Campus Commons East Ranch

CC & Rs

Table of Contents

Campus Commons East Ranch Homeowner’s Association
150 East Ranch Road Sacramento CA 95825
(916) 485-1400










SECOND RESTATED DECLARATION
OF COVENANTS, CONDITIONS AND RESTRICTIONS
(Of CAMPUS COMMONS EAST RANCH, Revised May, 1999)








Recording Requested By and Mail To:
Name: Campus Commons East Ranch Homeowner’s Association
Street: 150 East Ranch Road
City: Sacramento, CA 95825

















TABLE OF CONTENTS

Article / Section Title Page
Recitals . . . . . . . . 1

Article I Definitions . . . . . . . . 2
Section 1 Articles . . . . . . . . 2
Section 2 Assessment . . . . . . . . 2
Section 3 Association . . . . . . . . 2
Section 4 Association Rules . . . . . . . . 2
Section 5 Board of Directors . . . . . . . . 2
Section 6 Bylaws . . . . . . . . 2
Section 7 Charter Documents . . . . . . . . 2
Section 8 Common Area . . . . . . . . 2
Section 9 Common Facilities . . . . . . . . 2
Section 10 Common Funds . . . . . . . . 3
Section 11 Common Expense . . . . . . . . 3
Section 12 County . . . . . . . . 3
Section 13 Declarant . . . . . . . . 3
Section 14 Declaration . . . . . . . . 3
Section 15 Family . . . . . . . . 3
Section 16 Lot . . . . . . . . 3
Section 17 Member . . . . . . . . 3
Section 18 Mortgage . . . . . . . . 3
Section 19 Owner . . . . . . . . 3
Section 20 Owner of Record . . . . . . . . 4
Section 21 Properties . . . . . . . . 4
Section 22 Regular Assessment . . . . . . . . 4
Section 23 Residence . . . . . . . . 4
Section 24 Single Family Residential Use . . . . . . . . 4
Section 25 Special Assessment . . . . . . . . 4
Section 26 Special Individual Assessment . . . . . . . . 4

Article II Property Rights . . . . . . . . 4
Section 1 Owner's Non-Exclusive Easements
of Enjoyment . . . . . . . . 4
Section 2 Delegation of Use . . . . . . . . 5
Section 3 Notification Regarding
Charter Documents . . . . . . . . 6

Article III Homeowner's Association . . . . . . . . 6
Section 1 Association Membership . . . . . . . . 6
Section 2 One Class of Membership . . . . . . . . 7
Section 3 Voting Rights of Membership . . . . . . . . 7
Section 4 Assessments . . . . . . . . 7
Section 5 Transfer of Memberships . . . . . . . . 7
Section 6 Rights and Duties of the Association
Board of Directors . . . . . . . . 7
Section 7 Powers and Authority of . . . . . . . .
the Association . . . . . . . . 7
Section 8 Association Rules . . . . . . . . 7
Section 9 Breach of Rules or Restrictions . . . . . . . . 8
Section 10 Limitation on Liability of the
Association and the Association's
Directors and Officers . . . . . . . . 8

Article IV Assessments . . . . . . . . 9
Section 1 Assessments Generally . . . . . . . . 10
Section 2 Regular Assessments . . . . . . . . 10
Section 3 Special Assessments . . . . . . . . 11
Section 4 Special Individual Assessments . . . . . . . . 11
Section 5 Purpose and Reasonableness
of Assessments . . . . . . . . 12
Section 6 Exemption of Certain of the
Properties from Assessments . . . . . . . . 12
Section 7 Notice and Procedure for any Action
Authorized Under Section 2 and 3 . . . . . . . . 12
Section 8 Maintenance of Assessment Funds . . . . . . . . 12
Section 9 Effect of Non-Payment of Assessments;
Enforcement of Liens . . . . . . . . 13
Section 10 Transfer of Lot by Sale or Foreclosure . . . . . . . . 14
Section 11 Priorities . . . . . . . . 15
Section 12 Unallocated Taxes . . . . . . . . 15
Section 13 Assignment of Rents . . . . . . . . 15
Section 14 Waiver of Exemptions . . . . . . . . 15

Article V Architectural Control . . . . . . . . 15
Section 1 Improvements in General; Establishment of
Architectural Committee . . . . . . . . 15
Section 2 Common Areas . . . . . . . . 16

Article VI Allocation of Maintenance
Responsibilities . . . . . . . . 16
Section 1 Association's Maintenance Obligations . . . . . . . . 16
Section 2 Owner's Maintenance Obligations . . . . . . . . 17
Section 3 Cost of Certain Repairs and Maintenance . . . . . . . . 17
Section 4 Automatic Garage Door Openers . . . . . . . . 17

Article VII Use of Properties and Restrictions . . . . . . . . 17
Section 1 Single Family Residential Use . . . . . . . . 17
Section 2 Lots . . . . . . . . 17
Section 3 Common Areas . . . . . . . . 18
Section 4 Use of the Properties . . . . . . . . 18
Section 5 Prohibition of Noxious Activities . . . . . . . . 18
Section 6 Temporary Structures . . . . . . . . 18
Section 7 Household Pets . . . . . . . . 18
Section 8 Signs . . . . . . . . 18
Section 9 Business Activities . . . . . . . . 19
Section 10 Garbage and Storage . . . . . . . . 19
Section 11 Clotheslines . . . . . . . . 19
Section 12 No Exterior Maintenance by Owners
Limitations on Right To Landscape Lots . . . . . . . . 19
Section 13 Outside Colors . . . . . . . . 20
Section 14 Cooperative Maintenance Obligations . . . . . . . . 20
Section 15 Interior Improvements . . . . . . . . 20
Section 16 Antennas . . . . . . . . 20
Section 17 Barbecues . . . . . . . . 20
Section 18 Basketball Standards . . . . . . . . 20
Section 19 Machinery and Equipment . . . . . . . . 20
Section 20 Diseases and Insects . . . . . . . . 20
Section 21 Parking; Trailers, Boats, and Motor
Vehicles . . . . . . . . 20
Section 22 Children . . . . . . . . 21
Section 23 Limitation on the Number of Children . . . . . . . . 21
Section 24 Activities Affecting Insurance . . . . . . . . 21
Section 25 Restriction on Further Subdivision and
Severability . . . . . . . . 21
Section 26 Use of Private Streets in Common Area . . . . . . . . 21

Article VIII Easements . . . . . . . . 22
Section 1 Encroachment Easements . . . . . . . . 22
Section 2 Maintenance Easement . . . . . . . . 22
Section 3 Boundary Changes . . . . . . . . 22
Section 4 Blanket Utility Easement . . . . . . . . 22
Section 5 Street Easements . . . . . . . . 22
Section 6 Other Easements . . . . . . . . 22
Section 7 Priority of Easements . . . . . . . . 22

Article IX Insurance . . . . . . . . 23
Section 1 Liability Insurance . . . . . . . . 23
Section 2 Fire and Extended Coverage insurance . . . . . . . . 23
Section 3 Copies of Policies . . . . . . . . 23
Section 4 Individual Fire Insurance Limited . . . . . . . . 23
Section 5 Trustee . . . . . . . . 23
Section 6 Other Insurance . . . . . . . . 24
Section 7 Owner's Insurance . . . . . . . . 24
Section 8 Adjustment of Losses . . . . . . . . 24
Section 9 Distribution to Mortgagees . . . . . . . . 24
Section 10 Additional Insurance and Bonds . . . . . . . . 24

Article X Damage or Destruction . . . . . . . . 24

Article XI Breach and Default . . . . . . . . 25
Section 1 Remedy at Law Inadequate . . . . . . . . 25
Section 2 Nuisance . . . . . . . . 25
Section 3 Costs and Attorney's Fees . . . . . . . . 25
Section 4 Cumulative Remedies . . . . . . . . 25
Section 5 Failure Not a Waiver . . . . . . . . 25
Section 6 Suspension of Rights . . . . . . . . 25

Article XII Amendment and Duration of Declaration . . . . . . . . 26
Section 1 Amendment . . . . . . . . 26
Section 2 Duration . . . . . . . . 26

Article XIII Protection of Mortgagees . . . . . . . . 26
Section 1 Assessment Lien Subordinated . . . . . . . . 26
Section 2 Amendment of This Declaration . . . . . . . . 27
Section 3 Additional Subordinations . . . . . . . . 27
Section 4 Default by Owner, Mortgagee's
Right to Vote . . . . . . . . 27
Section 5 Breach; Obligation After Foreclosure . . . . . . . . 27
Section 6 Exchange of Information . . . . . . . . 27
Section 7 Certain Restrictions Affecting
the Association . . . . . . . . 27
Section 8 Right of First Mortgagees to Make
Certain Payments and Right of
Reimbursement Therefor . . . . . . . . 28
Section 9 Right to Examine Books and Records
of the Association . . . . . . . . 28
Section 10 Notices to First Mortgagees . . . . . . . . 28
Section 11 Superiority of Mortgage to
Condemnation Proceeds . . . . . . . . 28
Section 12 Superiority of Mortgage to
Insurance Proceeds . . . . . . . . 28
Section 13 Amendments to Conform with Mortgagee
Requirements . . . . . . . . 28

Article XIV Notices . . . . . . . . 29
Section 1 Mailing Addresses . . . . . . . . 29
Section 2 Personal Service Upon Co-Owners
and Others . . . . . . . . 29
Section 3 Deposit in U.S. Mails . . . . . . . . 29

Article XV Miscellaneous . . . . . . . . 29
Section 1 Construction and Severability:
Singular and Plural; Titles . . . . . . . . 29

Covenants, etc.

Campus Commons East Ranch Homeowners Association
150 East Ranch Road Sacramento, CA 95825
(916) 485-1400


SECOND RESTATED DECLARATION
OF COVENANTS, CONDITIONS AND RESTRICTIONS
of
CAMPUS COMMONS EAST RANCH
Revised May, 1999

The Declaration, executed by Robert C. Powell Developments, a California corporation, ("Declarant") entitled Declaration of Covenants, Conditions and Restrictions and recorded in the office of the Sacramento County Recorder at Book 68-08-09, Page 583, as amended by "Amendment to Declaration of Covenants, Conditions and Restrictions" recorded in Book 76-09-13, Page 762 and as further amended by "Amendment to Declaration of Covenants, Conditions and Restrictions" recorded in Book 76-09-24, Page 730- (which Declaration, as so amended, shall be referred to herein as the "Original Declaration"), which Declaration effects all of the Properties described and commonly known as Campus Commons East Ranch, is hereby amended and restated in its entirety to read as follows:


RECITALS

1. Declarant was the owner of certain property in the County of Sacramento, State of California, which is more particularly described as follows: Lots 1 through 114, inclusive, and Lot, 115-C as shown on the official plat of Campus Commons East Ranch, recorded in the office of the Recorder of Sacramento County, California, in Book 103 of Maps, Map No 18.

2. Declarant conveyed the Properties, subject to certain easements, protective covenants, conditions, restrictions, reservations, liens and charges as set forth in the Original Declaration referred to above, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of Properties and all of which shall run with the Properties and be binding on all parties having or acquiring any right, title or interest in the Properties, or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each Owner thereof.

3. It was the further intention of the Declarant to sell and convey residential Lots improved by residence units originally constructed by Declarant to the Owners, subject to the protective covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes between Declarant and such Owners which are set forth in this Declaration and which are intended to be in furtherance of a general plan for the subdivision, development, sale and use of the Properties as a "planned development" as that term is defined in Section 1351(k) of the California Civil Code. Finally, it was the intention of Declarant that the "Common Facilities" will be owned and maintained by the Association, but reserved exclusively for the use and enjoyment of the Members of the Association, their tenants, lessees, guests and invitees all subject to the terms and conditions of this Declaration, the Articles and the Bylaws.

4. On May 1, 1986, 51% of the voting power of the Members of Campus Commons East Ranch Homeowners Association (the successor in interest to the Declarant) voted by written ballot to amend and restate the Original Declaration, all in accordance with the procedures for amendment set forth in Section 3 of Article Vlll of the Original Declaration. As so amended and restated, these easements, covenants, restrictions, and conditions shall run with the Properties and shall be binding on all parties having or acquiring any right, title or interest in the Properties or any portion thereof, and stall inure to the benefit of each Owner thereof.

5. On May 20, 1999, 75% of the voting power of the Members of Campus Commons East Ranch Homeowners Association (the successor in interest to the Declarant) voted by written ballot to amend and restate the Original Declaration, all in accordance with the procedures for amendment set forth in Section 3 of Article Vlll of the Original Declaration. As so amended and restated, these easements, covenants, restrictions, and conditions shall run with the Properties and shall be binding on all parties having or acquiring any right, title or interest in the Properties or any portion thereof, and stall inure to the benefit of each Owner thereof.



ARTICLE I

Definitions

Section 1. "Articles" shall mean the Articles of Incorporation of Campus Commons East Ranch Homeowners Association, which are filed in the Office of the Secretary of State of the State of California.

Section 2. "Assessment" means any Regular, Special or Special Individual Assessment made or assessed against an Owner and his Lot in accordance with the provisions of Article IV of this Declaration.

Section 3. "Association" shall mean and refer to CAMPUS COMMONS EAST RANCH HOMEOWNERS ASSOCIATION, a California non-profit mutual benefit corporation, its successors and assigns.

Section 4. "Association Rules" shall mean the rules adopted by the Board of Directors of the Association, as the same may be in effect from time to time pursuant to Article ill, Section 8 of this Declaration.

Section 5. "Board of Directors" or "Board" shall mean the Board of Director's the Association.

Section 6. "Bylaws" shall mean the Bylaws of the Association, as such Bylaws may, from time to time, be amended.

Section 7. "Charter Documents" shall refer collectively to this Declaration, the Articles, the Bylaws and the Association Rules, and to any amendments to such documents.

Section 8. "Common Area" shall mean all real property owned by the Association for the common man use and enjoyment of the Owners. The Common Area owned by the Association as of the date of execution of this Declaration is described as follows: Lot 115-C as shown on the Subdivision Map,

Section 9. "Common Facilities" means the swimming pool and apron area, pool storage and pump house, the club house, tennis courts, jacuzzi and sauna, pool furniture, and the trees, hedges, plantings, lawns, shrubs, landscaping, fences, utilities, berms, pipes, lines, lighting fixtures, buildings, structures and other facilities constructed or installed, or to be constructed or installed, or currently located on the Common Area and owned by the Association.

Section 10. "Common Funds" means all funds collected or received by the Association (i) for use in the maintenance, management, administration, insurance, operation, replacement, repair, addition to, alteration or reconstruction of, all or any portion of the Common Area and Common Facilities and (ii) for use in discharging any and all of its functions as provided for in its Articles of Incorporation, the Bylaws and this Declaration.


Section 11. "Common Expense" means any use of Common Funds authorized by Article IV and includes (i) all expenses or charges for the management, maintenance, administration, insurance, operation, repairs, additions, alterations or reconstruction of the Common Facilities as incurred or as may be estimated from time to time by the Association and/or its Board of Directors, (ii) all expenses or charges for the insurance of residential structures located on Lots and for the exterior maintenance and repair thereof in accordance with Articles IX and VI hereof, respectively, (iii) any amounts reasonably necessary for reserves for maintenance and for non-payment of any assessments, (iv) the costs and expenses of the Association in the performance of its functions as provided for in its Articles of Incorporation, the Bylaws, or this Declaration, and (v) an adequate reserve fund for replacement of Common Facilities the replacement of roofs on residential structures and the performance of other periodic maintenance functions with respect to residential structures on Lots. The amount of reserve funds shall be established and reviewed on an annual basis of the Board of Directors of the Association and funded by Regular Assessments.

Section 12. "County" means the County of Sacramento, State of California.

Section 13. "Declarant" shall mean and refer to the project developer of the Properties, namely, Robert C. Powell Developments, a California corporation, its successors and assigns.

Section 14. "Declaration" shall mean this Restated Declaration of Covenants, Conditions and Restrictions as such Declaration may, from time to time, be amended. The "Original Declaration" shall mean the documents referenced in the preamble to this Declaration.

Section 15. "Family" shall mean one or more persons each related to the other by blood, marriage or legal adoption, or a group of not more than three persons not so related who maintain a common household in a Residence.

Section 16. "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision map of the Properties excluding the Common Area, and to the Residences and other improvements constructed on a Lot.

Section 17. "Member" shall mean and refer to every person or entity who holds a membership in the Association and whose rights as a Member are not suspended pursuant to Article XI Section 6 hereof.

Section 18. "Mortgage" means any security device encumbering all or any portion of the Properties, including a deed of trust. "Mortgagee" means and refers to a beneficiary under a deed of trust as well as a mortgagee in the conventional sense.

Section 19. "Owner" means any person, firm, corporation or other entity which owns a fee simple interest in any Lot (including contract sellers, but excluding those having such interest merely as security for the payment of a debt or the performance of an obligation) and includes (except when the context otherwise requires) the family, guests, tenants, and invitees of such Owner. A contract seller of a Lot must delegate his or her voting rights as a Member of the Association and his or her rights to the use and enjoyment of the Common Areas and Common Facilities to the contract vendee. However, the contract seller shall remain liable for any default in the payment of assessments by the contract vendee until title to the property sold has been transferred to the vendee.

Section 20. "Owner of Record" and Member of the Association" include an Owner and mean any person, firm, corporation or other entity in which title to a Lot is vested as shown by the official records of the Office of the County Recorder.

Section 21. "Properties" shall mean and refer to that certain real property described in the first Recital to this Declaration and such additions thereto as may thereafter be brought within the jurisdiction of the Association.

Section 22. "Regular Assessment" means an assessment levied on Owner and his Lot in accordance with Article IV, Section 2 hereof.

Section 23. "Residence" shall mean a townhome unit situated on a Lot and used for Single Family Residential purposes by an Owner and his family.

Section 24. "Single Family Residential Use" shall mean occupation and use of a Residence for single family dwelling purposes in conformity with this Declaration and the requirements imposed by applicable zoning laws or other state or municipal rules and regulations. In no event shall a residence be occupied by more individuals than permitted by applicable zoning law or governmental regulation.

Section 25. "Special Assessment" means an assessment levied on an Owner and Lot in accordance with Article IV, Section 3 hereof.

Section 26. "Special Individual Assessment" means an assessment made against an Owner and his Lot in accordance with Article IV, Section 4 hereof.

ARTICLE II

Property Rights

Section 1. Owners' Non-Exclusive Easements of Enjoyment. Every Owner shall have a right and easement of enjoyment in and to the Common Area, including ingress and egress to and from his or her Lot, which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:

(a) The right of the Association to charge reasonable admission and other fees for the use of any recreational facility situated upon the Common Area.

(b) The right of the Association to suspend the voting rights and right to use of the Common Area recreational facilities by an Owner for any period during which any assessment against his or her Lot remains unpaid.

(c) The right of the Association to adopt rules and regulations as provided in Article III, Section 8 hereof, and after prior notice and a hearing before the Board (in accordance with Article Xl, Section 6 hereof), to temporarily suspend the voting rights and right to the use of Common Area recreational facilities by any Owner, the Owner's tenants and guests.

(d) The right of the Association, to the extent reasonably necessary to protect the rights, privileges, benefits, uses and enjoyment of the Members in common, to limit the number of guests of Members who may use recreational Common Facilities and to adopt uniform rules and regulations pursuant to Section 8 of Article III hereof regulating use and enjoyment of the Properties.

(e) The right of the Association to control the use of unassigned parking and storage spaces within the Common Area.

(f) The right of the Association, or its agents, when necessary, to enter any Lot in order to gain access to the exterior of any Residence to perform its obligations under this Declaration, including the enforcement of restrictions, any obligations with respect to construction, maintenance, repair and painting (including watering, planting, cutting, removing and otherwise caring for the landscaping up to the exterior walls of the living units on each Lot) as necessary for the benefit of the Common Area or the Owners in common, or to make necessary repairs that an Owner has failed to perform which, if left undone, will pose a threat to, or cause an unreasonable interference with, Association property even if the homeowner denies reasonable access. The Association's right of entry for the purposes aforestated shall be immediate in case of an emergency originating in or threatening such Lot, and the Association's work may be performed under such circumstances whether or not the Owner or his lessee is present. In all non-emergency situations the Association, or its agents, shall furnish the Owner or his lessee with at least 24 hours written notice of its intent to enter the Lot, specifying the purpose of such entry and shall make every reasonable effort to perform its work and schedule its entry in a manner which respects the privacy of the Lot Owner or his lessee.

(g) The right of the Association, in accordance with its Articles and Bylaws, to borrow money for the purpose of improving the Common Area and Common Facilities and in aid thereof to mortgage said property; provided, however, that the rights of any such mortgagee in said properties shall be subordinate to the rights of the Owners hereunder.

(h) The right of the Association to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed by the Owners. No such dedication or transfer shall be effective unless an instrument, signed by at least 51% of the voting power of the Owners, consenting to such dedication or transfer has been recorded. Said instrument may be executed in counterpart so long as each of the counterparts is in recordable form. Notwithstanding the foregoing, no such dedication shall impair the ingress and egress to any individual Lot.

Section 2. Delegation of Use.

(a) Delegation of Use and Leasing of Residences, Generally. Any Owner may delegate, in accordance with the Bylaws, this Declaration and the Association Rules, his or her right of enjoyment of the Common Areas and Common Facilities to the members of the Owner's family or to the Owner's tenants or contract purchasers who reside in the Owner's Residence; provided that any rental or lease of the Owners' Residence may only be to a single family for Single Family Residential Use and for a term no less than 90 days; and provided, further, that during any period when a Residence has been rented or leased, the Owner, his family, guests and invitees shall not be entitled to use and enjoy the Common Facilities of the Properties while the Owner's Residence is occupied by such tenant or lessee, except to the extent reasonably necessary to perform the Owner's responsibilities as a lessor of the Residence and to gain ingress and egress from the Properties, unless the Owner is contemporaneously residing in another Residence within the Properties.
Any rental or lease of a Residence shall be subject to the provisions of the Charter Documents, all of which shall be deemed to be incorporated by reference in the lease or rental agreement. Each tenant or lessee shall be provided with a copy of this Declaration, and any amendments thereto, by the Owner so renting or leasing. The Owner shall at all times be responsible for compliance of Owner's tenant or lessee with all applicable Charter Document provisions during the tenant's/lessee's occupancy and use of the Residence. An Owner must delegate, in accordance with the Bylaws and this Declaration, his right of enjoyment to the Common Area and Common Facilities and his membership rights to his contract purchaser/vendee.

(b) Discipline of Lessees. In the event that any tenant or lessee fails to honor the provisions of any Charter Document, the Association shall so notify the Owner and give the Owner a reasonable opportunity to take corrective action or to be heard before the Board if the Owner feels corrective action is unwarranted or unnecessary. If the Owner fails to take necessary corrective action with respect to a tenant or lessee in violation of the Charter Documents and does not request a hearing on the matter, the Board shall be entitled to take such corrective action as it deems appropriate under the circumstances which may include suspension of the tenant's privileges to use Common Areas and/or Common Facilities or the imposition of fines and penalties on the Owner. All hearings and any disciplinary action shall be conducted in accordance with the requirements of subparagraph (d) of this Section 2 and Article XI, Section 6 hereof.

(c) Association's Right to Initiate Eviction Proceedings to Protect the Common Interests. In the event a tenant's conduct involves material damage to, or misuse of, the Common Areas or Common Facilities, or constitutes an unreasonable nuisance to neighboring Lot Owners, the Association shall be entitled to maintain an eviction action against such tenant to the same extent as the Owner of the subject Lot, the Association being deemed to be a third party beneficiary of any lease agreement involving any Residence located within the Properties. The Associations rights hereunder shall be subject to the due process requirements of subparagraph (d) below.

(d) Due Process Requirements for Disciplinary Action. The Association's right to maintain an eviction hereunder, or to take other disciplinary action against a tenant, shall arise only in the event that the lessor-Owner has not taken action on his or her own to prevent and/or correct the actions of the Owner's tenant that constitute a nuisance violation of the Charter Documents or an unreasonable interference with, or threat to, The rights of quiet enjoyment by neighboring property Owners, after the lessor-Owner has received written notice from the Association., or an authorized committee of the Board, detailing the nature of the tenant's infraction, and has had a reasonable opportunity either to take appropriate corrective action on a voluntary basis or to appear before the Board, or a duly authorized committee thereof, to present arguments as to why such action is unwarranted or unnecessary. Any disciplinary action shall be prosecuted in strict compliance with the notice requirements and hearing procedures set forth in Article XI, Section 6 hereof.

(e) Owner's Duty to Notify Association of the Identity of Tenants and Contract purchasers. Each Owner shall notify the Secretary of the Association or the Association's property manager, if any, of the names of any contract purchaser or tenants of the Owner's Residence. Each Owner, contract purchaser or tenant shall also notify the Secretary of the Association of the names of all persons to whom such Owner, contract purchaser or tenant has delegated any rights of use and enjoyment in the Properties and the relationship that each such person bears to the Owner, contract purchaser or tenant.

Section 3. Notification Regarding Charter Documents.

(a) As more particularly provided in Section 1368 of the California Civil Code, as soon as practicable before transfer of title or the execution of a real property sales contract with respect to any Residence, the Owner thereof must give the prospective purchaser a current copy of the Charter Documents and a true statement in writing from the Association ("delinquency statement") as to the amount of any delinquent Assessments, together with information relating to penalties, attorneys' fees and other charges due with respect to the Residence as of the date the statement is issued.

(b) In order to carry out the intent and purposes of this statutory provision, the Association shall, within 10 days of the mailing or delivery of a request therefor, provide the Owner with a copy of the current Charter Documents, together with the delinquency statement referred to in the immediately preceding paragraph. The Association shall be entitled to impose a fee for providing the Charter Documents and delinquency statement equal to (but not more than) the reasonable cost of preparing and reproducing the materials.

ARTICLE III

Homeowners Association

Section 1. Association Membership. Every Owner of a Lot shall be a Member of the Association which shall have the responsibility of owning, managing and maintaining the Common Area and discharging the other duties and responsibilities described in this Declaration, the Articles and the Bylaws. Such membership is appurtenant to and may not be separated from ownership of any Lot within the Properties.

Section 2. One Class of Membership. The Association shall have one class of membership and the rights, duties, obligations and privileges of the Members shall be as set forth in the Articles, the Bylaws, this Declaration and the Association Rules.

Section 3. Voting Rights of Memberships. Each Member of the Association shall be entitled to one vote for each Lot owned by said Member. When more than one person holds an interest in any Lot, all such persons shall be Members; although in no event shall more than one vote be cast with respect to any Lot. Voting rights may be temporarily suspended under those circumstances described in Article XI, Section 6 hereof.

Section 4. Assessments. Members of the Association shall be obligated to pay the assessments imposed by Article IV of this Declaration with respect to each Lot owned by said Member. Any assessments levied by the Association on its Members shall be levied in accordance with and pursuant to the provisions of this Declaration.

Section 5. Transfer of Memberships. Memberships in the Association shall not be transferred, encumbered, pledged or alienated in any way, except upon the sale or encumbrance of the Lot to which it is appurtenant. In the case of a sale, membership passes automatically to the purchaser upon transfer of title to the Lot. In the case of an encumbrance of such Lot, a mortgagee does not have membership rights until he becomes an Owner by foreclosure or deed in lieu thereof. Tenants who are delegated rights of use pursuant to Article II, Section 2 hereof do not thereby become Members, although the tenant and members of the tenant's family shall, at all times, be subject to the provisions of this Declaration, the Articles, Bylaws, and the rules and regulations of the Association Rules. Any attempt to make a prohibited transfer is void. In the event the Owner of any Lot should fail or refuse to transfer the membership registered in his name to the purchaser of his Lot, the Association shall have the right to record the transfer upon its books and thereupon any other membership outstanding in the name of the seller shall be null and void.

Section 6. Rights and Duties of the Association Board of Directors. The rights, duties and obligations of the Board of Directors of the Association shall be as set forth in this Declaration, the Articles and the Bylaws of the Association.

Section 7. Powers and Authority of the Association. The Association shall have all of the powers of a non-profit mutual benefit corporation organized under the laws of the State of California in operating for the benefit of its Members, subject only to such limitations upon the exercise of such powers as are expressly set forth in the Articles, Bylaws and this Declaration. The Association and its Board of Directors shall have the power to do any and all lawful things which may be authorized, required or permitted to be done under and by virtue of this Declaration, and to do and perform any and all acts which may be necessary or proper for or incidental to the exercise of any of the express powers of the Association for the peace, health, comfort, safety or general welfare of the Owners. The specific powers of the Association and the limitations thereon shall be as set forth in Article IX of the Bylaws.


Section 8. Association Rules.

(a) Rulemaking Power. The Board may, from time to time and subject to the provisions of this Declaration, propose, enact and amend rules and regulations of general application to the Owners of Lots within the Properties. Such rules may concern, but need not be limited to, matters pertaining to use of the Common Area and Common Facilities, signs, collection and disposal of refuse, minimum standards of maintenance of landscaping or other improvements on any Lot, the elimination of improvements which obstruct the vision of motorists or which create a hazard for vehicular or pedestrian traffic, the keeping of household pets on Lots and any other subject or matter within the jurisdiction of the Association as provided in this Declaration and the Bylaws of the Association. Notwithstanding the foregoing grant of authority the Association Rules shall not be inconsistent with or materially alter any provision of the Articles or Bylaws of the Association or this Declaration, or the rights, preferences and privileges of Members thereunder. In the event of any material conflict between any Association Rule and any provision of any other Charter Document, the provisions contained in the other Charter Documents shall be deemed to prevail.

(b) Distribution of Rules. A copy of the Association Rules, as they may from time to time be adopted, amended or repealed, shall be mailed or otherwise delivered to each Owner. No Rules may be adopted which materially affect the rights, preferences, or privileges of any Owner as specifically set forth herein. Where the provisions of this Declaration and any Association Rule are in conflict, the provisions of this Declaration shall be deemed to prevail.

(c) Amendment of Rules. The Association Rules may be amended from time to time by a majority vote of the Board. Amendments to the Rules shall be distributed to the Owners either by mail or by personal delivery. Any duly adopted amendment to the Rules shall become effective immediately from the date of adoption thereof by the Board or at such later date as the Board may deem appropriate upon its adoption of such amendment to the Rules.

Section 9. Breach of Rules or Restrictions.

(a) In the event of a breach of any Rule or of any of the restrictions contained in the Bylaws or this Declaration by an Owner, his family, guests, employees, invitees, licensees, or tenants, the Board, for and on behalf of all other Owners, shall enforce the obligations of each Owner to obey such Rules or restrictions in any manner provided by law or in equity, including but not limited to appropriate hiring of legal counsel, the pursuing of legal action, or suspension of the Owner's right to use the Common Area and/or Common Facilities or suspension of the Owner's voting rights as a Member of the Association; provided, however, that any suspension for an infraction of the Association Rules may not be for a period in excess of 30 days, after notice and hearing as provided in Article Xl, Section 6, hereof.

(b) In addition to the other remedies herein set forth, the Board, by majority vote, may levy a fine against such Owner, after appropriate notice and hearing as herein provided, in an amount not to exceed $100.00 for each such violation and the payment of such fine may be enforced in the manner set forth in Section 4 of Article IV hereof. As part of its general rulemaking power, the Board may also implement schedules of reasonable fines and penalties for particular common recurring offenses where there is no material issue of responsibility.

A violation shall be defined as a single act or omission occurring on a single day. If the detrimental effect of a violation continues for additional days, discipline imposed by the Board shall include one component for the violation and, according to the Board's discretion, a per diem component for so long as the detrimental effect continues. Similar violations on different days shall justify cumulative imposition of discipline. The Association shall take reasonable and prompt action to repair or avoid the continuing damaging effects of a violation or nuisance in the Common Areas at the cost of the responsible Owner; provided that no discipline may be founded upon continuance of a violation beyond a date when the Association should reasonably have commenced action to end it.

(c) Prior to imposing any penalty provided herein for breach of any Rules enacted hereunder or restrictions contained in this Declaration (other than penalties imposed pursuant to Article IV, Section 9(a) hereof), the Board shall comply with the procedures and requirements of Article XI, Section 6, hereof, except that in the case of infractions for which fines may be imposed pursuant to a schedule of fines, the fine may be imposed without a prior hearing so long as the Member has a right to request a hearing thereafter if he or she feels that imposition of the fine was not warranted.

Section 10. Limitation on Liability of the Association and the Association's Directors and Officers.

(a) No member of the Board of Directors or officers or employees of the Association or any property manager or management company retained by the Association shall be personally liable to any of the Association's members or to any other person, for any error or omission of any such person, their agents, representatives and employees, or the Architectural Committee, and other Board designated committee persons, in the discharge of their duties and responsibilities hereunder or under the Bylaws, or for their failure to provide any service required hereunder or under the Bylaws; provided that such person, officer, employee or manager has, upon the basis of such information as may be possessed by him, acted reasonably and in good faith. Without limiting the generality of the foregoing, this limitation on liability shall extend to such matters as the establishment of the Association's annual financial budget and the funding of Association capital replacement and reserve accounts and the repair and maintenance of Common Facilities.

(b) Neither the Association nor any member of its Board of Directors: nor any of its officers, agents or employees shall be responsible to any Owner or to any member of his family or any of his guests, servants, employees, licensees, invitees or any others for any loss or damage suffered by reason of theft or otherwise of any article, vehicle or other item of personal property which may be stored by such Owner or other person on any Lot or within any Residence or for any injury to or death of any person or loss or damage to the property of any person caused by fire, explosion or the elements or any other Owner or person within the Properties, or by any other cause, unless the same is attributable to its or his own reckless misconduct or gross negligence.

(c) Each Owner, on behalf of himself, his heirs, successors, and assigns, agrees not to make any claim against the Association or any member of its Board, or any of its officers, agents or employees for or on account of any loss, damage or conduct coming within the limitations on liability hereunder and agrees to indemnify each of them against, and hold each of them harmless from, any such claim made by any member of his family, any of his guests, servants, employees, licensees or invitees or the heirs, successors or assigns of any such person.

ARTICLE IV

Assessments

Section 1. Assessments Generally.

(a) Each Owner of a Lot by acceptance of a deed therefor (whether or not it shall be so expressed in such deed), covenants and agrees, to pay to the Association the Regular Assessments, Special Assessments and Special Individual Assessments hereinafter provided for.

(b) Each installment payment of any Regular Assessment and each lump sum or installment payment of any Special Assessment or Special Individual Assessment, together with any interest charge provided for in subparagraph (c) hereof and costs (including reasonable attorneys' fees) attributable thereto or incurred in the collection thereof, shall be a separate debt of the Owner against whom the same has been assessed and is hereby declared and agreed to be a lien upon and against the Lot so assessed in the nature of a mortgage with a power of sale in accordance with California Civil Code Section 2924 (or a comparable superseding statute), all as more particularly described in Section 9 of this Article IV. Each Owner who acquires title to a Lot (whether at a judicial sale, trustee's sale or otherwise) shall be personally liable only for Assessments attributable to the Lot so purchased which become due and payable after the date of such sale; provided that any unpaid Assessment of a previous Owner shall remain the debt of such previous Owner against whom assessed and any lien created pursuant to the provisions of this Article IV by reason of such unpaid Assessment shall remain in force and effect as a lien on the Lot sold and may be subject to foreclosure as provided in Section 9 hereof.

(c) If any installment payment of a Regular Assessment or lump sum or installment payment of any Special Assessment or Special Individual Assessment assessed to any Owner is not paid within 15 days after the same becomes due, such payment shall be delinquent and the amount thereof shall bear interest at the maximum rate allowed by law from and after the due date until the same is paid.

(d) No Owner may exempt himself or his Lot from liability or charge for his share of any Regular, Special or Special Individual Assessment made against him and his Lot by waiving or relinquishing, or offering to waive or relinquish, his right to use and enjoy all or any portion of the Common Area or Common Facilities or by the abandonment or non-use of his Lot.

Section 2. Regular Assessment.

(a) Estimate. Not less than 45 days nor more than 60 days prior to the beginning of each fiscal year of the Association (which may correspond to the calendar year), the Board shall estimate the anticipated Common Expenses (including prudent contributions to the capital reserve fund for replacement of Common Facilities) for the next succeeding fiscal year and shall deduct therefrom the amount of any estimated surplus which will remain from the current year's Assessment. No increase or decrease in the amount of a Regular Assessment for a fiscal year which exceeds by more than 20% the sum of the Regular Assessment for the immediately preceding fiscal year may be made without the vote or written consent of Owners entitled to vote and holding in the aggregate at least a majority of the voting power of the membership of the Association.

(b) Allocation of Regular Assessment. The total estimated Common Expenses, determined in accordance with subparagraph (a), shall be divided among, assessed against, and charged to each Owner according to the ratio of the number of Lots within the Properties owned by the Owner assessed to the total number of Lots subject to assessments.

(c) Assessment Roll. That portion of the estimated Common Expenses assessed against and charged to each Owner shall be set forth and recorded upon an assessment roll which shall be maintained and available with the records of the Association and shall be open for inspection at all reasonable times by each Owner or his authorized representative. The assessment roll shall show for each Lot the name and address of the Owner of record thereof, all Assessments, whether Regular or Special, levied against each Owner and his Lot, and the amount of such Assessments which have been paid or remain unpaid. A certificate executed and acknowledged by the Secretary or Treasurer of the Association stating the indebtedness secured by any lien created hereunder upon any such Lot shall be conclusive upon the Association and the Owner of such Lot as to the amount of such indebtedness as of the date of such certificate, in favor of all persons who rely thereon in good faith, and such a certificate shall be furnished by the Association to any Owner or to any first Mortgagee under a Mortgage encumbering a Lot upon written request therefore at a reasonable fee payable to the Association.


(d) Mailing. The Board of Directors shall cause to be mailed to each Owner at the street address of his Lot, or at such other address as such Owner may from time to time designate to the Association in writing, a statement of the amount of the Regular Assessment for the next succeeding fiscal year within 30 days after determination thereof in accordance with Section 2(a) hereof.

(e) Failure to Make Estimate. If, for any fiscal year, the Board of Directors shall fail to make an estimate of the annual Common Expenses as required by subparagraph (a) hereof, then in such event the Regular Assessment made for the preceding fiscal year, together with any Special Assessment made pursuant to Action 3(a) hereof for that year, shall be assessed against each Owner and his Lot on account of the then current fiscal year, and installment payments (as hereinafter provided) based upon such automatic assessment shall be payable on the regular payment dates established by the Association.

(f) Installment Payment. The Regular Assessment made against each Owner shall be due and payable in advance to the Association in equal monthly installments on the first day of each month or on such other date or dates as may be established from time to time by the Association. Monthly installments of Regular Assessments shall be delinquent if not paid by the 30th day of the month.

(g) Current Regular Assessment. Until such time as the Association shall change the Regular Assessment for the fiscal year beginning in 1999, or thereafter pursuant to this Section 2, the Regular Assessment shall be, as to each and every Lot, the sum of $200.00 per month.

Section 3. Special Assessments.

(a) Regular Assessment Insufficient in Amount. If, at any time, the Regular Assessment for any fiscal year is insufficient for any reason, then the Board of Directors shall make an additional Special Assessment, applicable to the remainder of such year only, for the purpose of defraying, in whole or in part, any deficit which the Association may incur in the performance of its duties and the discharge of its obligations hereunder. Special Assessments hereunder may be imposed upon Board action alone except in those instances where membership approval is required pursuant to the subparagraph (c) of this Section 3.

(b) Capital Improvements. Subject to subparagraph (c) hereof, the Association may also levy Special Assessments for capital improvements of the Common Area and Common Facilities unrelated to repairs for damage to or destruction of the Common Facilities.

(c) Special Assessments Requiring Membership Approval. No Special Assessment described in subparagraphs (a) or (b) hereof shall be made in any fiscal year without the vote or assent by written ballot of a majority of the voting power of the Association if such Special Assessments, in the aggregate, exceed 5% of the Association's budgeted gross expenses for that year.

(d) Allocation and Payment of Special Assessments. When levied by the Board or approved by the Members as provided above the Special Assessment shall be equally divided among, assessed against and charged to the Owners and their Lots and recorded on the Association's Assessment Roll and notice thereof shall be mailed to each Owner. Special Assessments for purposes described in subparagraph (a) shall thereafter be due as a separate debt of the Owner and a lien against his Lot, which debt shall be payable to the Association in equal monthly installments during the remainder of the then current year. Special Assessments for purposes described in subparagraph (b) shall thereafter be due as a separate debt and payable in full to the Association within 30 days after the mailing of such notice or within such extended period as the Association shall determine as being appropriate considering the circumstances giving rise to such Special Assessment.

Section 4. Special Individual Assessments.

(a) Circumstances Giving Rise to Special Individual Assessments. In addition to the Special Assessments provided for in Section 3 hereof, the Association may also impose Special Individual Assessments against an Owner and his Lot in any of the following circumstances:

(1) Damage to Common Area. In the event of any damage to or destruction of any portion of the Common Area or the Common Facilities caused by the willful misconduct or negligent act or omission of any Owner, any member of his family, or any of his tenants, guests, servants, employees, licensees or invitees, the Board shall cause the same to be repaired or replaced, and all costs and expenses incurred in connection therewith (to the extent not compensated for by insurance proceeds) shall be assessed and charged solely to and against such Owner and his Lot as a Special Individual Assessment.

(2) Act Increasing Insurance Premiums. In the event any act or omission of any Owner, any member of his family, or any of his tenants, guests, servants, employees, licensees or invitees, shall in any way cause or be responsible for any increase in the premiums for any insurance purchased or obtained by the Association in accordance with the provisions of Article IX hereof, the amount of such increase shall be assessed and charged solely to and against such Owner and his Lot as a Special individual Assessment.

(3) Expenses Incurred in Gaining Member Compliance. In the event that the Association incurs any costs or expenses, including reasonable title company, accounting or legal fees, to accomplish (i) the payment of delinquent assessments, (ii) any repair, maintenance or replacement for which the Owner is responsible under the provisions of any Charter Document, or (iii) to otherwise bring the Owner and/or his Lot into compliance with the provisions of any Charter Document, the amount incurred by the Association (including reasonable fines and penalties duly imposed hereunder) shall be assessed and charged solely to and against such Owner and his Lot as a Special Individual Assessment; provided that Special Individual Assessments of the kind described in this Subparagraph (a)(3) may only be imposed after the Owner has been afforded the notice and hearing rights to which the Owner is entitled pursuant to Article XI, Section 6 hereof, and has been given a reasonable opportunity to comply voluntarily with the Association's governing documents.

(b) Levy of Special Individual Assessment and Payment. Once a Special Assessment has been levied against an Owner and his Lot for any reason described and subject to the conditions imposed, in subparagraph (a) of this Section 4, such Special Individual Assessments shall be recorded on the Association's assessment rolls, notice thereof shall be mailed to the affected Owner and the Special Individual Assessment shall thereafter be due as a separate debt of the Owner and a lien against his Lot, payable as follows: Special individual Assessments imposed pursuant to either Section 4(a)(1) or 4(a)(3) shall be payable in full to the Association within 30 days after the mailing of notice of the assessment and Special Individual Assessments imposed pursuant to Section 4(a)(2) shall be payable in full to the Association at least 10 days in advance of the date or dates for the payment of the increased insurance premium giving rise to the assessment.

Section 5. Purpose and Reasonableness of Assessments. Each Assessment' whether it be a Regular, Special or Special Individual Assessment, made in accordance with the provisions of this Declaration, is hereby declared and agreed (i) to be for use exclusively to promote the recreation, health, safety and welfare of the residents of the Properties, for the enjoyment and use of the Properties by the Owners and their famillies, tenants, invitees, licensees, guests and employees, or for the repair, maintenance, replacement and protection of the Common Areas and Common Facilities within the Properties, and the maintenance and repair of the exterior of Residences to the extent required by the provisions of this Declaration, (ii) to be a reasonable assessment, and (iii)) to constitute a separate, distinct and personal obligation (with respect to which a separate lien may be created hereby) of the Owner of the Lot against which the Assessment is made and shall be binding upon his heirs, successors and assigns; provided that the personal obligation for delinquent assessments shall not pass to the Owners successors in title unless expressly assumed by them.

Section 6. Exemption of Certain of the Properties from Assessments. The following real property subject to this Declaration shall, unless devoted to the use as a residential dwelling, be exempt from the Assessments and the lien thereof provided herein:

(a) Any portion of the Properties dedicated and accepted by a local public
authority;

(b) The Common Area and Common Facilities; and

(c) Any Lot owned by the Association.

Section 7. Notice and Procedure for any Action Authorized Under Sections 2 and
3. Any action authorized under Sections 2 and 3 of this Article IV requiring the vote of the Association Members shall be taken either by written ballot or at a meeting of Members called for that purpose, written notice of which shall be sent to all Members not less than 15 days nor more than 60 days in advance of the meeting or mailing of the written ballots.

Section 8. Maintenance of Assessment Funds.

(a) Deposit; Bank Account. All sums received or collected by the Association from Assessments, whether Regular or Special, together with any interest change thereon, shall be promptly deposited in a checking and/or savings account in a bank or savings and loan association located within Sacramento County, California, and selected by the Board of Directors. In addition, the Board shall be entitled to make prudent investments of reserve funds in insured certificates of deposit, money market funds or similar investments consistent with investment standards normally observed by trustees. The Board and such officers or agents of the Association as the Board shall designate shall have exclusive control of said account(s)) and shall be responsible to the Owners for the maintenance at all times of accurate records thereof.

To preclude a multiplicity of bank accounts, the proceeds of all Assessments may be commingled and deposited in separate accounts so long as the separate accounting records need not be described herein are maintained. Any interest received on such deposits shall be credited proportionately to the balances of the various Assessment fund accounts maintained on the books of the Association as provided in subparagraph. (b) below.

(b) Separate Accounts; Commingling of Funds. The proceeds of each Assessment shall be used only for the purpose for which such Assessment was made, and such funds shall be received and held in trust by the Association for such purpose. If the proceeds of any Special Assessment exceed the requirement of which such Assessment was made, such surplus shall, in the discretion of the Board, either be returned proportionately to the contributors thereof or reallocated among other Association reserve accounts. For purposes of accounting, but without requiring any physical segregation of assets, the Association shall keep a separate account of all funds received by it in payment of each Assessment and of all disbursements made therefrom, except that receipts and disbursements of Special Assessments made pursuant to Article IV, Section 3(a) hereof shall be combined with the receipts and disbursements of the Regular Assessments; and the Board shall maintain separate liability accounts for each capital improvement for which reserve funds for replacement are allocated.

Unless the Association is exempt from federal or state taxes, all sums allocated to capital replacement funds shall be accounted for as contributions to the capital of the Association and as trust funds segregated from the regular income of the Association or in any other manner authorized by law or regulations of the Internal Revenue Service and the California Franchise Tax Board that will prevent such funds from being taxed as income of the Association.

Section 9. Effect of Non-Payment of Assessments; Enforcement of Liens.

(a) The Board may promulgate a schedule of reasonable fines and penalties for any assessments which are delinquent. The amount of any delinquent Regular or Special Assessment which is made in accordance with this Article IV, together with any penalties, interest and costs (including reasonable attorneys' fees) attributable thereto or incurred in the collection thereof, shall become a lien upon the Lot of the Owner so assessed only when the Association causes to be recorded in the Office of the County Recorder of Sacramento County, State of California, a Notice of Delinquent Assessment executed by an authorized representative of the Association, setting forth (i) the legal description of such Lot, (ii) the Owner of Record or reputed Owner thereof, (iii) the amount of the delinquent assessment and other sums claimed, iv) the name and address of the Association; and (v) the name and address of the trustee authorized by the Association to enforce the lien by sale.

(b) The Association may bring an action at law against the Owner personally obligated to pay the delinquent assessment, or foreclose its lien against the Owner's Lot. Foreclosure by the Association of its lien may be by judicial foreclosure or by nonjudicial foreclosure, in the same manner as the foreclosure of a mortgage or deed of trust upon real property under the laws of the State of California. Non-judicial foreclosure shall be commenced by the Association by recording in the Office of the County Recorder a notice of default, which notice shall state all amounts which have become delinquent with respect thereto and the costs (including attorneys' fees), penalties and interest which have accrued thereon, the amount of any assessment which is due and payable although not delinquent, a description of the property in respect to which the delinquent assessment is owed, and the name of the record or reputed Owner thereof. The Association shall have the rights conferred by Section 2934a of the Civil Code to assign its rights and obligations as Trustee in any non-judicial foreclosure proceeding to the same extent as a Trustee designated under a deed of trust and for purposes of said Section 2934a the Association shall be deemed to be the sole beneficiary of the delinquent assessment obligation. Furthermore, in lieu of an assignment of trusteeship the Association shall be entitled to employ the services of a title insurance company or responsible company engaged in the business of acting as a trustee in foreclosure to act as an agent on behalf of the Association in commencing and prosecuting the foreclosure process.

The notice of default shall state the election of the Association to sell the Lot or other property to which the amounts relate and shall otherwise conform with the requirements for a notice of default under Section 2924c of the California Civil Code. The recordation of the notice of delinquency shall correspond to the recordation of a notice of default under Section 2924 of the California Civil Code. The Association or its assignee shall mail a copy of the notice to the Owner or reputed Owner at the last address appearing on the books or records of the Association, and to any person to whom the giving of notice is required by applicable provisions of Section 2924b of the California Civil Code. In the event such notice is given by the Association or its assignee, the Owner and junior encumbrancers shall have reinstatement rights identical to those provided by law for trustors or mortgagors, which rights must be exercised during the period specified by law for reinstatement of obligations secured by deeds of trust.

After the lapse of such time as may then be required by law following the recordation of a notice of default under a deed of trust, the Association or its assignee may give notice of sale in the manner and for the period required in the case of deeds of trust. After the giving of the notice of sale, the Association, or its assignee, without demand on the Owner, may sell the Lot or other property at the time and place fixed in the notice of sale, at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale. The Association or its assignee may postpone sale by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. The Association shall deliver to the purchaser at such foreclosure sale the Association's deed conveying the Lot or other property so sold, but without covenant or warranty, express or implied. The recitals in such deeds shall be conclusive proof of the truthfulness thereof. Any person, including the Association, may bid on the property and purchase the same at such sale.

After deducting all costs, fees, and expenses of the Association from the sale proceeds, the Association or its assignee shall apply the balance of the proceeds of sale to payment of all sums secured by its lien at the time of sale, including interest, costs and attorneys' fees, and the remainder, if any, shall be disbursed to the person or persons legally entitled thereto.

The Association's right to maintain suit to recover a money judgment for unpaid common expenses, rent and attorneys' fees shall be maintainable without foreclosure or waiving the lien securing the same. Furthermore, the Board may take such additional action, consistent with this Declaration, as is necessary or appropriate to enforce its assessment rights hereunder.

Section 10. Transfer of Lot by Sale or Foreclosure. The sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot. pursuant to foreclosure of any first mortgage shall extinguish the lien of such assessments as to payments which become due and payable prior to such sale or transfer. No sale or transfer of a Lot as the result of a foreclosure or exercise of a power of sale shall relieve the new Owner, whether it be the former beneficiary of the first mortgage or another person, from liability for any assessments thereafter becoming due or from the lien thereof.

Where the mortgagee of the first mortgage of record or other purchaser of a Lot obtains title to the same as a result of foreclosure of any such first mortgage, the person acquiring title, his successors and assigns, shall not be solely liable for the share of the Common Expenses or Assessments by the Association chargeable to such Lot which became due prior to the acquisition of title to such Lot by such acquirer. Such unpaid share of Common Expenses or Assessments shall be deemed to be common expenses collectible from Owners of all of the Lots including such acquirer, his successors and assigns.

Section 11. Priorities. When a notice of assessment has been recorded, such assessment shall constitute a lien on each respective Lot prior and superior to all other liens recorded subsequent to the recordation of such notice, except (a) all taxes, bonds, assessments and other levies which, by law, would be superior thereto, and (b) the lien or charge of any first mortgage of record made or guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; provided, however, that such subordination shall apply only to the assessments which have become due and payable prior to the sale of such property pursuant to a decree of foreclosure of any such mortgage or deed of trust or pursuant to a power of sale in such mortgage or deed of trust. Such foreclosure shall not relieve such property from liability for any assessments thereafter becoming due or from the lien of any such subsequent assessment.

Section 12. Unallocated Taxes. In the event that any taxes are assessed against the Common Area, or the personal property of the Association, rather than being assessed to the Lots, such taxes shall be included in the assessments made under the provisions of Section 2 of this Article IV and, if necessary, a Special Assessment may be levied against the Lots in an amount equal to such taxes to be paid in two installments, 3D days prior to the due date of each tax installment.

Section 13. Assignment of Rents. Each Owner does hereby presently assign to the Association, absolutely and regardless of possession of the property, all rents and other monies now due or hereafter to become due under any lease or agreement or otherwise for the use or occupation of any or all parts of any Lot owned by the Owner, now existing or hereafter made for the purpose of collection all assessments due the Association pursuant to this Declaration which are in default. The Association hereby confers on each Owner the authority to collect and retain the rents and other monies as they become due and payable; provided, however, that the Association in its sole discretion, may revoke such authority at any time, upon written notice to the Owner of a default in the payment of assessments. Upon revocation of such authority the Association may, pursuant to court order or by court appointed receiver collect and retain such monies, whether past due and unpaid or current.

Section 14. Waiver of Exemptions. Each Owner, to the extent permitted by law, waives, to the extent of any liens created pursuant to this Article IV, the benefit of any homestead or exemption law of California in effect at the time any assessment or installment thereof becomes delinquent or any lien is imposed.

ARTICLE V

Architectural Control

Section 1. Improvements in General; Establishment of Architectural Committee. No building, fence, wall or other structure (including trees and shrubs) shall be commenced, erected or maintained upon the Properties or any portion thereof, nor shall any exterior addition to or change or alteration therein be made until the plans and specifications showing the nature, color, kind, shape, height, materials, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Board of Directors of the Association, or by an Architectural Committee composed of 3 or more representatives appointed by the Board. Said plans and specifications shall be submitted to the Board by personal delivery or certified mail to the Secretary of the Association or the Chairman of the Architectural Committee. Members of the Board of Directors shall be eligible to serve as members of the Architectural Committee. In the event said Board, or its designated committee, fails to approve or disapprove such design and location within 30 days after said plans and specifications have been submitted to it, the request is deemed denied. Under such circumstances, the written request may be resubmitted. Should the committee deny the request, the written request may be submitted to the Board for final determination as an appeal of the committee action.

Section 2. Common Areas. No improvements excavation or work which in any way alters any Common Area from its natural or existing state on the date such Common Area is made a part of the Properties shall be made or done except upon strict compliance with, and within the restrictions and limitations of, the following provision of this section.

(a) No person other than the Association or its duly authorized agents shall construct, reconstruct, refinish, alter or maintain any improvement upon, or shall make or create any excavation or fill upon, or shall change the natural or existing drainage, or shall destroy or remove any tree, shrub or other vegetation from, or plant any trees shrub, or other vegetation upon the Common Area.

(b) If any portion of Common Area has been included within the fenced patio of an Owner, the Owner shall maintain the Common Area so included as if it were a part c. his Lot and subject to the restrictions of Article VII, Section 23, below. Conversely, .any portion of a Lot projects outside of the fenced patio area (or other architectural boundary) of an Owner, the Association shall maintain the Lot area so excluded as if it were a part of the Common Area. Easements required for such maintenance automatically exist as provided in Article II, Section 1 hereof.

(c) The Association may at any time, and from time to time:

(1) Reconstruct, replace, or refinish any Common Facility or other improvement or portion thereof upon Common Area in accordance with the original design, finish or standard of construction of such improvement of such Common Area which was approved by the governmental entity having jurisdiction.

(2) Construct, reconstruct, replace, refinish any road improvement or surface upon any portion of Common Area designated on a subdivision map as a private road or parking area.

(3) Replace destroyed trees or other vegetation and plant trees and ground cover upon any portion of Common Area.

(4) Place and maintain upon Common Area such signs as the Association; may deem necessary for the identification of the development and of roads, the regulation of traffic, including parking, the regulation and use of Common Area and Common Facilities and for the health, welfare and safety of Owners, tenants and guests. Any such signs to be placed within the street area shall be subject to County approval.

ARTICLE VI

Allocation of Maintenance Responsibilities

Section 1. Association's Maintenance Obligations. The Association shall maintain, or provide for the maintenance of all Com man Areas and all Com man Facilities, including recreational facilities, in good order and repair, and shall likewise maintain or provide for the maintenance of utility laterals, sprinkling systems, fences, and the exterior and interior of the utility buildings. In addition to the above described building maintenance, the Association shall provide all necessary landscaping and gardening to generally maintain and periodically replace when necessary the trees, shrubs, vines, plants, hedges, ground cover, grass and vegetation originally placed on the Properties by the Declarant, and the Association shall maintain the same in 8 neat and attractive manner.

In addition to maintenance of the Common Area and Common Facilities, the Association shall provide exterior maintenance upon each Lot which is subject to assessment hereunder, as follows: paint, repair, replace and care for roofs, any existing antenna systems, patio fences and exterior building surfaces. Such exterior maintenance shall not include glass surfaces, doors, or utility and service connections lying within an Owner's Lot. In order to maintain external harmony and appearance within the Properties, the Association shall select the colors of all exterior walls and fences.

Section 2. Owners' Maintenance Obligations. Each Owner shall be responsible for maintenance and repair of his residence unit, patio, garage, and items servicing his Lot, and shall specifically: (1) paint, repair, and care for interior walls, floors, ceilings, windows and doors; (2) maintain, repair and replace all appliances, including air conditioning and heating equipment, water heaters and plumbing and lighting fixtures, or other mechanical equipment servicing his dwelling unit; (3) maintain and repair, or cause the maintenance and repair of utility lines and connections (including sewer, electrical, plumbing and gas, which are located within his Lot and which provide service to his home and garage; (4) clean, repair, and replace and all windows and glass, both exterior and interior; (5) rebuild any improvements upon his Lot if the same should be damaged or destroyed by any casualty that is not covered by the insurance maintained by the Association; and (6) clear the gutters and downspouts of the Owner's Residence.

The Owner's maintenance obligations under this paragraph shall not, however, be construed as a limitation upon the Owner's discretion to furnish, paint and decorate the interior of his Residence according to his or her personal taste and choice, or to maintain insurance, at the Owner's own cost and expense, covering the personal property within his or her Residence and his obligations to service, replace and maintain such property.

Section 3. Cost of Certain Repairs and Maintenance. In the event that the need for maintenance or repair, which would otherwise be the Association's responsibility is caused through the willful or negligent acts of the Owner, his Family, guests, or invitees, and it not covered or paid for by insurance on such Lot, the cost of such maintenance or repairs shall be subject to recovery by the Association through the imposition of a Special Individual Assessment against the offending Owner in accordance with Article IV, Section 4 hereof.

The Association, through its Architectural Committee, shall approve all exterior door colors and the Association shall be entitled to perform any exterior maintenance obligation which is the obligation of an Owner hereunder if the Owner has been informed in writing of the necessity for the repair or maintenance, has refused or failed to perform the repair or maintenance after having a reasonable opportunity to do so and has been afforded an opportunity to a hearing before the Board in accordance with Article Xl, Section 1 hereof. Any costs incurred by the Association in performing maintenance or repairs pursuant to the immediately preceding sentence shall be recoverable through imposition of a Special Individual Assessment against the responsible Owner and his or her Lot.

Section 4. Automatic Garage Door Openers. Every Residence is equipped with a mechanical automatic garage door opener that the Residence Owner shall be required to maintain in good operating condition at all times.

ARTICLE VII

Use of Properties and Restrictions

Section 1. Single Family Residential Use. The use of the individual Lots in the Properties is hereby restricted to Single Family Residential Use. No buildings or structures shall be moved from other locations onto any Lot or Lots and no subsequent buildings or structures shall be constructed on any Lot.

Section 2. Lots. Each Lot shall be conveyed as a separately designated and legally described fee simple estate subject to this Declaration. All Lots, whether occupied or unoccupied, and the Residences and other improvements placed thereon, shall at all times be maintained in such a manner as to prevent their becoming unsightly by the reason of the accumulation of rubbish, debris or unsightly growth thereon. In order to maintain external harmony and appearance within the Properties, Owners shall maintain drapes on all windows which shall be white with white liners, unless otherwise approved, in advance, by the Architectural Committee.

Section 3. Common Areas. The use of Common Areas shall be preserved as open space and used for recreational purposes and other purposes incidental and ancillary to the use of Lots. Such use shall be limited to the private use for aesthetic and recreational purposes by the Association's Members, their tenants, families and guests subject to the regulations under this Declaration, Articles, Bylaws and Association Rules.

Section 4. Use of the Properties. The use of all Properties shall be limited to those uses, as strictly interpreted, which are specified in this Declaration. Any change in use of the Properties, or any part thereof, shall require the vote of two-thirds (2/3) of the Members of the Association.

Section 5. Prohibition of Noxious Activities. No noxious or offensive activities shall be carried on or conducted upon any Lot nor shall any things be done on any Lot that shall be or become an unreasonable annoyance or nuisance to the neighborhood. Without limiting any of the foregoing, no Owner shall permit noise, including, but not limited to the barking of dogs, the operation of air conditioners, stereo amplifier systems, television systems, motor vehicles and power tools, to emanate from an Owner's Lot, or the Common Area, which would unreasonably disturb other Member's enjoyment of his Lot or the Common Area. Excessive noise levels may be determined according to the County of Sacramento's Municipal Code or other applicable governmental regulation dealing with such matters. The Board may, in its sole discretion, prohibit maintenance within the Properties of any animal that constitutes a nuisance (whether due to its size, viciousness, unreasonable noise or otherwise) to any other Owner(s).

Section 6. Temporary Structures. No structure of a temporary character, trailer, mobile home, camper, tent, shack, or other outbuilding shall be used on any Lot at any time as a residence, either temporarily or permanently. Furthermore, no structures shall be built for any purposes on a Lot (other than the original Residence structure) which are visible from neighboring Lots or above the fences between adjoining Lots.

Section 7. Household Pets. No more than two common household pets, may be kept in each Lot so long as the same are not kept, bred or maintained for commercial purposes. No other animals, livestock, or poultry of any kind shall be kept, bred or raised in any Lot. Dogs and cats shall only be allowed on the Common Areas when they are leashed and otherwise under the supervision and restraint of their Owners. No household pet shall be left chained or otherwise tethered in front of a Lot or in the Common Areas. Pet owners shall be responsible for the prompt disposal of pet wastes regardless of whether those wastes are deposited by their pets in the Common Areas or on backyard patios. The Board of Directors shall have the right to establish and enforce additional regulations for the reasonable control and keeping of household pets in, upon and around the Properties, to insure that the same do not interfere with the quiet and peaceful enjoyment of the Properties by the other Owners. Each person bringing or keeping a pet on the Properties shall be solely responsible for the conduct of such pets and the Association, its Board, officers, employees and agents shall have no liability (whether by virtue of this Declaration or otherwise) to any Owners, their family members, guests, invitees, tenants and contract purchasers for any damage or injury to persons or property caused by any such pet.

Section 8. Signs. No advertising signs (except one of not more than two square feet "for rent"/"for lease" or one if not more than two feet by four feet "for sale" sign per parcel), billboards, unsightly objects or nuisances shall be erected, placed or permitted to remain on any Lot, nor shall any Lot be used in any way or for any purpose which may endanger the health or unreasonably disturb the Owner of any Residence or any resident thereof. Signs permitted hereunder shall not be nailed to the exterior of any Residences or staked in any lawn or green areas in the front of any Residences. Signs advertising a Lot for sale or lease shall be placed in the window of the residence unit and other directional signs (indicating that Lots not visible from the street are for sale or lease) shall only be allowed in the Common Areas or at intersections of private roadways with the public streets to the extent specifically approved by the Board in the Association rules.

Section 9. Business Activities. No business activities of any kind whatsoever shall be conducted in any building or in any portion of any Lot; provided, however, the foregoing covenants shall not apply to the activities, signs or the maintenance of buildings, by the Association, its successors and assigns, in furtherance of its powers and purposes as set forth herein. Notwithstanding the foregoing, no restrictions contained in this Article Vll shall be construed in such a manner as to prohibit any Owner from (a) maintaining his personal library therein; (b) keeping his personal business records or accounts therein; (c) handling his personal or professional telephone calls or correspondence therefrom; or (d) conducting any other activities on the Owner’s Lot otherwise compatible with residential use and the provisions of this Declaration which are permitted under applicable zoning laws or governmental regulations without the necessity of first obtaining a special use permit or similar specific governmental authorization. Such uses are expressly declared to be customarily incident to the principal residential use and not in violation of any provision of this Article VII.

Section 10. Garbage and Storage. All rubbish, trash, or garbage shall not be allowed to accumulate on Lots and any trash outside the interior walls of a Residence shall be stored entirely within appropriate covered disposal containers which shall be maintained on each Lot at a location that is not visible from any portion of the Common Areas or any neighboring Lot. No disposal containers will be allowed in the Common Area unless maintained by the Association. Any extraordinary accumulation or rubbish, trash, garbage or debris (such as is often generated upon vacating of premises or during holidays, including Christmas trees) shall be removed from the Properties to a public dump or trash collection area by the Owner or tenant at his or her expense. Personal property shall be stored entirely within garages or residence units unless utilized in the Owner's patio area. There shall be no woodpiles, storage piles or accumulations of building materials outside of garages or Residences except in connection with approved construction.

The Association shall be entitled to impose reasonable fines and penalties for collection of garbage and refuse which is disposed of in any manner inconsistent with this Section. The Association shall also have the right to establish and maintain within the Properties appropriate storage yards and storage buildings for the maintenance and retention of materials and equipment needed for planting, building, repair, maintenance and preservation of the structures, gardens and other improvements of the Lots and the Common Areas.

Section 11. Clotheslines. No exterior clothesline shall be erected or maintained and there shall be no drying or laundering of clothes on the balconies, patios, porches or other areas in any manner which is visible from any neighboring Lot.

Section 12(a) No Exterior Maintenance by Owners - Limitations on Right To Landscape Lots. Except in the individual patio areas appurtenant to a Residence, no planting or gardening shall be done on any Lot except as may be provided in Section 12(b) following. Furthermore, unless there has been prior written approval of the Landscape Committee, no Owner shall: (1) plant any tree within his fenced patio area where the distance between the center of the tree trunk is less than three feet from any exterior wall or fence; (2) permit trees or other plantings to grow to a height or circumference that interferes with the roofs siding or foundation of the Owner's Residence; or (3) alter the grade of the land within his fenced patio area.
Furthermore, no Owner shall repair or replace, or cause to be repaired or replaced, any portion of the roofs or utility laterals, it being the intention hereunder that such items be maintained and replaced by the Association in conjunction with latter's maintenance of Common Areas in order to preserve the external harmony of the Properties, as provided in Article VI hereof.

Section 12(b) Limitation on Right to Landscape Lots. Furthermore, unless there has been prior written approval of the Landscape Committee, no owner shall plant, alter or maintain any portion of his Lot which lies outside the fenced patio area.

Section 13. Outside Colors. To further promote the external harmony of the Properties, the Association shall select the colors of the exterior walls and fences of the Residences as part of its maintenance responsibilities under Article VI hereof. Each Owner shall maintain drapes for all windows of the Owner's Residence. Drapes shall be white or white linens, unless approval for other window covering materials or drape colors has been obtained from the Architectural Committee prior to installation.

Section 14. Cooperative Maintenance Obligations. Any cooperative action necessary or appropriate to the proper maintenance and upkeep of the Common Area and all exterior walls and roofs of Residences, including but not limited to, recreation and parking areas and walks, shall be taken by the Board of Directors or by its duly delegated representatives and, to the extent necessary or desirable to accomplish such maintenance, individual Owners shall cooperate with the Association and its agents in the prosecution of its work.

Section 15. Interior Improvements. No Owner shall undertake any action or work that will impair the structural soundness or integrity of another Residence or impair any easement or hereditament, or do any act or allow any condition to exist which will adversely affect the other Residences or their Owners.

Section 16. Antennas. Except as provided below in this Section with respect to master television antennas, no antennas, including but not limited to antennas used for amateur radios, television, FM radio or AM radio shall be erected or maintained upon the outside of any building on the Properties except such antennas as are approved by the Architectural Committee. The Declarant had authority by virtue of the Original Declaration to cause master television antennas to be installed upon Lots within the Properties, and to choose which Lots may be used for such installation. That system has been abandoned and replaced with a cable network system which, by agreement is maintained by the cable company. In addition to the duties and obligations imposed upon the Association by other provisions of this Declaration, the Association shall be obligated to repair, maintain and replace, or to have repaired, maintained, or replaced any such television system, including the related systems of cables and other appliances and hardware necessary for the system to serve all Lots. Assessments levied by the Association may be used in part for such purposes.

The Original Declaration created easements burdening each Lot upon which the current cable system is installed. A revised system may be installed such as may be reasonably necessary for the installation, repair, maintenance and replacement of the antennas and related systems and easements burdening every other Lot such as may be reasonably necessary for the installation, repair, maintenance and replacement of systems related to the master television systems. The easements created by the Original Declaration are hereby affirmed and are deemed to be for the benefit of every other Lot not burdened by the easements, but shall be used by the Association unless it refuses or is unable or unwilling to do so.


Section 17. Barbecues. There shall be no exterior fires whatsoever except barbecue fires located only upon Lots and contained within receptacles designed for such purpose.

Section 18. Basketball Standards. No basketball standards or fixed sports apparatus shall be attached to any dwelling unit or carport or be erected on any Lot.

Section 19. Machinery and Equipment. No machinery or equipment of any kind shall be placed, operated or maintained upon or adjacent to any Lot except such machinery or equipment as is usual or customary in connection with the use, maintenance or construction of a private Residence or appurtenant structures within the Properties.

Section 20. Diseases and Insects. No Owner shall permit any thing or condition to exist upon his Lot which shall induce, breed, or harbor infectious plant diseases or noxious insects.

Section 21. Parking; Trailers, Boats and Motor Vehicles. No automobiles, mopeds, boats, motorcycles, campers, trailers or recreational vehicles shall be parked or left on any street or on any portion of the Properties other than within the garage adjacent to each Owner's residence unit. All driveways and garages shall be maintained in a neat and orderly condition and garage doors shall be closed except for as long as reasonably required to permit a vehicle to enter or exit. Garages may not be converted for any type of living or recreational activities. Furthermore, garages may not be used for storing or parking any boat, motorcycle, camper, trailer, truck or recreational vehicle unless both of the following conditions are met: (a) such boat, motorcycle, etc., is fully enclosed in the garage and the garage door is kept closed, other than for ingress and egress, and (b) such boat, motorcycle, etc., may be so enclosed without taking space needed for the Owner's passenger vehicles.

All passenger vehicles shall be parked in the garages except for the loading and unloading of such vehicles, the temporary parking of vehicles owned by guests or repairmen and delivery vehicles providing services to any Owner or the Association (and in that event only for the duration reasonably necessary to provide such service). No parking shall be considered temporary if it exceeds four hours during any 48 hour period. Nothing in this Section 21 shall, however, be construed to prohibit the temporary parking of any vehicle being used in the construction or repair of any of the improvements within the property.

In no event shall any vehicle of any type be permanently or semi-permanently parked in any garage for the purpose of accomplishing any service, repair or reconditioning thereof and Owners shall not be permitted to use guest parking spaces located within the Common Areas.

Vehicles parked in violation of these provisions shall be subject to towing by the Association and appropriate signs shall be posted within the Properties to implement this provision.

Section 22. Children. Each Owner shall be accountable to the remaining Owners, their families, visitors, guests and invitees, for the conduct and behavior of the Owner's children and that of any children temporarily residing in or visiting his Residence and for any property damage caused by such children.

Section 23. Limitation on Number of Children. Recognizing that neither the Properties as a whole, nor the Lots and residence units have been designed to accommodate large family groups, Campus Commons East Ranch is designated as a "limited family development" and no more than two (2) children shall reside on any individual Lot or residential unit constructed thereon. Furthermore, no Lot or residential unit shall be sold, resold, leased, rented, or otherwise conveyed to any person whose residence within the Properties would violate this limitation of two (2) children living in any dwelling unit. As used in this Section 23, "children" shall mean and include all persons under the age of 19 and "reside" shall mean occupancy for more than four (4) months out of any calendar year.

Section 24. Activities Affecting Insurance. Nothing shall be done or kept on any Lot or within the Common Area which will increase the rate of insurance relating thereto without the prior written consent of the Association and no Owner shall permit anything to be done or kept on his Lot or the Common Area which would result in the cancellation of insurance on any Residence or any part of the Common Area or which would be in violation of any law.

Section 25. Restriction on Further Subdivision and Severability. No Lot shall be further subdivided nor shall less than all of any such Lot be conveyed by an Owner thereof and no Owner of a Lot within the Properties shall be entitled to sever that Lot from the Common Area portion of the Properties. No easement or other interest in a Lot shall be given without the prior written approval of the Architectural Committee.

Section 26. Use of Private Streets in Common Area. Private streets in the Common Areas are designed primarily to accommodate vehicular ingress and egress to the Lots within the Properties for Owners and guests, as well as necessary service and emergency vehicles. The lack of parallel sidewalks along the private streets and service drives requires that pedestrian traffic use these facilities as well as vehicles when walking between Lots. Consequently, vehicle speeds shall be limited to 10 Miles Per Hour on all Private Streets in the Common Area. No activities such as recreational activities shall be initiated, or encouraged, on the Private Streets or service alleys which would distract the participants from being alert to potential conflicts with moving vehicles. Similarly, no vehicle or object shall be left unattended in a manner that would block access to fire hydrants or Lots by emergency vehicles or pedestrians. Private streets in the Common areas shall not be used for recreational purposes including "joy riding", racing, etc. Motorcycles, mopeds, or cars shall be allowed on such Private Streets only for ingress and egress.

ARTICLE VIII

Easements

Section 1. Encroachment Easements. Each Lot is hereby declared to have an easement over adjoining Lots and Common Area for the purpose of accommodating any encroachment due to roof overhang and fences or walls which are built in accordance with the original design, plans and specifications of Declarant, and due to engineering errors, errors in original construction, settlement or shifting of the building, or similar causes. There shall be valid easements for the maintenance of said encroachments as long as they shall exist, and the rights and obligations of Owner shall not be altered in any way by said encroachment, settlement or shifting; provided, however, that in no event shall a valid easement for encroachment be created in favor of an Owner or Owners if said encroachment occurs due to the willful misconduct of said Owner or Owners. In the event a structure is partially or totally destroyed, and is repaired or rebuilt, the Owners of each adjoining Lot agree that minor encroachments over adjoining Lots shall be permitted and that there shall be valid easements for the maintenance of said encroachments so long as they shall exist.

Section 2. Maintenance Easements. An easement is hereby granted to the Association, its officers, agents, employees, and to any management company selected by the Association to enter in or to cross over the Common Area and any Lot to perform the duties of maintenance and repair of the Residences or Common Areas provided for herein. Said easement right is more particularly described in Article II, Section 1(f) hereof.

Section 3. Boundary Changes. An easement shall exist for use and maintenance as Common Areas over any portion of a Lot which, because of a change in the boundary of a private structure, including a fence, wall or patio, at the time of original construction lies between that boundary and a Lot line abutting the Common Area.

Section 4. Blanket Utility Easement. There is hereby created a blanket easement upon, across, over and under all of the Properties for ingress, egress, installation, replacing, repairing and maintaining all utilities, including but not limited to water, sewers, gas, telephones, drainage and electricity and a television distribution system, if any. By virtue of this easement, it shall be expressly permissible for the providing utility company to erect and maintain the necessary equipment and underground facilities on said Common Areas. Notwithstanding the foregoing, no sewer, electrical lines, water lines, or other utilities may be installed or relocated on said Properties except as initially programmed and approved by the Declarant or thereafter approved by the Association's Board of Directors. The easements provided for in this Section 4 shall in no way affect any other recorded easement on the Properties.

Section 5. Street Easements. Each Owner and the Association shall have and is hereby granted a non-exclusive easement for street, roadway and vehicular traffic purposes over and along the streets within the Properties, subject to termination of such easement and the rights and restrictions set forth in this Declaration.

Section 6. Other Easements. Each Lot and its Owner, and the Association, as the case may be, is hereby declared to be subject to all the easements, dedications and rights-of-way granted or reserved in, on, over and under the Properties and each Lot as shown on the Subdivision Map.

Section 7. Priority of Easements. Wherever easements granted to the County are, in whole or in part, coterminous with any other easements, the easements of the County shall have and are hereby granted priority over said other easements in all respects.


ARTICLE IX

Insurance

Section 1. Liability Insurance. To the extent such insurance is reasonably obtainable, the Association shall obtain and maintain comprehensive public liability insurance insuring the Association, and Board members, any manager and the Owners and occupants of Lots, and their respective family members, guests, invitees, and the agents and employees of each, against any liability incident to the ownership or use of the Common Areas and including, if obtainable, a cross-liability or severability of interest endorsement insuring each insured against liability to each other insured. The limits of such insurance shall not be less than ONE MILLION DOLLARS ($1,000,000.00) covering all claims for death, personal injury and property damage arising out of a single occurrence. Such insurance shall include coverage against water damage liability, liability for non-owned and hired automobiles, liability for property of others and any other liability or risk customarily covered with respect to projects similar in construction, location, and use.


Section 2. Fire and Extended Coverage Insurance. The Association also shall obtain and maintain a master or blanket policy of fire insurance for the full insurable value of all of the improvements within the Properties. The form, content, and term of the policy and its endorsements and the issuing company must be satisfactory to all institutional mortgagees. If more than one institutional mortgagee has a loan of record against the Properties, or any part thereof, the policy and endorsements shall meet the standards of the various institutional mortgagees represented in the Properties. The policy shall contain an agreed amount endorsement or its equivalent, an increased cost of construction endorsement or a contingent liability from operation of building laws endorsements or their equivalent, an extended coverage endorsement, vandalism, malicious mischief coverage, a special form endorsement and a determinable cash adjustment clause or a similar clause to permit cash settlements covering full value of the improvements in case of partial destruction and a decision not to rebuild. The policy shall be in the amounts as shall be determined by the Board. The policy shall name as insured the Association, the Owners and all institutional mortgagees as their respective interests may appear, and may contain a loss payable endorsement in favor of the trustee described in Section 4 below.

Section 3. Copies of Policies. Copies of all insurance policies (or certificates thereof showing the premiums thereon to have been paid) shall be retained by the Association and shall be available for inspection by Owners at any reasonable time.

Section 4. Individual Fire Insurance Limited. Except as provided in this Section, no Owner can separately insure his Residence or any part of it against loss by fire or other casualty covered by an insurance carried under Section 2 of this Article IX. If any Owner violates this provision, any diminution in insurance proceeds otherwise payable pursuant to the provisions of Section 4 that results from the existence of such other insurance will be chargeable to the Owner who acquired other insurance, and the Owner will be liable to the Association to the extent of any such diminution. An Owner can insure his personal property against loss. In addition, any improvements made by an Owner to his or her Lot may be separately insured by the Owner, but the insurance is to be limited to the type and nature of coverage commonly known as "tenant's improvements." All such insurance that is individually carried must contain a waiver of subrogation rights by the carrier as to other Owners, the Association, and institutional first mortgagee of such Lot.

Section 5. Trustee. All insurance proceeds payable under Sections 2 and 4 of this Article IX, and subject to the rights of the mortgagees under Section 9 of this Article IX, may, in the discretion of the Board of Directors, be paid to a trustee, to be held and expended for the benefit of the Owners, mortgagees and others, as their respective interests shall appear. Said trustee shall be a commercial bank in Sacramento County that agrees in writing to accept such trust. If repair or reconstruction is authorized, the Board shall have the duty to contract for such work as provided for in this Declaration.

Section 6. Other Insurance. The Board may and, if required by any mortgagee, shall purchase and maintain demolition insurance in adequate amounts to cover demolition in case of total or partial destruction and a decision not to rebuild. The Board also shall purchase and maintain worker's compensation insurance, to the extent that it is required by law, for all employees or uninsured contractors of the Association. The Board also shall purchase and maintain fidelity bonds or insurance (which shall be in an amount not less than One Hundred Fifty percent (150%) of each year's estimated annual operating expenses and shall contain an endorsement of coverage of any person who may serve without compensation) sufficient to meet the requirements of any mortgagee. The Board shall purchase and maintain such insurance on personal property owned by the Association, and any other insurance, including directors and officers (including committee members) liability insurance, that it deems necessary or that is required by any mortgagee.

Section 7. Owner's Insurance. An Owner may carry whatever personal liability and property damage liability insurance with respect to his or her Residence that he or she desires. However, any such policy shall include a waiver of subrogation clause acceptable to the Board and to any mortgagee.

Section 8. Adjustment of Losses. The Board is appointed attorney-in-fact by each Owner to negotiate and agree on the value and extent of any loss under any policy carried pursuant to Sections 1, 2 and 6 of this Article IX. The Board is granted full right and authority to compromise and settle any claims or enforce any claim by legal action or otherwise and to execute releases in favor of any insurer.

Section 9. Distribution to Mortgagees. Subject to the provisions of Article XIV, any mortgagee has the option to apply insurance proceeds payable on account of a Lot in reduction of the obligation secured by the mortgage of such mortgagee.

Section 10. Additional Insurance and Bonds. The Association may also purchase with Common Funds such additional insurance and bonds as it may, from time to time, determine to be necessary or desirable.

ARTICLE X

Damage or Destruction

Section 1. In the event of damage to or destruction of the Properties by causes insured against by the Association, the Association shall repair or replace the same from the insurance proceeds payable to it or to the trustee designated by the Board of Directors.

If damage or destruction occurs to the Common Area and the insurance proceeds are insufficient to cover the costs of repair or replacement thereof, the Association may make a Special Assessment upon all Owners (as provided in Section 3, Article IV) to cover the additional costs of repair or replacement not covered by insurance proceeds.

If damage or destruction occurs to improvements on individual Lots and the insurance proceeds are insufficient to cover costs of repair or replacement, the Association may make a Special Individual Assessment (as provided in Section 4, Article IV) to cover the additional cost of repair or replacement not covered by the insurance proceeds. Such Special Individual Assessment, for purposes of this section only, shall be levied by the Board of Directors against an individual Owner in the amount by which the cost of repair or replacement on his Lot exceeds that Owner's share of the total insurance proceeds payable by reason of the damage or destruction having occurred.





ARTICLE XI

Breach and Default

Section 1. Remedy at Law Inadequate. Except for the non-payment of any Assessment, it is hereby expressly declared and agreed that the remedy at law to recover damages for the breach, default or violation of any of the covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges or equitable servitudes contained in this Declaration are inadequate and that the failure of any Owner, tenant, occupant or user of any Lot, or any portion of the Common Area or Common Facilities, to comply with any provision of this Declaration or any rule, regulation, decision or resolution of the Board of Directors or Bylaws or Articles of Incorporation of the Association, all as may be amended from time to time, may be enjoined by appropriate legal proceedings instituted by any Owner, the Association, its officers or Board of directors, or by their respective successors in interest.


Section 2. Nuisance. Without limiting the generality of the foregoing, the result of every act or omission whereby any covenant contained in this Declaration is violated in whole or in part is hereby declared to be and constitutes a nuisance, and every remedy against nuisance, either public or private, shall be applicable against every such act or
Omission.

Section 3. Costs and Attorneys' Fees. In any action brought because of any alleged breach or default of any Owner or other party hereto under this Declaration, the Court may award to any party to such action such attorneys' fees and other costs as it may deem just and reasonable.

Section 4. Cumulative Remedies. The respective rights and remedies provided by this Declaration or by law shall be cumulative, and the exercise of any one or more of such rights or remedies shall not preclude or affect the exercise, at the same or at different times, of any other such rights or remedies for the same or any different default or breach or for the same or any different failure of any Owner or others to perform or observe any provision of this Declaration.

Section 5. Failure Not a Waiver. The failure of any Owner, the Board of Directors or the Association or its officers or agents to enforce any of the covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges or equitable servitudes contained in this Declaration shall not constitute a waiver of the right to enforce the same thereafter, nor shall such failure result in or impose any liability upon Association or the Board, or any of its officers or agents.

Section 6. Suspension of Rights. The Association shall have no power to cause a forfeiture or abridgment of an Owner's right to the full use and enjoyment of his Lot on account of a failure by the Owner (or his or her tenants or invitees) to comply with the provisions of any Charter Document o of any duly-enacted Association Rule except (a) where the loss or forfeiture is the result of the judgment of foreclosure or sale under a power of sale for failure of the Owner to pay assessments levied by the Association, or (b) where the loss or forfeiture is limited to a temporary suspension of an Owner's rights as a Member of the Association (including, without limitation, voting rights) or other appropriate discipline (including, without limitation, the imposition of monetary penalties pursuant to rules and regulations of the Association as adopted and published by the Board) for failure to comply with the Charter Documents.

A monetary penalty imposed by the Association as a disciplinary measure for failure of a member to comply with the governing instruments or as a means of reimbursing the Association for costs incurred by the Association in the repair of damage to Common Areas or Common Facilities for which the member was alleged by responsible or in bringing the member and his Lot into compliance with the Charter Documents may not be characterized nor treated as an Assessment which may become a lien against the member's Lot enforceable by a sale of the Lot in foreclosure pursuant to Sections 2924, 2924(b) and 2924(c) of the California Civil Code; provided, however, that this limitation on the Association's lien rights shall not apply to charges imposed against an Owner consisting of reasonable late payment penalties for delinquent Assessments and/or charges to reimburse the Association for the loss of interest and for costs reasonably incurred (including attorneys' fees) in the Association's efforts to collect delinquent Assessments.

No penalty or temporary suspension of rights shall be imposed pursuant to this Article Xl unless the Owner in violation is given at least 15 days' prior notice of the proposed penalty or temporary suspension and an opportunity to be heard before the Board or an authorized committee thereof with respect to the alleged violation(s) at a hearing conducted at least 5 days before the effective date of the proposed disciplinary action. Notwithstanding the foregoing, under circumstances involving conduct that constitutes (a) an immediate and unreasonable infringement of, or threat to, the safety or quiet enjoyment of neighboring Owners, (b) a traffic or fire hazard, (c) a threat of material damage to, or destruction of, the Common Areas or Common Facilities, or (d) a violation of the Charter Documents that is of such a nature that there is no material question regarding the identity of the violator or whether a violation has occurred (such as late payment of assessments or parking violations), the Board of Directors, or its duly authorized agents, can undertake immediate corrective or disciplinary action and, upon request of the offending Owner, conduct a noticed hearing as soon thereafter as reasonably possible, but in no event more than 15 days after the disciplinary action is imposed. Under such circumstances, any fine imposed pursuant to a fine schedule shall be due and payable only upon expiration of the 15-day notice period.

Any notice required by this Article may be given by any method reasonably calculated to give actual notice; provided that is notice is given by mail it shall be sent by first class or registered mail sent to the last address of the Member shown on the records of the Association.

ARTICLE XII

Amendment and Duration of Declaration

Section 1. Amendment.

(a) Amendment In General. This Declaration may be amended or revoked in any respect by the vote or assent by written ballot of the holders of not less than seventy-five percent (75%) of the voting power of the Members.

(b) Effective Date of Amendment. The amendment shall be effective upon the recordation of the Office of the Recorder of Sacramento County of an instrument setting forth the terms thereof duly certified and executed by the President and Secretary of the Association. Notwithstanding anything to the contrary herein contained, no such amendment shall affect the rights of the holder of any first deed of trust or mortgage recorded prior to the recordation of such amendment.

Section 2. Duration. The provisions of this Declaration shall continue and be effective for a period of 60 years from the date of recordation and shall be automatically extended for successive periods of 10 years each or until a majority vote of the Owners of all of the Lots within the Properties shall determine that they shall terminate.

ARTICLE XIII

Protection Of Mortgagees

Section 1. Assessment Lien Subordinated. Any lien created or claimed under the provisions of Article IV, Section 1(b) shall be subject and subordinate to the lien of any previously recorded First Mortgage given in good faith and for value. No such First Mortgagee who acquires title to any Lot by judicial foreclosure or by exercise of power of sale contained in the Mortgage shall be obligated to cure any breach of this Declaration by a former Owner of such Lot or shall be liable for any unpaid Assessments made against the Lot which accrued prior to the date the mortgagee acquired such title. No lien created or claimed under the provisions of Article IV, Section 1(b) shall in any way defeat, invalidate or impair the rights of any Mortgagee under any such recorded Mortgage.

Section 2. Amendment of this Declaration. No amendment of this Declaration shall affect any of the rights of the holder of any Mortgage described in Section 1 hereof which is made in good faith and for value, if such Mortgage is recorded and notice of the delivery and recordation thereof is given to the Association prior to the recording of such amendment, except that the rights of such Mortgagee shall be subject to such amendment if the Mortgagee joins in the execution of the amendment or, pursuant to the provisions of Section 4 hereof, votes in favor of the amendment or approves the same in writing.

Section 3. Additional Subordinations. Notwithstanding anything contained in this Declaration to the contrary, the Association may, upon the affirmative vote of the Owners entitled to vote and holding in the aggregate at least a majority of the voting power of the membership of the Association, execute a subordination agreement or agreements to extend the benefits of Sections 1 and 2 hereof to Mortgages and Mortgagees not otherwise entitled thereto.

Section 4. Default by Owner; Mortgagee's Right to Vote. in the event of a default by any Owner under a Mortgage encumbering such Owner's Lot, the Mortgagee under such Mortgage shall, upon (i) giving written notice to the defaulting Owner, (ii) recording a Notice of Default in accordance with Section 2924 of the California Civil Code, and (iii) delivering a copy of such recorded Notice of Default to the Association, have the right to exercise the vote of the Owner at any regular or special meeting of the Association held only during such period as such default continues.

Section 5. Breach; Obligation After Foreclosure. No breach of any provision of this Declaration by Declarant, the Association or any Owner shall impair or invalidate the lien of any recorded Mortgage made in good faith and for value and encumbering any Lot, but all of the covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes shall remain provided for or against any person who acquires title to or any beneficial interest in any Lot through foreclosure, trustee's sale or otherwise.

Section 6. Exchange of Information. The Association shall, at the request of any Mortgagee of any Lot, (i) report to such Mortgagee any unpaid Assessment due from the Owner of such Lot and (ii) notify the Mortgagee in writing of any default by such Owner in the performance of his obligations under this Declaration when such default has been in existence for 30 days and has not been cured. Any Mortgagee of any Lot is hereby authorized to furnish to the Board of Directors, upon written request by the Board therefor, the amount of any unpaid balance of any indebtedness secured by a lien of a Mortgage and the amount and due date of any delinquent payment or payments of such indebtedness.

Section 7. Certain Restrictions Affecting the Association. Notwithstanding any other provisions of this Declaration, without the prior written consent of at least 75 percent of the Owners and holders of first Mortgages on the Lots, such percentage to be based upon the total of number of Lots so mortgaged, with each such Mortgage entitled to one vote, the Association shall not:
(a) By act or omission abandon, partition, subdivide, encumber, sell or transfer the Common Area or any improvements thereon (except that the granting of any easement for public utilities, or for other public purposes consistent with the intended use of the Properties, shall not be deemed a "transfer" as that term is used in this clause);

(b) Change the method provided for in this Declaration of determining the Assessments or other charges which may be assessed against an Owner;

(c) By act or omission waiver or abandon the scheme of maintenance and repair of the Properties, or the enforcement thereof, as provided for in this Declaration;

(d) Fail to maintain casualty insurance on the Common Facilities in the amount and against the risks provided for in Article X; and

(e) Use any insurance proceeds received as a result of the incurrence of loss or damage to the Common Facilities for any purpose other than the repair, replacement or reconstruction of such Common Facilities.

Section 8. Right of First Mortgagees to Make Certain Payments and Right of Reimbursement Therefor. The holders of first Mortgages on the Lots shall have the right (but not the obligation), jointly or singly, (i) to pay taxes or other assessments or charges which are in default and which may or have become a lien or charge against the Common Facilities, (ii) to pay overdue premiums on casualty insurance policies for the Common Facilities, and (iii) to secure and pay for new casualty insurance coverage on the Common Facilities upon the lapse of any such policy, in the amount and against the risks provided for in Article IX. Any first Mortgagee making such payment shall be entitled to immediate reimbursement therefor from the Association. Upon the request of any first Mortgagee, the Association shall, by separate instrument, signed by the President or any Vice President and the Secretary or any Assistant Secretary, evidence its agreement to the provisions of this Section 8 as the same affects the Mortgage held by such Mortgagee.

Section 9. Right to Examine Books and Records of the Association. The holder of any first Mortgage on any Lot or on the Common Area shall have the right to (1) inspect the books and records of the Association during normal business hours, (2) receive an annual financial statement of the Association within 90 days following the end of any fiscal year of the Association, and (3) written notice of all meetings of the Association and to designate a representative to attend all such meetings. The requesting Mortgagee shall pay the actual expenses of copying and mailing of said information to the Association.

Section 10. Notices to First Mortgagees. The Association shall furnish to the holder of any first Mortgage on any Lot or on the Common Area, upon written request by the first Mortgagee, prompt notice of: (1) abandonment or termination of the Association, (2) any material amendment to the Declaration, (3) the effectuation of any decision by the Association to terminate professional management, if any, and assume self-management of the Common Area and development, (4) any condemnation or eminent domain proceeding, and (5) any extensive damage to or destruction of any improvements located in or upon the Common Area.

Section 11. Superiority of Mortgage to Condemnation Proceeds. If any Lot, or portion thereof, or the Common Area, or any portion thereof, is made the subject matter of any condemnation or eminent domain proceeding, the lien of any first Mortgage shall be prior and superior to the claims of the Owners of said Lots or Common Area with respect to any distribution of the proceeds of any condemnation award or settlement.

Section 12. Superiority of Mortgage to insurance Proceeds. In the event of any substantial damage to or destruction of the improvements on any Lot, or on any part of the Common Area, the lien of any first Mortgage shall be prior and superior to the claims of the Owners of said improvements with respect to any distribution of any insurance proceeds relating to such damage or destruction.

Section 13. Amendments to Conform with Mortgagee Requirements. It is the intent of the Association that this Restated Declaration and the Articles and Bylaws of the Association, and the development in general, meet all requirements necessary to purchase, guarantee, insure and subsidize any mortgage of a Lot in the development by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Housing Administration and the Veterans' Administration.





ARTICLE XIV

Notices

Section 1. Mailing Addresses. Any communication or notice of any kind permitted or required herein shall be in writing and may be served, as an alternative to personal service, by mailing the same as follows:

If to any Owner: To the street address of his Lot or to such other address as he may from time to time designate in writing to the Association.


If to the Association Campus Commons East Ranch
Homeowners Association at the residence address of the Secretary of the Association or to such other address as the association may from time to time designate in writing to the Owner.

Section 2. Personal Service Upon Co-Owners and Others. Personal service of a notice or demand to one of the co-owners of any Lot, to any general partner of a partnership which is the Owner of Record of the Lot, or to any officer or agent for service of process of a corporation which is the Owner of Record of the Lot, shall be deemed delivered to all such co-owners, to such partnership, or to such corporation, as the case may be.

Section 3. Deposit in U. S. Mails. All notices and demands served by mail shall be by registered or certified mail, with postage prepaid, and shall be deemed delivered 48 hours after deposit in the United States mail in Sacramento County, California.

ARTICLE XV

Miscellaneous

Section 1. Construction and Severability; Singular and Plural; Titles.

(a) Restrictions Construed Together. All of the covenants, conditions and restrictions of this Declaration shall be liberally construed together to promote and effectuate the fundamental concepts of the development of the Properties as set forth in the Recitals of this Declaration. Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce that provision in a subsequent application or any other provision hereof.

(b) Restrictions Severable. Notwithstanding the provisions of subparagraph (a) above, the covenants, conditions and restrictions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity of any provision or portion thereof shall not affect the validity or enforceability of any other provision.

(c) Singular Includes Plural. The singular shall include the plural and the plural the singular unless the context requires the contrary, and the masculine, feminine or neuter shall each include the masculine, feminine and neuter, as the context requires.

(d) Captions. All captions or titles used in this Declaration are intended solely for convenience of reference and shall not affect the interpretation or application of that which is set forth in any of the terms or provisions of the Declaration.


DATED:_10/4/99 CAMPUS COMMONS EAST RANCH
HOMEOWNER’S ASSOCIATION


[signed] [signed]
_______________________ By______________________________
(Witness) Carolyn Engler (Board Member) Alan K. Kolster (President)

[signed]
By_______________________________
Betty J. Kanner (Secretary)