe subjectto assessment as of the effectivedate of the removal;
provided,however,thatthe lienforany assessmentsdue priorto the dateof such removed (if
any)shallremain alien on the Lots removed from the Subdivisionuntilpaid infull.
3.15 No Reimbursement to Declarant.The proceeds of any assessmentsshallnotbe
used to reimburse Declarantforany capitalexpendituresincurredin constructionor other
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Norton Ranch
improvements of Common Areas or Common Maintenance Areas,nor fortheoperationor
maintenance of such facilitiesincurredbefore conveyance of such common facilitiesto the
Association.
ARTICLE 4-EASEMENTS AND RIGHTS OF ENTRY
4.1 Plat Easements.The Propertyshallbe subjectto alleasements delineatedon the
Plat.
4.2 Owners'Easements in Common Areas.Declarantgrantsto each Owner a
perpetual,nonexclusiverightand easement of use,accessand enjoyment in and tothe Common
Areas,subjectto therestrictionsand limitationssetforthinthisArticleand elsewherein this
RestatedDeclaration.
4.3 Easement of Encroachment.Declarantgrantsreciprocalappurtenanteasements
of encroachments,and formaintenance and use of any permittedencroachment,between each
Lot and any adjacentCommon Areas and between adjacentLots due tounintentionalplacement
or settlingor shiftingof improvements constructed,reconstructedor alteredthereon(in
accordance with theterms of thisRestatedDeclaration)to a distanceof not more thethree(3)
feet,as measured from any pointon thecommon boundary along a lineperpendiculartosuch
boundary.In no event,however,shallan easement forencroachment existifsuch encroachment
occurred due willfuland knowing conduct on thepartof,or with theknowledge and consentof,
theperson claimingthe benefitof such easement.
4.4 Easements for Utilities,Etc.
4.4.1 Declarantreservesforitselfand theAssociation,forthe benefitof the
Propertyand any AdditionalProperty,perpetual,nonexclusiveblanketeasements upon,across,
over and under thePropertyand AdditionalPropertyforpurposes of ingress,egress,installation,
maintenance,repairand replacement of utilitiesand infrastructure;cableand othersystems for
sending and receivingdata and/orotherelectronicsignals;securityand similarsystems;
walkways,pathways and trails;storm water drainagesystems;irrigationsystems;sanitarysewer
systems;streetlights;signage;and entryfeatures;provided,however,thattheexerciseof these
easements does not unreasonably interferewith theuse of any Lot.Declarantfurtherreservesfor
itselfand theAssociationtherightto grantthe benefitof any such easements to thelocal
municipal governmental body and otherutilityserviceproviders.
4.4.2 Declarantalsoreservesforitselfand theAssociationthenonexclusive
rightand power to grantand record such specificeasements over the Propertyand Additional
Propertyas may be necessary,in the solediscretionof Declarantor the Association,to exercise
the rightsand easements grantedby thepreceding paragraph.The Owner of any Lot to be
burdened by any easement grantedpursuantto thisSection4.4 shallbe given advance written
noticeof the grant,and the locationof the easement on such Lot shallbe subjecttothewritten
approval of the Owner (which shallnotbe unreasonablywithheld,delayed or conditioned);
14 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
provided,however,thatan Owner shallbe deemed to have consented tothelocationof an
easement on hisor her Lot iftheOwner has not responded to a writtenrequestwithinthirty(30)
days aftersuch requestwas mailed to the Owner's addresson recordwith theAssociation.
4.4.3 All work associatedwith the exerciseof the easements describedin this
Section4.4 shallbe performed in such a manner as tominimize interferencewith theuse and
enjoyment of the propertyburdened by the easement.Upon completion of thework,theperson
exercisingthe easement shallrestorethe property,tothe extentreasonablypossible,toits
conditionpriorto commencement of thework,exceptforany improvements placed withinutility
easements inviolationof the terms of thisRestatedDeclaration.The exerciseof theseeasements
shallnot extend topermittingentryintoany Unit without theOwner's consent,nor shallit
unreasonably interferewith theuse of any Lot by theOwner thereof.Except in an emergency,
entryonto any Lot shallbe made only afterreasonablenoticeto the Owner or occupant.
4.5 Easements to Serve Additional Property.Declaranthereby reservesforitself
and itsduly authorizedagents,successorsand assignsa perpetual,nonexclusive easement over
theCommon Areas forpurposes of enjoyment,use,accessand development of any propertynow
or hereafterowned by Declarantadjacentto or near the Property,whether or not such propertyis
made subjectto thisRestatedDeclaration.This easement includes,but isnot limitedto,a right
of ingressand egressover the Common Areas forconstructionand use of roads,sidewalksand
walking paths,and forconnectingand installingany and allutilitieson such property.
Declarantagreesthatitand itsduly authorizedagents,successorsand assigns
shallbe responsibleforany damage caused tothe Common Areas as a resultoftheirrespective
actionsin connectionwith development of such property.Declarantfurtheragreesthatifthe
easement isexercisedforpermanent accessto such propertyand such propertyor any portion
thereofbenefitingfrom such easement isnot made subjecttothisRestatedDeclaration,
Declarant,itssuccessorsor assignsshallenterintoa reasonableagreement with theAssociation
tosharethe costof any maintenance which the Associationprovidesto or along any roadway,
sidewalk or walkway providing accesstosuch property.
4.6 Easements for Maintenance,Emergency and Enforcement.Declarantgrants
to theAssociationeasements over the Propertyand AdditionalPropertyas necessarytoenable
the Associationto fulfillitsmaintenance responsibilitiesunder thisRestatedDeclaration.The
Associationshallalsohave theright,but not the obligation,to enterupon any Lot foremergency,
securityand safetyreasonsto perform maintenance and toinspectforthepurpose ofensuring
compliance with and enforcethe terms of thisRestatedDeclarationand the otherGoverning
Documents.Any such rightmay be exercisedby any member of the Board and itsduly
authorizedagentsand assignees,and allemergency personnelin performance of theirduties.
Except inan emergency situation,entryonto a Lot shallonly be duringreasonablehours and
afternoticetothe Owner.
4.7 Easement to Inspect and Right to Correct.Declarantreservesforitselfand
othersitmay designatetherighttoinspect,monitor,test,redesignand correctany structure,
15 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
improvement or condition(including,but not limitedto,drainageissues)which may existon any
portionof the Propertyand AdditionalProperty,and a perpetual,nonexclusive easement of
accessthroughout the Propertyand AdditionalPropertytothe extentreasonablynecessaryto
exercisesuch right.Except in an emergency situation,entryonto a Lot shallonly be during
reasonablehours and afternoticetotheOwner;provided,however,thatno entryintoa Unit is
permittedwithoutthe consent of theOwner.The person exercisingtheseeasements shall
promptly repairany resultingdamage.
4.8 Perimeter Fence Easement.An easement ishereby declaredforthebenefitof
the Declarantand the Associationforthe construction,maintenance,repairand replacementof
fencingalong the perimeterof the Property,whether or not such fencingislocatedon the
Common Areas or Lots.Declarant,however,isunder no obligationto constructany perimeter
fencing.Any perimeterfencingconstructedby Declarant shallbe maintained by theAssociation
as a Common Maintenance Area.
4.9 Retainine Wall Easement.Retainingwallsmay have been constructedby
DeclarantwithintheProperty (the"RetainingWalls").The RetainingWalls arenot inallcases
locatedon a Lot line.The locationof a RetainingWall (orthe constructionby an Owner of any
improvements on or near the RetainingWall)shallnot constituteevidence of the intended
locationof a Lot line,or provide grounds forany claim of adversepossessionor prescriptive
easement.Each Lot upon which any portionof a RetainingWall islocatedshallbe subjecttoan
easement,forthebenefitof theAssociationand allotherLots,forthepurposes of supportby and
naturaldrainagefrom such RetainingWall.RetainingWalls may or may not have been designed
by a professionalengineer,and no Owner shalltakeany actionto add,constructor placeany
improvement on the Lot so thatitmay,in thejudgment of theAssociation:resultindisturbance
of,weakening of,or damage to a RetainingWall;increaseany engineered load or alterdesign
criteria;or cause damage to the RetainingWall or surroundingproperties.Any Lot Owner who
takes such action,or who otherwisedamages a RetainingWall,shallbe responsibleforall
resultingcostsof repairand restorationof the RetainingWall.This Section4.9 shallnot applyto
retainingwalls constructedby an Owner on itsown Lot.
4.10 SpecialDeclarant Easements.Declarantreservesforitselfand itsduly
authorizedagents,successorsand assigns,perpetual,nonexclusive easements on,over and across
the Common Areas forpurposes of (a)constructingand maintainingsuch facilitiesand activities
as Declarant,initssolediscretion,deems necessaryor convenienttothesaleof Lots and Units,
including,but not limitedto,businessoffices,signs,model unitsand salesoffices;(b)
constructingand maintainingCommon Areas,includingany structuresthereon;and (c)storing
materialsand making such otheruse thereofas Declarant,in itssolediscretion,deems necessary
or convenientto the constructionof Units and otherstructureson the Propertyor Additional
Property (providedthatno such storageor otheruse shallunreasonably interferewith accessto,
or theuse,occupancy and enjoyment of,any Lot).Declarantshallalsohave easements for
accessto and use of the Common Areas forsuch facilitiesatno charge.
16 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
ARTICLE 5-COMMON AREAS
5.1 Use of Common Areas.Every Owner shallhave a rightto use and enjoy the
Common Areas,subjectto:
(a)The terms of thisRestatedDeclarationas itmay be amended from time to
time and any restrictionsor limitationscontainedin any deed conveying theCommon Areas to
the Association;
(b)The Board's Right to:
(i)adopt,promulgate,enforceand amend from time to time theRules
and Regulationspertainingto the use and enjoyment oftheCommon Areas,includingrulesand
regulationslimitingthenumber of guestsof Owners who may use the Common Areas atany one
time;
(ii)suspend the rightof an Owner,afternoticeand an opportunityfor
a hearing,touse allor any portionof the Common Areas (A)forany period not toexceed thirty
(30)days fora singleviolation,or fora longerperiod inthe case of any continuingviolationof
thisRestatedDeclarationor the Bylaws or Rules and Regulations;and (B)forany periodduring
which any assessmentsor any othercharges forsuch Owner's Lot remains delinquent;
(iii)granteasements and dedicateor transferallor any partof the
Common Areas pursuantto Sections4.4 and 5.2;
(iv)mortgage,pledge or hypothecate any or allof itsrealor personal
propertyas securityformoney borrowed or debtsincurred,subjecttotheapprovalrequirements
setforthin Section5.2;
(v)impose reasonablemembership requirementsand charge
reasonableadmission or otheruse feesfortheuse of any recreationalfacilitysituatedupon the
Common Areas thatisnot open or availableto the generalpublic;and
(vi)permituse of any recreationalfacilitiessituatedon theCommon
Areas by persons otherthan Owners,theirfamilies,lesseesand guestsupon payment of use fees
establishedby the Board;
(c)All easements grantedor reservedby DeclarantinthisRestated
Declaration,and alleasements subsequentlygrantedorreservedby Declarantpursuantto a right
grantedor reservedin thisRestatedDeclaration.
An Owner who residesin a Unit may extend his or her righttouse and enjoyment
of the Common Areas to theothermembers ofhisor her household and to guests,subjectto the
terms of thisRestatedDeclarationand theRules and Regulations.Ifan Owner does notresideat
hisor her Unit,then theOwner shallbe deemed to have assignedallof the Owner's rightstouse
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Norton Ranch
and enjoyment of theCommon Areas toresidentsor occupants of such Unit,subjectto theterms
of thisRestated Declarationand the Bylaws and Rules and Regulations.
No Owner shallmake any change to any Improvement or landscapingupon the
Common Areas,or decorate,alterorrepairany partof the Common Areas (exceptfor
maintenance of thosepartsof the Common Areas which the Owner has theduty tomaintain,if
any),without thepriorwrittenconsent of theAssociation.
5.2 Alienation of Common Areas.The Associationmay sell,dedicate,transfer,
granta securityinterestin,or grantan easement forinstallationor maintenance ofutilitiesor for
similarpurposes with respectto any portionof theCommon Areas.Except forgrantsof
easements forutility-relatedpurposes under Section4.4 above,no such sale,dedication,transfer
or grantof a securityinterestshallbe effectiveunlessapproved by eightypercent(80%)of the
votes of both Class A and Class B members,or eightypercent(80%)ofthevotes of Class A
members once Declaranthas relinquisheditsClass B membership interests.Any saleof portions
oftheCommon Area thatincludepublictrailsor walking paths shallbe made subjectto reserved
easements infavorof thepubic over such trailsand walking paths.
5.3 Conversion of Lots to Common Areas.Declarantmay electtobuildcommon
facilitieson one ormore Lots and designatesuch Lots as Common Areas by amending this
RestatedDeclaration.Such amendment to thisRestatedDeclarationshallbe executed by
Declarantand bear a certificateof the Presidentor Secretaryof theAssociationrecitingthatthe
holdersof a majorityof the voting rightsintheAssociationhave approved such conversionto
Common Areas.
5.4 No Partition.There shallbe no judicialpartitionof theCommon Areas.Each
Owner,whether by deed,gift,devise,or operationof law,forsuch Owner's benefitand forthe
benefitof allotherOwners,specificallywaives and abandons allrights,interests,and causes of
actionforjudicialpartitionof any interestinthe Common Areas and agreesthatno actionfor
judicialpartitionshallbe instituted,prosecuted,or reduced tojudgment.
5.5 Titleto Common Areas.Declarantshallcause fee simple titleto the Common
Areas tobe conveyed totheAssociation,freeand clearof monetary liens,no laterthan the date
of theTurnover Meeting,and the Associationshallunconditionallyacceptfeetitleto the
Common Areas from Declaranton such date.
5.6 Damage or Destruction By Owner.Ifdamage to any Common Areas or
Common Maintenance Areas isdirectlyattributableto an Owner or the family members,
invitees,licensee,or guestof an Owner,then thatOwner shallrepairsuch damage or destruction
as soon as reasonablypracticable,but inno eventlaterthan fifteen(15)days afterthedatethe
damage occurred,athisor her soleexpense and withouta rightof reimbursement.Ifan Owner
failstorepairsuch damage timely,the Associationshallhave allrightsof enforcement and
remedies setforthunder thisRestated Declaration.
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Norton Ranch
ARTICLE 6 --MAINTENANCE
6.1 Maintenance by Association.The Associationshallmaintain and keep the
Common Maintenance Areas in a cleanand attractiveconditionand ingood repair,such
maintenance to be funded by Annual Assessments as provided in thisRestatedDeclaration.This
maintenance shallinclude,but need not be limitedto,maintenance,repairand replacement
(subjecttoany insurancethen in effect)of the following:
(a)alllandscapeplantings,treesand lawn areas(includingirrigationthereof)
locatedon the Common Areas and withinthe Parks (untilsuch time astheCityaccepts
maintenance responsibilityforthe Parks),which shallinclude,but isnot limitedto,removal and
replacement of dead or dying treesand otherlandscapingto ensure compliance with the
approved landscapingplan (butsubjectto theterms of Section 11.2);
(b)allsidewalks,trails,walking pathsand pedestrian/bicyclepaths locatedon
theCommon Areas and withinthe Parks (untilsuch time as the City acceptsmaintenance
responsibilityforthe Parks);
(c)allmonument entrysignsand featuresforthe Subdivisionwithinor
adjacentto theProperty;
(d)the storm water conveyance and detentionsystems servingthe Subdivision
(exceptforany drainageswales locatedon Lots),which shallbe maintained per thedesign intent
of the approved plans forsuch systems and any applicableoperationsand maintenance plans;
(e)any perimeterfencing constructedby Declarant(althoughDeclaranthas
no obligationto constructany perimeterfencing);
(f)any RetainingWalls constructedby Declarant;and
(g)allotherstructuresand Improvements situatedin oron the Common
Areas,unlessmaintenance thereofisdelegatedto the Owners under the terms of thisRestated
Declarationor handled by the City or a utilityserviceprovider.
The Associationmay alsomaintain otherpropertywhich itdoes not own and is
not requiredtomaintainiftheBoard determines,initsdiscretion,thatsuch maintenance is
necessary or desirable.Such areasshallbecome partof the Common Maintenance Areas upon
approval by the Board.
6.2 Maintenance by Owner.Each Owner shallatalltimes keep his or her Lot and
Unit(s)(includingallImprovements and alllandscapeplantings,treesand lawn arealocatedon
hisor her Lot)ina clean and attractivecondition,ingood repair,and in compliance with all
applicablecovenants and municipal ordinances,unlesssuch maintenance responsibilityis
19 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
otherwiseassumed by or assignedto the Associationpursuantto Section6.1 above or any other
provisionsof thisRestatedDeclaration.
Each Owner shallalsobe responsibleformaintainingthe landscape plantings,treesand
lawn area(includingirrigationthereof)withinthe publicright-of-wayadjacenttohisor her Lot
to theback of the streetcurb;provided,however,thatthereshallbe no rightto remove trees,
shrubs or similarlandscapingfrom thisareawithout thepriorwrittenconsentof theAssociation
and compliance with theterms of Section 11.2 and any applicablezoning ordinances.
Responsibilityformaintenance of landscape plantings,treesand lawn areasas required
by thepreceding paragraphs shallincluderesponsibilityforwateringthesame as needed to
maintain them in a healthycondition,freefrom weeds and othernoxious plantmaterials,and not
permittinggrassesto exceed fourinches (4")inheight.Itshallalsoincluderesponsibilityfor
removal and replacement of diseasedor dead trees,shrubsand otherlandscaping,subjectto
obtainingany requiredtreeremoval permit from thelocalmunicipal authorityand theterms of
Section11.2.
Ifany Owner failstoproperlyperform hisor her maintenance responsibility,the
Associationmay,but isnot obligatedto,perform such maintenance responsibilitieson behalfof
such Owner and assessthe Owner fora Reimbursement Assessment in accordance with Section
3.6of thisRestatedDeclaration;provided,however,thatexceptwhen entryisrequireddue to an
emergency situation,the Associationshallprovide the Owner with reasonablenoticeand an
opportunityto cure the problem priorto entry.
6.3 Maintenance Durine Construction.During constructionitshallbe the
responsibilityof each Owner (includinga Builder)toinsurethathisor her Lot and adjacentareas
arekept freeofunsightlyaccumulation of rubbish and scrapmaterials,and thatconstruction
materials,trailers,shacks and the likearekept in a neatand orderlymanner.No burning of any
trashand no accumulation or storageof litteror trashof any kind shallbe permittedon any Lot
or the Common Areas.This Section6.3 shallnot be applicableto Declarant or itsemployees,
agentsor contractors.
ARTICLE ?-ARCHITECTURAL REVIEW
7.1 Architectural Review Committee.A committee to be known as the
ArchitecturalReview Committee e "ARC"shallbe establishedconsistin of thenot lessthan
three(3)members or more than five(5)members,exceptthatthe ARC may,attheoptionof
Declarant,consistof as few as one (1)member (which may be Declarant)forso long as
Declarant owns any Lot withinthe Subdivision.Each member of the ARC shallservefora one
(1)year term,exceptthatthemember(s)of the ARC appointedby Declarantmay serveuntil
Declarantno longerowns any Lot withinthe Subdivision.
7.1.1 The members of the ARC shallbe appointed,terminatedand/orreplaced
by Declarantforso long as Declarantowns any Lot withinthe Subdivision.Thereafter,the
20 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
Board shallappointthe members of the ARC.Members of theARC may be terminatedand/or
replacedby the Board,with or without cause,except thattheBoard may not terminateany
member of theARC appointedby Declarantso long as Declarantowns any Lot withinthe
subdivision.
7.1.2 Declarantshallhave the rightto voluntarilyrelinquishcontrolof the
ARC totheBoard during theperiodinwhich Declarantowns any Lot withinthe Subdivision,in
which event Declarant'srightto appoint,terminateand replacemembers of theARC shall
termmate.
7.1.3 The purpose of the ARC isto enforcethe architecturalstandardsof the
community and to approve or disapprove plans forimprovements proposed on the Lots.
7.1.4 The ARC shallactby simple majorityvote,and shallhave theauthority
todelegateitsdutiesand toretainthe servicesof a professionalengineer,architect,designer,
inspectoror otherperson to assistin theperformance of itsduties.
7.2 Design &Construction Guidelines.The ARC may,with the approvalof the
Board,adopt,amend,modify or reviseDesign &ConstructionGuidelines;provided,however,
thatDeclarantmay adopt,amend,modify and revisethe Design &ConstructionGuidelines
withoutthe consent of anyone so long as Declarantowns any Lot withinthe Subdivision.
NeitherDeclarantnor the ARC,however,shallhave an obligationto adopt Design &
ConstructionGuidelines.No amendments,modifications,or revisionstothe Design &
ConstructionGuidelinesshallaffectany priorARC approval.
7.3 Scope of Review.No Improvements may be undertaken,constructed,altered,
added onto or replacedupon any portionof the Propertywithout thepriorwrittenconsentofthe
ARC.
7.4 Submission of Plans.Before the initiationof constructionof any Improvement
upon any Lot,the Owner thereofshallfirstsubmit to theARC a complete setofplansand
specificationsfortheproposed improvements.Plans shallincludeelevationdrawings,design
plans,specificationsof materialsand exteriorcolors,and any otherinformationdeemed
necessaryby theARC fortheperformance of itsfunctionpursuantto theprocedure outlinedin
the Design &ConstructionGuidelines(ifany).In addition,theOwner shallsubmit theidentity
of the individualor company intendedto perform thework and projectedcommencement and
completion dates.In the eventan Owner submits plans or specificationsto theARC thatarenot
adequate to permit theARC to make an informed determinationunder thisArticle,the Board
shallhave the authorityto requiretheOwner submittingthe inadequateplans or specificationsto
retain,atthe Owner's expense,theservicesof a professionalengineer,architect,designer,
inspectoror otherperson to assistin thepreparationof a sufficientsubmittaltothe ARC.
7.5 Plan Review.Upon receiptby the ARC of allof the informationrequiredby this
Article,itshallhave thirty(30)businessdays inwhich toreview saidplans.The proposed
21 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
improvements willbe approved if,in the soleopinion of theARC:(a)theimprovements willbe
of an architecturalstyleand materialthatare compatible with theother structuresintheProperty;
(b)the improvements willnot violateany restrictivecovenant or encroach upon any easement or
crossbuildingsetback lines;(c)the improvements willnot resultinthereductioninproperty
value,use or enjoyment of any of the Property;(d)the individualor company intendedto
perform thework isacceptableto the ARC;and (e)theimprovements willbe substantially
completed,includingallcleanup,within six(6)months of thedateof commencement.Ifthe
ARC failsto issueitswrittenapproval or rejectionwithinthirty(30)businessdays of itsreceipt
of the lastof thematerialsor documents requiredto complete the Owner's submission,then the
ARC's approval shallbe deemed to have been grantedwithout furtheraction.The ARC's
approvalof plansand specificationsshallbe validfora period of twelve (12)months from the
dateof issuance,during which time the Owner must commence constructionof theapproved
Improvements and thereafterdiligentlyproceed to completion;otherwisethe approvalisvoid.
7.6 Non-conforming Structures.Ifthereshallbe a materialdeviationfrom the
approved plansinthe completed improvements,such improvements shallbe in violationof this
Articletothe same extentas iferectedwithout priorapproval of theARC.The ARC,the
Associationor any Owner may maintain an actionatlaw or inequityfortheremoval or
correctionof the non-conforming structureand,ifsuccessful,shallrecover from theOwner in
violationallcosts,expenses and feesincurredin theprosecutionthereof.
7.7 Immunity of ARC Members.No individualmember of the ARC shallhave any
personalliabilityto any Owner or any otherperson fortheactsor omissions of theARC ifsuch
actsor omissions were committed ingood faithand withoutmalice.The Associationshall
defend any actionbrought againstthe ARC or any member thereofarisingfrom actsor
omissions of the ARC committed in good faithand withoutmalice.
7.8 Limited Review.Any review and approvalmade by the ARC islimitedto
compliance with theintentof the architecturalstandardsof the neighborhood asmay from time
totime be establishedby the Board and/ortheDesign &ConstructionGuidelines.The review
and approvalmade by the ARC isnot tobe construedas superseding,replacing,ormodifying
any review,approval,or permit requiredby any local,stateor federaljurisdictionalagencies.It
istheapplicant'sresponsibilityto obtainand comply with any permits thatmay be requiredby
any local,state,or federaljurisdictionalagency.
7.9 Address for Notice.Requests forARC approvalor correspondence with the
ARC shallbe addressedtotheNorton Ranch Community Association,ArchitecturalReview
Committee,attheaddressas may be designatedfrom time to time by the ARC.No
correspondence or requestforapproval shallbe deemed tohave been receiveduntilactually
receivedby the ARC in a form satisfactoryto the ARC.
7.10 Appearance and Design of Subdivision.The Declarantshallnotbe prevented
from changing the appearance of the Common Areas,includingthe landscapingand any other
aspectsdirectlyor indirectlyconnected with itsdevelopment of the Subdivisionso long as
22 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
Declarantobtainsallapplicablegovernmental approvalsand consents.The constructionand
materialstandardsof thisRestatedDeclarationand/orplans and drawings notwithstanding,
Declarantmay change exteriorand/orinteriordesignsof Units from initialplans.This may
includedesigns,colors,and type of materials,provided Declarantobtainsallapplicable
governmental approvalsand consents.
7.11 Declarant Exempt;Construction by Declarant.Declarantisexempt from the
requirementsof thisArticle7.All constructionby Declarantestablishesthe standardsforthe
ARC and isdeemed tomeet any Design &ConstructionGuidelinesof the Associationand is
deemed tobe approved by the ARC.
7.12 Approval of Builder Plans.Declarantshallhave theright,in itssolediscretion,
to approve theplans and specificationsforallImprovements thatwillbe constructedby a
Builder,and allconstructionby a Builderpursuantto theplans and specificationsapproved by
Declarantisdeemed to satisfytherequirementsof thisArticle7.
ARTICLE 8-INSURANCE AND INDEMNIFICATION
8.1 Association Insurance Coverage.The Associationshallobtainand maintain at
alltimestheinsurancerequiredbelow and such additionalinsuranceas the Board deems
advisable,which willinclude,but isnot be limitedto,the following:
8.1.1 Property Insurance.The Associationshallobtainand maintain atall
times a policyof propertyinsurance coveringallinsurableimprovements withinthe Common
Areas againstlossor damage resultingfrom fireand otherhazards covered under specialform
coverage ("allrisk"),includingvandalism,maliciousmischief,sprinklerleakage,debrisremoval,
costof demolition,windstorm,flood and water damage endorsements.Coverage shallbe forthe
fullinsurablereplacement cost(withoutdeduction fordepreciation)of such improvements,
exclusiveof land,foundation,excavationand otheritems normally excluded from coverage,and
shallbe subjectto a commercially reasonabledeductible.Such policyof insuranceshallcover
the interestsof theAssociationand the Owners and FirstMortgagees as theirinterestsmay
appear and,ifavailableatreasonablecost,the followingterms:
(a)A waiver of subrogationby the insureras to any claimsagainstthe
Associationand itsBoard and propertymanager (ifany),and againstany Owner or guestof any
Owner;
(b)A standardmortgagee clause,except thatthe losspayment
provisionshallbe subjectto theterms of Article9 of thisRestatedDeclaration;
(c)A provisionthatno policymay be canceled,invalidated,or
suspended because of the actionof an Owner;
23 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
(d)A provisionthatno policymay be canceled,invalidated,or
suspended because of the conduct of any director,officer,or employee of theAssociationunless
theinsurergives theAssociationa priorwrittendemand thattheAssociationcorrectthedefect
and allowstheAssociationa reasonabletime to make thecorrection;
(e)A provisionthatthepolicyisprimary inthe event an Owner has
otherinsurancecoveringthe same loss;
(f)A provisionthatthepolicycannot be canceledor substantially
modified withoutatleastten (10)days'priorwrittennoticeto allinsureds;and
(g)A provisionthatany adjustment ofthelosswillbe made by the
Association,and thatallproceeds thereofshallbe paid toeitherthe Associationor an insurance
trustee,as provided inArticle9 of thisRestatedDeclaration.
The Board may by resolutiondetermine the amount of deductibleforsuch
insurancepolicy,based on availabilityand costs.Owners shallbe responsibleforthedeductible
to theextentthatitisdetermined they,theirtenantsor guestsareresponsibleforthe damage
caused tothe Common Maintenance Areas or otherpropertiesthatthe Associationinsures.
8.1.2 LiabilityInsurance.The Associationshallatalltimes maintain
commercial generalliabilityinsurancecoveringthe Common Areas and Common Maintenance
Areas (including,but not limitedto,theParks)with limitsof lossof not lessthan $1,000,000
combined singlelimitforpersonalinjuryor propertydamage (suchpolicylimitstobe reviewed
atleastannuallyby the Board and increasedinitsdiscretion),insuringtheAssociation,all
Ownets,and any managing agent againstliabilityto thepublicor to individualOwners,subject
to a commercially reasonabledeductible.
8.1.3 Workers and Employers Insurance.The Associationshallobtainand
maintain atalltimes worker's compensation and employer's liabilityinsurancetotheextent
requiredby applicablelaws.
8.1.4 FidelityBonds.The Board shallobtainand maintain atalltimes fidelity
bonds naming theBoard and allotherofficers,directorsand employees of theAssociation
handling or responsibleforfunds of or administeredby theAssociation.Ifa management agent
has the responsibilityforhandling or administeringfunds of theAssociation,themanagement
agent willbe requiredto maintain fidelitybond coverage foritsofficers,employees and agents
responsibleforsuch funds.In no event may the aggregateamount of such bonds be lessthan a
sum equal tothree(3)months Annual Assessments.The bonds must containwaivers by the
issuersof thebonds of alldefensesbased upon the exclusionof persons servingwithout
compensation from thedefinitionof "employees,"or similarterms or expressions.
8.1.5 InsuranceAgainst Loss of Association'sPersonalProperty.The
Associationshallobtainand maintain atalltimes insuranceagainstlossof personalpropertyof
24 -Amended and Restated DeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
the Associationby fire,theft,and otherlosses,with deductibleprovisionsas the Board deems
advisable.
8.1.6 Other Insurance.Such otherinsuranceasthe Board deems advisable;
provided,however,thatnotwithstandingany otherprovisionsherein,theAssociationshall
continuouslymaintain in effectsuch property,flood,and liabilityinsuranceand a fidelitybond
meeting the insuranceand fidelitybond requirements forplanned community projects
establishedby theFederal NationalMortgage Association,Government NationalMortgage
Association,FederalHome Loan Mortgage Corporation,or othergovernmental or quasi-
governmental agency involved in the secondary mortgage market,so long as such agency isa
Mortgagee,an insureror guarantorof a Mortgage,or Owner of a Lot,except tothe extentsuch
coverage isnot availableor has been waived inwritingby such agency.
8.2 Owners'Insurance Coverage.Each Owner shallobtainand maintain a
homeowner's insurancepolicycovering allinsurableimprovements locatedon itsLot and
liabilityresultingfrom use or ownership of the Lot.The insurancecoverage maintained by the
Associationshallnot be brought intocontributionwith the insuranceobtainedby an Owner
under thisSection.
8.3 Builders'Insurance Coverage.Each Buildershallmaintain thefollowing
msurance coverages:
8.3.1 LiabilityInsurance.Commercial generalliabilityinsurancewith limits
of lossof not lessthan $1,000,000 combined singlelimitforpersonalinjuryor propertydamage,
subjectto a commercially reasonabledeductible.
8.3.2 Automobile Insurance.Automobile liabilityinsurancecoveringowned,
hired,and non-owned vehiclesin an amount of not lessthan $500,000 per occurrence.
8.3.3 Workers and Employers Insurance.Worker's compensation and
employer's liabilityinsuranceto theextentrequiredby applicablelaws.
8.3.4 Additionalrequirements.Each insurancepolicyrequiredtobe
maintained by a Builderunder Sections8.3.1and 8.3.2above shallname Declarantand the
Associationas additionalinsuredsand shallbe endorsed (ifnecessary)to insuretheBuilder's
indemnificationobligationunder Section 8.4below.Each Buildershallprovide a certificateof
insuranceevidencingcompliance with thisSectiontoDeclarantand the Associationpriorto
commencing any preparatoryor constructionactivitieson any Lot,upon request,and upon
renewal or issuanceof new policies.
8.4 Builders'Indemnification.Each Builderagreesto indemnify,defend and hold
Declarantand theAssociationharmless from and againstany claims,demands,actions,suits,
judgments,losses,damages,penalties,fines,costs,or expenses,includingattorneys'fees
(collectivel,"Claims")arisin from or relatin to theactivitiesof theBuilderand its
25 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
employees,agents,consultants,contractorsand supplierswithintheSubdivision;or (b)the
Builder'sfailuretocomply with theterms and conditionsof thisRestatedDeclaration,except to
the extentof any Claims caused by the grossnegligenceor intentionalactsofpartyclaiming
protectionunder thisindemnification.
ARTICLE 9-DAMAGE OR DESTRUCTION
9.1 Common Areas.Ifany improvements within the Common Areas aredamaged
or destroyedby fireor casualty,therepair,restorationor ultimatedispositionof any insurance
proceeds shallbe inaccordance with thefollowing:
(a)Ifthe insuranceproceeds derivedfrom such lossamount to $75,000 or
less,then the Board shallcontractwith any licensedcontractoror contractorstorebuildorrepair
such damage or destroyedimprovements in conformance with theoriginalplansand
specifications,or ifadherence to such originalplans and specificationsisimpracticablein the
Board's opinion,thenin conformance with revisedplans and specificationsprovided such
repairsor rebuildingshallbe of a qualityand kind substantiallyequivalenttotheoriginal
construction.The Board shallacceptbids only in specificamounts and shallnot enterintoany
cost-plusor otherslidingscalearrangement forcompensation to the contractor.
(b)Ifthe insuranceproceeds derived from such lossexceed $75,000,allsuch
insuranceproceeds shallbe paid directlytoan insurancetrusteeas may be designatedby the
Board,as trusteeforallaffectedOwners and theirrespectiveFirstMortgagees,as theirinterests
may appear.The insurancetrusteeshalldisbursethe insuranceproceeds periodicallyas
constructionprogresses,subjectto satisfactionof the followingconditions:
(i)Upon notificationof the receiptof insuranceproceeds by the
insurancetrustee,the Board shallenterintoa contractfora specificdollaramount with a
licensedcontractoror contractorfortherepairorrebuildingof allof the damaged ordestroyed
improvements,asnearlyas practicableto the originalplansand specificationsthereofand in
accordance with allapplicablebuildingcodes.
(ii)The Board shallenterintosaidcontractwith a licensedcontractor
or contractorswhich shallhave provisionsforperiodicdisbursementsof funds by theinsurance
trustee.Disbursements tothecontractorshallbe made subjectto thepriorpresentationof an
architect'scertificatecontainingsuch provisionsas may be appropriateinthe circumstancesand
deemed suitableby the Board,along with customary lienwaivers.
(iii)The Board shallemploy a licensedarchitecttosupervisetherepair
and rebuildingtoinsurethatsuch work,servicesand suppliesare of proper qualityand that
constructioniscontemplated ina workmanlike manner and accordingto plansand specifications.
(c)Iftheproceeds of insurancemaintained by theAssociationarenot
sufficienttodefraythe estimatedcostsof reconstructionand repair,or ifatany time during
26 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
reconstructionand repair,or upon completion of reconstructionand repair,the funds forpayment
of the coststhereofareinsufficient,assessments shallbe made againstallOwners in sufficient
amounts to provide funds forthe payment of such costs.The foregoingprovisionsof this
subparagraph areapplicabletotherepairsand reconstructionto be undertaken by the
Association.
(d)Ifthe amount of availableinsuranceproceeds exceed the costof any such
reconstructionor repair,the excess shallbe paid tothe Associationand appliedby ittoreduce
the common expenses of theAssociation.
9.2 Units.Ifallor any portionof a Unit or any otherImprovements locatedon an
Owner's Lot is/aredamaged by fireor othercasualty,the Owner thereofshalleither(a)restore
the damaged Improvements or (b)remove alldamaged Improvements,includingfoundations,
and leavethe Lot ina cleanand safecondition.Any restorationproceeding under (a)above must
be performed so thatthe Improvements are in substantiallythe same conditioninwhich they
existedbeforethedamage or destruction,unlesstheowner complies with theprovisionsof
Article7.The Owner must commence such work within sixty(60)days afterthe damage or
destructionoccurs and must complete thework within six(6)months thereafter.
ARTICLE 10-CONDEMNATION
Whenever allor any partoftheCommon Areas shallbe taken (orconveyed in lieuof and
under threatof condemnation by the Board actingon itsbehalfor on thewrittendirectionof all
Owners subjecttothe taking,ifany,)by any authorityhaving the power of condemnation or
eminent domain,each Owner shallbe entitledto noticethereofand toparticipateinthe
proceedings incidenttheretounlessotherwiseprohibitedby law.The award made forsuch
takingshallbe payable to the Associationas trusteeforallOwners and FirstMortgagees,as their
interestsmay appear,tobe disbursedas follows:
(a)Ifthetakinginvolvesa portionof the Common Areas on which
improvements have been constructed,then,unlesswithin sixty(60)days aftersuch takingthe
Declarantand atleastseventy-fivepercent(75%)of the Class A members of theAssociation
shallotherwiseagree,the Associationshallrestoreor replacesuch improvements so taken on the
remaining landincludedin the Common Areas tothe extentlandsareavailabletherefore,in
accordance with plans approved by the Board of the Association.Ifsuch improvements are tobe
repairedor restored,the provisionsin Section9.1 regardingdisbursement of insuranceproceeds
in respecttocasualtydamage or destructionshallapply.
(b)Itthetakingdoes not involve any improvements on theCommon Areas,or
ifthereisa decisionmade not to repairor restore,or iftherearenet funds remaining aftersuch
restorationor replacement iscompleted,then such award or net funds shallbe paidto the
Associationand appliedby itto reduce the common expenses.
ARTICLE 11-USE RESTRICTIONS
27 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
11.1 ResidentialUse.Lots shallonly be used forresidentialpurposes.No trade,
craft,business,profession,commercial,or similaractivityof any kind shallbe conducted on any
Lot,and no goods,equipment,vehicles,materials,or suppliesused in connectionwith any trade,
service,orbusinessshallbe kept or storedon any Lot.Nothing inthisSection 11.1 shallbe
deemed toprohibit(a)activitiesrelatingto the saleof residences;(b)therightof Declarantor
any contractoror homebuilder (includinga Builder)to constructUnits on any Lot,to store
constructionmaterialsand equipment on such Lots inthenormal course of construction,and to
use any Unit as a salesofficeor model home forpurposes of salesinthe Subdivision;(c)the
rightof theOwner of a Lot to maintain such Owner's personalbusinessor professionallibrary,
keep such Owner's personalbusinessor professionalrecordsor accounts,handle such Owner's
personalbusinessor professionaltelephonecalls,or conferwith businessor professional
associates,clients,or customers in such Owner's residence;(d)residentialday care facilities,or
(e)garage sales,provided thatno Owner may conduct more than three(3)garage salesin any
twelve (12)month period and no individualgarage salemay exceed three(3)days inlength.
11.2 No Tree Removal.No treesidentifiedforpreservationon the approved tree
removal permit orlandscaping plan forthe Subdivision,nor any newly plantedtreesused to meet
the conditionsof approval forthe Subdivision,may be removed without thepriorwritten
approvalof the City.Any Owner desiringtoremove a treefrom hisor her Lot isrequiredto
confirm with theCitythatsuch treeisnotrequiredto be maintained on theapproved tree
removal permit orlandscapeplan forthe Subdivision,as thesame may be amended or modified
from time totime.
11.3 No Improvements or FiH Material.No Owner may place or constructany
Improvements over the utilityeasements locatedon hisor her Lot (asshown on the Plator any
separateeasement agreement or dedicationnow existingor hereaftergrantedpursuant to the
terms of thisRestatedDeclaration),or fillor alterthe drainage swales or any otherstorm water
facilitieslocatedon hisor her Lot.
11.4 Rental Restrictions.An Owner shallbe entitledto rentorleasehisor her Unit,
subjectto the following:
11.4.1 Written RentalAgreements.A writtenrentalor leaseagreement is
required,specifyingthat:(i)the tenantshallbe subjecttoallprovisionsof the Restated
Declarationand otherGoverning Documents,and (ii)failureto comply with any provisionof the
Restated Declarationand otherGoverning Documents shallconstitutea defaultunder therental
agreement.
11.4.2 Minimum RentalPeriod.The period of therentalor leaseisnot less
than thirty(30)days;and
11.4.3 Tenant Must Be Given Documents.The Owner gives each tenanta copy
of the RestatedDeclarationand otherGoverning Documents.
28 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
11.4.4 Owner Responsibility.Owner shallbe responsibleforany violationsby
tenantsand shallbe solelyresponsibleforeithercorrectingor eliminatingsuch violations,or
gettingtenantto do the same.
11.5 Air Conditioning Units.No Owner shallinstall,or permittobe installedor
maintained,airconditioningunitsthrough exteriormodificationsof itsUnit or through window
openings.The only airconditioningunitsthatwillbe permittedarethose airconditioningunits
which areconsideredcentralinnatureand installedon a slab,or similarfooting,inthe rearor
sideyard of a Lot outsideof and adjacentto the Unit.
11.6 Nuisances.No noxious or offensiveactivityshallbe carriedout upon any Lot,
nor shallanythingbe done thereon which may be ormay become an annoyance or nuisance to
theneighborhood.
11.7 Temporary Structures.No structureof a temporary character,including,
without limitingthegeneralitythereof,any trailer,tent,carcanopies,shack,garage,barn,motor
home or mobile home or otheroutbuilding,and no prefabricatedor relocatedstructureshallbe
used on any Lot atany time as a residence,eithertemporarilyor permanently.This restriction
shallnot be interpretedtolimitthe rightof Declarantor a Builderto use trailersor outbuildings
as salesoffices,constructionoffices,materialstoragefacilities,or sanitationfacilities.
11.8 @ns.No sign,banner orbillboardof any kind may be kept or placed on any Lot
or mounted,paintedor attachedto any Unit,fence or otherimprovement so as tobe visiblefrom
publicview intheSubdivisionor adjacentpublicstreetor carriedby any person orby any other
means displayedwithinthe Subdivisionexcept asprovided below:
11.8.1 "For Sale"Signs.An Owner may erectone (1)signnot exceeding two
(2)feetby three(3)feetindimension,fastenedonly to a stakein the ground and extendingnot
more than three(3)feetabove the surfaceof the ground advertisingthepropertyforsale.
11.8.2 "For Rent"Signs.An Owner may erectone (1)signnot exceeding three
(3)squarefeetinareaadvertisingthepropertyforrent.Such signsshallbe visiblefrom the front
of theUnit only,and shallbe displayedfrom withintheUnit.No such signshallbe erected
withina lawn or landscapeareaon any Lot,or attachedtothe outsideof the Unit.
29 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
11.8.3 PoliticalSigns.Politicalsignsmay be erectedupon a Lot by the Owner
of such Lot advocatingthe electionof one or more politicalcandidatesorthe sponsorshipof a
politicalparty,issueor proposalprovided thatsuch signsshallnot be erectedmore than ninety
(90)days in advance of theelectionto which they pertainand areremoved withinfifteen(15)
days afterthe election.
11.8.4 SubdivisionIdentificationSigns.Signs may be erectedby theDeclarant
to identifythe Subdivision,with approvalfrom thelocaljurisdictionalauthority,ifapplicable.
11.8.5 Flags.The foregoingrestrictionsshallnot be deemed to prohibitthe
displayof the flagof the United Statesby an Owner or occupant of a Lot ifthe flagisdisplayed
ina manner consistentwith federalflagdisplaylaw,4 U.S.C.(1 etseq.
11.8.6 Declarant'sSigns.Signs,banners and billboardsmay be erectedby the
Declarantand areexempt from theprovisionsof thisSection 11.8.
11.8.7 BuilderSigns.A Buildermay erectsignsand banners on any Lot or
Unit owned by theBuilderifsuch signsand/orbanners are erectedforthepurpose of marketing
and sellingUnits constructedby the Builderon Lots owned by the Builder,subjecttorulesand
restrictionsestablishedby Declarantfrom time to time.A Builder may alsoerectssignsand/or
banners on the Common Areas tomarket and sellUnits constructedby the Builderon Lots
owned by the Builder,provided thatDeclarant authorizesinwriting(inDeclarant'ssole
discretion)theerectionof such signsand/or banners on the Common Areas.
11.9 Campers,Boats.Recreational Vehicles and other Non-Passenger Vehicles.
Campers,boats,boattrailers,recreationalvehicles,commercial vehicles,or othertypesof non-
passenger vehicles,equipment,implements,or accessoriesmay not be kept or storedon any
publicstreetwithin the Subdivisionor on any Lot,except asprovided below:
11.9.1 Campers,boats,boat trailers,recreationalvehicles,recreationaltrailers,
and othernon-passenger vehicles,equipment,implements,or accessoriesmay be storedorkept
within an enclosedgarage,or on the sideof the Unit,provided thatitisfullyscreened from view
by a screeningstructureor fencingapproved by the ARC.
11.9.2 Campers,boats,boat trailers,recreationalvehicles,recreationaltrailers,
and othernon-passenger vehicles,equipment,implements,or accessoriesmay be temporarily
kept on thepublic streetswithinthe Subdivisionor on a paved driveway locatedon a Lot fora
period not to exceed forty-eight(48)hours and only forpurposes of cleaning,preparationforuse
and unloading.
11.10 Commercial Vehicles.No vehiclesbearing commercial insigniaor names may
be parked on the publicstreetswithinthe Subdivisionor on any Lot,except forcommercial
vehiclesthataretemporarilyparked on such areasforthe solepurpose of servingan Owner,or
those thatareparked within an enclosed garage.The Board,however,shallhave the absolute
30 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
authoritytograntapproval forstoringor keeping a commercial vehicleon thedriveway of a Lot
(excludingFutureDevelopment Lots).Notwithstanding the foregoing,the Board shallnot
unreasonably withhold consent to keep a commercial vehiclebearing insigniaor names where
such vehicleisdrivenby an Owner pursuantto Owner's primary job.Any Owner wishing to
keep a commercial vehicleon the driveway of any Lot (excludingFuture Development Lots)
shallapply forapproval tothe Board,and shallprovide such informationas the Board,intheir
soleauthority,may require.The Board may from time totime intheirsolediscretionreview the
approvalto keep a commercial vehicleon the driveway of any Lot (excludingFuture
Development Lots)to determine ifthe vehiclecomplies with the intentof the originalapproval.
Upon an adverse determinationby the Board,any commercial vehicleshallbe removed and/or
otherwisebrought intocompliance with therequirementsof thisSection 11.10.
11.11 Disabled Vehicles or Vehicles in Disrepair.No Owner shallpermit any vehicle
thatisin an extreme stateof disrepairtobe abandoned or to remain parked on any streetwithin
the Subdivisionor on any Lot fora period inexcessof twenty-four(24)hours.
11.12 Maintenance or Repair of Vehicles.Any maintenance or repairof vehiclesor
othermachinery or equipment must takeplace entirelywithin the enclosed garage of an Owner.
11.13 Pets,Livestock and Poultry.No animals,livestockor poultryof any kind shall
be raised,bred or kept on any Lot,except forcats,dogs or othergenerallyrecognized household
petsof a reasonablenumber,provided thatthey arenot kept,bred,or maintained forany
commercial purpose;and provided further,than no more than three(3)adultanimalsmay be
kept on a singleLot.All such animals shallbe keptin strictaccordance with alllocallaws and
ordinances (includingleashlaws).Owners shallbe responsibleforcleaningup aftertheirpets'
waste.No animal shallbe allowed to run atlarge,and allanimals shallbe kept withinenclosed
areasforpetswhich must be clean,sanitary,and reasonablyfreeof refuse,insectsand waste at
alltimes.Such enclosedareashallbe constructedin accordance with plansapproved by the
ARC,shallbe of reasonabledesign and constructionto adequatelycontainsuch animalsin
accordance with theprovisionshereof,and shallbe screened so as not tobe visiblefrom any
otherportionof the Subdivision.
11.14 Garbage and Refuse Disposal.No Lot shallbe used or maintained as a dumping
ground forrubbish.Trash,garbage or otherwaste shallnot be kept,or disposedof,on any Lot
exceptin sanitarycontainers.All equipment forthe storageor disposalof such materialshallbe
kept in a clean and sanitarycondition.No cans,bags,containersor receptaclesforthestoringor
disposalof trash,garbage,refuse,rubble,debris,or recyclablematerialsshallbe stored,kept,
placed or maintained on any Lot where visiblefrom any streetexcept solelyon a day designated
forremoval of garbage,rubbish,or recyclablematerials,and on which days only such cans,bags,
containers,and receptaclesmay be placed in frontof a residenceand besidea streetforremoval,
but shallbe removed from view before thefollowingday.
11.15 Detached Buildings.No detached accessorybuildings,including,but not limited
to,detached garages and storagebuildings,shallbe erected,placed or constructedupon any Lot
31 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
without the priorwrittenapproval of the ARC.Every outbuilding,inclusiveof such structuresas
detached garages,storagebuildings,greenhouses,doghouses,or children'splayhouses,shallbe
compatible with the dwellingto which itisappurtenantin terms of itsdesign and material
composition.
11.16 Fences and Hedges.Fences,wallsor hedges may be erectedor maintained on
any Lot subjectto locallaws and the Design &ConstructionGuidelinesand formal approvalby
theARC.No fencesshallbe constructedin the frontyard of any Lot,unlessthe frontyard faces
and iscontiguouswith a Common Area or Park.Fences may be erectedalong thepropertyline
inthe sideand rearyards of a Lot,provided saidfencingisnot locatedcloserto the streetthan
thefrontof theUnit.Refer to the Design &ConstructionGuidelinesformore specific
informationregardingapproved fenceheights,restrictions,and materials.
Notwithstanding the foregoing,theARC shallhave the rightand authorityto
approve variancesforreasonablecause or to alleviatehardship as determined in thesole
judgment of the ARC;provided however,theARC may not approve a variancewhich
contradictsthe zoning and/orsubdivisionordinancesof the City unlessthe City has previously
approved thevariance.
Unless otherwiseagreed between Owners,sideand rearyard fencesthatseparate
adjacentLots shallbe owned and maintained by theOwner on whose Lot the fenceexists,or if
thelocationisindefinite,such fence willbe maintainedjointlyby the Owners of both Lots,with
expenses sharedequally.Declaranthereby grantsto each Owner whose Lot containsa fence
(and to any Owner where thelocationof the fence in relationto itspropertylineisindefinite)an
easement over thoseportionsof theadjacentOwner's Lot as isreasonablynecessaryto maintain
the fence,subjecttoreasonableadvance noticeto the adjacentLot Owner.
The provisionsof thisSection 11.16 shallnot apply to Declarant.
11.17 General Landscaping.All landscapingmust comply with theapproved
landscapingplan and the landscapingrequirementsestablishedby the localmunicipalauthority
from time totime,and each Owner isrequiredtohave hisor her landscapingplan approved by
theARC.The Owner isresponsibleforlandscapingand maintainingthe areabetween the
Owner's propertylineand thestreet(i.e.,the areabetween the sidewalk and streetcurb).All
landscapingmust be maintained by the Owner pursuanttothe terms of Section6.2.
11.18 Antennae and SatelliteDishes.No exteriorantennas,satellitedishes,
microwave,aerial,tower,or otherdevices forthe transmissionor receptionof television,radio,
or otherforms of sound or electromagneticradiationmay be erected,constructed,or placed on
any Lot orUnit,unlessthey comply with the Design &ConstructionGuidelinesadopted and are
approved by theARC.Refer totheDesign Guideline foradditionalinformationregardingthe
applicablerules,regulationsand placement of such devices.Such rulesshallnot unreasonably
delay or increasethe costof installation,maintenance,or use or preclude receptionof a signalof
acceptablequality(theARC,in itssolediscretion,may determine what constitutesa signalof
32 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
acceptablequality).Such rulesand regulationsmay prohibitinstallationof exteriorsatellite
dishesor antennas ifsignalsof acceptablequalitycan be receivedby placingantennasinsidea
Unit without causing an unreasonabledelay or costincrease.
11.19 Solar Energy Panels.With the priorwrittenconsentof the ARC,an Owner may
installa ground-mounted or roof-mounted SolarEnergy Panel on itsLots.
The ARC may adopt additionalrulesand regulationsgoverning the installation,safety,
placement,and screeningof a SolarEnergy Panel.For purposes of thisSection,"SolarEnergy
Panel"means a aneldevice or s stem or combination of aneldevicesor s stems thatrelieson
directsunlightas an energy source,includinga panel deviceor system or combination of panel
devicesor systems thatcollectssunlightforuse in theheatingor coolingof a structureor
building,theheatingor pumping of water,and the generationof electricity.
11.20 Clothes Hanging Devices.Clotheshanging devicesexteriortoa Unit shallbe
temporary,unaffixedstructuresnot toexceed six(6)feetinheight and shallnot be placed nearer
to any streetabuttingthe Lot than thesideyard setbacklineor theback of theUnit constructed
on the Lot.Clotheshanging devicesshallbe screened from publicview as approved by theARC.
11.21 Window Treatments.Aluminum foil,reflectivefilm,newspapers or similar
treatmentsshallnot be placed on windows or glassdoors.
11.22 Oil and Mining Operations.No oildrilling,oildevelopment operations,oil
refining,quarryingor mining operationof any kind shallbe permittedupon or inany Lot,nor
shalloilwells,tanks,tunnels,mineral excavations,or shaftsbe permittedupon any Lot.No
derrickor otherstructuredesigned foruse inboring foroilor naturalgas shallbe erected,
maintained or permittedupon any Lot.No tank forthe storageof oilor otherfluidsmay be
maintained on any of the Lots above thesurfaceof theground.
11.23 Garages.Garages may be used as Declarant'ssalesofficesbeforepermanent
occupancy ofthemain structure;however,salesofficesmust be convertedto garagesbefore
permanent occupancy.With the exceptionof periodswhen garages areused by theDeclarantas
salesoffices,a garage shallbe maintained solelyforthe storageof automobiles,and no garage
may be enclosedor otherwiseused forhabitation(exceptthe second storyof a two-storygarage,
ifpermittedby localordinances),nor may any garage door be removed except when necessaryto
repairorreplacea garage door with the same type of garage door.
11.24 Setback Lines.All Units and otherstructures(includingfences),permanent or
temporary,habitableor uninhabitable,must be constructed,placed and maintained in conformity
with setbackstandardsimposed by the localgovernmental jurisdictionalauthority.
11.25 Athleticand Recreational Facilities.Outdoor athleticand recreationalfacilities
such as basketballhoops,swing setsand sportcourtsof a permanent nature shallnotbe placed
on any Lot inthe Subdivisionbetween the streetand the frontof a Unit;placement ofthese
33 -Amended and Restated Declarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
facilitiesof a permanent natureelsewhere on the Lot must be approved inadvance by theARC.
Temporary facilitiesincludingoutdoor athleticand recreationalfacilitiessuch as basketball
hoops may be placed on any Lot,provided thatsuch facilitiesareremoved from view when not
inuse but not laterthan atthe end of each day.Temporary facilitiesincludingoutdoor athletic
and recreationalfacilitiessuch as basketballhoops,hockey goals,etc.shallnot be placed on any
streetwithinthe Subdivision.
11.26 Water and Sewage Systems.No individualwater supply system or sewage
disposalsystem shallbe permittedon any Lot,includingbut not limitedtowater wells,cesspools
or septictanks.
11.27 Exterior Holiday Decorations.Lightsor decorationsmay be erectedon the
exteriorof Units incommemoration or celebrationof publiclyobserved holidaysprovided that
such lightsor decorationsdo not unreasonably disturbthe peacefulenjoyment of adjacent
Owners by illuminatingbedrooms,creatingnoise or attractingsight-seers.Holiday decorations
or lightsforany publiclyobserved holidaybetween December 1 and December 31 of any year,
may not be displayedbeforeNovember 15thof any year.For otherholidays,decorationsor lights
may not be displayedmore than two (2)weeks in advance of theholiday.
All lightsand decorationsthatarenot permanent fixturesof theUnit which arepartof the
originalconstructionor have been properlyapproved as permanent improvements by theARC
shallbe removed within thirty(30)days afterthe holidayhas ended.
11.28 Retaining WaHs.Retainingwallsmay be constructedon a Lot only ifin
compliance with any adopted Design &ConstructionGuidelinesand only ifapproved in advance
by the ARC.Retainingwallsmay extend intotherequiredfront,sideor rearsetbacklinesof a
Lot.The ARC may requireany retainingwall which exceeds two (2)feetin heightbe designed
by a qualifiedprofessionalengineerlicensedtopracticeengineeringinthe Stateof Montana.
Retainingwallsconstructedby theDeclarantshallbe exempt from thisSection 11.28.
11.29 Household Chemicals.Owners shallbe prohibitedfrom dumping or otherwise
disposingof household chemicals withinthe Property,including,but not limitedto,cleaning
agents,automotive fluids,paint,solventsand othertoxicchemicals.
11.30 Prohibited Plants.Owners shallbe prohibitedfrom plantingthe following
speciesof plantson the Lots:
(a)Cystisusscoparius,commonly known as Scotch broom;
(b)Hedera helix,commonly known as English ivy;
(c)Lythrum salicaria,commonly known as purpleloosestrife;
(d)Phalarisarundinacea,commonly known asreed canary grass;and
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Norton Ranch
(e)Rubus discolor,commonly known as Himalayan blackberry.
11.31 Rezoning Prohibited.No Owner may apply to thelocalzoning authorityto
rezone a Lot to any classificationallowingcommercial,institutionalor othernon-residentialuse.
This restrictionshallnot apply toDeclarantor torezoning of a Future Development Lot priorto
constructionof theinitialUnits on a Future Development Lot.
11.32 Lot Consolidation and Division.The Owner of two adjoiningLots,with the
approval oftheARC and appropriatemunicipal authority,may electto consolidatesuch Lots
intoone Lot.Such consolidationissubjectto any applicablemunicipal ordinances,and the ARC
may impose reasonableconditionsand restrictionson grantingapproval of the Lot consolidation,
including(butnot limitedto)imposing additionalmaintenance and landscapingrequirements
and imposing additionallimitationson use of the consolidatedLot.The Lot consolidationwill
be effectiveupon recordinginthe OfficialRecords of GallatinCounty,Montana a declarationof
the Owner statingthatthe two Lots areconsolidated.The declarationwillincludea written
consent tothe Lot consolidationexecuted on behalfof the ARC by atleastone member thereof
and shallcontaina descriptionof any restrictionsand conditionsimposed as a conditionof such
approval.Thereafter,and except ifotherwiseprovided by theARC as a conditionofits
approval,the consolidatedLots willconstituteone Lot forallpurposes under thisDeclaration,
including(butnot limitedto)votingrightsand assessments.No Lot may be furthersubdivided.
This restrictionshallnot apply to Declarantor to subdivisionof a FutureDevelopment Lot prior
to constructionof theinitialUnits on theFuture Development Lot.
11.33 Drainage AlterationProhibited.The surfacewater drainage contoursof each
Lot shallconform totheapproved gradingplan establishedby theDeclarant.No Owner shallfill
or alterany drainageswale establishedby the Declarant,nor shallany Owner installlandscaping
orotherimprovements thatdivertsurfacewater runofffrom the drainagepatterns,swales and
easements establishedby the Declarantwithout thepriorwrittenapproval of the ARC.
ARTICLE 12-SPECIAL DECLARANT AND BUILDER RIGHTS
In additionto any rightsor easements reservedto Declarant or Builderselsewhere in this
Restated Declarationor any of the otherGoverning Documents,Declarantand/orBuilders(as
applicable)shallhave the followingrightsinrespecttothe Subdivision:
12.1 Development and Sales Activities.
12.1.1 So long as Declarantowns any Lot withinthe Subdivision,Declarant
shallhave therightto constructand maintain upon portionsof the Common Areas and any Lots
owned by Declarantsuch facilitiesand activitiesas Declarant,initssoleopinion,may requireor
desirein connection with the constructionand saleof Units and Lots withinthe Subdivision,
including(butnot limitedto)businessand constructionoffices(withinUnits or in freestanding
trailers);signs,banners and flags;model units;and salesoffices(withinUnits or in freestanding
35 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
trailers),subjectto compliance with governmental ordinances.Declarantshallalsohave
easements foraccessto and use of the Common Areas forsuch facilitiesatno charge.
12.1.2 So long as a Builderowns any Lot withinthe Subdivision,theBuilder
shallhave the rightto constructand maintain upon any Lot owned by the Builder such facilities
and activitiesastheBuilderreasonablyrequiresor desiresinconnection with the construction
and saleof Units on Lots owned by theBuilder,including(butnot limitedto)businessand
constructionoffices(withinUnits or in freestandingtrailers);signs,banners and flags(subjectto
Section 11.8.7);model Units;and salesoffices(withinUnits or in freestandingtrailers),subject
torulesand restrictionsestablishedby Declarantfrom time totime and subjectto compliance
with governmental ordinances.
12.2 Control of and Changes in Development Plan.Every Owner,by acceptanceof
the deed to theirLot,acknowledges thatthe Subdivisionisa multi-phasedmaster planned
community,the development of which islikelytoextend over many years,and thatchanges in
themaster plan willlikelyoccur as the development of the Subdivisionproceeds.EACH
OWNER WAIVES THE RIGHT TO PROTEST,CHALLENGE OR OTHERWISE OBJECT
TO CHANGES MADE OR PROPOSED BY DECLARANT IN THE DEVELOPMENT PLAN
FOR THE SUBDIVISION OR IN THE USES,DENSITY,BUILDING RESTRICTIONS,OR
USE RESTRICTIONS APPLICABLE TO THE PROPERTY BEYOND THE BOUNDARIES
OF THAT SHOWN ON THE RECORDED SUBDIVISION PLAT FOR THE PHASE WITHIN
WHICH SUCH OWNER'S LOT IS LOCATED.The rightsand limitationssetforthinthis
Section12.2 shallcontinuein effectuntilDeclarantno longerowns any Lot withinthe
Subdivision.
12.3 Right to Transfer or Assian Declarant Rights.Any or allof Declarant'sspecial
rightsand obligationssetforthinthisRestatedDeclarationor any otherGoverning Documents
may be transferredin whole or inpartby Declarantby writteninstrumentexecuted and
acknowledged by Declarantand recorded intherealpropertyrecordsforGallatinCounty,
Montana.The foregoingsentenceshallnot precludeDeclarantfrom permittingotherpersons to
exercise,on a one time or limitedbasis,any rightreservedtoDeclarantinthisRestated
Declarationwhere Declarantdoes not intendtotransfersuch rightinitsentirety,and in such case
itshallnot be necessarytorecordany writtenassignment unlessnecessarytoevidence
Declarant'sconsent tosuch exercise.
ARTICLE 13-ANNEXATION AND REMOVAL
13.1 Annexation by Declarant.Declarantmay from time totime and initssole
discretionannex tothe Subdivisionas "AdditionalProperty"any realpropertynow orhereafter
acquiredby it,and may alsofrom time totime initssolediscretionpermit otherowners of real
propertytoannex therealpropertyowned by them intotheSubdivision.The rightsreserved
unto Declarantto subjectadditionalrealpropertytothe RestatedDeclarationshallnot be implied
or construed so as to impose any obligationupon Declarantto subjectany of such additionalreal
propertytothisRestatedDeclarationor tothejurisdictionof the Association,nor any obligation
36 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
tobuild improvements of any kind on any annexed realproperty.The annexation ofsuch real
propertyshallbe accomplished as follows:
(a)The owner or owners of such realpropertyshallrecordan amendment to
thisRestatedDeclarationwhich shallbe executed by orbear the approval of Declarantand shall,
among otherthings,describethe realpropertytobe annexed,establishland classificationsforthe
AdditionalProperty,establishany additionalor differentlimitations,uses,restrictions,covenants
and conditionswhich are intendedtobe applicableto such property,determine whether such
propertywillbe subjectto allexistinguses,restrictions,covenants and conditions,and declare
thatsuch propertyisheld and shallbe held,conveyed,hypothecated,encumbered,used,
occupied and improved subjectto thisRestatedDeclaration.Any such annexationshallbe
effectiveupon thefilingforrecord of such amendment to thisRestated Declarationinthe
OfficialRecords of GallatinCounty,Montana,unlessotherwiseprovided therein.
(b)The propertyincluded in any such annexation shalltherebybecome a part
of the Subdivisionand bound by the terms of thisRestatedDeclaration,and Declarantand the
Associationshallhave and shallaccept and exerciseadministrationof thisRestatedDeclaration
with respectto such AdditionalProperty.
(c)Notwithstanding any provisionapparentlyto the contrary,an amendment
tothisRestatedDeclarationwith respectto any AdditionalPropertymay:
(i)establishsuch new land classificationsand such limitations,uses,
restrictions,covenants and conditionswith respectto such AdditionalPropertyas Declarantmay
deem tobe appropriateforthe development of the AdditionalProperty;and
(ii)with respectto existingland classifications,establishadditionalor
differentlimitations,uses,restrictions,covenants and conditionswith respecttosuch Additional
Propertyas Declarantmay deem to be appropriateforthedevelopment of such Additional
Property.
(d)There isno limitationon thenumber of Lots which Declarantmay create
or annex to the Subdivision,except as may be establishedby applicableordinancesof the local
governmental authority.Similarly,thereisno limitationon therightof Declaranttoannex
Common Area,except as may be establishedby applicableordinancesof the localgovernmental
authority.Declarant'srightto annex realpropertyintothe Subdivisionshallterminateon the
Conversion Date.
(e)Upon annexation,additionalLots so annexed intotheSubdivisionshallbe
entitledtovotingrightsas setforthinArticle2 above.
(f)The formula tobe used forreallocatingthe common expenses ifadditional
Lots areannexed intotheSubdivisionissetforthinArticle3 above.
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Norton Ranch
(g)No consent orjoinderof any Class A member or otherpartyexcept the
recordowner of theland being annexed shallbe necessaryto effectany annexationmade
pursuantto thisSection13.1.
13.2 Annexation by Action of Owners.At any time aftertheTurnover Meeting,the
Board may requestapproval of the Owners forthe annexationof additionalpropertyintothe
Subdivisiontobe subjectto allof the terms of thisRestated Declarationtothesame extentas if
originallyincludedherein.No such annexation shallbe effectiveunlessapproved by atleast
sixtypercent(60%)of the vote of theOwners,and the consent of the Declarantso long as the
Declarantisa ClassB member.Any propertythatisadjacenttoor contiguous with existing
propertysubjecttothisRestatedDeclaration(even ifsuch propertyislocatedacrossa street)
may be annexed heretoaccording to the foregoingrequirements;provided,however,thatno such
annexation shallbe effectivewithout the consent and joinderof the owners of the propertytobe
annexed.Such annexation shallbe evidenced by an amendment tothisRestatedDeclaration
signedby the presidentand secretaryof theAssociationcertifyingthatthe amendment was
adopted inaccordance with thisRestated Declaration,acknowledged inthemanner provided for
acknowledgment of deeds,and recorded inthe OfficialRecords of GallatinCounty,Montana.
For purposes of votingon an annexation pursuanttothisSection 13.2,Declarantshallbe treated
as a Class A member with one (1)vote per Lot owned.
13.3 Removal by Declarant.Declarantmay from time to time and in itssole
discretionremove or withdraw any partof thePropertyfrom the Subdivision,provided that
Declarantobtainsthe writtenconsent of the owner of the realpropertyremoved from the
Subdivision.The removal of a partof theProperty shallbe accomplished as follows:
(a)The owner or owners of such realpropertyshallrecordan amendment to
thisRestatedDeclarationwhich shallbe executed by or bear the approval of Declarantand shall,
among otherthings,describetherealpropertytobe removed from the Subdivisionand declare
thatsuch realpropertyisno longer subjecttothe terms of thisRestatedDeclaration.Any such
removal shallbe effectiveupon the filingforrecordof such amendment to thisRestated
Declarationinthe OfficialRecords of GallatinCounty,Montana,unlessotherwiseprovided
therein.
(b)The propertyremoved from the Subdivisionshallno longerbe bound by
the terms ofthisRestatedDeclarationand thisRestatedDeclarationshallno longerencumber
such removed property.
(c)The Lots removed from theSubdivisionshallhave no votingrightsinthe
Associationunder Article2 above from and aftertheeffectivedateof such removal.The Lots
remaining inthe Subdivisionafterthe removal,however,shallcontinueto have thevotingrights
setforthin saidArticle2.
(d)The formula thatwillbe used forreallocatingthe common expenses if
Lots areremoved from the SubdivisionissetforthinArticle3 above.
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Norton Ranch
(e)There isno limitationon the realpropertythatDeclarantmay remove
from the Subdivision,provided thatDeclarantcomplies with therequirementsof thisSection
13.3.Declarant'srightto remove realpropertyfrom the Subdivisionshallterminateon the
Conversion Date.
(f)No consent orjoinderof any Class A member or otherpartyexcept the
recordowner of the realpropertybeing removed from the Subdivisionshallbe necessaryto
effectany removal made pursuanttothisSection 13.3.
ARTICLE 14-MORTGAGEES
14.1 Notice of Delinquency.An institutionalholder,insureror guarantorof a
Mortgage who provides a writtenrequestto theAssociationwillbe entitledto timelywritten
noticeof any delinquency inthepayment of an assessment or failuretoperform any other
obligationunder the Governing Documents by the Owner of a Lot subjectto itsMortgage which
isnot cured within sixty(60)days.
14.2 Reimbursement of FirstMortgagees.FirstMortgagees may,jointlyor singly,
pay taxesor othercharges which arein defaultand which may or have become a charge against
theCommon Areas and may pay overdue premiums on casualtyinsurancepoliciesor securenew
casualtyinsurancecoverage upon thelapseof an Associationpolicy.FirstMortgagees making
such payments shallbe entitledtoimmediate reimbursement from theAssociation.
ARTICLE 15-AMENDMENT
15.1 General Amendments.
15.1.1 Except as otherwise specificallyprovided inthisArticle,theRestated
Declarationmay only be amended by Owners holding atleastseventy-fivepercent(75%)of the
votesof the Association,and theconsent of theDeclarantso long as theDeclarantisa ClassB
member.In no event shallan amendment under thisSection15.1,limitor diminishany rightof
DeclarantreservedinthisRestatedDeclarationwithout thewrittenconsentof Declarant.
15.1.2 An amendment tothisRestatedDeclarationmay be proposed by a
majorityoftheBoard or by atleastthirtypercent(30%)of the Owners.
15.1.3 Upon approvalof an amendment asprovided herein,thepresidentand
secretaryof the Associationshallexecute an instrumentamending thisRestatedDeclarationand
certifyingthattheamendment was adopted inaccordance with thisRestatedDeclaration,which
certificationshallbe properlyacknowledged inthe manner of acknowledgment of deeds,and the
Board,or otherduly appointed and authorizedpersons,shallrecordthe instrumentamending this
RestatedDeclarationin theOfficialRecords of GallatinCounty,Montana.No amendment to
thisRestatedDeclarationiseffectiveuntilrecorded,and the effectivedateof an amendment is
thedateof recording,unlessa laterdate isindicatedin such amendment.
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Norton Ranch
15.2 Declarant Amendments.In additionto specificamendment rightsgranted
elsewhere inthisRestated Declaration,the Declarantreservestherighttounilaterallyamend this
RestatedDeclarationforany purpose untilconveyance of thefirstLot inthe Subdivisiontoa
person otherthan Declarant.Thereafter,Declarantmay unilaterallyamend thisRestated
Declarationifsuch amendment isnecessaryto (a)bringthisRestated Declarationinto
compliance with any provisionof law,including(butnot limitedto)regulatoryamendments
permittedby Section 15.3;(b)correctscriveners'or clericalerrors;(c)add AdditionalProperty
pursuantto Section 13.1;or (d)remove partof the Propertyfrom the Subdivisionpursuantto
Section 13.3.Declarant shallalsohave therightto unilaterallyamend thisRestatedDeclaration
forany otherpurpose priortothe Turnover Date provided thattheamendment has no material
adverseeffectupon the rightsof any Owner,unlesssuch Owner consentsto such change in
writing.
15.3 Regulatory Amendments.Notwithstanding any otherprovisionsof thisArticle
15,Declarantshallhave the righttounilaterallyamend thisRestatedDeclarationpriorto the
Tumover Meeting in ordertocomply with therequirementsof the FederalHousing
Administration,the United StatesDepartment of Veterans Affairs,theFarmer's Home
Administrationof theUnited States,theFederalNationalMortgage Association,the Government
NationalMortgage Association,theFederalHome Mortgage Loan Corporation,any department,
bureau,board,commission or agency of theUnited Statesor the Stateof Montana or any
corporationwholly owned,directlyor indirectly,by theUnited Statesorthe StateofMontana
which insures,guaranteesor providesfinancingfora planned community or lotsin a planned
commumty.
ARTICLE 15-REMEDIES
16.1 Remedies.Ifany defaultby any Owner under the provisionsoftheRestated
Declarationor otherGoverning Documents shalloccur,theAssociationand any Owner shall
have each and allof therightsand remedies which may be provided forinthisRestated
Declarationand any of theotherGoverning Documents,and those which may be availableatlaw
or inequity,and may prosecuteany actionor otherproceedings againstsuch defaultingOwner
and/orothersforenforcement of any lien,statutoryor otherwise,includingforeclosureof such
lienand the appointment of a receiverforthe Lot and ownership interestof such Owner,or for
damages orinjunction,or specificperformance,or forjudgment forpayment of money and
collectionthereof,or forany combination of remedies,or forany otherrelief.No rightsor
remedies hereinprovided or availableatlaw or inequityshallbe deemed mutually exclusiveof
any othersuch remedy.Any and allof rightsand remedies may be exercisedatany time and
from time to time,cumulativelyor otherwise,by theAssociationor any Owner.
To theextentallowed by law,notwithstandingany otherprovisionof thisRestated
Declarationor otherGoverning Documents,theAssociationshallnot expend in excess of $5,000
forattorneyfeesand costsforany reasonunlesssuch expenditureisfirstapproved by Owners
holding atleastfiftypercent(50%)of the vote rightsintheAssociation.The foregoing
limitationshallnot apply to actionsfordelinquentassessmentsor otherchargesunder this
40 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
RestatedDeclarationor the Goveming Documents;actionsto appointa receiver;actionsto
summarily abate,enjoinand remove a structureor conditionthatviolatesthisRestated
Declarationor theotherGoveming Documents;or forthedefenseof theAssociationof an action
orproceeding brought againstthe Association(exceptfornon-mandatory counterclaims).
All expenses of theAssociationin connectionwith any actionsor proceedings,including
courtcostsand attorneys'feesand otherfeesand expenses,and alldamages,liquidatedor
otherwise,togetherwith interestthereonatthemaximum ratepermittedby law from the due date
untilpaid,shallbe charged to and assessedagainstsuch defaultingOwner,and shallbe added to
and deemed partofhisorher respectiveassessment (tothe same extentas the lienprovided
hereinforunpaid assessments)upon the Lot and upon allof hisadditionsand improvements
thereto,and upon allof hispersonalpropertyupon the Lot.
16.2 Attornevs'Fees.Ifan actionor proceeding iscommenced to enforcethe terms
of thisRestatedDeclaration,the prevailingparty shallbe entitledtoitsattomey feesand costsin
such suitor actiontobe fixedby thetrialcourt,and inthe eventof an appeal,thecostof the
appeal,togetherwith reasonableattomey fees,to be setby theappellatecourt.In addition
thereto,theAssociationshallbe entitledto itsreasonableattomey feesincurredin any
enforcement activitytakento collectdelinquentassessments,whether or not suitor actionis
filed.
ARTICLE 17-GENERAL TERMS
17.1 Term.The covenants and restrictionsof thisRestatedDeclarationshallrun with
and bind the land fora term of twenty (20)years from thedatethisRestatedDeclarationis
recorded,afterwhich time they shallbe automaticallyextended forsuccessiveperiodsof twenty
(20)yearsunlessamended or terminatedas provided inArticle14.
17.2 Rights and Obligations.The provisionsof thisRestatedDeclarationand the
otherGoveming Documents and therightsand obligationsestablishedtherebyshallbe deemed
tobe covenants running with the land and shallinureto thebenefitof,and be bindingupon,each
and allof the Owners and theirrespectiveheirs,representatives,successors,assigns,purchasers,
granteesand Mortgagees.By therecordingor the acceptanceof a deed conveying a Lot or any
ownership interestin theLot whatsoever,theperson towhom such Lot or interestisconveyed
shallbe deemed to accept and agreetobe bound by and subjectto allof the provisionsofthis
RestatedDeclarationand theotherGoverning Documents,whether or not mention thereofis
made in saiddeed.
17.3 Waiver.No restriction,condition,obligationor provisioncontainedinthis
RestatedDeclarationshallbe deemed to have been abrogated or waived by reason of any failure
toenforcethe same,irrespectiveof thenumber of violationsor breaches thereofthatmay have
occurred and thenumber of times thatthepertinentrestriction,condition,obligationor provision
was not enforced.
41 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
17.4 Sever ability.Invalidationorpartialinvalidationof any provisionof thisRestated
Declarationshallnot affectany of theremaining provisionsof the RestatedDeclaration.
17.5 Personal Pronouns.All personalpronouns used in thisRestatedDeclaration,
whether used inthe masculine,feminine orneutergender,shallincludeallothergenders;the
singularshallincludethe plural,and viceversa.
17.6 Headings.The headings containedin thisRestatedDeclarationareforreference
purposes only and shallnot inany way affectthemeaning or interpretationof thisRestated
Declaration.
17.7 Conflicts.Ifthereisa conflictbetween the terms of thisRestatedDeclaration
and any otherGoverning Documents,thisRestatedDeclarationshallcontrol.
17.8 Security.The Associationmay,but isnot obligatedto,maintainor support
certainactivitieswithinthe Subdivisiondesigned toincreasesecuritywithinthe Subdivision.
NEITHER THE ASSOCIATION NOR THE DECLARANT SHALL IN ANY WAY BE
CONSIDERED INSURERS OR GUARANTORS OF SECURITY WITHIN THE
SUBDIVISION,AND NEITHER PARTY SHALL BE LIABLE FOR ANY LOSS OR
DAMAGE BY REASON OF FAILURE TO PROVIDE ADEQUATE SECURITY OR
INEFFECTIVENESS OF SECURITY MEASURES UNDERTAKEN.
17.9 Termination of Original Declaration.Declaranthereby terminatesthe Original
Declarationsuch thatthe OriginalDeclarationno longerencumbers any partoftheProperty.
IN WITNESS WHEREOF,Declar nthas executed and deliveredthisRestated
Declarationas of the day of ,2011.
DECLARANT:
NORTON PRO ERTIES,LLC,
an Oregon L e bilityCompany
ACKNOWLEDGMENT
42 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
STATE OF OREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged beforeme this\#day of NT',
2011,by Kevin Spencer,theManager of NORTON PROPERTIES,LLC,an Oregon limited
liabilitycompany,on behalfof the company.
NOTARY PUBLIC-OREGON Notary Public in and forthe Stateof OregonCOMMISSIONNO.458862
MYcomissioNExPIRESJULY182015 My Commission expires:1-tb -&\$
[Signaturescontinueon the followingpage]
43 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
NORTON RA H HOMES,LLC,
an Oregon Li te abilityCompany
By:
Name:/EV SE ^'d
Title:9;10 yd
ACKNOWLEDGMENT
STATE OF OREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged beforeme this\day of Otto ,
2011,by Kevin Spencer,the=hdembe.of NORTON RANCH HOMES,LLC,an Oregon limited
liabilitycompany,on behalfof the company.*Manager
-PrintName:At MLq 0 .6 Le
KIMB L G RIE Notary Publicin and forthe Stateof Oregon
NOTARY PUBUC-ORE$ON My Commission expires:T -\$.20\6COMMISSIONNO.458862
MY COMMISSIONEXPIRESJULY18201
44 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
EXHIBIT A
PROPERTY SUBJECT TO RESTATED DECLARATION
Real propertylocatedin theCity of Bozeman,County of Gallatinand Stateof Montana,being
more particularlydescribedas follows:
Norton East Ranch SubdivisionPhase 1,recorded on February 16,2011,asDocument
Number 2382592 in the OfficialRecords of GallatinCounty,Montana.
EXHIBIT A
EXBIBIT
BYLAWS OF
NORTON RANCH COMMUNITY ASSOCIATION
TABLE OF CONTENTS
Page
ARTICLE I NAME AND LOCATION........................................................................................1
ARTICLE IIDEFINITIONS ........................................................................................................1
2.1 "Association"...........................................................................................................1
2.2 "Board"....................................................................................................................1
2.3 "Conversion Date"...................................................................................................1
2.4 "Declarant"..............................................................................................................1
2.5 "Declaration"...........................................................................................................1
2.6 "Director".................................................................................................................1
2.7 "Governing Documents"..........................................................................................2
2.8 "Lot"........................................................................................................................2
2.9 "Member"................................................................................................................2
2.I0 "Owner"...................................................................................................................2
2.11 "Plat"........................................................................................................................2
2.12 "Property"................................................................................................................2
2.13 "Turnover Meeting".................................................................................................2
2.14 Other Terms .............................................................................................................2
ARTICLE IIIMEMBERSHIP AND VOTING RIGHTS ............................................................3
3.1 Membership .............................................................................................................3
3.2 Suspension...............................................................................................................3
3.3 Voting Rights...........................................................................................................3
ARTICLE IV MEETINGS OF MEMBERS .................................................................................4
4.1 InitialMeeting..........................................................................................................4
4.2 Turnover Meeting ....................................................................................................4
4.3 Annual Meetings......................................................................................................4
4.4 SpecialMeetings......................................................................................................4
4.5 Notice of Meetings...................................................................................................5
4.6 Place of Meetings.....................................................................................................5
4.7 Adjournment of Meetings........................................................................................5
4.8 Quorum ....................................................................................................................5
4.9 Majority Vote...........................................................................................................6
4.10 Proxies......................................................................................................................6
4.11 Fiduciaryand Corporate Owners.............................................................................6
4.12 Voting by Mail or ElectronicBallot........................................................................6
ARTICLE V BOARD OF DIRECTORS ......................................................................................8
5.1 Number and Qualification........................................................................................8
5.2 Appointment of Directors........................................................................................8
5.3 Electionof Directors................................................................................................9
5.4 Removal...................................................................................................................9
5.5 Resignation..............................................................................................................9
5.6 Vacancies .................................................................................................................9
5.7 Compensation ..........................................................................................................9
i-Table of Contents
5.8 Liabilityand Indemnificationof Directors,Officers,Manager and Managing
Agent........................................................................................................................9
5.9 SpecialCommittees ...............................................................................................10
5.I0 Powers of Board.....................................................................................................10
5.11 Duties of Board ......................................................................................................11
ARTICLE VI MEETINGS OF THE BOARD............................................................................13
6.1 InitialMeeting........................................................................................................13
6.2 Regular Meetings...................................................................................................13
6.3 SpecialMeetings....................................................................................................13
6.4 E mer gency Meetings .............................................................................................13
6.5 Closed Session.......................................................................................................13
6.6 Ad journm ent..........................................................................................................14
6.7 Board Meetings Open to allMembers...................................................................14
6.8 Place of Meetings...................................................................................................14
6.9 Notice of Meetings.................................................................................................14
6.10 Voting by the Board ...............................................................................................14
6.11 Quor um ..................................................................................................................14
6.12 Consent in Lieu of Meeting ...................................................................................15
6.13 Participationof Directorsby Telephonic Communication....................................15
ARTICLE VII OFFICERS OF ASSOCIATION........................................................................15
7.1 Enumeration of Officers........................................................................................15
7.2 Electionof Officers................................................................................................15
7.3 Term.......................................................................................................................15
7.4 Resignationand Removal ......................................................................................15
7.5 Vacancies ...............................................................................................................16
7.6 Duties.....................................................................................................................16
7.7 Execution of Instruments.......................................................................................17
7.8 Compensation ........................................................................................................17
ARTICLE VIII BUDGET,ASSESSMENTS,AND RESERVE STUDY.................................17
8.1 Budget....................................................................................................................17
8.2 Assessments...........................................................................................................17
8.3 Reserve Study ........................................................................................................17
ARTICLE IX BOOKS AND RECORDS ...................................................................................17
9.1 Books and Records ................................................................................................17
9.2 Examination of Record s.........................................................................................18
9.3 FinancialStatements..............................................................................................18
9.4 Tax Returns............................................................................................................18
9.5 Payment Vouchers .................................................................................................18
9.6 FiscalYear .............................................................................................................18
ARTICLE X INSURANCE.........................................................................................................19
ARTICLE XI DAMAGE OR DESTRUCTION BY CASUALTY ............................................19
ARTICLE XII RULES AND REGULATIONS.........................................................................19
ARTICLE XIII AMENDMENTS...............................................................................................19
13.1 General Amendments.............................................................................................19
13.2 DeclarantAmendments..........................................................................................20
ii-Table of Contents
13.3 Regulatory Amendments .......................................................................................20
ARTICLE XIV MISCELLANEOUS..........................................................................................20
14.1 Notices...................................................................................................................20
14.2 Waiver....................................................................................................................20
14.3 Severability............................................................................................................21
14.4 PersonalPronouns..................................................................................................21
14.5 Headings ................................................................................................................21
14.6 Conflicts.................................................................................................................21
14.7 Dissolution.............................................................................................................21
iii-Table of Contents
EXHIBIT C
LEGAL DESCRIPTION OF COMMON AREAS
Real propertylocatedin the City of Bozeman,County of Gallatinand Stateof Montana,being
more particularlydescribedas follows:
Those tractsidentifiedas "Open Space"on theplatofNorton East Ranch SubdivisionPhase
1,recordedon February 16,2011,asDocument Number 2382592 intheOfficialRecords of
GallatinCounty,Montana.
EXHIBIT C
EXHIBIT D
LEGAL DESCRIPTION OF FUTURE DEVELOPMENT LOTS
Real propertylocatedin theCity of Bozeman,County of Gallatinand Stateof Montana,being
more particularlydescribedas follows:
Lot 1,Block 1;Lots 1 and 2,Block 2;Lot 1,Block 3,as shown on the platofNorton East
Ranch SubdivisionPhase 1,recordedon February 16,2011,asDocument Number 2382592
intheOfficialRecords of GallatinCounty,Montana.
EXHIBIT D
EXHIBIT B
BYLAWS OF THE ASSOCIATION
EXHIBIT B
BYLAWS OF
NORTON RANCH COMMUNITY ASSOCIATION
ARTICLE I
NAME AND LOCATION
The name of the AssociationisNorton Ranch Community Association,a Montana
nonprofitcorporation,hereinafterreferredto as the "Association."
ARTICLE II
DEFINITIONS
2.1 "Association"
"Association"shallhave the meaning given inthe introductoryparagraph to these
Bylaws.
2.2 "Board"
"Board"shallmean the Board of Directorsof the Association.
2.3 "Conversion Date"
"Conversion Date"shallbe thedateupon which ClassB membership shallcease and be
convertedto ClassA membership.Such dateshallbe the date which isthe earlierof (i)the date
atwhich seventy-fivepercent(75%)of the totalLots anticipatedtobe createdwithinthe
Subdivisionhave been conveyed to ClassA members;(ii)ten (10)yearsafterconveyance of the
firstLot to a ClassA member;or (iii)upon writtenelectionofDeclarant.
2.4 "Declarant"
"Declarant"shallmean Norton Properties,LLC,an Oregon limitedliabilitycompany,
and Norton Ranch Homes,LLC,an Oregon limitedliabilitycompany,and theirrespective
successorsand assigns,who aredesignatedas such in writingby applicableDeclarant,and who
consent in writingtoassume the dutiesand obligationsof the Declarantwith respectto the Lots
acquiredby such successoror assign.
2.5 "Declaration"
"Declaration"shallmean and refertothe Amended and RestatedDeclarationof
ProtectiveCovenants,Conditions,and RestrictionsforNorton Ranch,and any amendments or
supplements theretomade inaccordance with itsterms.
2.6 "Director"
"Director"shallmean a member of the Board.
1 -Bylaws of theNorton Ranch Community Association
2.7 "Governing Documents"
"Governing Documents"shallmean the Declarationand the Articleof Incorporation,
Bylaws and Rules and Regulationsof theAssociation,allasmay be amended from time to time.
2.8 "Lot"
"Lot"shallmean the lotsof land indicatedas such on the Plat.
2.9 "Member"
"Member"or "Members"shallmean Declarantand every recordowner,whether one or
more persons or entities,of feesimple titleto any Lot,includingcontractsellers,but excluding
thosehaving an interestmerely as securityforthe performance of an obligation.There shallbe
two (2)classesof membership,Class A membership and Class B membership,as describedin
Section2.2 of theDeclarationand in Section3.3 of theseBylaws.All Members shallalsobe
Owners.
2.10 "Owner"
"Owner"or "Owners"shallmean Declarantand every record owner,whether one or
more persons or entities,of feesimple titleto any Lot,includingcontractsellers,but excluding
those having an interestmerely as securityforthe performance of an obligation.All Owners
shallalsobe Members.
2.11 "Plat"
"Plat"shallmean the latof Norton East Ranch SubdivisionPhase 1,recorded on
February 16,2011,as Document Number 2382592 in theOfficialRecords of GallatinCounty,
Montana,and any additionalplatsthatmay be annexed tothe SubdivisionasAdditionalProperty
(asdefinedinthe Declaration).
2.12 "Property"
"Propertv"shallmean the realpropertydescribedin Exhibit A tothe Declarationand
such additionstheretoas may be brought withinthejurisdictionof theAssociationand be made
subjectto the Declaration.
2.13 "Turnover Meeting"
"Turnover Meeting"shallbe the meeting calledby the Declarantforthepurpose of
turningover administrativeresponsibilityof theAssociationto the Members.
2.14 Other Terms
Capitalizedterms used hereinwithout definitionshallhave therespectivemeanings given
to them inthe Declaration.
2 -Bylaws of theNorton Ranch Community Association
ARTICLE III
MEMBERSHIP AND VOTING RIGHTS
3.1 Membership
The Declarantand every otherOwner of a Lot by virtueof being an Owner of a Lot shall
be a Member oftheAssociation.Membership shallbe appurtenantto and shallnot be separated
from ownership of any Lot.Transferof ownership of a Lot shallautomaticallytransfer
membership intheAssociation.Without any other actor acknowledgment,Owners shallbe
governed and controlledby theGoverning Documents.There shallbe two classesof
membership,ClassA membership and Class B membership,as describedinSection3.3 of these
Bylaws.
3.2 Suspension
All votingrightsof a Member shallbe suspended during any periodinwhich such
Member isdelinquentin thepayment of any assessment duly establishedpursuanttothe
Declarationor isotherwisein defaulthereunder or under any otherGoverning Documents.The
Board may alsosuspend theMember's righttouse of any of the Common Areas during such
period of default.
3.3 Voting Rights
The Associationshallhave two (2)classesof votingmembership:
A.Class A Membership.
ClassA Members shallbe allOwners with the exceptionof Declarant,provided that
Declarantshallbecome a Class A Member from and aftertheTurnover Date.Each Class A
Member isentitledto the greaterof (a)one (1)vote foreach Lot owned or (b)one (1)vote for
each Unit constructedon each Lot owned.When more than one (1)person holds an interestin
any Lot,allsuch persons shallbe Members,but the vote forsuch Lot shallbe exercisedasthey
among themselves determine;provided,however,thattheOwners of thatLot shallnot castmore
votesthan thenumber of votesallocatedtotheLot by thepreceding sentence.Ifthe co-Owners
of a Lot cannot agreeupon thevote forthe Lots,then the vote of theLot shallbe disregardedin
determining theparticularmatter atissue.
B.Class B Membership.
The Class B Member shallbe Declarant,provided thatthe Class B membership shall
terminateand become convertedto ClassA membership on the Conversion Date.The Class B
Member isentitledto the greaterof (a)three(3)votesfor each Lot owned or (b)three(3)votes
foreach Unit constructedon each Lot owned.
3 -Bylaws of the Norton Ranch Community Association
ARTICLE IV
MEETINGS OF MEMBERS
4.1 InitialMeeting
The initialmeeting of the Associationshallbe held withinone (1)yearafterthe
Associationisformed by filingof the Articlesof Incorporation.Declarantshallcalltheinitial
meeting by writtennoticeto each Owner inaccordance with therequirements of Section4.5,
except thatDeclarantshallfulfillthe roleof secretary.
4.2 Turnover Meeting
The Declarantshallcallthe Turnover Meeting forthepurpose of tuming over
administrativecontrolof theAssociationtotheClass A Members withinninety(90)days
followingthe Conversion Date.Ifthe Declarant does not callthe Turnover Meeting withinthe
time specified,any Owner may calltheTumover Meeting.Notice of theTumover Meeting shall
be given in accordance with therequirementsof Section4.5.At theTurnover Meeting,the
Members shallelecta new Board in accordance with the terms of ArticleV,whether or not a
quorum ispresentatsuch Tumover Meeting,and Declarantshalldelivertothe Board the
documents listedon attachedSchedule 1.
4.3 Annual Meetings
The Associationshallhold a meeting of theMembers each calendaryear.Such annual
meeting shallbe held on a dateand ata time designatedby the Board from time to time,and
noticeof the annual meeting shallbe sentto allMembers in accordance with the requirementsof
Section4.5.
At the annual meeting,new members of the Board shallbe appointed or elected(as
applicable)toreplacethosemembers whose terms have expiredpursuantto theterms of Section
5.3,and the Board shalltransactany otherbusinesswithinthepowers of the Association.
The orderofbusinessatannual meetings of the Associationshallbe:
(a)Callingof the rolland certifyingof proxies;
(b)Proof of noticeof meeting or waiver of notice;
(c)Reading of minutes of preceding meeting;
(d)Reports of officers;
(e)Reports of committees,ifany;
(f)Electionof Directors;
(g)Unfinishedbusiness;
(h)New business;and
(i)Adjournment.
4.4 SpecialMeetings
Specialmeetings of theAssociationmay be calledatany time by the president,by a
majorityoftheBoard,or by writtenrequestof Members entitledto castatleastfivepercent(5%)
4 -Bylaws of the Norton Ranch Community Association
of thevotesof the Associationpursuantto MCA 35-2-527(1)(a).Notice of a specialmeeting
shallbe sentto allMembers in accordance with therequirementsof Section4.5,and business
transactedata specialmeeting shallbe restrictedto thepurposes setforthinsuch notice.
4.5 Notice of Meetings
Writtennoticeof any meeting of the Associationshallbe given by thepresident,
secretaryor otherperson authorizedby the Board tocalla meeting atleastten(10)days but not
more than sixty(60)days before such meeting.The noticeshallbe hand-deliveredor sentby
prepaidfirst-classUnited Statesmail to each Member,and to each Mortgagee who has requested
notice,tothemailing addresslastappearing on thebooks ofthe Association(orto such mailing
addressas a Member or Mortgagee has designatedinwritingto the Associationatleastten (10)
days priorto thegivingof such noticeof themeeting).The noticeof a meeting shallstatethe
time and place ofthemeeting and thebusinesstobe placed on the agenda by theBoard fora
vote of theMembers,includingthe generalnatureof any proposed amendment to theArticlesof
Incorporationof theAssociation,the Declaration,theseBylaws,any budget or changes inthe
previouslyapproved budget thatresultin a change inassessment obligation,or any proposalto
remove a Director.Notice of a meeting may be waived by any Member atany time beforeor
afterthemeeting.No Member who ispresentata meeting may objecttothe adequacy or
timelinessof thenoticegiven.
4.6 Place of Meetings
Meetings of the Associationshallbe held withinten (10)miles of the Subdivision,atan
exactlocationdetermined by theBoard and designatedinthenoticerequiredby Section4.5.
4.7 Adjournment ofMeetings
Ifany meeting oftheMembers does not constitutea quorum,the Members who are
present,eitherinperson or by proxy,may adjourn themeeting to a datenot lessthan two (2)
days nor more than ten (10)days from the time of the originalmeeting withoutsending another
noticeto the Members under Section4.5.The adjournment provisionsof thisSectiondo not
apply to actionsproposed tobe taken by writtenballot.
4.8 Quorum
The presence atthemeeting of Members entitledto cast,eitherin person or by proxy,
twenty percent(20%)of thevotesof the Associationshallconstitutea quorum forany action,
unlessa greaterpercentageisrequiredelsewhere intheDeclarationor theseBylaws.The
subsequentjoinderof Member in the actiontaken ata meeting by signingand concurringinthe
minutes thereofshallconstitutethepresence of such Member forthepurpose ofdetermininga
quorum.When a quorum isonce presentto organize a meeting,itcannot be broken by the
subsequent withdrawal of a Member or Members.
5 -Bylaws of theNorton Ranch Community Association
4.9 Majority Vote
When a quorum ispresentatany meeting of theMembers,the vote of Owners holding
more than fiftypercent (50%)of the votesof the Associationpresent,inperson orby proxy,at
themeeting shallbe binding on allOwners forallpurposes,except where a higherpercentage
vote isrequiredby theGoverning Documents.
4.10 Proxies
A votemay be castinperson or by proxy.A proxy may requirethe holdertocasta vote
foror againstany specialproposalsetout in the noticecallingthe meeting.A proxy shallbe in
writingand filedwith thesecretarybefore or during themeeting.A proxy shallexpireeleven
(11)months afterthedateitwas signedunlessa shorterperiodisspecifiedintheproxy;
provided,however,thatappointment of a proxy isrevoked ifthe Member appointingtheproxy
(i)attendsany meeting and votesinperson,(ii)signsand deliverstothe secretaryeithera
writingstatingthatthe appointment of theproxy isrevoked or a subsequent appointment form,
or (iii)sellshisor her Lot.Unless withdrawn,a proxy given to anotherperson tovote ata
specificmeeting shallalsobe validatan adjourned meeting calledunder theprovisionsof
Section4.7.The Associationmust retainproxiesand ballotsforone (1)year from the dateof the
determinationof thevote.
4.11 Fiduciary and Corporate Owners.
An executor,administrator,conservator,guardianor trusteemay vote,inperson orby
proxy,atany meeting of theAssociationwith respectto any Lot owned orheld in such capacity,
whether or not thesame has been transferredto such person'sname;provided,however,that
such person must provide thesecretarywith writtenevidence satisfactoryto the secretarythatthe
person isthe executor,administrator,conservator,guardianor trustee,holding such Lot in such
capacity.Any person votingon behalfof a Lot owned by a corporationor otherentitymust
provide the secretarywith writtenevidence,satisfactoryto the secretary,thatsuch person isthe
duly constitutedrepresentativethereof.
4.12 Voting by Mail or ElectronicBallot.
Except as setforthin subsection(f)below,the Board,initsdiscretion,may providethata
vote,approval or consentof any Member be given by regularmail,electronicmail or facsimile
in accordance with theprocedure outlinedbelow.For purposes of thisSection,"writtenballot"
shallincludeany ballotdistributedby prepaidfirst-classUnited Statesmail,electronicmail or
facsimile.
(a)In the case of an electionof Board members by writtenballot,then in
additiontotheotherrequirementssetforthin thisSection4.12,the followingproceduresmust be
followed:
(i)theexistingBoard members must advisethe secretaryinwritingof
the names of proposed Board members sufficientto constitutea fullboard and of a date
atleastfifty(50)days aftersuch advice isgiven by which allvotes aretobe received;
6 -Bylaws of theNorton Ranch Community Association
(ii)the secretary,within five(5)days aftersuch adviceisgiven,must
give writtennoticeof the number of Board members to be electedand of thenames of the
nominees to allMembers;
(iii)the noticemust statethatany such Owner may nominate an
additionalcandidateor candidates,not to exceed the number of Board members to be
elected,by givingwrittennoticeof such nomination tothe secretaryon or beforea
specifieddate which must be fifteen(15)days from thedateafterthenoticewas given by
the secretary;and
(iv)five(5)days aftersuch specifieddate,the secretarymust give
writtennoticeto allMembers,statingthe number of Board members tobe elected,stating
thenames of allpersons nominated by the Board and by the Members on or beforethe
deadline,statingthateach Member may casta vote by mail and statingthedeadline
establishedby the Board by which such votesmust be receivedby the secretaryatthe
addressof theprincipalofficeof theAssociation(which must be specifiedinthe notice)
and thatvotesreceivedafterthatdate willnot be effective.
(b)Any actionthatmay be taken atany annual,regularor specialmeeting of
theAssociationmay be taken without a meeting ifthe Associationdeliversa writtenballotto
every Associationmember thatisentitledto vote on the matter.
(i)A writtenballotmust setfortheach proposed actionand provide an
opportunitytovote foror againsteach proposed action.
(ii)The Board must provide owners with atleastten (10)days'notice
beforewrittenballotsaremailed or otherwisedelivered.
(iii)If,atleastthree(3)days before writtenballotsare scheduled tobe
mailed or otherwisedistributed,atleasttenpercent(10%)of the Owners petitionthe
Board requestingsecrecyprocedures,a writtenpaper ballotmust be accompanied by a
secrecyenvelope,a returnidentificationenvelope to be signedby the owner and
instructionsformarking and returningthepaper ballot.In thisinstance,no electronic
mail votingwillbe accepted.Written paper ballotsthatarereturnedinsecrecyenvelopes
may not be examined or counted before thedeadlineforreturningballotshas passed.
(c)Mattersthatmay be voted on by writtenballotwillbe deemed approved or
rejectedas follows:
(i)Ifapproval of a proposed actionotherwisewould requirea meeting
atwhich a certainquorum must be presentand atwhich a certainpercentageof total
votescastisrequiredto authorizethe action,theproposal willbe deemed approved when
the dateforreturnof ballotshas passed,a quorum of Members has voted,and the
requiredpercentageof approving voteshas been received.Otherwise,theproposalwill
be deemed to be rejected.
7 -Bylaws of theNorton Ranch Community Association
(ii)Ifapprovalof a proposed actionotherwisewould requirea meeting
atwhich a specifiedpercentage of Owners must authorizethe action,theproposalwillbe
approved when thepercentage of totalvotescastin favorof the proposalequalsor
exceeds such requiredpercentage.The proposal shallbe deemed tobe rejectedwhen the
number of votescastinoppositionrendersapproval impossibleor when both thedatefor
retum of ballotshas passed and such requiredpercentagehas not been met.
(d)All solicitationsforvotesby writtenballotmust statethe following:
(i)Ifapprovalof the proposalby writtenballotrequiresthatthetotal
number of votes castequal or exceed a certainquorum requirement,the number of
responsesneeded tomeet such quorum requirement;
(ii)Ifapprovalof a proposal by writtenballotrequiresthata certain
percentageof totalvotescastapprove the proposal,the requiredpercentageof totalvotes
needed forapproval;and
(iii)Ifthematterbeing voted on isthe electionofDirectorstothe
Board,the additionalitems setforthinsubsection(a)above.
(e)All solicitationsforvotesby writtenballotmust specifythe periodduring
which the Associationwillacceptwrittenballotsforcounting,and a datecertainon which all
ballotsmust be retumed tobe counted.
(f)Action by writtenballotmay not substituteforthe Tumover Meeting or
the annual meeting of theAssociation.
ARTICLE V
BOARD OF DIRECTORS
5.1 Number and Qualification
The affairsof the Associationshallbe managed by a Board consistingof (a)three(3)
Directorspriortothe Tumover Meeting and (b)between three(3)Directorsand five(5)
DirectorsaftertheTumover Meeting,as determined by the Members from time totime.The
Directorsneed not be Members priorto theTurnover Meeting but shallbe Members afterthe
Tumover Meeting;provided,however,thatifa Lot isowned by more than one (1)Owner,only
one (1)Owner of thatLot may serveon the Board atany time.
5.2 Appointment of Directors
UntiltheTurnover Meeting,DeclarantshallappointallDirectors,and may remove and
replaceany Director,with or without cause,exceptthatDeclarantmay revocably or irrevocably
delegatethepower to appoint,remove and replaceDirectorshereunder by writteninstrument
deliveredtothe Associationnaming the partyto whom thepower to appointDirectorshas been
delegated.At and afterthe Turnover Meeting,theDirectorsshallbe electedin themanner
provided in Section5.3.
8 -Bylaws of theNorton Ranch Community Association
5.3 Election of Directors
At the Turnover Meeting,the Directorsappointedby Declarantor itsappointeeshall
submit theirresignationsand the Members shallelectnew Directorsas provided herein.Ifthree
(3)Directorsareelected,one (1)Directorshallbe electedfora term of one (1)year and two (2)
Directorsfora term of two (2)years.Iffive(5)Directorsare elected,two (2)Directorsshallbe
electedfora term of one (1)year and three(3)Directorsshallbe electedto servefora term of
(2)years.Thereafter,ateach annual meeting of the Association,theMembers shallelectthe
number of Directorsequal to thenumber whose terms are then expiring,each to serve a term of
two (2)years.Any Directormay servemore than one (1)term.Voting forDirectorsshallnot be
cumulative.
5.4 Removal
Any Director,otherthan a Directorappointedby Declarant,may be removed,with or
without cause,by Owners holding atleasta majorityof the votingrightsin theAssociationwho
arepresent,inperson or by proxy,atany meeting of the Members atwhich a quorum ispresent.
No removal of a Directoriseffectiveunlessthe matter ofremoval was includedin thenoticeof
the meeting and the Directorwhose removal isproposed isgiven the opportunitytobe heard at
themeeting.At themeeting,the Members shallelecta replacement Directorto servethe
remainder of thereplacedDirector'sterm.
5.5 Resignation
Any Directormay resignatany time by sending a writtennoticeof such resignationto
the secretary.Unless otherwisespecifiedin such notice,a resignationshalltake effectupon
receiptof thenoticeby the secretary.
5.6 Vacancies
Vacancies on the Board caused by thedeath,resignation,or removal of a Directorshall
be filledby vote of the majorityoftheremaining Directors,even ifthey constitutelessthan a
quorum.Any Directorso electedshallservethe remainder of thereplacedDirector'sterm.
5.7 Compensation
No Directorshallreceivecompensation forany servicehe or she may renderto the
Association.However,any Directormay be reimbursed forhisor her actualout-ofpocket
expenses reasonablyincurredin theperformance of hisor her duties.
5.8 Liabilityand Indemnification of Directors,Officers,Manager and Managing
Agent
The Directorsand officersof theAssociationshallnot be liabletothe Associationor the
Members forany mistake ofjudgment,negligence,or otherwiseexcept fortheirown willful
misconduct or bad faith.The Associationshallindemnify and hold harmless each Directorand
officerand themanager or managing agenton behalfof the Associationunlesssuch contract
9 -Bylaws of theNorton Ranch Community Association
shallhave been made in bad faithor contrarytothe provisionsof the Declarationorof these
Bylaws.Each Directorand officerand the manager or managing agent,ifany,shallbe
indemnified by theAssociationagainstallexpenses and liabilities,includingattorneys'fees,
reasonablyincurredor imposed upon them in connectionwith any proceeding towhich they may
be a party,or which they may become involvedby reason of being or having been a Director,
officer,manager or managing agent and shallbe indemnified upon any reasonablesettlement
thereof;provided,however,thereshallbe no indemnity ifthe Director,officer,manager or
managing agent isadjudged guiltyof willfulnonfeasance,misfeasance or malfeasance in the
performance of theirduties.As to any manager or managing agentthisSectionshallonly be
applicableto thirdpartytortclaims up tothe amount of theAssociation'sliabilityinsurance
coverage and shallnot inany way apply to contractualliabilityor obligationsunder the
management contract.
5.9 SpecialCommittees
The Board by resolutionmay designateone or more specialcommittees,each committee
to consistof two (2)or more Members which,tothe extentprovided in saidresolution,shall
have and may exercisethe powers setforthin saidresolution.Such specialcommittee or
committees shallhave such name or names as may be determined from time totime by the
Board.Such specialcommittees must keep regularminutes of theirproceedings and reportthe
same totheBoard when required.The members of such specialcommittee or committees
designatedshallbe appointed by the Board or thepresident.The Board or the presidentmay
appointMembers to fillvacancieson each of saidspecialcommittees occasioned by death,
resignation,removal,or inabilityto actforany extended period of time.
5.10 Powers of Board
The businessand affairsof the Associationshallbe managed by the Board.The Board
may exerciseallofthepowers of a nonprofitcorporationunder the Montana Nonprofit
CorporationAct (beingChapter 2,Title35 of the Montana Code),except to extentthe powers of
the Board are limitedby theGoverning Documents or the laws of the Stateof Montana.The
Board shallhave thepower to:
(a)To adopt and publishtheRules and Regulationsgoverning theuse of
Common Areas,and the personalconduct of the Members and theirgueststhereon,and to
establishfinesfortheinfractionthereof;
(b)To suspend a Member's votingrightsand/orrighttouse the Common
Areas (otherthan streetsand roadways)during any period in which such Member isin defaultin
thepayment of assessments leviedby theAssociation.Such rightsmay alsobe suspended,after
noticeand a hearing,fora period not toexceed sixty(60)days foran infractionof the Rules and
Regulationsor a violationof the Declaration;
(c)To declarethe officeof a Directortobe vacant in theevent such Director
shallbe absentfrom three(3)consecutiveregularmeetings of theBoard withoutjustcause
having been furnishedto and acceptedby theBoard;
10 -Bylaws of the Norton Ranch Community Association
(d)To adopt an annual budget fortheoperationof theAssociation;
(e)To levy and collectassessments,latefees,interestand finesas provided in
the Governing Documents,includingfilingliensagainstLots and institutinglegalproceedingsto
collectsuch assessments,latefees,interestand fines;
(f)To appointand disband such committees as the Board deems appropriate;
(g)To establish,disburseand maintain such pettycash as isnecessaryfor
efficientlycarryingon thebusinessof theAssociation;
(h)To engage the servicesof a manager,an independent contractor,or such
employees and contractorsas itdeems necessary,and toprescribetheconditions,compensation
and dutiesof theirwork.Such power shallincludeauthorityto enterintomanagement
agreements with otherpartiesto manage,operateorperform allor any partof the affairsand
businessof the Association;
(i)To execute alldeclarationsof ownership fortax assessment purposes with
regardtothe Common Areas,ifany,on behalfof allOwners;
(j)To borrow funds to pay costsofoperationof theAssociationwith the
approval of sixtypercent(60%)of theMembers presentata meeting of the Members atwhich a
quorum ispresent;
(k)To granteasements or rights-of-wayto any utilitycompany,publicagency
or toany otherentity;
(1)To protector defend the Common Areas from lossor damage by suitor
otherwise,and to provide adequate reservesformaintenance and replacement of theCommon
Maintenance Areas;
(m)To adjusttheamount,collectand use any insuranceproceedsto repair
damage or replacedamaged or lostproperty,and ifproceeds are insufficienttorepairdamaged
or replacelostproperty,to assessthe Owners inproportionateamounts to cover thedeficiency;
(n)To enforcethe provisionsof theGoverning Documents and toenjoinand
seek damages from any Owner forviolationof such Governing Documents;and
(0)To exerciseany additionalor differentpowers necessary or desirablefor
thepurpose of carryingout the functionsof the Associationpursuant to the Governing
Documents or otherwisepromoting thegeneralbenefitof theMembers of theAssociation.
5.11 Duties of Board
Itshallbe the duty of theBoard:
(a)To cause tobe kept a complete recordof allitsactsand corporateaffairs
and topresenta statementthereoftotheMembers atthe annualmeeting of theMembers or at
11 -Bylaws of the Norton Ranch Community Association
any specialmeeting,when such statementisrequestedinwritingby one-fourth(1/4)of thevotes
of the Members who are entitledto vote;
(b)To superviseallofficers,agentsand employees of thisAssociation,and to
see thattheirdutiesare properlyperformed;
(c)To fixthe amount of allassessmentsrequiredor permittedunder the
Declarationagainsteach Lot,and to send writtennoticeof each such assessment to every Owner;
(d)To issue,or to cause an appropriateofficertoissue,upon demand by any
person,a certificatesettingforthwhether or not assessmentshave been paid in respectto a
particularLot.A reasonablecharge may be made by theBoard forthe issuanceof these
certificates,and theinformationcontainedon the certificatesshallbe binding on theAssociation.
(e)To procure and maintain adequate liabilityand propertyinsuranceon
propertyowned by the Associationor otherpropertyforwhich theAssociationhas an obligation
under the DeclarationortheseBylaws to insureand,ifdeemed appropriate,insuranceon the
behalfof any Director,officer,employee,or agent of the Associationagainstany liability
assertedagainsthim or her and incurredby him or her in any such capacityor arisingout of his
or her statusas such;
(f)To cause allofficers,employees or agents,having fiscalresponsibilityto
be bonded,as itmay deem appropriate;
(g)To cause the Common Maintenance Areas to be maintained;
(h)To maintain a currentmailing listof the Members and Mortgagees who
have requestednoticeof meetings and otherevents;
(i)To fileannual tax returnsforthe Association;
(j)To adopt a budget annually forthe Associationto manage and operatethe
Subdivision.Within thirty(30)days afteradoptingtheannual budget or any modified budget,
the Board shallseta date fora meeting of the Members to considerratificationofthebudget and
send noticeof such meeting tothe Members in accordance with Section4.5.Unless theMembers
holding a majorityof the votesintheAssociationvote torejectthebudget,thebudget isratified,
whether or not a quorum ispresentatthemeeting.IftheBoard failsto adopt a budget or ifthe
Members vote torejectthebudget,the lastadopted and ratifiedbudget fortheAssociationshall
continuein effect;and
(k)To perform allotherdutiesof theAssociationand the Board as setforthin
the Governing Documents.
12 -Bylaws of theNorton Ranch Community Association
ARTICLE VI
MEETINGS OF THE BOARD
6.1 InitialMeeting
The initialmeeting of the Board shalloccur eitherimmediately afteror withinfourteen
(14)days afterthedatethe initialmeeting of theMembers pursuantto Section4.1.Notice of the
initialmeeting shallbe senttoeach Directorand the Members inaccordance with the
requirementsof Section6.9.
6.2 Regular Meetings
Regular meetings of the Board may be held atsuch time as shallbe determined from time
to time by a majorityof theDirectors.Notice of regularmeetings shallbe deliveredtoeach
Directorand theMembers in accordance with therequirementsof Section6.9.
6.3 Special Meetings
Specialmeetings oftheBoard may be calledatany time by thepresidentor a majorityof
theDirectors.Notice of specialmeetings shallbe deliveredto each Directorand the Members in
accordance with therequirementsof Section6.9.
6.4 Emergency Meetings
Emergency meetings may be held withoutnotice,ifthereason fortheemergency is
statedin theminutes of themeeting.
6.5 Closed Session
At thediscretionof the Board,the followingmattersmay be consideredin closedsession:
(a)Personnel matters;
(b)Consult with legalcounsel or considercommunications with legal
counsel;and
(c)Discuss likelyor pending litigation,mattersinvolvingpossibleviolations
of the Governing Documents,and mattersinvolvingliabilityof a Member tothe Association.
The Board shallvote inan open meeting whether tomeet inclosed session.The motion
shallstatespecificallythepurpose forthe closedsession.Reference to the motion and stated
purpose forthe closedsessionshallbe includedinthe minutes of themeeting.The Board shall
restricttheconsiderationof mattersduring the closedportionof a meeting toonly thosepurposes
specificallyexempted and statedin themotion.No motion,or otheractionadopted,passed or
agreed to inclosedsession,may become effectiveunlesstheBoard,followingthe closedsession,
reconvenes in open meeting and votes in the open meeting on such motion,or otheractionwhich
isreasonablyidentified.The requirementsof thisSectionshallnot requirethe disclosureof
informationin violationof applicablelaw or which isotherwiseexempt from disclosure.
13 -Bylaws of theNorton Ranch Community Association
6.6 Adjournment
Any meeting of the Board may be adjourned by a majorityof theDirectorspresentatthe
meeting,even ifa quorum isnot present.When a meeting isadjourned forfewer than thirty(30)
days,no noticeof the resumption or reconvening of the adjournedmeeting need be given other
than by announcement atthe meeting atwhich such adjournment takesplace.
6.7 Board Meetings Open to allMembers
Except of closedsessions,allmeetings of the Board shallbe open to theMembers,
provided thatno Member shallhave therighttoparticipateinthe Board's meeting unlesssuch
Member isalsoa member of the Board.The presidentshallhave the rightto exclude any
Member who disruptsthe proceedingsata meeting of the Board.
6.8 Place of Meetings
Meetings of theBoard shallbe held withinten (10)miles of the Subdivision,atan exact
locationdetermined by the Board and designatedin thenoticerequiredby Sections6.2 and 6.3.
6.9 Notice of Meetings
The secretaryshallgive writtennoticeto each Directorof any meeting of theBoard at
leastthree(3)priortothe date setforsuch meeting,statingthe purpose,time and locationof the
meeting.Notice shallbe sentto theaddressof each Directoras listedon thebooks of the
Association,or tosuch otheraddressas a Directormay designateby writtennoticetothe
secretarygiven atleastten (10)days priorto the giving ofnoticeof themeeting.Notice of any
meeting may be waived by any Directoratany time before or afterthemeeting.No Director
who ispresentata meeting may objectto theadequacy ortimelinessof thenoticegiven.
For otherthan closed sessionmeetings,noticeof Board meetings shallalsobe given the
Members by postingata place or placeswithinthe Subdivisionlikelytobe seen by allMembers
atleastthree(3)days priorto the Board meeting,or by one ofthemeans describedin Section4.5
not lessthan ten (10)days priorto the Board meeting.
6.10 Voting by the Board
Each Directorshallhave one (1)vote.The votesof more than fiftypercent(50%)of
Directorspresentata meeting atwhich a quorum ispresentshallconstitutethe actof the Board.
6.11 Quorum
The presence inperson of a majorityof the Directorsshallconstitutea quorum forvoting
ata Board meeting.Iflessthan a quorum ispresentata meeting,a majorityof the Directors
presentatthemeeting may adjournthemeeting.At any adjourned meeting atwhich a quorum is
present,any businesswhich might have been transactedatthemeeting originallycalledmay be
transactedwithout furthernotice.
14 -Bylaws of theNorton Ranch Community Association
6.12 Consent in Lieu of Meeting
Any actionrequiredor which may be taken ata meeting of theBoard or a committee
thereofmay be taken without a meeting ifa consent inwriting,settingforththe actionso taken
or tobe taken,shallbe signed by allDirectorsor committee members as the case may be.
6.13 Participationof Directors by Telephonic Communication
Directorsor committees thereofmay participatein a meeting of the Board or a committee
by means by which allDirectorsor committee members participatingcan hear each otherduring
themeeting.Participationby such means shallconstitutepresencein person ata meeting.
ARTICLE VII
OFFICERS OF ASSOCIATION
7.1 Enumeration of Officers
The principalofficersof theAssociationshallbe thepresident,secretaryand treasurer,
each of whom shallbe electedby theBoard in accordance with Section7.2.The Board may
appointotherofficersas in itsjudgment may be desirable.Any two or more officesmay be held
by the same person,except forthe officesof presidentand secretary.All officersmust be
Members,or members of theirimmediate family,fiduciaries,beneficiariesor Mortgagees (and in
the case of Lots owned by corporations,trustsor partnerships,theofficesmay be held by
directors,officers,shareholders,trustees,partnersor employees of such organizations).
7.2 Election of Officers
The officersof the Associationshallbe electedby the Board and shallhold officeatthe
pleasureof the Board and untiltheirsuccessorsareelectedand qualified.Ifany officebecomes
vacant,theBoard shallelecta successortofulfillthe unexpired term atany regularmeeting of
the Board,or atany specialmeeting of the Board calledforsuch purpose.
7.3 Term
The officersof theAssociationshallbe electedby theBoard and shallhold officefora
periodof one (1)year,unlessan officerresignsor isremoved by theBoard or isotherwise
disqualifiedforservice.
7.4 Resignation and Removal
Any officerof the Associationmay be removed from office,with or without cause,upon
the affirmativevote of a majorityof the Board and a successorelectedatany regularmeeting of
the Board or atany specialmeeting of theBoard calledforsuch purpose.An officerof the
Associationmay resignatany time by givingnoticeto the secretary.Such resignationshalltake
effecton thedateof receiptof such noticeor atany latertime specifiedtherein;theacceptance of
such resignationshallnot be necessarytomake iteffective.
15 -Bylaws of the Norton Ranch Community Association
7.5 Vacancies
A vacancy in any officemay be filledby electionatany regularmeeting of the
Associationor ata specialmeeting of the Board calledforsuch purpose.The officerelectedto
filla vacancy shallserveforthe remainder of the term of theofficerhe or she replaces.
7.6 Duties
The dutiesof theofficersof the Associationareas follows:
President
The presidentshallbe the chiefexecutiveofficerof theAssociation.The presidentshall
presideatallmeetings of the Members and Board and shallhave allof thepowers and duties
which are usuallyincidenttotheofficeof the chiefexecutiveofficerof an Association,
including,but not limitedto,the power to appointcommittees from time to time asmay,inthe
president'sdiscretion,be appropriateto assistinthe conduct of the affairsof theAssociation.
Secretary
The secretaryshallkeep minutes of allproceedings of the Board and minutes of all
Associationmeetings.The secretaryshallattendtothegivingand servingof allnoticesto the
Members and Directorsand othernoticesrequiredby law.Associationrecordsshallbe kept by
the secretary,except forthoseof the treasurer.The secretaryshallperform allotherduties
incidentto the officeof secretaryof an associationand as may be requiredby the Directorsor the
president.In addition,the secretaryshallactas vicepresident,takingtheplace of thepresident
and performing such dutieswhenever the presidentisabsentor unable to act,unlessthe
Directorshave appointeda vicepresident.
Treasurer
The treasurershallbe responsibleforAssociationfunds and securitiesand shallbe
responsibleforsupervisingthemanaging agent and causingthe same to keep fulland accurate
financialrecordsand books of account showing allreceiptsand disbursements necessaryforthe
preparationof allrequiredfinancialstatements.The treasurershallreview thereportsand
statementsprovided by the managing agent with respecttothe depositof allfunds and other
valuableeffectsinsuch depositoriesas may from time totime be designatedby the Board,and
the disbursement of Associationfunds in accordance with the approved Associationbudget and
any specialauthorizationsfrom theBoard forunbudgeted items.The treasurershallin general
perform allotherdutiesincidenttothe officeof treasurerof an associationand such otherduties
as may be assignedby theBoard.The treasurershallcause allassessmentstobe depositedina
separatebank account in thename of theAssociationand allexpenses of theAssociationto be
paid from thataccount.
16 -Bylaws of theNorton Ranch Community Association
7.7 Execution of Instruments
All agreements,contracts,deeds,leasesand otherinstrumentsof the Association,except
checks,shallbe executed by such person or persons as may be designatedby generalor special
resolutionof the Board and,in the absence of any generalor specialresolutionapplicableto any
such instrument,then such instrumentshallbe signedby thepresident.All checks forlessthan
Two Thousand Four Hundred Ninety-Nine Dollars($2,499.00)may be signedby themanaging
agent or any duly electedofficerof the Association.All checks of Two Thousand Five Hundred
($2,500.00)or more shallrequirethe signaturesof atleasttwo (2)authorizedsignatories.
7.8 Compensation
Other thanreimbursement of reasonableout-of-pocketexpenses incurredon behalfof the
Association,no officerof theAssociationshallreceiveany compensation from theAssociation
foractingas an officer,unlesssuch compensation isauthorizedby a majorityvote of the
Members present,in person or by proxy,ata meeting of the Members atwhich a quorum is
present.
ARTICLE VIII
BUDGET,ASSESSMENTS,AND RESERVE STUDY
8.1 Budget
The Board shallannuallyprepare and adopt thebudget fortheAssociation,and calla
meeting of theMembers toratifythebudget,pursuantto Section3.1of theDeclaration.
8.2 Assessments
The Associationshalllevy and collectassessments and otherchargespursuanttothe
terms of Article3 of the Declaration.IfAdditionalPropertyisannexed to or removed from the
Subdivision,the common expenses of the Associationshallbe reapportionedpursuantto the
terms of Section3.13 or 3.14,respectively,of theDeclaration.
8.3 Reserve Study
The Declarantand Associationshallpreparea reservestudy pursuanttothe terms of
Section3.3 of theDeclaration.
ARTICLE IX
BOOKS AND RECORDS
9.1 Books and Records
The Associationand managing agent (ifapplicable)shallkeep (a)financialrecords
sufficientlydetailedforproper accounting purposes,includingan assessment rollforeach Lot
(b)detailedrecordsof theactionsof the Board and managing agent (ifapplicable)and minutes
of Board and Associationmeetings,(c)a listof Members entitledtovote atAssociationmeetings
and a listof allMortgagees whom have requestednoticeof meeting and otherevents,and (d)
17 -Bylaws of theNorton Ranch Community Association
otherdocuments,informationand recordsin sufficientdetailto enable the Associationto fully
declareto each Member thetruestatementof itsfinancialstatus.All Associationdocuments,
informationand recordsshallbe maintained within theStateof Montana atalltimes.
9.2 Examination of Records
The Associationshallmake availableto Members,Mortgagees,prospectivepurchasers
and theirprospectiveMortgagees,and the agentsor attorneysof any of them,currentcopiesof
the Declarationand theArticlesof Incorporation,Bylaws and rulesand regulationsof the
Association.All financialand otherrecordsof theAssociation,includingbut not limitedto
checks,bank recordsand invoices,arethepropertyof theAssociation,but shallbe made
reasonablyavailableforexamination and copying by any Member,or theMember's authorized
agents,and by any managing agent."Available"shallmean availableforinspectionupon
request,during normal businesshours or under otherreasonablecircumstances.The Association
may requiretherequestingpartyto pay a reasonablecharge to cover thecostof making the
copies.
9.3 Financial Statements
Within ninety(90)days afterthe end of each fiscalyear,the Board shalldistributeto
each Member and,upon request,any Mortgagee a copy of the annual financialstatementsof the
Association,consistingof a balance sheetand income and expense statementforthepreceding
fiscalyear.IfAnnual Assessments are$50,000 ormore,the financialstatementsofthe
Associationshallbe auditedby an independent certifiedpublicaccountant;provided,however,
thatthe auditmay be waived ifMembers holding atleastsixty-sevenpercent(67%)of thevotes
of the Associationvote,inperson or by proxy ata meeting of the Associationatwhich a quorum
ispresent,each yearto waive the audit.
9.4 Tax Returns
The Board shallcause to be filedthenecessarystateand federalincome taxreturnsfor
the Association.
9.5 Payment Vouchers
The method of approving payment vouchers (ifapplicable)forthemaintenance,upkeep
and repairof theCommon Maintenance Areas and payment forthe expense ofthe Association
willbe as establishedfrom time totime by the Board.
9.6 FiscalYear
The FiscalYear oftheAssociationshallbegin on thefirstday of January and end on the
31st day of December of every year,exceptthatthe firstfiscalyear shallbegin on the date of
incorporationof the Association.
18 -Bylaws of theNorton Ranch Community Association
ARTICLE X
INSURANCE
The Associationshallmaintain the insurancecoverages requiredby Article8 of the
Declaration.
ARTICLE XI
DAMAGE OR DESTRUCTION BY CASUALTY
Any damage toor destructionof the Common Areas or any otherareasthe Associationis
requiredto insureagainstan event of casualtyshallbe handled in accordance with theterms of
Article9 of theDeclaration.
ARTICLE XII
RULES AND REGULATIONS
The Board shallhave power to adopt and publishrulesand regulationsgoverning the
conduct of persons and the operationand use oftheLots and theCommon Areas asitmay deem
necessary or appropriateto assurethepeacefuland orderlyuse and enjoyment ofthe
Subdivision,and to establishfinesfortheinfractionthereof.Such rulesand regulationsmay be
adopted upon a majorityvote of the Directorspresentata meeting atwhich thereisa quorum
presentand asto which noticehas been given asprovided intheseBylaws.Such noticeshall
includea verbatim copy of allproposed rulesand regulations.No ruleor regulationshallbe
adopted without a copy thereoffirsthaving been deliveredormailed to each Member in
accordance with therequirementsof Section4.5.Upon adopting any such rulesand regulations,
the Board shallcause copiesthereoftobe deliveredtoeach Member.All such rulesand
regulationsbecome binding on allMembers and occupants of allLots upon thedate of delivery.
Any ruleor regulationwhich conflictswith these Bylaws or the Declarationshallbe nulland
void.
ARTICLE XIII
AMENDMENTS
13.1 General Amendments
Except as setforthbelow,any and allprovisionsof theseBylaws may be amended or
repealedand new Bylaws may be adopted atany annual meeting of theMembers,or atany
specialmeeting calledforthatpurpose,by atleasta majorityof the votesof the Members,and
thewrittenconsent of theDeclarantso long as the Declarantisa Class B Member.
Amendments or changes to theseBylaws may be proposed by eithera majorityof the
Board or by the Members holding atleastthirtypercent(30%)of the votesof theAssociation.
The proposed amendment must be inwritingand shallbe includedinthenoticeof any meeting
atwhich actionisto be taken thereon.
An amendment or change to theseBylaws shallnot be effectiveunlessitis(i)certifiedby
the presidentand secretaryof the Associationashaving been adopted in accordance with these
19 -Bylaws of the Norton Ranch Community Association
Bylaws and acknowledged inthe manner provided foracknowledgement of deeds,and (ii)
recordedinthe OfficialRecords of theGallatinCounty,Montana.
13.2 Declarant Amendments
Notwithstanding any provisionshereoftothecontrary,theDeclarantmay unilaterally
amend theseBylaws (i)atany time beforethe conveyance of the firstLot toa person otherthan
Declarant;(ii)tobring thisDeclarationintocompliance with any provisionof law,including,but
not limitedto,regulatoryamendments permittedby Section 13.3;(iii)tocorrectscriveners'or
clericalerrors;and (iv)as otherwisepermittedby applicablelaw.
13.3 Regulatory Amendments
Notwithstanding any otherprovisionsof thisArticleXIII,Declarantshallhave theright
tounilaterallyamend theseBylaws priorto theTurnover Meeting inorderto comply with the
requirementsof theFederal Housing Administration,the United StatesDepartment of Veterans
Affairs,theFarmer's Home Administrationof theUnited States,theFederalNationalMortgage
Association,the Government NationalMortgage Association,theFederal Home Mortgage Loan
Corporation,any department,bureau,board,commission or agency oftheUnited Statesor the
Stateof Montana or any corporationwholly owned,directlyor indirectly,by the United Statesor
the Stateof Montana which insures,guaranteesor providesfinancingfora planned community
or lotsin a planned community.
ARTICLE XIV
MISCELLANEOUS
14.1 Notices
All noticesto the Associationor to theBoard shallbe sentin careofthemanaging agent
or,ifthereisno managing agent,tothe principalofficeof the Associationor to such other
addressastheBoard hereaftermay designatefrom time to time.Any noticeto a Member,except
as otherwiseprovided in theseBylaws,shallbe sentby firstclassmail to the addressof Member
lastappearingon the books of theAssociation(ortosuch otheraddressastheMember has
designatedinwritingto the Association.
14.2 Waiver
No restriction,condition,obligationor provisioncontainedintheseBylaws shallbe
deemed to have been abrogatedor waived by reason of any failureto enforcethe same,
irrespectiveof thenumber of violationsor breaches thereofthatmay have occurred and the
number of times thatthe pertinentrestriction,condition,obligationor provisionwas not
enforced.
20 -Bylaws of theNorton Ranch Community Association
14.3 Severability
Invalidationor partialinvalidationof any provisionoftheseBylaws shallnot affectany
of theremaining provisionsof the Bylaws.
14.4 Personal Pronouns
All personalpronouns used intheseBylaws,whether used inthemasculine,feminineor
neutergender,shallincludeallothergenders;the singularshallincludetheplural,and vice
versa.
14.5 Headings
The headings contained in theseBylaws areforreferencepurposes only and shallnot in
any way affectthemeaning or interpretationof theseBylaws.
14.6 Conflicts
These Bylaws are intendedto comply with applicablelaw and theDeclaration.In case of
any irreconcilableconflict,applicablelaw and the Declarationshallcontrolover theseBylaws
(unlesstheseBylaws expresslyprovide otherwise)and any amendments hereto,and any rulesor
regulationsadopted hereunder.
14.7 Dissolution
Upon dissolutionof the Association,voluntarilyor otherwise,itshallautomaticallybe
succeeded by an unincorporatedassociationof the same name and having the same purposes.
All assets,property,powers,and obligationsof the Associationexistingpriorto dissolutionshall
thereupon automaticallyvestinthe successorunincorporatedassociation.
[Continued on the followingpage]
21 -Bylaws of theNorton Ranch Community Association
ADOPTION OF BYLAWS
Itishereby certifiedthattheseBylaws have been adopted by the Board of Directorsof
theAssociation,and by Norton PropertiesLLC,an Oregon limitedliabilitycompany,and Norton
Ranch Homes,LLC,an Oregon limitedliabilitycompany,DeclarantofNorton Ranch.These
Bylaws shallbe recorded inthe OfficialRecords of GallatinCounty,Montana,togetherwith the
Declaration.
Dated:,2011.
ASSOCIATION:
NORTON RANCH COMMUNITY
ASSOCIATION,a Montana nonprofit
corporation
By:
Name:Kevin Spencer
Title:Sole Director
DECLARANT:
NORTON PROPERTIES,LLC,an Oregon
limitedliabilitycompany
B y:
Name:Kevin Spencer
Title:Manager
NORTON RANCH HOMES,LLC,an
Oregon limitedliabilitycompany
By:
Name:Kevin Spencer
Title:Member
[Acknowledgments appear on thefollowingpage]
22 -Bylaws of the Norton Ranch Community Association
ACKNOWLEDGMENTS
STATE OF OREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged before me this_day of ,
2011,by Kevin Spencer,the Sole Directorof theNORTON RANCH COMMUNITY
ASSOCIATION,a Montana nonprofitcorporation,on behalfof the corporation.
PrintName:
Notary Publicinand forthe Stateof Oregon
My Commission expires:
STATEOFOREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged beforeme this_day of
2011,by Kevin Spencer,theManager of NORTON PROPERTIES,LLC,an Oregon limited
liabilitycompany,on behalfof the company.
PrintName:
Notary Publicin and forthe Stateof Oregon
My Commission expires:
STATE OF OREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged beforeme this_day of ,
2011,by Kevin Spencer,theMember of NORTON RANCH HOMES,LLC,an Oregon limited
liabilitycompany,on behalfof the company.
PrintName:
Notary Publicin and forthe Stateof Oregon
My Commission expires:
23 -Bylaws of theNorton Ranch Community Association
SCHEDULE 1
LIST OF INFORMATION AND DOCUMENTS
(a)The originalor a photocopy of therecorded Declarationand copiesof the Bylaws
and theArticlesof Incorporation,ifany,of the Subdivisionand any supplements and
amendments to theArticlesor Bylaws;
(b)A deed tothe Common Areas,unlessotherwiseprovided in the Declaration;
(c)The minute books,includingallminutes,and otherbooks and recordsof the
Associationand theBoard;
(d)All rulesand regulationsadopted by the Declarant;
(e)Resignationsof officersand members of theBoard who were appointedby
Declarant;
(f)A financialstatementconsistingofa balance sheetand an income and expense
statementforthepreceding 12-month period or the periodfollowingtherecordingof the
declaration,whichever periodisshorter;
(g)All funds of the Associationand controlof the funds,includingallbank records;
(h)All tangiblepersonalpropertythatispropertyof the Association,and an
inventoryof theproperty;
(i)Records of allpropertytax payments forthe Common Areas tobe administered
by the Association;
(j)Copies of any income tax returnsfiledby theDeclarantinthename of the
Association,and supportingrecords forthereturns;
(k)Allbank signaturecards;
(1)The Reserve Account establishedin thename of the Association;
(m)The reservestudy,includingallupdates and othersourcesof informationthat
serveas a basisforcalculatingreserves;
(n)An operatingbudget and a budget forreplacement of the Common Areas;
(0)A copy ofthefollowing,ifavailable:(A)The as-builtarchitectural,structural,
engineering,mechanical,electricaland plumbing plans;(B)The originalspecifications,
indicatingallsubsequentmaterialchanges;(C)The plansforunderground siteservice,site
grading,drainageand landscapingtogetherwith cabletelevisiondrawings;(D)Any otherplans
and informationrelevantto futurerepairor maintenance of the Common Areas;and (E)A listof
1 -Schedule 1
thegeneralcontractorand the electrical,heatingand plumbing subcontractorsresponsiblefor
constructionor installationof Common Areas;
(p)Insurancepolicies;
(q)Copies of any occupancy permitsissuedforthe Subdivision;
(r)Any otherpermitsissuedby governmental bodies applicabletothe Subdivisionin
forceor issuedwithinone yearbefore the date on which the Members assume administrative
responsibility;
(s)A listof any writtenwarrantieson the Common Areas thatare in effectand the
names of thecontractor,subcontractoror supplierwho made theinstallationforwhich the
warranty isin effect;
(t)A rosterof Members and theiraddressesand telephonenumbers,ifknown,as
shown on therecordsof the Declarant;
(u)Leases of the Common Areas and any otherleasesto which theAssociationisa
party;
(v)Employment or servicecontractsinwhich theAssociationisone ofthe
contractingpartiesor servicecontractsin which theAssociationor theowners have an obligation
or responsibility,directlyor indirectly,topay some or allofthefeeor charge of the person
performing theservice;and
(w)Any othercontractstowhich theAssociationisa party.
2 -Schedule 1