HomeMy WebLinkAbout020 Covenants - (2011-10-14) 1st AmendmentReturn 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:$574.00 Bend, 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
03/03/23
22203 Norton
East Ranch Ph.
5B FP
TABLE OF CONTENTS
Page
AR T ICLE 1 -DE FINIT 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 "Rulesand 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
i- TABLE OF CONTENTS
3.3 Replacement Reserve Assessments.........................................................................8
3.4 SpecificAssessments...............................................................................................9
3.5 SpecialAssessments. ...............................................................................................9
3.6 Reimbursement Assessments.................................................................................10
3.7 Commencement ofAssessments............................................................................10
3.8 ObligationforAssessments. ..................................................................................11
3.9 Lien forAssessments.............................................................................................11
3.10 Interest;Late Fees;Fines.......................................................................................12
3.11 Accelerationof Assessments. ................................................................................l 2
3.12 Certificateof Payment. ..........................................................................................12
3.13 ReallocationUpon Annexation of AdditionalProperty.........................................13
3.14 ReallocationUpon Removal of aPortionoftheProperty.....................................13
3.15 No Reimbursement toDeclarant............................................................................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 toCorrect..............................................................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 ofLots toCommon 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 S cope of Review. ...................................................................................................2I
7.4 SubmissionofPlans...............................................................................................21
7.5 PlanReview. ..........................................................................................................21
7.6 N on-conformingS tructures...................................................................................22
7.7 Imm unityofARC M emb ers..................................................................................22
7.8 Limited Review......................................................................................................22
7.9 Address forNotice.................................................................................................22
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7.10 Appearance and Design ofSubdivision.................................................................22
7.11 DeclarantExempt; Constructionby Declarant......................................................23
7.12 Approval ofBuilderPlans.....................................................................................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 TreeRemoval...................................................................................................28
11.3 No Improvements orFillMaterial.........................................................................2 8
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 VehiclesorVehicles inDisrepair...........................................................31
11.12 Maintenance or Repair ofVehicles........................................................................3 1
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 LotConsolidationand 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 Rightto Transferor Assign DeclarantRights........................................................36
ARTICLE 13 - ANNEXATION AND REMOVAL.................................................................... 36
13.1 Annexation by Declarant.......................................................................................36
13.2 Annexation by ActionofOwners..........................................................................38
13.3 Removal by Declarant............................................................................................38
ARTICLE 14 -- MORTGAGEES.................................................................................................39
14.1 Notice of Delinquency...........................................................................................39
14.2 Reimbursement ofFirstMort gagees......................................................................39
ARTICLE 1 5-AMENDMENT..................................................................................................39
15.1 GeneralAmendments.............................................................................................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
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When Recorded, Returnto:
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, isexecutedon 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 EastRanch SubdivisionPhase 1,recordedon February 16,
2011, asDocument Number 2382592 intheOfficialRecords ofGallatinCounty,
Montana; and
(b) The Norton East Ranch SubdivisionPhase 1 Declarationof Covenants and
Restrictions,recorded on February 16,2011,asDocument Number 2382596 in
the OfficialRecords ofGallatinCounty, Montana (the"OriginalDeclaration");
and
WHEREAS, Declarantdesiresto replacetheOriginalDeclarationwiththisRestated
Declaration.
NOW, THEREFORE, Declaranthereby declaresthatthe propertydescribedon attached
ExhibitA (the"Propertv")shallbe held,sold,hypothecated,and conveyed subjecttothe
covenants,conditions,and restrictionsdeclaredbelow, which shallbe deemed tobe covenants
running withthe landand imposed on and intendedtobenefitand burden each lotandother
portionsofthe Propertyinordertomaintain withinthe Propertya community of high standards.
Such covenants shallbe binding on allpartieshaving any right,titleorinterestthereinor any
1 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
partthereof,theirrespectiveheirs,personalrepresentatives,successorsand assigns,and shall
inureto thebenefitofeachowner thereof.
ARTICLE 1 -DEFINITIONS
1.1 "Additional Property"
"AdditionalProperty"shallmean any additionalpropertyannexed totheSubdivisionand
made subjecttothetermsofthisRestatedDeclaration.
1.2 "Alleys"
"Alleys"shallmean the streetswithintheSubdivisiondesignedas"Alley"on the
Plat.
1.3 "Annual Assessments"
"Annual Assessments" shallmean Base Assessments,Reserve Account Assessments,and
any SpecificAssessments which may be leviedby the Associationineachofitsfiscalyears
pursuantto thetermsof Article3.
1.4 "ARC"
"ARC" shallmean the architecturalreview committee established ursuanttothe terms
ofSection7.1.
1.5 "Association"
"Association"shallmean the Norton Ranch Community Association,aMontana
nonprofitcorporation,establishedforthepurposes setforthherein.
1.6 "Base Assessments"
"Base Assessments" shallmean theassessments imposed upon allLotsforservices
renderedor expenses incurredby the AssociationpursuanttothetermsofSection3.2.
1.7 "Board"
"Board" shallmean theBoard of Directorsof the Association.
1.8 "Builder"
"Builder"shallmean any individualor company who purchasesone ormore Lots forthe
purpose of constructingUnits forresaleto consumers inthe ordinarycourseofitsbusiness.
2 -Amended and RestatedDeclarationof ProtectiveCovenants, Conditions and Restrictionsfor
Norton Ranch
1.9 "Bylaws"
"Bylaws" shallmean theBylaws ofthe Association,asamended from timetotime.A
copy ofthe Bylaws isattachedheretoas ExhibitB.
1.10 "City"
"City"shallmean theCity of Bozeman, Montana.
1.11 "Common Areas"
"Common Areas" shallmean thoseportionsofthe Propertyowned orleasedby the
Associationforthe common useand benefitoftheOwners. 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 theCommon Areas,and shallalsomean any
areaswithinpublicrights-of-wayorlocatedon adjacentpropertythattheAssociationisrequired
to maintainpursuanttothetermsofthisRestatedDeclaration,or which the Board deems
necessary,desirableor appropriatefortheAssociationto maintain forthe common benefitofthe
Owners, including(butnot limitedto)theParks.
1.13 "Conversion Date"
"Conversion Date" shallbe the dateupon which theClassB membership ceasesto exist
and isconvertedto Class A membership. Such dateshallbe the datewhich istheearlierof (i)
thedateatwhich seventy-fivepercent(75%) ofthetotalLots anticipatedtobe createdwithinthe
Subdivisionhave been conveyed toClassA members; (ii)ten (10) yearsafterconveyance of the
firstLottoaClass A member; or (iii)upon writtenelectionofDeclarant.
1.14 "Declarant"
"Declarant"shallmean Norton Properties,LLC, an Oregon limitedliabilitycompany,
and Norton Ranch Homes, LLC, an Oregon limitedliabilitycompany, and theirrespective
successorsand assigns,who aredesignatedassuchinwritingby the applicableDeclarant,and
who consent inwritingtoassume thedutiesand obligationsof the Declarantwith respecttothe
Lots acquiredby such successoror assign.
1.15 "Design & Construction Guidelines"
"Design & ConstructionGuidelines"shallmean the design and constructionguidelines
adoptedby theARC orDeclarantpursuanttoSection7.2,asamended or modifiedfrom timeto
time.
3 -Amended and RestatedDeclarationofProtectiveCovenants, Conditionsand Restrictionsfor
Norton Ranch
1.16 "Directors"
"Directors"shallmean the members oftheBoard.
1.17 "Future Development Lot"
"FutureDevelopment Lot"shallmean any Lotintendedtobe developedorfurther
subdividedtoaccommodate additionalhousing products,including(butnotlimitedto)
singlefamily,apartments,townhomes, condominiums andotherhousing typespermittedby
the City.The initialFutureDevelopment Lots aredescribedon attachedExhibitD.
1.18 "Governing Documents"
"Governing Documents" shallmean thisRestatedDeclarationand theArticlesof
Incorporation,Bylaws and Rules and RegulationsoftheAssociation,allas may be amended
from timetotime.
1.19 "Improvement"
"Improvement" shallmean every structureor improvement of any kind,including,but
notlimitedto,a Unit,landscaping,patios,decks,fencesand walls(includingretainingwalls),
driveways,sidewalks,fixtures,storageshelters,pools,hot tubs,athleticfacilitiesand other
productsof constructionefforts(includingexteriorpainting,alterations,and reconstruction).
1.20 "Lot"
"Lot" shallmean each lotof landindicatedas suchon 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, orthepartysecuredor
beneficiaryofany recorded deed of trust,encumbering one ormore oftheLots. "First
Mortgagee" shallmean a holderofa Mortgage with priorityover allotherMortgages.
1.22 "Owner"
"Owner" shallmean Declarantand every recordowner, whether one or more personsor
entities,of fee simple titletoany Lot,includingcontractsellers,but excludingthosehaving 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 of GallatinCounty,Montana. The PlatdedicatestheParkstothe
City,but theAssociationwillmaintaintheParksasCommon Maintenance Areas.
1.24 "Plat"
"Plat"shallmean the latof Norton EastRanch SubdivisionPhase 1,recordedon
February 16,2011,as Document Number 2382592 intheOfficialRecords ofGallatinCounty,
Montana, and any additionalplatsthatmay be annexed totheSubdivisionas Additional
Property.
1.25 "Property"
"Propertv"shallmean therealpropertydescribedon the attachedExhibit A, plus such
AdditionalPropertyas may be made subjecttothisRestatedDeclaration,but excludingany real
propertyremoved from thejurisdictionofthisRestatedDeclaration.
1.26 "Reserve Account Assessments"
"Reserve Account Assessments" shallmean assessmentsestablishedpursuanttothe
termsofSection3.3.
1.27 "Restated Declaration"
"RestatedDeclaration"shallmean thisAmended and RestatedDeclarationof Protective
Covenants,Conditions,and RestrictionsforNorton Ranch, and any amendments or supplements
theretomade in accordance withitsterms.
1.28 "Rules and Regulations"
"Rules and Resulations"shallmean therulesand regulationsadoptedby theAssociation
from timetotime in accordance with ArticleXII oftheBylaws.
1.29 "SpecialAssessments"
"SpecialAssessments" shallmean any specialcharges establishedpursuanttotheterms
ofSection3.5.
1.30 "SpecificAssessments"
"SpecificAssessments" shallmean the charges imposed upon some, butlessthan,all
Lotsforservicesrenderedor expenses incurredpursuantto Section3.4.
5 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
1.31 "Subdivision"
"Subdivision"shallmean Norton Ranch, asthesame may be modified,expanded or
contractedpursuanttothetermsof thisRestatedDeclaration.
1.32 "Turnover Meeting"
"Turnover Meeting" shallmean themeeting oftheOwners calledtoturnovercontrolof
the AssociationtotheClassA members, asfurtherdescribedinthe Bylaws.
1.33 "Unit"
"Unit"shallmean an attachedordetachedresidentialdwellin intendedforoc anc
by a singlefamily,including(butnot limitedto)adetached singlefamilyhome, an apartment
locatedwithinamultifamilybuilding,an attachedtownhouse and acondominium unit.
ARTICLE 2-ASSOCIATION
2.1 Membership. The Declarantand every otherOwner ofaLot by virtueof
ownership of such Lotshallbe a member of the Association.Membership intheAssociation
shallbe appurtenanttoand shallnotbe separatedfrom ownership of any Lot. Transferof
ownership of aLot shallautomaticallytransfermembership intheAssociation.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, asdescribedin Section2.2.
2.2 Voting Rights. The Associationshallhave two (2)classesof voting
membership:
2.2.1 ClassA Membership.
Class A members shallbe allOwners withthe exceptionof Declarant,provided
thatDeclarantshallbecome aClass A member from and aftertheTurnover Date.Each ClassA
member isentitledtothegreaterof (a)one (1)voteforeach Lot owned or (b)one (1)votefor
eachUnitconstructedon each Lotowned. When more thanone (1)person holds aninterestin
any Lot,allsuch persons shallbe members, butthevoteforsuch Lotshallbe exercisedas they
among themselves determine;provided,however, thatthe Owners ofthatLot shallnotcastmore
votes than the number of votes allocatedto theLot by thepreceding sentence.Ifthe co-Owners
ofaLot cannot agree upon thevoteforthe Lots,thenthevote oftheLotshallbe disregardedin
determiningthe particularmatteratissue.
2.2.2 Class B Membership
The Class B member shallbe Declarant,provided thattheClass B membership
shallterminateand become convertedtoClass A membership on theConversion Date. The
6 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
ClassB member isentitledtothegreaterof (a)three(3)votesforeachLotowned or (b)three
(3)votesforeachUnitconstructedon eachLot owned.
2.3 Suspension. All votingrightsofan Owner shallbe suspended duringany period
inwhich such Owner isdelinquentinthe payment of any assessment duly establishedpursuant
toArticle3 orisotherwiseindefaultunderthe Governing Documents. The Board may also
suspend an Owner's rightstousetheCommon Areas duringsuch periodofdefault.
ARTICLE 3-ASSOCIATION FINANCES
3.1 Budgeting.
3.1.1 At leastsixty(60)days beforethebeginning ofeachfiscalyear,the
Board shallpreparea budget oftheestimatedexpenses ofthe Associationforthecoming year.
The estimatedexpenses inthe budget oftheAssociationshallinclude,inadditiontooperating
reserves,acontributiontotheReserve Account determinedinaccordancewith thetermsof
Section3.3 below. The budget shallalsoreflectthesourcesand estimatedamounts offundsto
coversuch expenses,which may includeany surplustobe appliedfrom prioryears,any income
expected from sourcesotherthanassessmentsleviedagainstthe Lots,and the amount estimated
tobe generatedthrough thelevy ofassessmentsagainstLots. Finally,the budget shall
differentiatebetween expensesapplicabletoallLotsversusexpensesapplicabletosome, butnot
all,Lots.
Estimatedoperatingexpenses and Reserve Account Assessments applicabletoall
Lots shallbe allocatedamong such LotsasBase Assessments pursuant to Section3.2below,
while estimatedoperatingexpenses and Reserve Account Assessments applicabletosome, but
notallLots,shallbe allocatedamong theaffectedLotsas SpecificAssessments pursuantto
Section3.4 below.
3.1.2 Within thirty(30) days afteradoptingtheannual budget,theBoard shall
setadatefora meeting oftheMembers to considerratificationofthe budget and sendnoticeof
such meeting totheMembers in accordance withSection4.5of the Bylaws. UnlesstheOwners
holding a majorityofthevotesintheAssociationvotetorejectthebudget,thebudget isratified,
whether ornota quorum ispresentatthemeeting.Ifthe Board failsto adopt a budget or ifthe
Owners voteto rejectthebudget,then the lastadopted and ratifiedbudget forthe Association
shallcontinuein effect.
3.1.3 The Board may revisethebudget and adjustthe assessmentslevied
pursuanttheretofrom timetotime during the year,subjecttothesame noticeandratification
procedures setforthabove.
3.2 Base Assessments. Upon determiningthe totalamount ofincome requiredtobe
generatedthrough the levyofBase Assessments as provided in Section3.1,the Associationshall
allocatesuch amount among theLots subjectto assessment (asdetermined under Section3.7
7 -Amended and RestatedDeclarationof ProtectiveCovenants, Conditions and Restrictionsfor
Norton Ranch
below) based on theformuladescribedinthefollowingsentence.The shareofBase
Assessments tobe assessedby the AssociationagainsteachLot subjecttoassessmentshallbe
representedby a fraction,the numerator ofwhich isthe number ofvotes assignedtothe
particularLotand the denominator ofwhich isthetotalnumber ofClass A votesassignedtoall
Lots subjectto assessment. Such fractionshallbe multipliedby thetotaldollaramount ofthe
Base Assessments inordertodetermine thedollaramount oftheBase Assessment tobe levied
againsteachLot subjectto assessment.
Declarantmay, butisnot obligatedto,reducetheBase Assessment forany fiscal
yearby payment ofa subsidy,which may be eithera contribution,an advance againstfuture
assessments due from Declarant(ifany),ora loan,asdetermined by Declarantinitssole
discretion.Any such subsidy shallbe disclosedasalineitemintheincome portionof the
budget. Payment ofsuch subsidyin any year shallnot obligateDeclarantto continuepayment of
such subsidyin futureyears,unlessotherwiseprovided inawrittenagreement between the
Associationand Declarant.
3.3 Replacement Reserve Assessments.
3.3.1 As a partof any Annual Assessment the Board shallobtainfrom Owners
contributionsforareserveaccount (the"Reserve Account") establishedforallitemsof property
includedwithinthe Common Maintenance Areas which willnormallyrequiremajor
maintenance,repairorreplacement,inwhole orinpart,inmore thanone (1)and lessthan thirty
(30)years,forexteriorpainting(ifthe Common Maintenance Areas includesexteriorpainted
surfaces),and forotheritems,whether arenotincludedwithinthedefinitionofCommon
Maintenance Areas,iftheAssociationhas responsibilitytomaintain;provided,however, thatthe
Reserve Account need not includeitems thatcouldreasonablybe funded from Base Assessments
or SpecificAssessments orotherfunds oraccountsofthe Association,or items forwhich the
Owners (and nottheAssociation)areresponsibleformaintenance,repairand replacementunder
thetermsofthe Governing Documents.
3.3.2 The Declarantshallconductan initialreservestudy(a"Reserve Studv")
todeterminetheReserve Account requirements.The Reserve Study shallinclude:(a)
identificationof allitemsforwhich reservesareorwillbe established;(b)includethe estimated
remaining usefullifeofeachitemasof the dateof the Reserve Study;and (c)includeforeach
item,as applicable,an estimatedcostof maintenance,repairand replacement attheend of the
item'susefullife.The Board shallthereafterperiodicallyconducta Reserve Study or reviewand
update an existingReserve Study to determine the Reserve Account requirements.
3.3.3 ContributionstotheReserve Account ("Reserve Account
Assessments") shallbe inan amount (a)initiallydetermined by Declarantbased upon theresults
oftheinitialReserveStudy or otherreliableinformationand (b)thereafterby theBoard from
timetotimebased on the resultsof theperiodicReserve Study (orreview and update of an
existingReserve Study).Reserve Account Assessments shallbe allocatedtoLots inthe same
manner asBase Assessments under Section3.2and SpecificAssessments under Section3.4,as
8 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
applicable,and shallbe paid totheAssociationmonthly,quarterlyor annuallyasdeterminedby
theBoard.
Reserve Account Assessments paid intotheReserve Account arethepropertyof
the Associationand arenot refundabletosellersorOwners ofLots.The Reserve Account must
be a separateaccount holding only ReserveAccount Assessments and otherfundsintendedtobe
used forthesame purpose maintainedata federallyinsuredbank orotherdepositoryinstitution
withbranchesin Montana, and any fundsintheReserve Account may be expended only forthe
purposes forwhich the Reserve Account was establishedas describedabove.
3.3.4 Afterthe Turnover Meeting, theBoard may borrow fundsfrom the
Reserve Account to meet high seasonaldemands on the Association'sregularoperatingfundor
to meet unexpected increasesin expenses ifthe Board has adopted a resolution,which may be an
annual continuingresolution,authorizingtheborrowing ofsuchfunds.Not laterthanthe
adoptionofthebudget forthe followingyear,theBoard shalladoptby resolutionawritten
payment plan providingforrepayment oftheborrowed funds withinareasonableperiodoftime.
3.3.5 At any time afterthesecond (2")year aftertheTurnover Meeting,
futurereplacementreserveassessmentsforthe Reserve Account may be increasedor reduced by
thevoteofOwners ofLots representingseventy-five(75%) oftheOwners.
3.3.6 Nothing inthisSection3.3prohibitsthe prudentinvestmentof Reserve
Account funds,subjecttoany constraintsimposed by the Board orthe Governing Documents.
3.4 SpecificAssessments. The Associationshallhave theauthorityto levy
assessmentstosatisfythe expenses of undertaking a particularprojectoreffortthatbenefitsome,
but lessthan all,oftheLots (such assessments,"SpecificAssessments"). SpecificAssessments
shallbe allocatedequallyagainstthe Owners ofthoseLotsthatbenefitfrom theproject,effortor
otherspecificundertakingby the Association,unlessthe Association(initsreasonable
discretion)determinesthatanothermethod of apportionment more accuratelyreflectsthebenefit
receivedby such Owners (such as allocationtoeach Owner based on the number ofvotes
entitledtobe castby thatOwner).
3.5 Special Assessments. InadditiontotheBase Assessments authorizedabove,the
Board may levy"SpecialAssessments" againstan Owner orallOwners inthe followingmanner
forthefollowingpurposes:
(a) To correcta deficitinthe operatingbudget,by voteof a majorityofthe
Board;
(b) To collectadditionalamounts necessarytomake repairsor renovationsto
theCommon Areas orCommon Maintenance Areas ifsufficientfundsarenotavailablefrom the
operatingbudget orReserve Account, by voteofa majorityoftheBoard; and
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Norton Ranch
(c) To make capitalacquisitions,additionsor improvements, by voteof
Owners holdingatleastsixtypercent(60%) ofthe votingrightsoftheAssociation.
SpecialAssessments shallbe leviedagainstallLots subjecttoassessmentinthesame
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)afailureto comply withthisRestatedDeclarationortheotherGoveming
Documents hasnecessitatedan expenditureof monies by the Associationtoeffectcompliance or
resultedinthe impositionofa fineorpenaltyagainstsuchOwner or suchOwner's Lot;or (b)
correctiveactionof theAssociationhasnecessitatedan expenditureof monies by theAssociation
asaresultofthe willfulor negligentactionsoromissionsofsuchOwner or such Owner's family
members, tenants,guests,contractorsor invitees.A Reimbursement Assessment, togetherwith
interest,costs,andreasonableattorney'sfees,shallbe due and payable totheAssociationwhen
levied.A Reimbursement Assessment shallnotbe leviedby the Associationexcepton atleast
ten(10)days'priorwrittennoticetotheOwner being assessed.If,withinsaidten (10)day
period,theOwner makes awrittenrequestto the Board forahearing,a hearingshallbeheld.On
requestfora hearing,theBoard shallconductthehearingnotlessthanten (10)normore than
thirty(30)days afterthe requestby the Owner, and shallmake itsdecisionwithinthirty(30)
days afterthe hearingisheld. Ifa noticehasbeen previouslygiven,and thehearinghas already
been heldor waived (inwritingor by the Owner's failureto appear)fortheviolationresultingin
the Reimbursement Assessment, no additionalnoticeand hearingisrequiredbeforelevyingthe
Reimbursement Assessment.
3.7 Commencement ofAssessments.
3.7.1 Base Assessments and SpecificAssessments.Declarantshallpay all
operatingexpenses of the AssociationuntilDeclarantelectstoassessthe LotsforBase
Assessments and SpecificAssessments as provided herein.The dateofcommencement of Base
Assessments and SpecificAssessments on theLots (excludingany Lots owned by Declarantora
Builder,which shallbe exempt asprovided below) shallbe determined by Declarant;provided,
however, inno event shallitcommence laterthantheTurnover Meeting or ifno Turnover
Meeting isheld,thedate on which administrationoftheAssociationisturnedovertotheClass A
members.
3.7.2 Reserve Account Assessments. Reserve Account Assessments
commence on aLotasof the dateDeclarantora Builderconveys theLotto an Owner otherthan
Declarantora Builder.
3.7.3 All OtherAssessments. SpecialAssessments and Reimbursement
Assessments shallcommence on aLotasofthedate DeclarantoraBuilderconveys theLot toan
Owner otherthan DeclarantoraBuilder.
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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 thepayment ofBase Assessments, SpecificAssessments,Reserve
Account Assessments,SpecialAssessments and Reimbursement Assessments foraperiodofone
(1)year aftersuchLot was conveyed by DeclaranttotheBuilder;provided,however, that
Declarantshallhave theright,ititssolediscretion,toextenda Builder'sassessment exemption
periodforanadditionalyearby sending writtennoticethereoftotheAssociation.
3.8 Obligation for Assessments. Each Owner, by acceptingadeed forhis,heror
theirLot,isdeemed tocovenantand agree topay allassessments authorizedinthisRestated
Declarationor otherGoverning Documents. All assessments,togetherwith interest,finesand
latecharges asdetermined by Board resolution,and collectioncosts(includingreasonable
attorneys'fees),shallbe thepersonalobligationofeach Owner and alienupon eachLotuntil
paid infull.Upon transferoftitletoa Lot,the granteeshallbe jointlyand severallyliablefor
any assessments and otherchargesdue atthetimeof conveyance. The Associationmay sue any
person liableforunpaid assessments and othercharges authorizedhereunder withoutforeclosing
or waiving the liensecuringthe same.
Failureof theBoard to fixassessmentamounts orratesorto deliverormaileach
Owner an assessmentnoticeshallnotbe deemed a waiver,modificationor releaseof any Owner
from the obligationtopay assessments.In such event,eachOwner shallcontinuetopay Annual
Assessments on thebasisofthelastyear forwhich anassessment was made, ifany,untilanew
budget becomes effectiveand anew assessmentisleviedpursuantthereto.Any such budget
may includeasan expense item any shortfallinamounts previouslycollected.
No Owner may exempt himselffrom liabilityforassessmentsby non-useof the
Common Areas,abandonment ofhisor her Lot,or any othermeans. The obligationtopay
assessmentsisa separateand independent covenant on thepartofeachOwner. No diminution
orabatement of assessmentsorset-offshallbe claimedorallowedforany allegedfailureofthe
AssociationorBoard totake some actionor perform some functionrequiredof it,orfor
inconvenienceordiscomfortarisingfrom the making ofrepairsor improvements, orfrom any
otheractionittakes.
3.9 Lien for Assessments. The Associationshallhave alien againsteachLotto
securepayment ofdelinquentassessments,aswell asinterest,finesand latechargesas
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 recordedFirstMortgage
made ingood faithand forvalue. Such lien,when delinquent,may be foreclosedinthesame
manner as aconstructionlienoras otherwiseprovided by applicablelaw afterthe Association
recordsa noticeoflienagainstthedelinquentLot intheOfficialRecords ofGallatinCounty,
Montana.
11 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
The Associationmay bidfortheLot atthe foreclosuresaleand acquire,hold,
lease,mortgage and convey theLot. While aLotisowned by the Associationfollowing
foreclosure:(a)no rightto voteshallbe exercisedon itsbehalf;(b)no assessments shallbe
leviedon it;and (c)eachotherLot shallbe charged,in additiontousual assessments,itspro rata
shareoftheassessmentsthatwould have been charged tosuch Lot had itnotbeen acquiredby
the Association.
Sale or transferof any Lot shallnotaffecttheassessment lienorrelievesuchLot
from the lienforany subsequent assessments.However, thesaleortransferof any Lot pursuant
toforeclosureofaFirstMortgage oradeed inlieuofforeclosureforthebenefitof any First
Mortgagee shallextinguishthe lienofsuchassessmentson theLotastopayments which became
due priortothesaleor transfer.The unpaid assessmentsshallthen become common expenses of
allOwners, includingtheFirstMortgagee and any purchaseratthe foreclosuresaleorfrom a
FirstMortgagee. No saleor transferof any Lot pursuantto foreclosureofaFirstMortgage ora
deed inlieuofforeclosureforthe benefitof any FirstMortgagee shallrelievesuch Lotfrom
liabilityasto any assessmentsthereafterbecoming due orfrom thelienthereof.Notwithstanding
the foregoing,no saleor transferof any Lot pursuanttoa mortgage foreclosureora deed inlieu
offoreclosureforthebenefitof any FirstMortgagee shallbe deemed to extinguishany mortgage
or lienwhich the Associationhasitselfplacedupon any propertyowned by the Association.
3.10 Interest;Late Fees: Fines. The Board,initsreasonablediscretion,may from
timetotime adoptresolutionsto settherateofinterestand to impose latefeesand fineson
delinquentassessments orforviolationsoftheprovisionsof thisRestatedDeclarationorother
Governing Documents. The adoption of such impositionsby theBoard shallbe communicated
toallOwners inwritingnotlessthan thirty(30)days beforetheeffectivedateby anoticemailed
totheaddressofthe Owners ascontainedintherecordsoftheAssociation.Such impositions
shallbe consideredassessmentsthatarelienableand collectibleinthesame manner as any other
assessments;provided,however, thatfines(butnotinterestorlatefees)forviolationofthis
RestatedDeclarationor otherGoverning Documents may notbe imposed againstanOwner or
such Owner's Lotuntilthe Owner isgiven an opportunityfora hearing.
3.11 Acceleration of Assessments. IfanOwner isdelinquentinpayment of any
assessmentor installmenton any assessment,theAssociation,on notlessthan ten(10)days'
writtennoticetotheOwner, may acceleratethe due dateofthe fullannual assessment forthat
fiscalyear and allfutureinstallmentsof any SpecialAssessments.
3.12 Certificateof Payment. The Associationshallprovide,withinten (10)business
days of receiptof awrittenrequestfrom an Owner, acertificatesignedby anofficerofthe
Associationsettingforth(i)the amount ofassessmentsdue from theOwner and unpaid atthe
timetherequestisreceived,includingAnnual Assessments and allotherassessmentsauthorized
inthisRestatedDeclaration,latefees,interest,finesand othercharges,(ii)thepercentagerateat
which interestaccrueson assessments thatarenotpaidwhen due,and (iii)thepercentagerate
used to calculatethecharges forlatepayments; provided,however, thatthe Associationisnot
requiredtocomply with the foregoingifthe Associationhas commenced litigationby filinga
12 -Amended and RestatedDeclarationof ProtectiveCovenants, Conditions and Restrictionsfor
Norton Ranch
complaintagainstanOwner and thelitigationispending when the certificatewould otherwisebe
due. A properlyexecuted certificateof theAssociationshallbe binding upon theAssociationas
ofthedateofitsissuanceastothestatusofassessmentson aLot.
3.13 ReallocationUpon Annexation of Additional Property. When Additional
Propertyisannexed totheSubdivisionpursuanttoSections13.1or 13,2,the Associationshall,
within sixty(60) days aftertheannexation,recompute thebudget forthe Associationbased on
the additionalLots,Common Areas and Common Maintenance Areas and recompute all
applicableassessments foreach Lot. Newly annexed Lotsshallbe subjecttoassessmentfrom
thetimeofannexationof theLotstothe Subdivision,unlessalaterdateisprovidedelsewhere in
thisArticle3 (e.g.,Lotsowned by Declarantora Builder,which aregenerallyexempt from
assessments).The Associationshallsendnoticeof any applicableassessmenttothe Owners of
newly annexed Lotsnotlaterthan sixty(60)days afterthe annexationorwiththenext occurring
Annual Assessment, whichever issooner.Assessments shallbe due and payable on orbeforea
datesetforthinthenotice,which shallbe notlessthan thirty(30) days afterthedatethenoticeis
mailedtothenew Owners oratsuch othertimeortimesasthe Associationmay specifyinthe
noticeinaccordancewiththisRestatedDeclarationor the Bylaws. IfAdditionalPropertyis
annexed totheSubdivisionduringtheAssociation'sfiscalyear,the Associationshallsend notice
oftherecomputed assessment and any additionalassessmentsowed totheOwners oftheLots
which were withinthe Subdivisionpriortotheannexation,and the Associationshallcollectsuch
recomputed additionalassessments from suchOwners. Noticeoftheadjustmentinthe
assessments shallbe senttosuchOwners notlaterthan sixty(60)days afterthe annexationor
withthenext occurringAnnual Assessment, whichever issooner. To the extentthatany
adjustmentresultsinacreditwith respectto assessmentspayableby an Owner, such creditshall
be appliedtoward the next occurringpayment or payments ofthe applicableassessment.
3.14 Reallocation Upon Removal of aPortion ofthe Property. When partofthe
Propertyisremoved from the SubdivisionpursuanttoSection 13.3,the Associationshall,within
sixty(60)days aftertheremoval, recompute the budget fortheAssociationbased on theremoval
ofthe applicableLots,Common Areas and Common Maintenance Areas and recompute all
applicableassessmentsforeachofthe remaining Lots.The Associationshallthensend noticeof
therecomputed assessmentand any additionalassessments owed tothe Owners of Lots which
remain intheSubdivisionafterthe removal notlaterthan sixty(60)days aftertheremoval or
withthenext occurringAnnual Assessment, whichever issooner,and theAssociationshall
collectsuch recomputed additionalassessments from theremaining Owners. To the extentthat
any adjustmentresultsinacreditwith respectto assessmentspayable by an Owner ofaLot
which remains intheSubdivisionaftertheremoval,suchcreditshallbe appliedtoward thenext
occurringpayment or payments of theapplicableassessment. Lots removed from the
Subdivisionshallno longerbe subjectto assessment asof the effectivedateoftheremoval;
provided,however, thatthe lienforany assessmentsdue priorto thedateofsuchremoved (if
any) shallremain alien on theLotsremoved from the Subdivisionuntilpaid infull.
3.15 No Reimbursement toDeclarant.The proceeds of any assessmentsshallnotbe
usedto reimburse Declarantforany capitalexpendituresincurredin constructionorother
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Norton Ranch
improvements ofCommon Areas orCommon Maintenance Areas,nor fortheoperationor
maintenance ofsuchfacilitiesincurredbefore conveyance ofsuchcommon facilitiestothe
Association.
ARTICLE 4-EASEMENTS AND RIGHTS OF ENTRY
4.1 Plat Easements. The Propertyshallbe subjecttoalleasements delineatedon the
Plat.
4.2 Owners' Easements inCommon Areas. DeclarantgrantstoeachOwner a
perpetual,nonexclusiverightand easement ofuse,accessand enjoyment inand tothe Common
Areas,subjecttotherestrictionsand limitationssetforthinthisArticleand elsewhereinthis
RestatedDeclaration.
4.3 Easement of Encroachment. Declarantgrantsreciprocalappurtenanteasements
of encroachments,and formaintenance and useof any permittedencroachment,between each
Lot and any adjacentCommon Areas and between adjacentLotsdue to unintentionalplacement
or settlingor shiftingof improvements constructed,reconstructedor alteredthereon(in
accordancewith thetermsofthisRestatedDeclaration)toadistanceofnotmore thethree(3)
feet,as measured from any pointon thecommon boundary along a lineperpendiculartosuch
boundary. Inno event,however, shallan easement forencroachment existifsuch encroachment
occurreddue willfuland knowing conducton thepartof,orwith theknowledge and consentof,
thepersonclaimingthe benefitofsuch easement.
4.4 Easements for Utilities,Etc.
4.4.1 Declarantreservesforitselfand theAssociation,forthebenefitofthe
Propertyand any AdditionalProperty,perpetual,nonexclusiveblanketeasements upon, across,
overand underthePropertyand AdditionalPropertyforpurposes of ingress,egress,installation,
maintenance,repairand replacement of utilitiesand infrastructure;cableand othersystems for
sendingand receivingdata and/orotherelectronicsignals;securityand similarsystems;
walkways, pathways and trails;stormwater drainagesystems;irrigationsystems;sanitarysewer
systems;streetlights;signage;and entryfeatures;provided,however, thatthe exerciseofthese
easements doesnot unreasonably interferewiththeuse of any Lot. Declarantfurtherreservesfor
itselfand the Associationtherightto grantthebenefitof any such easements tothelocal
municipal governmental body and otherutilityserviceproviders.
4.4.2 Declarantalsoreservesforitselfand theAssociationthenonexclusive
rightand power to grantand recordsuch specificeasementsover the Propertyand Additional
Propertyas may be necessary,inthesolediscretionofDeclarantortheAssociation,to exercise
the rightsand easements grantedby thepreceding paragraph. The Owner of any Lottobe
burdened by any easement grantedpursuanttothisSection4.4 shallbe given advance written
noticeofthegrant,and the locationofthe easement on suchLot shallbe subjecttothewritten
approvaloftheOwner (which shallnotbe unreasonablywithheld,delayed or conditioned);
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Norton Ranch
provided,however, thatan Owner shallbe deemed to have consentedtothelocationofan
easement on hisorherLot iftheOwner hasnot responded toawrittenrequestwithinthirty(30)
days aftersuch requestwas mailed totheOwner's addresson recordwiththeAssociation.
4.4.3 Allwork associatedwiththeexerciseoftheeasements describedinthis
Section4.4 shallbe performed insuch amanner astominimize interferencewith theuseand
enjoyment ofthe propertyburdened by the easement. Upon completion of thework, theperson
exercisingthe easement shallrestorethe property,totheextentreasonablypossible,toits
conditionpriorto commencement ofthework, exceptforany improvements placedwithinutility
easementsinviolationof thetermsofthisRestatedDeclaration.The exerciseoftheseeasements
shallnotextendtopermittingentryintoany Unit withouttheOwner's consent,norshallit
unreasonably interferewiththeuse of any Lot by the Owner thereof.Except inan emergency,
entryonto any Lot shallbe made only afterreasonablenoticetotheOwner or occupant.
4.5 Easements toServe Additional Property. Declaranthereby reservesforitself
and itsduly authorizedagents,successorsand assignsa perpetual,nonexclusive easement over
the Common Areas forpurposes of enjoyment,use,accessand development of anypropertynow
or hereafterowned by Declarantadjacenttoor near theProperty,whether ornot such propertyis
made subjectto thisRestatedDeclaration.Thiseasement includes,butisnotlimitedto,a right
of ingressand egressover the Common Areas forconstructionand useof roads,sidewalksand
walkingpaths,and forconnectingand installingany and allutilitieson such property.
Declarantagreesthatitand itsduly authorizedagents,successorsand assigns
shallbe responsibleforany damage caused totheCommon Areas asaresultoftheirrespective
actionsinconnectionwith development ofsuch property.Declarantfurtheragreesthatifthe
easement isexercisedforpermanent accesstosuch propertyand such propertyor anyportion
thereofbenefitingfrom sucheasement isnotmade subjecttothisRestatedDeclaration,
Declarant,itssuccessorsor assignsshallenterintoareasonableagreement withtheAssociation
tosharethecostof any maintenance which theAssociationprovidestoor alongany roadway,
sidewalkor walkway providingaccesstosuch property.
4.6 Easements for Maintenance, Emergency and Enforcement. Declarantgrants
totheAssociationeasements overthe Propertyand AdditionalPropertyas necessaryto enable
the Associationto fulfillitsmaintenance responsibilitiesunder thisRestatedDeclaration.The
Associationshallalsohave theright,butnotthe obligation,toenterupon any Lot foremergency,
securityand safetyreasonsto perform maintenance and toinspectforthepurpose ofensuring
compliance withand enforcethe terms ofthisRestatedDeclarationand the otherGoverning
Documents. Any such rightmay be exercisedby any member oftheBoard and itsduly
authorizedagentsand assignees,and allemergency personnelinperformance oftheirduties.
Except inan emergency situation,entryonto a Lot shallonly be duringreasonablehoursand
afternoticetotheOwner.
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 orcondition(including,butnotlimitedto,drainageissues)which may existon any
portionofthePropertyand AdditionalProperty,and a perpetual,nonexclusive easement of
accessthroughoutthe Propertyand AdditionalPropertytotheextentreasonablynecessaryto
exercisesuch right.Except inan emergency situation,entryonto a Lot shallonly be during
reasonablehours and afternoticetothe Owner; provided,however, thatno entryintoaUnitis
permittedwithouttheconsentof theOwner. The person exercisingtheseeasements shall
promptly repairany resultingdamage.
4.8 Perimeter Fence Easement. An easement ishereby declaredforthebenefitof
theDeclarantand the Associationforthe construction,maintenance,repairand replacementof
fencingalong theperimeterofthe Property,whether ornotsuch fencingislocatedon the
Common Areas orLots. Declarant,however, isunderno obligationto constructany perimeter
fencing.Any perimeterfencingconstructedby Declarantshallbe maintainedby theAssociation
asaCommon Maintenance Area.
4.9 Retainine Wall Easement. Retainingwallsmay have been constructedby
DeclarantwithintheProperty(the"RetainingWalls"). The RetainingWalls arenotinallcases
locatedon aLot line.The locationofa RetainingWall (orthe constructionby an Owner of any
improvements on orneartheRetainingWall) shallnotconstituteevidenceof the intended
locationofaLot line,or provide grounds forany claimofadversepossessionor prescriptive
easement. Each Lot upon which any portionofa RetainingWall islocatedshallbe subjecttoan
easement,forthebenefitoftheAssociationand allotherLots,forthepurposes of supportby and
naturaldrainagefrom such RetainingWall. RetainingWalls may or may nothave been designed
by a professionalengineer,and no Owner shalltakeany actionto add,constructor placeany
improvement on theLotso thatitmay, inthejudgment oftheAssociation:resultindisturbance
of,weakening of,or damage toa RetainingWall; increaseany engineered loadoralterdesign
criteria;or cause damage tothe RetainingWall or surroundingproperties.Any LotOwner who
takessuch action,or who otherwisedamages a RetainingWall,shallbe responsibleforall
resultingcostsof repairand restorationofthe RetainingWall. ThisSection4.9shallnot applyto
retainingwalls constructedby anOwner on itsown Lot.
4.10 SpecialDeclarant Easements. Declarantreservesforitselfand itsduly
authorizedagents,successorsand assigns,perpetual,nonexclusive easements on,overand across
theCommon Areas forpurposes of (a)constructingand maintainingsuch facilitiesand activities
as Declarant,initssolediscretion,deems necessaryorconvenienttothesaleofLots and Units,
including,but notlimitedto,businessoffices,signs,model unitsand salesoffices;(b)
constructingand maintainingCommon Areas,includingany structuresthereon;and (c)storing
materialsand making such otheruse thereofas Declarant,initssolediscretion,deems necessary
orconvenienttotheconstructionof Units and otherstructureson thePropertyor Additional
Property(providedthatno such storageorotheruseshallunreasonably interferewithaccessto,
or theuse,occupancy and enjoyment of,any Lot).Declarantshallalsohave easementsfor
accesstoand use oftheCommon Areas forsuchfacilitiesatno charge.
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Norton Ranch
ARTICLE 5-COMMON AREAS
5.1 Use ofCommon Areas. Every Owner shallhave a righttouseand enjoy the
Common Areas,subjectto:
(a) The termsofthisRestatedDeclarationasitmay be amended from timeto
timeand any restrictionsor limitationscontainedinany deed conveying theCommon Areas to
the Association;
(b) The Board's Right to:
(i) adopt,promulgate,enforceand amend from timeto timetheRules
and Regulationspertainingtotheuseand enjoyment oftheCommon Areas,includingrulesand
regulationslimitingthe number of guestsofOwners who may usetheCommon Areas atany one
time;
(ii) suspend therightof an Owner, afternoticeand an opportunityfor
a hearing,touseallor any portionoftheCommon Areas (A) forany periodnottoexceed thirty
(30) days fora singleviolation,or fora longerperiodinthecaseof any continuingviolationof
thisRestatedDeclarationor the Bylaws orRulesand Regulations;and (B)forany periodduring
which any assessmentsor any othercharges forsuchOwner's Lotremains delinquent;
(iii) granteasements and dedicateortransferallor any partofthe
Common Areas pursuanttoSections4.4and 5.2;
(iv) mortgage,pledge or hypothecate any orallofitsrealor personal
propertyas securityformoney borrowed ordebtsincurred,subjecttotheapprovalrequirements
setforthinSection5.2;
(v) impose reasonablemembership requirementsand charge
reasonableadmission orotheruse feesfortheuse of any recreationalfacilitysituatedupon the
Common Areas thatisnot open oravailabletothe generalpublic;and
(vi) permituse of any recreationalfacilitiessituatedon theCommon
Areas by persons otherthan Owners, theirfamilies,lesseesand guestsupon payment ofusefees
establishedby the Board;
(c) Alleasements grantedorreservedby DeclarantinthisRestated
Declaration,and alleasements subsequentlygrantedor reservedby Declarantpursuanttoa right
grantedorreservedinthisRestatedDeclaration.
An Owner who residesin a Unit may extendhisorher righttouse and enjoyment
oftheCommon Areas to the othermembers ofhisorherhousehold and to guests,subjecttothe
termsofthisRestatedDeclarationand theRules and Regulations.IfanOwner does notresideat
hisorher Unit,thentheOwner shallbe deemed to have assignedallofthe Owner's rightstouse
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Norton Ranch
and enjoyment oftheCommon Areas toresidentsor occupants ofsuch Unit,subjecttotheterms
ofthisRestatedDeclarationand the Bylaws and Rulesand Regulations.
No Owner shallmake any change toany Improvement or landscapingupon the
Common Areas,or decorate,alteror repairany partoftheCommon Areas (exceptfor
maintenance ofthosepartsoftheCommon Areas which theOwner hastheduty tomaintain,if
any),withoutthepriorwrittenconsentoftheAssociation.
5.2 Alienationof Common Areas. The Associationmay sell,dedicate,transfer,
granta securityinterestin,or grantan easement forinstallationor maintenance of utilitiesorfor
similarpurposes with respectto any portionof theCommon Areas. Except forgrantsof
easements forutility-relatedpurposes under Section4.4 above,no such sale,dedication,transfer
or grantofa securityinterestshallbe effectiveunlessapproved by eightypercent(80%) ofthe
votesofbothClass A and ClassB members, or eightypercent(80%) ofthevotesofClassA
members once Declaranthas relinquisheditsClassB membership interests.Any saleof portions
oftheCommon Area thatincludepublictrailsor walkingpaths shallbe made subjectto reserved
easements infavorofthepubic oversuchtrailsand walking paths.
5.3 Conversion ofLots toCommon Areas. Declarantmay electtobuildcommon
facilitieson one ormore Lotsand designatesuch LotsasCommon Areas by amending this
RestatedDeclaration.Such amendment tothisRestatedDeclarationshallbe executedby
Declarantand bear acertificateofthePresidentor SecretaryoftheAssociationrecitingthatthe
holdersofa majorityofthe votingrightsinthe Associationhave approved suchconversionto
Common Areas.
5.4 No Partition.There shallbe no judicialpartitionof the Common Areas. Each
Owner, whether by deed,gift,devise,or operationof law,forsuch Owner's benefitand forthe
benefitofallotherOwners, specificallywaives and abandons allrights,interests,and causesof
actionforjudicialpartitionof any interestintheCommon Areas and agreesthatno actionfor
judicialpartitionshallbe instituted,prosecuted,orreducedtojudgment.
5.5 TitletoCommon Areas. Declarantshallcause feesimple titletothe Common
Areas tobe conveyed totheAssociation,freeand clearof monetary liens,no laterthan the date
oftheTurnover Meeting,and theAssociationshallunconditionallyacceptfeetitletothe
Common Areas from Declaranton suchdate.
5.6 Damage or Destruction By Owner. Ifdamage to any Common Areas or
Common Maintenance Areas isdirectlyattributableto an Owner orthe familymembers,
invitees,licensee,or guestofan Owner, then thatOwner shallrepairsuch damage or destruction
as soon as reasonablypracticable,butinno eventlaterthan fifteen(15) days afterthe datethe
damage occurred,athisor hersoleexpense and withouta rightof reimbursement.Ifan Owner
failstorepairsuch damage timely,theAssociationshallhave allrightsof enforcement and
remedies setforthunder thisRestated Declaration.
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Norton Ranch
ARTICLE 6 --MAINTENANCE
6.1 Maintenance by Association.The Associationshallmaintainand keep the
Common Maintenance Areas in acleanand attractiveconditionand ingood repair,such
maintenance to be funded by Annual Assessments as provided inthisRestatedDeclaration.This
maintenance shallinclude,butneed notbe limitedto,maintenance,repairand replacement
(subjecttoany insurancethenin effect)ofthe following:
(a) alllandscape plantings,treesand lawn areas(includingirrigationthereof)
locatedon theCommon Areas and withintheParks (untilsuchtimeastheCityaccepts
maintenance responsibilityforthe Parks),which shallinclude,butisnotlimitedto,removal and
replacement ofdead or dying treesand otherlandscapingtoensure compliance withthe
approved landscapingplan (butsubjecttothetermsofSection 11.2);
(b) allsidewalks,trails,walking pathsand pedestrian/bicyclepathslocatedon
the Common Areas and withintheParks (untilsuchtimeastheCityacceptsmaintenance
responsibilityforthe Parks);
(c) allmonument entrysignsand featuresfortheSubdivisionwithinor
adjacenttotheProperty;
(d) the storm water conveyance and detentionsystems servingthe Subdivision
(exceptforany drainageswales locatedon Lots),which shallbe maintained per thedesign intent
ofthe approved plans forsuch systems and any applicableoperationsand maintenance plans;
(e) any perimeterfencingconstructedby Declarant(althoughDeclaranthas
no obligationto constructany perimeterfencing);
(f) any RetainingWalls constructedby Declarant;and
(g) allotherstructuresand Improvements situatedinoron the Common
Areas,unlessmaintenance thereofisdelegatedtotheOwners under thetermsofthisRestated
Declarationor handled by the City or a utilityserviceprovider.
The Associationmay alsomaintainotherpropertywhich itdoesnotown and is
not requiredto maintainiftheBoard determines,initsdiscretion,thatsuch maintenance is
necessaryordesirable.Such areasshallbecome partoftheCommon Maintenance Areas upon
approvalby the Board.
6.2 Maintenance by Owner. Each Owner shallatalltimes keep hisorherLot and
Unit(s)(includingallImprovements and alllandscapeplantings,treesand lawn arealocatedon
hisorher Lot)inacleanand attractivecondition,ingood repair,and incompliance withall
applicablecovenants and municipal ordinances,unlesssuch maintenance responsibilityis
19 -Amended and RestatedDeclarationofProtectiveCovenants, Conditionsand Restrictionsfor
Norton Ranch
otherwiseassumed by or assignedto the AssociationpursuanttoSection6.1 above or any other
provisionsofthisRestatedDeclaration.
Each Owner shallalsobe responsibleformaintainingthe landscape plantings,treesand
lawn area(includingirrigationthereof)withinthepublicright-of-wayadjacenttohisor herLot
totheback of thestreetcurb;provided,however, thatthereshallbe no rightto remove trees,
shrubsorsimilarlandscapingfrom thisareawithoutthepriorwrittenconsentof theAssociation
and compliance withtheterms of Section 11.2and any applicablezoning ordinances.
Responsibilityformaintenance of landscape plantings,treesand lawn areasas required
by thepreceding paragraphs shallincluderesponsibilityforwateringthesame as needed to
maintainthem ina healthycondition,freefrom weeds and othernoxious plantmaterials,and not
permittinggrassestoexceed fourinches(4")inheight.Itshallalsoincluderesponsibilityfor
removal and replacement of diseasedordead trees,shrubs and otherlandscaping,subjectto
obtainingany requiredtreeremoval permit from the localmunicipal authorityand the terms of
Section11.2.
Ifany Owner failstoproperlyperform hisorhermaintenance responsibility,the
Associationmay, butisnot obligatedto,perform such maintenance responsibilitieson behalfof
suchOwner and assessthe Owner foraReimbursement Assessment in accordance withSection
3.6of thisRestatedDeclaration;provided,however, thatexceptwhen entryisrequireddue toan
emergency situation,the Associationshallprovide the Owner withreasonablenoticeand an
opportunitytocure the problem priorto entry.
6.3 Maintenance Durine Construction.During constructionitshallbethe
responsibilityofeach Owner (includinga Builder)toinsurethathisorherLotand adjacentareas
arekept freeofunsightlyaccumulation ofrubbishand scrapmaterials,and thatconstruction
materials,trailers,shacks and the likearekept inaneatand orderlymanner. No burning of any
trashand no accumulation or storageof litterortrashofany kind shallbe permittedon any Lot
ortheCommon Areas.ThisSection6.3shallnotbe applicableto Declarantoritsemployees,
agentsorcontractors.
ARTICLE ?-ARCHITECTURAL REVIEW
7.1 Architectural Review Committee. A committee tobe known asthe
ArchitecturalReview Committee e"ARC" shallbe establishedconsistin ofthenotlessthan
three(3)members ormore thanfive(5)members, exceptthatthe ARC may, attheoptionof
Declarant,consistofasfew asone (1)member (which may be Declarant)forso long as
Declarantowns any Lotwithinthe Subdivision.Each member ofthe ARC shallserveforaone
(1)yearterm,exceptthatthemember(s) ofthe ARC appointedby Declarantmay serveuntil
Declarantno longerowns any Lot withintheSubdivision.
7.1.1 The members oftheARC shallbe appointed,terminatedand/orreplaced
by Declarantforso long asDeclarantowns any Lot withinthe Subdivision.Thereafter,the
20 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
Board shallappointthe members oftheARC. Members oftheARC may be terminatedand/or
replacedby the Board, withor withoutcause,exceptthattheBoard may notterminateany
member oftheARC appointedby Declarantso long asDeclarantowns any Lotwithinthe
subdivision.
7.1.2 Declarantshallhave therightto voluntarilyrelinquishcontrolofthe
ARC totheBoard during theperiodinwhich Declarantowns any Lotwithinthe Subdivision,in
which event Declarant'srightto appoint,terminateand replacemembers oftheARC shall
termmate.
7.1.3 The purpose oftheARC istoenforcethearchitecturalstandardsofthe
community and to approve or disapprove plans forimprovements proposed on theLots.
7.1.4 The ARC shallactby simple majorityvote,and shallhave theauthority
todelegateitsdutiesand toretaintheservicesofa professionalengineer,architect,designer,
inspectororotherperson toassistintheperformance ofitsduties.
7.2 Design & Construction Guidelines. The ARC may, withthe approvalofthe
Board, adopt,amend, modify orreviseDesign & ConstructionGuidelines;provided,however,
thatDeclarantmay adopt,amend, modify and revisethe Design & ConstructionGuidelines
withoutthe consentof anyone so long asDeclarantowns any LotwithintheSubdivision.
NeitherDeclarantnorthe ARC, however, shallhave an obligationto adoptDesign &
ConstructionGuidelines.No amendments, modifications,orrevisionstothe Design &
ConstructionGuidelinesshallaffectany priorARC approval.
7.3 Scope of Review. No Improvements may be undertaken,constructed,altered,
added ontoor replacedupon any portionofthe Propertywithout thepriorwrittenconsentofthe
ARC.
7.4 Submission ofPlans. Beforetheinitiationof constructionof any Improvement
upon any Lot,the Owner thereofshallfirstsubmit totheARC a complete setofplansand
specificationsfortheproposed improvements. Plansshallincludeelevationdrawings,design
plans,specificationsof materialsand exteriorcolors,and any otherinformationdeemed
necessaryby theARC fortheperformance ofitsfunctionpursuanttotheprocedure outlinedin
the Design & ConstructionGuidelines(ifany).In addition,theOwner shallsubmit theidentity
oftheindividualor company intendedto perform thework and projectedcommencement and
completion dates.Inthe eventan Owner submits plans or specificationstotheARC thatarenot
adequate to permittheARC to make an informed determinationunder thisArticle,theBoard
shallhave the authorityto requiretheOwner submittingthe inadequateplans or specificationsto
retain,attheOwner's expense,theservicesof a professionalengineer,architect,designer,
inspectororotherperson toassistinthepreparationofasufficientsubmittaltotheARC.
7.5 Plan Review. Upon receiptby the ARC ofalloftheinformationrequiredby this
Article,itshallhave thirty(30)businessdays inwhich toreview saidplans.The proposed
21 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
improvements willbe approved if,inthesoleopinion oftheARC: (a)theimprovements willbe
ofan architecturalstyleand materialthatare compatible withtheotherstructuresintheProperty;
(b)the improvements willnotviolateany restrictivecovenantor encroach upon any easement or
crossbuildingsetback lines;(c)the improvements willnotresultinthereductioninproperty
value,useor enjoyment of any ofthe Property;(d)theindividualor company intendedto
perform the work isacceptabletotheARC; and (e)theimprovements willbe substantially
completed,includingallcleanup,withinsix(6)months of thedateofcommencement. Ifthe
ARC failstoissueitswrittenapprovalor rejectionwithinthirty(30)businessdays ofitsreceipt
ofthelastofthematerialsordocuments requiredto complete the Owner's submission,thenthe
ARC's approval shallbe deemed tohave been grantedwithout furtheraction.The ARC's
approvalof plansand specificationsshallbe validfora periodoftwelve (12)months from the
date of issuance,duringwhich time theOwner must commence constructionoftheapproved
Improvements and thereafterdiligentlyproceed to completion;otherwisethe approvalisvoid.
7.6 Non-conforming Structures. Ifthereshallbe amaterialdeviationfrom the
approved plansinthecompleted improvements, such improvements shallbe inviolationof this
Articletothesame extentas iferectedwithoutpriorapproval of the ARC. The ARC, the
Associationor any Owner may maintainanactionatlaw orinequityforthe removal or
correctionofthe non-conforming structureand,ifsuccessful,shallrecover from the Owner in
violationallcosts,expenses and feesincurredintheprosecutionthereof.
7.7 Immunity ofARC Members. No individualmember ofthe ARC shallhave any
personalliabilitytoany Owner or any otherperson fortheactsoromissions oftheARC ifsuch
actsoromissionswere committed ingood faithand withoutmalice.The Associationshall
defend any actionbroughtagainstthe ARC or any member thereofarisingfrom actsor
omissionsoftheARC committed ingood faithand withoutmalice.
7.8 Limited Review. Any review and approvalmade by the ARC islimitedto
compliance with theintentofthearchitecturalstandardsofthe neighborhood asmay from time
totime be establishedby theBoard and/ortheDesign & ConstructionGuidelines.The review
and approvalmade by theARC isnottobe construedas superseding,replacing,ormodifying
any review,approval,or permit requiredby any local,stateorfederaljurisdictionalagencies.It
istheapplicant'sresponsibilitytoobtainand comply with any permits thatmay be requiredby
any local,state,or federaljurisdictionalagency.
7.9 Address forNotice. Requests forARC approvalor correspondence with the
ARC shallbe addressedtotheNorton Ranch Community Association,ArchitecturalReview
Committee, atthe addressas may be designatedfrom timetotime by theARC. No
correspondence orrequestforapproval shallbe deemed to have been receiveduntilactually
receivedby the ARC ina form satisfactorytotheARC.
7.10 Appearance and Design of Subdivision. The Declarantshallnotbe prevented
from changing the appearance of the Common Areas,includingthe landscapingand any other
aspectsdirectlyor indirectlyconnected withitsdevelopment of theSubdivisionso long as
22 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
Declarantobtainsallapplicablegovernmental approvalsand consents. The constructionand
materialstandardsofthisRestatedDeclarationand/orplansand drawings notwithstanding,
Declarantmay change exteriorand/orinteriordesignsofUnitsfrom 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. Allconstructionby Declarantestablishesthestandardsforthe
ARC and isdeemed tomeet any Design & ConstructionGuidelinesoftheAssociationand is
deemed tobe approved by theARC.
7.12 Approval of Builder Plans. Declarantshallhave theright,initssolediscretion,
to approve theplansand specificationsforallImprovements thatwillbe constructedby a
Builder,and allconstructionby aBuilderpursuantto theplans and specificationsapproved by
Declarantisdeemed to satisfytherequirementsofthisArticle7.
ARTICLE 8-INSURANCE AND INDEMNIFICATION
8.1 Association Insurance Coverage. The Associationshallobtainand maintainat
alltimestheinsurancerequiredbelow and such additionalinsuranceasthe Board deems
advisable,which willinclude,butisnotbe limitedto,the following:
8.1.1 PropertyInsurance.The Associationshallobtainand maintain atall
timesa policyofpropertyinsurancecoveringallinsurableimprovements withinthe Common
Areas againstlossor damage resultingfrom fireand otherhazardscovered under specialform
coverage ("allrisk"),includingvandalism,maliciousmischief,sprinklerleakage,debrisremoval,
costof demolition,windstorm, floodand water damage endorsements.Coverage shallbe forthe
fullinsurablereplacement cost(withoutdeductionfordepreciation)ofsuch improvements,
exclusiveof land,foundation,excavationand otheritems normally excludedfrom coverage,and
shallbe subjecttoa commercially reasonabledeductible.Such policyofinsuranceshallcover
theinterestsoftheAssociationand theOwners and FirstMortgagees as theirinterestsmay
appear and,ifavailableatreasonablecost,the followingterms:
(a) A waiverof subrogationby theinsurerasto any claimsagainstthe
Associationand itsBoard and propertymanager (ifany),and againstany Owner or guestof any
Owner;
(b) A standardmortgagee clause,except thatthelosspayment
provisionshallbe subjecttothetermsofArticle9 ofthisRestatedDeclaration;
(c) A provisionthatno policymay be canceled,invalidated,or
suspended because ofthe actionofan Owner;
23 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
(d) A provisionthatno policymay be canceled,invalidated,or
suspended becauseoftheconduct of any director,officer,or employee of the Associationunless
the insurergivestheAssociationa priorwrittendemand thattheAssociationcorrectthe defect
and allowstheAssociationareasonabletimetomake thecorrection;
(e) A provisionthatthepolicyisprimary intheeventanOwner has
otherinsurancecoveringthesame loss;
(f) A provisionthatthepolicycannotbe canceledor substantially
modifiedwithoutatleastten (10)days' priorwrittennoticetoallinsureds;and
(g) A provisionthatany adjustment ofthelosswillbe made by the
Association,and thatallproceeds thereofshallbe paid toeithertheAssociationor aninsurance
trustee,as provided inArticle9 ofthisRestatedDeclaration.
The Board may by resolutiondeterminetheamount ofdeductibleforsuch
insurancepolicy,based on availabilityand costs.Owners shallbe responsibleforthedeductible
totheextentthatitisdetermined they,theirtenantsor guestsareresponsibleforthe damage
causedtotheCommon Maintenance Areas orotherpropertiesthattheAssociationinsures.
8.1.2 LiabilityInsurance.The Associationshallatalltimes maintain
commercial generalliabilityinsurancecoveringthe Common Areas and Common Maintenance
Areas (including,butnotlimitedto,theParks)withlimitsoflossofnot lessthan $1,000,000
combined singlelimitforpersonalinjuryor propertydamage (suchpolicylimitsto be reviewed
atleastannuallyby theBoard and increasedinitsdiscretion),insuringtheAssociation,all
Ownets, and any managing agent againstliabilitytothepublicortoindividualOwners, subject
toa commercially reasonabledeductible.
8.1.3 Workers and Employers Insurance. The Associationshallobtainand
maintain atalltimesworker's compensation and employer'sliabilityinsurancetothe extent
requiredby applicablelaws.
8.1.4 FidelityBonds. The Board shallobtainand maintainatalltimes fidelity
bonds naming theBoard and allotherofficers,directorsand employees oftheAssociation
handling or responsibleforfundsof or administeredby theAssociation.Ifa management agent
hasthe responsibilityforhandling or administeringfundsof theAssociation,themanagement
agentwillbe requiredto maintain fidelitybond coverage foritsofficers,employees and agents
responsibleforsuchfunds. Inno eventmay the aggregateamount ofsuchbonds be lessthan a
sum equal to three(3)months Annual Assessments. The bonds must containwaivers by the
issuersof thebonds ofalldefensesbased upon the exclusionof persons servingwithout
compensation from the definitionof "employees," orsimilartermsor expressions.
8.1.5 InsuranceAgainst Loss of Association'sPersonalProperty.The
Associationshallobtainand maintain atalltimes insuranceagainstlossof personalpropertyof
24 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
the Associationby fire,theft,and otherlosses,withdeductibleprovisionsas theBoard deems
advisable.
8.1.6 OtherInsurance.Such otherinsuranceastheBoard deems advisable;
provided,however, thatnotwithstandingany otherprovisionsherein,the Associationshall
continuouslymaintain ineffectsuch 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,orothergovernmental or quasi-
governmental agency involvedinthe secondarymortgage market,so long assuch agency isa
Mortgagee, an insureror guarantorofa Mortgage, orOwner ofa Lot,excepttotheextentsuch
coverage isnot availableorhasbeen waived inwritingby such agency.
8.2 Owners' Insurance Coverage. Each Owner shallobtainand maintain a
homeowner's insurancepolicycoveringallinsurableimprovements locatedon itsLotand
liabilityresultingfrom useor ownership oftheLot. The insurancecoverage maintainedby the
Associationshallnotbe brought intocontributionwiththeinsuranceobtainedby an Owner
underthisSection.
8.3 Builders' Insurance Coverage. Each Buildershallmaintainthefollowing
msurance coverages:
8.3.1 LiabilityInsurance. Commercial generalliabilityinsurancewith limits
oflossofnotlessthan $1,000,000 combined singlelimitforpersonalinjuryor propertydamage,
subjecttoa commercially reasonabledeductible.
8.3.2 Automobile Insurance.Automobile liabilityinsurancecoveringowned,
hired,and non-owned vehiclesinan amount of notlessthan $500,000 per occurrence.
8.3.3 Workers and Employers Insurance.Worker's compensation and
employer's liabilityinsurancetotheextentrequiredby applicablelaws.
8.3.4 Additionalrequirements.Each insurancepolicyrequiredtobe
maintained by aBuilderunder Sections8.3.1and 8.3.2above shallname Declarantand the
Associationas additionalinsuredsand shallbe endorsed (ifnecessary)toinsurethe Builder's
indemnificationobligationunder Section8.4below. Each Buildershallprovide acertificateof
insuranceevidencingcompliance withthisSectiontoDeclarantand the Associationpriorto
commencing anypreparatoryor constructionactivitieson any Lot,upon request,and upon
renewal orissuanceofnew policies.
8.4 Builders'Indemnification. Each Builderagreesto indemnify,defend and hold
Declarantand the Associationharmless from and againstany claims,demands, actions,suits,
judgments, losses,damages, penalties,fines,costs,or expenses,includingattorneys'fees
(collectivel,"Claims") arisin from or relatinto theactivitiesof theBuilderand its
25 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
employees, agents,consultants,contractorsand supplierswithintheSubdivision;or (b)the
Builder'sfailureto comply withthetermsand conditionsofthisRestatedDeclaration,exceptto
the extentof any Claims caused by the grossnegligenceorintentionalactsofpartyclaiming
protectionunderthisindemnification.
ARTICLE 9-DAMAGE OR DESTRUCTION
9.1 Common Areas. Ifany improvements withintheCommon Areas aredamaged
or destroyedby fireor casualty,therepair,restorationorultimatedispositionof any insurance
proceeds shallbe inaccordancewiththefollowing:
(a) Ifthe insuranceproceeds derivedfrom such lossamount to $75,000 or
less,thentheBoard shallcontractwith any licensedcontractororcontractorstorebuildorrepair
such damage or destroyedimprovements inconformance withtheoriginalplansand
specifications,orifadherencetosuch originalplans and specificationsisimpracticableinthe
Board's opinion,theninconformance withrevisedplans and specificationsprovidedsuch
repairsor rebuildingshallbe ofa qualityand kind substantiallyequivalenttotheoriginal
construction.The Board shallacceptbids only in specificamounts and shallnotenterintoany
cost-plusorotherslidingscalearrangement forcompensation tothecontractor.
(b) Ifthe insuranceproceeds derivedfrom suchlossexceed $75,000,allsuch
insuranceproceeds shallbe paiddirectlytoaninsurancetrusteeasmay be designatedby the
Board, astrusteeforallaffectedOwners and theirrespectiveFirstMortgagees, astheirinterests
may appear. The insurancetrusteeshalldisbursetheinsuranceproceeds periodicallyas
constructionprogresses,subjectto satisfactionof thefollowingconditions:
(i) Upon notificationof thereceiptof insuranceproceeds by the
insurancetrustee,theBoard shallenterintoacontractfora specificdollaramount witha
licensedcontractoror contractorfortherepairorrebuildingofallofthe damaged ordestroyed
improvements, asnearlyas practicabletothe originalplans and specificationsthereofand in
accordancewith allapplicablebuildingcodes.
(ii) The Board shallenterintosaidcontractwithalicensedcontractor
orcontractorswhich shallhave provisionsforperiodicdisbursementsoffunds by theinsurance
trustee.Disbursements tothecontractorshallbe made subjecttothepriorpresentationofan
architect'scertificatecontainingsuch provisionsas may be appropriateinthe circumstancesand
deemed suitableby theBoard, along with customary lienwaivers.
(iii) The Board shallemploy alicensedarchitectto supervisetherepair
and rebuildingtoinsurethatsuch work, servicesand suppliesareof proper qualityand that
constructioniscontemplated inaworkmanlike manner and accordingto plansand specifications.
(c) Iftheproceeds of insurancemaintained by the Associationarenot
sufficienttodefraythe estimatedcostsof reconstructionand repair,orifatany time during
26 -Amended and RestatedDeclarationofProtectiveCovenants, Conditionsand Restrictionsfor
Norton Ranch
reconstructionand repair,or upon completion ofreconstructionand repair,the fundsforpayment
ofthecoststhereofareinsufficient,assessments shallbe made againstallOwners insufficient
amounts toprovide fundsforthe payment ofsuch costs.The foregoingprovisionsofthis
subparagraph areapplicabletotherepairsand reconstructiontobe undertaken by the
Association.
(d) Ifthe amount ofavailableinsuranceproceeds exceed the costof any such
reconstructionor repair,theexcessshallbe paid totheAssociationand appliedby ittoreduce
thecommon expenses oftheAssociation.
9.2 Units. Ifallor any portionofaUnitor any otherImprovements locatedon an
Owner's Lotis/aredamaged by fireorothercasualty,theOwner thereofshalleither(a)restore
the damaged Improvements or (b)remove alldamaged Improvements, includingfoundations,
and leavethe Lot inacleanand safecondition.Any restorationproceeding under (a)above must
be performed sothatthe Improvements areinsubstantiallythesame conditioninwhich they
existedbefore thedamage or destruction,unlessthe owner complies withtheprovisionsof
Article7. The Owner must commence such work within sixty(60) days afterthedamage or
destructionoccursand must complete the work withinsix(6)months thereafter.
ARTICLE 10-CONDEMNATION
Whenever allor any partoftheCommon Areas shallbe taken (orconveyed inlieuof and
underthreatofcondemnation by the Board actingon itsbehalforon 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 disbursedasfollows:
(a) Ifthetakinginvolvesa portionoftheCommon Areas on which
improvements have been constructed,then,unlesswithin sixty(60)days aftersuch takingthe
Declarantand atleastseventy-fivepercent(75%) oftheClassA members oftheAssociation
shallotherwiseagree,the Associationshallrestoreor replacesuch improvements sotaken on the
remaining landincludedintheCommon Areas totheextentlandsare availabletherefore,in
accordance with plansapproved by theBoard oftheAssociation.Ifsuch improvements aretobe
repairedor restored,theprovisionsinSection9.1regardingdisbursement ofinsuranceproceeds
inrespecttocasualtydamage ordestructionshallapply.
(b) Itthetakingdoesnotinvolve any improvements on theCommon Areas,or
ifthereisadecisionmade notto repairor restore,or iftherearenetfunds remaining aftersuch
restorationor replacement iscompleted,thensuch award ornetfundsshallbe paidto the
Associationand appliedby ittoreduce the common expenses.
ARTICLE 11-USE RESTRICTIONS
27 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
11.1 ResidentialUse. Lotsshallonlybe used forresidentialpurposes.No trade,
craft,business,profession,commercial, orsimilaractivityof any kindshallbe conducted on any
Lot,and no goods, equipment, vehicles,materials,or suppliesused in connectionwith any trade,
service,orbusinessshallbe kept or storedon any Lot.Nothing inthisSection11.1shallbe
deemed toprohibit(a)activitiesrelatingtothesaleof residences;(b)therightof Declarantor
any contractoror homebuilder (includinga Builder)toconstructUnitson any Lot,to store
constructionmaterialsand equipment on suchLotsinthenormal courseof construction,and to
use any Unitasasalesofficeormodel home forpurposes ofsalesinthe Subdivision;(c)the
rightoftheOwner ofaLot tomaintainsuchOwner's personalbusinessor professionallibrary,
keep suchOwner's personalbusinessor professionalrecordsor accounts,handlesuchOwner's
personalbusinessorprofessionaltelephonecalls,orconferwithbusinessorprofessional
associates,clients,orcustomers insuchOwner's residence;(d)residentialday carefacilities, or
(e)garage sales,provided thatno Owner may conduct more thanthree(3)garage salesin any
twelve (12)month periodand no individualgarage salemay exceed three(3)days inlength.
11.2 No Tree Removal. No treesidentifiedforpreservationon the approved tree
removal permit orlandscapingplan fortheSubdivision,nor any newly plantedtreesused to meet
theconditionsof approval forthe Subdivision,may be removed without thepriorwritten
approvalofthe City.Any Owner desiringto remove atreefrom hisorherLotisrequiredto
confirmwiththeCitythatsuch treeisnotrequiredtobe maintainedon theapproved tree
removal permit orlandscape plan forthe Subdivision,asthesame may be amended ormodified
from timetotime.
11.3 No Improvements or FiH Material. No Owner may placeorconstructany
Improvements overtheutilityeasements locatedon hisorherLot (asshown on thePlator any
separateeasement agreement ordedicationnow existingor hereaftergrantedpursuanttothe
termsofthisRestatedDeclaration),or filloralterthe drainageswales or any otherstorm water
facilitieslocatedon hisorherLot.
11.4 Rental Restrictions.An Owner shallbe entitledtorentorleasehisorher Unit,
subjecttothe following:
11.4.1 WrittenRentalAgreements. A writtenrentalorleaseagreement is
required,specifyingthat:(i)the tenantshallbe subjecttoallprovisionsof the Restated
Declarationand otherGoverning Documents, and (ii)failureto comply with any provisionofthe
RestatedDeclarationand otherGoverning Documents shallconstitutea defaultundertherental
agreement.
11.4.2 Minimum RentalPeriod.The periodoftherentalorleaseisnot less
than thirty(30)days;and
11.4.3 Tenant Must Be Given Documents. The Owner giveseach tenanta copy
oftheRestatedDeclarationand 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 thesame.
11.5 Air Conditioning Units. No Owner shallinstall,or permittobe installedor
maintained,airconditioningunitsthrough exteriormodificationsof itsUnitor through window
openings. The only airconditioningunitsthatwillbe permittedarethoseairconditioningunits
which areconsideredcentralinnatureand installedon a slab,orsimilarfooting,inthe rearor
sideyard ofaLotoutsideofand adjacenttotheUnit.
11.6 Nuisances. No noxious or offensiveactivityshallbe carriedout upon any Lot,
norshallanythingbe done thereonwhich may be ormay become an annoyance ornuisanceto
theneighborhood.
11.7 Temporary Structures.No structureof a temporary character,including,
without limitingthegeneralitythereof,any trailer,tent,carcanopies,shack,garage,barn,motor
home ormobile home or otheroutbuilding,and no prefabricatedorrelocatedstructureshallbe
usedon any Lotatany timeas a residence,eithertemporarilyor permanently. This restriction
shallnotbe interpretedtolimitthe rightof DeclarantoraBuildertousetrailersor outbuildings
assalesoffices,constructionoffices,materialstoragefacilities, or sanitationfacilities.
11.8 @ns. No sign,banner orbillboardof any kind may be kept or placed on any Lot
or mounted, paintedorattachedto any Unit,fenceorotherimprovement soastobe 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 toastakeinthe ground and extendingnot
more thanthree(3)feetabove the surfaceofthe ground advertisingthepropertyforsale.
11.8.2 "For Rent" Signs.An Owner may erectone (1)signnot exceeding three
(3)squarefeetinareaadvertisingthepropertyforrent.Such signsshallbe visiblefrom the front
oftheUnit only,and shallbe displayedfrom withintheUnit.No such signshallbe erected
withinalawn or landscapeareaon any Lot,or attachedtotheoutsideoftheUnit.
29 -Amended and RestatedDeclarationof ProtectiveCovenants, Conditionsand Restrictionsfor
Norton Ranch
11.8.3 PoliticalSigns. Politicalsignsmay be erectedupon aLot by theOwner
ofsuch Lot advocatingthe electionofone or more politicalcandidatesor thesponsorshipofa
politicalparty,issueor proposalprovided thatsuch signsshallnotbe erectedmore than ninety
(90)days inadvance oftheelectionto which theypertainand areremoved withinfifteen(15)
days aftertheelection.
11.8.4 SubdivisionIdentificationSigns. Signs may be erectedby theDeclarant
to identifythe Subdivision,with approvalfrom the localjurisdictionalauthority,ifapplicable.
11.8.5 Flags. The foregoingrestrictionsshallnotbe deemed to prohibitthe
displayoftheflagoftheUnited Statesby an Owner or occupant of aLotifthe flagisdisplayed
inamanner consistentwithfederalflagdisplaylaw,4 U.S.C. ( 1etseq.
11.8.6 Declarant'sSigns. Signs,bannersand billboardsmay be erectedby the
Declarantand areexempt from theprovisionsofthisSection 11.8.
11.8.7 BuilderSigns. A Buildermay erectsignsand banners on any Lotor
Unitowned by theBuilderifsuch signsand/orbanners are erectedforthepurpose of marketing
and sellingUnits constructedby the Builderon Lots owned by the Builder,subjectto rulesand
restrictionsestablishedby Declarantfrom time to time.A Buildermay alsoerectssignsand/or
bannerson theCommon Areas to market and sellUnitsconstructedby theBuilderon Lots
owned by the Builder,provided thatDeclarantauthorizesinwriting(inDeclarant'ssole
discretion)theerectionofsuch signsand/orbanners on theCommon 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 notbe kept or storedon any
publicstreetwithin the Subdivisionoron any Lot,except asprovided below:
11.9.1 Campers, boats,boattrailers,recreationalvehicles,recreationaltrailers,
and othernon-passenger vehicles,equipment, implements,or accessoriesmay be storedorkept
within anenclosedgarage,oron the sideof theUnit,provided thatitisfullyscreenedfrom view
by a screeningstructureor fencingapproved by the ARC.
11.9.2 Campers, boats,boat trailers,recreationalvehicles,recreationaltrailers,
and othernon-passenger vehicles,equipment,implements,oraccessoriesmay be temporarily
kept on thepublicstreetswithinthe Subdivisionoron a paved driveway locatedon a Lot fora
periodnotto 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 Subdivisionoron any Lot,exceptforcommercial
vehiclesthataretemporarilyparked on such areasforthe solepurpose of servingan Owner, or
those thatareparked withinan enclosedgarage. The Board,however, shallhave the absolute
30 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
authoritytograntapproval forstoringor keeping acommercial vehicleon thedriveway ofaLot
(excludingFutureDevelopment Lots). Notwithstandingthe foregoing,theBoard shallnot
unreasonablywithhold consenttokeep acommercial vehiclebearing insigniaornames where
suchvehicleisdrivenby anOwner pursuanttoOwner's primaryjob. Any Owner wishing to
keep acommercial vehicleon the driveway of any Lot (excludingFuture Development Lots)
shallapply forapproval tothe Board, and shallprovide suchinformationastheBoard,intheir
soleauthority,may require.The Board may from timetotime intheirsolediscretionreview the
approvalto keep acommercial vehicleon thedriveway of any Lot (excludingFuture
Development Lots)to determine ifthevehiclecomplies withtheintentofthe originalapproval.
Upon an adverse determinationby the Board, any commercial vehicleshallbe removed and/or
otherwisebrought intocompliance withtherequirementsofthisSection 11.10.
11.11 Disabled Vehiclesor VehiclesinDisrepair.No Owner shallpermitany vehicle
thatisinanextreme stateof disrepairtobe abandoned or to remain parked on any streetwithin
theSubdivisionoron any Lotfora periodinexcessof twenty-four(24)hours.
11.12 Maintenance or Repair of Vehicles. Any maintenance or repairofvehiclesor
othermachinery or equipment must takeplace entirelywithintheenclosed garage ofanOwner.
11.13 Pets,Livestock and Poultry. No animals,livestockor poultryof any kindshall
be raised,bredorkept on any Lot,exceptforcats,dogs orothergenerallyrecognizedhousehold
petsofareasonablenumber, provided thatthey arenot kept,bred,ormaintained forany
commercial purpose;and provided further,thanno more thanthree(3)adultanimalsmay be
kept on a singleLot. All such animalsshallbe keptinstrictaccordance withalllocallaws and
ordinances(includingleashlaws).Owners shallbe responsibleforcleaningup aftertheirpets'
waste.No animalshallbe allowedtorun atlarge,and allanimalsshallbe kept withinenclosed
areasforpetswhich must be clean,sanitary,and reasonablyfreeof refuse,insectsandwaste at
alltimes.Such enclosedareashallbe constructedinaccordancewith plansapprovedby the
ARC, shallbe of reasonabledesign and constructionto adequatelycontainsuchanimalsin
accordance withtheprovisionshereof,and shallbe screenedsoasnottobe visiblefrom any
otherportionoftheSubdivision.
11.14 Garbage and Refuse Disposal. No Lotshallbe used or maintainedasa dumping
ground forrubbish.Trash,garbage or otherwaste shallnotbe kept,or disposedof,on any Lot
exceptin sanitarycontainers.All equipment forthestorageor disposalofsuch materialshallbe
kept inacleanand sanitarycondition.No cans,bags,containersor receptaclesforthestoringor
disposalof trash,garbage,refuse,rubble,debris,orrecyclablematerialsshallbe stored,kept,
placedor 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 infrontofaresidenceand besideastreetforremoval,
butshallbe removed from view before thefollowingday.
11.15 Detached Buildings. No detached accessorybuildings,including,but notlimited
to,detached garages and storagebuildings,shallbe erected,placed or constructedupon any Lot
31 -Amended and RestatedDeclarationofProtectiveCovenants, Conditionsand Restrictionsfor
Norton Ranch
without the priorwrittenapproval oftheARC. Every outbuilding,inclusiveofsuchstructuresas
detached garages,storagebuildings,greenhouses,doghouses,or children'splayhouses,shallbe
compatible with the dwellingto which itisappurtenantintermsofitsdesign and material
composition.
11.16 Fences and Hedges. Fences,walls or hedges may be erectedormaintainedon
any Lot subjecttolocallawsand the Design & ConstructionGuidelinesand formal approvalby
the ARC. No fencesshallbe constructedinthefrontyard of any Lot,unlessthefrontyard faces
and iscontiguouswithaCommon Area orPark. Fences may be erectedalong thepropertyline
inthesideand rearyards ofa Lot,provided saidfencingisnotlocatedclosertothestreetthan
thefrontoftheUnit. RefertotheDesign & ConstructionGuidelinesformore specific
informationregardingapproved fenceheights,restrictions,and materials.
Notwithstandingtheforegoing,the ARC shallhave therightand authorityto
approve variancesforreasonablecauseortoalleviatehardship asdeterminedinthesole
judgment ofthe ARC; provided however, the ARC may not approve avariancewhich
contradictsthe zoning and/orsubdivisionordinancesofthe City unlessthe Cityhas previously
approved the variance.
Unlessotherwiseagreed between Owners, sideand rearyard fencesthatseparate
adjacentLots shallbe owned and maintained by the Owner on whose Lot the fenceexists,or if
thelocationisindefinite,such fence willbe maintainedjointlyby theOwners ofboth Lots,with
expenses sharedequally.Declaranthereby grantstoeachOwner whose Lot containsafence
(and to any Owner where thelocationof thefenceinrelationtoitspropertylineisindefinite)an
easement overthoseportionsoftheadjacentOwner's Lotasisreasonablynecessarytomaintain
the fence,subjectto reasonableadvance noticeto the adjacentLot Owner.
The provisionsofthisSection 11.16shallnot apply to Declarant.
11.17 General Landscaping. All landscapingmust comply withtheapproved
landscapingplan and thelandscapingrequirementsestablishedby thelocalmunicipalauthority
from timetotime,and eachOwner isrequiredto have hisor her landscapingplanapproved by
theARC. The Owner isresponsibleforlandscapingand maintainingtheareabetween the
Owner's propertylineand thestreet(i.e.,theareabetween the sidewalk and streetcurb).All
landscapingmust be maintained by theOwner pursuanttothetermsofSection6.2.
11.18 Antennae and SatelliteDishes. No exteriorantennas,satellitedishes,
microwave, aerial,tower,orotherdevices forthetransmissionor receptionof television,radio,
or otherforms ofsound or electromagneticradiationmay be erected,constructed,or placedon
any LotorUnit,unlessthey comply with the Design & ConstructionGuidelinesadopted and are
approved by theARC. Refer totheDesign Guideline foradditionalinformationregardingthe
applicablerules,regulationsand placement ofsuchdevices.Such rulesshallnot unreasonably
delay or increasethe costof installation,maintenance,oruse or precludereceptionofa signalof
acceptablequality(theARC, initssolediscretion,may determine what constitutesa signalof
32 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
acceptablequality).Such rulesand regulationsmay prohibitinstallationofexteriorsatellite
dishesor antennas ifsignalsof acceptablequalitycanbe receivedby placingantennasinsidea
Unitwithoutcausing an unreasonabledelayorcostincrease.
11.19 Solar Energy Panels. With the priorwrittenconsentoftheARC, anOwner may
installa ground-mounted or roof-mounted SolarEnergy Panelon itsLots.
The ARC may adopt additionalrulesand regulationsgoverning theinstallation,safety,
placement,and screeningofaSolarEnergy Panel. For purposes ofthisSection,"SolarEnergy
Panel" means a aneldeviceors stem orcombination of aneldevicesors stemsthatrelieson
directsunlightasan energy source,includinga panel deviceor system or combination of panel
devicesor systems thatcollectssunlightforuse intheheatingor coolingofastructureor
building,theheatingor pumping of water,and the generationof electricity.
11.20 Clothes Hanging Devices. Clotheshanging devices exteriortoaUnitshallbe
temporary,unaffixedstructuresnottoexceed six(6)feetinheightand shallnotbe placed nearer
to any streetabuttingtheLotthanthesideyard setbacklineortheback oftheUnit constructed
on theLot.Clotheshanging devicesshallbe screenedfrom publicview as approved by the ARC.
11.21 Window Treatments. Aluminum foil,reflectivefilm,newspapers orsimilar
treatmentsshallnotbe placedon windows or glassdoors.
11.22 Oiland Mining Operations. No oildrilling,oildevelopment operations,oil
refining,quarryingor mining operationof any kindshallbe permittedupon or inany Lot,nor
shalloilwells,tanks,tunnels,mineral excavations,orshaftsbe permittedupon any Lot. No
derrickorotherstructuredesigned foruseinboring foroilornaturalgas shallbe erected,
maintainedor permittedupon any Lot.No tankforthestorageofoilorotherfluidsmay be
maintainedon any ofthe Lotsabove thesurfaceoftheground.
11.23 Garages. Garages may be used asDeclarant'ssalesofficesbeforepermanent
occupancy ofthemain structure;however, salesofficesmust be convertedto garagesbefore
permanent occupancy. With the exceptionof periodswhen garagesareused by theDeclarantas
salesoffices,a garage shallbe maintained solelyforthestorageof automobiles,andno garage
may be enclosedorotherwiseused forhabitation(exceptthesecond storyofa two-storygarage,
ifpermittedby localordinances),nor may any garage doorbe removed exceptwhen necessaryto
repairorreplacea garage doorwith thesame type of garage door.
11.24 Setback Lines. AllUnits and otherstructures(includingfences),permanent or
temporary,habitableor uninhabitable,must be constructed,placedand maintainedin conformity
with setbackstandardsimposed by the localgovernmental jurisdictionalauthority.
11.25 Athleticand Recreational Facilities.Outdoor athleticand recreationalfacilities
such as basketballhoops, swing setsand sportcourtsofa permanent natureshallnotbe placed
on any LotintheSubdivisionbetween the streetand the frontofa Unit;placement ofthese
33 -Amended and RestatedDeclarationofProtectiveCovenants, Conditionsand Restrictionsfor
Norton Ranch
facilitiesof a permanent natureelsewhereon theLotmust be approved inadvance by the ARC.
Temporary facilitiesincludingoutdoorathleticand recreationalfacilitiessuchasbasketball
hoops may be placedon any Lot,provided thatsuch facilitiesareremoved from view when not
inusebut notlaterthanattheend ofeach day. Temporary facilitiesincludingoutdoor athletic
and recreationalfacilitiessuch as basketballhoops,hockey goals,etc.shallnotbe placedon any
streetwithintheSubdivision.
11.26 Water and Sewage Systems. No individualwater supply system or sewage
disposalsystem shallbe permittedon any Lot,includingbut notlimitedtowater wells,cesspools
or septictanks.
11.27 Exterior Holiday Decorations. Lightsor decorationsmay be erectedon the
exteriorofUnitsincommemoration orcelebrationof publiclyobserved holidaysprovidedthat
such lightsordecorationsdo not unreasonably disturbthe peacefulenjoyment of adjacent
Owners by illuminatingbedrooms, creatingnoise or attractingsight-seers.Holiday decorations
or lightsforany publiclyobserved holidaybetween December 1and December 31 of any year,
may notbe displayedbefore November 15thof any year.For otherholidays,decorationsor lights
may notbe displayedmore thantwo (2)weeks in advance of theholiday.
All lightsand decorationsthatarenotpermanent fixturesof theUnitwhich arepartof the
originalconstructionorhave been properlyapproved as permanent improvements by theARC
shallbe removed within thirty(30) days afterthe holidayhasended.
11.28 Retaining WaHs. Retainingwallsmay be constructedon aLot only ifin
compliance with any adopted Design & ConstructionGuidelinesand onlyifapproved inadvance
by the ARC. Retainingwallsmay extend intotherequiredfront,sideor rearsetbacklinesof a
Lot. The ARC may requireany retainingwallwhich exceedstwo (2)feetin heightbe designed
by a qualifiedprofessionalengineerlicensedto practiceengineeringintheStateofMontana.
Retainingwalls constructedby theDeclarantshallbe exempt from thisSection11.28.
11.29 Household Chemicals. Owners shallbe prohibitedfrom dumping orotherwise
disposingof household chemicals withintheProperty,including,but notlimitedto,cleaning
agents,automotive fluids,paint,solventsand othertoxicchemicals.
11.30 Prohibited Plants. Owners shallbe prohibitedfrom plantingthe following
speciesofplantson the Lots:
(a) Cystisusscoparius,commonly known asScotchbroom;
(b) Hedera helix,commonly known as English ivy;
(c) Lythrum salicaria,commonly known as purpleloosestrife;
(d) Phalarisarundinacea,commonly known asreed canarygrass;and
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Norton Ranch
(e) Rubus discolor,commonly known as Himalayan blackberry.
11.31 Rezoning Prohibited. No Owner may apply tothelocalzoning authorityto
rezoneaLotto any classificationallowingcommercial, institutionalorothernon-residentialuse.
Thisrestrictionshallnot apply toDeclarantortorezoningof aFuture Development Lot priorto
constructionoftheinitialUnitson aFuture Development Lot.
11.32 Lot Consolidation and Division.The Owner of two adjoiningLots,withthe
approval oftheARC and appropriatemunicipalauthority,may electtoconsolidatesuchLots
intoone Lot. Such consolidationissubjectto any applicablemunicipal ordinances,and theARC
may impose reasonableconditionsand restrictionson grantingapproval ofthe Lot consolidation,
including(butnot limitedto)imposing additionalmaintenance and landscapingrequirements
and imposing additionallimitationson useofthe consolidatedLot.The Lot consolidationwill
be effectiveupon recordingintheOfficialRecords ofGallatinCounty, Montana adeclarationof
the Owner statingthatthetwo Lotsareconsolidated.The declarationwillincludea written
consenttotheLotconsolidationexecutedon behalfoftheARC by atleastone member thereof
and shallcontaina descriptionof any restrictionsand conditionsimposed asaconditionofsuch
approval.Thereafter,and except ifotherwiseprovided by the ARC asaconditionofits
approval,the consolidatedLots willconstituteone Lotforallpurposes under thisDeclaration,
including(butnotlimitedto)votingrightsand assessments.No Lot may be furthersubdivided.
Thisrestrictionshallnot apply to Declarantor to subdivisionofa FutureDevelopment Lot prior
toconstructionof theinitialUnitson theFuture Development Lot.
11.33 Drainage AlterationProhibited. The surfacewater drainagecontoursof each
Lotshallconform totheapproved gradingplan establishedby theDeclarant.No Owner shallfill
oralterany drainageswaleestablishedby the Declarant,nor shallany Owner installlandscaping
orotherimprovements thatdivertsurfacewaterrunofffrom the drainagepatterns,swalesand
easements establishedby the Declarantwithout thepriorwrittenapproval ofthe ARC.
ARTICLE 12-SPECIAL DECLARANT AND BUILDER RIGHTS
Inadditionto any rightsor easements reservedto Declarantor Builderselsewhere inthis
RestatedDeclarationor any oftheotherGoverning Documents, Declarantand/orBuilders(as
applicable)shallhave the followingrightsinrespecttotheSubdivision:
12.1 Development and Sales Activities.
12.1.1 So long asDeclarantowns any Lotwithinthe Subdivision,Declarant
shallhave therightto constructand maintainupon portionsoftheCommon Areas and any Lots
owned by Declarantsuch facilitiesand activitiesas Declarant,initssoleopinion,may requireor
desireinconnectionwiththeconstructionand saleofUnitsand Lots withinthe Subdivision,
including(butnot limitedto)businessand constructionoffices(withinUnitsor infreestanding
trailers);signs,banners and flags;model units;and salesoffices(withinUnits orinfreestanding
35 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
trailers),subjecttocompliance with governmental ordinances.Declarantshallalsohave
easements foraccesstoand useoftheCommon Areas forsuchfacilitiesatno charge.
12.1.2 So long asaBuilderowns any Lotwithinthe Subdivision,the Builder
shallhave the rightto constructand maintain upon any Lotowned by the Buildersuchfacilities
and activitiesastheBuilderreasonablyrequiresordesiresinconnectionwiththeconstruction
and saleofUnitson Lotsowned by theBuilder,including(butnot limitedto)businessand
constructionoffices(withinUnitsor infreestandingtrailers);signs,bannersand flags(subjectto
Section11.8.7);model Units;and salesoffices(withinUnitsorinfreestandingtrailers),subject
torulesand restrictionsestablishedby Declarantfrom timetotimeand subjectto compliance
with governmental ordinances.
12.2 Control ofand Changes in Development Plan.Every Owner, by acceptanceof
the deed to theirLot,acknowledges thatthe Subdivisionisa multi-phasedmaster planned
community, the development of which islikelytoextendover many years,and thatchanges in
themaster planwilllikelyoccur asthe development oftheSubdivisionproceeds. 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 ISLOCATED. The rightsand limitationssetforthinthis
Section12.2 shallcontinueineffectuntilDeclarantno longerowns any Lotwithinthe
Subdivision.
12.3 Right to Transfer or Assian Declarant Rights.Any orallofDeclarant'sspecial
rightsand obligationssetforthinthisRestatedDeclarationor any otherGoverning Documents
may be transferredinwhole or inpartby Declarantby writteninstrumentexecutedand
acknowledged by Declarantand recordedintherealpropertyrecordsforGallatinCounty,
Montana. The foregoingsentenceshallnot precludeDeclarantfrom permittingotherpersons to
exercise,on aone timeor limitedbasis,any rightreservedtoDeclarantinthisRestated
Declarationwhere Declarantdoes notintendtotransfersuch rightinitsentirety,and insuchcase
itshallnotbe necessarytorecordany writtenassignment unlessnecessarytoevidence
Declarant'sconsenttosuch exercise.
ARTICLE 13- ANNEXATION AND REMOVAL
13.1 Annexation by Declarant. Declarantmay from timetotime and initssole
discretionannex tothe Subdivisionas "AdditionalProperty"any realpropertynow or hereafter
acquiredby it,and may alsofrom timetotime initssolediscretionpermit otherowners ofreal
propertytoannex therealpropertyowned by them intothe Subdivision.The rightsreserved
unto Declarantto subjectadditionalrealpropertytothe RestatedDeclarationshallnotbe implied
or construedso asto impose any obligationupon Declarantto subjectany ofsuch additionalreal
propertytothisRestatedDeclarationortothejurisdictionoftheAssociation,nor any obligation
36 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
tobuildimprovements of any kind on any annexed realproperty.The annexation ofsuch real
propertyshallbe accomplished asfollows:
(a) The owner orowners ofsuch realpropertyshallrecordan amendment to
thisRestatedDeclarationwhich shallbe executed by orbearthe approval ofDeclarantand shall,
among otherthings,describetherealpropertytobe annexed,establishlandclassificationsforthe
AdditionalProperty,establishany additionalordifferentlimitations,uses,restrictions,covenants
and conditionswhich areintendedtobe applicabletosuch property,determine whether such
propertywillbe subjecttoallexistinguses,restrictions,covenantsand conditions,and declare
thatsuch propertyisheldand shallbe held,conveyed, hypothecated,encumbered, used,
occupied and improved subjecttothisRestatedDeclaration.Any such annexationshallbe
effectiveupon thefilingforrecordof suchamendment tothisRestatedDeclarationinthe
OfficialRecords ofGallatinCounty, Montana, unlessotherwiseprovided therein.
(b) The propertyincludedinany suchannexation shalltherebybecome a part
oftheSubdivisionand bound by thetermsofthisRestatedDeclaration,and Declarantand the
Associationshallhave and shallacceptand exerciseadministrationofthisRestatedDeclaration
with respecttosuchAdditionalProperty.
(c) Notwithstanding any provisionapparentlytothe contrary,anamendment
tothisRestatedDeclarationwith respectto any AdditionalPropertymay:
(i) establishsuchnew land classificationsand such limitations,uses,
restrictions,covenantsand conditionswith respecttosuchAdditionalPropertyasDeclarantmay
deem tobe appropriateforthe development oftheAdditionalProperty;and
(ii) with respectto existinglandclassifications,establishadditionalor
differentlimitations,uses,restrictions,covenants and conditionswith respecttosuch Additional
Propertyas Declarantmay deem tobe appropriateforthedevelopment ofsuchAdditional
Property.
(d) There isno limitationon thenumber ofLotswhich Declarantmay create
orannex to the Subdivision,except as may be establishedby applicableordinancesof thelocal
governmental authority.Similarly,thereisno limitationon therightof Declarantto annex
Common Area,exceptas may be establishedby applicableordinancesof thelocalgovernmental
authority.Declarant'srighttoannex realpropertyintothe Subdivisionshallterminateon the
Conversion Date.
(e) Upon annexation,additionalLots soannexed intothe Subdivisionshallbe
entitledto votingrightsassetforthinArticle2 above.
(f) The formula tobe used forreallocatingthecommon expenses ifadditional
Lotsareannexed intothe SubdivisionissetforthinArticle3 above.
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Norton Ranch
(g) No consentorjoinderof any ClassA member orotherpartyexceptthe
recordowner oftheland being annexed shallbe necessarytoeffectany annexationmade
pursuantto thisSection13.1.
13.2 Annexation by Action ofOwners. At any timeaftertheTurnover Meeting,the
Board may requestapproval oftheOwners fortheannexationofadditionalpropertyintothe
Subdivisionto be subjecttoalloftheterms ofthisRestatedDeclarationtothesame extentasif
originallyincludedherein.No such annexationshallbe effectiveunlessapproved by atleast
sixtypercent(60%) ofthevoteof theOwners, and the consentof theDeclarantso long asthe
DeclarantisaClassB member. Any propertythatisadjacenttoor contiguouswith existing
propertysubjectto thisRestatedDeclaration(even ifsuch propertyislocatedacrossa street)
may be annexed heretoaccordingtotheforegoingrequirements;provided,however, thatno such
annexationshallbe effectivewithouttheconsent andjoinderoftheowners ofthepropertytobe
annexed. Such annexationshallbe evidenced by an amendment tothisRestatedDeclaration
signedby the presidentand secretaryoftheAssociationcertifyingthattheamendment was
adopted in accordance withthisRestatedDeclaration,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 aClassA member with one (1)vote per Lot owned.
13.3 Removal by Declarant. Declarantmay from timetotimeand initssole
discretionremove orwithdraw any partof thePropertyfrom the Subdivision,provided that
Declarantobtainsthe writtenconsentoftheowner oftherealpropertyremoved from the
Subdivision.The removal ofa partof thePropertyshallbe accomplished asfollows:
(a) The owner or owners ofsuch realpropertyshallrecordan amendment to
thisRestatedDeclarationwhich shallbe executed by or bear the approval ofDeclarantand shall,
among otherthings,describethe realpropertytobe removed from the Subdivisionand declare
thatsuch realpropertyisno longersubjecttothetermsof thisRestatedDeclaration.Any such
removal shallbe effectiveupon the filingforrecordofsuchamendment tothisRestated
DeclarationintheOfficialRecords ofGallatinCounty, Montana, unlessotherwiseprovided
therein.
(b) The propertyremoved from theSubdivisionshallno longerbebound by
thetermsofthisRestatedDeclarationand thisRestatedDeclarationshallno longerencumber
suchremoved property.
(c) The Lots removed from theSubdivisionshallhave no votingrightsinthe
Associationunder Article2 above from and aftertheeffectivedateof such removal. The Lots
remaining intheSubdivisionafterthe removal,however, shallcontinueto have thevotingrights
setforthinsaidArticle2.
(d) The formulathatwillbe used forreallocatingthecommon expenses if
Lots areremoved from the SubdivisionissetforthinArticle3 above.
38 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
(e) There isno limitationon the realpropertythatDeclarantmay remove
from the Subdivision,provided thatDeclarantcomplies with therequirementsof thisSection
13.3.Declarant'srighttoremove realpropertyfrom theSubdivisionshallterminateon the
Conversion Date.
(f) No consentorjoinderof any ClassA member orotherpartyexceptthe
recordowner oftherealpropertybeing removed from theSubdivisionshallbe necessaryto
effectany removal made pursuanttothisSection13.3.
ARTICLE 14-MORTGAGEES
14.1 Noticeof Delinquency. An institutionalholder,insureror guarantorofa
Mortgage who providesawrittenrequesttotheAssociationwillbe entitledto timelywritten
noticeofany delinquency inthepayment ofanassessmentorfailuretoperform any other
obligationunder the Governing Documents by theOwner ofaLot subjecttoitsMortgage which
isnotcuredwithin sixty(60) days.
14.2 Reimbursement ofFirstMortgagees. FirstMortgagees may, jointlyor singly,
pay taxesorothercharges which areindefaultand which may or have become a charge against
theCommon Areas and may pay overdue premiums on casualtyinsurancepoliciesorsecurenew
casualtyinsurancecoverageupon thelapseofanAssociationpolicy.FirstMortgagees making
such payments shallbe entitledto immediate reimbursement from the Association.
ARTICLE 15-AMENDMENT
15.1 General Amendments.
15.1.1 Except asotherwisespecificallyprovided inthisArticle,the Restated
Declarationmay only be amended by Owners holding atleastseventy-fivepercent(75%) ofthe
votesof the Association,and theconsent oftheDeclarantso long astheDeclarantisaClassB
member. Inno event shallan amendment underthisSection15.1,limitordiminishany rightof
DeclarantreservedinthisRestatedDeclarationwithout thewrittenconsentof Declarant.
15.1.2 An amendment to thisRestatedDeclarationmay be proposed by a
majorityoftheBoard or by atleastthirtypercent(30%) oftheOwners.
15.1.3 Upon approvalof an amendment asprovided herein,thepresidentand
secretaryof the Associationshallexecutean instrumentamending thisRestatedDeclarationand
certifyingthatthe amendment was adopted in accordance withthisRestatedDeclaration,which
certificationshallbe properlyacknowledged inthemanner of acknowledgment of deeds,and the
Board,orotherdulyappointedand authorizedpersons,shallrecordthe instrumentamending this
RestatedDeclarationintheOfficialRecords ofGallatinCounty, Montana. No amendment to
thisRestatedDeclarationiseffectiveuntilrecorded,and the effectivedateofan amendment is
thedateof recording,unlessa laterdate isindicatedinsuch amendment.
39 -Amended and RestatedDeclarationofProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
15.2 Declarant Amendments. Inadditionto specificamendment rightsgranted
elsewhereinthisRestatedDeclaration,the Declarantreservestherighttounilaterallyamend this
RestatedDeclarationforany purpose untilconveyance of thefirstLotintheSubdivisiontoa
person otherthan Declarant.Thereafter,Declarantmay unilaterallyamend thisRestated
Declarationifsuch amendment isnecessaryto (a)bringthisRestatedDeclarationinto
compliance with any provisionof law,including(butnot limitedto)regulatoryamendments
permittedby Section15.3;(b)correctscriveners'orclericalerrors;(c)add AdditionalProperty
pursuanttoSection13.1;or(d)remove partofthePropertyfrom the Subdivisionpursuantto
Section13.3.Declarantshallalsohave therightto unilaterallyamend thisRestatedDeclaration
forany otherpurposepriortothe Turnover Date provided thatthe amendment hasno material
adverse effectupon therightsof any Owner, unlesssuchOwner consentstosuch change in
writing.
15.3 Regulatory Amendments. Notwithstanding any otherprovisionsofthisArticle
15,Declarantshallhave therighttounilaterallyamend thisRestatedDeclarationpriortothe
Tumover Meeting inordertocomply withtherequirementsof the FederalHousing
Administration,theUnited StatesDepartment ofVeterans Affairs,theFarmer's Home
AdministrationoftheUnited States,the FederalNationalMortgage Association,the Government
NationalMortgage Association,the FederalHome Mortgage Loan Corporation,any department,
bureau,board,commission or agency of the United StatesortheStateofMontana or any
corporationwholly owned, directlyor indirectly,by theUnited StatesortheStateofMontana
which insures,guaranteesor providesfinancingfora planned community or lotsina planned
commumty.
ARTICLE 15-REMEDIES
16.1 Remedies. Ifany defaultby any Owner underthe provisionsoftheRestated
DeclarationorotherGoverning Documents shalloccur,the Associationand any Owner shall
have eachand alloftherightsand remedieswhich may be provided forinthisRestated
Declarationand any oftheotherGoverning Documents, and those which may be availableatlaw
orinequity,and may prosecuteany actionor otherproceedings againstsuch defaultingOwner
and/orothersforenforcement of any lien,statutoryor otherwise,includingforeclosureofsuch
lienand the appointment ofareceiverfortheLot and ownership interestof such Owner, or for
damages orinjunction,or specificperformance,orforjudgment forpayment of money and
collectionthereof,or forany combination of remedies,orforany otherrelief.No rightsor
remedies hereinprovided oravailableatlaw or inequityshallbe deemed mutually exclusiveof
any othersuch remedy. Any and allof rightsand remedies may be exercisedatany timeand
from timetotime,cumulativelyor otherwise,by the Associationor any Owner.
To theextentallowed by law,notwithstandingany otherprovisionof thisRestated
DeclarationorotherGoverning Documents, theAssociationshallnot expend inexcess of $5,000
forattorneyfeesand costsforany reasonunlesssuch expenditureisfirstapproved by Owners
holdingatleastfiftypercent(50%) ofthevote rightsintheAssociation.The foregoing
limitationshallnot apply toactionsfordelinquentassessmentsorotherchargesunder this
40 -Amended and RestatedDeclarationof ProtectiveCovenants,Conditionsand Restrictionsfor
Norton Ranch
RestatedDeclarationorthe Goveming Documents; actionsto appointa receiver;actionsto
summarily abate,enjoinand remove astructureorconditionthatviolatesthisRestated
DeclarationortheotherGoveming Documents; or forthedefenseoftheAssociationofan action
orproceedingbroughtagainstthe Association(exceptfornon-mandatory counterclaims).
All expenses of theAssociationin connectionwith any actionsor proceedings,including
courtcostsand attorneys'feesand otherfeesand expenses,and alldamages, liquidatedor
otherwise,togetherwithinterestthereonatthemaximum ratepermittedby law from thedue date
untilpaid,shallbe charged to and assessedagainstsuch defaultingOwner, and shallbe added to
and deemed partofhisorher respectiveassessment (tothesame extentas thelienprovided
hereinforunpaid assessments)upon theLot and upon allofhisadditionsand improvements
thereto,and upon allof hispersonalpropertyupon theLot.
16.2 Attornevs' Fees. Ifanactionorproceeding iscommenced to enforcetheterms
ofthisRestatedDeclaration,the prevailingpartyshallbe entitledtoitsattomey feesand costsin
suchsuitoractiontobe fixedby thetrialcourt,and inthe eventofan appeal,the costofthe
appeal,togetherwithreasonableattomey fees,tobe setby theappellatecourt.Inaddition
thereto,the Associationshallbe entitledtoitsreasonableattomey feesincurredinany
enforcement activitytakentocollectdelinquentassessments,whetherornotsuitoractionis
filed.
ARTICLE 17- GENERAL TERMS
17.1 Term. The covenantsand restrictionsofthisRestatedDeclarationshallrunwith
and bindthelandforaterm of twenty(20)years from thedatethisRestatedDeclarationis
recorded,afterwhich time they shallbe automaticallyextendedforsuccessiveperiodsof twenty
(20)yearsunlessamended orterminatedas provided inArticle14.
17.2 Rights and Obligations. The provisionsof thisRestatedDeclarationand the
otherGoveming Documents and therightsand obligationsestablishedtherebyshallbe deemed
tobe covenantsrunning with the landand shallinureto thebenefitof,and be binding upon, each
and allof the Owners and theirrespectiveheirs,representatives,successors,assigns,purchasers,
granteesand Mortgagees. By therecordingorthe acceptanceofa deed conveying a Lotor any
ownership interestin theLot whatsoever,theperson towhom suchLot orinterestisconveyed
shallbe deemed to acceptand agreetobebound by and subjecttoalloftheprovisionsofthis
RestatedDeclarationand the otherGoverning Documents, whether ornot mention thereofis
made insaiddeed.
17.3 Waiver. No restriction,condition,obligationor provisioncontainedinthis
RestatedDeclarationshallbe deemed to have been abrogatedorwaived by reasonof any failure
toenforcethe same, irrespectiveof thenumber of violationsorbreaches thereofthatmay have
occurredand the number of times thatthepertinentrestriction,condition,obligationor provision
was not enforced.
41 -Amended and RestatedDeclarationofProtectiveCovenants,Conditions and Restrictionsfor
Norton Ranch
17.4 Severability.Invalidationor partialinvalidationof any provisionofthisRestated
Declarationshallnot affectany oftheremainingprovisionsoftheRestatedDeclaration.
17.5 Personal Pronouns. All personalpronouns usedinthisRestatedDeclaration,
whether used inthemasculine,feminine orneutergender,shallincludeallothergenders;the
singularshallincludethe plural,and viceversa.
17.6 Headings. The headings containedinthisRestatedDeclarationareforreference
purposesonly and shallnot inany way affectthemeaning or interpretationofthisRestated
Declaration.
17.7 Conflicts.Ifthereisaconflictbetween thetermsofthisRestatedDeclaration
and any otherGoverning Documents, thisRestatedDeclarationshallcontrol.
17.8 Security.The Associationmay, butisnot obligatedto,maintain or support
certainactivitieswithinthe Subdivisiondesigned to increasesecuritywithinthe 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 nthasexecutedand deliveredthisRestated
Declarationasof 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 ofNORTON PROPERTIES, LLC, an Oregon limited
liabilitycompany, on behalfofthe company.
NOTARY PUBLIC-OREGON Notary Public inand forthe Stateof OregonCOMMISSIONNO.458862
MYcomissioNExPIRESJULY182015 My Commission expires: 1- tb -&\$
[Signaturescontinueon thefollowingpage]
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 ofDeschutes )
The foregoinginstrumentwas acknowledged beforeme this\ day of Otto ,
2011,by Kevin Spencer,the=hdembe.ofNORTON RANCH HOMES, LLC, an Oregon limited
liabilitycompany, on behalfofthe company. *Manager
-PrintName: At MLq 0 .6 Le
KIMB L G RIE Notary Publicinand 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 propertylocatedintheCity of Bozeman, County ofGallatinand Stateof Montana, being
more particularlydescribedasfollows:
Norton EastRanch SubdivisionPhase 1,recordedon February 16,2011, as Document
Number 2382592 intheOfficialRecords ofGallatinCounty, 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 Noticeof Meetings...................................................................................................5
4.6 Place of Meetings.....................................................................................................5
4.7 Adjournment of Meetings........................................................................................5
4.8 Quorum ....................................................................................................................5
4.9 MajorityVote...........................................................................................................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- TableofContents
5.8 Liabilityand Indemnificationof Directors,Officers,Manager and Managing
Agent........................................................................................................................9
5.9 SpecialCommittees ...............................................................................................10
5.I0 Powers ofBoard.....................................................................................................10
5.11 DutiesofBoard ......................................................................................................11
ARTICLE VI MEETINGS OF THE BOARD............................................................................13
6.1 InitialMeeting........................................................................................................13
6.2 RegularMeetings...................................................................................................13
6.3 SpecialMeetings....................................................................................................13
6.4 Emer gency Meetings .............................................................................................13
6.5 Closed Session.......................................................................................................13
6.6 Ad journm ent..........................................................................................................14
6.7 Board Meetings Open to allMembers...................................................................14
6.8 Placeof Meetings...................................................................................................14
6.9 Noticeof Meetings.................................................................................................14
6.10 Votingby theBoard...............................................................................................14
6.11 Quor um .................................................................................................................. 14
6.12 Consent inLieu of Meeting ...................................................................................15
6.13 ParticipationofDirectorsby Telephonic Communication....................................15
ARTICLE VII OFFICERS OF ASSOCIATION........................................................................15
7.1 Enumeration of Officers........................................................................................15
7.2 ElectionofOfficers................................................................................................15
7.3 Term.......................................................................................................................15
7.4 Resignationand Removal ......................................................................................15
7.5 Vacancies ...............................................................................................................16
7.6 Duties.....................................................................................................................16
7.7 Execution ofInstruments.......................................................................................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 Records.........................................................................................18
9.3 FinancialStatements..............................................................................................1 8
9.4 Tax Returns............................................................................................................18
9.5 Payment Vouchers .................................................................................................1 8
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 ofContents
EXHIBIT C
LEGAL DESCRIPTION OF COMMON AREAS
Real propertylocatedinthe Cityof Bozeman, County ofGallatinand Stateof Montana, being
more particularlydescribedas follows:
Those tractsidentifiedas"Open Space" on theplatofNorton East Ranch SubdivisionPhase
1,recordedon February 16,2011,as Document Number 2382592 intheOfficialRecords of
GallatinCounty,Montana.
EXHIBIT C
EXHIBIT D
LEGAL DESCRIPTION OF FUTURE DEVELOPMENT LOTS
Real propertylocatedin theCity of Bozeman, County ofGallatinand Stateof Montana, being
more particularlydescribedas follows:
Lot 1,Block 1;Lots 1and 2,Block 2;Lot 1,Block 3,asshown ontheplatofNortonEast
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 oftheAssociationisNorton Ranch Community Association,aMontana
nonprofitcorporation,hereinafterreferredtoasthe"Association."
ARTICLE II
DEFINITIONS
2.1 "Association"
"Association"shallhave themeaning given inthe introductoryparagraph tothese
Bylaws.
2.2 "Board"
"Board" shallmean theBoard ofDirectorsof the Association.
2.3 "Conversion Date"
"Conversion Date" shallbe the dateupon which ClassB membership shallceaseand be
convertedtoClassA membership. Such dateshallbe thedatewhich istheearlierof (i)thedate
atwhich seventy-fivepercent(75%) ofthetotalLots anticipatedtobe createdwithinthe
Subdivisionhave been conveyed toClassA members; (ii)ten (10)yearsafterconveyance ofthe
firstLotto 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 aredesignatedassuch inwritingby applicableDeclarant,and who
consent inwritingtoassume thedutiesand obligationsof theDeclarantwith respecttotheLots
acquiredby suchsuccessoror assign.
2.5 "Declaration"
"Declaration"shallmean and refertothe Amended and RestatedDeclarationof
ProtectiveCovenants,Conditions,and RestrictionsforNorton Ranch, and any amendments or
supplements theretomade in accordance withitsterms.
2.6 "Director"
"Director"shallmean amember of theBoard.
1 -Bylaws of theNorton Ranch Community Association
2.7 "Governing Documents"
"Governing Documents" shallmean the Declarationand the Articleof Incorporation,
Bylaws and Rulesand RegulationsoftheAssociation,allasmay be amended from time to time.
2.8 "Lot"
"Lot" shallmean the lotsoflandindicatedassuchon the Plat.
2.9 "Member"
"Member" or "Members" shallmean Declarantand every recordowner, whether one or
more persons or entities,offeesimple titleto any Lot,includingcontractsellers,but excluding
thosehaving aninterestmerely as securityforthe performance of an obligation.There shallbe
two (2)classesof membership, Class A membership and ClassB membership, as describedin
Section2.2oftheDeclarationand inSection3.3oftheseBylaws. All Members shallalsobe
Owners.
2.10 "Owner"
"Owner" or "Owners" shallmean Declarantand every recordowner, whether one or
more personsor entities,of feesimple titleto any Lot,includingcontractsellers,but excluding
those having an interestmerely as securityforthe performance of an obligation.AllOwners
shallalsobe Members.
2.11 "Plat"
"Plat"shallmean the latofNorton EastRanch SubdivisionPhase 1,recordedon
February 16,2011,asDocument Number 2382592 intheOfficialRecords ofGallatinCounty,
Montana, and any additionalplatsthatmay be annexed tothe SubdivisionasAdditionalProperty
(asdefinedintheDeclaration).
2.12 "Property"
"Propertv"shallmean the realpropertydescribedinExhibit A totheDeclarationand
such additionstheretoas may be brought withinthejurisdictionoftheAssociationandbe made
subjecttotheDeclaration.
2.13 "Turnover Meeting"
"Turnover Meeting" shallbe the meeting calledby the Declarantforthepurpose of
turningoveradministrativeresponsibilityoftheAssociationto the Members.
2.14 Other Terms
Capitalizedtermsused hereinwithout definitionshallhave therespectivemeanings given
to them inthe Declaration.
2 -Bylaws oftheNorton Ranch Community Association
ARTICLE III
MEMBERSHIP AND VOTING RIGHTS
3.1 Membership
The Declarantand every otherOwner of aLot by virtueof being anOwner of aLot shall
be aMember oftheAssociation.Membership shallbe appurtenanttoand shallnot be separated
from ownership of any Lot. Transferof ownership ofaLot shallautomaticallytransfer
membership intheAssociation.Without any otheractor acknowledgment, Owners shallbe
governed and controlledby theGoverning Documents. There shallbe two classesof
membership, ClassA membership and Class B membership, asdescribedinSection3.3ofthese
Bylaws.
3.2 Suspension
All votingrightsofaMember shallbe suspended duringany periodinwhich such
Member isdelinquentinthepayment of any assessment duly establishedpursuanttothe
Declarationor isotherwiseindefaulthereunder or under any otherGoverning Documents. The
Board may alsosuspend theMember's righttouseof any oftheCommon Areas during such
periodofdefault.
3.3 Voting Rights
The Associationshallhave two (2)classesof votingmembership:
A. Class A Membership.
ClassA Members shallbe allOwners withtheexceptionof Declarant,provided that
Declarantshallbecome aClass A Member from and aftertheTurnover Date. Each Class A
Member isentitledto the greaterof (a)one (1)voteforeach Lotowned or (b)one (1)vote for
eachUnitconstructedon each Lotowned. When more thanone (1)person holds an interestin
any Lot,allsuch persons shallbe Members, butthevoteforsuchLot shallbe exercisedasthey
among themselves determine;provided,however, thattheOwners ofthatLot shallnot castmore
votesthanthenumber of votesallocatedtotheLot by thepreceding sentence.Ifthe co-Owners
of aLotcannot agree upon thevoteforthe Lots,thenthevote oftheLotshallbe disregardedin
determiningtheparticularmatteratissue.
B. Class B Membership.
The Class B Member shallbe Declarant,provided thatthe ClassB membership shall
terminateand become convertedtoClassA membership on the Conversion Date. The Class B
Member isentitledtothe greaterof (a)three(3)votesforeach Lotowned or (b)three(3)votes
foreach Unitconstructedon eachLot owned.
3 -Bylaws oftheNorton Ranch Community Association
ARTICLE IV
MEETINGS OF MEMBERS
4.1 InitialMeeting
The initialmeeting oftheAssociationshallbe heldwithinone (1)yearafterthe
Associationisformed by filingofthe Articlesof Incorporation.Declarantshallcalltheinitial
meeting by writtennoticeto each Owner inaccordancewiththerequirements ofSection4.5,
exceptthatDeclarantshallfulfillthe roleof secretary.
4.2 Turnover Meeting
The DeclarantshallcalltheTurnover Meeting forthepurpose of tuming over
administrativecontroloftheAssociationtotheClassA Members withinninety(90)days
followingthe Conversion Date. Ifthe Declarantdoes notcalltheTurnover Meeting withinthe
time specified,any Owner may calltheTumover Meeting. Notice oftheTumover Meeting shall
be given inaccordance withtherequirementsofSection4.5.At the Turnover Meeting,the
Members shallelectanew Board inaccordancewiththeterms ofArticleV, whetherornota
quorum ispresentatsuch Tumover Meeting, and Declarantshalldelivertothe Board the
documents listedon attachedSchedule 1.
4.3 Annual Meetings
The Associationshallholda meeting oftheMembers eachcalendaryear. Such annual
meeting shallbe heldon adateand atatime designatedby the Board from timeto time,and
noticeoftheannual meeting shallbe senttoallMembers inaccordancewiththerequirementsof
Section4.5.
At the annual meeting,new members of the Board shallbe appointedorelected(as
applicable)toreplacethosemembers whose termshave expiredpursuanttothetermsofSection
5.3,and theBoard shalltransactany otherbusinesswithinthepowers oftheAssociation.
The orderofbusinessatannual meetings oftheAssociationshallbe:
(a) Callingoftherolland certifyingofproxies;
(b) Proofofnoticeof meeting orwaiver of notice;
(c) Reading ofminutesof precedingmeeting;
(d) Reports of officers;
(e) Reports of committees,ifany;
(f) Electionof Directors;
(g) Unfinishedbusiness;
(h) New business;and
(i) Adjournment.
4.4 SpecialMeetings
Specialmeetings oftheAssociationmay be calledatany time by thepresident,by a
majorityoftheBoard, orby writtenrequestof Members entitledtocastatleastfivepercent(5%)
4 -Bylaws of the Norton Ranch Community Association
ofthevotesofthe AssociationpursuanttoMCA 35-2-527(1)(a).Noticeofa specialmeeting
shallbe senttoallMembers inaccordancewiththerequirementsofSection4.5,andbusiness
transactedata specialmeeting shallbe restrictedtothepurposes setforthinsuchnotice.
4.5 Notice of Meetings
Written noticeof any meeting oftheAssociationshallbe givenby thepresident,
secretaryorotherperson authorizedby theBoard tocalla meeting atleastten(10)days butnot
more than sixty(60)days before such meeting. The noticeshallbe hand-deliveredorsentby
prepaidfirst-classUnited Statesmailtoeach Member, and toeach Mortgagee who has requested
notice,tothemailing addresslastappearingon thebooks oftheAssociation(ortosuch mailing
addressas aMember or Mortgagee has designatedinwritingto theAssociationatleastten (10)
dayspriortothegivingofsuchnoticeofthemeeting). The noticeofa meeting shallstatethe
timeand placeofthemeeting and thebusinesstobe placedon the agenda by the Board fora
voteoftheMembers, includingthe generalnatureof any proposed amendment totheArticlesof
Incorporationof theAssociation,the Declaration,theseBylaws, any budget or changes inthe
previouslyapproved budget thatresultina change inassessment obligation,or any proposalto
remove aDirector.Noticeofa meeting may be waived by any Member atany time before or
afterthe meeting. No Member who ispresentata meetingmay objecttotheadequacy or
timelinessofthenoticegiven.
4.6 Place of Meetings
Meetings oftheAssociationshallbe held withinten (10)milesoftheSubdivision,atan
exactlocationdetermined by the Board 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 adjournthemeeting toadatenot lessthan two (2)
days normore thanten(10) days from the time ofthe originalmeeting withoutsendinganother
noticeto the Members under Section4.5.The adjournment provisionsofthisSectiondo not
apply toactionsproposed tobe takenby writtenballot.
4.8 Quorum
The presence atthemeeting ofMembers entitledto cast,eitherin person orby proxy,
twenty percent(20%) of thevotesofthe Associationshallconstitutea quorum forany action,
unlessa greaterpercentageisrequiredelsewhere intheDeclarationor theseBylaws. The
subsequentjoinderofMember inthe actiontaken ata meeting by signingand concurringinthe
minutes thereofshallconstitutethepresence ofsuchMember forthepurpose ofdetermininga
quorum. When a quorum isonce presentto organize a meeting,itcannot bebroken by the
subsequent withdrawal ofa Member or Members.
5 -Bylaws oftheNorton Ranch Community Association
4.9 Majority Vote
When a quorum ispresentatany meeting oftheMembers, the vote ofOwners holding
more than fiftypercent (50%) ofthevotesoftheAssociationpresent,inperson orby proxy,at
themeeting shallbe binding on allOwners forallpurposes,except where a higherpercentage
voteisrequiredby theGoverning Documents.
4.10 Proxies
A votemay be castinperson or by proxy. A proxy may requiretheholdertocastavote
foror againstany specialproposalsetoutinthenoticecallingthe meeting. A proxy shallbe in
writingand filedwiththesecretarybeforeor duringthemeeting. A proxy shallexpireeleven
(11)months afterthedateitwas signedunlessashorterperiodisspecifiedintheproxy;
provided,however, thatappointment ofa proxy isrevoked iftheMember appointingtheproxy
(i)attendsany meeting and votes inperson,(ii)signsand deliverstothe secretaryeithera
writingstatingthatthe appointment of theproxy isrevoked ora subsequent appointment form,
or (iii)sellshisorherLot. Unless withdrawn, a proxy given toanotherperson tovoteata
specificmeeting shallalsobe validatan adjourned meeting calledunder theprovisionsof
Section4.7.The Associationmust retainproxiesandballotsforone (1)year from thedateofthe
determinationofthevote.
4.11 Fiduciary and Corporate Owners.
An executor,administrator,conservator,guardianortrusteemay vote,inperson orby
proxy,atany meeting of the Associationwith respectto any Lotowned orheld insuch capacity,
whether ornotthesame hasbeen transferredtosuch person'sname; provided,however, that
such person must providethesecretarywithwrittenevidence satisfactoryto the secretarythatthe
person isthe executor,administrator,conservator,guardianor trustee,holding suchLot insuch
capacity.Any person votingon behalfofaLot owned by a corporationorotherentitymust
provide the secretarywithwrittenevidence,satisfactorytothe secretary,thatsuch person isthe
duly constitutedrepresentativethereof.
4.12 Voting by Mail or Electronic Ballot.
Except assetforthin subsection(f)below, the Board, initsdiscretion,may providethata
vote,approvalorconsentof any Member be givenby regularmail,electronicmailorfacsimile
inaccordance withtheprocedure outlinedbelow. For purposes ofthisSection,"writtenballot"
shallincludeany ballotdistributedby prepaidfirst-classUnited Statesmail,electronicmailor
facsimile.
(a) Inthecaseof an electionofBoard members by writtenballot,thenin
additiontotheotherrequirementssetforthinthisSection4.12,the followingproceduresmust be
followed:
(i) theexistingBoard members must advisethesecretaryinwritingof
the names of proposed Board members sufficientto constitutea fullboard andofadate
atleastfifty(50)days aftersuchadviceisgiven by which allvotes aretobe received;
6 -Bylaws of theNorton Ranch Community Association
(ii) the secretary,withinfive(5)days aftersuchadviceisgiven,must
give writtennoticeofthenumber of Board members tobe electedand ofthenames ofthe
nominees toallMembers;
(iii) the noticemust statethatany suchOwner may nominate an
additionalcandidateor candidates,nottoexceed thenumber of Board members tobe
elected,by givingwrittennoticeofsuchnomination tothe secretaryon orbeforea
specifieddatewhich must be fifteen(15)days from thedateafterthenoticewas givenby
the secretary;and
(iv) five(5)days aftersuch specifieddate,thesecretarymust give
writtennoticetoallMembers, statingthe number ofBoard members tobe elected,stating
thenames ofallpersonsnominated by the Board and by the Members on orbeforethe
deadline,statingthateachMember may castavote by mailand statingthe deadline
establishedby theBoard by which suchvotesmust be receivedby the secretaryatthe
addressof theprincipalofficeoftheAssociation(which must be specifiedinthe notice)
and thatvotesreceivedafterthatdate willnot be effective.
(b) Any actionthatmay be takenatany annual,regularor specialmeeting of
the Associationmay be takenwithouta meeting ifthe Associationdeliversa writtenballotto
every Associationmember thatisentitledtovoteon thematter.
(i) A writtenballotmust setfortheach proposed actionand providean
opportunityto vote foror againsteach proposed action.
(ii) The Board must provide owners withatleastten(10)days'notice
beforewrittenballotsaremailed or otherwisedelivered.
(iii) If,atleastthree(3)days before writtenballotsare scheduledtobe
mailedor otherwisedistributed,atleasttenpercent(10%) oftheOwners petitionthe
Board requestingsecrecyprocedures,awrittenpaper ballotmust be accompanied by a
secrecyenvelope,areturnidentificationenvelope tobe signedby theowner and
instructionsformarking and returningthepaper ballot.Inthisinstance,no electronic
mail votingwillbe accepted.Written paper ballotsthatarereturnedinsecrecyenvelopes
may notbe examined orcounted beforethedeadlineforreturningballotshas passed.
(c) Matters thatmay be voted on by writtenballotwillbe deemed approved or
rejectedasfollows:
(i) Ifapproval ofa proposed actionotherwisewould requirea meeting
atwhich acertainquorum must be presentand atwhich acertainpercentageoftotal
votescastisrequiredtoauthorizethe action,theproposalwillbe deemed approved when
thedate forreturnofballotshas passed,a quorum ofMembers has voted,andthe
requiredpercentageof approving voteshas been received.Otherwise,theproposalwill
be deemed tobe rejected.
7 -Bylaws oftheNorton Ranch Community Association
(ii) Ifapprovalofa proposed actionotherwisewould requireameeting
atwhich a specifiedpercentage ofOwners must authorizethe action,theproposalwillbe
approved when thepercentage oftotalvotescastinfavorof theproposal equalsor
exceedssuch requiredpercentage.The proposalshallbe deemed tobe rejectedwhen the
number ofvotescastinoppositionrendersapproval impossibleorwhen boththedatefor
retum ofballotshas passed and such requiredpercentagehasnotbeen met.
(d) All solicitationsforvotesby writtenballotmust statethe following:
(i) Ifapprovalofthe proposalby writtenballotrequiresthatthe total
number ofvotescastequal orexceed acertainquorum requirement,the number of
responsesneeded to meet such quorum requirement;
(ii) Ifapprovalofa proposal by writtenballotrequiresthatacertain
percentageoftotalvotescastapprove the proposal,therequiredpercentageoftotalvotes
needed forapproval;and
(iii) Ifthe matterbeing votedon istheelectionofDirectorstothe
Board,the additionalitemssetforthinsubsection(a)above.
(e) All solicitationsforvotesby writtenballotmust specifythe periodduring
which the Associationwillacceptwrittenballotsforcounting,and adatecertainon which all
ballotsmust be retumed tobe counted.
(f) Action by writtenballotmay notsubstitutefortheTumover Meeting or
theannual meeting oftheAssociation.
ARTICLE V
BOARD OF DIRECTORS
5.1 Number and Qualification
The affairsof the Associationshallbe managed by aBoard consistingof (a)three(3)
DirectorspriortotheTumover Meeting and (b)between three(3)Directorsand five(5)
DirectorsaftertheTumover Meeting, asdetermined by the Members from time totime. The
Directorsneed notbe Members priortotheTurnover Meeting butshallbe Members afterthe
Tumover Meeting; provided,however, thatifaLot isowned by more than one (1)Owner, only
one (1)Owner ofthatLot may serveon the Board atany time.
5.2 Appointment ofDirectors
Untilthe Turnover Meeting, DeclarantshallappointallDirectors,and may remove and
replaceany Director,with orwithout cause,exceptthatDeclarantmay revocablyor irrevocably
delegatethepower to appoint,remove and replaceDirectorshereunder by writteninstrument
deliveredtothe Associationnaming the partytowhom thepower to appointDirectorshasbeen
delegated.At and afterthe Turnover Meeting,theDirectorsshallbe electedinthemanner
provided in Section5.3.
8 -Bylaws oftheNorton Ranch Community Association
5.3 ElectionofDirectors
At the Turnover Meeting, the Directorsappointedby Declarantor itsappointeeshall
submit theirresignationsand the Members shallelectnew Directorsas provided herein.Ifthree
(3)Directorsareelected,one (1)Directorshallbe electedfora term ofone (1)year and two (2)
Directorsforaterm oftwo (2)years.Iffive(5)Directorsare elected,two (2)Directorsshallbe
electedforaterm ofone (1)year and three(3)Directorsshallbe electedtoserveforaterm of
(2)years.Thereafter,ateach annual meeting ofthe Association,the Members shallelectthe
number ofDirectorsequal to the number whose terms arethen expiring,eachto serveatermof
two (2)years.Any Directormay servemore thanone (1)term. Voting forDirectorsshallnotbe
cumulative.
5.4 Removal
Any Director,otherthana Directorappointedby Declarant,may be removed, with or
without cause,by Owners holding atleasta majorityofthe votingrightsintheAssociationwho
arepresent,inperson or by proxy,atany meeting oftheMembers atwhich a quorum ispresent.
No removal ofaDirectoriseffectiveunlessthematterofremoval was includedinthenoticeof
themeeting and the Directorwhose removal isproposed isgiven the opportunitytobeheard at
themeeting. At themeeting,the Members shallelecta replacement Directorto servethe
remainderofthereplacedDirector'sterm.
5.5 Resignation
Any Directormay resignatany time by sending a writtennoticeofsuch resignationto
the secretary.Unless otherwisespecifiedin such notice,a resignationshalltake effectupon
receiptofthenoticeby thesecretary.
5.6 Vacancies
Vacancies on theBoard causedby thedeath,resignation,orremoval ofaDirectorshall
be filledby vote ofthe majorityoftheremaining Directors,even ifthey constitutelessthan a
quorum. Any Directorsoelectedshallservethe remainder ofthereplacedDirector'sterm.
5.7 Compensation
No Directorshallreceivecompensation forany servicehe or she may rendertothe
Association.However, any Directormay be reimbursedforhisorheractualout-ofpocket
expenses reasonablyincurredintheperformance of hisorher duties.
5.8 Liabilityand Indemnification of Directors,Officers,Manager and Managing
Agent
The Directorsand officersof theAssociationshallnotbe liabletotheAssociationorthe
Members forany mistake ofjudgment, negligence,or otherwiseexcept fortheirown willful
misconduct orbad faith.The Associationshallindemnify and holdharmless each Directorand
officerand themanager or managing agenton behalfof the Associationunlesssuchcontract
9 -Bylaws oftheNorton Ranch Community Association
shallhave been made inbad faithor contrarytotheprovisionsoftheDeclarationorofthese
Bylaws. Each Directorand officerand the manager or managing agent,ifany,shallbe
indemnifiedby the Associationagainstallexpenses and liabilities,includingattorneys'fees,
reasonablyincurredor imposed upon them inconnectionwith any proceeding to which theymay
be a party,orwhich theymay become involvedby reasonof being or having been a Director,
officer,manager or managing agent and shallbe indemnifiedupon any reasonablesettlement
thereof;provided,however, thereshallbe no indemnity ifthe Director,officer,manager or
managing agent isadjudged guiltyofwillfulnonfeasance,misfeasance or malfeasance inthe
performance oftheirduties.As to any manager or managing agentthisSectionshallonly be
applicabletothirdpartytortclaims up totheamount oftheAssociation'sliabilityinsurance
coverage and shallnotinany way apply to contractualliabilityor obligationsunder the
management contract.
5.9 SpecialCommittees
The Board by resolutionmay designateone ormore specialcommittees,each committee
toconsistoftwo (2)ormore Members which, totheextentprovided insaidresolution,shall
have and may exercisethe powers setforthin saidresolution.Such specialcommittee or
committees shallhave suchname or names asmay be determined from timetotime by the
Board. Such specialcommittees must keep regularminutes oftheirproceedings and reportthe
same totheBoard when required.The members ofsuch specialcommittee orcommittees
designatedshallbe appointedby the Board orthepresident.The Board or the presidentmay
appointMembers tofillvacancieson eachofsaidspecialcommittees occasionedby death,
resignation,removal,or inabilityto actforany extended periodof time.
5.10 Powers ofBoard
The businessand affairsoftheAssociationshallbe managed by the Board. The Board
may exerciseallofthepowers of a nonprofitcorporationundertheMontana Nonprofit
CorporationAct (beingChapter 2,Title35 of the Montana Code),excepttoextentthepowers of
theBoard arelimitedby theGoverning Documents orthelaws oftheStateofMontana. The
Board shallhave thepower to:
(a) To adopt and publishthe Rules and Regulationsgoverning theuseof
Common Areas,and the personalconductof the Members and theirgueststhereon,and to
establishfinesforthe infractionthereof;
(b) To suspend aMember's votingrightsand/orrighttouse the Common
Areas (otherthanstreetsand roadways) during any periodinwhich suchMember isindefaultin
thepayment of assessments leviedby theAssociation.Such rightsmay alsobe suspended,after
noticeand a hearing,fora periodnottoexceed sixty(60)days foraninfractionoftheRules and
Regulationsoraviolationof the Declaration;
(c) To declaretheofficeof aDirectortobe vacantintheeventsuch Director
shallbe absentfrom three(3)consecutiveregularmeetings of theBoard withoutjustcause
having been furnishedtoand acceptedby theBoard;
10 -Bylaws ofthe Norton Ranch Community Association
(d) To adopt an annual budget fortheoperationoftheAssociation;
(e) To levy and collectassessments,latefees,interestand finesas providedin
the Governing Documents, includingfilingliensagainstLotsand institutinglegalproceedingsto
collectsuch assessments,latefees,interestand fines;
(f) To appointand disbandsuchcommittees astheBoard deems appropriate;
(g) To establish,disburseand maintain such pettycash asisnecessaryfor
efficientlycarryingon thebusinessoftheAssociation;
(h) To engage theservicesofa manager, an independent contractor,orsuch
employees and contractorsasitdeems necessary,and toprescribetheconditions,compensation
and dutiesoftheirwork. Such power shallincludeauthorityto enterintomanagement
agreements withotherpartiesto manage, operateorperform allor any partof the affairsand
businessofthe Association;
(i) To executealldeclarationsof ownership fortax assessment purposes with
regardtotheCommon Areas,ifany,on behalfofallOwners;
(j) To borrow fundstopay costsofoperationof theAssociationwiththe
approvalof sixtypercent(60%) oftheMembers presentata meeting oftheMembers atwhich a
quorum ispresent;
(k) To granteasements or rights-of-waytoany utilitycompany, publicagency
ortoany otherentity;
(1) To protectordefend the Common Areas from lossor damage by suitor
otherwise,and to provide adequate reservesformaintenance and replacement oftheCommon
Maintenance Areas;
(m) To adjusttheamount, collectand use any insuranceproceedsto repair
damage orreplacedamaged orlostproperty,and ifproceeds are insufficienttorepairdamaged
orreplacelostproperty,toassesstheOwners inproportionateamounts to cover thedeficiency;
(n) To enforcethe provisionsoftheGoverning Documents and toenjoinand
seek damages from any Owner forviolationofsuch Governing Documents; and
(0) To exerciseany additionalor differentpowers necessaryordesirablefor
thepurpose of carryingout thefunctionsofthe Associationpursuantto the Governing
Documents orotherwisepromoting thegeneralbenefitof theMembers of the Association.
5.11 Duties ofBoard
Itshallbe the duty of theBoard:
(a) To cause tobe kept a complete recordof allitsactsand corporateaffairs
and topresenta statementthereoftothe Members attheannualmeeting oftheMembers or at
11 -Bylaws oftheNorton Ranch Community Association
any specialmeeting,when suchstatementisrequestedinwritingby one-fourth(1/4)ofthevotes
oftheMembers who areentitledto vote;
(b) To superviseallofficers,agentsand employees ofthisAssociation,and to
seethattheirdutiesareproperlyperformed;
(c) To fixthe amount ofallassessmentsrequiredor permittedunderthe
Declarationagainsteach Lot,and tosend writtennoticeofeach such assessment toevery Owner;
(d) To issue,ortocausean appropriateofficerto issue,upon demand by any
person,acertificatesettingforthwhether ornotassessmentshave been paidin respecttoa
particularLot. A reasonablecharge may be made by theBoard forthe issuanceofthese
certificates,and theinformationcontainedon the certificatesshallbe binding on theAssociation.
(e) To procureand maintain adequate liabilityand propertyinsuranceon
propertyowned by the Associationorotherpropertyforwhich theAssociationhasan obligation
under the Declarationor theseBylaws toinsureand,ifdeemed appropriate,insuranceon the
behalfof any Director,officer,employee, or agentof the Associationagainstany liability
assertedagainsthim orherand incurredby him orher in any such capacityor arisingoutofhis
orherstatusas such;
(f) To causeallofficers,employees or agents,having fiscalresponsibilityto
be bonded, asitmay deem appropriate;
(g) To causetheCommon Maintenance Areas tobe maintained;
(h) To maintainacurrentmailing listof the Members and Mortgagees who
have requestednoticeof meetings and otherevents;
(i) To fileannual taxreturnsforthe Association;
(j) To adopt a budget annuallyforthe Associationto manage and operatethe
Subdivision.Within thirty(30)days afteradoptingtheannual budget or any modified budget,
theBoard shallsetadatefora meeting oftheMembers to considerratificationofthebudget and
sendnoticeofsuch meeting tothe Members in accordance withSection4.5.UnlesstheMembers
holding a majorityofthe votesintheAssociationvotetorejectthebudget,thebudget isratified,
whether ornot a quorum ispresentatthemeeting.Ifthe Board failsto adopt a budget orifthe
Members votetorejectthebudget,thelastadopted and ratifiedbudget forthe Associationshall
continuein effect;and
(k) To perform allotherdutiesof theAssociationand theBoard assetforthin
the Governing Documents.
12 -Bylaws of theNorton Ranch Community Association
ARTICLE VI
MEETINGS OF THE BOARD
6.1 InitialMeeting
The initialmeeting oftheBoard shalloccureitherimmediately afterorwithinfourteen
(14)days afterthe datetheinitialmeeting oftheMembers pursuanttoSection4.1.Noticeof the
initialmeeting shallbe senttoeachDirectorand the Members inaccordancewith the
requirementsofSection6.9.
6.2 Regular Meetings
Regular meetings oftheBoard may be heldatsuchtimeasshallbe determinedfrom time
to time by a majorityof theDirectors.Noticeof regularmeetings shallbe deliveredto each
Directorand theMembers inaccordancewiththerequirementsofSection6.9.
6.3 Special Meetings
Specialmeetings oftheBoard may be calledatany time by thepresidentor a majorityof
theDirectors.Noticeof specialmeetings shallbe deliveredtoeach Directorand the Members in
accordance with therequirementsofSection6.9.
6.4 Emergency Meetings
Emergency meetingsmay be heldwithoutnotice,ifthereasonfortheemergency is
statedintheminutes ofthemeeting.
6.5 Closed Session
At thediscretionof the Board, thefollowingmattersmay be consideredinclosedsession:
(a) Personnel matters;
(b) Consultwith legalcounselorconsidercommunications with legal
counsel;and
(c) Discuss likelyor pending litigation,mattersinvolvingpossibleviolations
of theGoverning Documents, and mattersinvolvingliabilityof a Member tothe Association.
The Board shallvote inan open meeting whether tomeet inclosedsession.The motion
shallstatespecificallythepurpose forthe closedsession.Reference tothemotion and stated
purpose fortheclosedsessionshallbe includedintheminutes ofthemeeting. The Board shall
restricttheconsiderationofmattersduringtheclosedportionof a meeting toonly thosepurposes
specificallyexempted and statedinthemotion. No motion,orotheractionadopted,passed or
agreedtoinclosedsession,may become effectiveunlesstheBoard, followingtheclosedsession,
reconvenes inopen meeting and votes inthe open meeting on such motion, or otheractionwhich
isreasonablyidentified.The requirementsofthisSectionshallnotrequirethedisclosureof
informationinviolationof applicablelaw orwhich isotherwiseexempt from disclosure.
13 -Bylaws oftheNorton Ranch Community Association
6.6 Adjournment
Any meeting of theBoard may be adjournedby a majorityoftheDirectorspresentatthe
meeting,even ifa quorum isnot present.When a meeting isadjourned forfewerthan thirty(30)
days,no noticeof the resumption or reconvening ofthe adjournedmeeting need be given other
than by announcement atthemeeting atwhich such adjournment takesplace.
6.7 Board Meetings Open toallMembers
Except ofclosedsessions,allmeetings ofthe Board shallbe open totheMembers,
provided thatno Member shallhave therighttoparticipateintheBoard's meeting unlesssuch
Member isalsoamember oftheBoard. The presidentshallhave therighttoexclude any
Member who disruptsthe proceedingsata meeting oftheBoard.
6.8 Placeof Meetings
Meetings of the Board shallbeheldwithinten (10)milesofthe Subdivision,atan exact
locationdeterminedby theBoard and designatedinthenoticerequiredby Sections6.2 and 6.3.
6.9 Noticeof Meetings
The secretaryshallgive writtennoticetoeachDirectorof any meeting oftheBoard at
leastthree(3)priortothe datesetforsuch meeting, statingthe purpose,time and locationofthe
meeting. Notice shallbe sentto theaddressofeach Directoraslistedon thebooks ofthe
Association,ortosuchotheraddressas aDirectormay designateby writtennoticetothe
secretarygiven atleastten (10)dayspriortothegivingofnoticeofthemeeting. Noticeof any
meeting may be waived by any Directoratany timebefore orafterthemeeting. No Director
who ispresentata meeting may objecttotheadequacy ortimelinessofthenoticegiven.
For otherthanclosedsessionmeetings,noticeofBoard meetings shallalsobe given the
Members by postingata place or placeswithinthe Subdivisionlikelytobe seen by allMembers
atleastthree(3)dayspriortotheBoard meeting,orby one ofthemeans describedinSection4.5
notlessthanten (10)days priortotheBoard meeting.
6.10 Voting by theBoard
Each Directorshallhave one (1)vote.The votesofmore than fiftypercent(50%) of
Directorspresentata meeting atwhich a quorum ispresentshallconstitutetheactoftheBoard.
6.11 Quorum
The presence inperson ofa majorityof the Directorsshallconstitutea quorum forvoting
ata Board meeting. Iflessthana quorum ispresentata meeting,a majorityofthe Directors
presentatthemeeting may adjournthemeeting. At any adjournedmeeting atwhich a quorum is
present,any businesswhich might have been transactedatthemeeting originallycalledmay be
transactedwithout furthernotice.
14 -Bylaws oftheNorton Ranch Community Association
6.12 Consent inLieu of Meeting
Any actionrequiredorwhich may be takenata meeting oftheBoard or acommittee
thereofmay be taken withouta meeting ifaconsentinwriting,settingforththe actionsotaken
ortobe taken,shallbe signedby allDirectorsorcommittee members asthe case may be.
6.13 ParticipationofDirectors by Telephonic Communication
Directorsorcommittees thereofmay participateina meeting oftheBoard oracommittee
by means by which allDirectorsorcommittee members participatingcanhear each otherduring
themeeting. Participationby suchmeans shallconstitutepresencein person ata meeting.
ARTICLE VII
OFFICERS OF ASSOCIATION
7.1 Enumeration ofOfficers
The principalofficersoftheAssociationshallbe thepresident,secretaryand treasurer,
eachofwhom shallbe electedby the Board inaccordancewithSection7.2.The Board may
appointotherofficersas initsjudgment may be desirable.Any two or more officesmay be held
by thesame person,exceptfortheofficesof presidentand secretary.All officersmust be
Members, ormembers of theirimmediate family,fiduciaries,beneficiariesor Mortgagees (andin
thecaseofLotsowned by corporations,trustsor partnerships,the officesmay be held by
directors,officers,shareholders,trustees,partnersor employees ofsuch organizations).
7.2 Election of Officers
The officersofthe Associationshallbe electedby the Board and shallholdofficeatthe
pleasureoftheBoard and untiltheirsuccessorsareelectedand qualified.Ifany officebecomes
vacant,the Board shallelectasuccessortofulfilltheunexpired term atany regularmeeting of
theBoard, or atany specialmeeting oftheBoard calledforsuch purpose.
7.3 Term
The officersoftheAssociationshallbe electedby the Board and shallhold officefora
periodofone (1)year,unlessan officerresignsorisremoved by the Board or isotherwise
disqualifiedforservice.
7.4 Resignation and Removal
Any officerof theAssociationmay be removed from office,withorwithout cause,upon
theaffirmativevote of a majorityoftheBoard and a successorelectedatany regularmeeting of
theBoard oratany specialmeeting of theBoard calledforsuch purpose. An officerof the
Associationmay resignatany time by givingnoticeto the secretary.Such resignationshalltake
effecton thedateof receiptofsuch noticeor atany latertime specifiedtherein;theacceptance of
such resignationshallnot be necessaryto make iteffective.
15 -Bylaws oftheNorton Ranch Community Association
7.5 Vacancies
A vacancy inany officemay be filledby electionatany regularmeeting ofthe
Associationorata specialmeeting oftheBoard calledforsuch purpose. The officerelectedto
filla vacancy shallservefortheremainderofthetermoftheofficerhe orshe replaces.
7.6 Duties
The dutiesoftheofficersoftheAssociationareasfollows:
President
The presidentshallbe the chiefexecutiveofficerof the Association.The presidentshall
presideatallmeetings oftheMembers and Board and shallhave allofthepowers and duties
which areusuallyincidenttotheofficeofthechiefexecutiveofficerofan Association,
including,butnotlimitedto,the power to appointcommittees from timeto timeasmay, inthe
president'sdiscretion,be appropriateto assistintheconductoftheaffairsoftheAssociation.
Secretary
The secretaryshallkeep minutes ofallproceedings oftheBoard and minutes ofall
Associationmeetings. The secretaryshallattendtothegivingand servingofallnoticestothe
Members and Directorsand othernoticesrequiredby law. Associationrecordsshallbe keptby
the secretary,except forthoseofthetreasurer.The secretaryshallperform allotherduties
incidenttotheofficeof secretaryofan associationand as may be requiredby theDirectorsorthe
president.In addition,the secretaryshallactasvicepresident,takingtheplace of thepresident
and performing such dutieswhenever the presidentisabsentorunableto act,unlessthe
Directorshave appointedavicepresident.
Treasurer
The treasurershallbe responsibleforAssociationfundsand securitiesand shallbe
responsibleforsupervisingthemanaging agent and causingthesame tokeep fulland accurate
financialrecordsandbooks ofaccount showing allreceiptsand disbursementsnecessaryforthe
preparationofallrequiredfinancialstatements.The treasurershallreview thereportsand
statementsprovidedby the managing agentwith respecttothedepositofallfundsand other
valuableeffectsinsuch depositoriesas may from timetotimebe designatedby the Board, and
the disbursement of Associationfundsinaccordance withtheapproved Associationbudget and
any specialauthorizationsfrom the Board forunbudgeted items.The treasurershallingeneral
perform allotherdutiesincidenttotheofficeof treasurerofan associationand suchotherduties
as may be assignedby theBoard.The treasurershallcauseallassessmentstobe depositedina
separatebank account in the name oftheAssociationand allexpenses oftheAssociationtobe
paidfrom thataccount.
16 -Bylaws of theNorton Ranch Community Association
7.7 Execution of Instruments
All agreements,contracts,deeds,leasesand otherinstrumentsof the Association,except
checks,shallbe executedby such person orpersons as may be designatedby generalor special
resolutionofthe Board and,intheabsence of any generalor specialresolutionapplicableto any
such instrument,thensuchinstrumentshallbe signedby thepresident.Allchecks forlessthan
Two Thousand Four Hundred Ninety-Nine Dollars($2,499.00)may be signedby themanaging
agent or any duly electedofficerof theAssociation.AllchecksofTwo Thousand FiveHundred
($2,500.00)ormore shallrequirethe signaturesofatleasttwo (2)authorizedsignatories.
7.8 Compensation
Other thanreimbursement ofreasonableout-of-pocketexpenses incurredon behalfofthe
Association,no officerof theAssociationshallreceiveany compensation from theAssociation
foractingasan officer,unlesssuch compensation isauthorizedby a majorityvoteof the
Members present,in person or by proxy,ata meeting oftheMembers 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 oftheMembers toratifythebudget,pursuanttoSection3.1oftheDeclaration.
8.2 Assessments
The Associationshalllevy and collectassessmentsand otherchargespursuanttothe
termsof Article3 ofthe Declaration.IfAdditionalPropertyisannexed toorremoved from the
Subdivision,thecommon expenses oftheAssociationshallbe reapportionedpursuanttothe
termsofSection3.13 or 3.14,respectively,oftheDeclaration.
8.3 Reserve Study
The Declarantand Associationshallprepareareservestudy pursuanttotheterms of
Section3.3of theDeclaration.
ARTICLE IX
BOOKS AND RECORDS
9.1 Books and Records
The Associationand managing agent(ifapplicable)shallkeep (a)financialrecords
sufficientlydetailedforproper accountingpurposes,includingan assessment rollforeach Lot
(b)detailedrecordsoftheactionsofthe Board and managing agent(ifapplicable)and minutes
ofBoard and Associationmeetings,(c)a listof Members entitledto voteatAssociationmeetings
and a listofallMortgagees whom have requestednoticeof meeting and otherevents,and (d)
17 -Bylaws oftheNorton Ranch Community Association
otherdocuments, informationand recordsinsufficientdetailtoenabletheAssociationtofully
declareto eachMember the truestatementofitsfinancialstatus.AllAssociationdocuments,
informationand recordsshallbe maintained withintheStateofMontana atalltimes.
9.2 Examination ofRecords
The Associationshallmake availableto Members, Mortgagees, prospectivepurchasers
and theirprospectiveMortgagees, and the agentsor attorneysof any of them, currentcopiesof
theDeclarationand theArticlesof Incorporation,Bylaws and rulesand regulationsofthe
Association.All financialand otherrecordsoftheAssociation,includingbutnotlimitedto
checks,bank recordsand invoices,arethepropertyoftheAssociation,butshallbemade
reasonablyavailableforexamination and copyingby any Member, or the Member's authorized
agents,and by any managing agent. "Available"shallmean availableforinspectionupon
request,duringnormal businesshoursorunderotherreasonablecircumstances.The Association
may requiretherequestingpartyto pay areasonablecharge tocoverthecostof making the
copies.
9.3 Financial Statements
Within ninety(90)days afterthe end ofeachfiscalyear,the Board shalldistributeto
each Member and,upon request,any Mortgagee a copy of theannual financialstatementsofthe
Association,consistingofa balance sheetand income and expense statementforthepreceding
fiscalyear. IfAnnual Assessments are$50,000 ormore, the financialstatementsofthe
Associationshallbe auditedby an independent certifiedpublicaccountant;provided,however,
thattheauditmay be waived ifMembers holding atleastsixty-sevenpercent(67%) of the votes
oftheAssociationvote,inperson or by proxy ata meeting oftheAssociationatwhich a quorum
ispresent,each yearto waive theaudit.
9.4 Tax Returns
The Board shallcausetobe filedthe necessarystateand federalincome taxreturnsfor
the Association.
9.5 Payment Vouchers
The method of approving payment vouchers (ifapplicable)forthemaintenance,upkeep
and repairoftheCommon Maintenance Areas and payment fortheexpense oftheAssociation
willbe as establishedfrom timetotime by the Board.
9.6 FiscalYear
The FiscalYear oftheAssociationshallbegin on the firstday of Januaryand end on the
31stday ofDecember of everyyear,exceptthatthefirstfiscalyear shallbegin on thedateof
incorporationof the Association.
18 -Bylaws oftheNorton Ranch Community Association
ARTICLE X
INSURANCE
The Associationshallmaintaintheinsurancecoverages requiredby Article8 ofthe
Declaration.
ARTICLE XI
DAMAGE OR DESTRUCTION BY CASUALTY
Any damage toor destructionoftheCommon Areas or any otherareasthe Associationis
requiredtoinsureagainstan eventof casualtyshallbehandled inaccordancewiththetermsof
Article9 oftheDeclaration.
ARTICLE XII
RULES AND REGULATIONS
The Board shallhave power to adopt and publishrulesand regulationsgoverning the
conduct of persons and theoperationand useoftheLots and the Common Areas asitmay deem
necessaryor appropriatetoassurethepeacefuland orderlyuseand enjoyment ofthe
Subdivision,and toestablishfinesfortheinfractionthereof.Such rulesand regulationsmay be
adoptedupon a majorityvote oftheDirectorspresentata meeting atwhich thereisa quorum
presentand asto which noticehasbeen given asprovided intheseBylaws. Such noticeshall
includea verbatim copy ofallproposed rulesand regulations.No ruleor regulationshallbe
adopted withouta copy thereoffirsthaving been deliveredormailed toeachMember in
accordance withtherequirementsofSection4.5.Upon adopting any such rulesand regulations,
the Board shallcause copiesthereoftobe deliveredto eachMember. Allsuchrulesand
regulationsbecome binding on allMembers and occupants ofallLots upon thedateof delivery.
Any ruleor regulationwhich conflictswiththeseBylaws ortheDeclarationshallbe nulland
void.
ARTICLE XIII
AMENDMENTS
13.1 General Amendments
Except as setforthbelow, any and allprovisionsoftheseBylaws may be amended or
repealedand new Bylaws may be adopted atany annual meeting oftheMembers, oratany
specialmeeting calledforthatpurpose,by atleasta majorityof the votesofthe Members, and
thewrittenconsent oftheDeclarantso long asthe Declarantisa Class B Member.
Amendments orchanges totheseBylaws may be proposed by eithera majorityofthe
Board or by the Members holding atleastthirtypercent(30%) of thevotesoftheAssociation.
The proposed amendment must be inwritingand shallbe includedinthenoticeof any meeting
atwhich actionistobe taken thereon.
An amendment or change to theseBylaws shallnotbe effectiveunlessitis(i)certifiedby
the presidentand secretaryofthe Associationashaving been adopted inaccordance with these
19 -Bylaws oftheNorton Ranch Community Association
Bylaws and acknowledged inthe manner provided foracknowledgement of deeds,and (ii)
recordedintheOfficialRecords oftheGallatinCounty, Montana.
13.2 Declarant Amendments
Notwithstanding any provisionshereoftothecontrary,theDeclarantmay unilaterally
amend theseBylaws (i)atany timebeforethe conveyance ofthefirstLottoa 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 otherprovisionsofthisArticleXIII,Declarantshallhave theright
tounilaterallyamend theseBylaws priortotheTurnover Meeting inorderto comply withthe
requirementsoftheFederalHousing Administration,theUnited StatesDepartment ofVeterans
Affairs,theFarmer'sHome AdministrationoftheUnited States,the FederalNationalMortgage
Association,the Government NationalMortgage Association,theFederalHome Mortgage Loan
Corporation,any department,bureau,board,commission or agency ofthe United Statesorthe
Stateof Montana or any corporationwholly owned, directlyor indirectly,by theUnitedStatesor
theStateofMontana which insures,guaranteesor provides financingfora planned community
or lotsinaplanned community.
ARTICLE XIV
MISCELLANEOUS
14.1 Notices
All noticestothe Associationor to the Board shallbe sentincareofthemanaging agent
or,ifthereisno managing agent,tothe principalofficeoftheAssociationortosuchother
addressastheBoard hereaftermay designatefrom timetotime.Any noticeto a Member, except
as otherwiseprovided intheseBylaws, shallbe sentby firstclassmailtotheaddressofMember
lastappearingon thebooks oftheAssociation(ortosuchotheraddressasthe Member has
designatedinwritingtothe Association.
14.2 Waiver
No restriction,condition,obligationor provisioncontainedintheseBylaws shallbe
deemed to have been abrogatedor waived by reason of any failuretoenforcethe same,
irrespectiveofthenumber of violationsor breaches thereofthatmay have occurredand the
number of timesthatthe pertinentrestriction,condition,obligationor provisionwas not
enforced.
20 -Bylaws oftheNorton Ranch Community Association
14.3 Severability
Invalidationor partialinvalidationof any provisionoftheseBylaws shallnotaffectany
oftheremaining provisionsof the Bylaws.
14.4 Personal Pronouns
All personalpronouns used intheseBylaws, whether usedinthemasculine,feminine or
neutergender,shallincludeallothergenders;the singularshallincludetheplural,and vice
versa.
14.5 Headings
The headings containedintheseBylaws are forreferencepurposesonly and shallnot in
any way affectthemeaning or interpretationoftheseBylaws.
14.6 Conflicts
These Bylaws areintendedto comply with applicablelaw and theDeclaration.Incaseof
any irreconcilableconflict,applicablelaw and theDeclarationshallcontrolovertheseBylaws
(unlesstheseBylaws expresslyprovide otherwise)and any amendments hereto,and any rulesor
regulationsadopted hereunder.
14.7 Dissolution
Upon dissolutionoftheAssociation,voluntarilyor otherwise,itshallautomaticallybe
succeeded by an unincorporatedassociationofthesame name and having the same purposes.
All assets,property,powers, and obligationsof the Associationexistingpriorto dissolutionshall
thereupon automaticallyvestinthesuccessorunincorporatedassociation.
[Continued on the followingpage]
21 -Bylaws of theNorton Ranch Community Association
ADOPTION OF BYLAWS
Itishereby certifiedthattheseBylaws have been adopted by the Board ofDirectorsof
theAssociation,and by Norton PropertiesLLC, an Oregon limitedliabilitycompany, andNorton
Ranch Homes, LLC, an Oregon limitedliabilitycompany, DeclarantofNorton Ranch. These
Bylaws shallbe recordedintheOfficialRecords ofGallatinCounty, Montana, togetherwiththe
Declaration.
Dated: ,2011.
ASSOCIATION:
NORTON RANCH COMMUNITY
ASSOCIATION, aMontana nonprofit
corporation
By:
Name: Kevin Spencer
Title:SoleDirector
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 oftheNorton Ranch Community Association
ACKNOWLEDGMENTS
STATE OF OREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged before me this_ day of ,
2011,by Kevin Spencer,theSoleDirectoroftheNORTON RANCH COMMUNITY
ASSOCIATION, a Montana nonprofitcorporation,on behalfofthe corporation.
PrintName:
Notary Publicinand forthe Stateof Oregon
My Commission expires:
STATEOFOREGON )
)ss.
County ofDeschutes )
The foregoinginstrumentwas acknowledged beforeme this_ day of
2011,by Kevin Spencer,theManager ofNORTON PROPERTIES, LLC, an Oregon limited
liabilitycompany, on behalfofthe company.
PrintName:
Notary Publicinand forthe Stateof Oregon
My Commission expires:
STATE OF OREGON )
)ss.
County of Deschutes )
The foregoinginstrumentwas acknowledged beforeme this_ day of ,
2011,by Kevin Spencer,the Member ofNORTON RANCH HOMES, LLC, an Oregon limited
liabilitycompany, on behalfofthe company.
PrintName:
Notary Publicinand forthe Stateof Oregon
My Commission expires:
23 -Bylaws oftheNorton Ranch Community Association
SCHEDULE 1
LIST OF INFORMATION AND DOCUMENTS
(a) The originalora photocopy of therecordedDeclarationand copiesof the Bylaws
and the Articlesof Incorporation,ifany,ofthe Subdivisionand any supplements and
amendments totheArticlesor Bylaws;
(b) A deed totheCommon Areas,unlessotherwiseprovided inthe Declaration;
(c) The minute books, includingallminutes,and otherbooks and recordsof the
Associationand theBoard;
(d) Allrulesand regulationsadoptedby the Declarant;
(e) Resignationsofofficersand members oftheBoard who were appointedby
Declarant;
(f) A financialstatementconsistingofa balance sheetand anincome and expense
statementforthepreceding 12-month periodortheperiodfollowingtherecordingofthe
declaration,whichever periodisshorter;
(g) Allfunds oftheAssociationand controlofthe funds,includingallbank records;
(h) All tangiblepersonalpropertythatispropertyofthe Association,and an
inventoryoftheproperty;
(i) Records ofallpropertytax payments forthe Common Areas tobe administered
by the Association;
(j) Copies of any income taxreturnsfiledby theDeclarantinthename ofthe
Association,and supportingrecordsforthereturns;
(k) Allbank signaturecards;
(1) The Reserve Account establishedinthename ofthe Association;
(m) The reservestudy,includingallupdates and othersourcesof informationthat
serveasabasisforcalculatingreserves;
(n) An operatingbudget and a budget forreplacement oftheCommon 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 landscapingtogetherwithcabletelevisiondrawings; (D) Any otherplans
and informationrelevanttofuturerepairor maintenance oftheCommon Areas;and (E)A listof
1 - Schedule 1
thegeneralcontractorand the electrical,heatingand plumbing subcontractorsresponsiblefor
constructionorinstallationofCommon Areas;
(p) Insurancepolicies;
(q) Copies of any occupancy permitsissuedforthe Subdivision;
(r) Any otherpermitsissuedby governmental bodies applicabletotheSubdivisionin
forceorissuedwithinone yearbeforethedateon which the Members assume administrative
responsibility;
(s) A listof any writtenwarrantieson theCommon Areas thatareineffectand the
names ofthecontractor,subcontractoror supplierwho made the installationforwhich the
warranty isin effect;
(t) A rosterof Members and theiraddressesand telephonenumbers, ifknown, as
shown on therecordsof the Declarant;
(u) Leasesofthe Common Areas and any otherleasesto which theAssociationisa
party;
(v) Employment orservicecontractsinwhich the Associationisone ofthe
contractingpartiesor servicecontractsinwhich theAssociationortheowners have an obligation
or responsibility,directlyor indirectly,topay some orallofthefeeor charge ofthe person
performing theservice;and
(w) Any othercontractstowhich the Associationisa party.
2 - Schedule 1