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Home My WebLink About20042493.tiff DECLARATION OF COVENANTS This Declaration of Covenants is made as of ,200 ,by Outlot B,Hill N Park Subdivision, Property Owners Association, Inc., a Colorado nonprofit Corporation (the "Declarant"). RECITALS A. Declarant is the owner of that certain real property located in the County of Weld, Colorado, more particularly described on the attached Exhibit A (the "Property"). B. Declarant desires to create a common interest community pursuant to the Colorado Common Interest Ownership Act as set forth in Colorado Revised Statute§38-33.3-101 et. seq. (the "Act") on the Property, the name of which is Outlot B, Hill N Park Subdivision Property Owners Association, Inc., Weld County, Colorado. ARTICLE 1 DECLARATION AND SUBMISSION 1.1 Declaration. Declarant hereby declares that the Property shall be held, sold and -- conveyed subject to the following covenants, restrictions and easements which shall run with the land and be binding on all parties and heirs, successors and assigns of parties having any right, title or interest in all or any part of the Property. Additionally,Declarant hereby submits the Property to the provisions of the Act. ARTICLE 2 DEFINITIONS The following words when used in this Declaration or any Supplemental Declaration, the Articles of Incorporation or any Amendments thereto and the Bylaws or any Amendments thereto, shall have the following meanings: 2.1 Agency means any agency or corporation that purchases or insures residential mortgages. 2.2 Articles mean the Articles of Incorporation for Outlot B, Hill N Park Subdivision Property Owners Association, Inc., a Colorado nonprofit corporation, currently on file with the Colorado Secretary of State, and any amendments that may be made to those Articles from time to time. 2.3 Annual Assessment means the Assessment levied pursuant to an annual budget. 2004-2493 2.4 Assessments means the Annual, Special and Default Assessments levied pursuant to Article 10 below. Assessments are also referred to as a Common Expense Liability as defined under the Act. 2.5 Association means JER Partnership Property Owners Association, Inc., a Colorado nonprofit corporation, and its successors and assigns. 2.6. Association Documents means this Declaration, the Articles of Incorporation, the Bylaws,the Map and any procedures,rules,regulations or policies adopted under such documents by the Association. 2.7. Bylaws means the Bylaws adopted by the Association,as amended from time to time. 2.8 Clerk and Recorder means the office of the Clerk and Recorder in the County of Weld, Colorado. 2.9 Common Element means all real and personal property now or hereafter owned by the Association for the common use and enjoyment of the Owners. The Common Elements,if any, are owned by the Owners and consist of General Common Elements, if any, and Limited Common Elements, if any. 2.9.1 General Common Elements means all tangible physical real and personal properties of this Project except Limited Common Elements and the Residential Units. 2.9.2 Limited Common Elements means those parts of the Common Elements which are either limited to or reserved in this Declaration, on a Map or by action of the Association, for the exclusive use of an Owner of a Residential Unit or are limited to and reserved for the common use of more than one but fewer than all Owners. 2.10 Common Expenses means (i) all expenses expressly declared to be common expenses by this Declaration or the Bylaws of the Association; (ii) all other expenses of administering, servicing, conserving, managing, maintaining, repairing or replacing the Common Elements; (iii) insurance premiums for the insurance carried under Article 9; and(iv) all expenses lawfully determined to be common expenses by the Executive Board. 2.11 County means the County of Weld, Colorado. 2.12 Declaration means this Declaration and the Map,and amendments and supplements to the foregoing. 2.13 Executive Board means the governing body of the Association. 2 2.14 First Mortgage means any Mortgage that is not subject to any monetary lien or encumbrance except liens for taxes or other liens that are given priority by statute. 2.15 First Mortgagee means any person named as a mortgagee or beneficiary in any First Mortgage, or any successor to the interest of any such person under such First Mortgage. 2.16 Manager means a person or entity engaged by the Association to perform certain duties, powers or functions of the Association, as the Executive Board may authorize from time to time. 2.17 Map means the Final Plan of Replat of Outlot B, Hill N Park subdivision, a part of S1/2 Section 26, Township 5 North, Range 66 West of the 6th P.M., Weld County, Colorado, of the subdivided Parcels recorded with the office of the Clerk and Recorder of Weld County, Colorado, depicting a plan or plat of the Property subject to this Declaration and any supplements and amendments thereto. 2.18 Member means every person or entity that holds membership in the Association. 2.19 Mortgage means any mortgage, deed of trust or other document pledging any Residential Unit or interest therein as security for payment of a debt or obligation. 2.20 Mortgagee means any person named as a mortgagee or beneficiary in any Mortgage, or any successor to the interest of any such person under such Mortgage. 2.21 Owner means the owner of record, whether one or more persons or entities, of fee simple title to any Residential Unit, and "Owner" also includes the purchaser under a contract for deed covering a Residential Unit with a current right of possession and interest in the Residential Unit. 2.22 Parcel means each platted, numbered and recorded division of vacant land as depicted on the Map. 2.23 Project means the common interest community created by this Declaration and as shown on the Map, consisting of the Property and the Common Elements. 2.24 Property means the real property described in Exhibit A attached hereto, together with such additional property as is subject to this Declaration. 2.25 Residential Unit means one Parcel, together with the appurtenant interest in the Common Elements. 3 �-� 2.26 Successor Declarant means any person or entity to whom Declarant assigns any or all of its rights,obligations or interest as Declarant,as evidenced by an assignment or deed of record executed by both Declarant and the transferee or assignee and recorded with the Clerk and Recorder. 2.27 Supplemental Declaration means an instrument which annexes property to this Declaration. 2.28 Supplemental Map means a supplemental Map of the Project which depicts any change in the Project through a Supplemental Declaration. The initial phase recordings are not supplemental and do not require amendment to this document. Each capitalized term not otherwise defined in this Declaration or in the Map shall have the same meanings specified or used in the Act. ARTICLE 3 NAME,DIVISION INTO RESIDENTIAL UNITS, RESTRICTIONS ON USE 3.1 Name. The name of the subdivision is Replat of Outlot B Hill N Park.. The subdivision is a common interest community pursuant to the Act. 3.2 Association. The name of the association is JER Partnership Property Owners '� Association,Inc. Declarant has caused the Association to be incorporated as a nonprofit corporation under the laws of the State of Colorado. 3.3 Number of Residential Units. The maximum number of Residential Units in the Project is eighteen (18), exclusive of parcels annexed to the Project. 3.4 Identification of Residential Units. The identification number of each Residential Unit is shown on the Map. 3.5 Description of Residential Units. Each Residential Unit shall consist of surveyed and platted undeveloped, vacant land. 3.6 Restrictions on Use. Use and enjoyment of each Residential Unit shall be subject to the following restrictions and such additional restrictions as the Executive Board may propose and are accepted by the Owners by a vote of two-thirds (2/3) of the majority of all Owners. 3.6.1 Every lot in the subdivision shall be occupied for single-family residential purposes only by either a conventional fixed location home constructed on the lot, or manufactured home (as defined in Amended Section 10.1.M of Weld County Ordinance No. 89-DD). No buildings shall be erected,altered,placed or permitted to remain on any lot 4 other than one detached single-family dwelling not exceeding two stories in height and a private garage not for more than three vehicles. 3.6.2 All dwellings shall be of a quality equal to or better than that of the dwellings in West Hill-N-Park Third Filing, also known as Arrowhead South, pursuant to the recorded Third Filing Covenants. The area of dwellings, exclusive of open porches and garages,shall be as follows: a. Not less than One Thousand Two Hundred Fifty square feet(1,250 sq. ft.) for a one-story dwelling; b. Not less than One Thousand Two Hundred Fifty square feet(1,250 sq. ft.) for the total of any two adjacent levels of a dwelling with three or more levels; c. Not less than One Thousand Two Hundred Fifty square feet(1,250 sq. ft.) on the upper level of a two-level home where the lower is a garden level; and d. Not less than seven hundred square feet (700 sq. ft.) per story for a home of two stories or more. 3.6.3 No structure of a temporary character,trailer,basement, tent, shack, garage, barn or other outbuilding shall be used on any lot at any time as a residence either temporarily or permanently. 3.6.4 No sign of any kind shall be displayed to the public view on any lot, except one professional sign of not more than one square foot, one sign of not more than six square feet advertising the property for sale or rent, or signs used by a builder to advertise the property during the construction and sales period. 3.6.5 No lot shall be used for an open storage of construction materials or any other material, except during the construction of an authorized improvement. 3.6.6 No noxious or offensive trade or activity shall be conducted upon any lot. 3.6.7 No animals of any kind shall be raised, bred or kept upon any lot for commercial purposes. 3.6.8 No patio, carport or other addition to a home shall be located any nearer than thirty feet(30') from the rear lot line, twenty feet(20') from the front lot line,and the greater of ten feet (10') from or one-third of such building height from a side lot line. 3.6.9 Fencing shall be either of two styles: Elcar type chain link,four or five feet in height; or cedar or redwood board fencing not to exceed six feet in height. No fence shall be 5 placed on the front twenty feet (20') of lot. The subdivision boundary fence shall be constructed as directed by Weld County. 3.6.10 In no event shall any portion of any home or other structure be erected over any easement for utilities or otherwise. 3.6.11 No lot as platted shall be subdivided for the purpose of making two or more lots. No more than one home shall be permitted on any one lot. 3.6.12 Easements for utilities and maintenance thereof are reserved as shown on the recorded plat. 3.6.13 Natural drainage associated with any lot shall not be altered so as to drain onto the adjacent properties. 3.6.14 All trash, garbage and other household debris shall not be allowed to accumulate for more than seven (7) days before disposal. Each property owner shall be responsible for the proper storage and disposal of trash, garbage and household debris in accordance with the current rules of the County Health Department. 3.6.15 No animals or fowl of any kind shall be kept or maintained on any lot except that either two dogs,two cats or two caged birds may be kept as pets. The total number shall not exceed three animals and can be a combination thereof,but cannot be more than two of the same species. All animals shall be confined to the individual property owner's premises, and such confinement shall not be on the portion of the lot bordering upon the streets or walkways of the subdivision. 3.6.16 No motor vehicle which is not currently licensed,capable of moving under its own power,and equipped with functioning lights and all other equipment required by law for operation on public highways shall be kept, stored or allowed to stand on any lot nor be parked on the street. 3.6.17 No boat, trailer,camper or habitable motor vehicle shall be kept or stored on any lot except within an enclosure which will screen such boat,trailer or vehicle from view from the street and adjoining lots;nor shall it be parked on the street for a period longer than forty-eight (48) hours. 3.6.18 Each lot shall be accompanied by a voting and assessable membership in the West Hill-N-Park 5th Filing Property Owners Association, Inc. Bylaws for the Association will be developed, changed and enforced by the Board of Directors of the Association. 3.6.19 The developers of Replat of Outlot B Hill N Park subdivision shall maintain the designated open spaces and parks until such time as fifty percent (50%) plus one of the total lots have been sold to other voting members. At that time the Association shall be 6 responsible for the maintenance of all said open spaces and other areas designated for the use of all residents of Replat of Outlot B Hill N Park subdivision. 3.6.20 Due to the damages to streets and ways within Replat of Outlot B Hill N Park subdivision occasioned by the use of said streets and ways by semi-tractor/trailer rigs,no lot owners or occupants or invitees of the same shall traverse the street or ways within the subdivision with a vehicle with a gross weight greater than five tons. ARTICLE 4 MEMBERSHIP AND VOTING RIGHTS; ASSOCIATION OPERATIONS 4.1 The Association. Every Owner of a Residential Unit shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of a Residential Unit. 4.2 Transfer of Membership. An Owner shall not transfer, pledge or alienate his membership in the Association in any way, except upon the sale or encumbrance of his Residential Unit and then only to the purchaser or Mortgagee of his Residential Unit. The Association shall not create a right of first refusal on any Residential Unit and Owners may transfer ownership of their Residential Units free from any such right. 4.3 Membership. The Association shall have one class of membership consisting of all Owners, including the Declarant so long as Declarant continues to own an interest in a Residential Unit. Except as otherwise provided for in this Declaration, each Member shall be entitled to vote in Association matters as set forth in Article III of the Bylaws. Each Owner,including Declarant while Declarant owns any Residential Unit,is subject to all the rights and duties assigned to Owners under the Association Documents. 4.4 Voting. There shall be one vote per Residential Unit. (a) The owners of each Residential Unit shall have one vote per Parcel owned. (b) If only one of several owners of a Residential Unit is present at a meeting of the Association,the owner present is entitled to cast all the votes allocated to the Residential Unit. If more than one of the owners are present,the votes allocated to the Residential Unit may be cast only in accordance with the agreement of a majority in interest of the owners. There is majority agreement if any one of the owners casts the votes allocated to the Residential Unit without protest being made promptly to the person presiding over the meeting by another owner of the Residential Unit. 4.5 Books and Records. The Association shall make available for inspection, upon request, during normal business hours or under other reasonable circumstances, to Owners and to 7 Mortgagees, current copies of the Association Documents and the books, records and financial statements of the Association prepared pursuant to the Bylaws. The Association may charge a reasonable fee for copying such materials. 4.6 Manager. The Association may employ or contract for the services of a Manager to whom the Executive Board may delegate certain powers, functions or duties of the Association, as provided in the Bylaws of the Association. The Manager shall not have the authority to make expenditures except upon prior approval and direction by the Executive Board. 4.7 Rights of Action. The Association on behalf of itself and any aggrieved Owner shall be granted a right of action against any and all Owners for failure to comply with the provisions of the Association Documents, or with decisions of the Executive Board made pursuant to authority granted to the Association in the Association Documents. The Owners shall have a right of action against the Association for failure to comply with the provisions of the Association Documents, or with decisions of the Executive Board made pursuant to authority granted to the Association in the Association Documents. In any action covered by this section, the Association or any Owner shall have the right but not the obligation to enforce the Association Documents by any proceeding at law or in equity, or as set forth in the Association Documents, or by mediation or binding arbitration if the parties so agree. The prevailing party in any arbitration or judicial relief shall be entitled to reimbursement from the non-prevailing party or parties, for all reasonable costs and expenses, including attorneys' fees in connection with such arbitration or judicial relief. Failure by the Association or by any Owner to enforce compliance with any provision of the Association Documents shall not be deemed a waiver of the right to enforce any provision thereafter. 4.8 Implied Rights and Obligations. The Association may exercise any right or privilege expressly granted to the Association in the Association Documents,by the Act, and by the Colorado Nonprofit Corporation Act. 4.9 Notice. Any notice to an Owner of matters affecting the Project by the Association or by another Owner shall be sufficiently given if in writing and delivered personally,by courier or private service delivery,or the third business day after deposit in the mails for registered or certified mail,return receipt requested, at the address of record for real property tax assessment notices with respect to that Owner's Residential Unit. ARTICLE 5 POWERS OF THE EXECUTIVE BOARD OF THE ASSOCIATION 5.1 Except as provided in the Bylaws and the Act, the Executive Board may act in all instances on behalf of the Association, to: 5.1.1 Adopt and amend bylaws and rules and regulations; 8 5.1.2 Adopt and amend budgets for revenues,expenditures and reserves and collect Assessments; 5.1.3 Hire and terminate managing agents and other employees, agents and independent contractors; 5.1.4 Institute,defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Owners on matters affecting the Project; 5.1.5 Make contracts and incur liabilities; 5.1.6 Regulate the use, maintenance, repair, replacement and modification of Common Elements, if any; 5.1.7 Cause additional improvements to be made as a part of the Common Elements, if any; 5.1.8 Acquire,hold, encumber and convey in the name of the Association any right, title or interest to real or personal property, except that Common Elements, if any, may be conveyed or subjected to a security interest only if Members entitled to cast at least eighty percent (80%) of the votes agree to that action, and if all Owners of Residential Units to which any Limited Common Element is allocated agree in order to convey that Limited Common Element or subject it to a security interest. 5.1.9 Grant easements, leases, licenses and concessions through or over the Common Elements, if any; 5.1.10 Annex additional property, but only if all members vote and agree to such annexation; 5.1.11 Impose and receive any payments, fees or charges for the use, rental or operation of the General Common Elements, if any; 5.1.12 Impose charges for late payment of Assessments,recover reasonable attorney fees and other legal costs for collection of Assessments and other actions to enforce the power of the Association,regardless of whether or not suit was initiated,and after notice and opportunity to be heard, levy reasonable fines for violations of the Association Documents; 5.1.13 Impose reasonable charges for the preparation and recordation of amendments to the Declaration or statements of unpaid Assessments; 5.1.14 Provide for the indemnification of its officers and Executive Board and maintain directors' and officers' liability insurance; 5.1.15 Assign its right to future income,including the right to receive Assessments; 9 5.1.16 Exercise any other powers conferred by the Declaration or Association Bylaws; 5.1.17 Exercise all other powers that may be exercised in this state by legal entities of the same type as the Association; and 5.1.18 Exercise any other powers necessary and proper for the governance and operation of the Association. ARTICLE 6 MECHANIC'S LIENS 6.1 No Liability. If any Owner shall cause any material to be famished to his Residential Unit or any labor to be performed therein or thereon,no Owner of any other Residential Unit shall under any circumstances be liable for the payment of any expense incurred or for the value of any work done or material furnished. All such work shall be at the expense of the Owner causing it to be done, and such Owner shall be solely responsible to contractors, laborers, materialmen and other persons furnishing labor or materials to his Residential Unit. 6.2 Indemnification. If,because of any act or omission of any Owner,any mechanic's or other lien or order for the payment of money shall be filed against the Common Elements, if any,or the Association(whether or not such lien or order is valid or enforceable as such),the Owner whose act or omission forms the basis for such lien or order shall at his own cost and expense cause the same to be canceled and discharged of record or bonded by a surety company reasonably acceptable to the Association,or to such other Owner or Owners,within twenty(20)days after the date of filing thereof,and further shall indemnify and save all the other Owners and the Association harmless from and against any and all costs, expenses, claims, losses or damages including, without limitation, reasonable attorneys fees resulting therefrom. 6.3 Association Action. Labor performed or materials furnished for the Common Elements, if any, if duly authorized by the Association in accordance with this Declaration or its Bylaws, shall be the basis for the filing of a lien pursuant to law against the Common Elements, if any. Any such lien shall be limited to the Common Elements, if any, and no lien may be effected against an individual Residential Unit or Units. ARTICLE 7 EASEMENTS 7.1 Recorded Easements. The Property shall be subject to all easements as shown on any Map or plat, those of record, those provided in the Act (including easements for encroachment 10 set forth in Section 214 of the Act and an easement for maintenance of any such encroachment),and otherwise as set forth in this Article. 7.2 Utility Easements. There is hereby created an easement as depicted on the Map or subdivision plat for ingress and egress,installation,replacing,repairing and maintaining all utilities, including, but not limited to, water, sewer, gas, telephone, cable TV, electricity and fences. Said easement includes future utility services not presently available to the Residential Units which may reasonably be required in the future. By virtue of this easement,it shall be expressly permissible for the companies providing utilities to erect and maintain the necessary equipment on any of the Residential Units and to affix and maintain electrical and/or telephone wires, circuits and conduits on, above, across and under the roofs and exterior walls of the improvements, all in a manner customary for such companies in the area surrounding the Property, subject to approval by the Association as to locations. 7.3 Reservation of Easements,Exceptions and Exclusions. The Association is hereby granted the right to establish from time to time, by declaration or otherwise, utility and other easements, permits or licenses over the Common Elements, if any, for the best interest of all the Owners and the Association. Each Owner is hereby granted a perpetual nonexclusive right of ingress to and egress from the Owner's Residential Unit over and across the General Common Elements, if any, and Limited Common Elements, if any, appurtenant to that Owner's Residential Unit, which right shall be appurtenant to the Owner's Residential Unit,and which right shall be subject to limited and reasonable restriction on the use of Common Elements, if any, set forth in writing by the Association. 7.4 Emergency Access Easement. A general easement is hereby granted to all police, sheriff, fire protection,ambulance and other similar emergency agencies or persons to enter upon the Property in the proper performance of their duties. 7.5 Fence Easement. There is hereby created an easement for a fence located on the north boundary of the property as depicted on the subdivision plat and Map,which fence is a General Common Element together with an easement ten feet (10') in width for repair and maintenance of such fence. ARTICLE 8 MAINTENANCE 8.1 Maintenance by Owners. Each Owner shall maintain and keep in repair his Residential Unit and any structures or buildings thereon, including the fixtures thereof to the extent current repair shall be necessary in order to avoid damaging other Owners. 11 8.2 Maintenance by Association. The Association shall be responsible for the maintenance and repair of the Common Elements, if any(unless necessitated by damage caused by the negligence, misuse or tortious act of an Owner or Owner's Agent), including any drainage structure or facilities and any fences constructed by Declarant within the utility easement reserved in Article 7, section 7.2,for Residential Units with perimeter lot lines,and such maintenance and repair shall be the Common Expense of all Owners. This maintenance shall include, but shall not be limited to upkeep,repair and replacement. The fence located on the north boundary of the property, the barricade fence and other barricade structures constructed by Declarant on the 47th Avenue right- of-way, the drainage facilities and open space and drainage detention area as depicted on the Map and subdivision plat. 8.3 Association Maintenance as Common Expense. The cost of maintenance and repair by the Association shall be a Common Expense of all the Owners,to be shared by each Owner equally. 8.4 Grant of Enforcement Rights to Weld County, Colorado. In the event the Association fails to maintain the Common Elements in a reasonable manner,Weld County may serve written notice upon the Association or upon the residents of the property setting forth the manner in which the Association has failed to maintain the Common Elements in reasonable condition, and said notice shall include a demand that such deficiencies of maintenance be cured within thirty(30) days thereof and shall state the date and place of a hearing thereon which shall be held within fourteen(14)days of the notice. At such hearing Weld County may modify the terms of the original notice as to deficiencies and may give an extension of time within which they shall be cured. If the deficiencies set forth in the original notice or in the modifications thereof are not cured within said thirty(30)days or any extension thereof,Weld County,in order to preserve the taxable values ofthe properties within the property and to prevent the Common Elements from becoming a public nuisance, may enter upon said Common Elements and maintain the same for a period of one year. Said entry and maintenance shall not vest in the public any right to use the Common Elements except when the same is voluntarily dedicated to the public by the Owners. Before the expiration of said year,Weld County shall, upon its initiative or upon the written request ofthe Association theretofore responsible for the maintenance of the Common Elements,call a public hearing upon notice to such organization or to the residents of the property to be held by the Board designated by Weld County, at which hearing such Association or the residents of the property shall show cause why such maintenance by Weld County shall not, at the election of Weld County continue for a succeeding year. If the Board designated by Weld County determines that the Association is ready and able to maintain said Common Elements in reasonable condition,Weld County shall cease to maintain said Common Elements at the end of said year. If the Board designated by Weld County determines that the Association is not ready and able to maintain said Common Elements in a reasonable condition, Weld County may, in its discretion, continue to maintain said Common Elements during the next succeeding year and, subject to a similar hearing and determination, in each year thereafter. The cost of such maintenance by Weld County shall be paid by the Owners of properties within the property that have a right of enjoyment of the Common Elements, and any unpaid 12 assessments shall become a tax lien on said properties. Weld County shall file a notice of such lien in the office of the County Clerk and Recorder upon the properties affected by such lien within the property and shall certify such unpaid assessments to the Board of County Commissioners and County Treasurer for collection, enforcement and remittance in the manner provided by law for the collection, enforcement and remittance of general property taxes. ARTICLE 9 INSURANCE 9.1 General Insurance Provisions. The Association shall acquire and pay for,out of the assessments levied under Article 10 below, any insurance policies required by the Colorado Common Interest Owners Act and such other insurance as the Executive Board may, within its discretion, determine desirable for the protection of the Common Elements,if any. Such insurance shall conform to the requirements set forth in C.R.S. §38-33.3-313(4)-(d). An insurance policy issued to the Association does not obviate the need for Owners to obtain insurance for their own benefit. 9.2 Common Expenses. Premiums for insurance that the Association acquires and other expenses connected with acquiring such insurance are Common Expenses. 9.3 Fidelity Insurance. Fidelity insurance or fidelity bonds must be maintained by the Association to protect against dishonest acts on the part of its officers, directors, trustees, independent contractors and employees and on the part of all others,including any manager hired by the Association,who handle or are responsible for handling the funds belonging to or administered by the Association. In addition, if responsibility for handling funds is delegated to a Manager, such insurance must be obtained by or for the Manager and its officers, employees and agents, as applicable. Such fidelity insurance or bond shall name the Association as insured and shall contain waivers of all defenses based upon the exclusion of persons serving without compensation from the definition of"employees," or similar terms or expressions. 9.4 Workers' Compensation Insurance. The Executive Board shall obtain workers' compensation or similar insurance with respect to its employees, if applicable, in the amounts and forms as may now or hereafter be required by law. ARTICLE 10 ASSESSMENTS 10.1 Obligation. Each Owner, including Declarant while an Owner of any Residential Unit, is obligated to pay to the Association(1) the Annual Assessments; (2) Special Assessments; and (3) Default Assessments. 10.2 Budget. Within thirty (30) days after the adoption of any proposed budget for the Association by the Executive Board pursuant to the terms of Article 2,section 2.2 of the Bylaws,the 13 • Executive Board shall mail, by ordinary first-class mail, or otherwise deliver a summary of the budget to all the Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen(14)nor more than sixty(60)days after mailing or other delivery of the summary.Unless at that meeting a majority of all Owners reject the budget,the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the Owners must be continued until such time as the Owners ratify a subsequent budget proposed by the Executive Board. The Executive Board shall adopt a budget and submit the budget to a vote of the Owners pursuant to the provisions in the Bylaws. The Executive Board shall levy and assess the Annual Assessments in accordance with the annual budget. 10.3 Annual Assessments. Annual Assessments made for Common Expenses shall be based upon the estimated cash requirements as the Executive Board shall from time to time determine to be paid by all of the Owners. Estimated Common Expenses shall include,but shall not be limited to, the cost of routine maintenance and operation of the Common Elements, if any, expenses of management and insurance premiums for insurance coverage as deemed desirable or necessary by the Association, landscaping of the property, care of grounds within the Common Elements,routine repairs,replacements and renovations within and of the Common Elements,if any, wages, common water and utility charges for the Common Elements, if any, legal and accounting fees,management fees, expenses and liabilities incurred by the Association under or by reason of this Declaration,payment of any default remaining from a previous assessment period, and the creation of a reasonable and adequate contingency or other reserve or surplus fund for insurance deductibles and general, routine maintenance, repairs and replacement of improvements within the Common Elements on a periodic basis, as needed. Annual Assessments shall be payable in monthly installments on a prorated basis in advance and shall be due on the first day of each month. The omission or failure of the Association to fix the Annual Assessments for any assessment period shall not be deemed a waiver,modification or release of the Owners from their obligation to pay the same.The Association shall have the right,but not the obligation, to make prorated refunds of any Annual Assessments in excess of the actual expenses incurred in any fiscal year. 10.4 Apportionment of Annual Assessments. The Common Expenses shall be allocated among the Residential Units equally for Common Expenses in effect on the date of assessment. 10.5 Special Assessments. In addition to the Annual Assessments, the Association may levy in any fiscal year one or more Special Assessments, payable over such a period as the Association may determine, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of improvements within the Common Elements, if any, or for any other expense incurred or to be incurred as provided in this Declaration. This section 10.5 shall not be construed as an independent source of authority for the Association to incur expense, but shall be construed to prescribe the manner of assessing expenses authorized by other sections of this Declaration.Any amounts assessed pursuant to this section shall be assessed to Owners according to their Allocated Interests for Common Expenses, subject to the 14 right of the Association to assess only against the Owners of affected Residential Units any extraordinary maintenance,repair or restoration work on fewer than all of the Residential Units shall be borne by the Owners of those affected Residential Units only, and any extraordinary insurance costs incurred as a result of the value of a particular Owner's Residential Unit or the actions of a particular Owner(or his agents, servants, guests, tenants or invitees) shall be borne by that Owner. Notice in writing of the amount of such Special Assessments and the time for payment of the Special Assessments shall be given promptly to the Owners,and no payment shall be due less than ten(10) days after such notice shall have been given. 10.6 Default Assessments. All monetary fines assessed against an Owner pursuant to the Association Documents, or any expense of the Association which is the obligation of an Owner or which is incurred by the Association on behalf of the Owner pursuant to the Association Documents, shall be a Default Assessment and shall become a lien against such Owner's Residential Unit which may be foreclosed or otherwise collected as provided in this Declaration. Notice of the amount and due date of such Default Assessment shall be sent to the Owner subject to such Assessment at least ten (10) days prior to the due date. 10.7 Effect of Nonpayment; Assessment Lien. Any Assessment installment, whether pertaining to any Annual, Special or Default Assessment,which is not paid on or before its due date shall be delinquent. If an Assessment installment becomes delinquent, the Association, in its sole discretion, may take any or all of the following actions: (a) Assess a late charge for each delinquency in such amount as the Association deems appropriate; (b) Assess an interest charge from the due date at the yearly rate of eighteen percent (18%), or such other lawful rate as the Executive Board may establish; (c) Suspend the voting rights of the Owner during any period of delinquency; (d) Suspend the rights of the Owner,and the Owner's family, guests,lessees and invitees, to use Common Element facilities during any period of delinquency; (e) Accelerate all remaining Assessment installments so that unpaid Assessments for the remainder of the fiscal year shall be due and payable at once; (0 Bring an action at law against any Owner personally obligated to pay the delinquent Assessments; and (g) Proceed with foreclosure as set forth in more detail below. 15 Assessments chargeable to any Residential Unit shall constitute a lien on such Residential Unit. The Association may institute foreclosure proceedings against the defaulting Owner's Residential Unit in the manner for foreclosing a mortgage on real property under the laws of the State of Colorado. In the event of any such foreclosure, the Owner shall be liable for the amount of unpaid Assessments, any penalties and interest thereon, the cost and expenses of such proceedings, the cost and expenses for filing the notice of the claim and lien, and all reasonable attorney's fees incurred in connection with the enforcement of the lien.The Association shall have the power to bid on a Residential Unit at foreclosure sale and to acquire and hold, lease, mortgage and convey the same. 10.8 Personal Obligation. Each Assessment against a Residential Unit is the personal obligation of the person who owned the Residential Unit at the time the Assessment became due and shall not pass to successors in title unless they agree to assume the obligation. No Owner may exempt himself from liability for the Assessment by abandonment of his Residential Unit or by waiver of the use or enjoyment of all or any part of the Common Elements, if any. Suit to recover a money judgment for unpaid Assessments,any penalties and interest thereon,the cost and expenses of such proceedings, and all reasonable attorneys fees in connection therewith shall be maintainable without foreclosing or waiving the Assessment lien provided in this Declaration. 10.9 Payment by Mortgagee. Any Mortgagee holding a lien on a Residential Unit may pay any unpaid Assessment payable with respect to such Residential Unit,together with any and all costs and expenses incurred with respect to the lien, and upon such payment that Mortgagee shall have a lien on the Residential Unit for the amounts paid with the same priority as the lien of the Mortgage. 10.10 Statement of Status of Assessment Payment. Upon payment of a reasonable fee set from time to time by the Executive Board and upon fourteen (14) days' written request to the Association's registered agent by personal delivery or certified mail, first-class postage prepaid, return receipt, any Owner, designee of Owner, Mortgagee, prospective Mortgagee or prospective purchaser of a Residential Unit shall be furnished with a written statement setting forth the amount of the unpaid Assessments,if any,with respect to such Residential Unit. Unless such statement shall be issued by personal delivery or by certified mail, first class postage prepaid, return receipt requested, to the inquiring party (in which event the date of posting shall be deemed the date of delivery)within fourteen(14)days after receipt of the request,the Association shall have no right to assert a lien upon the Residential Unit over the inquiring party's interest for unpaid Assessments which were due as of the date of the request. 10.11 Maintenance Accounts; Accounting. If the Association delegates powers of the Executive Board or its officers relating to collection,deposit,transfer or disbursement of Association funds to other persons or to a manager, then such other persons or manager must (a) maintain all funds and accounts of the Association separate from the funds and accounts of other associations managed by the other person or manager,(b)maintain all reserve and working capital accounts of the Association separate from the operational accounts of the Association, and (c) provide to the 16 Association an annual accounting and financial statement of Association funds prepared by the manager, a public accountant or a certified public accountant. ARTICLE 11 DAMAGE OR DESTRUCTION 11.1 Role of the Executive Board. Except as provided in section 8.2, in the event of damage to or destruction of all or part of any Common Elements improvement, or other property covered by insurance written in the name of the Association under Article 9, the Executive Board shall arrange for and supervise the prompt repair and restoration of the damaged property (the property insured by the Association pursuant to Article 9 is sometimes referred to as the"Association Insured Property"). 11.2 Disbursement of Funds for Repair and Reconstruction. The insurance proceeds held by the Association and the amounts received from the Special Assessments provided for above, constitute a fund for the payment of the costs of repair and reconstruction after casualty. It shall be deemed that the first money disbursed in payment for the costs of repair and reconstruction shall be made from insurance proceeds, and the balance from the Special Assessments. If there is a balance remaining after payment of all costs of such repair and reconstruction, such balance shall be distributed to the Owners in proportion to the contributions each Owner made as Special Assessments, the remainder to be divided among the Residential Units first to the Mortgagees and then to the Owners, as their interests appear. ARTICLE 12 CONDEMNATION 12.1 Rights of Owners. Whenever all or any part of the Common Elements shall be taken by any authority having power of condemnation or eminent domain or whenever all or any part of the Common Elements is conveyed in lieu of a taking under threat of condemnation by the Executive Board acting as attorney-in-fact for all Owners under instructions from any authority having the power of condemnation or eminent domain, each Owner shall be entitled to notice of the taking or conveying. The Association shall act as attorney-in-fact for all Owners in the proceedings incident to the condemnation proceeding, unless otherwise prohibited by law. 12.2 Partial Condemnation;Distribution of Award;Reconstruction. The award made for such taking shall be payable to the Association for the benefit of the Owners and Mortgagees and, unless otherwise required under the Act, the award shall be disbursed as follows: If the taking involves a portion of the Common Elements on which improvements have been constructed, then, unless within sixty (60) days after such taking Declarant and Owners who represent at least sixty-seven percent (67%)of the votes of all of the Owners shall otherwise agree, the Association shall restore or replace such improvements so taken on the remaining land included in the Common Elements to the extent lands are available for such restoration or replacement in 17 • accordance with plans approved by the Executive Board. If such Common Elements are to be repaired or restored, the provisions in Article 11 above regarding the disbursement of funds in respect to casualty damage or destruction which is to be repaired shall apply. If the taking does not involve any Common Elements, or if there is a decision made not to repair or restore, or if there are net funds remaining after any such restoration or replacement is completed, then such award or net funds shall be distributed equally among the Residential Units, first to the Mortgagees and then to the Owners, as their interests appear. 12.3 Complete Condemnation. If all of the property is taken, condemned, sold or otherwise disposed of in lieu of or in avoidance of condemnation, then the regime created by this Declaration shall terminate,provided that the approval is first obtained of fifty-one percent(51%)of First Mortgagees of Residential Units subject to First Mortgages(which percentage is measured by votes allocated to such Residential Units), and the portion of the condemnation award attributable to the Common Elements shall be distributed as provided in section 12.2 above. ARTICLE 13 ASSOCIATION AS ATTORNEY-IN-FACT Each Owner hereby irrevocably appoints the Association as the Owner's true and lawful attorney-in-fact for the purposes of purchasing and maintaining insurance pursuant to Article 9, including the collection and appropriate disposition of the proceeds thereof, the negotiation and settlement of losses and execution of releases of liability, the execution of all documents, and the performance of all other acts necessary to purchase and maintain insurance as well as dealing with any improvements covered by insurance written in the name of the Association pursuant to Article 9 upon their damage or destruction as provided in Article 11, or a complete or partial taking as provided in Article 12, above. Acceptance by a grantee of a deed or other instrument of conveyance or any other instrument conveying any portion of the property shall constitute appointment of the Association as the grantee's attorney-in-:Fact, and the Association shall have full authorization,right and power to make, execute and deliver any contract, assignment, deed, waiver or other instrument with respect to the interest of any Owner which may be necessary to exercise the powers granted to the Association as attorney-in-fact. ARTICLE 14 DESIGN REVIEW No alteration or additions to the Common Elements shall be made unless first approved in writing by the Executive Board.The Executive Board shall exercise reasonable judgment to the end that all modifications to the Common Elements conform to and harmonize with existing sur- roundings and structures.The Executive Board has the absolute right to deny any requested changes which the Executive Board reasonably determines do not conform to and harmonize with existing surroundings and structures. The Executive Board has the absolute right to deny any proposed fences on individual parcels which the Executive Board reasonably determines will not conform to and harmonize with existing surroundings and structures. 18 • ARTICLE 15 MORTGAGEE'S RIGHTS The following provisions are for the benefit of holders, insurers or guarantors of First Mortgages on Residential Units. To the extent permitted under Colorado law and applicable, necessary or proper, the provisions of this Article apply to this Declaration and also to the Articles, Bylaws and Rules and Regulations of the Association. 15.1 Distribution of Insurance or Condemnation Proceeds. In the event of a distribution of insurance proceeds or condemnation awards allocable among the Residential Units for losses to,or taking of, all or part of the Common Elements, neither the Owner nor any other person shall take priority in receiving the distribution over the right of any Mortgagee who is a beneficiary of a First Mortgage against the Residential Unit. 15.2 Right to Pay Taxes and Charges. Mortgagees who hold First Mortgages against Residential Units may, jointly or singularly, pay taxes or other charges which are in default and which may or have become a charge against any Common Elements,and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy for such Common Elements, and Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association. 15.3 Audited Financial Statement. Upon written request from any Mortgagee which has '" an interest or prospective interest in any Residential Unit or the Project,the Association shall prepare and furnish within ninety (90) days an audited financial statement of the Association for the immediately preceding fiscal year, at the expense of such Mortgagee. 15.4 Notice of Action. Any First Mortgagee and any Agency which holds, insures or guarantees a First Mortgage, upon written request to the Association (which shall include the Agency's name and address and the Residential Unit number)will be entitled to timely written notice of: 15.4.1 Any proposed amendment of the Association Documents effecting a change in (a) the boundaries of any Residential Unit or the exclusive easement rights appertaining thereto, (b) the interest in the Common Elements appurtenant to the Residential Unit or the liability of Assessments relating thereto, (c)the number of votes in the Association relating to any Residential Unit, or(d) the purposes to which any Residential Unit or the Common Elements are restricted or any amendment set forth in section 16.2 below; 15.4.2 Any proposed termination of the common interest community; 15.4.3 Any condemnation loss or any casualty loss which affects a material portion of the Project or which affects any Residential Unit on which there is a First Mortgage held, insured or guaranteed by such Agency; 19 • 15.4.4 Any delinquency in the payment of Assessments owed by an Owner subject to the Mortgage where such delinquency has continued for a period of sixty(60) days; 15.4.5 Any lapse, cancellation or material modification of any insurance policy maintained by the Association pursuant to Article 9. 15.5 Action by Mortgagee. If this Declaration or any Association Documents require the approval of Mortgagees, then, if any Mortgagee fails to respond to any written proposal for such approval within thirty(30)days after such Mortgagee receives proper notice of the proposal(or such longer time as may be set forth in the notice), such Mortgagee shall be deemed to have approved such proposal provided that the notice was delivered to the Mortgagee by certified or registered mail, return receipt requested. 15.6 Liability of First Mortgagee. Notwithstanding any other provision of this Article 15, a First Mortgagee shall not be liable for any assessment, charge,penalty or fine and the lien for any such assessment, charge, penalty or fine shall be junior to any First Mortgage on a Residential Unit taken in good faith, for value, and perfected by recording in the office of the Clerk and Recorder for Weld County,Colorado,prior to the time a lien for failure to pay any such amount is recorded. Any First Mortgagee who acquires title to such Residential Unit by foreclosure or deed in lieu of foreclosure shall acquire title to such Residential Unit free and clear of any lien for unpaid assessments attributable to expenses of the Association arising after the date upon which the First Mortgagee receives a deed to the Residential Unit. The Association shall retain the right to collect all unpaid assessments, charges, penalties or fines from any excess bid at foreclosure or from the predecessor Owner pursuant to Article 10, section 10.8. ARTICLE 16 DURATION OF COVENANTS AND AMENDMENT 16.1 Term. The covenants and restrictions of this Declaration shall run with and bind the land for twenty(20) years and shall be automatically extended for successive twenty-year periods, unless an instrument is signed revoking or terminating the subdivision pursuant to the provisions of Article 16.3 of this Declaration or the Act. 16.2 Amendment. This Declaration, or any provision of it, may be amended at any time by Owners holding not less than sixty-seven percent(67%)of the votes possible to be cast under this Declaration at a meeting of the Owners called for that purpose. If approval of the First Mortgagees is required, such approval shall first be obtained from fifty-one percent(51%)of First Mortgagees of Residential Units subject to a First Mortgage (which percentage is measured by votes allocated to such Residential Units). A First Mortgagee shall be entitled to notice and the right to approve amendments,in accordance with sections 15.4 and 15.5 above, if the amendment to the Association Documents add any material provisions which establish,provide for, govern or regulate any of the following: 20 16.2.1 Voting; 16.2.2 Increases in Annual Assessments greater than ten percent(10%)of the Annual Assessments assessed in the previous year,Assessment liens or subordination of such liens; 16.2.3 Reserves for maintenance or repair and replacement of the Common Elements; 16.2.4 Insurance or fidelity bonds; 16.2.5 Reallocation of interests in the Common Elements, or rights to use of the Common Elements; 16.2.6 Responsibility for maintenance and repair of the Project; 16.2.7 Expansion or contraction of the common interest community,or the addition, annexation or withdrawal of property to or from the common interest community, or annexation. 16.2.8 Boundaries of any Residential Unit; 16.2.9 The interests in the Common Elements; 16.2.10 Convertibility of Residential Units into Common Elements or of Common Elements into Residential Units; 16.2.11 Hazard or fidelity insurance requirements; and 16.2.12 Restoration or repair of the Association (after damage or partial condemnation) other than as specified herein. Any amendment must be executed by the President of the Association and recorded, and approval of such amendment may be shown by attaching a certificate of the Secretary of the Association to the recorded instrument certifying the approval of a sufficient number of Owners of the amendment. Notwithstanding the foregoing, Declarant, acting alone,reserves to itself the right and power to modify and amend this Declaration and the Map to the fullest extent permitted under the Act. 16.3 Revocation. This Declaration shall not be revoked nor shall the regime created hereby be terminated (except as provided in Article 11 regarding total destruction and Article 12 regarding total condemnation) without (a) the consent of all of the Owners evidenced by a written instrument duly recorded with the Clerk and Recorder, and (b) the consent of sixty-seven percent 21 • (67%) of First Mortgagees of Residential Units subject to First Mortgages (which percentage is measured by votes allocated to such Residential Units). Notwithstanding the provisions of sections 16.1 and 16.2, the right of Weld County to enforce the maintenance of the Common Elements as provided in section 8.4 shall continue in perpetuity. ARTICLE 17 RIGHT TO FARM COVENANT 17.1 Location of Property. The property is located in Weld County, Colorado, and adjacent to rural or agricultural properties. The property may be impacted by agricultural uses. 17.2 Covenant. Weld County is one of the most productive agricultural counties in the United States. The rural areas of Weld County may be open and spacious, but they are intensively used for agriculture. Persons moving into a rural area must recognize there are drawbacks,including conflicts with longstanding agricultural practices and a lower level of service than in town. Agricultural uses of the land should not be expected to change their long-established agricultural practices to accommodate the intrusions of urban users into a rural area. Well run agricultural activities will generate off-site impacts, including noise from tractors and equipment; dust from animal pens, field work, harvest and gravel roads; odor from animal confinement, silage and manure; smoke from ditch burning; flies and mosquitoes; the use of pesticides and fertilizers in the fields,including the use of aerial spraying. Ditches and reservoirs cannot simply be moved"out of the way" of residential development without threatening the efficient delivery of irrigation to fields which is essential to farm production. Weld County covers a land area of over 4,000 square miles in size (twice the State of Delaware)with more than 3,700 miles of state and county roads outside of municipalities. The sheer magnitude of the area to be served stretches available resources. Law enforcement is based on responses to complaints more than on patrols of the county and the distances which must be traveled may delay all emergency responses,including law enforcement,ambulance and fire. Fire protection is usually provided by volunteers who must leave their jobs and families to respond to emergencies. County gravel roads,no matter how often they are bladed,will not provide the same kind of surface expected from a paved road. Snow removal priorities mean that roads from subdivisions to arterial roads may not be cleared for several days after a major snowstorm. Snow removal for roads within subdivisions are of the lowest priority for public works or may be the private responsibility of the homeowners. In many cases, services in rural areas will not be equivalent to municipal services. Children are exposed to different hazards in the county than in an urban setting. Farm equipment and oil field equipment, ponds and irrigation ditches, electrical power for pumps and center pivot operations, high speed traffic, sandburs, puncture vines, territorial farm dogs and 22 . livestock present real threats to children. Controlling children's activities is important,not only for their safety, but also for the protection of the farm's livelihood. ARTICLE 18 GENERAL PROVISIONS 18.1 Restriction on Declarant Powers. Notwithstanding anything to the contrary herein, no rights or powers reserved to Declarant hereunder shall exceed the time limitations or permissible extent of such rights or powers as restricted under the Act. Any provision in this Declaration in conflict with the requirements of the Act shall not be deemed to invalidate such provision as a whole but shall be adjusted as is necessary to comply with the Act. 18.2 Enforcement. Except as otherwise provided in this Declaration, the Executive Board,Declarant or any Owner shall have the right to enforce,by a proceeding at law or in equity,all restrictions, conditions, covenants,reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Executive Board of the Association, Declarant or by any Owner to enforce any covenant or restriction contained in this Declaration shall in no event be deemed a waiver of the right to do so thereafter. 18.3 Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. 18.4 Conflicts Between Documents. In case of conflict between this Declaration and the Articles and the Bylaws of the Association,this Declaration shall control.In case of conflict between the Articles and the Bylaws, the Articles shall control. 18.5 Perpetuities. If any of the covenants,conditions,restrictions or other provisions of this Declaration shall be unlawful,void or voidable for violation of the rule against perpetuities,then such provisions shall continue only until twenty-one(21)years after the death of the last survivor of the now living descendants of Elizabeth. II, Queen of England. ATTEST: OUTLOT B, HILL N PARK SUBDIVISION PROPERTY OWNERS ASSOCIATION By: John L. Shupe, Secretary Elmer Lundvall, President 23 • �-^ STATE OF COLORADO ) ) SS COUNTY OF WELD ) The foregoing was acknowledged before me this day of ,200, by Elmer Elmer Lundvall and John L. Shupe,President and Secretary,respectively,of Outlot B,Hill N Park Subdivision Property Owners Association., a Colorado nonprofit corporation. Witness my hand and official seal. Notary Public My Commission Expires: 24 EXHIBIT A Property Description Outlot B,Hill N Park subdivision,a part of the S'h Section 26,Township 5 North,Range 66 West of the 6th P.M., Weld County, Colorado. r BYLAWS OF OUTLOT B,HILL N PARK SUBIDIVSION PROPERTY OWNERS ASSOCIATION,INC. (COLORADO NONPROFIT CORPORATION) These are the Bylaws of Outlot B, Hill N Park Subdivision Property Owners Association, Inc.,a common interest association. Capitalized terms are defined in Article 2 of the Declaration of Covenants. ARTICLE I NAME OF CORPORATION The name of the corporation is Outlot B, Hill N Park Subdivision Property Owners Association, Inc., hereinafter referred to as the "Association". ARTICLE II EXECUTIVE BOARD 2.1 Number and Qualification. The affairs of the Association shall be governed by an Executive Board which, until the termination of the period of Declarant control, shall consist of no less than one person and up to three persons pursuant to the terms specified in the Articles of Incorporation. Following the date of termination of the Declarant's control, the Executive Board shall consist of no less than three and up to seven persons who shall be Owners. If any Residential Unit owned by a partnership or corporation,any officer,partner or employee of that Owner shall be eligible to serve as a Director and shall be deemed to be an Owner for the purposes of the preceding sentence. Directors shall be elected by the Owners, except for those appointed by the Declarant. At any meeting at which Directors are to be elected, the Owners may, by resolution, adopt specific procedures which are not inconsistent with these Bylaws or the Corporation Laws of the State of Colorado for conducting the elections. 2.2 Powers and Duties. The Executive Board may act in all instances on behalf of the Association, except as provided in the Declaration, these Bylaws or the Act. The Executive Board shall have, subject to the limitations contained in the Declaration and the Act,the powers and duties necessary for the administration of the affairs of the Association,which shall include the powers and duties set forth in C.R.S. §38-33.3-302(1), in Article 5 of the Declaration and shall specifically include: a. Owner Relations. Maintain businesslike relations with Owners or occupants. b. Interpretation. The powers herein granted or necessarily implied shall be construed to favor the broadest discretion of the Executive Board, except that the Executive Board shall have the duty to exercise all of such powers as required by law. C. Fiscal Responsibility. The Executive Board shall be governed by the following with respect to its fiscal duties and responsibilities: (1) Bank Account. The depository of the Association shall be such a bank or banks as shall be designated from time to time by the Executive Board and in which the monies of the Association shall be deposited. Withdrawals of monies from such accounts shall be only by checks signed by such persons as are authorized by the Executive Board, provided that a management agreement may include among its provisions authority for the manager to sign checks on behalf of the Association for payment of the obligations of the Association. (2) Interest and Counsel Fees. The Executive Board,at its option,shall have the right,in connection with the collection of this or any other charge,to impose an interest charge of 18% per annum if such payment is made after a date certain stated in such notice. In the event that the Executive Board shall effectuate collection of said charges by report to counsel, the Executive Board may add to the aforesaid charge or charges a sum or sums of 20%of the gross amount due as counsel fees,in addition to such costs allowable by law. (3) Budget. The Executive Board shall prepare a proposed annual budget for the upcoming fiscal year at least four months prior to the end of the current fiscal year. As set forth in Article 10, section 10.2, of the Declaration, within thirty(30) days after adoption of any proposed budget for the common interest association,the Executive Board shall mail, by ordinary first class mail, or otherwise deliver a summary of the budget to all the Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen(14)and not more than sixty (60) days after mailing or other delivery of the summary. Unless a majority of the Owners present or represented by proxy at the meeting vote to reject the budget, the budget is ratified whether or not a majority is present. In the event the budget is rejected, the periodic budget last ratified by the Owners must be continued until such time as the Owners ratify a subsequent budget proposed by the Executive Board. (4) Disbursement. The Executive Board shall take and hold the funds as collected and shall disburse the same for the purposes and in the manner set forth herein and as required by law. (5) Reserves. The Executive Board shall not be obligated to expend all of the revenues collected in any accounting period but may maintain a reasonable reserve for, among other things, emergencies, contingencies of bad weather or uncollected accounts. Said reserve fund or funds shall,however,be kept in interest- bearing securities,either short or long term,or in an insured,interest-bearing savings account. The foregoing shall not be construed to mean that the Executive Board shall 2 not be permitted to keep additional cash on hand in a checking or petty cash account for the necessary discharge of its function. (6) Annual Audit. The Executive Board shall submit its books,records and memoranda to an annual audit by a disinterested certified public accountant who shall audit the same and render a report thereon in writing to the Executive Board and in summary form to the members and such other persons, firms or corporation as may be entitled to same. Such audit shall be a common expense unless otherwise provided in the Declaration. (7) Accounts,. The receipts and expenditures of the Association shall be credited and charged to accounts under the following classifications as shall be appropriate, all of which expenditures shall be Common Expenses: (a) Current Expenses. Current expenses which shall include all receipts and expenditures within the year for which the budget is made, including a reasonable allowance for contingencies and working funds, except expenditures chargeable to reserves,to additional improvements or to operations. The balance of this fund at the end of each year shall be applied to reduce the assessments for current expenses for the succeeding year, or may be distributed to the membership as the Directors shall determine; (b) Deferred Maintenance Reserve. Reserve for deferred maintenance which shall include funds for maintenance items that occur less frequently than annually; (c) Replacement Reserve. Reserve for replacement which shall include funds for repair or replacement required because of damage, depreciation or obsolescence; (d) Capital Expenditures. Capita; expenditures which shall include the funds to be used for capital expenditures for additional improvement or additional personal property that will be part of the common elements. (8) Notwithstanding the foregoing,the Developer will not be required to contribute money to the Association in the form of annual dues until 75% of the Parcels are sold. Until such time,however,the Developer shall be solely responsible for road maintenance of roads which have not been transferred to Weld County. 2.3 Standard of Care. In the performance of their duties,the Officers and members of the Executive Board are required to exercise (a) if appointed by the Declarant, the care required of fiduciaries of the Owners, and (b) if elected by the Owners, ordinary and reasonable care. 3 2.4 Term of Office. A term of office shall be three (3) years. Any member shall be permitted to serve a maximum of two full terms of office in succession, upon the completion of which such person shall be disqualified from holding office as a member of the Executive Board for a period of three years. The limitation upon terms of office of Board members herein shall not apply to any member of the"First Board of Directors",who shall serve fewer than three years as a member of the Board of Directors during his or her first term in office,it being the intention of these Bylaws that a member of the "First Board of Directors" may serve two three-year terms, in addition to any shorter term served as a member of the "`First Board of Directors". 2.5 Election of Directors. Election of Directors shall be by simple majority vote of the members at the annual meeting. 2.6 Removal of Directors. The Owners,by a two-thirds vote of all persons present and entitled to vote, at any meeting of the Owners at which a quorum is present, may remove any Director of the Executive Board, other than a Director appointed by the Declarant,with or without cause. 2.7 Vacancies. Vacancies in the Executive Board, caused by any reason other than the removal of a Director by a vote of the Owners, may be filled at a special meeting of the Executive Board held for that purpose at any time after the occurrence of the vacancy, even though the Directors present at that meeting may constitute less than a quorum. These appointments shall be made by a majority of the remaining elected Directors constituting the Executive Board. Each person so elected or appointed shall be a Director for the remainder of the term of the Director so replaced. 2.8 Regular Meetings. The first meeting of the Board following the first annual meeting of the Owners shall be held within ten days thereafter and no notice shall be necessary. Thereafter, regular meetings of the Executive Board may be held at such time and place as shall be determined from time to time by a majority of the members of the Executive Board, but at least two meetings shall be held each year. Notice of regular meetings of the Executive Board shall be given to each member of the Board by mail or telegram at least three business days prior to the day of the meeting. Any member of the Executive Board may,at any time,waive notice of any meeting of the Executive Board in writing and such waiver shall be deemed equivalent to the giving of notice. Actual attendance by members of the Executive Board at any meeting of the Executive Board shall constitute a waiver of notice by him of the time and place thereof. 2.9 Special Meetings. Special meetings of the Executive Board may be called by the President or by a majority of the Directors on at least three business days notice to each Director. The notice shall be hand-delivered or mailed and shall state the time, place and purpose of the meeting. 4 2.4 Term of Office. A term of office shall be three (3) years. Any member shall be permitted to serve a maximum of two full terms of office in succession, upon the completion of which such person shall be disqualified from holding office as a member of the Executive Board for a period of three years. The limitation upon terms of office of Board members herein shall not apply to any member of the"First Board of Directors",who shall serve fewer than three years as a member of the Board of Directors during his or her first term in office, it being the intention of these Bylaws that a member of the "First Board of Directors" may serve two three-year terms, in addition to any shorter term served as a member of the "First Board of Directors". 2.5 Election of Directors. Election of Directors shall be by simple majority vote of the members at the annual meeting. 2.6 Removal of Directors. 'The Owners,by a two-thirds vote of all persons present and entitled to vote, at any meeting of the Owners at which a quorum is present, may remove any Director of the Executive Board, other than a Director appointed by the Declarant, with or without cause. 2.7 Vacancies. Vacancies in the Executive Board, caused by any reason other than the removal of a Director by a vote of the Owners, may be filled at a special meeting of the Executive Board held for that purpose at any time after the occurrence of the vacancy, even though the Directors present at that meeting may constitute less than a quorum. These appointments shall be made by a majority of the remaining elected Directors constituting the Executive Board. Each person so elected or appointed shall be a Director for the remainder of the term of the Director so replaced. 2.8 Regular Meetings. The first meeting of the Board following the first annual meeting of the Owners shall be held within ten days thereafter and no notice shall be necessary. Thereafter, regular meetings of the Executive Board may be held at such time and place as shall be determined from time to time by a majority of the members of the Executive Board, but at least two meetings shall be held each year. Notice of regular meetings of the Executive Board shall be given to each member of the Board by mail or telegram at least three business days prior to the day of the meeting. Any member of the Executive Board may, at any time,waive notice of any meeting of the Executive Board in writing and such waiver shall be deemed equivalent to the giving of notice. Actual attendance by members of the Executive Board at any meeting of the Executive Board shall constitute a waiver of notice by him of the time and place thereof. 2.9 Special Meetings. Special meetings of the Executive Board may be called by the President or by a majority of the Directors on at least three business days notice to each Director. The notice shall be hand-delivered or mailed and shall state the time, place and purpose of the meeting. 5 2.10 Location of Meetings. All meetings of the Executive Board shall be held at such time and place as shall be fixed by the Executive Board. 2.11 Waiver of Notice. Any Director may waive notice of any meeting in writing. Attendance by a Director at any meeting,of the Executive Board shall constitute a waiver of notice. If all the Directors are present at any meeting,no notice shall be required, and any business may be transacted at such meeting. 2.12 Quorum of Directors. At all meetings of the Executive Board, a majority of the Directors shall constitute a quorum for the transaction of business,and the votes of a majority of the Directors present at a meeting at which a quorum is present shall constitute a decision of the Executive Board. If at any meeting there shall be less than a quorum present, a majority of those present may adjourn the meeting. At any adjourned meeting at which a quorum is present, any business which might have been transacted at the meeting originally called may be transacted without further notice. 2.13 Compensation. No member of the Executive Board shall receive any compensation for acting as a Director. However, Directors may receive reimbursement for necessary expenses actually incurred in connection with the Director's duties. Directors acting as employees may be compensated for those duties. 2.14 Consent to Corporate Action. If all the Directors or all Directors of a committee established for such purposes, as the case may be, severally or collectively consent in writing to any action taken or to be taken by the Association,and the number of the Directors constitutes a quorum, that action shall be a valid corporate action as though it had been authorized at a meeting of the Executive Board or the committee, as the case may be. The Secretary shall file these consents with the minutes of the meetings of the Executive Board. 2.15 Telephone Communication in Lieu of Attendance. A Director may attend a meeting of the Executive Board by using an electronic or telephonic communication method whereby the Director may be heard by the other members and may hear the deliberations of the other members on any matter properly brought before the Executive Board. The Director's vote shall be counted and the presence noted as if that Director were present in person on that particular matter. 2.16 Nonwaiver. All the rights, duties and privileges of the Executive Board shall be deemed to be continuing and shall not be exhausted by a single act or series of acts. To the same extent, the failure to use or employ any remedy or right hereunder or hereafter granted shall not preclude its exercise in the future nor shall any custom bind the Executive Board. 6 ARTICLE III OWNERS 3.1 Annual Meeting. Annual meetings of Owners shall be held as provided in the minutes of the first annual meeting of the Association or,if not provided therein,in the month which the Articles of Incorporation for the Association were recorded, or at such other date as set forth in the notice. At these meetings, the Directors shall be elected by ballot of the Owners in accordance with the provisions of Article II of the Bylaws. The Owners may transact other business as may properly come before them at these meetings. 3.2 Special Meetings. Special meetings of the Association may be called by the President, whenever he deems such a meeting advisable. A special meeting shall be called by the Secretary when so ordered by the majority of the members of the Executive Board or upon written request of Owners comprising no less than 20% of the votes in the Association. A request by the Owners shall state the purpose or purposes of such meeting and the matter proposed to be acted upon at the special meeting. The Secretary shall give notice stating the purpose or purposes ofthe meeting to all members entitled to vote at such meeting. No special meeting need be called upon the request of Owners entitled to cast less than 50%of the votes of the Association to consider any matter which is substantially the same matter voted upon at any meeting of the members held during the preceding twelve months. 3.3 Place of Meetings. Meetings of the Owners shall be held at the principal office of the Association or may be adjourned to a suitable place convenient to the Owners,as may be designated by the Executive Board or the President. 3.4 Notice of Meetings. The Secretary or other Officer specified in the Bylaws shall cause notice to be hand delivered or sent prepaid by United States mail to the mailing address of each Residential Unit or to the mailing address designated in writing by the Owner,not less than ten(10) nor more than fifty(50)days in advance of a meeting. The notice of the meeting must state the time and place of the meeting and the items on the agenda, including the general nature of any proposed amendment to the Declaration or Bylaws,any budget changes and any proposal to remove an Officer or member of the Executive Committee. No action shall be adopted at a meeting except as stated in the notice. 3.5 Waiver of Notice. Any Owner may, at any time,waive notice of any meeting of the Owners in writing, and the waiver shall be deemed equivalent to the receipt of notice. 3.6 Adjournment of Meeting. At any meeting of Owners a Majority ofthe Owners who are present at that meeting, either in person or by proxy, may adjourn the meeting to another time. 3.7 Order of Business. The order of business at all meetings of the Owners shall be as follows: 7 a. Roll call (or check-in procedure); b. Proof of notice of meeting; c. Reading of minutes of preceding meeting; d. Reports - Officers' reports; - Committee reports; e. Election of Directors of the Executive Board (when required); f. Ratification of budget (if required and noticed); g. Unfinished business; and h. New business. 3.8 Voting. a. The Owner(s)of each Residential Unit shall have one vote per Parcel owned except that the Declarant shall have two votes per Parcel owned until 75%of the Parcels are sold. b. If only one of several Owners of a Residential Unit is present at a meeting of the Association, the Owner present is entitled to cast the vote allocated to the Residential Unit. If more than one of the Owners are present,the vote allocated to the Residential Unit may be cast only in accordance with the agreement of a majority in interest of the Owners. There is a majority agreement if any one of the Owners casts the vote allocated to the Residential Unit without protest being made promptly to the person presiding over the meeting by another Owner of the Residential Unit. c. A vote allocated to a Residential Unit may be cast under a proxy duly executed by an Owner. If a Residential Unit is owned by more than one person,each Owner of the Residential Unit may vote or register protest to the casting of votes by the other Owners of the Residential Unit through a duly executed proxy. An Owner may revoke a proxy given under this section only by actual notice of revocation to the person presiding over a meeting of the Association. A proxy is void if it is not dated or purports to be revocable without notice. A proxy terminates one year after its date, unless it specifies a shorter term. 8 d. The vote of a corporation or business trust may be cast by any Officer of that corporation or business trust in the absence of express notice of the designation of a specific person by the Executive Board or Bylaws of the owning corporation or business trust. The vote of a partnership may be cast by any general partner of the owning partnership in the absence of express notice of the designation of a specific person by the owning partnership. The moderator of the meeting may require reasonable evidence that a person voting on behalf of a corporation, partnership or business trust owner is qualified to vote. e. Cumulative voting shall not be permitted. f. The election of Directors shall be by ballot. Unless demanded by at least 25% of the members present in person or by proxy at such meeting and entitled to vote there at,or determined by the President to be advisable, the vote on any other question need not be by ballot. g. If at any meeting of the Owners a vote by ballot shall be taken on any question,the President shall appoint an inspector of election to act with respect to such vote. Each inspector so appointed shall first subscribe to an oath to faithfully execute the duties of an inspector at such meeting with strict impartiality and according to the best of his ability. Such inspectors shall decide upon the qualifications of voters and shall report the number of members represented at the meeting and entitled to vote on such question, shall conduct and accept the votes, and when the voting is completed, shall ascertain and report the number of votes respectively for and against the question. Reports of the inspector shall be in writing, signed and delivered by him to the Secretary of the meeting. The inspector need not be a member of the Association and any Officer of the Association may be an inspector on any question other than a vote for or against his election to any position with the Association or any other question in which he may be directly interested. 3.9 Quorum. At each meeting ofthe Owners,one-third ofthe Owners,present in person or represented by proxy shall constitute a quorum at that meeting. hi the absence of a quorum, the Owners present in person or represented by proxy and entitled to vote,by majority vote,may adjourn the meeting from time to time,until a quorum shall be present or represented. At any such adjourned meeting at which a quorum may be present, any business may be transacted which might have been transacted at the meeting originally called. 3.10 Majority Vote. The vote of a majority of the Owners present in person or by proxy at a meeting at which a quorum shall be present shall be binding upon all Owners for all purposes except where a higher percentage vote is required in the Declaration, these Bylaws or by law. 9 ARTICLE IV Officers 4.1 Designation. The principal Officers of the Association shall be the President, the Vice President,the Secretary and the Treasurer,all of whom shall be elected by the Executive Board. The Executive Board may appoint an Assistant Treasurer, an Assistant Secretary and other Officers as it finds necessary. The President and Vice President,but no other Officers,need to be Directors. Any two offices maybe held by the same person, except the combination of offices of President and Vice President and President and Secretary. Nothing herein shall prohibit a Director from being an Officer. 4.2 Election of Officers. The Officers of the Association shall be elected annually by the Executive Board at the organizational meeting of each new Executive Board. They shall hold office at the pleasure of the Executive Board. 4.3 Removal of Officers. Upon the affirmative vote of a two-thirds majority of the Directors,any Officer maybe removed,either with or without cause. A successor may be elected at any regular meeting of the Executive Board or at any special meeting of the Executive Board called for that purpose. 4.4 President. The President shall be the chief executive Officer of the Association. The President shall preside at all meetings of the Owners and of the Executive Board. The President shall have all of the general powers and duties which are incident to the office of President of a nonstock corporation organized under the laws of the State of Colorado,including,but not limited to the power to appoint committees from among the Owners from time to time as the President may decide is appropriate to assist in the conduct of the affairs of the Association. The President may fulfill the role of Treasurer in the absence of the Treasurer. The President may cause to be prepared and may execute amendments, attested by the Secretary, to the Declaration and these Bylaws on behalf of the Association, following authorization or approval of the particular amendment as applicable. 4.5 Vice President. The Vice President shall take the place of the President and perform the President's duties whenever the President is absent and unable to act. If neither the President nor the Vice President is able to act,the Executive Board shall appoint some other Director to act in the place of the President on an interim basis. The Vice President shall also perform other duties imposed by the Executive Board or by the President. 4.6 Secretary. The Secretary shall keep the minutes of all meetings of the Owners and the Executive Board. The Secretary shall have charge of the Association's books and papers as the Executive Board may direct and shall perform all the duties incident to the office of Secretary of a nonstock corporation organized under the laws of the State of Colorado. The Secretary may cause to be prepared and may attest to the execution by the President of amendments to the Declaration and I0 the Bylaws on behalf of the Association, following authorization or approval of the particular amendment as applicable. 4.7 Treasurer. The Treasurer shall be responsible for Association funds and securities, for keeping full and accurate financial records and books of account showing all receipts and disbursements and for the preparation of all required financial data. This Officer shall be responsible for the deposit of all monies and other valuable effects in depositories designated by the Executive Board and shall perform all the duties incident to the office of Treasurer of a nonstock corporation organized under the laws of the State of Colorado. The Treasurer may endorse on behalf of the Association, for collection only, checks., notes and other obligations and shall deposit the same and all monies in the name of and to the credit of the Association in banks designated by the Executive Board. Except for reserve funds described below,the Treasurer may have custody of and shall have the power to endorse for transfer,on behalf of the Association,stock,securities or other investment instruments owned or controlled by the Association or as fiduciary for others. Reserve funds of the Association shall be deposited in segregated accounts or in prudent investments, as the Executive Board decides. Funds may be withdrawn from these reserves for the purposes for which they were deposited, by check or order, authorized by the Treasurer, and executed by two Directors, one of whom may be the Treasurer if the Treasurer is also a Director. 4.8 Agreements, Contracts, Deeds, Checks, Etc. Except as provided in sections 4.4, 4.6, 4.7 and 4.10 of these Bylaws, all agreements, contracts, deeds, leases, checks and other instruments of the Association shall be executed by any Officer of the Association or by any other person or persons designated by the Executive Board. 4.9 Compensation. The President and Vice President shall not receive any compensation for their services except reimbursement for necessary expenses actually incurred in connection with Association duties. The Secretary and Treasurer may be compensated for their services if the Executive Board determines that such compensation is appropriate. Compensation, if any, shall be in an amount proposed by the Executive Board and approved by the majority of Owners present or represented by proxy at a meeting. 4.10 Statements of Unpaid Assessments. The Treasurer,Assistant Treasurer,a manager employed by the Association or,in their absence,any Officer having access to the books and records of the Association may prepare,certify and execute statements of unpaid assessments,in accordance with Section 38-33.3-316 of the Act and Article 10,section 10.6 of the Declaration. The Association may charge a reasonable fee for preparing statements of unpaid assessments. The amount of this fee and the time of payment shall be established by resolution of the Executive Board. The Association may refuse to furnish statements of unpaid assessments until the fee is paid. Any unpaid fees may be assessed as a Common Expense against the Residential Unit for which the statement is furnished. 4.11 Fidelity Bonds. All Officers and members of the Association having the responsibility of handling funds of the Association are to be bonded pursuant to the provisions of Article 9, section 9.3 of the Declaration. 11 4.12 Other Duties and Powers. The Officers shall have such other duties, powers and responsibilities as shall, from time to time, be authorized by the Executive Board. ARTICLE V MISCELLANEOUS 5.1 Notices. All notices for the Association or the Executive Board shall be delivered to the office of the Association, or to such other address as the Executive Board may designate by written notice to all Owners and to all holders of Security Interests in the Residential Units who have notified the Association that they hold a Security Interest in a Residential Unit. Except as otherwise provided,all notices to any Owner shall be sent to the Owner's address as it appears in the records of the Association. All notices to holders of Security Interests in the Residential Units shall be sent by registered or certified mail to their respective addresses, as designated by them in writing to the Association. All notices shall be deemed to have been given when mailed,except notices of changes of address, which shall be deemed to have been given when received. 5.2 Fiscal Year. The Executive Board shall establish the fiscal year of the Association, or if no fiscal year is established by the Executive Board, the fiscal year shall be the calendar year. 5.3 Waiver. No restriction,condition,obligation or provision contained in these Bylaws shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur. 5.4 Office. The principal office of the Association shall be on the Property or at such other place as the Executive Board may from time to time designate. 5.5 Title to Parcels. Title to Parcels maybe taken in the name of an individual,or in the name of two or more persons as tenants in common or as joint tenants with right of survivorship,or in the name of a corporation or partnership,or in the name of a fiduciary. Any Officer of a corporate Owner shall be eligible to serve on the Board. 5.6 Additions,Alterations or Improvements by the Board. Whenever,in the judgment of the Executive Board, Common Elements, if any, shall require additions, alterations or improvements costing in excess of$1,000.00,said alterations and improvements shall not be made unless they have been approved by a majority of the members present and voting at a meeting at which a quorum is present. When said approval has been obtained,all members shall be assessed for the cost thereof above and beyond that allocated from the reserve fund as a common charge. 5.7 Right of Access. Each Owner shall grant a right of access to his Parcel to any person authorized by the Executive Board for the purpose of inspecting for and correcting any condition originating on his Parcel and threatening another Parcel or any common element, provided that requests for entry are made in advance and that any such entry is at a time reasonably convenient to r 12 the Owner. In case of an emergency, such right of entry shall be immediate,whether the Owner is present at the time or not. 5.8 Common Expenses Payable by the Declarant. Until the sale of the first Parcel,the Declarant shall be solely responsible for all Common Expenses. 5.9 Invalidity. The invalidity of any part of these Bylaws shall not impair or affect in any manner the enforceability or affect the balance of these Bylaws. 5.10 Amendments. These Bylaws,or any one of them,maybe altered or repealed,or new Bylaws may be made at any meeting of the Association duly constituted for such purpose, a quorum being present, by an affirmative vote of 75% of the votes entitled to be cast in person or by proxy, except that the first annual meeting may not be advanced and the first Board of Directors(including replacements in case of vacancies)may not be removed by reason of any such amendment or repeal. 5.11 Exculpability of Board and Officers. Neither the Board as a body nor any member thereof nor any Officer of the Association shall be personally liable to any Owner in any respect for any action or lack of action arising out of the execution of his office. Each Owner shall be bound by the good faith actions of the Board and Officers of the Association in the execution of the duties of said Directors and Officers. Unless acting in bad faith, no Director or Officer of the Association shall be liable to any Owner or other person for misfeasance or malfeasance in office. 5.12 Conflict. Anything to the contrary herein notwithstanding, if any provision of this instrument is in conflict with or contradiction of the requirements of any law,then the requirements of said law shall be deemed controlling. Dated this day of ATTEST: Certified to be the Bylaws adopted by consent of the Directors of Outlot B,Hill N Park Subdivision Property Owners Association, Inc., dated the day of , Secretary 13 ARTICLES OF INCORPORATION OF OUTLOT B,HILL N PARK SUBDIVISION PROPERTY OWNERS ASSOCIATION,INC. (A NONPROFIT CORPORATION) I,the undersigned,being a natural person of the age of nineteen(19)years or more, acting as the incorporator of a corporation under the Colorado Nonprofit Corporation Law, state as follows: ARTICLE I NAME The name of the Corporation is Outlot B, Hill N Park Subdivision Property Owners Association, Inc. ("Association"). ARTICLE II PURPOSE The purposes for which the corporation is formed are as follows: A. To operate the Common Interest Community known as Replat of Outlot B Hill N Park Subdivision located in Weld County, Colorado, in accordance with the requirements for an association of Owners charged with the administration of property under the Colorado Common Interest Ownership Act of the Statutes of the State of Colorado, as amended, including, without limiting the generality of the foregoing statement,the performance of the following acts and services for a not-for-profit basis. 1. To acquire, construct,manage, supervise, care for, operate,maintain,renew and protect all buildings, structures,grounds,roadways and other facilities,installations and appur'enances thereto relating to the property ofthe Association;to provide maintenance for the Cmmon Elements,if any,within the Association;to maintain lands or trees to enforce any and all covenants,restrictions and agreements applicable to the Association;and,insofar as permitted by law, to do any other thing that, in the opinion of the Executive Board, will promote the common benefit and enjoyment of the residents of the Association. 2. To prepare estimates and budgets ofthe costs and expenses or rendering these services and the performance, or contracting or entering into agreements for this performance, as provided for in or contemplated by this subparagraph 2; to apportion these estimated costs and expenses among the Owners; and to collect these costs and expenses from the Owners obligated to assume or bear the same; and to borrow money for the Association's purposes,pledging as security the income due from Owners and from others, the property of the corporation and the Common Elements, if any, of the Association. 3. To enforce, on behalf of the Owners, rules made or promulgated by the Executive Board with respect to the safe occupancy, reasonable use and enjoyment of the buildings, structures, grounds and facilities of the Association, and to levy fines to enforce compliance with these rules. 4. To perform or cause to be performed all other additional services and acts as are usually performed by managers or managing agents of real estate developments, including,without limitation,keeping or causing to be kept, appropriate books and records, preparing and filing necessary reports and returns, and making or causing to be made audits of books and accounts. B. To retain counsel,auditors,accountants,appraisers and other persons or services that may be necessary for or incidental to any of the activities described in this document. C. To do and perform or cause to be performed all other necessary acts and services suitable or incidental to any of the foregoing purposes and objects to the fullest extent permitted by law, and to acquire, sell, mortgage, lease or encumber any real or personal property for these purposes. D. To promote the health, safety, welfare and common benefit of the residents of the Common Interest Community. E. To do any and all permitted acts and to have and to exercise any and all powers,rights and privileges which are granted to a Common Interest Community Association under the Colorado Common Interest Ownership Act,the Declaration,the Bylaws and the laws applicable to a nonprofit corporation of the State of Colorado. The foregoing statements of purpose shall be construed as statements of both purpose and powers. The purposes and powers stated in each clause shall not be limited or restricted by reference to or inference from the terms or provisions of any other clause, but shall be broadly construed as independent purposes and powers. The Association shall not, except to an insubstantial degree, engage in any activities or exercise any pow ors that are not in furtherance of the primary purposes of the Association. ARTICLE III DURATION The duration of the Association shall be perpetual. 2 ARTICLE IV QUALIFICATION OF MEMBERS AND CLASSES The authorized number and qualifications of members of the Association, the different classes of membership, if any,voting and other rights and privileges of members,members'liability for dues and assessments and the method of collection of dues and assessments shall be set forth in the Bylaws and the Declaration. The corporation has authorized a total of eighteen(18)units in the Association, exclusive of annexations. ARTICLE V CORPORATE OFFICE The initial principal office of the corporation shall be 2785 83`d Avenue, Greeley,Colorado 80634. ARTICLE VI AGENT FOR SERVICE The initial registered agent of this corporation shall be Elmer Lundvall, whose address is 2785 83`d Avenue, Greeley, Colorado 80634,whose written consent to appointment is provided in the attached accompanying document. ARTICLE VII EXECUTIVE BOARD The initial Executive Board shal.l consist of not less than one (1) nor more than three (3) persons designated by the Declarant,none of whom need be Owners except as provided in Article XI of this document. So long as the number of Owners is less than three (3), there shall be no more directors of the Association than there are Owners. The name and address of the initial Director is: Elmer Lundvall 2785 83`d Avenue Greeley, CO 80634 ARTICLE VIII INCORPORATOR The name and address of the incorporator is: Elmer Lundvall 2785 83`d Avenue Greeley, CO 80634 3 ARTICLE IX AMENDMENT Amendment of these Articles shall require the assent of at least sixty-seven percent(67%)of the Executive Board, and if the amendment amends any provisions of the Declaration,the assent of two-thirds (2/3) of the Owners of all Residential Units in the project as shown in the Declaration. ARTICLE X MEMBERSHIP CLASSES, RIGHTS AND QUALIFICATIONS The classes,rights and qualifications and the manner of election or appointment of members are as follows: A. Any person who holds title to a Residential Unit in the Association shall be a member of the corporation. There shall be one membership for each Residential Unit owned within the Association. This membership shall be automatically transferred upon the conveyance of that Residential Unit. Voting shall be one vote per Residential Unit, and the vote to which each membership is entitled is the vote assigned to its Residential Unit in the Declaration of the Association. B. Notwithstanding the foregoing,until the Declarant sells seventy-five percent(75%)of the Parcels, the Declarant shall be entitled to two (2) votes per Residential Unit owned. C. If a Residential Unit is owned by more than one(1)person,those persons shall agree among themselves how a vote for that Residential Unit's membership is to be cast. Individual co-owners may not cast fractional votes. A vote by a co-owner for the entire Residential Unit's membership interest shall be deemed to be pursuant to a valid proxy,unless another co-owner of the same Residential Unit objects at the time the vote is cast,in which case such membership's vote shall not be counted. D. The members shall be one class,Owners who own Residential Units as defined in the Declaration. These Owners shall elect all members of the Executive Board, following the period of Declarant control. E. Notwithstanding the foregoing,the Declarant of the Association shall have additional rights and qualifications as may be provided under the Colorado Common Interest Ownership Act and the Declaration, including the right to appoint members of the Executive Board as follows: 1. The Declaration provides that during the period of Declarant control, the Declarant,or persons designated by him or her,subject to certain limitations contained in the Declaration, may appoint and remove the officers and members of the Executive Board. 4 2. The period of Declarant control terminates no later than the earlier of:(i) sixty (60)days after conveyance of seventy-five percent(75%)of the initially designated eighteen (18)Residential Units to Owners other than a Declarant;(ii) two(2)years after all Declarants have ceased to offer Residential Units for sale in the ordinary course of business; (iii)two(2) years after any right to add new Residential Units was last exercised; or (iv) two (2) years after the recordation of the Declaration of Covenants. F. A Declarant may voluntarily surrender the right to appoint and remove officers and Directors of the Executive Board before termination of the period of Declarant control, but in that event, the Declarant may require, for the duration of the period of Declarant control, that specified actions of the Association or Executive Board,as described in a recorded instrument executed by the Declarant, be approved by the Declarant before they become effective. G. Not later than sixty(60) days after conveyance of twenty-five percent (25%) of the Residential Units to Owners other than a Declarant, at least one member, and not less than twenty- five percent(25%)of the members of the Executive Board, shall be elected by Owners other than the Declarant. Not later than sixty(60)days after conveyance of fifty percent(50%)of the Residential Units to Owners other than a Declarant,not less than thirty-three and one-third percent(33 1/3%)of the members of the Executive Board must be elected by Owners other than the Declarant. H. Except as otherwise provided above, not later than the termination of any period of Declarant control the Owners shall elect an Executive Board of at least three(3)members, at least a majority of whom shall be Owners. The Executive Board shall elect the officers. The Executive Board members and officers shall take office upon election. I. Notwithstanding any provision of the Declaration or Bylaws of the contrary, following notice under C.R.S. §38-33.3-308 of the Colorado Common Interest Ownership Act,the Owners, by a vote of sixty-seven percent (67%) of all persons present and entitled to vote at any meeting of the Owners at which a quorum is present, may remove any member of the Executive Board other than a member appointed by the Declarant, with or without cause. J. Holders of Security Interests in the Residential Units may have or be granted rights of approval or disapproval for certain actions of the Association or its members. ARTICLE XI NOT FOR PROFIT The Association shall be a nonprofit corporation,without shares of stock. No part of the net earnings of the corporation shall inure to the benefit of or be distributable to its members, trustees, officers or other private persons except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article II hereof. No substantial part of the activities of the corporation shall be the carrying on of propaganda or otherwise attempting to influence legislation, 5 and the corporation shall not participate in, or intervene in(including the publishing or distribution of statements)any political campaign on behalf of any candidate for public office. Notwithstanding any other provision of these Articles, 1:he corporation shall not carry on any other activities not permitted to be carried on (i) by a corporation exempt from Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code or corresponding section of any future tax code, or (ii)by a corporation, contribution to which are deductible under Section 170(c)(2) of the Internal Revenue Code or corresponding section of any future Federal Tax Code. ARTICLE XII DISSOLUTION Upon dissolution of the corporation, assets shall be distributed for one or more express purposes within the meaning of Section 105(c)(3) of the Internal Revenue Code, or corresponding section of any future Federal Tax Code or shall be distributed to the Federal Government or to a state or local government for a public purpose. Any such assets not so disposed of shall be disposed of by a Court of general jurisdiction of the county in which the principal office of the corporation is then located exclusively for such purposes or such organization or organizations as said Court shall determine which are organized and operated exclusively for such purposes. Executed this day of , , by the undersigned incorporator. Elmer Lundvall STATE OF COLORADO ) ) SS COUNTY OF WELD ) I, , a Notary Public,hereby certify that on the day of ,Elmer Lundvall personally appeared before the undersigned and who, being first duly sworn,declared that he signed the foregoing Articles of Incorporation as Incorporator and that the statements therein contained are true to the best of his knowledge, information and belief. IN WITNESS WHEREOF, I have hereunto set my hand and seal this day of Notary Public My Commission Expires: r-. 6 CONSENT The undersigned,Elmer Lundvail,hereby consents to his appointment as the initial registered agent as provided in Article VI above. Elmer Lundvall STATE OF COLORADO ) ) ss COUNTY OF WELD) I, , a Notary Public,hereby certify that on the day of , Elmer Lundvall personally appeared before the undersigned and who, being first duly sworn, declared that he signed the foregoing Consent. IN WITNESS WHEREOF, I have hereunto set my hand and seal this day of Notary Public r My Commission Expires: 7 Hello