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HomeMy WebLinkAbout037 - SRX II CCRs After recording return to: SRX II LLC 1450 Twin Lakes Ave, Suite 201 Bozeman MT 59718 Attn: Parker Lange DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR SOUTH RANGE CROSSING II (GOVERNING COMMERCIAL BLOCK 1 LOT 1, RESIDENTIAL BLOCK 2 LOTS 1-2, AND RESTRICTED LOT 1) Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 2 This Declaration of Covenants, Conditions, and Restrictions and Reservation of Easements for the South Range Crossing II Subdivision (“Declaration”) is made this day of , 2025 by SRX II LLC, a Montana limited liability company (“Declarant”). WHEREAS, Declarant is the owner of the real property described in Exhibit A (“Property”). Declarant intends to develop the Property as the South Range Crossing II Subdivision, a master planned community of the City of Bozeman, Montana, which shall be developed in accordance with the provisions set forth herein. NOW, THEREFORE, Declarant hereby declares that the Property in the shall be developed in accordance with a common scheme and general plan and subject to the following declarations, limitations, easements, restrictions, covenants, and conditions which are imposed as equitable servitudes pursuant to a general plan for the development of the Property for the purpose of enhancing and protecting the value, desirability and attractiveness of the Property as a first-class residential and commercial development. These restrictions, covenants, conditions and easements shall run with the Property and be binding on Declarant and its successors and assigns, and on all parties having or acquiring any right, title or interest in or to the Property or any part thereof, and their respective heirs, successors and assigns, and shall inure to the benefit of each Owner thereof. ARTICLE I DEFINITIONS The terms in this Declaration and the exhibits to this Declaration shall generally be given their natural, commonly accepted definitions except as otherwise specified. Capitalized terms shall be defined as set forth below: 1.1 “South Range Crossing II Architectural Committee (SRXIIAC)” shall be the committee described in Section 6.3. 1.2 “Articles” shall mean and refer to the Articles of Incorporation of the Association, as amended from time to time. 1.3 “Assessment” shall mean that portion of the cost of maintaining, improving, repairing, operating and managing the Property and the Community, which is to be paid by each Owner as determined by the Association, and shall include regular and special assessments, and each Owner’s share of Common Expenses. 1.4 “Association” shall mean and refer to the South Range Crossing II Owners Association, a Montana non-profit mutual benefit corporation, the Members of which shall be the Owners of Lots in the Property. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 3 1.5 “Board” or “Board of Directors” shall mean and refer to the governing body of the Association. 1.6 “Bozeman Municipal Code” shall mean and refer to the version adopted and of record as of the date of recording of this Declaration. 1.7 “Bylaws” shall mean and refer to the Bylaws of the Association, as amended from time to time. 1.8 “Committee” or “SRXIIAC” shall mean and refer to the South Range Crossing II Architectural Committee. 1.9 “Common Areas” shall mean and refer to the portions of the Property and all improvements thereon designated from time to time in this Declaration or in any supplemental declaration, which is to be owned by the Association or which is actually owned by the Association. Common Areas to be maintained by the Association include, but are not limited to, public storm water drainage facilities and infrastructure above and below ground (not maintained by the City of Bozeman) not otherwise required to be maintained by an Owner or Sub-Association. Internal parking areas and drive aisles, individual Lot stormwater drainage systems; sidewalks fronting and internal to Lots; and landscaping, boulevard trees and irrigation system(s) in city rights-of-way boulevard strips and medians along all collector or arterial streets fronting or internal to Lots, if any, may be maintained by an Owner or future Sub-Associations for each of the Commercial Lot, Residential Development, and Restricted Lot 1. 1.10 “Common Expenses” means and includes the actual and estimated expenses of operating and maintaining the Common Areas (and pursuing, implementing, and executing the intent, purposes, business and affairs of the Association) and any reasonable reserve for such purposes as found and determined appropriate by the Board, and all sums designated Common Expenses by or pursuant to this Declaration, the Articles, Bylaws or Rules. Common Expenses shall also include costs and reserves (if appropriate) incurred by the Association in connection with maintaining the Property and improvements thereon as required by this Declaration or the City of Bozeman. Common Expenses shall also include any obligations of the Association, including administrative expenses of the Association and the Association’s share, of any costs or expenses incurred in regard to shared development costs and expenses, other shared expenses of the Residential Development and the Commercial Development, defined below, and the Association’s share of Community Management. Funds to pay all Common Expenses may be collected as part of Assessments, as provided herein. Common Expenses include, but are not limited to, weed management, street lighting, landscaping and maintaining the Common Areas, landscaping and maintaining the streets (including snow removal), maintenance and upkeep of any facilities or improvements in the Stormwater Lots/ Easement Areas and Common Areas, if any, and all expenses associated with utilities and water for the Common Areas, except for any such facilities or infrastructure maintained by the City of Bozeman or a Sub-Association. 1.11 “Commercial Development” or “Commercial Lots” shall mean that portion of Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 4 the Property that is being developed for commercial purposes, which is more specifically described on Exhibit A. The Commercial Development is Block 1, Lot 1 of the South Range Crossing II Subdivision. 1.12 “Community” for the purpose of this Declaration means the South Range Crossing II Subdivision master planned community, development and neighborhood as a whole, including the Residential Development, the Commercial Development, Restricted Lot 1, any parks, wetlands, trails and pedestrian systems, and services and amenities located within the Property, and the associated community character and community lifestyle, known as “South Range Crossing II” or “SRXII”, Bozeman, Montana. 1.13 “Declarant” shall mean and refer to Providence Development Company LLC, a Montana limited liability company qualified to do business in the State of Montana, and any successor or assign that expressly assumes the rights and duties of the Declarant hereunder in a recorded written document. 1.14 “Declaration” shall mean and refer to this Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for South Range Crossing II, as may be amended or supplemented from time to time. 1.15 “Design Regulations and Guidelines” shall mean and refer to the Design Manual attached as Exhibit B (South Range Crossing II Design Regulations), as amended from time to time by the Declarant or the Committee. The design regulations must be consistent with the approved Master Site Plan and cannot be amended without the consent of the Director of Community Development, and Declarant during the Development Period. If a Sub-Association adopts alternate Design Regulations and Guidelines, properly approved in advance as required under this Declaration, then such approved alternate Design Regulation and Guidelines shall govern the Lots of such Sub-Association and supersede and replace the Association’s Design Regulations and Guidelines attached as Exhibit B as to such Lots only. In that event, references in this Declaration to Design Regulations and Guidelines shall be to the alternate approved Design Regulations and Guidelines for the Lots governed thereby. 1.16 “Development Period” shall mean and refer to the period of time during which the Declarant is entitled to exercise Development Rights and Special Declarant Rights. The Development Period commenced at the time the final plat for the first phase was filed and shall terminate on the earlier of the following to occur: (a) all of the initial Lots in the Commercial Development, Residential Development, and Restricted Lot 1, as may be amended during the Development Period, are sold from Declarant to third parties; or (b) twenty-five years from the date the final plat for the first phase was filed. Alternatively, Declarant may deliver written notice to the Association that Declarant is voluntarily relinquishing its Development Rights and Special Declarant Rights under this Declaration at any time, in part or all, at Declarant’s sole discretion. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 5 1.17 “Development Rights” shall mean and refer to the rights reserved to the Declarant as further set forth in Article XII, including but not limited to the rights to (a) submit additional property to be subject to the Declaration; (b) create or amend Lots and Common Areas; (c) subdivide Lots or convert Lots into Common Areas; (d) amend the Design Regulations and Guidelines; (e) withdraw or remove property from this Declaration; (f) amend this Declaration. Development Rights may be exercised in all or any portion of the Property owned by Declarant at any time within the Development Period. 1.18 “Initial Phase” shall mean the Final Plat of South Range Crossing II Subdivision, located in Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. 1.19 “Lot” shall mean each of the Lots in the South Range Crossing II Subdivision Phases, as may be amended, annexed or withdrawn by the Declarant pursuant to this Declaration. As used herein, the term “Lot” shall not include Stormwater Lots, or other tracts which are designated on the Plat Maps. After subdivision of a Lot in future phases of development of the Property, the term Lot as used herein shall also include each Commercial Lot, Residential Lot or Unit, as to such Unit’s allocable percentage share of Membership interest and Common Expense liability. 1.20 “Member” shall mean and refer to a person entitled to membership in the Association as provided herein, and “Membership” shall refer to such entitlement. 1.21 “Owner” or “Owners” shall mean and refer to the record Owner, whether one or more Persons, of fee simple title to any Lot, but excluding those Persons having an interest merely as security for the performance of an obligation. If a Lot is sold under a contract of sale and the contract is recorded, the purchaser, rather than the fee owner, shall be considered the “Owner” from and after the date the Association receives written recorded notice of the contract. 1.22 “Person” means a natural person, a corporation, a partnership, a trust, or other legal entity. 1.23 “Residential Development” shall mean and refer to the part of the Property that is being developed for residential purposes, which is more specifically described on Exhibit A . The Residential Development is Block 2, Lots 1 and 2 of the South Range Crossing II Subdivision. 1.24 “Governing Documents” shall mean and refer to the basic organizational and governance documents of the Association, including the Articles of Incorporation, Bylaws, and this Declaration. 1.25 “Public Park” shall mean and refer to those areas identified on the subdivision plat(s) as Public Parks which have or will be dedicated to and maintained by the City of Bozeman for the use and enjoyment of the general public. No Parkland is planned to be Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 6 dedicated to the City of Bozeman in South Range Crossing II Subdivision. 1.26 “Restricted Lot 1” shall mean and refer to the part of the Property that is deed restricted and subject to future review and approval by the City, which is more specifically described on Exhibit A. 1.27 “Residential Lots” A legally subdivided parcel of a Lot for multi-household, condominium, rowhouse, townhouse and single-family residential use, as may be created in the future development phases. 1.28 “Rules” shall mean and refer to the rules adopted from time to time by the Association pursuant to Article V. 1.29 “Special Declarant Rights” shall mean and refer to the rights of Declarant described in Article XII. 1.30 “Stormwater Lots/ Easement Areas” shall mean and refer to the portions of the Property and all improvements thereon designated from time to time in this Declaration or in any supplemental declaration, which is to be owned by the Association or which is actually owner by the Association. Stormwater Lots within Restricted Lot 1 are identified on the plats as Stormwater Easement Area is owned and maintained by the Association. 1.31 “Sub-Association” Sub-Association means an incorporated property owners association, including any condominium association but not including the South Range Crossing II Owners Association. Any governing documents of a Sub-Association are subject to the terms and conditions of this Declaration. 1.32 “Unit” or “Residential Unit” shall mean and refer to any multi-family and/ or single-household residential dwelling unit and related improvements constructed upon a Lot or Residential Lot, including a condominium or townhome unit under the Montana Unit Ownership Act. ARTICLE II DESCRIPTION, EASEMENTS, ANNEXATION 2.1 Description of Property and Future Development. The Property subject to this Declaration is Blocks 1, 2 and Restricted Lot 1 of the South Range Crossing II Subdivision consisting of the Residential Development, the Commercial Development, and the Restricted Lot, Stormwater Lots, and all improvements thereon as shown on Exhibit A. The Property is intended to be developed in phases. It is contemplated that the Property, subject to the requirements of the Governing Documents and state and local subdivision law, regulation and review requirements, will be further subdivided into Residential Lots, Commercial Lots, and Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 7 Restricted Lot in future phases subject to City of Bozeman approvals. Declarant reserves the right to make changes to future phases and, while Declarant intends and expects to complete the development as described herein, nothing herein creates an obligation on the Declarant to develop future phases. 2.2 Application of Declaration to the Property. All of the Property shall be held, sold, used and conveyed subject to the following easements, restrictions, covenants, and conditions, which are for the purpose of protecting the value and desirability of and which shall run with title to the real property subjected to this Declaration. This Declaration shall be binding on all parties having any right, title, or interest in the Property or any part thereof, their heirs, successors, successors-in-title, and assigns, and shall inure to the benefit of each Owner thereof. 2.3 Easements. Each Lot shall have appurtenant to it as the dominant tenement an easement over all Lots for ingress, egress, use and enjoyment, and for the construction, maintenance, operation and use of utilities, subject to the rights and easements in favor of Declarant as provided herein, and as otherwise stated in this Declaration. 2.4 Easements to Accompany Conveyance of Lot. Easements that benefit or burden any Lot shall be appurtenant to that Lot and shall automatically accompany the conveyance of such Lot, even though the description in the instrument of conveyance may refer only to the fee title to the Lot. All easements granted and reserved in this Declaration are subject to the condition that their use and enjoyment shall not permanently unreasonably interfere with the use, occupancy or enjoyment of all or any material part of the Lot servient to them or to which they are appurtenant. To the extent easement locations have been platted, exercise of easements shall be within the platted easement locations. 2.5 Owners’ Rights and Easements for Utilities. The rights and duties of the Owners of Lots with respect to sewer, drainage, water, irrigation water, electric, gas, television and telephone equipment, cables and lines (collectively “utility facilities”) shall be as follows: A. Whenever utility facilities are installed, which utility facilities or any portion thereof lie in or upon a Lot or Lots owned by other than the Owner of a Lot served by said utility facilities, the Owners of any Lots served by such utility facilities shall have the right of reasonable access for themselves or for utility companies or providers to repair, to replace and generally maintain said utility facilities as and when the same may be necessary. B. Whenever utility facilities are installed which serve more than one Lot, the Owner of each Lot served by said utility facilities shall be entitled to the full use and enjoyment of such portions of said utility facilities as service the Owner’s Lot. C. In the event of a dispute between Owners with respect to the repair or rebuilding of said utility facilities, or with respect to the sharing of the cost thereof, then, upon written request of one (1) Owner addressed to the other Owner(s), the matter shall be submitted first to the Board for mediation, and thereafter, if the dispute remains unresolved, to binding Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 8 arbitration pursuant to the rules of the American Arbitration Association. 2.6 Easements for Maintenance, Improvement, Repair, Relocation, and Replacement. Declarant, the Association, designees of any of the foregoing and all public or private utilities shall have such easements over, under, across, and through the Property, including all Lots, as may be necessary to exercise any rights or fulfill any responsibilities, including those of installation, maintenance, repair, reconstruction, replacement, improvement, or relocation, which they or any of them are required or permitted to perform under this Declaration. These easements include, without limitation, the right of Declarant and the Association to obtain access at all times to any meters, controls, valves, pipes, utility mains, lines, utility facilities, conduits, and other improvements and equipment with respect to the private utilities located on or to which access may be gained through any Lot. Except in an emergency situation, such entry onto a Lot shall only be during reasonable hours and after notice to the Owner. 2.7 Drainage Easements. An easement over and under each Lot as the servient tenement is reserved by Declarant in favor of each other Lot and the Association for the purpose of allowing the Association’s agents the right, but not the obligation, to enter the Lot to maintain that portion of any storm drainage system located thereon. No Owner or occupant shall commit any act that would interfere with the operation of any drainage system (including drainage swales) installed on the Owner’s Lot. The Owner shall maintain the system free of debris and other obstacles at all times. Reciprocal appurtenant easements between each Lot and adjoining Lots are reserved for the flow of water in the storm drainage system. 2.8 Other Easements. The Property is subject to all easements, dedications, and rights of way granted or reserved in, on, over and under the Property as shown on the public records, including as reflected on any recorded Plat Map, and as otherwise provided or contemplated in this Declaration. 2.9 Rights of Entry and Use. The Lots shall be subject to the following rights of entry and use: A. The right, but not the obligation, of the Association’s agents to enter any Lot to cure any violation of this Declaration, the Articles, Bylaws or Rules and Regulations, provided that the Owner has received notice of the violation (except in the case of an emergency) and the Owner has failed to cure the violation or take steps necessary to cure the violation within thirty (30) days after the finding of a violation by the Association; B. The easements described in this Article II; C. The right of the Association’s agents to enter any Lot to perform maintenance to the extent described herein; and D. The rights and easements of the Declarant during the Development Period Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 9 as described in herein. 2.10 No Subdivision of Lots. No Lot shall be subdivided, partitioned, aggregated, or be subject to a boundary line adjustment without the prior written consent of the Declarant during the Development Period and thereafter the Association. The Owner of the Residential Development, that is Block 2, Lots 1 and 2, may create a Sub-Association and record certain governing documents related solely to Block 2, Lots 1 and 2 with Declarant’s prior written approval, which approval shall not unreasonably be withheld. The provisions and restrictions of this section do not apply to condominium projects that comply with the requirements of the Design Regulations and Guidelines and the requirements of the City of Bozeman and any other governmental agency with jurisdiction thereof. 2.11 Municipal Facilities Exclusion (MFE) Land Divisions Excluded from Review (1) A subdivision excluded from the provisions of Montana Code chapter 3 must be submitted for review according to the provisions of this part, except that the following divisions or parcels, unless the exclusions are used to evade the provisions of this part, are not subject to review: (d) as certified pursuant to 76-4-127: (iii) divisions or previously divided parcels of land that are exempt from the Montana Subdivision and Platting Act review under 76-3-203 or 76-3- 207(1)(a), (1)(b), (1)(d), (1)(e), or (1)(f). (2) 76-3-203. Exemption for certain condominiums and townhouses. (1) Condominiums, townhomes, townhouses, or conversions, as those terms are defined in 70-23- 102, constructed on land subdivided in compliance with parts 5 and 6 of this chapter or on lots within incorporated cities and towns are exempt from the provisions of this chapter if: (b) the condominium, townhome, or townhouse proposal is in conformance with applicable local zoning regulations pertaining to land use, density, bulk and dimensional requirements, landscaping, and parking requirements when local zoning regulations are in effect. 2.12 All Easements Part of Common Plan. Whenever any easements are reserved or created herein, such easements shall constitute equitable servitudes for the mutual benefit of the Property, as applicable, even if only certain Lots are specifically mentioned as subject to or benefiting from a particular easement, and when easements referred to herein are subsequently created or reserved by deeds or conveyances, such easements are to be considered to be part of the common plan created by this Declaration for the benefit of all property Owners within the Property. ARTICLE III ASSOCIATION ADMINISTRATION, MEMBERSHIP AND VOTING RIGHTS 3.1 Membership. The Owner of a Lot shall automatically, upon becoming the Owner of same, be a Member of the Association, and shall remain a Member thereof until such time as Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 10 the ownership ceases for any reason as provided herein, and consents to such membership in the Association. Membership shall be mandatory and appurtenant to and may not be separated from ownership of a Lot. Upon subdivision of any Lot in future phases into Lots and Units, the Membership interest in the Association associated with each Lot shall be allocated proportionately among Lot or Unit based on the acreage within such Lot. Membership shall be held in accordance with this Declaration, the Articles, Bylaws and Rules. Declarant shall be a Member of the Association for all Lots owned by Declarant. 3.2 Transferred Membership. Membership in the Association shall not be transferred, encumbered, pledged, or alienated in any way, except upon the sale or transfer of the Lot to which it is appurtenant, and then only to the purchaser, in the case of a sale, or to a Mortgagee that has foreclosed or received a deed in lieu of foreclosure, in the case of an encumbrance. On any transfer of title of an Owner’s Lot, Membership shall automatically pass with such transfer. A Mortgagee shall not have Membership rights until it obtains title to the Lot through foreclosure or deed in lieu thereof. Any attempt to make a prohibited transfer is void. No Member may resign from Membership. On receipt of notice of a transfer, the Association shall record the transfer on its books. 3.3 Membership Voting Rights. Member voting rights shall be as set forth in the Bylaws. 3.4 Association Operation. The Association shall be governed and operated by a Board of Directors consistent with this Declaration and the Association’s Articles of Incorporation and Bylaws. Declarant shall have the right to appoint all members of the Board of Directors until such time as the Development Period terminates or Declarant voluntarily relinquishes control at an earlier date as provided herein. After the Development Period, Declarant shall transition the governance of the Association via the Board of Directors to the other Owners who shall elect the Board in the manner provided in the Bylaws. ARTICLE IV MAINTENANCE AND ASSESSMENTS 4.1 Creation of the Lien and Personal Obligation of Assessments. Subject to the exception for Declarant as provided in Section 4.7, each Owner of any Lot or Unit by acceptance of a deed or conveyance thereto, whether or not it shall be so expressed in such deed or conveyance, covenants and agrees: (1) to pay to the Association regular and special Assessments, to be established and collected as hereinafter provided; and (2) to allow the Association to enforce any Assessment lien established hereunder by non-judicial proceedings under a power of sale or by any other means authorized Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 11 by law. The regular and special Assessments, together with interest, late charges, collection costs, and reasonable attorneys’ fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such Assessment is made, the lien to become effective upon recordation of a notice of delinquent Assessment. Each such Assessment, together with interest, late charges, collection costs, and reasonable attorneys’ fees, shall also be the personal obligation (joint and several) of each Person who was the Owner of such property at the time when the Assessment fell due. No Owner of a Lot or Unit may be exempt from liability for the Owner’s contribution towards the Common Expenses by the abandonment of a Lot or Unit. The interest of any Owner in the amounts paid pursuant to any Assessment upon the transfer of ownership shall pass to the new Owner. Upon subdivision of any Lot in future phases, the proportionate share of Assessments of any Lot shall be assessed proportionately among the Lots or Units of the subdivided Lot in the manner provided for allocation of Membership interest appurtenant to such Lot or Unit. Upon the termination of these covenants for any reason, any amounts remaining from the collection of such Assessments after paying all amounts properly charged against such Assessments shall be distributed to the then Owners on the same pro rata basis on which the Assessments were collected. 4.2 Purpose of Assessments. The Assessments levied by the Association shall be used to pay Common Expenses, to promote the economic interests, recreation, health, safety and welfare of Owners, and to enable the Association to perform its obligations hereunder. 4.3 Assessments. A. Regular Assessments. The Board shall annually establish and levy regular Assessments in an amount that the Board estimates will be sufficient to raise the funds needed to pay Common Expenses and perform the duties of the Association during each fiscal year. The regular Assessments shall include a portion for reserves in such amounts as the Board, in its discretion, considers appropriate to meet the costs of the future repair, replacement or additions to the major improvements and fixtures that the Association is obligated to maintain and repair. Reserve funds shall be deposited in a separate account and the signatures of at least two (2) Persons, who shall either be members of the Board or one officer who is not a member of the Board and one member of the Board, shall be required to withdraw monies from the reserve account. Except to the limited extent otherwise provided herein, reserve funds may not be expended for any purpose other than repairing, restoring, maintaining or replacing the major components that the Association is obligated to maintain without the consent of Owners holding a majority of the voting power either at a duly held meeting or by written ballot. B. Special Assessments. The Board may at any time levy a special Assessment in order to raise funds for unexpected operating or other costs, insufficient operating or reserve funds, or such other purposes as the Board in its discretion considers appropriate. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 12 Special Assessments shall be allocated among the Lots in the same manner as regular Assessments, except in the case of an Assessment levied by the Board against a Member to reimburse the Association for costs incurred in bringing the Member and Member’s Lot into compliance with provisions of the Governing Documents. 4.4 Restrictions on Increases in Assessments. The Board adjust Assessments to meet changed needs, however, the Board may not impose Assessments on any Lot which is more than twenty percent (20%) greater than the Assessment for the immediate preceding fiscal year, or levy a special Assessment to defray the cost of any action or undertaking on behalf of the Association which in the aggregate exceeds ten percent (10%) of the budgeted gross expenses of the Association for that fiscal year, without the vote or written assent of Members casting a majority of the votes at a meeting of the Association at which a quorum is present. Any meeting of the Association for purposes of complying with this section 4.4 shall be conducted in accordance with the Montana Non-Profit Corporation Act. The Board may increase regular Assessments by more than twenty percent (20%) over the regular Assessment for the immediately preceding fiscal year only if the Board has complied with the provisions set forth in the Bylaws and this Declaration. Notwithstanding the foregoing, the Board, without Membership approval, may increase regular Assessments or levy special Assessments necessary for an emergency situation. For purposes of this section, an emergency situation is one of the following: (1) an extraordinary expense required by an order of a court; (2) an extraordinary expense necessary for repair or maintenance for which the Association is responsible resulting in a threat to public health or safety; or (3) an extraordinary expense necessary for repair or maintenance for which the Association is responsible that could not have been reasonably foreseen by the Board in preparing and distributing the pro forma operating budget, provided, however that prior to the imposition or collection of the Assessment, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process and the resolution shall be distributed to the Members with the notice of the Assessment. The Association shall provide by first-class mail or electronic means if permitted via the Bylaws and the Montana Nonprofit Corporations Act notice to Owners of any increase in the regular or special Assessments of the Association not less than thirty (30) nor more than sixty (60) days prior to the increased Assessment becoming due. 4.5 Notice and Quorum for Action Authorized Under Section 4.4. Any action authorized under section 4.4, which requires a vote of the Membership, shall be taken at a meeting called for that purpose, written notice of which shall be sent to all Members not less than ten (10) nor more than sixty (60) days in advance of the meeting, specifying the place, day Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 13 and hour of the meeting and, in the case of a special meeting, the nature of the business to be undertaken. The action may also be taken without a meeting pursuant to the provisions of the Bylaws. 4.6 Division of Assessments. All Assessments, both regular and special, shall be levied among the Owners proportionately based on the relative acreage of the developable areas of their respective Lots. Lots not developable will not be included in the calculation of division of Assessments. Assessments shall be further allocated among Residential Lots or Units and Commercial Lot(s) in future phases of development, as described in Section 4.1. Regular Assessments shall be collected on a monthly basis unless the Board directs otherwise. Special Assessments may be collected in one payment or periodically as the Board shall direct. 4.7 Date of Commencement of Regular Assessment; Due Dates. The regular Assessments provided for herein shall commence as to each Lot in the Initial Phase on the first day of the month following the conveyance from Declarant of the Lot to an Owner in the Initial Phase. In subsequent phases, the regular Assessments against each Lot in each phase shall commence on the first day of the month following the conveyance from Declarant of the Lot to an Owner in such phase. As Lots and Units in each phase become subject to Assessments, the Board shall determine whether the amount of regular Assessments payable by all Owners will change and, if so, the amount of such change, and the Board shall then send out revised Assessment notices as appropriate. Subject to the provisions of section 4.3, the Board of Directors shall use its best efforts to fix the amount of the regular Assessments against each Lot and sending written notice thereof to every Owner at least forty-five (45) days in advance of each fiscal year The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association stating whether the Assessments on a specified Lot have been paid. Such a certificate shall be conclusive evidence of such payment. 4.8 Effect of Nonpayment of Assessments. Any Assessment not paid within fifteen (15) days after the due date shall be delinquent, shall bear interest at the rate of ten percent (10%) per annum from thirty (30) days after the due date until paid, and shall incur a late payment penalty in an amount to be set by the Board from time to time, such interest and penalties not to exceed the maximum permitted under Montana law. 4.9 Transfer of Lot, by Sale or Foreclosure. Sale, transfer or foreclosure of any Lot or Unit shall not affect the Assessment lien. If a Lot or Unit is transferred, both the grantee and the grantor shall remain liable to the Association for all unpaid Assessments against the Lot through and including the date of the transfer. The grantee shall be entitled to a statement from the Association, dated as of the date of transfer, setting forth the amount of the unpaid Assessments against the Lot to be transferred and the Lot shall not be subject to a lien for unpaid Assessments in excess of the amount set forth in the statement; provided, however, the grantee shall be liable for any Assessments that become due after the date of the transfer. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 14 4.10 Priorities; Enforcement; Remedies. (a) If an Owner fails to pay an Assessment when due, the Association has the right, and option, to bring legal action against the Owner to enforce collection of the unpaid and past-due Assessment or may impose a lien on the Lot or Unit owned by Owner, or both. Suit to recover a money judgment for unpaid Assessments and attorney’s fees shall be maintainable without foreclosing or waiving the lien securing the same. Before the Association may place a lien upon a Lot or Unit, the Association shall notify the Owner in writing by certified mail of the fee and penalty procedures of the Association, provide an itemized statement of the charges owed by the Owner, including the principal owed, any late charges, and the method of collection, any attorneys’ fees, and the collection practices used by the Association, including the right of the Association to the reasonable costs of collection. The Association may record a notice of delinquent Assessment and establish a lien against the Lot or Unit of the delinquent Owner prior and superior to all other liens except (1) all taxes, bonds, Assessments and other levies which, by law, would be superior thereto, and (2) the prior lien or charge of any Mortgage of record (meaning any recorded Mortgage or deed of trust with first priority over other Mortgages or deeds of trust) made in good faith and for value. The notice of delinquent Assessment shall state the amount of the Assessment, collection costs, attorney’s fees, late charges and interest, a description of the Lot against which the Assessment and other sums are levied, the name of the record owner, and the name and address of the trustee authorized by the Association to enforce the lien by sale. The notice shall be signed by any officer of the Association, or any management agent retained by the Association and shall be mailed in the manner required under Montana law to all record owners of the Lot no later than 10 days after recordation. (b) After the expiration of thirty (30) days following the recordation of the lien, an Assessment lien may be enforced in any manner permitted by law, including sale by the court or sale by the trustee designated in the notice of delinquent Assessment. Any sale by the trustee shall be conducted in accordance with the provisions of Montana law applicable to the exercise of powers of sale in Mortgages and deeds of trust, or in any other manner permitted by law. Nothing herein shall preclude the Association from bringing an action directly against an Owner for breach of the personal obligation to pay Assessments. (c) The Association, acting on behalf of the Owners, shall have the power to bid for the Lot at a foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. (d) The Board may temporarily suspend the voting rights of a Member who is in default in payment of any Assessment, after notice and hearing, as provided in the Bylaws. (e) To the extent allowed under Montana law, the Association may file a lien against a Lot for fines and penalties for violation of restrictions. (f) The Association is not empowered to cause a forfeiture or abridgement Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 15 of an Owner’s right to the full use and enjoyment of an Owner’s Lot on account of the failure by the Owner to comply with provisions of the Governing Documents or Rules, except by judgment of a court or a decision arising out of binding arbitration or on account of a foreclosure or sale under power of sale for failure of the Owner to pay Assessments duly levied by the Association. (g) Each Owner waives, to the maximum extent permitted by law, the benefit of any Montana homestead or exemption laws in effect when any Assessment or installment becomes delinquent, or a lien is imposed. 4.11 Unallocated Taxes. In the event that any taxes are assessed against the personal property of the Association, rather than against the Lots, said taxes shall be included in the Assessments made under the provisions of section 4.1 and, if necessary, a special Assessment may be levied against the Lots in an amount equal to said taxes, to be paid in two (2) installments, thirty (30) days prior to the due date of each tax installment. ARTICLE V DUTIES AND POWERS OF THE ASSOCIATION 5.1 Duties. In addition to the duties enumerated in the Articles and Bylaws, or elsewhere provided for in this Declaration, and without limiting the generality thereof, the Association, acting through its Board of Directors, shall perform the following duties: A. Maintenance: The Association shall maintain and repair facilities or infrastructure owned by or the responsibility of the Association. The Association shall pay all Common Expenses, as defined herein which will include but not be limited to weed management and maintenance of the public storm water facilities. In all instances, all facilities and improvements which are required to be installed pursuant to the final plat approvals by the City of Bozeman must be maintained in good condition in accordance with the Bozeman Municipal Code. The responsibility of the Association for maintenance and repair described above shall not extend to repairs or replacements arising out of or caused by the willful or negligent act or omission of any Owner, or an Owner’s guest, tenant, invitee or pet. Any such repairs or replacements not covered by insurance carried by the Association shall be made by the responsible Owner, provided the Board approves the Person or entity actually making the repairs and the method of repair. If the responsible Owner fails to take the necessary steps to make the repairs within a reasonable time under the circumstances, the Association shall cause the repairs to be made and charge the cost thereof to the responsible Owner, which costs shall bear interest at the rate of ten percent (10%) per annum (but no greater than the maximum rate allowed by law) until paid in full. If such repair is covered by the insurance carried by the Association, the Association shall be responsible for making the repairs, and the responsible Owner shall pay any deductible pursuant to the insurance policy. If the Owner fails to make such payment, then the Association may make such payment and shall charge the responsible Owner, which charge Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 16 shall bear interest at the rate of ten percent (10%) per annum (but no greater than the maximum rate allowed by law) until paid in full. If the Owner disputes the charge, the Owner shall be entitled to a notice and a hearing as provided in the Bylaws before the charge may be collected. B. Owners shall be responsible for keeping their Lots in good repair and well maintained. If the responsible Owner fails to take the necessary steps to keep its Lot in good repair and well maintained, make the repairs within a reasonable time under the circumstances, but no more than 90 days after written notice from the Association, the Association shall cause the repairs to be made and charge the cost thereof to the responsible Owner, which costs shall bear interest at the rate of ten percent (10%) per annum (but no greater than the maximum rate allowed by law) until paid in full. If such repair is covered by the insurance carried by the Association, the Association shall be responsible for making the repairs, and the responsible Owner shall pay any deductible pursuant to the insurance policy. If the Owner fails to make such payment, then the Association may make such payment and shall charge the responsible Owner, which charge shall bear interest at the rate of ten percent (10%) per annum (but no greater than the maximum rate allowed by law) until paid in full. C. Insurance: The Association shall obtain and maintain such policy or policies of insurance as are required by section 9.1 of this Declaration. D. Assessments: The Association shall fix, levy, collect and enforce Assessments as set forth in Article IV hereof. E. Payment of Expenses and Taxes: The Association shall pay all expenses and obligations incurred by the Association in the conduct of its business including, without limitation, all licenses, taxes, assessments and governmental charges levied or imposed upon, or which are or may become a lien against, the property of the Association. F. Enforcement: The Association shall be responsible for the enforcement of this Declaration, the Articles, Bylaws and Rules. In the event an Owner fails to comply with any Governing Documents, the Association has the right to enter upon such Owner’s Lot, remedy the lack of compliance and assess the costs incurred by the Association to such Owner. G. Inspection and Maintenance Guidelines: The Board shall adopt inspection and maintenance guidelines for the periodic inspection and maintenance improvements which the Association has the responsibility to maintain. The Board periodically and at least once every two years shall review and update the inspection and maintenance guidelines. The Board shall take all appropriate steps to implement and comply with the inspection and maintenance guidelines. H. Preparation of Financial Documents: The Board shall cause the preparation of budgets and financial statements as required by the Bylaws. 5.2 Powers. In addition to the powers enumerated in the Articles and Bylaws, or Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 17 elsewhere provided for herein, and without limiting the generality thereof, the Association shall have the following powers: A. Utility Service. The Association shall have the authority (but not the obligation) to obtain, for the benefit of all of the Owners, all utilities and utility services including, without limitation, water, sewer, gas, electric service, refuse collection and cable access television. B. Easements. The Association shall have the right to grant easements under, in, upon, across, over, above or through any portion of the Common Areas for reasonable purposes, as approved by the Board, which are beneficial to the Association, the Property, or the development of same. C. Managers and Agents: The Association may employ manager(s) or other Persons and contract with independent contractors or managing agents to perform all or any part of the required or voluntary duties and responsibilities of the Association, except for the responsibility to levy fines, impose discipline, hold hearings, file suit, record or foreclose liens, or make capital expenditures. D. Adoption of Rules: The Board shall have the right to adopt, promulgate and enforce reasonable rules and regulations (“Rules”), not in conflict or inconsistent with this Declaration relating to the Property and all aspects thereof including, without limitation, the operation, maintenance, use and enjoyment thereof, and individual Lots. It is the intent of this section that the Board have broad discretion with respect to the Rules and that the Board’s authority in this regard be construed liberally in order to effectuate the objectives of the Board with respect to the Rules. In general, the objectives of the Board should be to promote and enhance the Property, Lots therein, attractiveness and economic viability thereof, and provide for the orderly operation, maintenance, repair and upkeep of the Property, improvements thereon, and such rules may include procedures relating to the conduct of Association business. Written copies of such Rules and any schedule of fines and penalties adopted by the Board shall be furnished to Owners. Anything contained herein to the contrary notwithstanding, until all of the initial Lots are transferred by Declarant to third parties, the adoption or amendment of any Rules shall require the consent of Declarant. E. Access: For the purpose of performing construction, maintenance or emergency repair which the Lot Owner has failed to perform as provided herein, the Association’s agents or employees shall have the right, after reasonable notice to the Owner thereof, to enter any Lot at reasonable hours and at any necessary time in the event of an emergency. Such entry shall be made with as little inconvenience to the Owner as practicable and, except as otherwise provided herein, any damage caused thereby shall be repaired by the Board at the expense of the Association. F. Assessments, Liens, Penalties, and Fines: The Board shall have the power to levy and collect Assessments in accordance with the provisions of Article IV hereof. The Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 18 Association may impose fines or take disciplinary action against any Owner for failure to pay Assessments or for violation of any provision of the Governing Documents and the unrecorded Rules adopted by the Board or the Association. Penalties may include but are not limited to fines, temporary suspension of voting rights, rights to the use of recreational facilities (except those open to members of the public), if any, or other appropriate discipline, provided the Member is given notice and a hearing as provided in the Bylaws before the imposition of any fine or disciplinary action. The Board shall have the power to adopt a schedule of reasonable fines and penalties for violations of the terms of this Declaration, and for violations of any Rules adopted pursuant to section 5.2D. The penalties prescribed may include suspension of all rights and privileges of Membership; provided, however, that suspension for failure to pay Assessments shall be for a maximum period of thirty (30) days, renewable by the Board for an additional thirty (30) day period or periods until paid; and provided further that suspension for infraction of Rules or violation of this Declaration, other than for failure to pay Assessments, shall be limited to a maximum period of thirty (30) days per infraction or violation, and shall be imposed only after a hearing before the Board. The Board may extend said period for an additional period or periods in the case of a continuing infraction or violation, and no hearing need be held for such extension. Written copies of Rules and the schedule of penalties shall be furnished to Owners. The Board shall assess fines and penalties and shall enforce such Assessments as appropriate under applicable law. G. Enforcement: The Board shall have the power to enforce this Declaration, the Articles, Bylaws and Rules. H. Acquisition and Disposition of Property: The Board shall have the power to acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, or otherwise dispose of real or personal property in connection with the affairs of the Association. Except to the extent authorized herein, any transfer of fee title to Association property shall be by document signed or approved by two-thirds (2/3) of the total voting power of the Members of the Association. I. Contracts: The Board shall have the power to contract for goods and/or services subject to limitations set forth in the Bylaws, or elsewhere herein. J. Delegation: The Association, the Board, and the officers of the Association shall have the power to delegate their authority and powers to committees, officers or employees of the Association, or to a property manager employed by the Association, provided that the Board shall not delegate its responsibility: (1) To make expenditures for capital additions or improvements chargeable against the reserve funds; (2) To conduct hearings concerning compliance by an Owner or Owner’s tenant, lessee, guest or invitee with the Declaration, Bylaws or Rules promulgated by the Board; Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 19 (3) To make a decision to levy monetary fines, impose special Assessments against individual Lots, temporarily suspend an Owner’s rights as a Member of the Association or otherwise impose discipline; (4) To make a decision to levy regular or special Assessments; and (5) To make a decision to bring suit, record a claim of lien or institute Foreclosure proceedings for default in payment of Assessments. K. Appointment of Trustee: The Association, or the Board acting on behalf of the Association, has the power to appoint or designate a trustee to enforce Assessment liens by sale as provided in section 4.9. L. Litigation/Arbitration: Subject to the terms and provisions of Article X, the Association shall have the power to institute, defend, settle or intervene in litigation, arbitration, mediation or administrative proceedings in matters pertaining to (A) enforcement of the Governing Documents, (B) damage to the improvements which the Association is obligated to maintain or repair. M. Other Powers: In addition to the powers contained herein, the Board may exercise the powers granted to a nonprofit mutual benefit corporation under Montana law. ARTICLE VI ARCHITECTURAL CONTROL 6.1 Lots Subject to Architectural Controls. All Lots and Units are subject to architectural review to determine compliance with the Design Regulations and Guidelines in the Design Manual, the Declaration and the other Governing Documents. No structure shall be placed, erected, or installed upon any Lot, and no improvements (including staking, clearing, excavation, grading and other site work, exterior alteration of existing improvements, and planting or removal of landscaping materials) shall take place except in compliance with this Declaration and approval of the South Range Crossing II Architectural Committee (SRXlIAC) (“Committee”); provided, however, that homes constructed by and for Declarant do not require Committee approval. Plans and specifications showing the nature, kind, shape, color, size, materials, and location of all proposed structures and improvements shall be submitted to the Committee for review in accordance with the Design Regulations and Guidelines. 6.2 Purpose of Architectural Controls and Committee. The purpose and intent of this Article VI and the Design Manual (Exhibit B) is to empower the Declarant to preserve property values and accomplishes the purpose of this Declaration. Until the end of the Development Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 20 Period, the Declarant shall act as the Committee a.k.a. SRXAC, but may delegate that authority to the Association. A copy of the Design Regulations and Guidelines are attached, but owners should check with the SRXAC for any updated versions. To the extent any building or landscape design provisions in this Declaration conflict with the Design Regulations and Guidelines, the Design Regulations and Guidelines shall control. 6.3 Modifications to Existing Improvements. Any Owner may remodel, paint or redecorate the interior of Owner’s Unit without approval. Modifications to the exterior of a structure (and the interior of screened porches, patios, and similar portions of a structure visible from outside the structure on a Residential Lot or Commercial Lot) shall be subject to review by the SRXIIAC. No approval shall be required to repaint the exterior of a structure in accordance with the originally approved color scheme, or to alter landscaping or repair or rebuild structures in a manner that substantially in accordance with the original as-built plans and specifications, modified as may be required by applicable building codes and regulations in force at the time of such rebuilding. ARTICLE VII USE RESTRICTIONS In addition to all of the covenants, conditions and restrictions contained herein, the use of the Property and Lots are subject to the following: 7.1 Use of Lot. Lots are intended for further development. Use of Lots shall at all times be in compliance with the conditions of approval by City of Bozeman, Montana, and any applicable regulations of the City of Bozeman, including the Unified Development Ordinance (Bozeman UDC). The use of any Lot and improvements thereon shall be limited to and subject to such uses that are in compliance with this Declaration, the Articles, Bylaws and Rules, and the terms of the Design Regulations and Guidelines. 7.2 Nuisances. No noxious or illegal, activities shall be carried on upon any Lot, nor shall anything be done thereon which may be or may become a nuisance to or which may in any way interfere with the quiet enjoyment of each of the Owners or Owners’ respective Lots. 7.3 Parking on Public Streets. Parking on public streets is subject to the provisions of Chapter 38 of the Bozeman Municipal Code, as may be amended from time to time. 7.4 Garbage and Refuse Disposal. All rubbish, trash and garbage shall be regularly removed from the Lots and shall not be allowed to accumulate thereon. Trash, garbage and other waste must be kept in appropriate containers. All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition, and shall be stored in the garage on in an enclosed storage area screened from view of neighboring Lots and streets. Trash containers may be left out for collection at dusk on the day prior to trash collection and must be returned to storage in the garage or other designated storage area by dusk on the day of collection. No toxic Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 21 or hazardous materials shall be disposed of by dumping in the garbage containers or down the drains, or otherwise. 7.5 Activities Causing Increase in Insurance Rates. Nothing shall be done or kept on any Lot or in any improvements constructed thereon which will increase any applicable rate of insurance or which will result in the cancellation of insurance on any Lot, or which would be in violation of any law. 7.6 Temporary Structures. No structure, facility or appurtenance of a temporary character shall be placed upon any Lot except in accordance with the Rules. 7.7 Owner’s Right and Obligation to Maintain and Repair. Each Owner shall, at each Owner’s sole cost and expense, maintain and repair Owner’s Unit and Lot and all improvements, lawn, and landscaping thereon, including snow removal, keeping the same in good condition. In the event an Owner of any Lot shall fail to so maintain the Owner’s Lot, the Association’s agents may, after notice and a hearing as provided in the Bylaws, enter the Lot and perform the necessary maintenance. The cost of such maintenance shall immediately be paid to the Association by the Owner of such Lot, together with interest at the rate of twelve percent (12%) per annum (but not to exceed the maximum interest rate authorized by law) from the date the cost was incurred by the Association until the date the cost is paid by the Owner. 7.8 Timeshare and Fractional Ownership Prohibition. No Lot, Residential Lot or Residential Unit, or any portion thereof shall be leased, subleased, occupied, rented, let, sublet, or used for or in connection with any time sharing or fractional agreement, plan, program or arrangement, including, without limitation, any so called “vacation license,” “travel club,’ “extended vacation,” or other membership or time interval ownership arrangement. This section shall not be construed to limit the personal use of any Lot or any portion thereof by any Owner or an Owner’s social or familial guests. 7.9 High Groundwater Note. Owners are hereby informed that areas of high groundwater and outside shallow flooding areas exist within the Property. It is recommended that Owners consult with a qualified Consulting Professional Engineer licensed in the State of Montana prior to initiating construction of their building(s) in order to determine if groundwater could impact the planned structure and what mitigation actions might be taken. Reference groundwater condition on Sheet 4 of the Plat. ARTICLE VIII INSURANCE; DAMAGE OR DESTRUCTION 8.1 Insurance. The Association shall obtain and maintain the following insurance: (1) A hazard policy insuring all improvements, equipment, and fixtures Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 22 owned by the Association or otherwise defined as Common Areas herein; (2) a comprehensive general liability policy insuring the Association, its agents, the Owners and their respective household members, against liability incident to the ownership or use of any Association owned or maintained real or personal property (in occurrence version form if obtainable); the amount of general liability insurance which the Association shall carry at all times shall be not less than the minimum amounts required by Montana law; (3) workers’ compensation insurance to the extent required by law (or such greater amount as the Board deems necessary); the Association shall obtain a Certificate of Insurance naming it as an additional insured in regard to workers’ compensation claims from any independent contractor who performs any service for the Association, if the receipt of such a certificate is practicable; (4) fidelity bonds or insurance covering officers, directors, and employees that have access to any Association funds; (5) officers and directors liability insurance, to the extent deemed appropriate by the Board in its discretion; (6) flood insurance if located in an area designated by an appropriate governmental agency as a special flood hazard area; and (7) such other insurance as the Board in its discretion considers necessary or advisable. Each Owner appoints the Association or any insurance trustee designated by the Association to act on behalf of the Owners in connection with all insurance matters arising from any insurance policy maintained by the Association, including without limitation, representing the Owners in any proceeding, negotiation, settlement or agreement. Any insurance maintained by the Association shall contain “waiver of subrogation” as to the Association and its officers, directors and Members, the Owners and occupants of the Lots (including Declarant) and cross- liability and severability of interest coverage insuring each insured against liability to each other insured. The Association shall periodically (and not less than once every three years) review all insurance policies maintained by the Association to determine the adequacy of the coverage and to adjust the policies accordingly. All individually owned insurance shall contain a waiver of subrogation as to the Association and its officers, directors and Members, the Owners and occupants of the Lots and mortgagees, and all Members are deemed to have waived subrogation rights as to the Association and/or other Members, whether or not their policies so provide. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 23 Each Owner shall be responsible for obtaining, maintaining and paying for such insurance as the Owner may deem reasonably necessary with respect to fire, casualty and liability involving such Owner’s Lot and all improvements and property thereon. All such individually carried insurance shall contain a waiver of subrogation by the carrier as to the other Owners, the Association, Declarant, and the Mortgagees of such Lot. The Association shall make available to Members upon request copies of the Association’s policies to enable Members to insure their Lots without duplicating insurance carried by the Association. The Association, and its directors and officers, shall have no liability to any Owner or Mortgagee if, after a good faith effort, it is unable to obtain the insurance required hereunder, because the insurance is no longer available or, if available, can be obtained only at a cost that the Board in its sole discretion determines is unreasonable under the circumstances, or the Members fail to approve any Assessment increase needed to fund the insurance premiums. In such event, the Board immediately shall notify each Member and any Mortgagee entitled to notice that the insurance will not be obtained or renewed. 8.2 Damage or Destruction. If any improvements or landscaping on any Lot are damaged or destroyed by fire or other casualty, the Owner of such Lot may repair or reconstruct the improvement only in accordance with the plans and specifications approved by the Association or its representative as provided herein including but not limited to approval by the Committee. In the event that such an Owner elects not to rebuild any structures, said Owner shall be responsible for promptly removing from the Lot any and all debris, including any portion of a structure which may remain standing after partial damage or destruction, and the Owner shall landscape the Lot in the manner approved by the Committee and the Association. If an Owner fails to pay the cost of required demolition or re-landscaping, the Association may elect to pay for the uninsured portion of the cost and shall have the right to assess the Owner for the cost thereof and to enforce the Assessment as provided in this Declaration. If Common Area improvements are damaged or destroyed by fire or other casualty, the Association shall cause the improvements to be repaired or reconstructed substantially in accordance with the original as-built plans and specifications, modified as may be required by applicable building codes and regulations in force at the time of such repair or reconstruction, and subject to such alterations or upgrades as may be approved by the Association. If the Common Area improvement is not promptly repaired or reconstructed in accordance with the foregoing, all available insurance proceeds shall be disbursed among all Owners and their respective mortgagees in the same proportion that the Owners are assessed, subject to the rights of the Owners’ mortgagees, after first applying the proceeds to the cost of mitigating hazardous conditions on the Project, making provision for the continuance of public liability insurance to protect the interests of the Owners until the property can be sold, and complying with all other applicable requirements of governmental agencies. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 24 ARTICLE IX GENERAL PROVISIONS 9.1 Enforcement; No Waiver. Subject to the provisions and requirements of Article X, the Association, or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration, the Articles and the Bylaws, and in such action shall be entitled to recover reasonable attorneys’ fees as are ordered by the Court. The Association has the right to record a Notice of Violation against the Lot of an Owner who is not in compliance with the provisions of the Governing Documents. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. 9.2 Invalidity of Any Provision. Should any provision or portion hereof be declared invalid or in conflict with any law , the validity of all other provisions and portions hereof shall remain unaffected and in full force and effect. 9.3 Term. The covenants and restrictions of this Declaration shall run with the land, and shall inure to the benefit of and shall be enforceable by the Association or the Owner of any property subject to this Declaration, their respective legal representatives, heirs, successors and assigns, for a term of thirty (30) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years, unless an instrument in writing, signed by a majority of the then Owners of the Lots, has been recorded within the year preceding the beginning of each successive period of ten (10) years, agreeing to change said covenants and restrictions in whole or in part, or to terminate the same; provided, however, that the Declaration may not be terminated until such time as the City of Bozeman releases the Association from the obligation to maintain the Common Open Spaces and other facilities installed pursuant to the final plat approvals. 9.4 Limitation of Restrictions on Declarant. Declarant is undertaking the work of construction of improvements upon the Property. The completion of that work is essential to the Lots and development thereof. In order for such improvements to be completed, nothing in this Declaration shall be understood or construed to: A. Prevent Declarant, its contractors, or subcontractors from doing on the Property or any Lot, whatever is reasonably necessary or advisable in connection with the completion of said work to install improvements or otherwise develop the Property; or B. Prevent Declarant or its representatives from erecting, constructing and maintaining, and operating on the Property (except upon Lots owned by others), such structures as may be reasonable and necessary for developing the Property and sale of Lots, including a sales office and design center; or Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 25 C. Prevent Declarant from maintaining or displaying such signs, pennants and flags(s) on the Property (except upon Lots owned by others) as may be necessary for the sale, lease or disposition thereof; or D. Subject Declarant to the architectural control provisions for the construction of any improvement; or E. Prevent Declarant from exercising the following rights: Declarant reserves and shall have the right and easement, both while Declarant is still the Owner of Lots in the Project, to enter upon the Property, and all portions thereof, for purposes of inspecting and correcting any alleged defect in the design or construction of improvements, with Lots owned by others to be restored to the condition as existed prior to any such inspection or correction. The foregoing rights of Declarant shall terminate upon the sale by Declarant of all Lots. Until such time, said rights shall constitute easements reserved by Declarant for the benefit of Declarant and any Lots or property owned by Declarant. So long as Declarant, or its successors and assigns, owns one or more of the Lots described herein, Declarant, or its successors and assigns, shall be subject to the provisions of this Declaration. 9.5 Termination of Any Responsibility of Declarant. In the event Declarant shall convey all of its rights, title and interest in and to the Property and development thereof to any successor Person or entity, then and in such event, Declarant shall be relieved of the performance of any further duty or obligation hereunder, and such successor Person or entity shall be obligated to perform all such duties and obligations of the Declarant. 9.6 Owners’ Compliance. Each Owner, tenant or occupant of a Lot shall comply with the provisions of this Declaration, and (to the extent they are not in conflict with the Declaration) the Articles, Bylaws and Rules, and the decisions and resolutions of the Association or the Board, as lawfully amended from time to time. Failure to comply with any such provisions, decisions, or resolutions shall be grounds for an action (1) to recover sums due, (2) for damages, (3) for injunctive relief, (4) for costs and attorney fees, or (5) any combination of the foregoing. In the event of a violation of the Governing Documents, the Association may record a Notice of Violation against the Lot of the non-complying Owner. Upon recording a Notice of Violation, the Association shall have complete discretion in deciding whether, when and how to proceed with enforcement, and any delay after recording a Notice of Violation shall not give rise to a defense of waiver or estoppel in favor of a noncomplying Owner. The Association may take action to enforce compliance against a subsequent Owner who acquires a Lot with a recorded Notice of Violation. The right of the Association to record a Notice of Violation shall be in addition to all other rights and remedies the Association may have at law or under the Governing Documents. All agreements and Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 26 determinations lawfully made by the Association in accordance with the voting percentages established in this Declaration, or in the Articles or the Bylaws, shall be deemed to be binding on all Owners, their successors and assigns. 9.7 Notice. Any notice permitted or required by the Declaration, Articles or Bylaws, whether or not such section requiring the notice so states, may be delivered personally, by mail, or by electronic means if such electronic means and methods are in accordance with the Montana Nonprofit Corporation Act. If delivery is by mail, it shall be deemed to have been delivered seventy-two (72) hours after a copy of the same has been deposited in the United States mail, first class or registered, postage prepaid, addressed to the person to be notified at the current address given by such person to the Secretary of the Board or addressed to the Lot of such person if no address has been given to the Secretary. 9.8 No Discrimination. No Owner shall, either directly or indirectly, restrict the conveyance, encumbrance, leasing, or mortgaging, or occupancy of Owner’s Lot to any person of a specified race, sex, adulthood, marital status, color, religion, ancestry, physical handicap, sexual orientation, or national origin. 9.9 Alternative Dispute Resolution. Alternative dispute resolution procedures shall be applicable and implemented as provided in Article XI hereof. 9.10 Number; Gender. The singular and plural number and the masculine, feminine and neuter gender shall each include the other where the context requires. 9.11 Captions. The Captions and headings herein are for convenience only and shall not be used to limit or expand the terms or provisions hereof. 9.12 Exhibits. All Exhibits are deemed incorporated herein by reference as though set forth in full. 9.13 Compliance with FHA, VA, FHLMC or FNMA Requirements. If Declarant chooses a financing program that involves Mortgage insurance issued by a government agency such as the FHA or VA, or involves first Mortgage sales to an agency such as FHLMC or FNMA, the Association, the Board and each Owner shall take reasonable steps to satisfy the requirements of such program and/or agency including, without limitation, initiating and completing amendments to the Governing Documents. 9.14 Power of Attorney. Each Owner hereby appoints the Declarant as Owner’s attorney-in-fact, and grants the Declarant all necessary authority so that the Declarant may file any amendment authorized by the process described herein. ARTICLE X ENFORCEMENT Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 27 10.1 Priority and Defined Terms. The terms and provisions of this Article shall have priority over and supersede any inconsistent terms or provisions contained in any other Articles or portions of this Declaration. The defined (initially capitalized) terms contained in this Article shall be in addition to defined terms set forth in Article I hereof. 10.2 Enforcement and Non-waiver. The Declarant, Association or any Owner shall have a right of action against any Owner, and any Owner shall have a right of action against the Association, to enforce by proceedings at law or in equity, all restrictions, conditions, covenants and reservations, now or hereafter imposed by the provisions of the Governing Documents or any amendment thereto, including the right to prevent the violation of such restrictions, conditions, covenants, or reservations and the right to recover damages or other dues for such violation except that Owners shall not have any right of enforcement concerning liens for Assessments. The Association shall have the exclusive right to the enforcement of provisions relating to architectural control and the Rules, unless the Association refuses or is unable to effectuate such enforcement, in which case any Owner who otherwise has standing shall have the right to undertake such enforcement. Failure of the Association, Declarant or any Owner to enforce any covenants or restrictions herein contained shall in no event be deemed a waiver of the right to do so thereafter. 10.3 Mediation. The Declarant, Association or any Owner agree to first attempt to settle any dispute, claim or controversy arising out of or relating to this Agreement, by mediation, and taking into consideration the recommendation(s) of a licensed registered engineer or other applicable professional, prior to initiation of legal proceedings. The Parties further agree that there is no requirement to reach a settlement in mediation, however, agree that if a settlement is reached during mediation, such settlement shall be reduced to writing and shall be binding upon the Parties, their heirs, executors, administrators, successors and assigns. ARTICLE XI SPECIAL DECLARANT RIGHTS 11.1 Special Declarant Rights. Declarant reserves the following Declarant Rights during the Development Period (“Special Declarant Rights”): A. To complete any improvements indicated on plat maps or development plans filed with the Declaration or otherwise a part of the preliminary plat approval granted by the City of Bozeman as may be amended from time to time; B. To maintain sales offices, management offices, and signs advertising on the Property as set forth in section 12.3; C. To merge or consolidate the Association with another common interest community of the same form of ownership or make it subject to a master association; Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 28 D. To operate a sale or rental office on site after all the Lots have been developed, sold and completed; and E. To exercise any rights granted to the Declarant by these Covenants. Notwithstanding the foregoing, the Declarant’s exercise of the Special Declarant Rights shall not interfere with any Owner’s beneficial use of such Owner’s Lot. Owners acknowledge that temporary interference with access, noise, dust, and the like may result from Declarant’s improvements or construction, provided such temporary interference does not unreasonably restrict access to such Owner’s Lot. 11.2 Transfer of Special Declarant Rights. A. Assignment. Any or all Special Declarant Rights identified in this section, Development Rights, or any of the other special rights and obligations of Declarant set forth in this Declaration or the Bylaws may be assigned in whole or in part to other Persons, provided that the assignment shall not reduce an obligation nor enlarge a right beyond that which Declarant has under this Declaration or the Bylaws. No such assignment shall be effective unless it is in a written instrument signed by Declarant and duly recorded as a public record in the Office of the Clerk and Recorder of Gallatin County. B. Transfer. Any or all Special Declarant Rights identified in this section, Development Rights, or any of the other special rights and obligations of Declarant set forth in this Declaration or the Bylaws may be transferred in whole or in part to other Persons, provided that the transfer shall not reduce an obligation nor enlarge a right beyond that which Declarant has under this Declaration or the Bylaws. No such transfer shall be effective unless it is in a written instrument signed by Declarant and duly recorded as a public record in the Office of the Clerk and Recorder of Gallatin County. 11.3 Models, Sales Offices and Management Offices. During the Development Period, Declarant may maintain and carry on upon any Lot owned by Declarant such facilities and activities as, in the sole opinion of the Declarant, may be reasonably required, convenient, or incidental to the sale of Lots and construction of Units on the Lots, including, but not limited to, business offices, signs, model units, marketing trails, and sales offices. Declarant shall have easements for access to and use of such facilities. 11.4 Other Covenants Prohibited. During the Development Period, no Person shall record any declaration of covenants, conditions and restrictions, or similar instrument affecting any portion of the Property without Declarant’s review and written consent. Any attempted recordation without such consent shall result in such instrument being void and of no force and effect unless subsequently approved by written consent signed by Declarant and recorded as a public record in the Office of the Clerk and Recorder of Gallatin County. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 29 11.5 Master Planned Community. Each Owner, by accepting title to a Lot and becoming an Owner, and each other Person, by acquiring any interest in the Lots, acknowledges awareness that the Property is planned to be a master planned community, the development of which is likely to extend over many years, and agrees not to protest or otherwise object to changes in any conceptual or master plan or other approved plats or plans on the Property. 11.6 Equal Treatment. So long as Declarant owns any property described in Exhibit A, the Association shall not, without prior written consent of Declarant, adopt any policy, rule or procedure that amends or eliminates any of the rights reserved by the Declarant. ARTICLE XII AMENDMENT, ANNEXATION, AND WITHDRAWAL 12.1 Amendment by Declarant. During the Development Period, Declarant may from time to time unilaterally, and without consent of the Owners, amend this Declaration for any purpose, including but not limited to amendment: (i) necessary to bring any provision in compliance with any applicable governmental statutes, necessary governmental registrations, rule, regulation, or judicial determination; (ii) necessary to enable any reputable title insurance company to issue title insurance coverage on the Lots; (iii) required by an institutional or governmental lender or purchaser or mortgage loans, including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase mortgage loans on the Lots; (iv) necessary to enable any governmental agency or reputable private insurance company to insure mortgage loans on the Lots or to insure the Project or any portion thereof, including any individual Lot; (v) necessary to allow the Association to obtain insurance contemplated by this Declaration, including without limitation, property or liability insurance, at a reasonable price and on reasonable terms; (vi) otherwise necessary to satisfy the requirements of any governmental or quasi- governmental agency; (vii) necessitated in conjunction with the development of the Commercial Development of the Property. 12.2 Amendment by Owners. After the Development Period, this Declaration may be amended by: (a) the affirmative vote or written consent or by proxy, or any combination thereof, of a majority of the voting interests of the Members entitled to vote; and (b) the written consent of the Declarant, so long as it owns at least one Lot, provided, however, that the Declaration may not be amended in any manner which would place it out of compliance with the Bozeman Municipal Code, as may be amended from time to time. To be effective, any amendment must be certified in a writing executed and acknowledged by the Association Board President or Vice President and recorded with the office of the Clerk and Recorder of Gallatin County, Montana. No amendment may remove, revoke, or modify any right or privilege of the Declarant without the written consent of the Declarant. No amendment shall adversely affect the rights of the holder of any Mortgage of record prior to the recordation of such amendment. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 30 12.3 Owner Authority. If an Owner consents to any amendment of this Declaration, it will be conclusively presumed that such Owner has the authority to consent, and no contrary provision in any mortgage or contract between the Owner and a third party will affect the validity of such amendment. 12.4 Withdrawal During the Development Period. Declarant may from time to time unilaterally amend this Declaration for the purpose of removing property then owned by Declarant or its affiliates from the coverage of this Declaration. Any property removed from this Declaration shall be subject to whatever easements, if any, are reasonably necessary for access to or operation of the Subdivision and each Lot. Any amendment pursuant to this paragraph shall not require the consent of the Owners or the Board of Directors. 12.5 Plat Amendment. During the Development Period, Declarant may unilaterally amend the plat without the additional consent of any Owner or the Board of Directors; provided, however, that nothing in this paragraph allows Declarant to replat the property underlying any building or structure (i.e., change a boundary line or platted easement under a building or structure) or Lot owned by another without the consent of the Owner of such building or structure or Lot. 12.6 Merger or Consolidation. During the Development Period, Declarant may merge or consolidate the Association with a property owners association of the same form of ownership, or with the Commercial Development owners’ association. Upon written request from Declarant during the Development Period, the Board of Directors and each Lot Owner shall execute such documents and take such actions as shall reasonably be requested by Declarant to approve and effect any such merger or consolidation. 12.7 Agreement Regarding Amendments. The Lot Owners, the Association, lien holders, mortgagees, and all others acquiring any interest in or lien on the Lots, or any other portion of the subdivision shall be bound by the rights of Declarant to amend and supplement this Declaration and the plat of the Property as set forth in this Declaration, including, without limitation, in connection with any annexation of Annexed Property or removal of property from this Declaration, and their consent to such amendments and supplements is implied and agreed to by the acceptance or acquisition of any interest in or lien on the Lots, or any other portion of the subdivision. Declarant is hereby appointed the Lot Owners', the Association's, lien holders', and mortgagees' agent and attorney- in-fact to execute and record such amendments, supplements, and related documents. 12.8 Dissolution; Boundaries. The permission of the city commission is required before the association can be dissolved or the boundaries altered. ARTICLE XIII REQUIREMENTS OF CITY OF BOZEMAN Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 31 The following conditions have been imposed on the Project by the City of Bozeman and shall not be amended or revoked without the consent of the Owner in accordance with the amendment procedures of this Declaration, and the City Commission. 13.1 Noxious Weeds. 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 required by the Montana Noxious Weed Control Act (§ 7-22- 2101, MCA through § 7-22-2153, MCA as amended) and the rules, regulations and management plans of the Gallatin County Weed District. Both unimproved and improved Lots shall be managed for noxious weeds. In the event an Owner does not control the noxious weeds after 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 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 of the Gallatin County Weed District Management Plan. 13.2 Agricultural Use of Neighboring Properties. Property Owners of the Subdivision are informed that adjacent and nearby uses may be agricultural. Property Owners accept and are aware that standard agricultural and farming practices can result in smoke, dust, animal odors, flies and machinery noise. Standard agricultural practices feature the use of heavy equipment, burning, chemical sprays and the use of machinery early in the morning and sometimes late into the evening. All fences bordering agricultural lands must be maintained by the Association and/or applicable Owner(s) in accordance with MCA Title 70 Chapter 16 Part 2, Title 81 Chapter 4 Part 1, or other relevant state law. 13.3 High Groundwater Area. This is a known area of high groundwater. No crawl spaces or basements will be permitted with future development of the site unless a professional engineer registered in the State of Montana certifies that the lowest point of any proposed structure is located above the seasonal high groundwater level and provides supporting groundwater data prior to release of building permit. In addition, sump pumps are not allowed to be connected to the sanitary sewer system. Sump pumps are not allowed to be connected to the drainage system unless capacity is designed into the drainage system to accept the pumped water. Water from sump pumps may not be discharged into streets, such as into the curb and gutter where they create a safety hazard for pedestrians and vehicles. 13.4 Stormwater Facilities Maintenance. Stormwater facilities shall be maintained as required by the Bozeman Municipal Code, chapter 40 article 4, or other relevant City code provision. The maintenance of all storm water facilities outside the public right-of-way is the responsibility of the Association. The Association does not maintain stormwater facilities draining solely the Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 32 Residential Development, the Commercial Development, or Restricted Lot 1, which, unless otherwise set forth in writing between the applicable Owner(s) and/or the Sub-Association, must be located entirely within the Residential Development, the Commercial Development, or Restricted Lot 1 and maintained by the applicable Owner(s) or separate Sub-Association or Sub-Associations. The approved stormwater plan for the stormwater facilities maintained by the Association is incorporated herein as Exhibit C. 13.5 Landscaping and Irrigation Requirements. Landscaping and irrigation requirements must comply with the Bozeman Municipal Code and the most recent version of the City of Bozeman Landscape and Irrigation Performance and Design Standards Manual 13.6 Amendments. Any covenant which is required as a condition of the preliminary plat approval or other development 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. 13.7 Common Area and Facility Maintenance Guarantee and Process. In the event the Association, or any Sub-Association if applicable, at any time fails to maintain the common areas or facilities in reasonable order and condition in accordance with the approved plan, the City may cause written notice to be served upon such Association or upon the owners of property in the development. The written notice must set forth the manner in which the common areas or facilities have failed to be maintained in reasonable condition. In addition, the notice must include the demand that the deficiencies noted be cured within 30 days thereafter and must state the date and place of a public meeting to be held within 14 days of the notice. At the time of public meeting, the City Commission may modify the terms of the original notice as to deficiencies and may extend the time within which the same may be cured. If the deficiencies set forth in the original notice or modifications are not cured within the time set, the City may enter upon such common facilities and maintain the same for a period of one year, in order to preserve the taxable values of properties within the development and to prevent the common facilities from becoming a public nuisance. Such entry and maintenance must not vest in the public any right to use the common facilities not dedicated to public use. Before the one year period expires, the City Commission must, upon its own initiative or upon written request of the Association, call a public meeting and give notice of such meeting to the Association or the property owners' of the development. At the meeting, the Association and/or the residents of the development may show cause why maintenance by the City should not be continued for a succeeding year. If the City Commission determines that it is not necessary for the City to continue such maintenance, the City must cease such maintenance at the time established by the City Commission. Otherwise, the City must continue maintenance for the next succeeding year subject to a similar meeting and determination at the end of each year thereafter. A. The cost of maintenance by the City must be a lien against the common facilities of the development and the private properties within the development. The City Commission must have the right to make assessments against properties in the Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 33 development on the same basis as the Association as provided herein. Any unpaid assessment must be a lien against the property responsible for the same, enforceable the same as a mortgage against such property. The City may further foreclose its lien on the common facility by certifying the same to the county treasurer for collection as in the case of collection of general property taxes. B. Should the Association request that the City assume permanent responsibility for maintenance of facilities, all facilities must be brought to City standards prior to the City assuming responsibility. The assumption of responsibility must be by action of the City commission and all costs to bring facilities to city standards must be the responsibility of the Association. The City may create special financing mechanisms so that those properties within the area affected by the Association continue to bear the costs of maintenance. C. The City must assume permanent responsibility for maintenance of public areas and facilities when a dedicated funding mechanism is adopted. ARTICLE XIV MISCELLANEOUS 14.1 Severability. Invalidation of any one of these covenants or restrictions shall in no way affect any other provisions which shall remain in full force and effect. 14.2 Benefit. Except as otherwise provided herein, this Declaration shall be binding upon and shall inure to the benefit of Declarant, the Association, and each Lot Owner, and the heirs, estates, personal representatives, successors, and assigns of each. 14.3 Warranties. Declarant does not make any, and expressly disclaims all, warranties or representations concerning the Property, the Lots, the Declaration, or deeds of conveyance except as specifically set forth therein and no one may rely upon such warranty or representation not so specifically expressed therein. 14.4 Taxation. Each Lot shall be considered a separate parcel of real property and shall be separately assessed and taxed. 14.5 Notices. All notices required or permitted to be given or delivered under this Declaration shall be deemed to have been given or delivered when either: (a) deposited in the certified United States mail, postage pre-paid to the addresses provided in Paragraph 3.1, rejection or refusal to accept or inability to deliver due to changed address of which no notice was given shall be deemed receipt; or (b) delivered personally to a director of the Association, Declarant, or a Lot Owner. Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 34 14.6 Conflicts. In the event that there is any conflict or inconsistency between or among the provisions of Montana law, this Declaration, and any Rules and Regulations promulgated hereunder, the provisions of Montana law, the Declaration, and the Rules and Regulations (in that order) shall prevail. 14.7 Limitation of Liability. Notwithstanding anything to the contrary contained in this Declaration, any liability or claims against the Declarant shall, except in connection with any express written warranty of Declarant, be strictly limited to Declarant's then-existing interest in the Property, and in no event shall any recovery or judgment be sought against any of Declarant's other assets (if any) or against any of Declarant's or its affiliates' owners, managers, members, partners (or their constituent members or partners), or any manager, director, officer, employee, or shareholder of any of the foregoing. Further, in no event shall any claimant be entitled to seek or obtain any special, consequential, indirect, treble (or other multiplier), or punitive damages. 14.8 Governing Law. This Declaration shall be governed and interpreted in accordance with the laws of the State of Montana. 14.9 No Subdivision of Lots. No Lot shall be subdivided, partitioned, aggregated, or be subject to a boundary line adjustment without the prior written consent of the Declarant during the Development Period and thereafter the Association. No private covenants and no Condominium Association shall be created, and no amendment of any governing document of any Condominium Association shall be effective without the prior written consent of the Declarant during the Declarant Control period, and thereafter the Association. All lot applications must meet UDC and State Statutes. Nothing in this paragraph shall be construed to restrict or limit the Declarant's right to partition, aggregate, or subdivide any existing Lot, subject to the approval of the Bozeman City Commission. 14.10 Attorneys' Fees. In the event that any action or proceeding is brought for the enforcement of this Declaration or as the result of any alleged breach, the prevailing party or parties shall be entitled to be paid all associated costs, including reasonable attorneys' fees by the losing party or parties. In addition, the prevailing party or parties shall be entitled to recover all fees, costs, and expenses incurred in connection with such action or proceeding, including without limitation, any post-judgment fees, costs or expenses incurred on any appeal or in collection of any judgment, and any judgment or decree rendered shall include the same in the award. [SIGNATURE PAGE FOLLOWS] Declaration of CC&Rs and Reservations of Easements South Range Crossing II Subdivision Page 35 IN WITNESS WHEREOF, Declarant has executed this Declaration this day of , 2024. DECLARANT: SRX II LLC By: Bryan Klein, Manager STATE OF Montana ) :ss COUNTY OF Gallatin ) This instrument was acknowledged before me on , by Bryan Klein as the managing member of Providence Development Group LLC, a Montana limited liability company. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. Notary Signature Declaration of CC&Rs and Reservations of Easements South Range Crossing Subdivision Page 36 EXHIBIT A Legal Descriptions “Property” “Residential Development” “Commercial Development” NOTE: To be updated with final plat descriptions. “Property” South Range Crossing II Subdivision being Block 2 of Yellowstone Theological Institute Minor Subdivision No. 494 Located in the Northwest and Southwest ¼ of Section 24, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana “Residential Development” – Block 2 as shown on the Final Plat for South Range Crossing II Subdivision, Bozeman, Gallatin County, Montana recorded as document number ______________in the records of the Gallatin County Clerk and Recorder. “Commercial Development” – Block 1 as shown on the Final Plat for South Range Crossing II Subdivision, Bozeman, Gallatin County, Montana recorded as document number ______________in the records of the Gallatin County Clerk and Recorder. “Restricted Lot 1” as shown on the Final Plat for South Range Crossing II Subdivision, Bozeman, Gallatin County, Montana recorded as document number ______________in the records of the Gallatin County Clerk and Recorder. Declaration of CC&Rs and Reservations of Easements South Range Crossing Subdivision Page 37 EXHIBIT B Design Regulations and Guidelines Declaration of CC&Rs and Reservations of Easements South Range Crossing Subdivision Page 38 EXHIBIT C Stormwater Maintenance Plan