Summit Village

ARTICLE IV 
ASSOCIATION

            Section 4.1      The powers, rights and duties of the Association are as follows and may be adopted in the Articles of Incorporation, By-Laws Covenants, Conditions and Restrictions and reasonable regulations by the Association Board. When same are not in conflict within this Declaration, then they may expand and contain additional rights, powers and duties for and on behalf of the Association.

            Section 4.2      The Association is a non-profit Nevada Corporation. It was created by Articles of Incorporation, filed with the office of the Secretary of State, State of Nevada, on March 17, 1968, and amended June 9, 1988. The Articles of Incorporation and the Covenants, Conditions and Restrictions governing the Association shall be available for inspection during regular office hours in the office of the Association Manager and/or the principal place of business of the Association.

            Section 4.3      The Association shall be governed by a Board of Directors which shall consist of five (5) duly qualified and elected members of the Board. A majority of the Board may take any action on behalf of the Association pursuant to these Covenants, Conditions and Restrictions, the By-Laws and the Laws of the State of Nevada as they exist or are amended.

(A)   In the case of death, resignation or incapacity or any failure of any member or members of the Board, the remaining member or members shall fill any vacancy or vacancies by appointment of a member of the Association to serve on the Board. Such appointed member shall serve until the next general election, at which time the members of the Association shall elect a Board member to fill said vacancy or vacancies. The Board shall have the power to establish and amend its rules and regulations with regard to meetings, quorum and other procedural matters pursuant to the Articles of Incorporation, the By-Laws, or these Covenants, Conditions and Restrictions.

(B)  Board members must be residence unit owners or residence lot owners.

Section 4.4

(A)  There shall be one type of membership. Ownership of a residence lot or a residence unit shall be the sole qualification for membership.

(B)  The owner of each residence lot shall assign to such residence lot one membership, which shall be appurtenant to such residence lot. Upon development of each residence lot, a membership shall then be assigned to each residence unit. No membership shall be severed to separated from a residence lot or residence unit, and any sale, transfer, or conveyance of a residence lot or residence unit shall operate to transfer the appurtenant membership without the requirement of express reference thereto.

(C)  No owner may avoid the burdens or obligations incidental to membership by non-use of the common area or abandonment of his residence lot or residence unit or by failing to develop the residence lot into a residence unit.

(D)  Upon conveyance, sale or assignment of a residence lot or residence unit to a new owner or owners, the selling owner or owners shall not be liable for any assessments levied upon the membership in the Association appurtenant to such residence lot or residence unit, after the date of such sale. However, the new owner will be responsible for all future assessments as of the day he takes title of the property.

(E)   The rights, duties, privileges and obligations incidental to membership in the Association shall be exercised and imposed in accordance with the provisions of these Restrictions, the Articles and the By-Laws. Each membership shall represent an equal, underlying beneficial interest in the Association's property.

(F)   Only one membership shall be allowed for each residence unit, regardless of the nature, status or number of separate owners of such residence lot or residence unit.

(G)  There shall be one vote for each existing membership. Ineligibility to vote includes the failure of a member to pay the assessments of the Association after notice to the member to pay has been sent according to these restrictions. Delinquency in payment or failure to pay will be construed to mean failure to pay any assessment by a member prior to the end of the assessment period to which the billing applies.

(H)  No membership may be separated from the property to which it is appurtenant, provided, however, that the privileges of ownership may be exercised by a nominee of an owner designated in writing so long as:

(1)  the nominee is a resident on the property to which the membership is appurtenant, or holds a written proxy from the owner allowing the nominee to exercise the owner's privileges of ownership; and

(2)  no change is made for use of the membership in excess of the amount of any assessments levied against the owner by reason thereof; and

(3)  any such assignment of privileges is revocable at the will of the owner.

(I)    The designation of a nominee shall in no way relieve the owner of a membership from any liability arising by reason thereof. Nothing herein contained shall be deemed to prohibit use of Association facilities by guests or other persons pursuant to reasonable rules and regulations adopted by the Board.

Section 4.5      The Association shall hold title in fee or in permanent easement to parking areas, open spaces, parkways, rights of way, and areas that may be designated as common area as may be acquired by it or set aside and maintained for the use, enjoyment or convenience of residence lot owners. The Board may adopt reasonable Rules and Regulations regarding use and enjoyment of such areas.

Section 4.6      The Association shall maintain and otherwise manage and administrate the landscaping, parking areas, open spaces, common area and recreation facilities located upon the areas described in Section 4.5, above.

Section 4.7     

(A)  Each member shall be subject to an assessment in an amount to be determined by the Board of Directors. The annual assessment may not increase more than 10% over the previous year's level of assessment without a simple majority vote of the membership; provided, however, that each member with an unimproved residence lot shall not be assessed in an amount of more than 50% of a member owning an improved residence lot on which a dwelling or any part thereof is located or which is used ancillary to an existing dwelling.

(B)  Such assessment shall be for the following purposes and shall not be levied in an amount more than is necessary or reasonable for such purposes together with a reasonable reserve for future expenses:

(1)  repair and maintenance of all common area and any taxes or other charges required by Section 4.7 above;

(2)  actual costs to the Association of such recreational facilities as may from time to time be provided by the Association;

(3)  liability, fire and other necessary insurance of not less than $1,000,000 for any occurrence and $1,000,000 to any person for bodily injury, and $1,000,000 property damage by fire, other than forest fire, vandalism, malicious mischief, and other such hazards as the Board may determine. The disposition of insurance proceeds shall be made upon a majority vote of the Board, but in all events, shall be used to further the purposes of the Association;

(4)  and such sums as the Board shall determine to be necessary to carry on the purposes of the Association and implement its Rules and Regulations, subject to the limitations set forth herein, or in the Articles or By-Laws of the Association.

Section 4.8    

(A)  Within thirty (30) days prior to the beginning of each fiscal year, the Association's Board shall estimate the budget for such year pursuant to the terms hereof, including a reasonable provision for contingencies and replacements, and less any expected income from the prior year's ending fund balance. An "Estimated Cash Requirement" shall be assessed to each member on a pro rata basis as set forth herein. Each member shall be obligated to pay, in advance, assessments made pursuant to this section to the Association. Said assessment will be due semi-annually on January 1 and July 1 of each year. The first payment will be made at the close of sale escrow on a pro rata basis.

(B)  If said estimated sum proves inadequate for any reason, including nonpayment of any members' assessment, the Board may, at any time, levy a further assessment, not to exceed 10% percent of the total adopted annual budget. Any assessment proposed by the Board greater than 10% percent of the total adopted annual budget, shall be levied only with a simple majority membership vote and approval by same. All assessments levied pursuant to this section shall be assessed to all members in like proportions. Each member shall be obligated to pay assessments made pursuant to this section to the Association in equal semi-annual installments, on or before the first day of each July and January during such year, or in such other manner as the Board shall designate.

(C)  All funds collected hereunder shall be expended only for the purposes set forth in these Restrictions and purposes incidental thereto. No member may waive or otherwise escape liability for the assessments provided for herein by non-use of common area, or abandonment of his or her residence lot.

(D)  Such assessments as may be fixed may be included with other trust funds or impounds collected by the County Treasurer in connection with County or State taxes and assessments, which may be assessed, and which the owner must pay pursuant to Article VIII, "State, county and Association Taxes and Assessments".

(E)   IMPROVEMENT ASSESSMENTS

Upon approval by vote or written consent by members holding a simple majority of the votes entitled to be cast of a proposed capital improvement, the Board shall estimate total cost and such estimated total cost shall be assessed to all members in proportion to their voting rights as a capital improvement assessment.

This shall not include the following:

(A)  Any capital improvement whose estimated total cost of Twenty Thousand Dollars ($20,000) or less, to be adjusted yearly to reflect CPI;

(B)  Any capital improvement, regardless of the total estimated cost, which is for the replacement of any then-existing improvement or equipment including but not limited to vehicles, parking areas, etc. Capital improvement and additional assessments shall be due and payable by all owners in such installments and during such period or periods as the Board shall designate.

Section 4.9      The Association shall also have the authority, through the Board, to establish, fix, and levy a special assessment on any parcel of land and any residence lot and any residence unit, in said subdivision to secure the liability of the owner thereof to the Association arising from breach by such owner of any of the provisions of this Declaration, which breach shall require the expenditure of time or money, or both, by the Association for repair or remedy. Such assessment shall be collected as is provided herein, and shall constitute a lien against the property of the owner.

Section 4.10   

(A)  Each residence unit and residence lot shall be subject to a lien to secure all assessments levied.

(B)  No lien shall be filed until the member has been given fifteen (15) days' written notice, and opportunity to pay each assessment.

(C)  Each member agrees that the Association may enforce the lien by appropriate legal action, and that the member will be liable for all expenses, including costs of recording, collection costs, reasonable attorney fees, and court costs.

(D)  An administrative fee will be charged on all properties as title changes hands.

(E)   A lien may be enforced by court foreclosure sale or by a non-judicial sale conducted in accordance with the provisions relating to a sale by trust deed foreclosure under the appropriate provisions of the Nevada Revised Statutes. In lieu of a foreclosure sale as set forth above, the Association may enforce its lien by any remedy allowed by law and/or may waive its lien and hold the owner personally liable.

Section 4.11

(A)  Each member shall be obligated to maintain his residence unit or lot and all improvements thereon in a manner acceptable to the board of the Association. In the event that any member fails to do so, then the Association shall have the right to enter such premises and make such repairs as may be reasonably necessary, and the cost thereof shall be a special assessment lien against such member's lot or residence unit. Each member shall also maintain in a manner acceptable to the board all walkways, driveways, sidewalks, wooden parking decks, or paths used for ingress and egress to a lot, individual or in common, and the expenses of maintenance, including snow removal, shall be the sole expense of the owner.

(B)  If the owner or owners do not maintain in ingress or egress in a manner acceptable to the Board, the Board will notify the owner or owners, in writing, that it will take whatever action is necessary to remedy the situation, including notifying the Douglas County Building Department, or any other governmental agency.

Section 4.12

(A)  In the event of damage to a residence lot, or improvements thereon or easements thereto, or to a residence unit which shall impair or mar the general appearance thereof, the owner shall forthwith make all necessary repairs or improvements to restore the residence lot or residence unit or easements thereto in a manner which shall be compatible with the overall subdivision. If a fire or other damage has destroyed improvements to the extent that the owner does not desire to rebuild them, the owner shall nevertheless immediately restore and clear damaged improvements of property from the residence lot, resorting it as nearly as possible to its natural state.

(B)  Each owner of a residence lot, or improvements thereon or easements thereto, or residence unit shall maintain insurance on said lot or unit equal to the value of the lot and any improvements thereon, insuring against fire or other damage which may impair or mar or destroy said residence lot or residence unit. Proof of said insurance in an amount satisfactory to the Board shall be provided to the Board at the Board's request. Failure to maintain said insurance may, at the Board's discretion, constitute grounds for the revocation of any right or privilege of these Covenants, Conditions and Restrictions, the By-Laws or the Articles of Incorporation. Further, the Board may take whatever action is deemed best in its judgement to enforce the provision of this section.

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