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To: 15059821199 From: 15757581912 Jan 22 15 05:34p La Buena Vida Condos

Date: 01/22/15 Time: 4:33 PM Page: 01 575-758-1912 p.1

3Y-LAriS --OF

LA BUENA VIDA cormO:lINIU11S maT Q'.'NERS ASSOC:A"'IO'l

ARTICLE 1

Plan of Unit Ownership

Section 1.1. Applicabili tv. T:,ese Sy-La',ls provide for governance o~ the Condominium~ pursuant to the reauirements of Section 47-7C-6 of t~e Condominium Act. The prop';rty, located in Taos County, Ne'll Y1exico, and more particularly described in the Declaration, has ~een submitted to the provisions of the Condominium Act by reco:::,dation simultaneously hereN::'th of the Declaration among the land records of Taos County in Deed Seok 00-98 at Page 707-715.

Section 1.2. Compliance. Pursuant to the provisions of Section 47-70-2 of the Condominium Act, every Unit o',mer and all those entitled to OCCUpy a Unit shall comply ".rith these By-la',,'5.

Section 1.3. Office. The Office of the Condominium, t~e Unit Owners Associatio~, and the Board of Directors shall be located at the ?roperty or at suc~ other place as ~ay be desisnated from time-to-time by the Board of Directors. ,

! ARTICLE I II

! Uni~ Owners Association

i Section 2.1. Conposition. i The Unit O;mers Association

shall ('.onsist of a 're'li i,lex).co corooration not-for-orofit. "'he Unit Owners Association shall have the resDonsibillty of ad~inistering the Condoninium, establishin~ the means and methods o~ collecting assessments and charges, arranging for the m1:maR;eme"1t of the Condominium and performingiall of the other act5 that may be required or permitted to be performed by tr.e Unit Owners .'\s500i2.tion by the Condominiu~ Act and t~e ~eelaration. ~xcept as to those matters 'IThieh the Condominium Aet specifically requires to be performed by the vote Clf the Unit i Owners Association, the fore,c;oin; responsibilities shall be performed by the Beard of Directors or Man~~ing ABent as more particularly set forth in Article III of these By-laws. !

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! * Caoitalized ter~s used herein without definition shall have the ~eanings specified for such terms in the Declaration creating this Condominium or, if not defined :herein, the meanin~s specified for such terms in Section 47-7A-3 of the New ~exico Condomi:1ium Act. References to "Condominium Act" or "the Act" mean the Ne'll r1exioo Condominium Act·, La!;s 1982, Chapter 27, :,ei'18 Section 47-7A-:' et seq. Nr'ISA, 1978 Conp.

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Se etion 2.2. ~~e:nbership. Ownership of a Unit is required in order to qualify for membership in the Associati.on. Any person on becoming an owner of a Unit shall automatically becone a member of the Association and be subject to these By-laws.

Section 2.3. .Il,nnual tJ!eetinPjs. The annual meetings of ;;he Unit Owners Assooiation shall be held during ~ay or June of each year. At such annual meetings the Board of Directors shall be elected by ballot of the Unit Owners in accordance with the requirements of Section 3.4 of these By-lal.,rs. In addition, the owners shall vote on the proposed budget for the upcoming fisca: year.

Section 2.4. Plaoeof Meeting. Meetings of the Unit Owners Association shall be held at the principal office of the Unit Owners Association or at such other suitable place convenient to the Unit OWners as may be designated by the Board of Directors.

Section 2.5. Special "'leetings. The Presider. t shall call a special meeting of the Unit Owners Association if so directe~ by resolution of the Board of Directors or upon a petition si~ned and presented to the Secretary by Unit Owners of not less than tl'lenty percent (20%) of the aggregate Percentage Interests. ~he notice of any special meeting shall state the time, place and purpose thereof. '10 business shall be transacted at a special meetirtg excpc ~ as stated in the notice.

Section 2.6. "Tot:ce of '.1eetinp;s. m~e '1ana~er shall m8 .. ~1 to each Unit Owner a notice 01' each meetinG of the Unit Owr.ers at lea~-:; t"/enty (20) but D:Jt rr.ore than thirty (30) days prior to suc'1 meeting and the items 0 f the agenda. including the general nature Of ar:.:,' proposed amendment to the declaration Or By-la~/s, any hudget c'1a:1 :3 and any proposal to remove a director or or"ficer •.

Section 2.7. Ad.journment of r·leetings. If at any meetine; 0': the Unit Ovmers Associatior:. a quorun is not ;oresent, Unit Owners 0:-a majority of the Percenta1e Interests who are present at such meetine; in person or by prexy may adjourn the meeting to a time (not Ie:;: than forty-ei3ht (48) hours after the time the ori~inal meeting was ca:led) agreeable to the majority of the Percentage Interests Drese~.

Section 2.3. Order of Business. ~he order of husiness of al: mee:ings of the Unlt Owners Association shall be as follows:

(a) (h) (c) (d) (e) ef) ( g)

(h)

(i) (~ )

Roll oall; Proof of notice of meeting to owners; Reading of minutes of preceeding ~eeting; Reports of officers; Report of 30ard of Directors; Reports of committees; Election or appointment of inspectors of election (when so required); Election of members of the Board of Directors (When so required); Unfinished bUSiness; New business.

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Section 2.9. Title to Uni'ts. Title to a Unit may be taken ~n the name of one or more persons, in any manner permitted by law. '!'he Unit Owners Association may acquire, hold and transfer full legal title to one or more Condominiur.1 Units in the Condominiur.1 in its own name.

Se etian :2.10. Votinp:. (a) Voting at all meetings of the Unit Owners Association shall be on a percenta~e basis and the percentages of the vote to ·..rhich each Unit Owner is entitled shall be the voting Interest assi~ed to his Unit in the Declaration. ~TIere the ownership of a Unit is in more than one perso~, the person who shall be entitled to cast the vote of such Unit shall be the person named in a certificate executed by all of the o'.'rners of such Unit and filed with the Secretary or, in the absence of such named person from the meeting, the person who shall be enti~led to cast tje vote of such Unit shall be the ~ersor. owning such Unit who is present. If more than One person OI-rning such Unit is present, then such vote shall be cast only in accordance ~ith the a~ree~ent of a majority of them pursuant to Section 47-7C-lO of the Condominium Act. Such certificate shall be valin until revoked by a subsequent certificate sim~larly executed.

(b) Subject to the requirements of Section 47-7C-10 of the Condominium Act, wherever the approval or disapproval of a Unit Owner is required by the Condominium Act, the Declarr::.tion or these By-laws, such approval or disapproval shall be made Qnl~1 by the person who would be entitled to cast the vote of such Unit at any meeting o~ the Unit Owners Association. Except where a greater number is required by the Condoninium Act, the Declaratioc< or these By-laws, the owners of more than fifty-one percent (51~) of the aggregate Percenta~e Interest in the Condominium voting ~n perso:'! or by proxy at one time at a duly convened meeting at Which a quorum is ;Jresent (":',Iajority of the Unit Owners") is re:1.uired to adop'C decisions at any meeting of the Unit Owners Association. Any specified percentage of the Unit Owners means thf'! Unit O~mers o'!;ni?1",; such Pe~centa3e Interests in the a~gregate.

(c) tro Unit Owners !'lay vote at any meeting of tr_e Unit OW:1ers ASSOCiation or be elected to or serve an the 30ar~ of Directors if the Uni~ Owners Association has nerfected a lien ag&in5-. his Unit and t'"le a:nount necessary to release suc'1 lien ~1as not bee:"'! paid at the ti::le of such :-:tee tine; or electior..

(d) 10 votes allocated to a unit owned by the Association ma~l Je cast,

Section 2.11. Proxies. A vote :nay be cast il". perClOn or b~' proxy. Such proxy '!lay be granted by any Uni':; :Jwner in favor of only another :Jni:; Owner or a -,lorta;ag;ee. Proxies shall h<> duly executed in writin~, shall be valid only for t~e particular ~eetin~ desi;3nated therein and must be filed \>lith the ,Secretary before the appointed time of the meeticg. Such proxy shall be deemed re-.,oJ{ed only upon actual receipt by the person presidi~g over the meetin~ of notice of revocation from any of the pe:'sons ovming such 'Init. No proxy shall in any event be valid for a period in excess of one

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To: 15059821199 From: 15757581912 Date: 01/22/15 Time: 4:33 PM Page: 04 Jan 22 15 05:35p La Buena Vida Condos 575-758-1912 pA

hundred and eighty (180) days after the execution thereof.

Section 2.12. QUorum. Except as otherwise provided in these By-laws, the presence in person or by proxy of Unit Owners of twenty percent taOI} or more of the aggregate ?ercenta~e In teres ts shall canst! tute a quorum at all meetln.gs.

Section 2.13. Conduct of T~eetlnBis. The Preside'1t s"lall preside over all meetings of the Unit Owners Association and t~e secretary sha2.1 keep the minutes of the meeting and record in a minute book all resolutions adopted at the '!1eeting, as well as a record of all transactions occurring thereat. "'he President may appoint a person to serve as parliamentarian at any meeting of the Unit Owners Association. The then current edition of Rohert's Rules of Order shall govern the conduct of all meetings of' the Unit Owners Association when not in conflict with the geclaration, these By-laws or the Condominium Act. All votes shall be tallied by tellers apPOinted by the President.

ARTICLE III

Board of Directors

Section 3.1. Number and Qualification. The affairs of the Unit Owners Associat!on shall be governed by a Board of Directors. The Board of Directors shall be composed of five (5) persons, all of Nhom shall be Unit Owners or spouses of Unit Owners. ~lortga"ees (or designees of Mortga~ees). .

Section 3.2. Powers and Duties. The Board of Directors shall have all of the pO~le:::,s and duties necessary for the administration of the affairs of the Unit OWners Association and ma,:, do all such acts and things as are not by the Condol'1in:'um A.ct, the Declaration or bY these By-laws required to be exercised and dane by the Unit Owners. The Board of Directors shall have the pOll'fer from time to time to adopt any Rules and Reil;ulations dee~_ed neceSS'l.r:for the benefit and enjoyment of the Condominium; ,e!'(')vide<'l, hONev""r, that such Rules and Re~ulations shall not be in conflict wlth the CondoToiniurn Act, the Declaration or these 3y-Iaws. ~e ~c~rd Of Directors shall deler,ate to one of its members. or to 3 Person e:mpioyed .for such purp-ose, the authority to act on behalf ot the 30ard ':Jf Directors em sueD matters relatind to the duties of the ::Ianaging Agent (as defined in Section 3.3. of these 13y-T.,aHs), if

ny, wnlcn may arise between meetin~s of the ~oard of Directors as he Board of Directors deeMS ap~ropriate. In addition to the duties

-mposed by these B:r-lm:s or by anv resolution of t1-Je Pnit Q',mers ssociation that may hereafter be adooted, the '9oard of n1rectors hall on behalf of the Unit Owners Association:

(a) Prepare an annual budget, in which there shall be stabli::;hed the assessments of each UnIt Owner for the CO:"lnon xpenSe pursuant to Article V, herein.

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(b), Make assessments acsainst Unit OwnsI's to defray the costs and expenses of the Condominium, establish the ~eans and methods of aollecting such assessments fro11\ the Unit Olmers; and

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establish the period of the installment paynent of'the annual assessment for Co~on Expenses. Unless otherwise deter~ined by the Board of Directors, the annual assessment against each Unit Owner for his proportionate share of the Common Expenses shall be payable in equal monthly installments, each such installment to be due and payable in advance on the first day of each month fDr such month.

(c) Provide for the Dperation, care, upkeep and maintenance of all of the Property and services of the Condominium.

(d) Designate, hire and dis'Cliss the personnel necessary for the maintenance, oper-'l.tion, repair and replacement' Df the Common Elements and prolJide services for the Property and, where appropriate, provide for the compensation of such personnel and for the purchase of equipment, supplies and material to be used by such personnel in the performance o~ their duties. which supplies and equip~ent shall be deemed part of the Property.

(e) Collect the assessments against the Unit Owners, deposit the prDceeds thereof in bank depositDries designated by the Board of Directors and use the proceeds to carry out the administration of the Property,

(f) Make and amend the Rules and ~egulations.

(g) Open bank accounts on behalf of the Unit OWners Association and designate the Signatories thereon.

(h) Make, or contract ~or the making of, repairs, additions and improvements to or alterations of the Property, and repairs to and restoration of the Property, in accordance with the Condominium Act, the Declaration and these By-laws, after dama~e or destruction by fir? or other casualty, or as a result of condemnation or eminent do~ain proceedings,

(i) Enforce by logal means the provisions of tr-,e Dec:Caratio", these 9y-la':rs and the Ru:'es and Res;ulatians a'1d act on behalf of the Unit Dwners with respect to all matters ariSing out of any eminent donain proceeding.

(j) Obtain and carry inol1rance against casualties and liabilities) as provided in Article VI of these Jy-laws, pay the premiums there~or and adjust and settle any claims thereunder.

(k) ?ay the cost Df all authorized services rendered tD the Unit O~1ner5 Association and not billed to Jnit O'l'Iners of indiVidual ~nits or otherwise provided fer in Sections 5.1 and 5.2 of these By-laws.

(1) Keep books with detailed accounts in chronological order of the receipts and expenditures affecting tl1e Prnuerty, and the administration of the CondDminium, specifying the expo>.-,ses of maintenance and repair of the Corr~'1lon Elements and any other expenses incurred. Such books and vouchers accreditin~ the

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entries thereupon shall be available for examination by the Unit Owners, their duly authorized agents or attorneys, durin~ gene~al business hours on working dSS's at the time and in the me.nner (let and announced by the Board of Directors for the general knowledge of the Unit Owners. All books and records shall be kent in ae corclance with good and accepted accounting practices, and ~~e sarne shall be audited at least once each year by an independent accountant retained by the Board of Directors -Nho shall not be a resident of the COndominium or a Unit Owner. ~~e cost of such aunit shall be a Common Expense.

em) Notify a ~1ortgagee of any default hereu!1der bv the Unit Owner of' the Unit subject to such ['Iortga~e; in the event such default continues for a period exceedin~ twenty (20) divs.

(n) Borrow money on behalf' of the Condominium whe!'] required in co!']nection with anyone instance relating to t.hp. operation, care, upkeep and maintenance of the Com~on Elements, provided, however, that the consent of at least half (1/2) in number and in Percentage Interest of all Unit Owners, obta~ned at a meeting duly called and held for such purpose in accordance with the provisions of these By-laws. shall be required to bor!'ow any sum in excess of Five '!'housand Dollars ($5,000,00). If any sum borrowed by the Board of Directors on behalf of the Condominium pursuant to the a~thority contained in this paragraph (n) is not repaid by the Unit O'flners ASSOciation. a Unit Owner who oavs to the creditor such proportion thereof as his Percentage Interest bears to the total Percentage Interests in the Condominium shall be entit:ed to ottain 1'ro;:] t:'le creditor a release of any 5udge:"lpnt or other lien which such creditor shall have filed or shall have the right to file a/3ainst such Unit OW::1er's Condo:'linium 11nit.

(0) Acquire, hold and dispose of Co~do~iniun Units and :no:'t;;a;,;e tte same in such expenditures and hypothecations B!'O

included in the budget adopted by the Unit Dwners AS:30ciation,

(p) In its sale discretion, desi3nate from ti~e to tl~p certain Comrr:.on E:le~.ents as tlReser"led GO!"1!non :::le:nE'nts" an0 irnno;;;~ such restrictions and conditions on the USB thereof as the ~o of Director's dee:n appropri2te.

(q) ?,ll:'nis'1 the state:r.er:.t reql1ired by Section !i7-7"_o of the Condominium Act, within ten (lG) working days after the receipt of a ",ri tten req:.1est therefor from any f1nit OWnAr:'1 substanti2.11y ill the for:n set forth on J:;xhihit A to these By-laws and desifinated "Certificate for Resa::'e."

(1') Do such other things and acts no~ inconsistent with the Condominium Act, the Declaration or these 8y-laws which the Board of' Directors may be authorized to do by a r'esohltion of the ITnit Owners i\ssociati.on


Section 3.3. jllanaging Agent. The Board of Directors shall (may) employ for the Condominium a "~1anaging Agent" at a compensation established by the Board of Directors,

Ca) Requirements. The Managing Agent shall be a bona fide business en~erprise. reasonably qualified by experience. education, and other professional qualifications of tt::l prtncipals to manage the Condominium and to provide the services described berein.

(b) Duties. The Nanaging Arrent shall perfor::! such duties and services as the goaI'd of Directors shall authorize, including but not limited to the duties listed in paragraphs (a)., (c), (d), (e), (h), (i), (j). (k), (1). (m), (q), and (I') of Section 3.?. of these By-laws. The Board of Directors may delegate to the ~anagins Agent all of the pO\~ers granted to the Board of Directors by these By-laws other than the powers se t forth in paragraphs (b), (f), (c::) , (n), (0) and (p) of Section 3.2 of these By-laws. ':.':'he r·1anar;ing Agent shall perform the obligations, duties and services relating to managenent of the property, the rights of Mortgagees and the maintenance of reserve funds in compliance with the prOVisions of these By-laws.

Cc) Standards. The Board of Directors shall impose appropriate standards of perfor::lance UP0:1 the ~1anaging Ar;ent. Unless the ;,lanaging Agent is instructed otherwise by the Board of Directors:

(1 )

(2 )

(5 )

(6 )

the accrual (cBsh) method of accounting shall be emoloyed; t',vo (2) or more persons shall be responsible for handling cash to ~aintain adequate financial control procedures; cash accounts of the Unit Owners Association s~all not be co~mingled with any other accounts; no rerr.uneratioct shall be accePi;ed 1")y the 'lanag;ing Ap;ent from vendors. independe:lt contractors or others providing goods or services to the Unit :)wners Association ~Ihether in the far:;] of co:nmissions> finders fees. service fees or otherwise; anY discount" recel'/ed shall benefit the Unit; Owners Association; ~~y financial or other interest which the Mnna~ins k:;ent may have in any firm providing goods or services to the Unit Owners Association shall be disclosed promptly to the Board of Directors; and a monthly financial report shall 1")e prepared for the Unit Owners Association disclosing:

(t) all income and disbursement activity for the proceeding month;

(il) the status of all accounts in an "actual" VF!rsus "proj ected" (budr;et) format; and

(Iii) any actual or pending obligations wbich are in excess of budgeted amounts by an amount exceeding the operating reserves or

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seventy (70%) percent of a major budget category (as distinct frnm !3.

specific line item in an expanded chart of accounts).

(dl Llmitationll. The Unit Owners' Associat1nn and the Board of Director's shall nat fail to employ a. Managing Agent \dthout thf' COnsent of a MaJority of the Unit Owners and the consent of two-thirds (2/3) f.lortagees. The Board of Directors approves the hi.r4ng of a new Managing Agent. Any contract with the Managing Agent must provide that it may be terminated on no more than thirty (30) days wri~ten notice.

Section 3.4. Election and "'err:! of Office.

(a) Board of Directors members are elected to serw~ for a ter~ of three (l) years.

(b) Persons qualified ':;0 be me'1hers of the Board of Directors may be nominated for elec:ion only as follows;

(ll Any Unit Owner may subnit to ':;'1e Secretar'! at least tbir~y (30) days before tbe meeting at wtich the e~ectio~ is to be held a nO:1ina::ine; pe::itiO:1 si-;ned by Tlnit OWners o"'ning at least three (3) Uni~s, a statement ~hat the person nO:1inated is will~nc to serve on the 80ard of Directors and a bio~rachical sketch of t'1e nominee. The Secretary or ~ana~er shall mail or hand-deliver the suhPJitted ite~s to every U:1it OI'Jrler along '.'lit'1 the notice of such meet~ngs; or

(2) Ilominations may be sul>mitted from the floo:::' at the meetin; at 'litich the election is held for each vacancy Ort the Board of Dil:'ectors for '"hieh no more than one person has 'QeeYl Yloninated by petition.

SectiO:1 3.5. Removal or Res;"n8.t:ion 0'" "1e~bers of t;f,R

Soard of Directors. At any regular or special meet:'n" dul:, called, anyone or "1ore or the ::Iemhers of the Poard of Director:> rna:,' be rer:loved 'tilth or without cause by a '~aJority o:!" thQ Un!'": O~rners :?ne\ a successor ~ay then and there be elected to fill the v~canc~ thus creat·ed. AnY Director whose removal has been proposed bv the Unit Ownors shall be giveYl at least seven (7) days no~!ce of the' ti,e, place and purpose of the meetinn; and 51".0.11 he siven ,'\'1 onpol:'tunir.:; to be heQ.:::,d at the meetinG' A 'lember of the Soard of Directors '1lo.:·· resigr. at any ti!1l'= and shall he deer.1eC: to ha'ic resi"':1ed upon disposition of his Unit.

Section 3.6. Vacancies. Vacancies in '::!1e "loa~d of nlreGto~~ caused by any reason ot:'1er than the re!l\OVa: of a director' by a vat", of tte Unit Owners Association shall be filled by a vote of a ma~ority of the re!l\alning ~ember3 nt a special ~eetin~ of t~e 30ar~ of ['I11"'rrt.aT's held for such purpose promptly aft.er the OCC'_lrr1'lr,Ce 0'"

any such vacancy, even thoup;h the d:'rectonl pI'E!SC1nt at 311C"t ''1eet i n,,: may constitute less than a quorum. Each pe:,son so elected sha. 1.l be a ~e!l\bcr of the Board of Directors for the re~ainder of the tpr~ of the member bein,; r~placed and until a successo:- S'1all be eleeterl at;


the next annual meeting of the Unit Owners Association.

Section 3.7. RePjular ~feetings. Regular meetinc;s of the Board of Directors may he held at such time and place as shall be determined from time to time by a ma.l ori ty of the directors, but such meetin~s shall be held at least once eve~y three (3) months during each fitlcal year. Hotice of regular meetlng.s-of the Board of Director!! shall be given to each director, bv mail or teleGraph, at least flfteen (15) business days prior to the day named for such meeting. --

Section 3.8. Special r/[eetin,:;s. Special meetinr;s of the Board of Directors may be called by the President on two (2) business days notice to each director, given by mail or-teTegraph, \~hich notice shall state the time, place and purpose of the meetings. Special meetings of the Board of Directors shall be called by the President or Secretary in like manner and on like notice on the written request of at least two (2) directors.

Section 3.9. \-Ia1'1er of Noti·ce. Any director ':lay at any time, in writing, ~laiVe notice of any meeting of the "loard of Directors, and such waiver shall be deemed equilivent to the givinS of suer: notice. Attendance by a director at any "'leetin~ of the Board of Directors shall constitute a waiver of notice by him of the time, place and purpose of such meetin~. If all directors are present at any meetin~ of the ~oard of 9irectors. no notice shall be required and any business may b8 transacted at such meeting.

Section 3.10. Quorum of Board of Directors. At all meetings of the Board of Diroccors, a majority of the directors shall constitute a quorum for the transaction of husiness, and the votes of a majority of the directors present at a ~eeting at which a quorum is present shall constitute the decision of the 90ard or Directors. If at any rneetins of the Board of nirectors there shall be less than a quorum present, a majorit:l of those present may adj OUl"!1 the meetinq; from time-to-ti::le. Ale any such ac'journed :neetinr:; at which a quorum is present, any busin~s3 which miStlt have been transacted at the meet!.n'!; ori~i:"lally called may be transacted ~ithout further notice.

Section 3.11. Fidelity 30nds. As recuired by Section 6. b (a) of the By-laws, there shall be obtain~d fidelity bonds in an a~o:.mt not less than rr:'weJ.'1e Thousand Dollars (:!;12,ooo.nO) (in such for"'] and such greater amounts as may be required by tl-Je \!ortga:,;s8s> for all officers, directors and employees of the Unit O\·mers Association, including Without l~mitation the ~anagin~ A~ent, handlin" ur' responsible for COndo:ninium funds. The pre:!liums on such bonds shall constitute a Comrtlon ~xpense,

Section 3.12. Cot:lpensation. '~o director shall recl?1.vE' any compensation from the CondominIum for actin~ a~ such.

Section 3.13. Conduct of ~Ieetin"s. The Pr8sicl".nt shall preslde over all meetings of the Board of' Directors and the Secretary shall keep a minute book of the Board of Directors recording therein all resolutions adopted by the Soard of 1irectors and a record of all transactions and proceedin~s occurring at such meetlngs. The then current edition or

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Robert's Rules of Order shall ~Overn the conduct of the meetings of the Board of Directors when not in conflict with the "'leclarat:on, these By-laws or the Condominium Act.

Section "l.lll. Action Without f;leetin~. Any action by the Soard of Directors required or pe~;ltted to be taken at any ~eeting may be taken \~ithout a meeting if all of' the me!TI.ber~ of t'18 Board of Directors shall individua!ly or collectivel~ cO~Bent in wrltin~ to such action. Any such written consent 9h~11 be filed with the minutes of the proceedin~s of the Soard of Directors.

Section 3.15. Liabilit. of the Officers , Unit Olmer'S and Unit wners

(a) The officers and menbers of the Board of nirectors sha:'.~ not be liable to the Unit Owners Association for any ~istake of judge~ent, negli~ence or otherwise. except for ~heir own individual willful misconduct or bad faith. The Unit Owners Associatic'1 shall indennify and hold harmless each oc the officers and direc~cro from and a'iainst all contractual liability to others arisinr; out 0:contracts nade by the officers or the 90ard of Directors On behalf of the ~nit Owners Association unless anY such contract shall have \:leen made in had faith or contrary to tIle provisions of the Condor.liniuIfl Act, the Declaration or these "ly-la\'ls, Officers and 'llemce!:,r of the Board of n~rectors shall have no personal liability with respect to any contract made by them On hehalf of t~e Unit Owners Association, The liability of any l'nit Ql>fner arisin,; out of any contract made hy the officers or Board of Directors, Or out of the aforesaid inde~nlty in favor of the members of the ~aard of Directors or officers, or for da~a~es as a result of injuries arisin! in connection \~ith the CO"TIT!1on ~lements solely hy virtue of !:"lis ownership of a Percenta~e Interest therein or for liabilities incurred by the Unit O~rners Association, shall be limited to the total liability multiplied by his Percenta,;e Interest. Ever; as;ree::J.e:1t made 'JY the Officers, the Raard of 1)lrectors or the Mana~1n~ A~ent on behalf of the Unit Owners Assoc~ation shall, if Obtainable, provide that the officers. the memhers of the Bnard of Directors o~ the ~anagin~ A~ent. as the case may be, are actln~ only as a~ent5 for the Unit ~wners Association anrt shall have no oerson·al liati1l ty ther'eunde,:" (exc ert as Unit Owners), and that each Unit Owner's liability t~ereun~~r shall be li::ited to the total liability t"1ereunder ~ultiplied bv :Jis Ceronon 3xpense Liability. ' .

(b) The Unit Olmers AS30clat::'on shall no'; ~p' l.iable for any fallure of ~oJater sup~l:{ or other services tobe ob';ained by the 'Joi t Owners Association or paid for as a CO"!"'1on I\xpense. or for injury or da"'a",e to Person or' pronerty caused by the els"!1ents or by the lJnit Owner of any Conclo'ninilllTI TJnit, or an:! 8ther person, or resultin~ from electricity. water, snow or ice which may leak or flo'il from any portion of t:,e Cor~rton Sle,,)pnts or frO:"T! any nine, drain, conduit, anpliance or equipr:Jent, '!'he lJnit OI'/11ers Associ~~ti,,"'} shall not be liah1~ to any Un~t Owner fer lOBS or dama~e. by the~t or other1'1ise I of' articles ''''hich :nay \:e stored un on any of the CO'Tl'11an "laments. '~o diminution or abatenent of any assessments, as herein else'!lhere provided, shall be eJ.air:Jed 0::' allowed for inconvenience or disco~fort arisinG fro~ the makin0 of repairs or improvements to the CO!'l!110n Elements or fro~ any action taken by the Unit OWners AssociatiOn to comply ~ith a~v law, or~in~nce


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or with the order of directive of any TIunlcipal or ,other governmental authority,

Section 3.16. CommC'ln or Interested Directors. Each member of the Board of DI!'ectors shall exerc1se hiS pow~r~ and duties in good faith and with a view of the interests or the GC'lndo~inium. ~o contract or other tranBac~ion between the Unit Owners Association and any of its director~. or between the Unit Owners Association and any corporation, ftr'Cl or association in which any of the director5 of the Unit Owners Association are directors or officers or are pecuniarily or otherwise interested is either void or voidable because any Such director is oresent at the ~eeting of the Board of Directors or any committee t~ereof which authorizes or approves the contract or transaction, or because his vote is counted for Such purpose, if anv of the conditions specified in any of the followin~ sub-para~raDhs exists;

(a) The fact of the ~omMon directorate or interest is disclOsed or known to the Soard of Directors or a majori~y thereof or noted in the minutes, and t~e Board of Directors authorizes, approves or rat:'fies such cOntract or ';ransacticn i~ good faith by a vote sufficient for the purpose, or

(b) ':"he fact of the CO=on directorate or interest is disclosed or knm-rn to at :!.east a majority of the TTnit Owners, and the Unit Owners approve or ratify the cOntract or transaction in good faith by a vote sufficient for the purpose; or

(c) The contract or transaction is co~erciallY reasonable to the Unit Owners Association at the ti~e it is authorized. ratified. approved or executed.

AR"I'ICLE IV

Officers

Section 4.1. Desi";n2.tion. The principal officcr::; of tr.e U~it Owners Association shall be the President, the Vice Presi~cnt, the Recre~nry and the Treasurer, all of whom shall be elccted by the Board of Directors. The 50ard of Directors may annoint an assi,st2.nt treasurer, an assistar.t sec!'etary and such othe:' officera as in its jud~ernent may be necess~ry. The ~rcsident anri Vice President shall be me:nbers of the gaard of DirectOrs. All off.i.cers mUist be Unit O"mers.

Section 4.2. ~lection of Officers. The of~icers of the Unit Owners Association shall be elected annually jy the ~oard of Directors at the orsanizatlon ~eeting of each neW 90ard of Directors a~d shall hold office at the pleasure of the Soard o~ Directors.

Sect:'..on 4,], Removal of Qffirlers. UPO'l the af:"lrmative vote of a majority of all memhers of' the Board of D1recto~s, anY officer nay be removed, either with or ·"ithout cause, ann a Duccessor may be elected at any re~ular meeting of the 30ard o~ Directors or at any special meetin,:; of' the Board of Dir"'ctors c~:::, .. ll ~d for such purpose_

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Section 4.11. Pre~ident. '!'he President shall be the ohief executive officer of the (Jeit Owners Assooiation; pr8sVi e at all Meetin~s of th~ Unit Owners Association and of th~ Board of Directors; And have all of the seneral powers an~ ~utie5 ~hic~ are incident to the off1ce of P~esident of the corpor~Lion includinr:: wit:'lout limitation tte fo;'r~!" to Flpp(1int CO;lrnitte'?~ fre m a'Tlo"l:; the Unit Ot<l1er['l fro1"!l tirte-to-timc as the President: :nay in "i~ diso.r'etion decide i~ apprcroriate to assist in the con<i1.'.ct of ';'18 affairs of the Unit D'.mers Atisociati::m.

Section 4.5. V::'ce-?resident. The Vlce-?resider.t: shall take the place of the Pre:ddent and perror"'1 the dut:es 0" t'1e President trTnene'lp.r the President shall be absent ur un,alJle +;0 e.C'":. If neither the Presider:t :'lor the Vice-Fresic.ent is able to ~_G~, the ":oare: of Directors shall appoint some other Me::"bF!!' of t'1e Goard of Directors to act in the Place of the Pres'~ent, Or' an ir.teriI:l bas':'s. ':'he Vice-President shall also perfor::n SIlC'"", other duties as shall fron ti::ne-to-;;LJe '~e i:nposed upon "1i::n by t1",e 30ard of Directors or by the President. '

Section 4.6. Secre:ar'!. The Secretary shall keep the ::ninutes of all meetings of the Unit Owners AS30ciation anc. of the Board of Directors; have char:::;e of such books Bnc. paners as the Board of Directors ~ay direct; Maintain a re~ister se~tin~ forth t!1e place ';;0 '.~hlc~ all notices to Unit Owners and "lorts:;a,":c~2 hereunder shall be delivered; and, ir, general, perform '3.11 tl-Je duties i!'1cider.t to the office of secreta!':! of ~hecorT)o!'!l.t:'on.

Section 4,7. Treasurer. '!'he Tt'easllrer slca11 !-Jav., tC1e responsibility for Unit D'.merG Association '::unds a;1d securities and shall be responsible for keepinc full and ac;:cura';;e fi...,ancial. records and books of account showin£; all receipts and dis'::lUrse::;ents. and for the preparat:'on of all required financial. data; and be respon3ible for :he deposit of all monies and ot~er val~ablp effec';;& in the name of :he Board of Directors, the l~it Jwners AS50ciation or the :18.nar;in3 A.',:cnt, in such cteDosltories as :!la'! :::':00:':1 time-to-ti!::lC be cesignated hy the 50"rd of Jircctors; anc:, 'n general. perform all the duties incident ~o :he office of treasuro !"

of the corporation. The Treasurer ""~ay a:;:;s:.:;;n cert:?i~. cuties to t'"." '1anar;er ';lhi:::h aC1provul of the "oard of Direc~o!'s.

Sec';;ion l.i. 3. EXGclltion of Doell'"'.ent:.>'. All a,,:r~e:!ler.t5, CO'1-trac:;s, deeds, leases, checks and other inscruments of tr.fC TJn:i.t Owners Association for expenditures or obl!sa~ions shall be exe~u,;;ed by any tNO ?ersons designated by t01e 30ard of Directors,

3ection 4,0. Co~ppnsat::'on of Of ricers , No orric~r 5l":al: r,~ceive any cC4.pen:3ation fro:r:-l tte Unit iJirlne!'S ,i\ssociat:'oli for' acting as such officer,

bceratio'1 of the Pronertv

Section 5.1. Deter~ination of r,o~~cn ~xce~Ges ~nd Assessments Ao:ainst llnl t ;Jwners.

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575-758-1912 p.13 ... (a) Fiscal Year. The fiscal year of the Unit Owners

Association shall be the calendar vear unless otherwise determined by the Board of Directors.

(h) Preparatl'on and Aoproval of Budget.

(1) On or before! the first day of A'Qril of each year, the Board of Directors shall adopt a budget for the Unit a',mers Association containing an estimate of the total amount consld",re!d necessary to pay the cost of maintenance, manage~ent. operatio~. repair and replacement of the Common Elements and those parts of the Units as to which it 15 the responsibility of the Board of Directors to maintain, repair and replace, and the cost of wa~es, ~aterials; insurance preQiuQs, services, supplies and other expenses that may be declared to be Co~~on Expenses by the Condominium Act, the Declaration, these ~y-laws or a resolutio~ of the Unit Owners Association and which will be required durin~ the ensuing fiscal year for the administration, operation, ~ai~tenance and repair of the Property and the rendering to the Unit Owners of all related services.

(2) Such budget shall also include such reasonahle amounts as the Board of Directors considers necessarv to nrnvide worlcing capital, a genera:' operatin~ reserve and reserves for contingencies and replacementlJ. The 30ard of Directors stall send to each Unit Owner a copy of the bud;et in a reasonacly itemized form Nhich sets forth the a"'lount of the COTll'110n SxnenseS and any special assessment payable by each Unit OWner. Such budget shall constitute the basis for determining each Unit Qwner's as se 5smen t for the Common E:xpenses of the. Uni t OWCiers Association, if ratified pursuant to Section 47-78-3 of the Act.

(3) The Soard of Directors shall set a date :or a meetinG 0:: the Unit Owners to consider rt?tifieation of the bud.set not less than fourteen (14) nor ~ore t~an thirty (3~) days after mallin!; of the copy of 'Che budget. The hudget nay be ratifieCi upon a majority vote of the Unit Owners present and by proxy whether or not a ~uorum is present. In the event the p~oDosed bud~et is rejected, the periodic budget last ratified bY the Unit OWners shall continue until such time as the Unit Ov.rners ratify a subsequent budget proposed bY the'Soard of Directors,

(e) Pa~ment of Common ~xoenses. The total amount of the est~ffiated unas requ~re :ar the operation of t~e Property set forth in the budget adopted by t~e Board of Directors and ratif'ied by the Unit Ol-mers shall be assessed a.:o;ainst each Unit Owner in proportion to his respective CO-Ttmo:'1 Expense Liatilit~? and shall he a lien against each Unit Owner's Unit. On or before the f'irst day of each fiscal year, and the first day of' each of the succeeding elevcn (11) mDnths in 3uch fiscal year, each Unit Owner shall be o~11~ated to pay to the Board of ~irectors or t~e ~anaGing A~ent (as dete~ined by the Soard of Directors), O:'1etwelfth (1/12) of such assessment. Within sixty (6n) davs after the end of' each fiscal year, the Soard of Director's shall supply to all Unit Owners and to each :~OI't;;D.rsee an iteml'led accountin,

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of t~e Common E~penses for such fiscal year actually incurreu and paid, together with a tabulati.on of the a~ounts col1ected pursuant to the budget adopted by the noard of Directors for ,'1uoh fiscal year, and showi.ng the net amount over or short of the actual expenditures plus re5erves. Any amount accu~ulat~n in exce,.;:'l of the amount r"'r'luired for actual expenses and resel"vr's shell, if the Board of Directors deems adVi.sahle, he credite~ according to each Unit Owner's Common Expense Liahility to the next monthl.Y installments due froCl Unit OWners under the C1.1rrp.nt fiscal year's hudGet, until exl;auGted. Any net 6hortar;e shall be asseSsed promptly a~ainst the Unit Owners arter oreparation of a revised budget ratified as provided in suh-para~raph 5.1.(h) (2) and 5.L(bl(3l. The shortage Shall be assessed in accordance wit~ their Common Expense Liability and shall be payable either: (1) in full 'liith payment of the next monthly assessmeht due; or (2) in not more than three (1) equal monthly install~ents, as the Board of Directors may determine. In assessin8 common expense liability, tte Board of Directors ~ay assess a~ainst one or ~ore, but fewer than all units the expense of any action which the Board determines 'llill benefit fewer than all units.

(d) ReserveS. The Board of Directors shall build un a~d maintain reasonable reserVeS for working capital, operations, contingencies and replacements. ~xtraordlnarv expenditures not originally included in the annual budget Which ~ay ~eco~e necessary during the year shall be char~ed first a~ain6t ouch reServes. If the reserve;; are inadequate for an'y reason, including non-payment of" arcy Unit O~mer' s assessment. UpO'1 r"tif~catLnn by the t:nit OWners of an adjllsted ';)udr;;et, the "Ioar<:' of Directors Tilay at any ti~e levy a further assess~ent, IIQhich shall be assessed aGainst the Unit O~mer3 accordin~ to their respectivp ::;o~~:Jn Expe!'1se Liabilities, and which l1ay t·e payat!le in a lU"'1n SU1\or i." installments as the Soard of nirect:Jrs may deter~ine. ~~c ~oar~ of Directors shall serve not~:e of any such further ~ssess~ent C~ all Unit O~mers by a ata-::e::lent in ;1ritin.o; givino; ";';", a~10'\,1"; a'1'~ reasons th~refor. and such f~~ther assessrne~t Shall, unless ot~erwise specified in the no~lce. beco~e efrect~ve wit~ the '1e~t ~onthly pay~ent which is due ~ore than ten (1'1) tays after the delivery of sue!"! no~icc of further assPss:J.ent. (,1" '~nl':; O'.':n",:t'3 shal::' he o'oli;:;ater'l :0 pay tr.e adjusted ::lont:-.ly amount or, if such. further assessment is not payable i1:". in:;tall:-:",,,ts; SU8·'1 asseSS::lent shall be a lien as of the effective date as set. for~h ir_ tr_e precedin.5 para;:;raph (c)"

(e) B~fect of Failure to PreDar~ or ~rloDt 3tl~~p~. mhe failure or delay of the Soard of Directors :0 prenare or adont a hud~et for any fiscal year shall not cOnstitu~e a ~aiver er r~leaSe in anv manner of a Unit Owner's obli~ation ~o ~av ~is allocable s·"are of the COl1"'lOn Expenses as herein provined '#l1enever the ::lame shall oe deter::lined ant'l, in the ahsence of any annual bud:-;e~ or adj ust ed bud',;e t. eac!1 ~ini t D\mp.r shall ~ont inue to pay each monthly installment at the rnont~ly rate establt:Jhc'l [or the previou~ fiscal year until notice of the ::lOnthl~ pay~ent which is due :n:Jl"e than flfteen (15) day" after SU:'1 r,,'w annual or adjusted budGet Shall have been delivered and ratified by t~P. unIt Ovmers.

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(r) Accounts. All sumo collected by the Board of T'Jirectorc with respect to assessments against the t'nit 01'mers or from any other source may he co~~in$led into a sln~le fund, but ahall he held for each Unit OWner in accordance with i1is Common Expense Liability.

Section 5.2. PaYliIent of CO[T]20n' Exnense:'l. Each Unit Owner shall pay the Comrnon Expenses assessed by the '3oard of Directors pursuant to the provi~ion~ of Section ,.1. of these By-laws. No Unit O~mer ma.y exempt hiilllSelf from liahility for his contribution toward Co~~on Expenses by waiver of the use or enjoy:nent of any of the Common Elements or by abandOnment of his Unit. No Unit Owner shall be liable for the payment of any part of the Common Expenses assessed against his Unit subs'eouent to the date of recordation of a conveyance by him in fee of suc~ Unit, provided notice is given to the Association prior to conveyance. Prior to or at the ti~e of any such conveyance, all liens, unpaid charges and assessme~ts shall be paie in full and dischar~ed. The purchaser of a Unit shall be jOintly and se'ferally liable with the sellin::>; Unit Owner for all unpaid assessments a~ainst the latter for his proportionate share of the COl'L'TIon F.xpenses up to the time of such recordation, \~itho\lt prejudice to the purchaser's ri~ht to recover fro~ the sellin~ Unit Owner amounts paid by t~e purcha~er therefor; Ero,rided, h,?"!ever, any such purchaser shail be entl-tled to a sta 'ement sett~n;; rart~ the a~ount of the unpaid aSSessments against the sellin~ Unit Chmer ~rithin ten (10) worl.::ing days followin5l; a ~lritten request therefor to the Board of Direc~or~ or ~anaging Agent and such purchaser shall not be liable for, nor shall the Unit conveyed be subject to a lien for, any unpaid assessments in excess of t'le amount therein set forth; and orovided, further, that each :~ortE:;aGee who COmes into possession or a Condominium Unit h~' virtue of foreclosure or by deed or assignment in lieu of foreclosure. or any purchas at' at a foreclosure sale, sha!l take the Condominium Unit free of any claims for unpaid assessments or charges a~ainst such Unit which accrue prior to the time such ~ortga~ee co~es into p03BeB~ion thereof, except for claims for a pre rata reallocatiOn of sue:, assessments or Ci1arges to all Condominium Uni ts includinG the mort gar;ed Condomlniu"l [1"1 it .

Section 5.3. Collection of AsseS!~ents. mhe Board of Jirectors or the !!anaging A.gent _ at the re'quest of the 'Soard of Jirectors. shall take prompt action to collect any assess:nents for Com;non Expenses due fro"! a'1:{ :Jnit O',nier which rer.lain u!"1oaid for more than ten (Ie) days i'rom the due date .ror paymRn:; thereof'. Any assessment, or installment thereof, not paid within ten (10' days after due shall acorue a late cl1arge in the a'1l0unt Qf Five Dollars ($5.00) per' day until [.laid.

Section 5.4. Statement of ~O"lmon ~xpenses. ~e Board of Directors shall promptly provide any Unit 3 .. rner, contract purcha~el' or "'tortgagcc sO requestinf$ t"'e same in writ~np; 'Nith a \-lritten statement of all unpaid assessments for C0"1!'10"1 Fxpenses due from suer, Unit Owner. Such statement shall be :'urnishe(i within ten (10) business days after receipt of the reouest nnrt

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is bindin~ on the Association's Board of Directors and every Unit O~mer. The Board of Directors may iopose a reasonable charse for the preparation of such statement to cover t~e cost of preparation to the extent permitted by the GO:1.dominium Act.

Section 5.5. 'I[aintenance, Repair, Replaceml'nt and Other CommOn Exre~ses.

(a) ay the Board of Directors. 'rhe ':Ioard of Directors shall be responsible for the maintenance, repair a;10 replacement (unless. if in the opinion of the Board of Directors suc~ expense was :1ecessitated by the misconduct of a :Jnit O'wner) of all of tte Common Elements (includinCS the Limited COT'lmon ElelT.ents) as definer. herein or in tbe Declaration, whetr.er located inside Or outside 0::' the Units, the cost of which shal2. he chaI''Sed to all TTnit Owners as a Commo:1 Expense, provided, hm/ever, that Unit OWner shall perform normal maintena~ce on the Limited Co~mon Flements appurtenant to t~is Unit and any portion of ~he re~ainin~ Co~~on Elements which the Board of Directors pursuant to the Rules and Regulations has <J;iven him permission to u::ilize, inclufiir.g ~·.rithout limitation the items enumerated in SUb-section 5.)(h) hereof.

(b) By the Unit Owner

(1) Each Unit Owner shall keep his Unit and its equipment, appliances and appurtenances in ~ood order, condition and repair and in a clear. ar,d Isani tary condit ian. and sl-call do all redecoratin~. paintin~ an9 varnishin~ which ~ay at any time be ~ecessary to ~aintain the ~ood appearance and conoition o~ his U:1it. In addition, each Unit IOwns:::' shall be resoor.sil::le for all da),~aGe to any other Units or ~o the CO'1'\Jllor; !':le:nents resc;.ltinn; fro~ his failure to :nake any gf the repairs required by this Section. Each rJnit O',mer sha]l perro!''"! !-Jis rssponsibiltty in Sl\C'":

a :-:tanner as shall not unreasorlably disturb or interfere with ::he other Unit G'.mers. Each iJnit IO~mer shall !lrorn:tJy repo~t to the BORrd of Directors or the ~anaGer any defect or nee~ for repairs for which the Board of Direct~rs is responsible.

(2) The un!~ OWne:::' of any Unit to Which a patio, terrace or balcony is app~rt8nant shall perfor'"! the nOr'"lal ma~ntenance for such oatic. terra~e Or balcony includinG )ceepinr; it in a clean and sar.itary condi-:Jion, free ana clear of snoH. ice and any accumulation of wa::erJa~d shall also ~aYe all r~palrs thereto caused or ;Jer'rl.i tte1 b' his C'le.,!;ligence J ;:1i511Se 0::" npo:;'e~t. All Etructural repair or replacement stall be made hy the Soard of Directors as a Common Expense. as provided in Sutsec~ion ).5(a) abOVe. I

(3) Any Unit O'Nne!" pern',itted ".'J the 'joa!'c of' Directors to use a specific 9?rtion of the CO"l"'on t':lemc:1ts i,; responsible for the maint"niln~e and care of such portion an"! shall use Guch port~on in a safe and sanitary sanner.

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(c) i'fanner of' Re air and Re lacernent. All repa':'rs and replacements shall be substant~a 17 3~m~lar to the ori~inal construction and installation and ::shall he of first-class oualitv, The method of approving payment 'fouchers for all· repairs ar"o replacements shall be determined by the Board of Directors,

Section 5.6. Additions I Alterations or Imorovemcnts bV Board of DirectorA. Whenever In the judeement of t~e 90ar~ of Jirectors improvements or repairs are deemed necessary, the ':1."t":i~of suc~ additio~s, alterations or improvements shall be approved by the Board of Directors. All Unit ')vrners shall he assessed for the cost t~ereof as a Co~mon Expense.

Section 5.7. Ad~itions! Alterations or ImDrOVp.m~~ts tv !Jnif; Owners. :Jo Unit OHner shall mal,e any struc,:;ural aedition, alteration or improvement in or to his Unit wit'lout t'le prior written consent of the Board of D:".recto2:'s. 1·10 Unit Clwner shall paint or alter the exterior appearar"ce of ':iis [Tn!\.': , inclu(lin"; the doors and windOWS) nor shall any Unit Owner paint or alter the exterior of any buildinc, without the prior ~ritten consent of the Board of Direc~ors. The Board of Directors shall be obli~ated to answer any written request hy a Unit Owner for approval of a proposed structural addition, alteration ~r i::lprover:tent in such Unit Owner's Unit \'lithin thirty C3r'J) days after such request. and failure to do 60 within ihe stipulated ti:ne shall constitute a consent to the alte2:'atior1 or imOl"O'TC"1C'1t:. If any application to any sovernmental authority for a ye~.it to make any such structural adCition. alteration or improvement in or to any Unit requires execution by the Unit Owners Association. and provided consent has been ~iven by t~e Soard of r.irectors, then the application shall he executed on hehalf of the Unit Owners Association by the Soard of Directors only, withou-:;. hO~'lev'2r, incurring any liability on the part of the Soard of Direc~ors or any of them to any contractor, subcontractor or materialmen on account of such addition, alteration or lmpro\'e:nent, or to any person havin(l; claim for injury or damar;e to propert:,r arlsinc:: therefrom. Subject to the approval of any '10rt~al1:ee of such affected Units, the Board of Directors and any Unit 011ner affected, any Unit may be sub-divided or may be alter!'!d so as to relocate the boundaries between such Unit and any acl.ioini:1?; Jnits. The Secretary shall record any necessary a'1!!nrlm!!nt to the Declaration to effect auc~ action as p~ovided in Secti6ns 47-73-12 and 47-79-13 of theCondo~inium Act.

Section 5.8, Restrictions On Dse of Units: Rules and ::le!":ulations.

Ca) Each ~Jnit and the ;;o"1.:non 1!lement'.l shall ne occu~ied and used as follOWS:

(1) Except for the areas of the Condo~iniun ~[med for commercial use and except as provided in the Declaratlon, no Unit Shall be usee] for ot!1er than housinG!; and the rp.!.ated


common purposes for which the Propcrty was desi~ed. Thc Board of Directors may permit reasonable. temporaI;Y non~ residential uses from time-to-time.

(2) Nothin(l; shall be done or kept in an,Y Unit or tn thl" r;om~on Elements which '!lil1 increase the rate of in:3urance for the Property Or any pax't thereof applicable foI' rssidential use without the prior written consent of the Soard of Directorn. No Unit Owner ohall permit anythina; to be done or kept in his Unit or in the Common 5lement3 Which ~Itll result in the cancellation of insurance on the Property Or a.ny part thereof or whic:'1 would be in violation of any laH. re(,;ulation or administrative rulin~,

(3) ~Io immoral, improper, offerlsivp. or unla'd~ul use shall be made of the Property or any part thereof, and all valid laNs. zoniCl'C ordinance's .and re,,;ulations of all o:overnmental agencies havine jurisdiction thereof shall ~~ obse~ve~, All laws, orders. rules, recr,ulations or requirements of any governmental agency having jurisdiction tr.ereof relatinR; to any portion 01' t:'1e Property shall be complied '"rith, by and at the sole expense of the "nit Owner or the Board of Directors. Whichever shall have the obli~ation to ~aintain or repair suc~ nortion of the Property, and, if the latter. then the cose of such co~pliance shall be a Common Expense,

(4) ~o Unit Owner shall obstruct any of t~e Co~~on Elements nor shall any Unit Owner store anyt'-1in" u[:on ar:y o~ the Common Eleme~ts (~xc~Pt those areas designated for suc~ stora~e by the Board of Directors) without the approval of the '3oard of 'Jirectors. Vehicular parkins upon the ''Co"'!mon P,lemen ts ~ay be I'esulated or assi~ned by the 10ard of Directors, Nothin~ sh~11 be altered or constructed in or ~emoved from the Co~~on E:ernen:s except upon the prior written CD~sent of t~e Roarrl of D':'rcctol's.

(5) The Co~~o~ Element3 3~all be use~ onlv ~O~ the furn':'shlng of the service~ and facilities for Wh!ch the same are reasonably s~ited and which are incident to the use and occupancy of the Units.

(h) '10 llnit shall he rented !'or ot'ier than rasidential Durcoses. No Unit Owner shall lease a Unit other than on a \~rit,ten for"'! of leasf' rerl"c.lirino; thE' les!H'>" to (lomely wi~h the ~onao"'!iniuD Instr'lmonts and Re~uJat1ons, and nrovidin~ that failu~e to comply constitute5 a default under the lease. T1':e Board of Direc-::ors :nay orov::'de a sU'Y,~ested standard for":! lease for use hy tTnit Owners. F.ach ]lnit Owner shall prompt2.:r. follo· .... ine; the execution of any such lease, forwar(i a confir':led

·copy thereof to the Soard of ~irectors or Mana~er.

(7) Tr;,;.llc!'~. c;,;.mper's I I'carcation;,;.l vp.'1i(JhI!5 or boats may not be pnrked 01'1 thE' PropE'rty, '.10 junl<" or aerell",t vp~iclp or other vehicle on which current re~istration plates are not displayed shall be kept upon an:, of the CO"1mon Fle":1eDt.s.

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(8) The maintenance, l<ccping, boarain'!; and/or rai8in~ of animals, livestock, poultry or reptiles of any kind. re,:>ardless of number shall be and is prohibited within any Unit or upon the Common Element::;, except that the keepine; of' s'11all. orderly domestic pets (e.~ •• dO~6. cats or caged birds) not to exceed one Del' Unit without the approval of the Board of Directors. is permitted SUbject to the Rules and RI"!1.:ulatio,.,s aroptl"d hy the 30aI'd of TllrectoI's; provided, however, that such pets are not kept or maintai.ned for camml"rciaJ purposes or for breeclin'j and provided further, that any such pe: caUSing or creatin~ a nuisance or unreasonable disturbance or noise shall he per:nanentLv removed from the Property upon ten (10) days' written notice rro~ the Board of Directors. Such Pets shall not be permitted UDon the COrrL'Tlon Elements unless accompanied by an adult and unlf'ss carried or leashed. Any Unit Qlmer who keeps and maintains any pet: unon any portion of the Property shall he deemed to haVe inde~irie~ and al];reed to hold the CondoC1ini um and eaCh :.Ini t O"mer free and harmless fro'1l any loss, claim 01' liability of an.v kine or character whatever arisin~ hy reason of keepin5 or :naintainin~ such pet within the Condominium. All pets shall be reo:istered. with the Board of Directors and shall other~ise he re~istf'red and inoculated as required by law. .

(9) (a) No s':'~ns of any character shall be erp.cted, posted or displayed upan, in, fro':! any Unit or Common Elemen~s without the prior written approval of the Board of Directors. The provisions of this Subpara~rap~ s~all not be applicable to the institutional holder of any first ~ort~age Which COmes into possession of any [Jnit by reason of' any re:nedif's provided for in the mortgage. forec'osure of any mort~a~e or any deed of trust or other proceeding in lieu of forf'clo5ure.

(b) Each U~it and the Co~~on ~le:nents shall he occupied and used in corr.pliance with the Rules and Ee,,:!:ulations wtich '!lay he pro"1111!1;ated and anended by t1;e Boare of Directors. Copies of the Rules and Regulations shall he furnishe('l "V the Beard of Directors or ~anager to each T~it Dwner. A~end~ents ~o the RUles and Ren;ulat::.ons shall he conspicuously pasteo p:::-ior to the time when the same shall beco:ne effective and copies thereof shall be furnished to each iJnit Owr.er upon request.

Section 5. q. Rip"h:; of Access. By acceptance of his dee"! of ~onveyance, each Unit OWner thereby ~rants a ri~ht of access to ;,i3 Unit, as provideo 1'1y Sf'!ction 47-7"'-7 0" the r'.on r1 0'iniTTI Act and Article IV, Sectidn 2(b) of the Declaration, to the Soard of Directors or the ~ana~in~ A~ent, or any other Derson authorized by the 30ard of Directors or tho ~ana~in~ A~ent, or anY ;:;J:"!lllP of the :"orer:o!..n.";, for the rlllroose of e!1ablin~ the exercise and dischar!';e of their respect.'.vE pOIH"r and PC'snon_ sibilit'es, includin~ without li~itation ~a~in~ inspections, cor~eot~n~ any condition ori~inatin5 in his ijnit, and threaten.t'l": ar.othcr Unit or the C011ctOn Elomont[;, po.-for,in" inst3.llat1on~, alterations or repair5 to the mechanical or electrioEl serviC2B to the COT'lmon r.l~ments i:'1 his Unit or elSe\·lr.ere in the Property or to correct any condition whic~ violates any mort~a~e; Drovide~, hOOfever, that rp.qlJests I for entry ar8 llade in arlvanco 3.rlrl that anv


such entry i~ at a time reasonahly convenient to the lMit ONner. In case of emergency. such rill;ht of entry shall be immediate, whether the Unit Owner is present at the time or not,

Section 5.10, Utility Char!';es. "'he cost of uU:'ities servinl; the Condominium GhClll be Cl Com!!Ion ':;:xpenGe.

Section 5.11. ParkinI': SVac8s. All parl,{inr; soaces desirsnated as such On the Plats and Plans Shall he used by the Unit Owners for self-service parking purposes on a "first co~e, first servec." basis. provided, however, that no Unit Owner shall park more than one 0) vehicle (owned or leased hy such Unit O~rner, a ""lember of his family or a tenant residing in his T1n,'i t) on the Co~~on Element parking spaces without the prior written consent of the 30ard of Directors. The cost of maintenance and reDair of all parkins areas shall be a Co~on Expense. Any parkin~ area desi~na~ed as a Reserved COID"on Element by the Soard of Di~ectors shall not he re-designated to another unit, nor shall the exclusivity of its use be te~inated without the consent of the owner of the Unit to whicf1 it is appurtenant, so lonr,; as said Unit Owner is not in violation of any provision of the Declaration or these By-laws, and 1s not delinquent in the payment of aSS9SS~ents. Should said unit be encumbered by a mortr,ar,e, the consent of the Hortr;:agee Shall also be required.

Section 5.12. lIse of Co~mon Flements. ~o Unit OWner sha:! alace or cause or permit to be placed on or in the ~ublic halls, stairl1ays or other Common Elements (other than in the areas nesir;nated as storag;e areas) any furniture, packao.;es or objects of any kind. The lObbies, vestibules, public halls and stairways shall be used for no purpose other than for normal transit.

I~!SjTRANCE

Section 6.1. Authority to PurChase. (a) ~xcept as otherwise provided in Section 6.5 of ~hese By-laws, all insurance policies relatin.:; to the Property shall be purchased by the Soard of ~irectors. Neither the Board of Directors nor t~e ~anaBing Agent shall be liable for failure to obtai~ any covera~es required bY this Article VI or for any loss or daMa~e resultin~ from such failure if such failure is due to the unavailability of such covera~es from reputable insurance companies, Dr if such covera~e5 are so availahle only at a demonst~ahly unreaso~ahle cost.

(~) ~ach such policy shall provide that:

(1) The insurer waiVes any ri<>;ht to 01a2.11 hy way of subror:;atlon ae;ainst the Unit Owners Associatton. the !3card ui' Director::; I the :'Ia.na.c,:!.n,o; Assn': or th,. l'n1 t ()wnprs, and. their respecti ve a"ents. employees, p;uests and. in the case of the Unit Olmers. the membO'!rs of their househOlds:

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(2) Such policy shall not be cancelled, invalidated or suspended due to the conduct of any Unit Owner (including his invitees. agents and employeeS) or of an)! member. officer or employee of the 30ard of Directors or the ~ana~in~ Agent without a prior demand in \~ritin~ that the Boar(l of Directo:r'3 or the Mana~in~ Ar>;ent cure the defect a.no neithe!' shall have so cured such defect within thirty (3n) days after such demand.

(3) Such policy may not be cancelled or substantially modified (includin--: cancellation for nonpayment of premium) without at least thirty (31)) days' prior ·,Iri t ten notice to the BO!l!'d of Dir'ec~ors and the 11anarcing Agent and, in the case of physical damao;e insurance. to all '~or'tgagei';s. .

(0) All policies of insurance shall be written hy reputable companies licensed to do business in the State of ~ew ~exico. Physical damage poliCies shall be in for~ and 5ubstance acceptable to the ~ortgaGees.

Section 2. Physical Damage Insurance. (a) The Board of Directors shall obtain and t:laintain a blanket, "all-risk" form policy of fire insurance with extended coverage, vandalism, ~elicious mischief, windstorm, sprinkler leakage~ debris removal, cost of demolition and water damage endorsements. insuring the entire Property (including all of the Units and the bathroom and kitchen fixturesinitis,11y installed tberein by the Declarant and the replacements thereto installed by the Declarant but not including furniture, wall coverings, furnishings or other personal property supplied or installed by Unit fr~~ers). together with other service ~achinery contained therein, and covering ~e interests of the Unit Owners' Association, the Board of Directors and all Unit Owners and their Mortgagees, as ~eir interest may' appear, (subject, ho-.:ever, 'to the loss payment and adj.uBtiment: provis ions _in favor of the Boar.d of Directors end, the Insurance Trustee contained in Sections 6.6 and 6.7 of these iylaws, in an amount equal to one hundred percent ('OO~) of the then current replace~ent cost of the Property (exclusive of the land, excavations. foundations and other items normally excluded from such coverage). withc.t deduction for depreciation (such amount: and other aspects or coverage to be reviewed annually by the Board of Directors wren the AsstStance of the insurance company affording such coverage).

(b) Such policy shall also provide:

") A "Waiver of any right: of the insurer to repair, rebuild, or replace any QQ~a5e or dQgtrll~tion. 1£ a decision is made pursuan~ to these Bylaws not to do 80 and, in such event. tha~ the insurer shall pay on the basis of the agreed amount endorsement as though a total 10s8 had occurred;

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(2) The following endorsements (or equivalent): (i) "no centrol;" (ii) "contingent liability from operation of building laws or codes;" (iii) nincreased corll: of construction" or "condominium replacement eost;ft and (iv) "agreed amount" or elimation of co-insurance clause; and .

(3) Tha.t any "no insurance" elause e"'~l'tessly exclude individual Unit ~~ers' policies from i~s operation so that the-physical damage policy purchased by the Board of Directors shall be deemed primary coverage and any individual Unit Owners' policies shall be deemed excess coverage, and in no event shall the insurance coverage obtained and maintained by the Board of Directors hereunder provide for or ,be brought into contribution with insurance purchased by1ndividual Unit ~~~ers or their Mortgagees unless otherwise required by law.

(c) A duplicate origipal of the poliey of physical damage insurance, all renewals thereof. and any subpolicies or certificates and endorsements issued thereunder together with proof of pa)~ent of premiums shall be delivered by the insurer to any Mortgagee 80 requesting at least thirty (30) days prior to expiration of the then current policy. Prior to obtaining any policy of physical damage insurance or any renewal thereof the Board of Directors shall obtain an appraisal from an insurance company, or such other source as the Board of Directors may determine, of the current replacement cost of the Froperty (exclusive of the land, excavations, foundations and other items normally excluded from such coverage). without deduction for depreciation, for the purpose of determining the amount of physical damage insurance to be secured pursuant to Section 6.2 of these Bylaws. All Mortgagees shall be notified promptly of any event giving rise to ~,claim, under such policy.

Section 6.3. Liability lnsuran-ce: The Board of Directors shall obtain and maineain co~prehensive general liabil~ty (including libel. Slander, false arrest and invasion of privacy coverage and errors and omissions coverage for directors) and property ciamage insurance in such limits as the Board of Direc.tors may from time_.to time determine. insuring each member of the Board of Directors, the Managing Age~t. each Unit Owner and the Declarant against any liability to the public or to the Unit Owners (and their invitees, agents and employees) arising out of, or incident to the ownership and/or use of the Common Elements. Such insurance shall be issued an a comprehensive liability basis and shall contain: (a) a cross liability endorsement under which the rights of a named insured under the policy shall not be prejudiced with respec~ to his ac~iQn against another named insured; (b) hired and non-owned vehicle coverage; (c) host liquor liability coverage with respect to events sponsored by ,the Unit Owners' ASBoclat1on. (tv) deletion of the normal produc~s exclusion with respecc co events <

sponsored by the Unit Owners' Association; and (v) a "severability of interest" endorsement which shall preclude the insuterfrom denying 11ab111ty to a Uni~ Owner because of negligent acts of the Unit Owners' Assoeiation Dr of another Unit Owner. The Board of Directors shall review such limits once each year, but in no event shall such insurance be less than Five Hundred Thousand Dollars ($500,000.00) covering all

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claims for hodily injury or property da~age arising out of cne occurrence. Reasonable l!I.J:l!ount::s of "umbrella" liability ( insurance in excess 0: the primary limits shall also be obta.ined.

Section 6.4. Other Insurance. !he Board of Directors shall obtain and maintain:

(a) adequate fidelity coverage to protect against dishonest acts on the part of officers, directors, trustees and e~ployees of the Unit Owners' Association and all others who handle, or are responsible for handling, funds of the Unit ~~er5' Association. including the Managing Agent. Such fidelity bonds shall: (l) na~e the Unit Owners' Association as an obligee; (2) be written in an amount not less than two (2) times the estimated annual operation expenses of the Condominium. including reserves; and (3) contain waivers of any defense based upon the e~clusion of persons who serve without cotr,?ensstion from any definition of "employee" or similar expression;

. (b) if required by any governmental or quasigovernmental agency including without limitation the Federal National Mortgage Association or the Federal Home' Loan' Mortgage Corporation. flood insurance in accor-dance with the til.en appli-cable regulations of such agency; ,

(c) . wor~entB co~pensation insurance if and to the extent necessar> t? meet the requirements of law;

(d) such other insurance as the Board of Directors may determine or as may be requested from time to time by a Majority of the Unit Owners.

, Section 6.5.· Separate Insurance. Each Unit ~er shall have the right. at his o~ expense, to obtain insurance for his own Unit and for hie own benefit and to ohtain insurance coverage upon his personal property and for his personal liability as ~ell ae upon any improvements made by him to his Unit normally called "t.enants" improvements and betcerments coverage;" provided, ho","ever, that no Unit Owner shall be entitled to exercise his righ~ to acquire Dr maintain such insurance coverage 80 as to decrease the amount which the Board of Directors, on behalf of all Unit Owners. may realize under any insurance policy mainta1nea by the Board of Directors or to cause any 1nsurauce coverage main~ained by the Board of . Directors to be brought into contribution with 1nBur~nce coverage obtained by a Unit OloIner. All such policies shall contain waivers of subrogation. No Unit Owner shall obtain s epal"ate insura.nce poliCies except .as provided in Section 6.5 of these Bylaws.


575-758-1912 5 p.

Section 6.6. Insurance Truste~. (a) All physical damage insurance policies purchased by the Board of Directors shall be for the benefit of the Unit ~~ers' Association, the Unit Owners, their Mortgagees and the Declarant, as their interests may appear. and shall provide that. with respect. to sny single loss, if the proceeds thereof exceed Twenty-Thousand Dollars ($20,000.00) then all such proceeds shall be paid in trust to such lending institution in the metropolitan Taos are~ with trust powers as may be deSignated by the Board of Directors (which trustee is herein referred to as the Insurance Trustee). If such proceeds do not exceed Twenty Tnousand Dollars ($20,000.00) then all such proceeds shall be paid to the Board of Directors to be applied pursuant to the terms'of Article VI!.

(b) The Board of Directors shall enter into an Insurance Trust Agreement with the Insurance Trustee ~ich shall provide that the Insurance Trustee shall not be liable for payment of premiums, the renewal of the policies, the sufficiency of coverage, the form or contents of the policies, the correctness of any amounts received on account of the proceeds of any insurance policies nor for the failure to collect any insurance proceeds. The sole duty of the Insurance Trustee shall be. to receive such proceeds as are paid to it and to hold the same in trust for the purposes -els~where stated in· these Bylaws, for the benefit of the insureds and their beneficiaries thereunder. .

Section 6.7. Board of Directors as Agents. The Board of "'Directors is hereby irrevocably appoim:ed t.he agent for each Unit Owner, each Mortgagee, other named insureds and t.:heir beneficiaries and any other holder of a lien or other interest in the Condominium or the Property to adjust and settle all claims arh lil5 unoeor hu:aurllnaO po1icif>Fi pun:.hased 'by the Board of Direct.ors and to execut.e and deliver releases upon t.he payment. of claims.

ARTICl.E VII

Repair and Reconstruction After Fire or Other Casualty

Section 7.'. When Re~air and Reconstruction are Reauired. Except as otherwise provided in Section 7.4 of tEese Bylaws, in the event of damage to or destruction of all or any of the buildings as a result of fire or other casualty, t.he Board of Direct.ors. shall arrange for and supervise the p~ompr rppair and rest.oration of the Buildings (including any damaged Units, and ~he floor coverings, kl~~b=~ or bathrDo~ fixtures and al'pl:lancsll initially installed therein, ~.

.. -.' " - ~ . . ... -,~ _.i • -.: .-;


other personal property aupplied or installed by the Unit Owners in the Units.~ Notwithstanding the foregoing, each Unit Owner shall have the right to supervise the redecorating of his own Unit.

Section 7.2. Procedure for Reconstruction and Repair.

(a) Cost Estimates. Immediately after a fire or other casualty causing damage to any building, the Board of Directors [under tne direction of the Insurance Trustee] shall obtain reliable and detailed estimates of the cost of repairing and restoring such building (including any damaged Units and any floor coverings and kitchen and bathroom fixtures and appliances initially installed by Declarant. and the replacements thereof, but not including any other furniture, furnishings. fixtures or equipment installed ,by t:he Unit Oiwner in the Unit) to & condition as good as that existing before such casualty. Such costs may also include professional fees and premiums for such bonds as [the Insurance Trustee] [the Board of Directors] determines to be necessary.

(b) Assessments. If the proceeds of insurance are' not sufficient to defray such estimated costs of reconstruction and repair, Dr if upon complet1oD of reconstruction and repair and funds for t.he payment of the ccS"'ts ~ereof are insufficient, the amount necessary to complete 8uch reconstruction and repair may be obtained from the appropriate reserve for' replacement funds and/or shall be deemed a Common Expense and a special assessment therefor shall be levied.

(c) P.~ns and S~ecifications. Any such reconstruction or repair s all be substantially in accordance with the orignal construction of the Property. '

Section 7.3. Disbursements of ' Construction Funds.

<a) ConBtru~tion Funds and Dlsburse~ent. The proceeds of insurance collected on account of casualty. and the sums received by the Board of Directors 'or Insurance Trustee from colle~tions of assessments against Unit Owners on account of such casualty. shall constitute a construction fund whi~h shall be disbursed in payment of the costs of reconstruction and repair in the follOWing ~anner:

(1) If the estimated cos~ of reconstruction and repair is less than Twenty Thousand Dollars ($20,000.00), then the construction fund shall be disbursed' in payment of sueh COS1:S upon ordlilr of thE'! Board of Direc.tors.

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(2) 1f the estimated costs of reconstruction' and repair is ~enty Thousand Dollars{$20.000.00) or more, then the construction fund shall be disbursed in payment of such costs upon approval of an architect qualified to practice in New Mexico and employed by the Insurance Trustee to supervise such work. paycent to be made from time to time as the work progresses. The architect shall be required to furnish a certificate giving a brief description of the services and materials ,furnished by various contractors, subcontractors,' materialmen. the architect and other persons who have rendered services or furnished materials in connection with·the work and stating that: (i) The sums requested by them in payment are justly due and o~ing and that such sums do not exceed the value of the services and materials furnished; (ii) there is no other outstanding indebtedness known to such architect for the services and materials described; and (iii) the cost as estimated by such architect for the ~ork remaining to be done subsequent to the date of such certificate does not exceed the amount of the construction fund remaining after payment of the sum so requested.

(b) Surplus. It shall be presumed that the first monies d,isbursed in payment of the cost. 'of reconstruction and repair shall be from insurance proc'!!eds. and. if there l.s a balance in the const,ruc tion fund after, 'the payment of all of tbe costs of the reconstruction and repair for which the fund is established. such balance shall be divided among all Unit Ow~ers in proportion to their Percentage Interests and shall be distributed in accordance 'with the priority of interests at la~ or in equity in each Unit.

(c) Co~mon Elements. ~~en the damage is to both Common Elements and Units. the insurance proceeds shall be applied first to the cost of repairing those portions of the Co~on Elements which enelose and service the Units, then to thecoBt of repaiTing the other Common Elements and thereafter to the cost of repairing the Units.

Cd) Certificates. The 1nsurance 7rustee shall be entitled to rely upon a certificate executed by the Fresident or Vice President, and the Secretary, certifying: (1) whether the damaged Property is required to be reconstructed and repaired; (2) the name of the payee and the amount to be paid with respect to disbursement from any construction fund or whether Burplus funds to be distributed are less than the aseeSBments paid by the Unit Owners, and (3) all other matters concerning the holding and disbursing of any coPBtruction fund. Any such certificate shall be delivered to the Insurance Trustee promptly after request.

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Section 7.4. ~~en Reconstruction is Not Required. In the event of insubstantial damage ~o the Common Elements and if eighty percent (80%) of the Unit Owners shall elect not to repair the same then, 1n such event any insurance proceeds received on account of such damage shall be ~istributed among all Unit Owners in proportion to their respective Percentage Interest. If the Condominium shall be terminated pursuant to Section 47-7B-1B of the Condominium Act. the net assets of the Condominium together ~ith the net proceeds of insurance policies, if any, shall be divided by the Board of Directors or the Insurance Trustee. as the case may be, amoung all Unit Owners in proportion. to their respective interests.·, after first paying out of the share of each Unit Owner, to the extent sufficient therefor, the a~ount of any unpaid liens on his Unit in the order of priority of such.liens.

ART! Clt VIII

Mortgages

Section B.'. Notice to Board of Directors. .ho mortgages his Unit shall notify the Board of the name and address of his Mortgagee. "

A Unit Owner Directors of

Section 8.2. Notice of Default. Casualty or Condemnati~n •. The Board of Directors When given. notice to any Unit ~~er of a default in paying an .assessment for Common Expenses or any other default, shall simultaneously send a copy of 'such notice to the M.ortgagee.ofsuchUnit •. Each Mortgagee shall also be pr,~ptly notified of any casualty giving rise to a possible claim "under any insurance purchased under Article VI, of all actions·taken under Article VII and of any taking in condemnation or by eminent domain and actions of the Unit Owners' Association with respect thereto. For purposes of this Section only, when notice is to be given to a Mortgagee, the Board of Directors shall also give such notice to the Federal Home Loan Mortgage Corporation, the Veterans Administration, the Federal Home Administration, the Farmer's Ho~e Administration, the Government National Mortgage Association and any other public or private secondary mortgage ~arket entity participating in purchasing or guaranteeing Mortgages of Units in the Condo~inium of the Board of Directors has notice of such partid pation.

Section 8.3. Notice and Atproval of Amendment of Dec laration and Bylaws. Toe Board of ~rector5 shall give notice to all Mortgagees thirty (30) days prior to the date on which the Unit Owners, in accordance with the provisions of these Bylaws, materially aEend the Condominium Instruments. In addition. the consent of the owners of unit estates to which at least 67

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percent: of the votes in the Owners Association are allocated and th~ approval of eligible holders holding mortgages on unit estates which have at least 51 percent of the votes of unit estates subject to eligible holder mortgages, shall be required to add or amend any material provisions of the constituent documents of the project, which establish provide for govern or regulate any of the following: ' "

(a) Voting

(b) Assessments, assessment liens or subordination of such liens;

(c) Reserves for maintenance. repair and replacement of the common areas (or units if applicable);

(d) Insurance or Fidelity Bonds

(e) Rights to use of the common areas;

several portions of the project,

(g) Expansion or contraction'of the project or the addition; annexation or withdrawal of property-to or f~om the project; ,

(h) Boundaries of any unit;

(1) Tne interests in the general or li~ited common areas;

(j) Convertibility of units into common areas or of common areas into units;

(k) Leas ing of uni t ea tates ; similar restriction on the =ight of a unit estate owner to sell. transfer. or otherwise convey his, or her unit estate;

(m) Any provisions which are for the express benefi~ of mortgage holders, eligible mortgage holders or eligible insurers or guarantors of first mortgages on unit estates.

An addition or amendment to such documents shall not be consideed material if it is for the purpose of correcting technical errors, or for clarification only. The constituent docu~ents ~ay provide that an eligible mortgage holder Who receives a written request to approve additions or amendments who does not deliver or post to the requesting party a negative response within thirty (30) days shall be deemed to have approved such request.

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n 'I --'" '(j()k~ /)c<.Q:'i-ci.I, ~,J5)- t:4 ttl' !YC~-c~V-0:'

Section 8.4. ~Notice olf Cnange in Managing Agent. The Board of Directors shall give notice to all Mortgagees thirty (30) days prior to undertaking self-management or changing the Managing Agent and no such change shall be adopted without the .~itten consent of all Mortgagees. .

Section 8.5. Mortgagees' Approvals. Unless sixty-seven percent ( 67% of the Mortgagees have given their prior written approval, neiter the Unit Owners' Association nor any Unit Owner shall:

l

(a) Change the Percentage Interest or obligations of any Unit encumbered by a mortgage.

(b) Subdivide, partition or relocate the boundaries of any Unit encumbered by a Mortgage or the Common Elements of the Condominium;

(c) By act or omissin withdraw the submission of the \, Property to the Condominium Act.

Section 8.6 Other Ri~hts of Mortgagees. All Mortgagees or their representatives s all be entitled to attend meetings of the Un.it Owners' Association and sha:];l have the right to speak thereat. All such ,Mortgagees -shall have the right to examine the books and records of the C.ondominium, and to ",,-, .. reqUire the 8ubmisssion of annual financial reports and other budgetary information.

ARTICLE IX

'Compliance and Default

Section 9.1. Relief. Each Unit Owner shall be governed by, and shall comply with. all of the terms of the Condominium Instruments and the Condominium Act as any of the same may be amended from time to time. In addition to the remedies provided in Section 47-7C-16 of the Condominium Act, a default by a Unit Owner shall entitle the Unit Owners' Association, acting through its Board of Directors or through the Managing Agent, to the following relief:

(a) Additional Liability. Each Unit Owner shall be liable for the expense of all maintenance. repair or replacement rendered necessary by his act, neglect or carelessness or the act, neglect or carelessness of any member of ~is family or his employees, agents or licensees, but only to the extent that such expense is not covered by the proceeds of insurance carrled by the Board of Directors. Such liability shall include his employees, agents or licensees, but only to the

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extent that s~ch expense is not covered by the proceeds of insurance carried by the Board of Directors. Such liability shall include any increase in casualty'insurance rates occasioned by use, misuse, occupancy or abandonment of any Unit or its appurtenances. .

(b) Costs and Attornets' Fees. In any proceeding arising out of any alleged defau t by a Unit Owner, the prevailing party shall be entitled to recover the costs of such proceeding and such reasonable attorneys' fees as may be deter-mine d by the court. .

(c) No Waiver of Rights. The failure of the Unit Owners' Association, the Board of Directors or of a Unit Owner to enforce any right, provision, covenant or condition Which may be granted by the Condominium Instruments or the Condominium Act shall Dot constit~te a \iWaiver of the right of the Unit Owners' Association, the Board of Directors or the Unit Owner to enforce such right, provision, covenant or condition in the future. All rights, remedies and privileges granted to the Unit CMners' Association, the Board of Directors or any " Unit Owner pursuant to any term, provision, covenant or condition of the Condominium Instruments or the Condominium Act shall be deemed to be cumulative and-th~exercise of &Dr one or more thereof shall not be deemed to constitute an election of remedies, nor shall it preclude the patty exercising the Same from 'exercising such other privileges·as may be granted to such party by the Condominium Instruments or the Condominium Act or at lav or in equity.

(d) Interest. In the event of a default by any Unit Owner in paying any sum assessed against his Unit other thaD for Common Expenses Which continues for a period in excess of thirty (30) days, the principal amount unpaid shall bear interest at the rate of eighteen (18t) percent per annum from the due date until paid.

(e) The violation 0 any 0 e Regu ations a opte y e Boar of Directors, the breach of any Bylaw contained herein or the breach of any provision of the Declaration or the Condominium Act shall give the Board of ~ireccors the right, in additieft to.' any other rights set forth in these Byla~s: (1) to enter the Unit in which, or as to which, such violation or breach exists and summarily to abate and remove, at the expense of the defaulting Unit Owner, any structure, thing or cODdition that may exist therein contrary to the intent and meaning of the provisions hereof, and ,the Board of Directors shall not thereby be deemed guilty in any manner of trespass; or (2) to enjoin, abate or remedy by appropriate legal proceedings, either at law or in equity the continuance of any such hreach.

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(f) Legal Proceedings. Failure to comply with any of the terms of the Declaration. these Bylaws and the Rules and Regulations shall be grounds for relief. including without . limitation, an action to recover any sums due for money damages, injunctive relief, foreclosure or the lien for payment of all assessments, any other relief provided for in these Bylaws or any combination thereof and any other relief afforded by a court of competent jurisdiction, all of which relief may be Bought by the Unit Owners' Association, the Board of Directors, the Managing Agent or, if appropriate. by any aggrieved Unit ~~er and shall not constitute an election of remedies.

Section 9.2. Lien for Assessments.

(a) The total annual assessment of each Unit Owner for Common Expenses or any special assessment made pursuant to these Bylaws is hereby declared to,be a lien levied against·the Condo~inium Unit of such Unit ~~er as provided in Section 47-7C-16 of the Condominium Act, which lien shall, with respect to annual assessments, be effective on the first day of each fiscal year of the Condominium and, as to special assessments, on the first day of the next month which begins more than ten (10) days after delivery to the Unit ~~er of notice of such

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Agent may file or record such other or purtber notice of any such lien, or such other or further document,to confirm·the establishment and priority of such lien. .

(b) In any case where. an assessment against a Unit Owner is payable in installments, upon a default by such Unit ~'ner in the time y payment of any two (2) consecutive installments, the maturity of the remaining total of the unpaid installments of such assessments may be accelerated, at the option of the Board of Directors. and the entire balance of the annual assessment may be declared due and payable in full by the service of notice to such effect upon the defaulting Unit Owner and his Mortgagee by the Board of Directors or the Managing Agent.

(e) The lien for assessment may be enforced and foreclosed in the manner provided by the laws of the Stateof New Mexico by action in the name of the Board of Directors, or the Managing Agent. acting on behalf of the Unit Owners' Association. During the pendency of such suit the Unit Owner shall be required to pay a reasonable rental for the Unit for any period prior to sale pursuant to any judgment or o~der of any court having jurisdiction over such sale. The plaintiff in such proceeding shall have the right to the appointment of a receiver. if available under the laws of the State of New Mexico.

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(d) A suit to recover a ~oney judgment for unpaid· contributions may be maintained without foreclosing or waiving the lien securing the same. and a foreclosure may be maintained not~ithstanding the pendency of any suit to recover a money judgment. .

Section 9.3. Supplemental Enforcement of the Lien. In addition to the proceedings at law or in equity for the enforcement of the lien established by the Declaration, these. Bylaws or the Condominium Act, all of the Unit Owners may be required by the Declarant or the Board of Directors to execute bonds conditioned upon the faithful performance and payment of the installments of the lien established thereby. .

Se'ction 9.4. Subordination and Mortgage Protection. Notwi thstanding any other provisions .hereof to the contrary. the lien of any assessment levied pursuant to these Bylaws upon any Unit. (and any penalties, interest on assessments, late charges or the like) shall be subordinate to, and shall in no way affect the rights of the holder of a Mortgage made in good faith for value received; trOvided, however, that such Mort- . gagee secures a loan made] an institutional lender; and Erov1ded. further, that such subord1natio~- shall apply only to Bssessments which have become due arid payable prior to a sale or transfer of such. Unit pu't'suant to !if. decreeo£ foreclosure. or any proceeding in lieu of foreclosure. Such sale or' transfer shall not relieve the purchaser of the Unit at such sale from liability for any assessment thereafter becoming due. nor from the lien of any such subsequent assessment, which lien shall have the same .. effect and be enforced in the same manner as provided herein.'

ARTICLE X

Anendments to Bylaws

Section 10.1. Amendments. These Bylaws may no~ modified or amended except as provided in: provi~wever, that until the expiration of the maximum time permitted by Section 47-7C-3 of the Condominium Act, (a) Section 2.3. (b) Section 2.10. (c) Section 3.1 of these Bylaws. and (d) 10.1 of these . Bylaws may not be amended without the consent in writing of the' Declarant, so long as the Declarant shall be a Unit Owner of Units representing ten (10%) percent or more of the aggregate Percentage Interests of the Condominium.

Section 10.2. Approval of ~~rtga~ee6; These Bylaws contain provisions concerning various rig ts, priorities remedies and interests of Mortgagees. Such provisions in these Bylaws are to be construed as covenants for the protection of such

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:·:o:"tgagees on \'I11ich they may rely in rnaJ.:::i..'1g loa'1s secu...~d by ~1qrtgagees. Acccrdingly> n:J a:ne:lciment or modification of trase Bylaws :impairi.\'1g or affect-in,; !Ouch ri!;1ts, priorities, remedies or i'1ts~ .;si;;s o:f a nortgagee shall be ",ccpte:i \d.thout the prior \iritten consent of such Nortgagees.

PRI'ICL": XI

M:tsce 11 al'Jeous

Section 11.1. l!0tices. All notices, dena'1:l.s, bills, statements or -othGr CG.'Tlllu."lications under these 13',)I1a1:1S shall be in \\Titing and shall be deemed t(j have been duly given if delivered personally or if sent by registered or certified mail, return receipt requested, postage prepaid (or other.ase as the Condo!:i.nil.1'l1 Act rray permit), (a) if' to a Unit c-.mer, at the address which the thit C.mer s:'l8.11 deSignate in \>/!'iting aDd file lqi th the Secretary or, if no sll:h adch'ess is designated, at the address of the Unit of such Unit OI-mer, or (b) if to t~e Unit OI'1l12rS' Association, the Board of Directors or to the r'W-H?..g:L'lg Agent Dr at such other addl5s as shall be designated by notice in I'Il'itbg to the Unit o-vmers pursuant to this Section. If a Unit is olmed by r::ore than one Person, each such person who so d~signated an a.ddress in _\'Jri ting to the Secretary shall be entitled to receive all notices hereunder.

Section 11.2. Caotions. The capi to..'1S herein are inserted only as a nEtter of convenience and for reference, and in no'way define, limit or describe the scope of these Bylal1S or the intent of any provision thereof.

Section 11.3_ ":onder. The use of the masculine gender in these. l3j.'lm·ls shall be deemed to include the i'er,d.n.i.ne and neuter genders a'1d the use of singular sr,all be deemed ·to include the plural, and vice versa, whenever t"", conte).t ~o ~qu:ires.

The foregoing were adopted as the Byla\·!S of La Buena Vida Condo:niniums l.lnit Owners' Association, a corporation not for profit under the laws of the Stai;e of ~e"l Mexico at the first meeting of the. Board of Directors 011 ______ _

,t:1C<4c&.. 22 , 198~.

t2/-wr-~J Secretary /

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