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HomeMy WebLinkAboutORDINANCE - 2280 - 12/8/1992 - SPECIAL USE/REGENCY SQUARENO. 2280 AN ORDINANCE AMENDING A SPECIAL USE PERMIT FOR THE REGENCY SQUARE DEVELOPMENT (MEADOW GROVE APARTMENTS PORTION) TO PERMIT A PLAT OF SUBDIVISION CREATING FIFTEEN (15) SEPARATE LOTS, INDIVIDUAL OWNERSHIP OF FOURTEEN (14) OF SAID LOTS AND GRANTING SUBDIVISION VARIATIONS WITH RESPECT TO PUBLIC ACCESS AND WATER USAGE WHEREAS, the Petitioner American National Bank and Trust Com- pany of Chicago as Trustee under Trust Agreement dated June 8, 1992 and known as Trust Number 115634-00 and Meadow Mart Limited Partner- ship (herein collectively referred to as "Owners") have filed a Petition with the Village requesting an amendment to a Special Use Permit previously granted pursuant to Ordinance No. 1195 to permit the filing of a revised Plat of Subdivision of fifteen (15) lots and individual ownership thereof; and WHEREAS, the Plan Commission of the Village of Elk Grove Village at a public meeting duly called and held according to law considered the question of the amendment to the Special Use Permit as well as the request for approval of the Plat of Subdivision; and WHEREAS, the property was formerly developed and known as The Regency Square Apartment Complex of which the subject property is a portion thereof, said property being fully developed under the previous Special Use Permit; and WHEREAS, the amendments requested would permit individual ownership of six (6) unit portions of buildings, which buildings will be separate lots under a Revised Plat of Subdivision; and WHEREAS, the President and Board of Trustees of the Village after having reviewed the recommendation and findings of said Plan Commission find and believe it to be in the best interest of the Village that the Special Use Permit be amended as requested and that the Plat of Subdivision be approved by the Village. NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, Illinois as follows: Section l: That the Special Use Permit previously issued for the subject property and adjacent property be amended with respect to that portion of the subject property identified as Meadow Grove Apartments to permit the creation of fifteen (15) separate lots, fourteen (14) of which will be privately owned and one (1) to be owned by a homeowners association to be hereinafter established by the Owner. Section 2: That the Village hereby acknowledges and approves the Declaration of Covenants, Conditions, Easements, Restrictions and Party Wall Rights for the Meadow Grove Apartments a copy of said Declaration of Covenants being on file in the office of the Village Clerk. Section 3: That variations of Section 8-12 B-1-lAl of the Municipal Code pertaining to convenient access from public streets to private property being subdivided and Sections 8-12 B -1-2D5 -2- and 7-2-3-D of the Municipal Code pertaining to separate water service lines and shutoff valves be granted to permit the property to be subdivided as currently developed. Section 4: That the President and Board of Trustees hereby approve the Plat of Subdivision for Meadow Grove Apartments copies of which are on file in the office of the Village Clerk and the Village Clerk is hereby directed to cause the recording of said Plat of Subdivision. Section 5: That as a condition of the amendment to the Spe- cial Use Permit, the Owner shall make all necessary repairs to the access driveways and parking areas of the subject property. Section 6: That this Ordinance be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 8th day of December 1992. APPROVED this 8th day of December , 1992. ATTEST: Patricia S. Smith VILLAGE CLERK -3- APPROVED: Charles J. Zettek VILLAGE PRESIDENT ..s ,IGJ V DEC 9i DECLARATION OF COVENANTS CONDITIONS EASEMENTS, RESTRICTIONS AND PARTY WALL RIGHTS^.is�;'S �`:' FOR MEADOW GROVE OWNERS ASSOCIATION THIS DECLARATION OF COVENANTS, CONDITIONS, EASEMENTS, JICTIONS ANP PAR W RI S (this "Declaration") made this day of aGfM► , 19iby American National Bank and Trust ompany of Chicago, not personally but as Trustee under Trust Agreement dated June 8, 1992, and known as Trust Number 115634-00 (hereinafter referred to as "Declarant"). W I T N E S S E T H: WHEREAS, Declarant is the record owner and Meadow -Mart Limited Partnership, an Illinois limited partnership ("Developer"), is the beneficiary of the above described land trust holding title to the real estate legally described on Exhibit "A" attached hereto and made a part hereof, and situated in Cook County, Illinois (the "Property") which Declarant wishes to submit to the provisions of this Declaration; and WHEREAS, the Property is developed with apartment buildings, private streets, driveways, parking area, landscaping, paved walkways and other common facilities and improvements; and WHEREAS, Developer has formed or shall form an Illinois not-for- -profit corporation known as Meadow Grove Owners Association for the purpose of maintaining and administering those portions of the Property containing the private streets, driveways, parking areas, paved walkways, private sanitary, storm and potable water mains and appurtenances, landscaping (including all landscaping and paved walkways within those portions of the Property conveyed by Declarant with any Six -Flat Parcel (as hereinafter defined), all of which shall be for the common use, benefit and enjoyment of all residents of the Property, to acquire from Declarant and own a portion of said Property, and for the other purposes hereinafter set forth. In addition to the foregoing, the Association shall maintain the painting of the exterior of the Buildings; roof, downspout, gutter and exterior window repair and replacement, and shall be responsible for payment of all water bills issued by the Village with respect to all Buildings, Six -Flat Parcels and the Common Area on the Property. NOW THEREFORE, Declarant, as Trustee as aforesaid and not individually, as the legal titleholder of the Property, hereby declares that all of the Property shall be held, sold, and conveyed subject to the following covenants, conditions, easements and restrictions, all of which shall run with the Property and be binding on all parties having or acquiring any right, title or interest in the Property or any part thereof, and shall inure to the benefit of each Owner thereof. ARTICLE 1 The following words, when used in this Declaration or in any amendment or supplement hereto shall, unless the context shall prohibit, have the following meanings: 1.01 Association. The Meadow Grove Owners Association, an Illinois not-for-profit corporation, its successors and assigns. 1.02 Apartment. Any individual living space contained within a Unit and designed for single family residential purposes. 1.03 Building. Any building on the Property containing two (2) Units sharing a common party wall. 1.04 By -Laws. The By -Laws of the Association attached hereto as Exhibit "C" and made a part hereof. 1.05 Common Area. That portion of the Property owned or to be owned by t ee Aston, including all improvements and facilities thereon legally described in Exhibit "B" attached hereto and made a part hereof. 1.06 Declarant. American National Bank and Trust Company of Chicago, not personally but as Trustee under Trust Agreement dated June 8, 1992, and known as Trust Number 115634-00 its successors and assigns. 1.07 Developer. Meadow Mart Limited Partnership , an Illinois limited partnership, its successors and assigns. 1.08 Occupant. Any person or persons occupying an Apartment. 1.09 Owner. The record owner, whether one or more persons, individuals, or entities, of a fee -simple title to any Six -Flat Parcel which is a part of the Property, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation. 1.10 Property. The real estate described in Exhibit "A" attached hereto and made a part hereof. 1.11 Subdivision Lots. The lots of record comprising the Property as established by that certain Plat of Subdivision (the "Plat") recorded in the Office of the Recorder of Deeds of Cook County, Illinois on as Document No. Each Subdivided Lot shall constitute a freehold estate, subject to the terms and conditions of this Declaration. 1.12 Rules and Regulations. The rules and regulations of the Association, as amended from time to time. -2- F 1.13 Unit. Any structure which is part of a subdivided Tor use and occupancy as six dwellings, Apartments and situated on a Six -Flat Parcel. contains two (2) Units sharing a common party wall. Building and is containing six Each Building 1.14 Six -Flat Parcel. One (1) Unit situated on a separately designated S ivision Lot for use and occupancy with six (6) dwelling units and including all real estate comprising said Subdivision Lots. 1.15 Turnover Date. The date of the initial meeting of members as defined in Paragraph 3.02 hereof. 1.16 Village. The Village of Elk Grove Village, an Illinois municipal corporation. 1.17 Voting Member. Each member entitled to vote at meetings of members pursuant to Paragraph 2.02 hereof. ARTICLE 2 MEMBERSHIP 2.01 Membership. The Association shall have one class of membership. Membership in the Association shall be appurtenant to and shall not be separated from the ownership of a Six -Flat Parcel. Every Owner shall be a member of the Association and such membership shall automatically terminate upon the sale, transfer, or other disposition by such member of his Six -Flat Parcel, at which time the new Owner shall become a member. 2.02 Voting Rights. Commencing on the Turnover Date, each member shall have one vote for each Six -Flat Parcel such member owns, provided that in no event shall more than one (1) vote be cast with respect to any Six -Flat Parcel. If more than one person owns a Six -Flat Parcel, the vote for that Six -Flat Parcel shall be exercised as all such Owners of that Six -Flat Parcel shall determine. If a Six -Flat Parcel is owned by a trustee, corporation, partnership, or other legal entity, the vote for such Six -Flat Parcel shall be exercised as the Owner of that Six -Flat Parcel shall from time to time designate in writing to the Board (as hereinafter defined), subject to such applicable provisions as may from time to time be contained in the By -Laws. The person entitled to vote with respect to each Six -Flat Parcel shall be the Voting Member. Prior to the Turnover Date all voting rights shall be lodged exclusively in the Developer and the members shall have no voting rights. ARTICLE 3 BOARD OF DIRECTORS 3.01 General. The business and affairs of the Association shall be manag by the Board of Directors (the "Board"). From -and -3- ,,> r after the Turnover Date (as defined in the following paragraph) the number of members of the Board and their method of election shall be as provided in the By -Laws. 3.02 Appointment by Developer. Until the directors are elected by the Voting Members at the initial meeting of members, the Board shall consist of such persons, but not less than three (3), as Developer shall from time to time designate. The initial meeting of members shall be held on such date (the "Turnover Date") as Developer shall designate, provided that in no event shall it be later than sixty (60) days after the first to occur of the following events: (a) Developer has sold and caused to be conveyed to individual purchasers ninety percent (908) of the Units on the Property; or (b) The expiration of seven (7) years from the date this Declaration is recorded. Developer may, from time to time, by written notice to the Association, elect to relinquish its right to appoint any one or more directors (in which event such members of the Board shall be elected by the Voting Members) and continue to exercise its right to appoint the remaining members of the Board for the period hereinabove specified. 3.03 Election by Members. The members shall elect a new Board at their initial meeting which shall be called by Developer or, if Developer fails to do so within thirty (30) days after the Turnover Date, by any three members. Such meeting shall be called by notice sent pursuant to the By -Laws. 3.04 Director and Officer Liabil't Neither the directors nor io the officers of the Associatn sha 1 be personally liable to the Owners or the Association for any mistake of judgement or for any other acts or omissions of any nature whatsoever as such directors or officers except for any acts or omissions found by a court to constitute gross negligence or fraud. The Association shall indemnify and hold harmless the directors and officers, their heirs and legal representatives, against all contractual and other liabilities to others arising out of contracts made by or other acts of the directors and officers on behalf of the Owners or the Association or arising out of their status as directors and officers unless any such contract or act shall have been made fraudulently or with gross negligence. The foregoing indemnification shall include indemnification against all costs and expenses (including, but not limited to attorneys' fees, judgments, fines and amounts paid in settlement) actually and reasonably incurred in connection with the defense of any claim, action, suit or proceeding, whether civil, criminal, administrative, investigative, or otherwise, in which any such director or officer may be involved by virtue of being or having been such director or officer; provided, however, that such indemnity shall not be operative with respect to any acts or omissions in the performance of his duties as such director or officer found by a court to constitute gross negligence or fraud. -4- P ARTICLE 4 EASEMENTS AND PROPERTY RIGHTS 01 4.01 Easements of Access, Use and Enjoyment. All current easements with respect to the Property as designated on the Plat are incorporated herein by reference as if fully restated herein. Every Owner shall have a right and easement of use and enjoyment and a right of access to and of ingress and egress on, over, across, in, upon and to the Common Area (but not the Six -Flat Parcels) which right and easement shall be appurtenant to and shall pass with title to every Six -Flat Parcel. In addition, the Association shall have a right and easement to enter upon the Six -Flat Parcels for the purposes of maintenance, repairs, and replacements of the roofs, downspouts, gutters, exterior windows, landscaping and paved walkways thereon (including, without limitation, lawn mowing and snow removal) and the painting of the exterior of the Units in accordance with its obligations under this Declaration. The foregoing rights and easements are subject to the following: (a) The right of the Association, in accordance with its By - Laws, to adopt Rules and Regulations governing the use, operation, maintenance, conservation and beautification of the Common Area and the Six -Flat Parcels, and for the health, comfort and safety and general welfare of the Owners and occupants of the Property, including, without limiting the generality of the foregoing: (i) regulations governing the use of the private streets, driveways, and parking areas, and the removal of vehicles to facilitate snow removal; (ii) imposing and assessing Owners reasonable fines for violation of the Rules and Regulations. (b) The right of the Association, in accordance with its By - Laws, to borrow money for the purpose of improving the Common Areas and facilities located thereon and the landscaping and paved walkways located on the unimproved portions of the Subdivision Lots, and in aid thereof to mortgage the Common Area, provided that the rights of any such mortgagee in and to the Common Area and facilities located thereon shall, in the event of default, be limited to a right, after taking possession of such properties, to charge fees for the use of any recreational facilities thereon as a condition to continued use and enjoyment by the members until the mortgage debt is satisfied, whereupon the possession of such properties shall be returned to the Association and all rights of the members hereunder shall be fully restored. Notwithstanding the foregoing, no mortgage shall be placed upon the Common Area unless approved by the Board and by the VotingMembers (other than Declarant) having at least two-thirds (23) of the total votes at a duly convened general or special meeting, provided that as long as Declarant owns a Six -Flat Parcel, Developer's written consent to any such mortgage shall also be required. -5- (c) The right of the Association to dedicate or transfer all or any part of the Common Area, or any utility system thereon, to any public agency, authority, or utility system thereon, for such purposes and subject to such conditions as may be approved by the Board, by Voting Members (other than Declarant) having at least two-thirds (2/3) of the total votes at a duly convened general or special meeting, and by mortgagees as required in Article 6, provided that as long as Developer owns a Six -Flat Parcel, Developer's written consent to any such dedication or transfer shall also be required; provided further that until the Turnover Date the right is vested exclusively in Declarant, without approval of any other party, to dedicate a portion of the Common Area for public streets free and clear of the provisions of this Declaration, in which event the provisions of this Declaration shall be null and void with respect to the portion of the Common Area so dedicated. 4.02 Rights of Occupants. Any Occupant shall have the same rights to use and enjoy the Common Area as the Owner of a Six -Flat Parcel. 4.03. Utility Easements. All current sewer and water and public utility easements in, across, over, upon and under the Property as designated on the Plat are incorporated herein by reference as if fully restated herein. In addition, the Illinois Bell Telephone Company, Commonwealth Edison Company, Northern Illinois Gas Company, Cook County Public Works Department, The Village of Elk Grove Village, Continental Cablevision and all other present suppliers of utilities serving the Property are hereby granted the right to install, lay, construct, operate, maintain, renew, repair, and replace conduits, cables, pipes, wires, transformers, mains, switching apparatus and other equipment, including housing for such equipment, into, over, under, on and through the Common Area and other portion of the Property for the purpose of providing utility services to any portion of the Property, and Declarant reserves the right to grant, execute and cause to be recorded such utility easements to such suppliers of utilities and services as may be necessary or desirable in connection with the foregoing. 4.04 Easement for Overhang and Encroachment. In the event that, by reason of location, construction, reconstruction, repair, settlement, shifting or movement, any Unit, Building or other improvement (or portion thereof) originally constructed on the Property or constructed with the approval of Developer encroaches or shall hereafter encroach upon the Common Area or upon any Six -Flat Parcel owned by a party other than the owner of such Unit, Building or other improvement or any improvement, structure or facility situated on the Common Area encroaches or shall hereafter encroach upon any Six -Flat Parcel, such encroachment and its maintenance and use are hereby established and shall exist for the benefit of such Unit, Building, or other improvement or the Common Area as the case may be, so long as the encroachment exists; provided, however, that in no event shall any encroachment upon the Common Area be created in favor of any Owner if such encroachment occurred due -to the wilful, intentional, or negligent conduct of such Owner or his agent; provided further that if such Unit, Building, or other improvement is partially or totally destroyed and thereafter repaired or rebuilt, the same permissible encroachment may be reestablished and the easements herein granted shall continue in force. 4.05 Rights of Developer. As long as Declarant or Developer owns or controls a Six -Flat Parcel, the right is reserved to Developer and its agents to engage in sales and leasing activities on the Property in connection with such Units, and for that purpose to place and maintain on the Property model Apartments or Units, sales and leasing offices, advertising signs, banners, lighting and other forms of advertising in connection therewith, at such locations and in such forms as Developer shall determine. There is also reserved to Developer, its agents, prospective purchasers and lessees, if any, the right of ingress, egress and transient parking over, through and upon the Property in connection with such sales or leasing activities and during construction of improvements or alterations to the Property by Developer, the right of ingress and egress over and through the Property in connection therewith, together with the right to store on the Property equipment and materials used in connection with such work. The provisions of this paragraph shall inure to the benefit of any assignee or successor of Developer. 4.06 Transfer of Common Area to Association. Declarant will, no later than sixty (60) days after the Turnover Date, convey title to the Common Area to the Association by trustee's or quit claim deed. 4.07 Maintenance of Common Area Prior to Conveyance to Association. Prior to conveyance by Declarant of title to the Common Area to the Association, the Association shall be liable for, and from the assessments against members collected by it the Association shall pay or reimburse Developer for, all costs and expenses with respect to the Common Area, to the same extent as if said Common Area was owned by the Association. 4.08 Village Rights. An irrevocable license and non-exclusive easement is hereby granted to the Village and police, fire, water, health and other authorized officials, employees and vehicles of the Village, to go upon the Common Area (and, to the same extent granted to the Association with respect thereto, the Six Flat Parcels) at any time and from time to time for the purpose of performance of official duties and for the purpose of enforcing this Declaration and all Village ordinances, rules and regulations, and the statutes of the State of Illinois and the United States. In addition, duly designated officials and employees of the Village are hereby granted a non-exclusive easement to enter upon, on and over the Common Area for the purposes of maintaining all or any part of the drainage systems, storm and sanitary sewers, water mains, and any other utility or public service and to correct or eliminate nuisances or violations resulting from the failure to exercise maintenance responsibilities by the Developer or its successors and assigns,.any -7- k. Owner or the Association. Except in the event of emergency situations, the Village shall serve written notice upon the Association setting forth the manner in which the Association has failed to comply with its obligations under this Declaration under any source of law. Said notice shall include a demand that such deficiency be cured as soon as possible, but in no event later than 30 days from the date such notice is received. If such deficiency has not been cured within said time period or any extension thereof granted by the Village, the Village may (but shall not be obligated to) exercise said easement by entering the Common Area and performing such maintenance or repair. The Association shall reimburse the Village for all expenses incurred by it in performing such maintenance or repair. If the Association has not reimbursed the Village in full for all such expenses incurred within 90 days after receipt of a bill detailing such expenses, then the cost of such maintenance or repair not so reimbursed, together with interest and all reasonable costs of collections, including attorneys' fees, shall be assessed in equal shares against the Six Flat Parcels, and shall become a lien thereon. Such lien may be enforced by all methods generally available for the enforcement of liens including foreclosure by an action brought in a like manner as a mortgage or deed of trust lien on real property. Said easement shall be exercised only to the extent and for such period of time that the maintenance or repair is required to accomplish the purpose hereinabove mentioned. The Village shall be under no obligation to exercise the rights herein granted except as it shall determine to be in its best interest. No failure to exercise any right herein granted to the Village shall be construed as a waiver of that or any other rights. 4.09 Easements to Run with the Land. All easements and rights described herein are easements appurtenant, running with the land, perpetually in full force and effect, and at all times shall inure to the benefit of and be binding upon any Owner, purchaser, mortgagee or other person having any interest in the Property or any part or portion thereof. Reference in the respective deeds of conveyance or in any mortgage or trust deed or other evidence of obligation to the easements and rights described in any other part of this Declaration shall be sufficient to create and reserve such easements and rights to the respective grantees, mortgagees and trustees of such Six -Flat Parcels as fully and completely as though such easements and rights were recited and set forth in their entirety in such documents. ARTICLE 5 COVENANT FOR ASSESSMENTS 5.01 Creation of the Lien and Personal Obli ation for Assessments. Each Owner o a Six -F at Parce acceptance o a deedterefore, whether or not it shall be so expressed in any such deed or other conveyance, for each Six -Flat Parcel owned by such Owner, hereby covenants and agrees and shall be deemed to covenant and agree to pay to the Association all assessments, special MT k k, assessments and charges levied pursuant to this Declaration. Such assessments, together with such late charges thereon and costs of collection thereof, as hereinafter provided, shall be a charge and a continuing lien upon the Six -Flat Parcel against which such assessment is made and shall also be the continuing personal obligation of the person who was the Owner of such Six -Flat Parcel at the time when the assessment fell due. 5.02 Purpose of Assessments. The assessments levied by the Association shall be used for the purpose of promoting the recreation, health, safety and welfare of the members of the Association and, in particular, for the following: the expenses of administration, maintenance, repair and replacement of, and improvements and additions to the Common Area and the landscaping and paved walkways located on the unimproved portions of the Subdivision Lots, including, without limiting the generality of the foregoing, snow removal, lawn mowing and landscape maintenance; scavenger service for the entire Property, including all Units; parking lot and roadway repairs; painting of the exterior of the Buildings; roof, downspout, gutter and exterior window repair and replacement, insurance, real estate taxes for the Common Area, if any, payment of all water bills issued by the Village with respect to all Buildings, Six -Flat Parcels and the Common Area on the Property; and all other expenses incident to or arising out of the ownership of the Common Area; management and professional fees, wages, materials, services and supplies in connection with any of the foregoing; equipment or other personal property acquired by the Association; and for otherwise carrying out the duties and obligations of the Association and the Board of Directors stated herein and in the By -Laws. 5.03 AnnualBudget and Assessments. Each year on or before November 1 or such other date as may be provided in the By -Laws, but in no event later than December 1, the Board shall adopt a budget for the ensuing calendar year for the estimated costs and expenses of the Association and such reasonable sums as the Board determines for capital reserves and operating reserves. The annual budget may also take into account the estimated net available cash income of the Association for the year, if any. Each Owner shall be furnished a copy of said budget at least thirty (30) days prior to the adoption thereof by the Board of the Association together with the amount of each Owner's annual assessment and monthly installments due thereunder, which shall be charged and assessed equally against each Six -Flat Parcel subject to assessment hereunder, and each Owner thereof, jointly and severally. 5.04Pa ent of Annual Assessment. On or before January 1 of the ensuing year an on or before the first day of each and every month thereafter of said year, each Owner, jointly and severally, of a Six -Flat Parcel subject to assessment hereunder shall pay to the Association, or as it may direct, one -twelfth (1/12) of such annual assessment, and any increase pursuant to the following paragraph. 5.05 RevisedBudget and Assessments. If the amount provided for in the budget proves inadequate or any reason (including non - MM L payment of any Owner's assessment), the Board may increase the assessment equally against each Six -Flat Parcel by giving written notice thereof, together with a revised budget and explanation for the increase, to each Owner and such revised assessment shall become effective with the monthly assessment that is due not less than ten (10) days after the mailing or delivery of such revised assessment. 5.06 Failure to Pre are Bud etThe failure or delay of the Board to prepare or serve the annua. or revised budget and notice of assessment on any Owner shall not constitute a waiver or release in any manner of such Owner's obligation to pay the costs, expenses and necessary reserves as herein provided, whenever the same shall be determined, and in the absence of any annual or revised budget, the owner shall continue to pay the monthly assessment at the then existing monthly rate established for the previous period until the monthly installment which is due more than ten (10) days after such new annual or revised budget and assessment shall have been mailed or delivered to the Owners. 5.07 S ial Assessments for Ca ital Im rovements. In addition to the annua assessments authoriz above, the Board may from time to time levy a special assessment for the purpose of defraying, in whole or in part, the cost of specific capital alterations, additions, or improvements to the Common Area or to the landscaped areas or paved walkways located on the unimproved portions of the Subdivision Lots, or for the purchase of specific equipment or other personal property, provided that, except as may otherwise be provided in the By -Laws, each such special assessment which exceeds fifteen percent of the most recent annual budget for the Association shall first be approved by a majority of the Board and thereafter by a majority of the votes cast by the Voting Members at a general or special meeting duly called for that purpose or, in lieu of such members' meeting, by an instrument signed by the members owning two- thirds (2/3) of the Six -Flat Parcels. Assessments collected hereunder shall be segregated from and used only for the specific purpose of which such special assessment was levied. The provisions of this Paragraph shall not apply to, restrict or limit the right, power and obligation of the Board to assess and pay for the maintenance, restoration and replacement of existing improvements on the Common Area or on said landscaped areas and paved walkways, painting of the exterior of each Building, roof, gutter, downspout and exterior window repair and replacement and of any equipment or other personal property then owned by the Association. 5.08 Capital Reserves. To the extent the annual budget includes an amount designated as a capital reserve, each Owner shall, as to each monthly installment of the annual assessment paid by him, be deemed to make a non-refundable capital contribution to the Association in the proportion that the amount of such designated capital reserve bears to the total annual budget. Such proportion of each monthly installment paid to the Association- shall be segregated and maintained by it in a special capital reserve account to be used solely for making major repairs and replacements to the Common Area, to the landscaping and paved walkways within the -10- Subdivision Lots, painting of the exterior of the Buildings, roof, gutter, downspouts and exterior window repair and replacement and for the purchase of equipment to be used by the Association in connection with its duties hereunder, provided that if the budget includes a reserve for a specified capital expenditure, a proportionate share of each monthly assessment shall be separately maintained and used solely for that purpose. 5.09 Uniform Assessments. Both annual and special assessments pursuant to this Article must be fixed at a uniform rate for all Six -Flat Parcels. 5.10 Commencement of Annual Assessments. Annual assessments shall commence upon the date the first Six -Flat Parcel is conveyed by Declarant to a purchaser for value. 5.11 Assessments in First Year. Notwithstanding anything herein to the contrary, for the period ending one year from the date annual assessments commence, the monthly assessments for each Six - Flat Parcel subject to assessment hereunder shall be as set forth in the initial budget prepared by Developer. 5.12 Due Dates and Collection of Assessments. All assessments shall be due and payable at such time or times and in such manner as set forth herein or as shall be fixed by the Board. 5.13 Initial Ca ital Contribution b Bu ers. At the closing of the first sae o eac Six -F at Parce by Developer, the Owner purchasing such Six -Flat Parcel will be required to make a capital contribution to the Association in an amount equal to twice the initial monthly assessment established by Developer for all Six -Flat Parcels, to be held and used as the Board shall from time to time determine. Such payments shall not be refundable or credited against any assessments. Developer shall not be liable to the Association for payment of said amounts if not collected from the Owners at closing, but each Owner shall be liable for payment of said initial capital contribution and the Association is hereby authorized and empowered to collect the same in the same manner as it is authorized and empowered herein to collect delinquent assessments. Any successor and assign of Developer's rights as Developer under this Declaration shall not be required hereunder to pay such initial capital contribution but shall endeavor to collect such initial capital contribution from the Owner purchasing a Six - Flat Parcel at closing in the same manner as Developer shall endeavor to collect such initial capital contribution at the initial closings. 5.14 Remedies for Delinquent Assessments. All assessments and charges due from an owner pursuant to his Declaration or the By -Laws which are not paid when due shall be deemed delinquent. Any assessment or charge or any installment thereof not paid within fifteen (15) days from the date due shall bear a late charge of $100.00 per month (or such greater sum as the By -Laws or Rules and Regulations may from time to time provide) for each calendar month or fraction thereof that it remains unpaid. If any such assessments -11- or charges are delinquent for thirty (30) days, the Association may: (i) accelerate payment of the remaining installments of any annual or special assessment against such Owner, and in such event the entire amount thereof shall become due and payable; (ii) bring suit to enforce collection of all assessments and charges due; (iii) foreclose the lien therefore as hereinafter provided; and/or (iv) take possession of such defaulting Owner's Six -Flat Parcel, together with his interest in the Property, and maintain an action for possession in the manner prescribed in the "Code of Civil Procedure," approved August 19, 1981, as amended, or as may otherwise now or hereafter be permitted by law. If any Owner is delinquent in the payment of assessments or charges, there shall be added to and assessed against such Owner such late charges, together with attorneys' fees and all other costs and expenses, including court and deposition costs, if any, reasonably incurred by the Association in connection with such delinquency and its collection. 5.15 Subordination to Mortgages. The lien on a Six -Flat Parcel provided for in this Article for assessments and charges shall be subordinate to the lien of any bonafide first mortgage on such Six - Flat Parcel recorded prior to the date such assessment or charge became due, and each holder of a first mortgage lien on a Six -Flat Parcel who acquires title of such Six -Flat Parcel pursuant to a decree of foreclosure or by deed or assignment in lieu of foreclosure, will take such Six -Flat Parcel free of any claims for unpaid assessments and charges against the Six -Flat Parcel which became due prior to the date such first mortgagee acquires title or comes into possession of the Six -Flat Parcel, whichever occurs first, except for claims for a prorata share of such assessments or charges resulting from a prorata allocation of such assessment or charges to all Six -Flat Parcels, including the mortgaged Six -Flat Parcel and except for any installments of annual or special assessment which became due prior to such date solely by reason of having been accelerated by the Board pursuant to (i) of the preceding paragraph. Notwithstanding anything contained in this Declaration to the contrary, the lien rights provided to the Village and the Association shall also be subordinate and subject to the loan made by Developer's lender and any renewals, extensions, increases in the amount of and additional advances of such loan which loan is secured by a collateral assignment of the beneficial interest of Declarant. 5.16 No Waiver of Owner's Liabilit . No Owner may waive or otherwise escape liability or t e assessments and charges provided herein by non-use of the Common Area or abandonment of his Six -Flat Parcel. ARTICLE 6 RIGHTS OF FIRST MORTGAGEES 6.01 Writte. n Ap�oval. In addition to the consent of Owners required by tis Dec tion or the By-laws, without the prior written approval of holders of two-thirds (2/3) of the first mortgages (based upon one vote for each Six -Flat Parcel encumbered with a first mortgage) on the individual Six -Flat Parcels, the Association shall not: (a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer the Common Area except as provided in -12- paragraph 4.01 (c) hereof. The granting of easements for public utilities or for other purposes consistent with the intended use of such property by the Association shall not, for purposes of the foregoing, be deemed to be a transfer. (b) Change the method of determining the obligations, assessments or other charges which may be levied against a Six -Flat Parcel and the Owner thereof as provided in Article 5. (c) Fail to maintain fire, liability and extended coverage on the insurable portions, if any, of the Common Area on a current replacement cost basis in an amount not less than 100% of the insurable value (based on current replacement cost). (d) Use hazard insurance proceeds for losses to any Association property for other than the repair, replacement or reconstruction thereof. 6.02 Examination of Books and Records. First mortgagees of Six -Flat Parcels shall have the right to examine the books and records of the Association at reasonable times during normal business hours. 6.03 Vent of Taxes and Other Char es in Default. First mortgagees of Six -Flat Parcels may, joint y an severally, pay taxes or other charges which are in default and which may or have become a charge against any Common Area or other common property owned by the Association, and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for Common Area or other common property, and first mortgagees making such payments shall be owed immediate reimbursement from the Association. 6.04 Documents and Notices. Upon written request sent to the Board by the holder of a first mortgage on a Six -Flat Parcel, such first mortgagee shall be entitled to the following, provided, however, that the failure of the Association to furnish any of the following to any first mortgagee who has so requested same shall not effect the validity of any action or decision related to any of the following: (a) Copy of any financial statement of the Association which is prepared for the Association and distributed to the Owners; (b) Written notice of all meetings of the Association and the right to designate a representative to attend all such meetings; . (c) Notice of any material amendment to the Declaration, By - Laws or Articles of Incorporation of the Association; (d) Notice of the decision of the Association to terminate professional management and assume self-management; (e) Notice of any substantial damage to or destruction of any part of the Common Area or the facilities thereon; -13- (f) Notice of any condemnation or eminent domain proceeding with respect to any portion of the Common Area; (g) Notice of any default in the Six -Flat Parcel Owner's obligations hereunder not cured within thirty (30) days after a written notice of default has been sent to such owner by the Association. 6.05 Insurance Proceeds and Condemnation Awards. Notwithstanding anything herein the to contrary, no Owner or other party shall have priority over any rights of the first mortgagee of a Six -Flat Parcel, pursuant to its mortgage, in the case of a distribution to the Owner of such Six -Flat Parcel of insurance proceeds or condemnation awards for losses to or a taking of the Common Area or any other Association property. 6.06 OtherRights. The provisions of this Article are in addition to all other rights of first mortgagees pursuant to this Declaration or under law and apply notwithstanding any other provisions hereof to the contrary. ARTICLE 7 INSURANCE 7.01 (a) The Association shall be responsible for procuring and maintaining comprehensive public liability insurance, including liability for injuries to and death of persons in an amount not less than one Million Dollars ($1,000,000.00) per occurrence, and property damage, in such limits as it shall deem desirable, and other liability insurance as it may deem desirable, insuring the Association from liability in connection with the ownership and/or use of the Common Area. The Association shall be further responsible for maintaining such policies of insurance for the Common Area against loss or damage by fire and such other hazards contained in a customary "all risk" policy provided that such policies shall (i) provide that such policies may not be cancelled or substantially modified without at least thirty (30) days' written notice to the Association and all mortgagees of record of the Common Area; (ii) provide that all mortgagees of record of the Common Area shall have the right to pay overdue insurance premiums and to obtain new coverage in the event the existing insurance policy lapses; (iii) provide for coverage in the amount of one hundred percent (100%) of current full replacement value; and (iv) contain standard mortgage clause endorsements in favor of the mortgagee(s) of the Common Area, as their respective interests may appear. The liability policy shall also name as insureds the Association's agents, officers, employees, each Owner and the Village, its agents, officers and employees. (b) The Association shall be responsible for procuring and maintaining a fidelity bond insuring the Association, the Board and the owners against loss of funds as a result'of the fraudulent or dishonest acts of any employee of the Association or its management -14- agent or of any other person handling the funds of the Association, the Board or the Owners in such amounts as the Board shall deem necessary but not less than 150% of the annual operating expenses of the Association, including reserves. Such bond shall contain waivers of any defense based on the exclusion of persons who serve without compensation from any definition of "employee" or similar expression. Such bond shall provide that it may not be cancelled for non-payment of any premiums or otherwise substantially modified without thirty (30) days' prior written notice to all holders of first mortgages of record. (c) The Association may also obtain such other kinds of insurance as the Association shall from time to time deem prudent in such amounts as the Association shall deem desirable including, but not limited to, the following: Earthquake and Flood Risk; Directors' and Officers' Liability; Workmen's Compensation and Employer Liability; and Non -Owned or Hired Automobile Insurance. 7.02 Each Owner shall procure and maintain in full force at all times insurance covering his Unit consisting of, or providing all the protections afforded by, the insurance now generally described in an "all risk" policy to one hundred percent (100%) of the full insurable value thereof, with loss payable on the basis of the cost of replacement without deduction for depreciation, less a deductible amount of no more than one thousand ($1,000.00) dollars and naming the Association as an additional insured on each policy. Such insurance shall be written by companies reasonably acceptable to the Association. A certificate of insurance evidencing such coverage shall be furnished to the Association and new certificates evidencing the renewal of each expiring policy of insurance shall be furnished to the Association in each case at least ten (10) days prior to the expiration date of the expiring insurance. In the event a Unit or any portion thereof shall be damaged or destroyed by fire or other casualty and the Owner thereof shall cause it to be repaired, restored or reconstructed, as the case may be, the repairs, restoration or reconstruction shall be in the same architectural style and design as was originally constructed and shall conform in all respects to all applicable laws or ordinances in force at the time of such repair, restoration or reconstruction. In the event of the total or substantial destruction of all of the Units and Buildings, the architectural design of the Units and Buildings to be rebuilt and the materials to be used in constructing the same shall be agreed upon among the Owners thereof, and in the absence of agreement, the rebuilt Units and Buildings shall be substantially similar in architectural design as the original Units and Buildings and shall be constructed of comparable materials and quality of construction. 7.03 Upon the failure of any Owner to procure and maintain the insurance required in Section 7.02 hereof or, in the event the Board, in its sole discretion, determines that the Unit is underinsured, the Board shall have the authority to procure such insurance and/or additional insurance, as the case may be, and the costs thereof shall become a lien upon the Six Flat Parcel in the same manner as provided herein for nonpayment of maintenance assessments. -15- k, t. 7.04 All repair, restoration or rebuilding pursuant to the provisions of this Article 7 shall be carried out under such supervision and direction as the Board shall deem appropriate in order to assure the expeditious and correct completion of the work concerned, and the Owner or Owners of each Unit which shall have been damaged or destroyed shall fully cooperate with, and abide by all instructions and directions of, the Association in connection therewith. 7.05 In the event of such damage or destruction of a Unit, the holder of the mortgage encumbering said Unit or Six Flat Parcel shall cause the proceeds of any insurance required pursuant to Section 7.02 hereof to be utilized in restoring the Unit or Building pursuant to the terms of this Article. 7.06 In any case in which the Owner or Owners concerned shall fail to perform or cause to be performed the repair, restoration or rebuilding required by the provisions of this Article 7, the Association shall cause such repairs or rebuilding to be furnished, provided and installed in the manner as set forth in Section 7.03 hereof; provided, however, that to the extent the insurance proceeds referred to in Section 7.02 are insufficient as to any Unit, the particular Owner shall be responsible to the Association for such deficiency, and the Association shall have, and is hereby granted, a continuing lien on the Six Flat Parcel for which any such repairs or rebuilding are furnished by the Association in the aggregate amount of (a) the amount that cost thereof exceeds insurance proceeds, (b) interest at the rate of twelve percent (128) per annum from the date of the Association's payment of such costs, and (c) reasonable attorney's fees and any court or other costs incurred by the Association in connection therewith, which lien shall bind such Six Flat Parcel. In the event such Owner does not forthwith fully repay the Association therefore, as aforesaid, such lien shall be foreclosed against the Six Flat Parcel by the Association in the same manner as herein provided in connection with unpaid assessments. The Association's lien in this Section 7.06 provided for shall be subordinate to the lien of any first mortgage now or hereafter placed upon the Six Flat Parcel. 7.07 In the event of any damage or destruction to the exterior portion of a Unit and the loss is covered by policies of insurance, the Board shall have the authority to settle and adjust any claim under such policies without the consent of the respective Owner. ARTICLE 8 LEASES No Six -Flat Parcel or any Apartment located therein shall be leased for hotel or transient purposes. Any agreement between an Owner and a lessee for the lease of a Six -Flat Parcel or,Apartment shall be in writing and shall provide that it is subject in all respects to the provisions of this Declaration and the Articles of Incorporation, By -Laws and Rules and Regulations of the Association, -16- and that failure by the lessee to comply with the terms thereof shall be a default under such lease. Other than the foregoing, there is no restriction imposed by this Declaration on the right of an Owner, including Declarant or Developer, to lease ,any Six -Flat Parcel or Apartment it owns. ARTICLE 9 In the event there is a taking or condemnation by a competent authority of all or any portion of the Common Area, the proceeds awarded in such condemnation shall be paid to the Association and either: (i) used to replace on the existing Common Area any facility or improvements so taken; (ii) used to acquire other real estate as additional Common Area and to replace any such facility or improvement so taken; or (iii) shall be distributed to the Owners and their respective mortgagees, as their respective interests may appear, in equal shares. If any real estate is acquired hereunder, it shall promptly be added to the Common Area by the recording of a supplement to this Declaration, legally describing said real estate and executed by the Association by its duly authorized officers. ARTICLE 10 PARTY WALLS 10.01 All dividing walls between the two (2) Units in any Building which straddle the boundary line between Subdivision Lots and which stand partly upon one Subdivision Lot and partly upon another, and all walls which serve two or more Units, shall at all times be considered party walls, and each of the Owners of the Six Flat Parcels upon which any such party wall shall stand shall have the right to use said party wall below and above the surface of the ground and along the whole length or any part of the length thereof for the support of said Units and for the support of any Building currently constructed or hereafter constructed to replace the same, and shall have the right to maintain in or on said wall any pipes, ducts or conduits originally located therein or thereon, subject to the restrictions hereinafter contained. 10.02 No Owner of any Six Flat Parcel nor any successor in interest to any such Owner shall have the right to extend said party wall in any manner, either in length, height or thickness. 10.03 In the event of damage to or destruction by fire or other casualty of any party wall, including the foundation thereof, the Owner of any Subdivision Lot upon which such party wall may rest shall have the obligation to repair or rebuild such wall and the owner of each Subdivision Lot upon which such wall shall rest, be served or benefited by, shall pay his aliquot portion of thecost of such repair or rebuilding. All such repair or rebuilding shall be -17- done within a reasonable time, in a good and workmanlike manner with materials comparable to those used in the original wall and shall conform in all respects to the laws or ordinances regulating the construction of buildings in force at the time of such repair or reconstruction. Whenever any such wall or any portion thereof shall be rebuilt, it shall be erected in the same location and on the same line and be of the same size as the original wall. 10.04 The foregoing provisions of this Article 10 notwithstanding, the Owner of any Six Flat Parcel, or other interested party, shall retain the right to receive a larger contribution from another or others under any rule or law regarding liability for negligent or willful acts or omissions. The right of any Owner, or other interested party, to contribution from any other Owner under this Article 10 shall be appurtenant to the land and shall pass to such Owner's or other applicable person's successors in title. 10.05 The title of each Owner to the portion of each party wall within a Unit is subject to a cross easement in favor of the adjoining Owner for joint use of said wall. ARTICLE 11 ARCHITECTURAL CONTROL; EXTERIOR MAINTENANCE AND REPAIR 11.01 Changes to Building Structure and Exterior Additions or Alterations. Nothing shall be done in any Building or Unit or in, on, or to N Property which will impair the structural integrity of any Building or Unit or which would structurally change any Building or Unit except as otherwise provided herein. Except as constructed or approved by Developer, no exterior addition, alteration or change in design, color, material, finish or otherwise shall be made to any Building or Unit or to the Property, and no sign, canopy, shutters or antenna shall be affixed to or placed upon the exterior walls or roof of any Building or Unit without, in each case, the written consent of the Board. 11.02 Maintenance Re air and Reconstruction. Each Unit and Six -Flat PA shal be kept and maintained in good condition and repair and in a clean and sightly condition. All repairs to the Units or other improvements originally installed by Developer on any Six -Flat Parcel shall be made in a good and workmanlike manner, with materials comparable to those used in the original structure, and shall conform in all respects to the laws or ordinances regulating the construction and repair of such structures in force at the time of such repair. All such repairs shall be made so as not to change the architectural design, color, material, or finish of any Building or Unit. In the event of damage to or destruction of any of the Units or Building or other improvements originally installed by Developer on any Six -Flat Parcel, the Owner or Owners from time to time of any such improvements covenant and agree that they will, within a reasonable time after such damage or destruction, repair or rebuild the same in a substantial and workmanlike manner-, with materials comparable to those used in the original structure, and shall conform in all respects to the laws or ordinances regulating the construction of such structures in force at the time of such repair or reconstruction. The exterior of such structure, when rebuilt, shall be substantially the same as and of architectural design conformable with the exterior of said structure immediately prior to such damage or destruction. 11.03 Association and Owner Rights. In the event any Owner shall fail to perform such maintenance, repairs, or reconstruction, or in the event such maintenance, repairs, or reconstruction is necessary to protect the Common Area or any of the Units or other improvements on the Property, or to maintain the general character, appearance and condition thereof, and the same is not done within a reasonable time after written notice of the necessity thereof, or, in the case of an emergency, without notice, the Association may enter upon any Six -Flat Parcel and cause such maintenance, repairs or reconstruction to be done and the costs thereof shall be assessed and charged to such Owner as his personal obligation and shall be a lien upon such Owner's Six -Flat Parcel and enforceable as provided in Article 5. Additionally, any Owner adversely affected by the failure of another Owner or the Association to comply with the provisions of Sections 11.01 and 11.02 shall have the right to seek enforcement thereof as provided in Section 13.02. ARTICLE 12 COVENANTS AND RESTRICTIONS AS TO USE AND OCCUPANCY 12.01 Use of Residence. Except as provided in Paragraph 4.05, none of the Apartments shall be used other than as a residence. 12.02 Obstruction. There shall be no obstruction of the streets, driveways, parking areas or other portions of the Common Area, nor shall anything be stored in or upon the Common Area (except in areas designed for such purposes, if any) without the prior consent of the Board. 12.03 Unsi htses The Property shall be cearo Nan kept free and debris, and other unsightly materials and no waste shall be committed thereon. No clothes, sheets, blankets, laundry or other articles may be hung out or exposed on any portion of any of the Apartments, Units or Six -Flat Parcel. No noxious or offensive activity shall be carried on in any portion of the Property, a Building, a Six -Flat Parcel, a Unit or any of the Apartments nor shall anything be done therein, either willfully or negligently, which may be or become an unreasonable disturbance or nuisance to other Owners or occupants. No Owner shall permit anything to be done or kept within his Six -Flat Parcel, the Common Area, or other portion of the Property which will increase the rate charged for or cause cancellation of insurance carried by the Association on the Common Area, or which would be in violation of any law. -19- 12.04 Pets. No animals of any kind shall be raised, bred, or kept in any7 of the Units or on any Six -Flat Parcel or in the Buildings except that dogs, cats, or other household pets may be kept in an Apartment subject to the Rules and Regulations, provided they are not kept, bread, or maintained for any commercial purpose; and provided further that any such pet causing or creating a nuisance or unreasonable disturbance shall be permanently removed from the Property upon three (3) days' written notice from the Board. 12.05 Siqns, Etc. Except as provided in Paragraph 4.05, no "For Sale" or "For Rent" signs, advertising, or other displays shall be maintained or permitted on any part of the Property, except at such locations and in such form as may be authorized by the Board. 12.06 No Business Activities. No industry, business, trade, occupation or profession of -any kind, commercial, religious, education or otherwise, designated for profit, altruism, exploitation or otherwise shall be conducted, maintained or permitted in any of the Apartments, Units or Buildings except as provided in Paragraph 4.05. 12.07 Window Coverings. The covering of the interior surfaces of the windows of the Units, whether by shades, draperies or other items visible from the exterior of the Buildings, may be made subject to the rules and regulations of the Board. 12.08 PersonalProperty. There shall be no parking or storage of baby carriages, bicycles, motorcycles, wagons, toys, vehicles, or other personal property on any part of the Property except as permitted by the rules and regulations of the Board. 12.09 Use of Water. The Association shall have the right to use water from the taps or spigots which are attached to Buildings for the purpose of watering the landscaped areas and otherwise maintaining the portions of the property to be maintained by the Association. If the costs of the use of such water is not separately charged or metered to the Association, the Association shall reimburse the Owner who pays for such water on a reasonable basis as agreed upon between the Association Board and Owner. 12.10 Permitted Activities. The restriction of this Article shall not, however, be constru in such a manner as to prohibit any Owner from: (a) maintaining his personal professional library within his Unit; (b) keeping his personal business records or accounts within his Unit; or (c) handling his personal or professional telephone calls or correspondence from his Unit. Such uses are expressly declared customarily incident to the principal residential use of a Unit and not in violation of this Article. _20_ k ARTICLE 13 MISCELLANEOUS 13.01 Managing Agent. Developer reserves the right, directly or through an affiliate, to act as managing agent for the Association and to . receive reasonable compensation for such services, provided that such services shall be subject to termination by Developer or the Association without notice at any time after the Turnover Date. 13.02 Enforcement. In addition to all other rights and remedies herein granted to the Association and the Owner, the Association or any aggrieved or adversely affected Owner may seek to enforce the provisions of this Declaration, its By -Laws, Articles of Incorporation and Rules and Regulations by any proceeding at law or in equity against any person or persons violating or attempting to violate any such provisions. All rights and remedies of the Association or any such Owner may be exercised at any time and from time to time, cumulatively or otherwise, and failure by the Association or any such Owner to enforce any such provision shall in no way be deemed a waiver of the right to do so thereafter. All expenses incurred by the Association or any such Owner in connection with any such proceedings, including attorneys' fees and court and deposition costs, and the amount of any money judgment entered against an Owner shall, together with interest thereon at the maximum legal rate, be charged to and assessed against any Owner violating any such provisions and shall be added to and deemed a part of his assessment and constitute a lien on his Unit and be enforceable as provided in Article 5. 13.03 Severabilit . Invalidation of any provisions of this Declaration judgment or court order shall not affect any other provisions hereof, all of which shall remain in full force and effect. 13.04 Title in Land Trust. In the event title to any Six -Flat Parcel is conveyed to a title -holding trust, under the terms of which all powers of management, operation and control of the Six - Flat Parcel remain vested in the trust, beneficiary or beneficiaries, then the beneficiary or beneficiaries thereunder from time to time shall be responsible for the performance of all agreements, covenants and undertakings chargeable or created under this Declaration against such Six -Flat Parcel. No claim shall be made against any such title -holding trustee personally for payment of any lien or obligation hereunder created and the trustee shall not be obligated to sequester funds or trust property to apply in whole or in part against such lien or obligation. The amount of such lien or obligation shall continue to be a charge or lien upon the Six -Flat Parcel and the beneficiaries of such trust notwithstanding any transfers of the beneficial interest of any such trust or any transfer of title to such Six -Flat Parcel. 13.05 Notices. Any notice required under the prow s oiionns of this Declaration -21- or desired to be given to any member or Owner shall be deemed to have been properly given when either delivered personally, deposited in the United States mail, postage prepaid, addressed to such member or Owner at his last known address, all as shown on the records of the Association at the time of such mailing, or if such address is an Apartment in a Unit, when deposited in the mailbox for that Apartment. 13.06 BindingEffect. The easements created by this Declaration shall be of perpetual duration and the covenants and restrictions of this Declaration shall run with and bind the land, and shall inure to the benefit of and be enforceable by the Association, or the Owner of any Six -Flat Parcel subject to this Declaration, their respective legal representatives, heirs, successors and assigns, for a term of twenty-one (21) years from the date this Declaration is recorded, after which time said covenants shall be automatically extended for successive periods of ten (10) years unless an instrument signed by the Owners of not less than seventy-five percent (75%) of the Six -Flat Parcels has been recorded, agreeing to amend said covenants and restrictions in whole or in part. 13.07 Successors and Predecessors of Declarant orereuDevelo r r . No party exercising rights as Declarant or Developen er s have or incur any liability for the acts of any other party which previously exercised or subsequently shall exercise such rights. 13.08 Amendments to Declaration. Subject to the provisions of Article 6 and the provisions set forth below, the provisions of this Declaration may be amended by an instrument in writing setting forth such amendments and signed by the Owners of at least two-thirds (2/3) of the Six -Flat Parcels, or that is approved at a general or special meeting of members by the affirmative vote of a majority of the votes cast by the Voting Members, in person or by proxy, and containing a certification by an officer of the Association that said instrument was duly approved as aforesaid; except that (i) this Paragraph 13.08 may not be amended without the written consent of all Owners; (ii) Article 6 may not be amended without the written consent of holders of two-thirds (2/3) of the first mortgages (based upon one vote for each Six -Flat Parcel encumbered with a first mortgage) on the individual Six -Flat Parcels; (iii) no provision in Article 8 and no other provision relating to the rights granted hereunder to Declarant or Developer may be amended without the written consent of Developer; and (iv) until the Turnover Date, no amendment to this Declaration shall be effective without the written consent of Developer. Notwithstanding any language to the contrary contained in this Declaration, Declarant reserves the right and power, to be exercised without the consent of any Owner or his First Mortgagee, to record a special amendment ("Special Amendment") to this Declaration and to the Plat at any time and from time to time which causes this Declaration or the Plat (i) to comply with requirements of the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Department of Housing and Urban Development, the Federal Housing -22- Association, the Veteran's Administration, or any other governmental agency or any other public, quasi-public, or private entity which performs (or may in the future perform) functions similar to those currently performed by such entities, (ii) to induce any of such agencies or entities to make, purchase, sell, insure, or guarantee first mortgages covering Six Flat Parcels or Units, (iii) to correct clerical or typographical errors in this Declaration or the Plat or any Exhibit hereto or any supplement or amendment thereto, or (iv) to change or modify any of the terms or conditions of this Declaration and the Plat based upon Declarant's determination, made in good faith, that such change or modification is in the best interests of the Premises and is consistent with the intent and purposes of this Declaration and the Plat. In furtherance of the foregoing, a power coupled with an interest is hereby reserved and granted to the Declarant to vote in favor of, make, or consent to a Special Amendment on behalf of each Owner as proxy or attorney-in- fact, as the case may be. Each deed, mortgage, trust deed, other evidence of obligation, or other instrument affecting a Six Flat Parcel, and the acceptance thereof shall be deemed to be a grant and acknowledgment of, and a consent to the reservation of, the power of the Declarant to vote in favor of, make, execute and record Special Amendments. The right of the Declarant to act pursuant to rights reserved or granted under this Section 13.08 shall terminate at such time as the Declarant no longer holds or controls title to any Six Flat Parcel. No amendment shall be effective until duly recorded in the Office of the Recorder of Deeds of Cook County, Illinois. 13.09 Trustee Exculpation. It is expressly understood and agreed by and between the parties hereto, anything herein to the contrary notwithstanding, that each and all of the representations, covenants, undertakings and agreements of said Declarant are nevertheless, each and every one of them, made and intended not as personal representations, covenants, undertakings and agreements by Declarant or for the purpose of with the intention of binding said Declarant personally, but are made and intended for the purpose of binding only that portion of the trust property specifically described herein, and this instrument is executed and delivered by said Declarant not in its own right, but solely in the exercise of the powers conferred upon it as Trustee, as aforesaid, and that no personal liability or personal responsibility is assumed by nor shall at any time be asserted or enforceable against Declarant or any of the beneficiaries under the Trust Agreement, on account of this instrument or on account of any representation, covenant, undertaking or agreement of the said Declarant in this instrument contained, either express or implied, all such personal liability, if any, being expressly waived and released. It is understood and agreed by the parties hereto, anything to the contrary notwithstanding, that Declarant will act only on the direction of the beneficiaries. IN WITNESS WHEREOF, the said American National Sank and Trust Company of Chicago, as Trustee as aforesaid and not individually, -23- t has caused its corporate seal to be affixed hereunto and has caused its name to be signed by these presents by its President and attested by its __the y an year first above written. AMERICAN NATION.AND TRUST COMPANY OF CHICAGO not individuaO*/,7 .O Trustee as aforesaid By: ! / l/ ATTEST: Its: �E£� fpEbStrEiQ�l .�-v_�� QSS!S;fu' SECRETARY Return to: Bert K. Bittourna c/o The Inland Group, Inc. 2901 Butterfield Road Oak Brook, Illinois 60521 -24- STATE OF ILLINOIS) )ss COUNTY OF ) I, Pamela A. Sin , a Notary Public in and for the County and State a oresai , do hereby certify that_ MICYAYL f9HLLSF `iu- President of American National Bank and Trust Company of Chicago and �j� C�ILIV _'• ,' thereof, persona y own to me to bethe same persons w ase names are subscribed to the foregoing instrument as such Cy President and _ _:..::.: ,: , respectively, appeared ore me this day in person and acknowledged that they signed and delivered the said instrument as their own free and voluntary act and as the free and voluntary act of said Bank, for the uses and purposes therein set forth. GIVEN under my hand and Notarial Seal thisDEC O 9 19* of 1992. My Commission Expires: ,5 / RP / Iti i �i[ / A - — "OFFICIAL SEAL" ANN CSIROS My Comm ss,a' S ,te if Illinois n Expires 5/1/96 -25- EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY LOTS 1 THROUGH 15, INCLUSIVE, IN MEADOW GROVE SUBDIVISION, BEING A SUBDIVISION IN THE EAST HALF OF THE. NORTHWEST QUARTER OF SECTION 27, TOWNSHIP 41 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS, ACCORDING TO THE PLAT THEREOF RECORDED IN THE OFFICE OF THE RECORDER OF DEEDS OF COOK COUNTY, ILLINOIS ON December 22 . 1992 AS DOCUMENT NO. 92 963376 DLR 1152 19/13/92 1135 EXHIBIT "B" LEGAL DESCRIPTION OF THE COMMON AREA LOT 15 IN MEADOW GROVE SUBDIVISION, BEING A SUBDIVISION IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION 27, TOWNSHIP 41 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS, ACCORDING TO THE PLAT THEREOF RECORDED IN THE OFFICE OF THE RECORDER OF DEEDS OF COOK COUNTY, ILLINOIS ON -no ... her 22 , 1992 AS DOCUMENT NO. 92 963376 DLR 1152 10/13/92 1135 EXHIBIT "C" BY-LAWS OF MEADOW GROVE OWNERS ASSOCIATION ARTICLE 1 NAME OF ASSOCIATION The name of this Association is Meadow Grove Owners Association (the "Association"). ARTICLE 2 All terms used in these By -Laws shall have the same definitions as set forth in the Declaration of Covenants, Conditions, Easements, Restrictions and Party Wall Rights for Meadow Grove Owners As$ociation, as amended from time to time (the "Declaration"), to the extent such terms are defined therein. ARTICLE 3 PURPOSES AND POWERS 3.01 Purposes. The purposes of this Association are to own, maintain and administer the Common Area and facilities and improvements thereon, certain other improvements within the Property which lie outside the Common Area, to maintain and pay for certain equipment, services and expenses for the entire Property, and to promote the health, safety and welfare of, and the common use and enjoyment thereof by, its members, all on a not-for-profit basis, subject to and in accordance with the terms and provisions of the Declaration and these By -Laws. 3.02 Powers. The Association shall have and exercise all powers as are now or may hereafter be granted by the General Not - For -Profit Corporation Act of the State of Illinois, the Declaration and these By -Laws. ARTICLE 4 OFFICES 4.01 Registered Office. The Association shall have and continuous y m t n the State of Illinois a registered office and a registered agent whose office shall be identical with such registered office, and may have such other offices within or without the State of Illinois as the Board of Directors may from time to time determine. 4.02 Princi al Office. The principal office of the Association s a e maintained on the Property. ARTICLE 5 MEMBERSHIP, VOTING RIGHTS AND MEETINGS OF MEMBERS 5.01 Membership. As provided in Article 2 of the Declaration, every Owner of a Six -Flat Parcel shall be a member of the Association and such membership shall automatically terminate upon the sale, transfer or other disposition by such member of his Six -Flat Parcel, at which time the new Owner shall become a member. 5.02 Voting Rights. As provided in Article 2 of the Declaration, commencing on the Turnover Date each member shall have one vote for each Six -Flat Parcel such member owns, provided that in no event shall more than one (1) vote be cast with respect to any Six -Flat Parcel. If more than one person owns a Six -Flat Parcel, the vote for that Six -Flat Parcel shall be exercised as all such Owners of that Six -Flat Parcel shall determine. If a Six -Flat Parcel is owned by a trustee, corporation, partnership or other legal entity, the vote for such Six -Flat Parcel shall be exercised as the Owner of that Six -Flat Parcel shall from time to time designate in writing, subject to such applicable provisions as may from time to time be contained in the By -Laws. The person entitled to vote with respect to each Six -Flat Parcel shall be the Voting Member. Prior to the Turnover Date, all voting rights shall be lodged exclusively in the Developer and -the members shall have no voting rights. 5.03 Manner of Actin . Unless otherwise expressly provided by law, in t Dec oration or in these By -Laws, any action that may be taken by the members may be taken at any duly convened meeting at which a quorum of the Voting Members is present, upon the affirmative vote of a majority of the Voting Members voting at such meeting. 5.04 Initial Meeting (Turnover Date); Annual Meetings. The date of the dial meeting of members (the Turnover Date) shall be as provided in Paragraph 3.02 of the Declaration. Thereafter there shall be an annual meeting of members (one of the purposes of which shall be to elect directors), on the second Tuesday of September of each succeeding year at 7:30 p.m., or at such other reasonable time or date (not more than thirty (30) days before or after such date) at such place as designated by the Boards of Directors. 5.05 -special Meetin e. Special meetings of the members may be called at any time to consider matters which by the terms of the Declaration of these By -Laws require the approval of the members, or for any other reasonable purpose. Such meetings may be called by the President of the Association, by a majority of the Board of Directors, or after the Turnover Date, upon the written request of Voting Members having twenty-five percent (25%) of the total votes. 5.06 Notice of Meetin s. Written notice shall be given to each member oT any meeting of members (including the initial meeting) not less than ten (10) nor more than thirty (30) days before the day of such meeting. Notices shall be given by the Secretary at the direction of the President or other persons calling the meeting, and shall state the place, day and hour of the meeting and the purpose or purposes of the meeting. Notices shall be sent to the members at the address furnished by them to the Association for the purpose of service of notices or, if no such address has been furnished, to the Six - Flat Parcel owned by such member. Notices addressed as above shall be deemed delivered when deposited in the United States mail, postage prepaid, or when personally delivered to that address. 5.07 Place of Meetings. All meetings of members shall be held on the Property or such other convenient location as shall be specified in the notice of such meeting. 5.08 Quorum. The presence of any meeting, in person and by proxy, of Voting Members having twenty-five percent (258) of the total votes shall constitute a quorum for any action to be taken by the members except as may otherwise be provided in the Declaration, these By -Laws, or by law. If a quorum is not present at any meeting, a majority of the Voting Members present may adjourn the meeting at any time, without further notice. At any adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the original meeting. withdrawal of Voting Members from any meeting shall not cause failure of any duly constituted quorum at that meeting. 5.09 Proxies. At all meetings of members, a Voting Member may vote eit r in person or by proxy. All proxies shall be in writing and filed with the Secretary. Every proxy shall be revocable and shall automatically be void upon termination by the member of his interest in the Unit. ARTICLE 6 OF DIRECTORS 6.01 In General. The affairs of the Association shall be managed byt�� of Directors, which' commencing with the election of directors on the Turnover Date, shall consist of five (5) persons elected as hereinafter provided. 6.02 h2pointmient by Developer. As provided in.Paragraph 3.02 of the Dec arat n, anti the directors are elected by the Voting Members on the Turnover .Date, the Board shall consist of such persons, but not less than three (3), as Developer shall from time to time designate. 6.03 Votin and Election b Members Number and Term. In all elections or rectors, eac Voting M r s all be entitled to vote on a cumulative voting basis, and the candidates receiving the highest number of votes with respect to the number of offices to be filled shall be deemed to be elected. On the Turnover Date, five (5) directors shall be elected who shall serve until the first annual meeting of the members following the Turnover Date. At the first annual meeting, and at all succeeding annual meetings, the five (5) persons receiving the highest numbers of votes shall be elected to the Board for a term of one (1) year and shall thereafter_ continue in office until his successor shall have been elected and qualified, provided that any director may succeed himself in office. 6.04 Qualifications. Each director (except those appointed by the Deve oper) sha1�be an Owner, provided that if any Owner is a trustee of a trust, a director may be a beneficiary of such trust, and if any Owner or such a beneficiary is a corporation or partnership, a director may be an officer, partner or employee of such Owner or beneficiary. If any director shall cease to meet such qualification during his term, he shall thereupon cease to be a director and his place on the Board shall be deemed vacant. 6.05 Annual Meetings. The first meeting of the elected Board shall be on the Turnover Date, held without further notice other than this By -Law, immediately after and at the same place as the initial meeting of members. Therefore, there shall, without further notice other than this By -Law, be an annual meeting of directors immediately after and at the same place as each annual meeting of members. 6.06 Regular Meetings. In addition to its annual meeting, regular meet gs o t Board shall be held at the Property or at such other place and at such time as a majority of the Board shall by resolution from time to time determine, provided that there shall be not less than one regular meeting each calendar quarter. Notice of such regular meetings of the Board shall be given to each director at least five (5) days prior to the meeting. 6.07 Wial Meetings. Special meetings of the Board may be called by the President or a majority of the directors and shall be held at the Property and at such time as the person or persons calling such special meeting may determine. Notice of any special meeting of the Board shall be given at least three (3) days prior to any such meeting. 6.08 Notice of Meetin s• Contents. Notice of all board meetings a ma or de Iver to all Owners at least forty-eight (48) hours prior thereto, unless a written waiver is signed by the person or persons entitled to such notice before the meeting is convened. Notices of all Board meetings, stating the time and place thereof, shall be given to each Owner and director personally, by mail, or, if the director resides in an Apartment, by depositing a copy in the mailbox of such Apartment. Such notices, if mailed, shall be deemed given two (2) days after they have been deposited in the United States mail, postage prepaid, addressed to the Owner and director at his address as shown on the records of the Association. Notices deposited in the mailbox of the Unit in which an Owner or director resides shall be deemed given when so deposited. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board need be specified in the notice of such meeting, unless specifically required by law or these By -Laws. Copies of notices of meetings of the Board shall be posted at such conspicuous places on the Property as are designated by the Board at least forty-eight (48) hours prior to the meeting of the Board. 6.09 Notice of Meeting: Annual Budget or Special Assessment. Each Owner shall receive written notice in the manner prescribed in 6.08 herein no less than ten (10) days and no more than thirty (30) days prior to any meeting of the board concerning the adoption of the proposed annual budget or any increase of establishment of an assessment. 6.10 Waiver of Notice. Any Owner or director may waive notice of any meeting prior to the time the meeting is convened. The attendance of an Owner or director at any meeting shall constitute a waiver of notice of such meeting, except where an Owner or director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. 6.11 Quorum. A majority of the directors serving from time to time on the Board shall constitute a quorum for the election of officers and for the transaction of business at any meeting of the Board, provided that if less than a quorum is present, a majority of the directors present may adjourn the meeting from time to time without further notice. 6.12 Manner of Actin . Except as otherwise expressly provided by-law, the Dec aration of these By -Laws, any action of the directors may be taken upon the affirmative vote of a majority of the directors at which a quorum is present. 6.13 Compensation; Reimbursement for Expenses. Directors shall receive no campensat on or it sery ces, but shall be reimbursed for reasonable out-of-pocket expenses incurred in the course of the performance of .their duties upon presentation of receipts or other appropriate evidence of such expense. 6.14 Removal of Resicanation of Directors. Any director elected on or—aft—erIT5 Turnover Date may be removed from office, with or without cause, by the affirmative vote of at least two- thirds (2/3) of the Voting Members at any meeting of members called for such purpose. Any director may resign at any time by submitting his written resignation to the Board. If a director ceases to be a member of the Association, he shall be deemed to have resigned as of the date his membership ceased. 6.15 Vacancies. Any vacancy occurring in the Board of Directors shall be filled by election at the next annual meeting of members or at a special meeting of members that may be called for that purpose and held prior to such annual meeting. Any director elected by the members to fill a vacancy shall serve for the balance of the unexpired term of his predecessor in office. Prior to the filling of such vacancy by the members, directors may elect a director to temporarily fill any vacancy, provided that any director so elected shall serve only until such vacancy is filled by election by the members, as provided herein. 6.16 Open Meings. Meetings of the Board shall be open to any owner excep et0 the portion of any meeting held (i) to discuss litigation when an action against or on behalf of the Association has. been filed and is pending in a court or administrative tribunal, or when the Board finds that such an action is probable or imminent, (ii) to consider information regarding appointment, employment or dismissal of an employee, or (iii) to discuss violations of rules and regulations of the Association or unpaid common expenses owed to the Association. Any vote on the foregoing matters shall be taken at a meeting or portion thereof open to any owner. Any owner may record the proceedings at meetings required to be open by tape,.film or other means; provided, however, that the Board may prescribe reasonable rules and regulations to govern the right to make such recordings. ARTICLE 7 POWERS AND DUTIES OF BOARD OF DIRECTORS 7.01 The Board shall have and exercise all the powers, duties and authority vested in the Association By -Law, the Declaration and these By -Laws, except those expressly reserved to the members. without limiting the generality of the foregoing, the Board shall: (a) Prepare, adopt and distribute to Owners an annual budget and any revisions thereto and to distribute same to each Owner in accordance with and as more fully set forth in the Declaration. (b) Levy and collect assessments from the Owners. (c) Pay the expenses of the Association, including all real estate and other taxes on the Common Area and all facilities and improvements thereon. (d) Procure and maintain fire and extended coverage insurance on the Common Area facilities as provided in the Declaration, and such public liability, workmen's compensation, fidelity, directors and officers liability, and other insurance in such amounts and insuring against such risks as the Hoard deems desirable. (e) Engage the services of a professional manager for the Association and its property and such other personnel and servicers, including accountants and attorneys, as the Board may, in its discretion, deem necessary or desirable. (f) Adopt and amend from time to time Rules and Regulations as authorized under Paragraph 4.01 (a) of the Declaration. Written notice of such Rules and Regulations and of any amendments shall be given to all Owners, and the entire Property shall at all times be maintained subject to such Rules and Regulations, provided that with respect to any Rules and Regulations or any amendment thereto adopted on or after the Turnover Date, if within (30) days from the date of such written notice to the Owners of the adoption thereof, the Voting Members having at least one-fourth (1/4) of the total votes shall file with the Board a written objection thereto, then such Rule or Regulation shall be deemed rescinded until approved by the Voting Members having at least a majority of the total votes. (g) Keep detailed accurate records of the receipts and expenditures affecting the use and operation of the Property. (h) Borrow money and mortgage the Common Area as authorized by and subject to the provisions of Paragraph 4.01 (b) of the Declaration. (i) Cause to be executed and delivered, in the name and on behalf of the Association, such agreements in favor of mortgages of Six -Flat Parcels or others as may be required to qualify said mortgages for sale to the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (j) Maintain the following records of the Association available for examination and copying at convenient hours of weekdays by any Owners or their mortgagees and their duly authorized agents or attorneys: (1) Copies of the recorded Declaration, other duly recorded covenants and By -Laws and any amendments, articles or incorporation of the Association, annual reports and any rules, and regulations adopted by the Association or the Board. Prior to the organization of the Association, the Developer shall maintain and make available the records -set forth in this subsection (1) for examination and copying. - (2) Detailed accurate records in chronological order of the receipts and expenditures affecting the Common Areas, specifying and itemizing the maintenance and repair expenses of the Common Areas and any other expenses incurred, and'copies of all contracts, leases, or other agreements entered into by the Association shall be maintained. (3) The minutes of all meetings of the Association and the Board shall be maintained. The Association shall maintain these minutes for a period of not less than seven (7),years. (4) Ballots, if any, for any election held for the Board and for any other matters voted on by the Owners shall be maintained for a period of not less than one (1) year. (5) Such other records of the Association as are available for inspection by members of a not-for-profit corporation pursuant to Section 25 of the General Not -for -Profit Corporation Act shall be maintained. (6) A reasonable fee may be charged by the Association or its Board for the cost of copying. (k) Standing of Board. The Board shall have standing and capacity to act in a representative capacity in relation to matters involving the Common Areas of the Association or more than one Six -Flat Parcel on behalf of the Owners as their interest may appear. ARTICLE 8 OFFICERS 8.01 Officers. The officers of the Association shall be a President, one or more Vice Presidents, a Secretary, a Treasurer, and such other officers as the Board may deem appropriate. All officers shall be elected at each annual meeting of the Board and shall hold office at the pleasure of the Board. 8.02 Vacancy of Office. Any officers may be removed at any meeting of the Board by the affirmative vote of a majority of the directors in office, either with or without cause, and any vacancy in any office may be filled by the Board at any meeting thereof. 8.03 Powers of Officers. The respective officers of the Association s ve suc powers and duties as are usually vested in such office of a not-for-profit corporation, including, but not limited to, the following: (a) The President shall be the chief executive officer of the Association and shall preside at all meetings of the members and of the Board. (b) The Vice President shall, in the absence or the disability of the President, perform the duties and exercise the powers of such office. (c) The Secretary shall keep minutes of all meetings of the members and of the Board and shall have custody of the Association seal, and such other books, papers and documents as the Board may prescribe. (d) The Treasurer shall be responsible for Association funds and securities and for keeping full and accurate accounts of all receipts and disbursements in the Association books of account kept for such purpose. ARTICLE 9 COMMITTEES 9.01 Board Committees. The Board, by resolution adopted by a majority o erectors in office, may designate one or more committees, each of which shall consist of two or more directors. Said committees, to the extent consistent with law and as provided in said resolution, shall have and exercise the authority of the Board in the management of the Association, but the designation of such committees and the delegation thereof of authority shall not operate to relieve the Board or any individual director of any responsibility imposed on it or him by law, nor shall such delegation impair the rights of Owners and directors to notice of meetings of the Board. 9.02 Special Committees. Other committees not having and exercising the authority of the Board in the management of the Association may be designated by a resolution adopted by a majority of the directors present at a meeting at which a quorum is present. Except as otherwise provided in such resolution, members of each such committee shall be members of the Association, and the President of the Association shall appoint the members thereof. Any member thereof may be removed by the person or persons authorized to appoint such member whenever in their judgement the best interests of the Association shall be served by such removal. 9.03 Term. Each member of a committee shall continue as such until Tie next annual meeting of the Board and until his successor is appointed, unless the committee shall be sooner terminated, or unless such member shall cease to qualify as a member thereof. 9.04 Chairman. One member of each committee shall be appointed 61 rman. 9.05 Vacancies. Vacancies in the mmmtbez'ship of any committee may be fillga-W-a—ppointment made in the same manner as provided in the case of the original appointments. 9.06 Quorum. Unless otherwise provided in the resolution of the Board designating a committee, a majority of the whole committee shall constitute a quorum and the act of a majority of the members present at a meeting at which a quorum is present shall be the act of the committee. 9.07 Rules. Each committee may adopt rules for its own government -not with the Declaration, these By -Laws or with rules adopted by the Board. ARTICLE 10 CONTRACTS, CHECKS, DEPOSITS AND FUNDS 10.01 Contracts. The Board may authorize any officer or officers, agent or agents of the Association, in addition to the officers so authorized by these By -Laws, to enter into any contract and to execute and deliver any instrument in the name of and on behalf of the Association, and such authority may be general or confined to specific instances. In the absence of any such authorization by the Board, any contract or other instrument shall be executed by the President or Vice President and attested to by the Secretary or an Assistant Secretary of the Association. 10.02 Payments. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Association shall be signed by such officer or officers, agent or agents of the Association, and in such manner as shall from time to time be determined by resolution of the Board. In the absence of such determination by the Board, such instruments shall be signed by the Treasurer or an Assistant Treasurer and countersigned by the President or a Vice President of the Association. 10.03 Bank Accounts. All funds of the Association not otherwise employed shall deposited from time to time to the credit of the Association in such banks, trust companies -or other depositories as the Board may select. 10.04 Special Receei tss.. The Board may accept on behalf of the Association any contribution, gift, bequest or devise for the general purposes or for any special purpose of the Association. ARTICLE 11 FISCAL MANAGE 11.01 Fiscal Year. The fiscal year of the Association shall begin on theist may of January each year, except that the first fiscal year shall begin at the date df incorporation, and shall end on the last day of December of each year. 11.02 Financial Statements. On or before April 15 of each year following the lia-tTa-1--m-eeting of directors after the Turnover Date, the Association shall furnish its members with an itemized accounting of the common expenses of the Association for the preceding fiscal year, actually incurred or paid, together with a tabulation of the amounts collected pursuant to the budget or assessment and showing the net excess or deficit of income over expenditures plus reserves. 11.03 Annual Assessments. The Board in its sole discretion shall determine the annua monthly assessments in accordance with the Declaration. 11.04 Special Assessments. Special assessments may be authorized in accordance with the Declaration. ARTICLE 12 BOOKS AND RECORDS The Association shall keep correct and complete books and records of account and shall also keep minutes of the proceedings of its members, Board and committees having any of the authority of the Board, and shall keep at the registered or principal office a record giving the names and addresses of the members. All books and records of the Association may be inspected by any member or his agent or attorney, for any proper purpose at any reasonable time. ARTICLE 13 SEAL The Board may provide for a corporate seal which shall be in the form of a circle and shall have inscribed thereon the name of the Association. ARTICLE 14 WAIVER OF NOTICE Whenever any notice what is required to be given under the provisions of the General Not -For -Profit Corporation Act of Illinois, the provisions of these By -Laws, or the Declaration, a waiver in writing signed by the person or persons entitled tc such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving us such notice. ARTICLE 15 These By -Laws may be amended or modified at any time or from time to time at any meeting of the members at which a quorum is present, by the affirmative vote of a majority of the votes cast by the Voting Members, provided that (i) no amendment affecting the rights granted by these By -Laws to Developer shall be effective unless consented to in writing by Developer; (ii) no provisions of these By -Laws shall conflict with the Declaration; and (iii) prior to the Turnover Date the directors may, without a meeting or approval of members, make any amendments they deem necessary or desirable, including any required by any mortgage lender or insurer, or by the Federal National Mortgage Association or the Federal Home Loan Mortgage corporation as a condition to granting, insuring or acquiring any interest in a mortgage on a Six -Flat Parcel, including any amendment which increases the rights of mortgagees. ARTICLE 16 I$z0VDi ga37 V;'41b M In the case of any conflict between the Declaration and these By -Laws, the Declaration shall control.