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HomeMy WebLinkAbout2025_11_14_v2_Slorer_Declaration of Covenants_CNODECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS 7085 S CHURCH AVE FIRST MINOR SUBDIVISION BOZEMAN, GALLATIN COUNTY, MONTANA This DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS for the 705 S. Church Ave. Minor Subdivision (hereinafter referred to as the “Covenants”) is made this ____ day of ______________ 2025 by Landern West LLC, a Delaware limited liability company with a mailing address of , (the “Declarant”). The Declarant owns the real property specifically described in Exhibit A attached hereto and incorporated herein by reference (the “Property”). The following Covenants shall be considered adopted when recorded with the Office of the Clerk and Recorder for Gallatin County, Montana. These Covenants, the Design Guidelines (defined in Section 1.11), and any subsequent amendments shall attach to and run with the Property and shall constitute an equitable servitude upon the Property and every part of it, including all rights, title, and interest, as may be held, conveyed, owned, claimed, devised, encumbered, used, occupied and improved. They shall constitute benefits and burdens to Declarant and to all persons or entities hereafter acquiring any interest in the Property. These Covenants may be amended or supplemented by the Declarant during the Control Period (defined in Section 1.6), except those covenants included in ARTICLE X, which may only be amended by the joint action of the Declarant and the governing body of the City of Bozeman (the “City”) In the event there is a conflict between a City zoning regulation and these Covenants, the zoning regulation shall comply. DEFINITIONS When used in these Covenants or any supplemental Covenants (unless the context shall prohibit), the following words shall have the meanings ascribed to them herein. “Assessment Lien” means the lien created and imposed by Section 8.2. “Assessments” include the following: Maintenance Assessments, as described in Section 8.8; Capital Improvement Assessments, as described in Section 8.9; and Special Assessments, as described in Section 8.9. “Association” mean the unincorporated homeowners’ association as described in Section 6.1. “Business Day” means any day other than a Saturday, Sunday, or a public holiday recognized by the State of Montana. “Common Expenses” mean the costs incurred by the Association in conducting its operations and activities, administering, maintaining, and operating the Property and in owning or leasing any portions. The Association shall also be responsible for the following: The costs of any maintenance, management, operation, repair, and replacement of the Common Facilities and all other areas on the Property which are managed or maintained by the Association pursuant to these Covenants, other than those areas being managed or maintained as a Reimbursement Assessment pursuant to Section 8.1.4. The costs of management and administration of the Association, including, but not limited to, compensation paid by the Association to managers, accountants, attorneys, and employees. The costs of utilities and all services which are maintained by or provided to the Association or the Common Facilities, and other services which generally benefit and enhance the value and desirability of the Property. Any taxes paid by the Association. Amounts paid by the Association for the discharge of any lien or encumbrance levied against the Common Facilities or portions thereof. Other expenses incurred by the Association for any reason whatsoever in connection with the Common Facilities, or the costs of any other item or items designated by, or to be provided or performed by the Association pursuant to these Covenants, in furtherance of the purposes of the Association, or in the discharge of any duties or powers of the Association. “Common Facilities” means all facilities conveyed to the Association free and clear of encumbrances for the common benefit of the Owners and Occupants, including but not limited to the Pump System (defined in Section 1.21), stormwater detention facilities, the bridge over Bozeman Creek, and flood mitigation facilities, as depicted in Exhibit B attached hereto. “Control Period” shall mean the period prior to the Transition Date during which the Declarant has the sole voting authority for the Association. “County” shall mean Gallatin County in the State of Montana and its appropriate departments, officials, and Associations. “Covenants” shall mean these Covenants, together with any subsequent amendments to the Covenants. “Declarant” shall collectively mean Landern West LLC or such other successor person, entity, or corporation that is designated as the successor Declarant. “Design Guidelines” shall mean the separately recorded document known as the Design Guidelines for the 705 S. Church Ave. First Minor Subdivision, attached hereto as Exhibit C, and any amendments thereto. An Owner must obtain a copy of the most current version of the Design Guidelines from the Association or the Gallatin County Clerk and Recorder’s Office. “Fiscal Year” shall mean a calendar year. “Improvement(s)” shall mean improvements on or serving a single Lot or both Lots, including but not limited to homes and buildings, sheds, utility buildings, bridges, driveways, fences, walls, retaining walls, perimeter walls, entry gates, water feature landscaping, playground equipment, sprinklers, excavations, rocks, hedges, plantings, planted trees, and shrubs, and all other improvements of any type or kind. “Lot” shall mean and refer to only the property so divided into a lot, tract, or parcel or hereafter annexed into the Subdivision pursuant to these Covenants and designated by the Declarant. “Manager” shall mean the manager, the management corporation, or any other person or group of persons retained or appointed by the Declarant or the Association for the purpose of conducting the day-to-day operations of the Association. “Member” shall mean every Person who is a member of the Association. Each Lot shall have one membership in the Association. “Occupant” shall mean any Person, other than an Owner, in rightful possession of any portion of the Property, whether as a guest, tenant, or otherwise. “Owner,” also referred to as “Lot Owner,” property owner, landowner, member, and homeowner shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Property, including contract for deed purchases by an Owner upon recording a notice of purchaser’s interest or an abstract of contract for deed, but excluding those having such interest merely as a security for the performance of an obligation. “Person” means an individual, corporation, partnership, trustee, or other entity capable of holding title to real property and their respective heirs, personal representatives, successors, and assigns. “Property” shall mean all of the land described in Exhibit A, with such other land as may be annexed into the Subdivision pursuant to the provisions of these Covenants. “Pump System” shall mean the private sewage treatment and lift station system depicted in Exhibit C attached hereto. “Subdivision” shall mean the 705 S. Church Ave. First Minor Subdivision. “Supplemental Covenants” means an amendment or supplement to these Covenants filed pursuant to Section 2.1, which subjects additional property to these Covenants and/or imposes, expressly or by reference, additional restrictions and obligations on the land described therein. “Taking” means condemnation by eminent domain or sale under threat of condemnation of all or any portion of the Common Area. “Transition Date” means the date upon which the Declarant has sold one (1) of the two (2) Lots, upon which the Members of the Association shall have voting authority for the Association. “Voting Member” means each Owner of a Lot and is responsible for casting votes attributable to Lots on all matters requiring a vote of the membership (except as otherwise specifically provided in these Covenants and in the Bylaws) after the Transition Date. To be qualified as a Voting Member or an alternate Voting Member, a Person must be an Owner in good standing. “Good standing” means the Owner has paid all assessments and individual changes and is not currently in default or in violation of these Covenants. Each Owner is entitled to one (1) vote per Lot owned. LAND SUBJECT TO THESE COVENANTS General Purpose. The Declarant intends to develop the Property by platting a Subdivision with two (2) Lots. All of the real property within the Property is and shall be held, conveyed, hypothecated, encumbered, leased, occupied, built upon, or otherwise used, improved, or transferred, in whole or in part, subject to these Covenants, and any recorded Supplemental Covenants, as amended or modified from time to time. These Covenants and any Supplemental Covenants are declared and agreed to be in furtherance of a general plan for the Subdivision and Improvements and are established for the purpose of enhancing and perfecting the value, desirability, and attractiveness of the Subdivision. These Covenants shall run with all Lots for all purposes and shall be binding upon and inure to the benefit of the Property, the Owners, the Occupants, and their successors in interest. NOTHING IN THESE COVENANTS SHALL BE CONSTRUED TO PREVENT DECLARANT FROM MODIFYING ITS DEVELOPMENT PLAN OR ANY PORTIONS THEREOF. THE PROPERTY, RIGHTS OF ENJOYMENT Right of Enjoyment. Every Owner shall have a nonexclusive license to use and enjoy the Common Facilities, subject to all of the easements, covenants, conditions, restrictions, and other provisions contained in these Covenants, including, but not limited to, the following provisions: the right of the Association to borrow or invest money for the purpose of improving, replacing, restoring, or expanding the Common Facilities or adding new Common Facilities; and the right of the Association to change the size, shape or location of Common Facilities; provided, however, that the Association may not change any portion of the Common Facilities required by the City for subdivision and/or building approval. Waiver of Use. No Owner may exempt themselves, and no Owner shall be exempt, from personal liability for Assessments and Reimbursement Assessments, and no Owner may release any owned Lot from the liens, charges, and other provisions of these Covenants, by voluntary waiver of or suspension or restriction of the Owner’s right to use and enjoy the Common Facilities or by the abandonment of the Owner’s Lot. PUMP STATION Pump Station. Each Lot shall be supplied by a private sewage treatment system, as specifically depicted in Exhibit B attached hereto (the “Pump System”). The Association shall be responsible for the repair, maintenance, and replacement of the Pump System. The Association shall hire a competent contractor to control and maintain the Pump System, including but not limited to monitoring and inspections, emergency response, and maintenance. Each Owner shall be required to immediately report to the Association any damage or destruction to the Pump System, including malfunction, misuse, damage, or destruction done to the Pump System on their individual Lots. Pump Station Easement. The Association shall have an easement over, under, across, and through each Lot for the purpose of performing repairs, maintenance, or replacement of the Pump System as set out in Section 4.1. City Sewage Connection. The City shall not be responsible for ownership nor maintenance of the Pump System. In the event that the existing sewer main line in South Church Avenue (the “City Main”) is upsized and replaced, immediately adjacent to the Property, the Association shall cause the Pump System to be decommissioned within six (6) months, or as agreed upon in writing by the City of Bozeman Director of Utilities. The Association shall be responsible for the cost of connecting the Property to the City Main, which cost shall be assessed against the Owners as a Special Assessment. DESIGN AND LANDSCAPE REVIEW Timeline. No exterior construction, reconstruction, alteration, remodeling, or improvements of any portion of the exterior of the Improvements or installation of landscaping, fencing, walls, irrigation, or other enhancements shall be placed, constructed, erected, repaired, restored, reconstructed, altered, remodeled, added to, or maintained on any Lot until drawings, plans, and specifications, prepared by a design professional or licensed architect familiar with all construction practices and the Design Guidelines and any other information that the Association may reasonably require—including, but not limited to, colors, building materials, plans, and elevations—have been submitted to and approved in writing by a majority of the Association. All construction, reconstruction, alteration, remodeling, or improvements to any residence, building, outbuilding, structure, garage, or enhancements, landscaping, fencing, walls, irrigation, or others placed, constructed, erected, repaired, restored, reconstructed, altered, remodeled, added to, or maintained on any Lot must align with the Design Guidelines and be approved in writing by the Association. However, the development or construction on a Lot by the Declarant shall not be subject to the Association’s design review. Compliance. The Association shall require that all construction comply with the provisions of the following standard codes or their amendments: International Conference of Building Officials National Plumbing Code National Electrical Code National Fire Protective Association City of Bozeman Subdivision Regulations City of Bozeman Building Code Enforcement. The Association shall be responsible for interpreting and enforcing the Design Guidelines established herein and shall adopt such rules and procedures as it deems necessary to carry out its functions, which rules and procedures may not be inconsistent with the provisions of these Covenants and the Design Guidelines. It shall also have the authority to revoke or suspend approvals and/or order the suspension or cessation of any exterior construction or work that violates the provisions of these Covenants, the Design Guidelines, and/or any approvals issued in writing by the Association. Authority to Approve. The Association shall have the authority to reject the materials, designs, and colors submitted with the plans and specifications, or it may wholly reject them if they are incompatible or inconsistent with the provisions of the Design Guidelines or if they are inappropriate, incomplete, or defective. Substantial Compliance. All improvements, construction, reconstruction, alterations, remodeling, or any activities requiring written approval from the Association must be completed in substantial compliance with the plans and specifications approved in writing by the Association, along with any written modifications to that approval from the Association. Fees. The Association may require an owner to pay reasonable fees for an architectural review and a landscape review, where necessary, along with the filing of plans and specifications to defray the Association’s expenses and the expenses of inspections and enforcement of the provisions of this ArticleARTICLE V. Liability. The Association and the individual Members thereof may not be held liable by any Owner or other Person for any damages that may result from any Association action taken pursuant to these Covenants, including, but not limited by, damages that may result from correction, amendment, change or rejection of plans and/or specifications, the issuance, suspension or enforcement of any Association building approval or any delays associated with such action on the part of the Association. Variances. The Association may, upon application, grant a variance from the Design Guidelines, provided that the intent of these Covenants and any applicable regulations of the City are complied with. All variance requests pertaining to the Association approvals must be made in writing to the Association. Any variance granted by the Association shall be considered unique and will not set any precedent for future Association decisions regarding variances. The Association, in reviewing and considering an application for a variance, shall consider the nature of the hardship claimed, the impact on the adjacent Owner(s), the impact on the Property, and any proposed mitigations for the impacts resulting from the variance being considered. The Association shall have the duty and power to make the final decision on the granting of the variance without incurring any liability or assessing damages due to any decision of the Association or its members. ASSOCIATION Purpose of Association. The Association shall be an unincorporated homeowners’ association to serve as the governing body for all of the Members for the protection, improvement, alteration, maintenance, repair, replacement, administration, and operation of the Common Facilities, the assessment of expenses, payment of losses, disposition of casualty insurance proceeds, and other matters as provided in these Covenants. The Association shall not be deemed to be conducting a business of any kind, and all funds received by the Association shall be held and applied by it for the benefit of Members in accordance with the provisions of these Covenants. Records. Upon reasonable written request, the Association shall make the books, records, and financial statements of the Association available for inspection by each Owner together with current copies, as amended from time to time, of these Covenants. The Declarant shall be under no obligation to make its own books and records available for inspection by any Owner or other Persons. Manager or Managing Agent. All powers, duties, and rights of the Association, as provided by law and herein, may be delegated to a Manager or managing agent; provided, however, that no such delegation shall relieve the Association of its obligation to perform any such delegated duty. Contracts with Others for Performance of Association’s Duties. Subject to the restrictions and limitations contained herein, the Association may enter into contracts and transactions with others, including Declarant and any affiliated Persons, for the performance of the Association’s duties and other purposes consistent with the Covenants. Purposes for Which Association’s Funds May Be Used. The Association, except as otherwise permitted in these Covenants, shall apply all funds collected and received by it (including Assessments, fees, loan proceeds, surplus funds, interest earned, and all funds received by it from any other source) for the common good and benefit of the Common Facilities and the Owners by devoting said funds, among other things, to the Common Expenses. Association’s Rights in Spending Funds from Year to Year. The Association shall not be obligated to spend in any year all the sums received by it in such year, regardless of source, unless specifically provided to the contrary in these Covenants, and may carry forward as additional working capital or reserves any balances remaining. The Association shall not be obligated to reduce the amount of the Maintenance Assessments in the succeeding year if a surplus exists from a prior year, and the Association may carry forward from year to year such surplus as the Association, in its discretion, may determine to be desirable for the greater financial security of the Association and the accomplishment of its purposes. MEMBERSHIPS AND VOTING Memberships. Every Owner shall be a Member of the Association, and such membership shall be appurtenant to, and inseparable from, ownership of a Lot. There shall be only one (1) membership per Lot. If a Lot is owned by more than one Person, all co-Owners shall share the privileges of such membership, subject to the restrictions on voting set forth in Section 7.5, and all such co-Owners shall be jointly and severally obligated to perform the responsibilities of Owners. The membership rights of an Owner who is not a natural person may be exercised by any member, manager, officer, director, partner, or trustee or by the individual designated from time to time by the Owner in a written instrument provided to the Association. Transfer of Membership. The rights and obligations of a Member shall not be assigned, transferred, pledged, conveyed, or alienated in any way except upon transfer of ownership to an Owner’s Lot, and then only to the transferee of ownership to the Lot. A transfer of ownership to a Lot may be affected by deed, intestate succession, testamentary disposition, foreclosure of a Mortgage, or such other legal process as now in effect or as may hereafter be established under or pursuant to the laws of the State of Montana. Any attempt to make a prohibited transfer shall be void. Any transfer of ownership to a Lot shall operate to transfer the membership appurtenant to the Lot to the new Owner(s) thereof. Voting. Each Member shall be entitled to one (1) vote per Lot owned. The Members’ voting authority does not begin until the occurrence of the Transition Date. Exercise of Voting Rights. An Owner of a Lot, upon becoming an Owner, shall be a Member of the Association and remain a Member for the period of the ownership. Multiple Owners. In any situation where there is more than one Owner a Lot eligible to exercise the right to vote, the vote for such Lot shall be exercised as the co-Owners determine among themselves and advise the Association in writing prior to the vote being taken. Absent such advice, the Lot’s vote shall be suspended if more than one person seeks to exercise it. Action by Voting. The unanimous vote of the Owners represented at a meeting, in person, or by proxy shall be the act of the Owners, unless the vote of a greater number is required by law or the Covenants. Action by Written Consent. Any action that may be approved by a vote of the Owners at an annual or special meeting may be approved without a meeting if the action is approved in writing by unanimous vote of the Owners entitled to vote on such action. The action must be evidenced by one or more written consents that describe the action taken, must be signed by the Owners, and must be delivered to the Association for inclusion in the minutes or filing with the Association’s records. A consent signed under this Section 7.7 has the effect of a meeting vote and may be described as a vote. Written notice of Owner approval pursuant to this Section 7.7 must be given to all Owners who have not signed the written consent. If written notice is required, Owner approval pursuant to this Section 7.7 is effective ten (10) days after written notice is given. Proxies. Each Owner entitled to vote at a meeting may authorize another person or persons to act for such Owner by proxy, but no such proxy shall be voted or acted upon after eleven (11) months from its date, unless the proxy provides for a longer period not to exceed three (3) years. A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. An Owner may revoke any proxy that is not irrevocable by attending the meeting and voting in person or by delivering to the notice of the revocation of the proxy or a new proxy bearing a later date to the Members. Unless otherwise specifically stated in the proxy, a proxy shall be presumed to cover all votes which the Owner giving such proxy is entitled to cast and, in the event of any conflict between two or more proxies purporting to cover the same voting rights, the later dated proxy shall prevail, or if dated as of the same date, both shall be deemed invalid. Every proxy shall be revocable and shall automatically cease upon conveyance of any lot for which it was given, upon receipt by the Secretary of written notice of revocation of the proxy or upon the death or judicially declared incompetence of an Owner who is a natural person, eleven (11) months from the date the proxy is granted if a different period is not expressly provided in the appointment form, or such shorter period as is specified in the proxy or the Owner appointing the proxy being present at any meeting and voting Deadlock and Dispute Resolution. In the event of any deadlock, dispute, controversy, or claim arising out of or relating to these Covenants, the parties thereto agree to first attempt to resolve the matter through good-faith negotiation. If such good faith efforts fail to resolve the dispute within thirty (30) days, then the parties shall move to mediation. The mediation shall be conducted by a mutually agreed-upon mediator within thirty (30) days of a written request for mediation. If the dispute is not resolved through mediation within sixty (60) days of the initial mediation session, or if the parties cannot agree on a mediator, the dispute shall be submitted to binding arbitration. The arbitration shall be conducted in accordance with the rules of the American Arbitration Association, and the decision of the arbitrator shall be final and binding on the parties. The arbitration shall take place in Bozeman, Montana, and each party shall bear its own costs and expenses, including attorneys’ fees, except as otherwise provided by the arbitrator. ASSESSMENTS Creation of Assessments. There are hereby created Assessments for Association expenses. Assessment will be assessed against each Lot equally. Each Owner, by accepting a deed for a Lot, is deemed to covenant and agree to pay these Assessments. The Association shall also establish and maintain a fund equal to the amount of the Association’s insurance(s) deductibles. There shall be four (4) types of Assessments: Maintenance Assessments, as described in Section 8.8; Capital Improvement Assessments, as described in Section 8.9; Special Assessments, as described in Section 8.9; and Reimbursement Assessments, as described in Section Error! Reference source not found.. Assessments as a Lien on Lot. All Assessments, together with interest (computed from thirty (30) days after the due date of such assessment at a rate of fifteen percent (15%) per annum, subject to the limitations of Montana law); costs; and reasonable attorneys’ fees, shall be charged and a continuing lien upon each Lot against which the Assessment is made until paid. Each Assessment, together with interest, costs, and reasonable attorney’s fees, also shall be the personal obligation of the Owner from and after the time the Assessment arises. Upon a transfer of title to a Lot, the grantee shall be jointly and severally liable for any Assessments and other charges due at the time of conveyance. However, no first mortgagee who obtains title to a Lot by exercising the remedies provided in its mortgage shall be liable for unpaid assessments that accrued prior to the date of its acquisition of title. Certificate of Assessment Status. The Association shall, upon request, furnish to any Owner liable for any type of Assessment a certificate in writing signed setting forth whether such Assessment has been paid. Such a certificate shall be conclusive evidence of payment. The Association may require the advance payment of a reasonable processing fee for the issuance of such a certificate. Payment of Assessments. Assessments shall be paid in such manner and on such dates as the Association may establish. The Association may require an advance payment of an Assessment at the closing of the transfer of title to a Lot and impose special requirements for Owners with a history of delinquent payments if the Association so elects. Assessments may be paid in two (2) or more installments. Unless the Association otherwise provides, the Maintenance Assessment shall be due and payable in advance on the first day of each Fiscal Year, unless directed otherwise by the Association. If any Owner is delinquent in paying any Assessment or other charge levied on his or her Lot, the Association may require any unpaid installment of any and all outstanding Assessments to be paid in full immediately. No Waiver of Liability. No Owner may exempt himself or herself from liability for Assessments by non-use or abandonment of his or her Lot, nor any other means. The obligation to pay assessments is a separate and independent covenant on the part of each Owner. No diminution or abatement of Assessments nor set-off shall be claimed or allowed for any alleged failure of the Association to take some action or perform some function required of it, or for inconvenience or discomfort arising from the making of repairs or improvements, or from any other action it takes. Other Contracts. The Association is specifically authorized to enter into other contracts or contracts for “in kind” contribution of services, materials, or a combination of services and materials with the Declarant or other entities for payment of Common Expenses. Computation of Maintenance Assessment. Prior to the end of the year, the Association shall prepare a budget covering the estimated Common Expenses during the coming year, including any capital contribution to establish a reserve fund. Maintenance Assessments. Maintenance Assessments shall be levied equally against all Lots and shall be set at a level that is reasonably expected to produce total income for the Association equal to the total budgeted Common Expenses. In determining the total funds to be generated through the levy of Maintenance Assessments, the Association, at its discretion, may consider other sources of funds available to the Association, including any surplus from prior years and any Assessment income expected to be generated from any additional Lots reasonably anticipated to become subject to Assessments during the Fiscal Year. Reserve Budget and Capital Improvement Assessment. The Association shall annually prepare a reserve budget that takes into account the number and nature of replaceable assets within the Common Facilities, the expected life of each asset, and the expected repair or replacement cost. The Association shall set the required capital in an amount sufficient to permit meeting the projected needs of the Association, as shown on the budget, with respect to both amount and timing by annual Maintenance Assessments over the budget period. Special Assessments by Association. In addition to other authorized Assessments, the Association may levy Special Assessments from time to time to cover unbudgeted expenses or expenses in excess of those budgeted. Special Assessments shall be payable in such manner and at such times as determined by the Association and may be payable in installments extending beyond the Fiscal Year in which the Special Assessment is approved. Lien for Assessments. The Association shall have a lien against each Lot to secure payment of delinquent assessments, as well as interest, subject to the limitations of Montana law, late charges, and costs of collection (including attorneys’ fees). Such lien shall be superior to all other liens except (a) the liens of all taxes, bonds, assessments, and other levies that by law would be superior; and (b) the lien or charge of any first mortgage of record at the time such lien attaches (meaning any recorded mortgage with first priority over other mortgages) made in good faith and for value. Such a lien, when delinquent, may be enforced by foreclosure. The Association may bid for the Lot at foreclosure and acquire, hold, lease, mortgage, and convey the Lot. While a Lot is owned by the Association following foreclosure, no right to vote shall be exercised on its behalf; and no assessment shall be levied on it. No Waiver. Nothing herein shall be construed as requiring the Association to take any action hereunder in any particular instance, and the failure of the Association to take an action at any time shall not constitute a waiver of the right to take the same or similar action at a later time or in a different instance. Legal Action. The Association may sue the Owner(s) for unpaid Assessments and other charges authorized hereunder without foreclosing or waiving the lien securing the same. The sale or transfer of any Lot shall not affect the Assessment Lien nor relieve such Lot from the lien for any prior or subsequent assessments except pursuant to foreclosure of a first mortgage. A mortgagee or other purchaser of a Lot who is unrelated to the Owner of the Lot being foreclosed and who obtains title pursuant to foreclosure of the mortgage shall be jointly liable for the unpaid Assessments on such Lot due prior to such acquisition of title. Commencement of Assessments. The obligation to pay Assessments shall commence as to each Lot on the first day of the month after all the following have occurred: the Lot has been sold by the Declarant or its successor and assigns; or the Lot has otherwise been made subject to these Covenants; Failure to Assess. Failure of the Association to fix Assessment amounts or to deliver or mail each Owner an assessment notice shall not be deemed a waiver, modification, or a release of any Owner from the obligation to pay Assessments. In such an event, each Owner shall continue to pay Maintenance Assessments or whatever other Assessments as may be due on the same basis as during the last year for which an Assessment was made, if any, until a new Assessment is levied, at which time the Association may retroactively assess any shortfalls in collections. Other Charges and Costs Assessable. The Association may levy and assess charges, costs, and fees for matters such as, but not limited to, the following, in such reasonable amount(s) as the Association may determine in its discretion at any time and from time to time, including reimbursement of charges that are made to the Association by its Manager or any other Person for copying of Association or other documents; return check fees; facsimiles; long-distance telephone calls; notices and demand letters; transfer charges including but not limited to charges related to transfer of Lot ownership or to the leasing of a Lot and the dwelling located thereon; and other charges incurred by the Association for or on behalf of any Owner(s). All such charges, costs, and fees shall be in addition to the Assessments levied by the Association but shall be subject to all of the Association’s rights with respect to the collection and enforcement of Assessments. Notice of Annual Assessment. At least thirty (30) days before the expiration of each Fiscal Year, the Association will prepare and distribute to each Owner a proposed budget for the Association assessment during the next ensuing year. MAINTENANCE Maintenance Obligations. The Association or its duly delegated representative shall maintain and otherwise manage all Common Facilities, including, but not limited to, the Pump Station and any area the Association assumes in writing the responsibility for such maintenance, or such responsibility is set forth in a recorded instrument as hereinafter provided, including but not limited to landscaping and snow removal. Repair and Maintenance. The Association shall use a reasonable standard of care in providing for the repair, management, and maintenance so as to keep the Property in proper working condition and repair. In this connection, the Association may, subject to any applicable provisions relating to Capital Improvement Assessments: construct, reconstruct, repair, replace, or refinish any improvement or portion thereof upon Common Facilities; and do all such other and further acts which the Association deems necessary or appropriate to preserve and protect the Common Facilities, in accordance with the general purposes specified in these Covenants. Assessment of Certain Costs of Maintenance and Repair of Common Facilities. In the event that the need for maintenance, repair, or replacement of Common Facilities or other portion of the Property for which the Association is responsible for maintaining is caused through the willful or negligent act of any Owner, Occupant, or the family, guests, or invitees of either, then the cost of such maintenance or repairs shall be assessed against the Owner and such Owner’s Lot secured by Assessment Lien. Any charges or fees to be paid by the Owner of a Lot in connection with a contract entered into by the Association with Owner for the performance of an Owner’s maintenance responsibilities shall also be assessed against such Owner and shall be secured by an Assessment Lien. Right of Entry. Representatives and agents of the Association shall have the right to enter upon all Lots for maintenance, remedial action, and to otherwise fulfill its obligations under these Covenants, and neither the Association nor any representative or agent thereto shall have any liability to any person when acting in good faith in effecting such entry. CITY OF BOZEMAN REQUIRED COVENANTS Weed Control. The control of noxious weeds by the Association on those areas for which the Association is responsible and the control of noxious weeds by individual Owners on their respective Lots shall be as set forth and specified under the Montana Noxious Weed Control Act (§7-22-2101 through §7-22-2153 MCA) and the rules and regulations of the Gallatin County Weed Control District. The control of noxious weeds is the responsibility of the Owner whether the Lot is improved or unimproved and shall be as set forth and specified under the Montana Noxious Weed Control Act (§7-22-2101 through §7-22-2153 MCA as amended) and the rules and regulations, and management plans of the Gallatin County Weed Control District. Owners shall be responsible for the control of state and county-declared noxious weeds on his or her Lot and the Subdivision rights-of-way and/or easement(s) adjoining their Lot. In the event an Owner does not control the noxious weeds after ten (10) days’ notice from the Association, the Association may cause the noxious weeds to be controlled. The cost and expense associated with such weed management shall be assessed to the Lot as a Reimbursement Assessment, and such Assessment may become a lien if not paid within thirty (30) days of the mailing of such Assessment. Nothing herein shall require or obligate the Gallatin County Weed District to undertake any management or enforcement on behalf of the Association or Owners that is not otherwise required by law, or the rules, regulations, and management plans of the Gallatin County Weed Control District. Agricultural Uses. Owners are informed that adjacent uses may be agricultural. Owners accept and are aware that standard agricultural and farming practices can result in dust, animal odors and noise, smoke, flies, and machinery noise. Standard agricultural practices feature the use of heavy equipment, chemical sprays and the use of machinery early in the morning and sometimes late into the evening. Amendments. Any covenant that is included herein these Covenants as a condition of subdivision approval and required by the City may not be amended or revoked without the mutual consent of the Owners, in accordance with the amendment procedures in these Covenants and the City Commission. RESTRICTIONS ON ALL LOTS The following restrictions on use apply to all Lots within the Subdivision: Lighting. External lighting shall not interfere with neighboring properties so as to penetrate draped windows at night. No high-intensity lighting shall be permitted to extend beyond each Lot’s boundaries. All exterior lighting shall be attached to structures and be of downlight orientation. Residential Use. No Lot or structure may be used for anything but residential use and home occupations or professions, which may be conducted upon the Lot or within the residence by the Owner or Occupant of the residence, provided that (a) it first meets zoning requirements, (b) there are no employees on the premises and (c) there is no advertising of any product, work for sale or service provided to the public upon such Lot or in the residence. No advertising or directory signs relating to the home occupation shall be allowed. Short-term rentals are an allowed use, as long as allowed pursuant to applicable City and County law, regulation, and ordinance. Garbage. No stored material, garbage, or debris shall be stored upon any Lot except in areas that are not visible from a street. Zoning. All zoning, land use regulations, and all other laws, rules, and regulations of any government or agency under whose jurisdiction the land lies are considered to be part of these covenants and are enforceable by the Declarant and the Association; and all of the Owners shall be bound by such laws, rules, and regulations. Landscaping. All landscaping shall be maintained according to proper horticultural practices. Grasses shall be watered and mowed on a regular basis so as to maintain their appearance in a sightly condition. Trees and shrubs shall be trimmed. No trees or shrubs will be allowed to encroach on adjacent properties except as agreed by the adjacent properties. All encroaching trees and shrubs shall be trimmed back to the property line upon the request of adjacent property owners. Storage. No Lot shall be used for the storage of any materials outside of a residential structure or garage, including lawn mowing equipment, vehicles, travel trailers, or the like. Barbecue equipment may be stored outside the residence, provided it is not visible from the street. Maintenance and Repair. Each Lot and Improvements shall be maintained in a good and workmanlike manner, free of unsightly conditions caused by lack of maintenance or weather damage. In the event that any Improvement is damaged or destroyed, then, such building or structure shall be promptly repaired or rebuilt or shall be removed within six (6) months after the incident and the portion of the Property upon which such Improvements were located shall be cleared and restored to a presentable and safe condition. Signs. No signs will be permitted on any Lot except for: traffic control signs placed by the City; temporary signs warning of some immediate danger; signs indicating the Lot or improvements therein are for sale; and temporary signage shall be allowed to identify social events at lots and parks for a period of seventy-two (72) hours. Party Walls. For purposes of these Covenants, party walls and party fences shall mean those walls and fences which are generally characterized by one of the following: any wall or fence which lies over the line dividing one piece of real property from another piece of real property owned by a different Person, with some portion of the wall or fence falling on each side of the dividing line; any wall or fence which lies immediately adjacent to and abutting (but not over) such a dividing line so that the edge of the wall or fence closest to the dividing line falls at or forms the dividing line; or any wall or fence which forms part of one continuous structure running across more than one Lot without a physical break or separation occurring at property lines. Except as hereinafter provided, the rights and duties of Owners with respect to party walls and party fences between Lots shall be as follows: The Owners of contiguous Lots who have a party wall or party fence shall both equally have the right to use such wall or fence, provided that such use by one Owner does not interfere with the use and enjoyment of the wall or fence by the other Owner. In the event that any party wall or party fence is damaged or destroyed through the act of an Owner or any Occupants, agents, guests or invitees of the Owner, or members of the Owner’s family (whether or not such act is negligent or otherwise culpable), it shall be the obligation of such Owner to rebuild and repair the party wall or party fence without cost to the Owner of the adjoining Lot. Any dispute over an Owner’s liability for such damage shall be resolved as provided herein, but any liability imposed on an Owner hereunder shall not prevent the Owner from seeking indemnity therefore from the Persons causing such damage. In the event any party wall or party fence is destroyed or damaged (including deterioration from ordinary wear and tear and lapse of time), other than by the act of an adjoining Owner, or any Occupants, agents, guests or invitees of the Owner or members of the Owner’s family, it shall be the obligation of all Owners whose Lots adjoin the party wall or party fence to rebuild and repair it at the joint expense, with the expense being allocated among the Owners in accordance with the frontage of their Lots on the party wall or party fence. Notwithstanding anything to the contrary herein, there shall be no impairment of the structural integrity of any party wall or party fence without the prior consent of all Owners of any interest therein, whether by way of easement, fee or otherwise. Any dispute between Owners with respect to the construction, repair or building of a party wall or party fence, or with respect to the sharing of the cost thereto shall be submitted to binding mediation. Anything in the foregoing to the contrary notwithstanding: Retaining walls and side yard walls and fences shall not be removed. Any retaining wall or property line wall constructed on side lot lines adjacent to another Lot must have the prior written approval of the adjacent Lot Owner and be submitted to the Association for approval with initial submittal for approval of the plans. Animals. No animals, including, but not limited to, horses or other domestic farm animals, fowl, or poisonous reptiles of any kind, may be kept, bred, or maintained in any Lot, except a reasonable number of commonly accepted households determined in the Association’s discretion. No animals shall be kept, bred, or raised within the Property for commercial purposes. In no event shall any domestic pet, including cats, be allowed to run free away from its Owner’s Lot without a leash or conduct itself so as to create an unreasonable annoyance. All City animal and animal control ordinances shall be complied with. If a particular animal or animals shall, at the discretion of the Association, become a nuisance, the Association shall have the authority to require that the same be kept tethered or confined on the owner’s property, and the Association may further require that when the said animal or animals are taken from the said property such animals must be kept on a leash and must be under the Owner’s control at all times. If an animal becomes a nuisance, hazard, or threat to other persons or animals in the subdivision, or wild animals, the Association may order the Owner of such animal to remove the animal from the Property. Any dog kennels or runs must be attached to a primary or accessory structure, be screened from public streets and adjacent properties, and receive Association approval for materials and configuration. Further, they must meet with any applicable zoning. Waste. All Lots and Improvements shall be maintained in a clean, sanitary, attractive, and marketable condition at all times. No Owner shall commit or permit waste of any kind on their Lot or the Improvements thereon. Drainage. No Owner shall alter the direction of natural drainage from their Lot, nor shall any Owner permit accelerated storm run-off to leave their Lot without first using reasonable means to dissipate the flow energy. Security. The Association is not responsible for the security of the Property or any Lot, and each Owner and Occupant of a Lot, and their respective guests and invitees, is responsible for their own personal safety and the security of their Lot and personal property thereon. The Association may, but shall not be obligated to, maintain or support certain activities within the Property designed to enhance the level of safety or security which each person provides for himself and his property. Neither the Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within the Property, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of safety measures undertaken. Vehicles. No unused automobiles or vehicles of any kind shall be stored or parked on any Lot. An “unused vehicle” shall be defined as any vehicle which has not been driven under its own power for a period of thirty (30) consecutive days or longer. In the event any unused vehicle remains parked on any Lot within the Property boundaries, the Association shall have the right to remove the same after forty-eight (48) hours’ notice to the Owner thereof, the expenses to be charged against the Owner thereof, and such charges shall become Reimbursement Assessments against the Owner. EASEMENTS Blanket Easements and Utility Easements. There is hereby created a blanket easement upon, across, over, and under the Property for ingress and egress for the purposes of installing, constructing, replacing, repairing, maintaining, and operating all utilities (whether public or private) including, but not limited to, water, sewer, gas, telephone, electricity, cable (including, but not limited to, television cable and the Common Facilities), security systems, and communication lines and systems, and in addition thereto for the use of emergency vehicles of all types. By virtue of the easement, it shall be expressly permissible for Declarant and its contractors and/or the Association and/or the providing utility company to construct (including, but not limited to, underground installation) and maintain the necessary facilities, wires, circuits, conduits, cables and related appurtenances, facilities and equipment for the project on every part of the Property and to enter upon every part of the said Property to accomplish the foregoing. Association Easement. There is hereby created an affirmative, nonexclusive easement in favor of the Association for ingress and egress over all the Property for the purpose of enabling the Association and its contractors, employees, representatives and agents to implement the provisions of these Covenants. Miscellaneous Easements. In addition to the blanket easements granted in Section 12.1 hereof, the Association is authorized and empowered to grant upon, across, or under all Lots and the Property such permits, licenses, easements, and rights-of-way for the Common Facilities, water lines, underground conduits, storm drains, television cable and other similar public or private utility purposes, security lines, roadways or other purposes as may be reasonably necessary and appropriate for the orderly maintenance, preservation, and enjoyment of the Common Facilities or for the preservation of the health, safety, convenience and welfare of the Owners, provided that any damage to a Lot resulting from such grant shall be repaired by the Association at its expense. Utility And Structural Easements. Easements are reserved unto the Declarant and the Association through the Property and Common Facilities as may be required for the Common Facilities, access roads, utility easements, and other common services, including water, sewer, power, telephone, natural gas, and such other easements as shall be necessary to serve the Lots adequately. All rights to minerals, water, oil and natural gas underlying the Property are reserved to the Declarant. RIGHTS OF MORTGAGEES General Provisions. Notwithstanding and prevailing over any other provisions of these Covenants, the following provisions shall apply to and benefit each holder of a first mortgage (and, in the case of Sections 13.4 and 13.5, to the holder of any mortgage) upon a Lot. Subordination of Lien. The Assessment Lien against a Lot shall be subordinate to the lien of a prior recorded first mortgage on the Lot, acquired in good faith and for value, except to the extent it secures the amount of any unpaid Assessment (together with any interest, costs, reasonable attorneys’ fees and any late charges related thereto) which accrues from and after the date on which a first mortgagee comes into possession of or acquires title to the Lot, whichever occurs first. If the Assessment Lien for unpaid Assessments that become payable after recordation of the first mortgage and prior to the date the first mortgagee comes into possession of or acquires title to the Lot is not extinguished to the extent it secures said unpaid Assessments by the process by which the first mortgagee acquired title to the Lot, neither the first mortgagee nor a third-party purchaser who acquires title through foreclosure of a mortgage and the subsequent foreclosure or trustee’s sale (or through any equivalent proceedings), shall be liable for the unpaid Assessments. Upon written request to the Association by the first mortgagee or purchaser who acquires title through foreclosure of a mortgage and the subsequent foreclosure or trustee’s sale (or through any equivalent proceedings), the Assessment Lien shall be released in writing by the Association to the extent it secures such unpaid Assessments. Nevertheless, if the Owner against whom the original Assessment was made is the purchaser or redemptioner, the lien shall continue in effect and may be enforced by the Association, for the respective Lot’s Assessment, including those due prior to the final conclusion of any such foreclosure or equivalent proceedings. Further, any such unpaid Assessment shall continue to exist as the personal obligation of the defaulting Owner of the respective Lot to the Association, and the Association may use reasonable efforts to collect the same from the Owner even after he or she is no longer the Owner of the Lot. Any unpaid Assessments that are extinguished pursuant to this Section 13.2 may also be reallocated by the Association among all Owners as part of the Common Expenses. Except as above provided (and except for liens for taxes and other public charges which by applicable law are made prior and superior), the Assessment Lien shall be prior and superior to any and all charges, liens, or encumbrances which hereafter in any manner may arise or be imposed on any Lot. A first mortgagee shall not, in any case, be personally liable for the payment of any Assessment or charge, nor the observance or performance of any covenant, restriction, or rule and regulation of the Association, or any management agreement, except for those which are enforceable by a preliminary injunction or other equitable actions, not requiring the payment of money, except as specifically provided in these Covenants. Enforcement After Foreclosure Sale. An action to recover assessments imposed after the foreclosure sale or to abate the breach of any of the covenants, conditions, restrictions, servitudes, and reservations in these Covenants may be brought against any purchaser who acquires title through foreclosure of a mortgage and the subsequent foreclosure or trustee’s sale (or through any equivalent proceedings), and the successors in interest to any such purchaser, even though the breach existed prior to the time the purchaser acquired an interest in the Lot. Exercise of Owners Rights. During the pendency of any proceedings to foreclose a first mortgage (including any period of redemption), the first mortgagee, or a receiver appointed in any such action, may, but shall not be required to, exercise any or all of the rights and privileges of the Owner default including, but not limited to, the right to vote as a Member of the Association in the place and stead of the defaulting Owner if the first mortgagee or receiver gives the Association written notice of its claimed rights and such evidence as the Association may reasonably request demonstrating the existence of the claimed rights. Subject to Covenants. At such time as a mortgagee comes into possession of or becomes record Owner of a Lot, the mortgagee shall be subject to all of the terms and conditions of these Covenants. including, but not limited to, the obligation to pay (and be personally liable for) all Assessments and charges accruing thereafter and the obligation to cure any physical conditions on the Lot that constitute a default under or violation of these Covenants in the same manner as any other Owner, whether or not the condition existed before the mortgagee came into possession of or became the record Owner of the Lot. INSURANCE Required Coverages. The Association shall obtain and continue in effect, if reasonably available, or if not, the most nearly equivalent coverages as are reasonably available, general liability insurance, insuring the Association and its Members for damage or injury caused by the negligence of the Association or any of its Members, employees, or agents while acting on its behalf. If generally available at a reasonable cost, such coverage (including primary and any umbrella coverage) shall have a limit of at least $2,000,000.00 per occurrence and in the aggregate with respect to bodily injury, personal injury, and property damage. The Association may, in exercising its business judgment, obtain additional insurance coverage and higher limits. Insurance obtained for the Association is not meant to replace any individual’s personal liability or property insurance amounts required under Section 14.4. Premiums. Premiums for insurance on the Common Area shall be Common Expenses. Policy Requirements. All Association policies shall provide for a certificate of insurance to be furnished to the Association and, upon request, to each Member insured. In the event of an insured loss, the deductible shall be treated as a common expense in the same manner as the premiums for the applicable insurance coverage. However, if the Association reasonably determines, after notice and an opportunity to be heard, that the loss is the result of the negligence or willful misconduct of one or more Owners, Occupants, or their guests, invitees, then the Association may assess the full amount of such deductible against such Owner or Occupant. All insurance coverage obtained by the Association shall: (a) be written with a company authorized and licensed to do business in Montana; (b) be written in the name of the Association as trustee for the benefited parties; (c) not be brought into contribution with insurance purchased by individual Owners, their mortgagees, or any occupants of a Lot; (d) contain an inflation guard endorsement clause; (e) a waiver of subrogation as to any claims against the Association, the Owners and their agents and guests; (f) a waiver of the insurer’s rights to repair and reconstruct instead of paying cash; (g) an endorsement requiring at least thirty (30) days prior written notice to the Association of any cancellation, substantial modification, or nonrenewal; (h) a cross-liability provision; and (i) a provision vesting in the Association or their authorized representative, which shall be Declarant so long as Declarant’s policy provides Association coverage exclusive authority to adjust losses; provided, no Mortgagee having an interest in so.ch losses may be prohibited from participating in the settlement negotiations, if any, related to the loss. Owners Insurance. By virtue of taking title to a Lot, each Owner covenants and agrees with all other Owners and with the Association to carry blanket “all-risk” property insurance on its Lot(s) and structures thereon providing full replacement cost coverage less a reasonable deductible, unless either the Subdivision in which the Lot is located or the Association carries such insurance which they are not obligated to do. Each Owner further covenants and agrees that in the event of damage to or destruction of structures on or comprising his Lot, he shall proceed promptly to repair or to reconstruct in a manner consistent with the original construction or such other plans and specifications as are approved by the Association. The Owner shall pay all costs which are not covered by insurance proceeds. DAMAGE AND DESTRUCTION OF COMMON FACILITIES Duty of Association. In the event of partial or total destruction of the Common Facilities or any other property which the Association is obligated to insure, the Association may restore and repair the same, subject and pursuant to this ARTICLE XV. The proceeds of any casualty insurance maintained by the Association may be used to the extent available for such purpose, subject to the prior rights of mortgagees, whose interests may be protected by the policies as determined in the sole discretion of the Association. Restoring Damaged Common Facilities. In the event of damage to or destruction of the Common Facilities or other property which the Association is obligated to insure, the Association or its duly authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of repairing or restoring the property to substantially the conditions which it existed prior to the damage, allowing for changes or improvements necessitated by changes in applicable building codes. If either the insurance proceeds or estimates of the loss, or both, are not available to the Association within such a sixty (60) day period, then the period shall be extended for up to sixty (60) additional days until such funds or information are available. No mortgagees shall have the right to participate in the determination of whether the damage or destruction to the Common Facilities shall be repaired or reconstructed. The Association shall retain any insurance proceeds remaining after paying the costs of repair or reconstruction. or after an agreed-upon settlement for the benefit of the Members and placed in a capital improvements account. This is a covenant for the benefit of mortgagees and may be enforced by the mortgagee of any affected Lot. If insurance proceeds are insufficient to cover the costs of repair or reconstruction, the Association may, without a vote of the Members, levy Special Assessments to cover the shortfall against those Owners responsible for the applicable insurance coverage premiums. Excess Insurance Proceeds. In the event any excess insurance proceeds remain after any reconstruction by the Association pursuant to this ARTICLE XV, the Association, in its sole discretion, may retain such sums in the general funds of the Association or may distribute all or a portion of such excess to the Owners in the ratio that they would pay a Reimbursement Assessment hereunder, subject to the prior rights of mortgagees whose interest may be protected by the insurance policies carried by the Association and subject to any restrictions under applicable law. The rights of an Owner or the mortgagee of a Lot to any distribution shall be governed by the provisions of the mortgage encumbering the Lot. LIMITATION ON DECLARANT’S LIABILITY Notwithstanding anything to the contrary in these Covenants, each Owner, by accepting title to any portion of the Property and becoming an Owner, and each other Person acquiring an interest in the Property including, but not limited to mortgagees, acknowledges and agrees that neither the Declarant (including, but not limited to, any assignee of the Declarant’s interest hereunder) nor any related entity (or any partner, shareholder, trustee, officer, director, principal or similar Person holding an interest or position in any such assignee of the Declarant’s interest) shall have any personal liability to the Association, or any Owner, Member, or mortgagee or other Person, arising under, in connection with, or resulting from (including, but not limited to, resulting from action or failure to act with respect to) these Covenants, except to the extent of such Person’s interest in the Property; and, in the event of a judgment, no execution or other action shall be sought or brought thereon against any other assets, nor be a lien upon such other assets, of the judgment debtor. AMENDMENT Amendment to Covenants. Amendments to these Covenants shall be made by an instrument in writing entitled “Amendment to Covenants” which sets forth the entire amendment. Prior to the Transition Date, amendments may be adopted only by the Declarant. After the Transition Date, amendments may be adopted only with the affirmative vote or written consent of a majority of all of the Voting Members. Amendments, once properly adopted, shall be effective upon Recording in the appropriate governmental offices or at such later date as may be specified in the amendment. Effect of Amendment. It is specifically covenanted and agreed that any amendment to these Covenants properly adopted would be completely effective to amend any and all provisions of these Covenants which may be affected and any or all clauses of these Covenants unless otherwise specifically provided in the Section being amended or the amendment itself. ENFORCEMENT Enforcement. Each Owner shall comply strictly with the covenants, conditions, restrictions, and easements set forth in these Covenants. In the event of a violation or breach, or threatened violation or breach, of any of the same, the Declarant, the Association, or any Owner, jointly or severally, shall have the right to proceed at law or in equity for the recovery of damages, reasonable monetary fines and other sanctions for violations of these Covenants or any Supplemental Covenants hereto, for injunctive or other equitable relief, or all of the foregoing. If any Owner or the Association is the prevailing party in any litigation involving these Covenants, then that party also has a right to recover all costs and expenses incurred (including reasonable attorney’s fees). Failure by the Declarant, the Association, or any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so hereafter. DISPUTE RESOLUTION AND LIMITATION ON LITIGATION Agreement to Avoid Litigation. The Declarant, the Association, its officers, directors, and committee members, all Persons subject to these Covenants, and any person or persons not otherwise subject to these Covenants who agrees to submit to this Section 19.1, agree to encourage the amicable resolution of disputes involving the Property without the emotional and financial costs of litigation and shall instead utilize mediation and/or arbitration. REMEDIES All remedies provided for in these Covenants shall not be exclusive of any other remedies which may now be, or are hereafter, available to the parties hereto as provided for by law. MISCELLANEOUS PROVISIONS Term. The provisions of these Covenants shall be binding for a term of twenty (20) years from the date these Covenants was originally recorded. After that initial twenty (20) year term, these Covenants shall be automatically extended for successive periods of twenty (20) years not to exceed three (3) such extensions unless an instrument agreeing to amend, revoke, or terminate the Covenants has been signed by the Owners. Any covenant required by the City as a condition of subdivision approval shall not be altered or amended without the agreement of the City. These Covenants may be modified, altered, or amended by the Declarant at the Declarant’s sole option with no approval by the Association or Owners being necessary so long as the Declarant maintains control of the Subdivision and control has not been turned over to the Association. In addition to the rights reserved to the Declarant to modify or supplement these Covenants with respect to the Subdivision, these Covenants may, only after control has been turned over to the Association from the Declarant, be amended or replaced upon the happening of all the following events: the unanimous vote of the Owners; and the recordation of a certificate of the Association setting forth in full the amendment or amendments to the Covenants so approved, including any portion or portions thereof repealed, and certifying that said amendment or amendments have been approved by vote of the Owners pursuant to these Covenants. Binding Authority. All the limitations, conditions, and restrictions contained in these Covenants shall run with the Property and all Lots and shall be binding on all parties and persons claiming under them. Attorneys’ Fees. Enforcement of these covenants by Declarant, the Association, an Owner, or any party having standing shall include, for the party seeking enforcement and prevailing in such enforcement, an award of costs, fees, and reasonable attorneys’ fees. Captions and Exhibits; Construction. Captions given to various sections herein for these Covenants are for convenience only and are not intended to modify or affect the meaning of any of the substantive provisions hereof. Any exhibits referred to herein are incorporated as though fully set forth where such reference is made. The provisions of these Covenants shall be liberally construed to effectuate its purpose of creating a uniform plan for the development and operation of the Property as hereinabove set forth. Severability. If any provision of these Covenants or any section, clause, sentence, phrase or word, or the application thereof in any circumstance, is held invalid, the validity of the remainder of these Covenants and of the application of any such provision, section, sentence, clause, phrase or word in any other circumstances, shall not be affected thereby, and the remainder of these Covenants shall be construed if such invalid part were never included therein. Mortgage of Lots and Parcels. Each Owner shall have the right, subject to the provisions hereof, to make separate mortgages for his or her respective Lot. No Owner shall have the right or authority to make or create or cause to be made or created any mortgage or other lien or security interest, on or affecting the Property or any part thereof, except only to the extent of his or her Lot. Power of Attorney. Unless otherwise specifically restricted by the provisions of these Covenants, in any instance in which the Association is empowered to take any action or do any act including, but not limited to, action or acts in connection with the Common Facilities or which may at any time be deemed to require the act of an Owner, the Owners hereby constitute and appoint the Association (acting through the Association) as their attorney-in-fact, as maybe appropriate, for the purposes of taking such action or doing such acts including, but not limited to, executing, acknowledging and delivering any instruments or documents necessary, appropriate or helpful for such purposes. It is acknowledged that this power of attorney is irrevocable and coupled with an interest in becoming an Owner by the acceptance of a deed for a Lot, by signing a contract for the purchase of a Lot, or by succeeding in any other manner to the ownership of a Lot, or any interest therein, or a Membership in the Association, each Owner and Member shall be deemed and construed to have ratified and expressly granted the above power of attorney. Gender. Masculine, feminine and neuter references herein each shall include the others as the context requires. Interpretation. Except for judicial construction, the Association, by its Association, shall have the exclusive right to construe and interpret the provisions of these Covenants. In the absence of any adjudication to the contrary by a court of competent jurisdiction, the Association’s construction or interpretation of the provisions hereof shall be final, conclusive, and binding as to all persons and property benefited or bound by the provisions hereof. References to Covenants in Deeds. Deeds to and instruments affecting any Lot or any part of the Property may contain the provisions herein set forth by reference to these Covenants; but regardless of whether any such reference is made in any deed or instrument, all of the provisions hereof shall be binding upon the grantee-Owner or other person claiming through any instrument and his heirs, executors, administrators, successors and assigns as though set forth at length in such instrument. Governing Law. These Covenants shall be subject to and construed in accordance with Montana law. Zoning and Plan. Each Owner, by accepting title to a Lot and becoming an Owner, and each other Person, by acquiring any interest in the Property, acknowledges awareness that the project is an extensive project, the development of which is likely to extend over several years, and agrees, so long as he is the Owner of the Lot, or holds any other interest in the Property, not to protest or otherwise object to the zoning, use, density, or conceptual, development or plan revisions. Notwithstanding anything to the contrary in this Section, the provisions of this Section 21.12 shall be enforceable only to the extent not in violation of any applicable provision of law.  [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, Declarant has hereunto set its hand as of this _______ day of _________________, 2025. LANDERN WEST LLC ____________________________________ By: Sarabjit Slorer Its: Member STATE OF MONTANA ) ) ss. COUNTY OF GALLATIN ) On the _______ day of __________, 2025, before me, a Notary Public for the State of Montana, personally appeared known to me to be the authorized signer for and who executed this instrument on behalf of Landern West LLC, and acknowledged to me that such company executed the same. (SEAL)  Notary Public for the State of __________ My commission expires: ______________ (Printed Name)   EXHIBIT A PLAT EXHIBIT B COMMON FACILITIES EXHIBIT C DESIGN GUIDELINES