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HomeMy WebLinkAboutOV129403 I . TOWN OF ORO VALLEY EXHIBITS,ASSURANCES, ITS, CC&RS CHECKLIST7 QQ � (of O V CASE NO: / ; -` .y ' - PROJECT NAME: 6)a----x---er-te- - . DATE SUBMITTAL ACCEPTED: 7 /i y// COUNCIL DATE: CHECK IN (ADMINISTRATIVE ASSISTANT) THE FOLLOWING ARE REQUIRED: ASSURANCE AGREEMENT ORIGINAL: AND ONE COPY: EXHIBIT A: LEGAL DESCRIPTION (TWO COPIES) : EXHIBIT B: TRUST AGREEMENT (TWO COPIES) : OR ONE COPY TRUST AGREEMENT: AND ONE COPY OF DECLARATION OF TRUST & ASSIGN. BENEFICIARY: EXHIBIT C: IMPROVEMENT REQUIREMENTS (TWO COPIES) : CC&R'S (TWO COPIES) : FORWARD TO ASSURANCES COORDINATOR: COMMENT: I. ASSURANCES COORDINATOR RECEIVED: 22///c'A; v7 SEWED. � FWD TO ZONING ADMINISTRATOR: RETURNED TO DEVELOPER: ed&cte, ee _ COMMENT: J' e- 712.2/fy_ oi �-i �� SIGNATURE: L7e,, - 4 ,61 . /7$4 II. ZONING ADMINISTRATOR RECEIVED: .fh 7, 9 y REVIEWED: FWD TO TOWN ENGINEER: RETURNED TO ASSURANCES COORDINATOR: COMMENT: a(' SIGNATURE: i e • III. TOWN ENGINEER RECEIVED: REVIEWED: FWD TO ASSURANCES COORDINATOR COMMENT: 4 /0(4)I IN 4 6 . SIGNATURE: IV. ASSURANCES COORDINATOR RECEIVED: COMMENTS REVIEWED: CORRECTIONS MADE: FWD TO TOWN ATTY: RECOMMENDATIONS: --- SIGNATURE: V. TOWN ATTORNEY RECEIVED: REVIEWED: FWD TO ZONING ADMINISTRATOR: DENIED: COMMENT: SIGNATURE: VI. ZONING ADMINISTRATOR FOR COUNCIL COMMUNICATIONS: 4 VII. TOWN CLERK RECEIVED: REVIEWED: COMMENT: DOCUMENTS RECORDED ASSURANCES: NO: CC&RS: RESTORATION BOND: NO: SIGNATURE: ,‘PA-LEY O TOWN OF ORO VALLEY ► 11000 N. LA CANADA DRIVE 4 > ORO VALLEY,ARIZONA 85737 �_ = Administrative Offices(520)297-2591 Fax(520)297-0428 - P° 0,11)1 UN DEO June 24, 1997 Michael Cerepanya Coscan Arizona, Inc. 7400 N. Oracle Road, Ste 343 Tucson, AZ 85704 RE: Performance Bond: B2482470/111162 Bond Amount: $3,500.00 Dear Mr. Cerepanya, The landscape at Canada Hills, Parcel A is now in compliance with the the approved landscape plan. The Zoning Inspector for the Town of Oro Valley has authorized the release of the above referenced performance bond . I am enclosing the original bond and the attached rider. Sincerely, Mary Jo Peterson Assurances Coordinator Approved L.// anuel Padilla, Senior Zoning Inspector 4 p -'%,, '0 -- PURCHASE ORDER 0 4,,,7 \,7 v ‘17-1 Tip Town of Oro Valley "k 4 - fl i\ 'I14' 11000 N. La Canada Drive DATE DATE REQUIRED P.O.NUMBER PAGE 4 ' . iiiij; it 411 , Oro Valley, AZ 85737 09/A2/00 00/00/00 40'26 A ----__...::----------:. .,-_--..}-:-=>. a; (520) 297-2591 •--,--- --, • } PURCHASE ORDER NO.MUST BE ON 'CbUNDEDf‘c3 VENDOR CO,,,"'X,'AN AZ ALL INVOICES- NO.: PACKAGING,ETC. i .\ S V CO NA SCAN ARIZO PU)NNING & ZONING E ATTN: K DE H EITH HY I TOWN OF ORO VALLEY N BCEPL. P 11000 N LA CANADA DR 0 181 BAY $T tt4300 ORO VALLEY AZ 85737 R TORONTO ON M512T7, T 0 Li -' '.(' -NUDINL. SHIP VIA : ORDERED BY : F.O.B. : P.O. TYPE : TERMS : REQ. NO. : / ' ,'4412.-&-d 9 - - 06 PROD. QUANTITY CODE DESCRIPTION ' UNIT PRICE TOTAL COST 1.000 BOND REFUND 2,400.0000 2400.00 RESTORATION (0V12-94-3) CANADA HILLS PARCEL. A DEP PAY 103-000-219.000 2,400.00 Total : 2,400.00 )1 PURCHASE ORDER NOT VALID 1//2/00 WITHOUT AUTHORIZED SIGNATURE AUTHORIZED BY DATE REQUEST FOR RELEASE OF BONDS DATE: November 2, 2004 TO: Charles I Steve FROM: Debbie SUBJECT: RELEASE OF BONDS WOULD YOU PLEASE INSPECT THE FOLLOWING SUBDIVISION FOR A FULL RELEASE OF ASSURANCES? SUBDIVISION: Canada Hills Parcel A Type of Bond: Restoration BOND #: Cash BOND AMOUNT: $2,400.00 Project# OV12-94-03 This bond may be released / I� d This bond may be reduced This bond may not be reduced as work is not complete IF NOT APPROVED FOR RELEASE OF ASSURANCES PLEASE GIVE BRIEF EXPLANATION. ORO VALLEY PLANNING & ZONING DEPARTMENT MEMORANDUM TO: Mary Jo Peterson FROM: Dee Widero DATE: June 24, 1997 RE: CANADA HILLS - PARCEL "A" OV12-94-3 CATALINA AT CANADA HILLS, LANDSCAPE BOND RELEASE This memo is in response to June 19, 1997 field re-inspection for landscape bond release, at Canada Hills, Parcel A. The landscape at Canada Hills, Parcel A is now in compliance with the approved landscape plan (0V12-94-3), and can be released. PURCHASE REQUISITION TOWN OF ORO VALLEY VENDOR INFORMATION DATE: / I Name: TERMS: Address: 9W- %\ Ss SHIP/DELIVER TO: .C) Azk\ 5 T r Unit Total Account No. Item Description Quantity Cost Cost r©�- \Q‘ 0 v \ A Check Request 01, Special Instructions: (Date Required,etc.) Purpose or Use: Unencumbered balance $ If account Overdrawn,funds available in Account No. Unencumbered balance$ Requested by. Approved by: In compliance with SOP#2, if a single purchase is in excess of$1000,purchaser must submit three separate bids. If vendor selected is not the lowest bidder,briefly explain why in the comments section. Vendor#l Contact Person: Telephone# Price Quote: $ Comments: Vendor#2 Contact Person: Telephone# Price Quote: $ Comments: Vendor#3 Contact Person: Telephone# Price Quote: $ Comments: / //NO-ET Y 0 ,,f ' , 0 4 , , TOWN OF ORO VALLEY p 11000 N. LA CANADA DRIVE 4 ORO VALLEY, ARIZONA 85737 •d !• Administrative Offices(520)297-2591 Fax(520)297-0428 FOCI D E D May 3, 1996 Michael Cerepanya Coscan Arizona, Inc. 7400 N. Oracle Road, Ste 343 Tucson, AZ 85704 RE: Performance Bond: B2482470/111162 Bond Amount: $88,000.00 Dear Mr. Cerepanya, The Zoning Inspector for the Town of Oro Valley has authorized the reduction of the amount of the performance bond for landscaping of Catalina at Canada Hills from $88,000 to $3,500. Sincerely, e_,Ze Mary Jo Peterson Assurances Coordinator ORO VALLEY PLANNING & ZONING DEPARTMENT MEMORANDUM TO: Bill Crystal FROM: Dee Widero DATE: May 29, 1997 RE: CANADA HILLS - PARCEL A OV12-94-3 CATALINA AT CANADA HILLS LANDSCAPE BOND RELEASE This memo is in response to May 19, 1997 field inspection for landscape bond release, at Canada Hills, parcel A. The landscape deficiencies are as follows: 1) At the rear of Model Home, in common area B the Decomposed Granite Path is to be removed, from the rear gate of the model home where it connects with the approved pedestrian path. 2) At south end of recreation area (lot 50), the trenching from wall construction needs to be filled and blend in with area and hydroseed. 3) South end of recreation decomposed granite path (approx.lots 51 & 52), that area tends to puddle, becoming slippery and a possible safety hazard, please build up and have natural drainage area where it crossed the path drain under (by pipes) the path. 4) General weed maintenance, construction trash and debris clean-up. At your earliest convenience, please call and make an appointment for reinspection of area. Prior to Final release of landscape bond, the listed items need to be corrected and inspected by the Planning and Zoning Department. If you have any question on these matter, please contact thisoffice at 797-9797. Coscan Arizona, Inc. • 7400 North Oracle Road COSCAN Suite 343 Tucson, Arizona 85704 (520) 575-8111 Telephone (520) 297-6269 Telefax September 12, 1996 fa-CURD Ms. Mary Jo Peterson `SE .3 1996- Assurances Coordinator Town'of Town of Oro Valley Oro Valley 11000 N. LaCanada Drive Oro Valley, AZ 85737 Re: Performance Bond No. B2482470/111162 - Catalina at Canada Hills. Dear Ms. Peterson: Enclosed please find the rider for Bond#B2482470/111162 acknowledging the reduction from $88,000 to $3500. If you should have any questions please call me at (520)575-8111 . Sincerely, Terry Hefirichs /th enclosures \) LEY A Q P ,r •'~t1' O,z. �,iw TOWN OF ORO VALLEY t. :zr: 11000 N. LA CANADA DRIVE .q g�: 4_'f ; ›- ORO VALLEY, ARIZONA 85737 _A vr-i. 0:42,19" Administrative Offices(520)297-2591 Fax(520)297-0428 �+ 1 4_, J. P0UNDED RECEIVED MAY P May 3, 1996 Michael Cerepanya Coscan Arizona, Inc. 7400 N. Oracle Road, Ste 343 Tucson, AZ 85704 RE: Performance Bond: B2482470/111162 Bond Amount: $88,000.00 Dear Mr. Cerepanya, The Zoning Inspector for the Town of Oro Valley has authorized the reduction of the amount of the performance bond for landscaping of Catalina at Canada Hills from $88,000 to $3,500. Sincerely, '.2ia"-z ' -//116_,7 Mary Jo Peterson Assurances Coordinator /,.... -1 ry- G J RELIANCE SURETY COMPANY UNITED PACIFIC INSURANCE COMPANY ' aV Reliance Philadelphia,Pennsylvania Philadelphia,Pennsylvania 181 RELIANCE INSURANCE COMPANY RELIANCE NATIONAL INDEMNITY COMPANY Philadelphia,Pennsylvania Philadelphia,Pennsylvania RIDER To be attached to and form a part of Type of Bond: PERFORMANCE BOND Bond No. B2482470/111162 executed byCOSCAN ARIZONA, INC. , as Principal, and by RELIANCE INSURANCE COMPANY, as Surety, in favor of TOWN OF ORO VALLEY and dated MAY 30 , 1995 In consideration of the premium charged for the attached bond, it is hereby agreed to change: THE AMOUNT OF THE BOND -- From: EIGHTY EIGHT THOUSAND AND 00/100 ($88 ,000 .00) DOLLARS To. THREE THOUSAND FIVE HUNDRED AND 00/100 ($3 ,500.00) DOLLRS The attached bond shall be subject to all its agreements, limitations and conditions except as herein expressly modified. This rider is effective MAY 3 , 1996 Signed and Sealed SEPTEMBER 3 , 1996 COSCAN ARIZONA, INC. Principal By: -` _,C-- 9— r o (t L-r-- Title RELIANCE INSURANCE COMPANY By: N-- r"'-� � �`�� - -c � THERESA FERMANICH, Attorney- --Fact RIDER ACCEPTED (Please sign duplicate of this Rider and return to Surety) By: Not Necessary Date BD-1468 4/94 THE FACE.OF THIS DOCUMENT HAS-A COLORED BACKGROUND:.ON WHITE PAP RELIANCE SURETY COMPANY RELIANCE INSURANCE COMPANY UNITED PACIFIC INSURANCE COMPANY RELIANCE NATIONAL INDEMNITY COMPANY ADMINISTRATIVE OFFICE, PHILADELPHIA, PENNSYLVANIA POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, that RELIANCE SURETY COMPANY is a corporation duly organized under the laws of the State of Del- aware, and that RELIANCE INSURANCE COMPANY and UNITED PACIFIC INSURANCE COMPANY, are corporations duly organized under the laws of the Commonwealth of Pennsylvania and that RELIANCE NATIONAL INDEMNITY COMPANY is a corporation duly organized under the laws of the State of-Wisconsin (herein collectively called "the Companies") and that the Companies by virtue of signature and seals do hereby make, constitute and appoint Theresa Fermanich, of San Francisco, California their true and lawful Attorneys)-in-Fact, to make, execute, seal and deliver for and on their behalf, and as their act and deed any and all bonds and undertakings of suretyship and to bind the Companies thereby as fully and to the same extent as if such bonds and undertakings and other writings obligatory in the nature thereof were signed by an Executive Officer of the Companies and sealed- and attested by one other of such officers, and hereby ratifies and confirms all that their said Attorneys)-in-Fact may do in pursuance hereof. This Power of Attorney is granted under and by the authority of Article VII of the By-Laws of RELIANCE SURETY COMPANY, RELIANCE INSURANCE COMPANY, UNITED PACIFIC INSURANCE COMPANY, and RELIANCE NATIONAL INDEMNITY COMPANY which provisions are now in full force and effect,;reading as follows: ARTICLE VII-EXECUTION OF BONDS AND UNDERTAKINGS I i I I 1. The Board of Directors,the President.the Chairman of the Board,a Senior Vice President,any Vice President er Assistant Vice President or other officer designated by the Board of Directors shall have power and authority to(a)appoint Attorneys)-in-Fact and to authorize them to execute on behalf of the Company,bonds and undertakings,recognizances,contracts of indemnity and other writings obligatory in the nature thereof,and lb)to rcn-iove any suci1 Attorne.(sl-,n-Fact at any time and revoke the power and autnority given to tnem. 2. Attorney(s)-in-Fact shall have power and authority,subject to the terms and limitations of the Power of Attorney issued to them, to execute deliver on behalf of the Company,bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof. The corporate seal is not necessary for the validity of any bonds and undertakings, recognizances,contracts of indemnity and other writings obligatory in the nature thereof. 3. Attorney(s)-in-Fact snail have power and authority to execute affidavits required to be attached to bonds,recognizances, contracts of indemnity or other conditional or obligatory undertakings and they shall also have power and authority to certify the financial statement of the Company and to copies of the By-Laws of the Company or any article or section thereof. I j This Power of Attorney is signed and sealed by facsimile under and by authority of the following resolution adopted by the Executive and Finance Committees of the Boards of Directors of Reliance Insurance Company, United Pacific Insurance Company and Reliance National Indemnity Company by Unanimous Consent dated as of February 28, 1994 and by the Executive and Financial Committee of the Board of Directors of Reliance Surety Company by Unanimous Consent dated as of March 31,1994. i I "Resolved that the signatures of such directors and officers and the seal of the Company may be affixed to any such Power of Attorney or any certificates relating thereto by facsimile,and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and any such Power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company, in the future with respect to any bond or undertaking to which it is attached." IN WITNESS WHEREOF, the Companies have caused these presents to be signed and their corporate seals to be hereto affixed, this November 14, 1995. RELIANCE SURETY COMPANY RELIANCE INSURANCE COMMPA\Y UNITED PACIFIC INSURANCE COMPANY f ` r ` _ '� *•�,#,1J �,- { RELIANCE NATIONAL INDEMNITY COMP.A\Y A,:\ °ElAimiA ♦ 'G i ;va:a►;tilyai • STATE OF Washington } COUNTY OF King } ss. On this, November 14, 1995. before me. Janet Blankley, personally appeared Lawrence W. r a.lstrom, who ackno,Iorioed himself to be the Senior Vice President of the Reliance Surety Company, and the Vice President of Reliance Insurance Company, United Pacific Insurance Company, and Reliance National Indemnity Company and that as such, being authorized to do so, executed the foregoing instrument for the purpose therein contained by signing the name of the corporation by himself as its dul ed officer. In witness whereof, I hereunto set my hand and official seal. �.' t�, •*' • •÷ 1 : I _ _ ..' t 2-M-8 7 :?l�c► Notary ublic in and for the State of Washington °F WASH; Residing at Puyallup I, Robyn Assistant Secretary of RELIANCE SURETY COMPANY, RELIANCE INSURANCE COMPANY, UNITED PACIFIC INSURANCE COMP- ANY and-RELIANCE NATIONAL INDEMNITY COMPANY do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which is still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 3rd day of September 19 96 Assistant Secretary • r; a or:A\ /0-0';;;,', stul '4EAL THE BACK OF THIS DOCUMENT CONTAINS AN ARTIFICIAL.WATERMARK-HOLD AT AN ANGLE TO VIEW ram_ PERFORMANCE BOND Bond No. B2482470/111162 Premium: $1,650.00 KNOW ALL MEN BY THESE PRESENTS: That we, COSCAN ARIZONA, INC., hereinafter called Principal, and RELIANCE INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Pennsylvania and authorized to transact business in the State of Arizona, hereinafter called Surety, as Surety are held and firmly bound unto TOWN OF ORO VALLEY, hereinafter called Obligee, in the penal sum of Eighty Eight Thousand and No/100 ($88,000.00), Dollars good and lawful money of the United States of America, for the payment of which, well and truly to be made, we bind ourselves, our heirs, administrators, executors, successors, and assigns,jointly and severally, firmly by these presents. SIGNED. SEALED AND DATED THIS 30th day of May, 1995. WHEREAS the above-bound Principal has entered into a certain permit with the above named Obligee for the purpose of restoring land to its natural state as described as follows: Landscaping for Catalina of Canada Hills in the event the development or subdivision is abandoned as specified in Section 4-902 of the Town of Oro Valley Codes. NOW, THEREFORE, the condition of the above obligation is such, that if Principal shall well and truly perform its obligations under this Permit ending until released and faithfully observe and honestly comply with such Permit as requires in the execution of this bond, then this obligation shall become void and of no effect, otherwise to be and remain in full force and virtue. COSCAN ARIZONA, INC. RELIANCE INSURANCE COMPANY Principal Surety BY: B . Theresa Fermanich Countersigned Resident Agent Attorney-in-Fact State of Arizona BY: craN-a-- N\P-PS a_ SaraLynn Nellis, c/o Sedgwick James of Az, Inc. 940 N. Finance Center Dr., Suite 140 Phoenix, AZ 85710 RELIANCE INSURANCE COMPANY • HEAD OFFICE, PHILADELPHIA, PENNSYLVANIA POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, That the RELIANCE INSURANCE COMPANY, a corporation duly organized under the laws of the State of Pennsylvania, does hereby make, constitute and appoint Theresa Fermanich, individually, of San Francisco, California, its true and lawful Attorney(s)-in-Fact, to make, execute, seal and deliver for and on its behalf, and as its act and deed any and all bonds and undertakings of suretyship and to bind the RELIANCE INSURANCE COMPANY thereby as fully and to the same extent as if such bonds and undertakings and other writings obligatory in the nature thereof were signed by an Executive Officer of the RELIANCE INSURANCE COMPANY and sealed and attested by one other of such officers, and hereby ratifies and confirms all that its said Attorney(s)-in-Fact may do in pursuance hereof. This Power of Attorney is granted under and by authority of Article VII of the By-Laws of RELIANCE INSURANCE COMPANY which became effective September 7, 1978, which provisions are now in full force and effect, reading as follows: ARTICLE VII - EXECUTION OF BONDS AND UNDERTAKING 1. The Board of Directors, the President, the Chairman of the Board, any Senior Vice President, any Vice President or Assistant Vice President or other officer designated by the Board of Directors shall have power and authority to (a) appoint Attorney(s)-in-Fact and to authorize them to execute on behalf of the Company, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof, and (b) to remove any such Attorneys)-in-Fact at any time and revoke the power and authority given to them. 2. Attorney(s)-in-Fact shall have power and authority, subject to the terms and limitations of the Power of Attorney issued to them, to execute and deliver on behalf of the Company, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof. The corporate seal is not necessary for the validity of any bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof. 3. Attorney(s)-in-Fact shall have power and authority to execute affidavits required to be attached to bonds, recognizances, contracts of indemnity or other conditional or obligatory undertakings and they shall also have power and authority to certify the financial statement of the Company and to copies of the By-Laws of the Company or any article or section thereof. This Power of Attorney is signed and sealed by facsimile under and by authority of the following Resolution adopted by the Board of Directors of RELIANCE INSURANCE COMPANY at a meeting held on the 5th day of June, 1979, at which a quorum was present, and said Resolution has not been amended or repealed: "Resolved that the signatures of such directors and officers and the seal of the Company may be affixed to any such Power of Attorney or any certificates relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and any such Power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company, in the future with respect to any bond or undertaking to which it is attached." IN WITNESS WHEREOF, the RELIANCE INSURANCE COMPANY has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed, this 13 day of October, 1993 RELIANCE INSURANCE COMPANY "(m,. Vice President STATE OF Washington co COUNTY OF King }ss. N't4ri +� o11 On this 13 day of October, 1993 personally appeared Lawrence W. Carlstrom to me known to be the Vice President of the RELIANCE INSUR,';•'+rw:1"1".-y , and acknowledged that he executed and attested the foregoing instrument and affixed the seal of said corpor.,/ •,itt• t Article VII, Section 1, 2, and 3 of the By-Laws of said Company,and the Resolution, set forth therein, are still in/.e• • /11$9°"te4t.r9)2z;\03 NOTARYKi/ _ PUBIC o �� It �F &16-97 C~��, Res d n at Notary Public Sumner for State of Washington osi I, Robyn Layng, Assistant Secretary of the RELIANCE INSUR' ,,,S , do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney executed by said RELIANCE I' : E COMPANY, which is still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affix-. -. .. . • Company this 30th day of May 19 95 44, • 0 `A Assistant Secretary BDR-1431 Ed.3/93 r . • • ACKNOWLEDGMENT BY SURETY STATE OF CALIFORNIA ) County of San Francisco ) • On May 30 , 1995 • before me, Katsuko Takata, Notary Public , personally appeared Theresa Fermanich, Attorney-in-Fact for Reliance Insurance Company • personally known to me or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. �f} c, �( OFFICIAL SEAL `� a[�a Fs� 1\� .. Signatufe � , t�� (Seal) `' - ?','►JKn TAKATA a .. ; NOTARY PUBLIC- CALIFORNIA `� San Francisco County \ -P• My Commission Expires July 25,1995 • • Coscan Arizona, Inc. • 7400 North Oracle Road COSCAN Suite 343 Tucson, Arizona 85704 (520) 575-8111 Telephone • (520) 297-6269 Telefax September 12, 1996 ��LCEIVE� Ms. Mary Jo Peterson 8EPii.3 1996. Assurances Coordinator Town of Town of Oro Valley Oro Valley 11000 N. LaCanada Drive Oro Valley, AZ 85737 Re: Performance Bond No. B2482470/111162 - Catalina at Canada Hills. Dear Ms. Peterson: Enclosed please find the rider for Bond#B2482470/1 1 1 162 acknowledging the reduction from $88,000 to $3500. If you should have any questions please call me at (520)575-8111 . Sincerely, (7"1"-�� 6-6,(e4iike;42* Terry Hefirichs /th enclosures I i bj \vim DAN WINTERS 2 9 6-4 904 ID : MAY 22 '95 14 : 21 Na .002 P .01 Dan Winters & Associates, Inc. — — --- _ 7925•A North Oracle Road#186 Tucson,Arizona 85704 (602)293-4904• Fax(602)293-4952 May 22, 1995 Mr. Michael Cerepanya Coscan Arizona, Inc. 7400 N. Oracle Road, Suite 343 Tucson, Arizona 85704 VIA FAX: 297.6269 RE: Parcel A Hydroseed Dear Mr. Cerepanya, We propose to furnis h h labor and materials to provide hydroseed to the Parcel A disturbed areas as follows: 24,700 square feet @ $0.05 $ 1,235.00 This is per yourp landscapeplanbyMc Gann and Associates. Please contact me at 293-4904 if you have any questions. 3 Si a ly, c . Charles. , W. Allen v/ tl MAY-22-1995 14:51 P.01 RECEIVED NOV 1 4 1994 McGann & Associates Landscape Architects and Planners 6814 North Oracle Road, Suite 210 Tucson, Arizona 85704 (602)297-9540 Fax: (602)297-9545 November 10, 1994 Mr. Michael Cerepanya Coscan Arizona 7400 North Oracle Road, Suite 343 Tucson, Arizona 85704 Ref: Canada Hills Parcel A Landscape and irrigation Improvements Dear Mike, Attached in the order-of-magnitude cost estimate for the construction of landscape, irrigation, and related improvements that you had previously requested. I have included costs for: tree salvage, cacti salvage, new trees and shrubs, sod, seeding, decomposed granite, irrigation system, picnic tables, par course stations, and entry walls. For some of the items, such as the irrigation system for the turf grass retention basin, there was no design and consequently we did not have specific quantities. For these items we have included an allowance or have added a square foot cost. Mike, please let me know if you have any questions related to this estimate. erely, 144*.it, onald K. McGinn McGann & As ciates Inc. X.c. File 93-207 a Canada Hills - Parcel A - Order-of-Magnitude Cost Estimate for Landscape and Irrigation Improvements (November 10, 1994) Item Unit Quantity Unit Cost Extension Subtotal Planting 0.00 Salvaged Tree EA 45 800.00 36,000.00 Salvaged Cacti EA 24 85.00 2,040.00 Tree - 24" Box EA 0 275.00 0.00 Tree - 15 Gal. EA 19 75.00 1,425.00 Shrub - 5 Gal. EA 86 30.00 2,580.00 Ground Cover - 1 Gal EA 28 20.00 560.00 Turf Grass (Sod) SF 9,100 0.45 4,095.00 Native Plant Hydroseeding SF 21,000 0.10 2,100.00 0.00 48,800.00 Irrigation 0.00 Water Meter (+/- 1") EA 2 700.00 1,400.00 Backflow Preventer EA 2 450.00 900.00 Controller EA 2 400.00 800.00 Electric to Controller NA 0 0.00 By Others Remote Control Valves EA 4 150.00 600.00 Mainline Pipe 2" PVC LF 150 2.00 300.00 Mainline Pipe 1" PVC LF 200 1.00 200.00 Lateral Line Pipe 3/4" LF 880 0.75 660.00 Poly Tubing LF 950 0.25 237.50 Emitters EA 642 1.00 642.00 Allowance - Turf Irrigation in SF 9,100 0.30 2,730.00 Retention Basin Allowance - Temporary SF 21,000 0.15 3,150.00 Irrigation - Seeded Areas Sleeves - 4' PVC LF 100 4.00 400.00 0.00 12,019.50 0.00 Miscellaneous 0.00 Decomposed Granite Path SF 6,800 0.35 2,380.00 Decomposed Granite SF 5,000 0.30 1,500.00 (Entries) Concrete Slabs SF 2,100 3.00 6,300.00 Picnic Tables Picnic Tables EA 3 800.00 2,400.00 Par-Course Stations EA 5 400.00 2,000.00 Entry Walls SF 360 10.00 3,600.00 Misc. Improvements LS 1 1,000.00 1,000.00 0.00 19,180.00 0.00 0.00 0.00 0.00 0.00 0.00 Summary: Subtotal: $ 79,999.50 Rounded- $ 80,000.00 Contingency at 10% $ 8,000.00 Total: Order-of-Magnitude Estimate $ 88,000.00 C^. ANN RODR I GUEZ q RECORDER DOCKET: 10115 RECORDED BY: G I M tr-;;: i) PAGE: 125 DEPUTY RECORDER '' � L- NO. OF 11) PAGES: 2721 RD34 \ /• SEQUENCE: 95127011 J I�M1 T I .14 O�� 00/25/95 TOWN OF ORO VALLEY RASSTR i 8:01 :t=0 j 11000 N LA CANADA *IC MAIL_ ORO VALLEY AZ 05737 AMOUNT PAID $ 10.00 f"Gf Ss1°) RELEASE OF SUBDIVISION ASSURANCE 'TRUST �6 1 \99 niet04 SUBDIVISION NAME: Catalina at Canada Hills, Lots 1 through 61 and Cora a Ar as A and B OV12-94-3 Aov" e ( ) LOT NUMBER(S) LOTS 1 through 61 and Common Areas A & B TRUST COMPANY : Old Republic Title Insurance Agency, Inc. `TRUST NUMBER 10,786 AGREEMENT DATE September 7, 1994 RECORDED AT : Dkt. 10,061, page 725 APPROVAL OF RELEASE AND REPLACEMENT OF SUBDIVISION IMPROVEMENT ASSURANCES: Town Engineer WHEREAS, as referenced above, the Town of Oro Valley and the Trust Company have entered into an Agreement which provides that the Trust Company shall 'not transfer, lease, sell or convey the property contained in the Subdivision without first obtaining the written approval of the Town of Oro Valley; and WHEREAS, the Agreement was made pursuant to ARS Section 11-0806.01 in order to provide for improvements to be made upon the real property subject to the Subdivision Plat; and, WHEREAS, such substitute assurance has been secured to assure the completion of subdivision improvements in accordance with the Town of Oro Valley specifications for the lots listed above; IT IS CERTIFIED HEREBY that the assurances being held under this Trust may now be releases: for those above-referenced lots. TOWN CLERK TOWN OF ORO VALT EY BY L7v. Date: August 2, 1995 STATE OF ARIZONA ) ss. COUNTY OF PIMA SUBSCRIBED AND SWORN to before me by Kathryn E. Cuvelier as the Town Clerk of the Town of Oro Valley this 22nd day of August ,1995. 4aa:YY14t(J.2_ Not Public My Commission Tres: e2 !94-C1 10115 125 F TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: August 16, 1995 TO: HONORABLE MAYOR & COUNCIL FROM: Joanne Homer Town Engineer SUBJECT: !Request for Amendment of Assurance Agreement for Completion of q g Subdivision Improvements, OV12-94-3, Catalina at Canada Hills, Lots 1-61, and Common Areas A&B. SUMMARY: Old Republic Title Insurance Agency, Inc. has requested an Amendment of Assurance Agreement for Completion of Subdivision Improvements under Trust #10,786. They ask that the name of the beneficiary be changed from Carma Financial Corporation to Coscan Arizona, Inc. ATTACHMENTS: Substitute Assurance Agreement for Completion of Subdivision Improvements, including Exhibit "A" and Trust Agreement No. RECOMMENDATIONS: Staff has no objection to the amendment of the assurance agreement. SUGGESTED MOTION: The Town Council may wish to consider one of the following motions: I move to approve OV 12-94-3, Catalina at Canada Hills, Lots 1-61 and Common Areas A&B, Substitute Assurance Agreement for Completion of Subdivision Improvements. or I move to deny OV 12-94-3, Catalina at Canada Hills, Lots 1-61 and Common Areas A&B, Substitute Assurance Agreement for Completion of Subdivision Improvements. D r. ent Hea Town Man ger o_EY ,A, /, QO � O1- 67 --, TOWN OF ORO VALLEY 11000 N. LA CANADA DRIVE ORO VALLEY, ARIZONA 85737 4 ,? Administrative Offices(602)297-2591 Fax(602)297-0428 Dx POVNDEO�g� May 9, 1995 Rick Geiger Old Republic Title Agency 5255 E. Williams Circle, Suite 3000 Tucson, AZ 85711 RE: Canada Hills Parcel A (OV 12-94-03) Dear Rick: The Town Engineer will release Lot 61 from the Assurance Agreement held under Trust #10787 after the recordation of the plat and the dedication of the lot to the Town of Oro Valley. Sincerely, ,71 /972a' e A Mary Jo Peterson Assurances Coordinator 4' - .?Cf--K- V 07/20/1995 10:03 DEED AND AS$I ONMENT OF BENEFICIAL INTEREST Trust No : 10 , 786 KNOW ALL MEN BY THESE PRESENTS : That Carrea Financial Corporation, a Nevada corporation, hereinafter called Assignor , for and in consideration of the sum of $10 . 00 in hand paid, receipt of which is hereby acknowledged, does by these presents sell , convey, assign, transfer and Bet over unto Coscan Arizona, Inc. , an Arizona corporation, hereinafter called Assignee, all of his right , interest , powers, privileges and benefits created or reserved by that certain Trust Agreement dated April 24 , 1995 being Trust No . 10 ,786 in the records of the Trust Department of Old Republic Title Insurance Agency , Inc „, wherein said Assignor owns 100% of the beneficial interest . This Deed and Assignment of Beneficial Interest is given and accepted with the understanding and agreement that the Assignor herein and the Assignee herein hereby ratify, confirm, and approve all actions heretofore taken by the Trustee and all disbursements heretofore made by the Trustee and is given and accepted with the understanding and agreement that the interest and the property held under said Trust which is hereby conveyed a►nd assigned is subject to all terms and conditions of said Trust Agreement , including all supplements and amendments thereto and assignments thereof , and subject to all obligations and liabilities , under said Trust Agreement , heretofore accrued and hereafter arising under the terms thereof . The Assignee herein agrees to accept and be bound by all of the terms , conditions , stipulations and obligations thereof and Old Republic Title Insurance Agency, Inc . , Trustee, is authorized to substitute the Assignee herein in place of the Assignor under said Trust Agreement . Wherever the context of this instrument so requires , words used in the masculine gender include the feminine and neuter; the singular number includes the plural , and the plural the singular; the word person includes a corporation, company , partnership, or association, or society as well as a natural person. IN WITNESS WHEREOF the Assignor herein has hereunto set his hand and seal this 'l day of , 199s- ,• By By La(J,Par,--try Page 1 of 2 AUG-04-1995 10:29 P.02 07/20/1995 1):04 r .u,.i ASSIGNOR STATE of ARIZONA ) so County of Pima ) / /L This instrument was acknowledged before me this day of August q by 2 r , Notary Public My Commission Expires : 'L Xn6/ STATE of ARIZONA ) S3 County of Pima ) On this day of August , 19 95 , before me, the undersigned , a Notary Public, personally appeared David Burris , who acknowledged hselfim to be the ice President of Carma Financial Corporation ___ , a corporation, and that he, as such officer being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself . In witness whereof Z hereunto t my hand a d o ficial seal . Li / -40_ Notary Public ' My Commission Expires: • / y/ ACCEPTANCE BY ASSIGNEE The foregoing Deed and Assignment of Beneficial Interest is hereby accepted and all of the terms and conditions are hereby approved, and the Assignee hereby agrees to be bound by and to comply with all of the obligations of the Beneficiary under said Trusvt No . 10,786. The correct mailing address of the Assignee is The TAX ID/SSN is 987T392r27 • • �...�. Dated this L -� day of Gtp f - , 19. Sy By Its : LALC-L-jt Its: _ TRUSTEE'S ENDORSEMENT The foregoing Deed and Assignment of Beneficial Interest is hereby accepted, as to form, and filed in the Trust Department of Old Republic Title Insurance Agency, Inc. this C/zY _ day of Rol c id 5 7_- , 19 By. st Officer NOTE: Trustee' s endorsement hereon shall be effective only after all assignment fees and other fees or expenses, currently due Trustee by the interest being assigned, have been paid in full . Page 2 of 2 AUG-04-1995 10=29 P.03 ! 1 When recorded, return to: Cheryl Himmelstein 3501 North Campbell Suite 102 Tucson, AZ 85719 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR CATALINA AT CANADA HILLS INDEX RECITALS 3 ARTICLE I (DEFINITIONS) 4 ARTICLE II (ASSOCIATION) 6 ARTICLE III (EXTERIOR MAINTENANCE) 10 ARTICLE IV (INSURANCE) 12 ARTICLE V (OWNERSHIP & USE OF COMMON AREA) 16 ARTICLE VI (COVENANTS FOR MAINTENANCE ASSESSMENTS) 18 ARTICLE VII (EASEMENTS AND COMMON WALLS) 26 ARTICLE VIII (ARCHITECTURAL CONTROL COMMITTEE) 29 ARTICLE IX (USES AND RESTRICTIONS) 31 ARTICLE X (GENERAL PROVISIONS) 37 3 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR CATALINA AT CANADA HILLS THIS DECLARATION is made this day of 1995 by Old Republic Title Agency as Trustee under Trust #10,786, hereinafter referred to as "Declarant. " WITNESSETH WHEREAS, Declarant is the Owner of certain real property in Pima County, Arizona, which is more particularly described as: Lots 1 through 61 and common areas A and B of a subdivision located in the town of Oro Valley, Arizona, as recorded in Book of Maps and Plats at Page thereof, in the Office of the Pima County, Arizona Recorder (hereinafter "Plat") . which real property shall hereinafter be referred to as the "Properties". WHEREAS, the Properties are included within the Canada Hills Master Community, and are subject to the "Declaration of Covenants, Conditions and Restrictions for Canada Hills, " recorded at Docket 8092 Page 894 et seq in the Pima County Arizona records, (hereinafter "Master CCR's") , and WHEREAS, Declarant and/or the Developer (as hereinafter defined) proposes to construct improvements upon the Properties (as hereinafter defined) , and to sell and convey the same, subject to the covenants, restrictions, uses, limitations, obligations, easements, equitable servitude, charges and liens hereafter set forth, each of which is for the benefit of the Properties and the subsequent owners thereof. NOW, THEREFORE, Declarant hereby declares that the Properties are and shall be held, conveyed, encumbered, leased and used subject to the following covenants, conditions, restrictions, uses, limitations, obligations, easements, equitable servitude, charges and liens (hereinafter collectively referred to as the "Restrictions") , all of which are for the purpose of enhancing and protecting the value o, desirability and attractiveness of the Properties. The Restrictions set forth herein shall run with the Properties, shall be binding upon all persons having or acquiring any interest therein, and shall inure to the benefit of, be binding upon and enforceable by all Owners, Declarant, the Association and their successors in interest. 4 No provision contained herein shall be construed to prevent or limit Declarant's or Developer's right to complete development of the Properties and construction or improvements thereon, nor Declarant's or Developer's right to maintain model homes, construction, sales or leasing offices, nearby parking areas or similar facilities on the Properties, nor Declarant's or Developer's right to post signs incidental to construction, sales or leasing, nor Declarant's or Developer's right to do anything that is reasonably necessary and proper for the full development of the Properties; and no provision contained herein shall be construed to limit or otherwise modify the Master CCR's. If there is a conflict between the Master CCR's and this document, the Master CCR's shall be given effect. This document is subordinate to the Master CCR's, the Development Guidelines, Articles, Bylaws and Association Rules, as set forth in Section 6.5 of the Master CCR's. ARTICLE I DEFINITIONS Unless the context otherwise specifies or requires, the following words and phrases when used herein shall have the meanings hereinafter assigned. Section 1. 1 "Articles" shall mean the Articles of Incorporation of the Association and amendments thereto which are or shall be filed in the Office of the Arizona Corporation Commission. Section 1.2 "Association" shall mean and refer to Catalina At Canada Hills Homeowners Association, an Arizona non- profit corporation, its successors and assigns; and shall not mean the Canada Hills Community Association. The Canada Hills Community Association shall be referred to herein as "Master Association" . Section 1. 3 "Board" shall mean the Board of Directors of the Association. Section 1.4 "By-Laws" shall mean the By-Laws of the Association, together with any amendments thereto. Section 1. 5 "Common Area" or "Common Areas" shall mean all real property and improvements thereon designated as Common Area on the Plat, owned and controlled by the Association for the common use and enjoyment of the Owners. Section 1. 6 "Declarant" shall mean Old Republic Title Agency, an Arizona corporation as Trustee under Trust #10,786 and its successors or assigns who have been designated in writing by Declarant as the successor to all or a portion of Declarant's rights hereunder and who own one or more Lots in the Properties. 5 • Section 1.7 "Declaration" shall mean and refer to this instrument and any amendment thereto or restatement thereof. Section 1.8 "Developer" shall mean Coscan Arizona, Inc. , an Arizona corporation and its successors or assigns, who have been designated in writing by Developer as a successor to all or a portion of the Developer's rights hereunder. The rights of the Developer hereunder may be assigned by written instrument. Section 1.9 "Drainage Easement" shall mean the drainage easements shown on the Plat or by separate recorded instruments. Section 1. 10 "Dwelling Unit" or "Unit" shall mean any improvements placed within the confines of any Lot. Section 1. 11 "First Mortgagee" shall mean the holder of any Mortgage under which the interest of any Owner of a Lot is encumbered and which mortgage represents a purchase money lien, for purchase of the unit, and has first and paramount priority (referred to herein as a First Mortgage) , subject only to the lien of general or ad valorem taxes and assessments and such other matters as are recognized in such First Mortgage as permitted exceptions. Section 1. 12 "Lot", unless otherwise indicated by the context, shall first mean and refer to any numbered parcel of real property within the Properties shown on the Plat, as may be amended, together with the Dwelling Unit, if any, thereon, and in the event of annexation shall include all additional lots annexed and shown on a plat for the annexed land. The term Lot shall also include any Lots combined to become a single lot, by Declarant, in which case the Lots so combined shall be considered one lot for all purposes, including voting and assessments. Section 1. 13 "Master CCR" shall mean the Declaration of Covenants, Conditions and Restrictions for Canada Hills recorded at Docket 8092 , Page 894, et seq. and all validly recorded Amendments thereto. Section 1. 14 "Member" shall mean and refer to every person and/or entity who holds membership in the Association pursuant to Section 2 . 1 hereof. Section 1. 15 "Mortgage" shall mean any mortgage, deed of trust or other security instrument by which a Lot or any part thereof is encumbered. Section 1. 16 "Owner" or "Homeowner" shall mean and refer to (1) the record Owner, whether one or more persons or entities, of equitable or beneficial title in fee simple (or legal title if same has merged) of any Lot, or (2) the purchaser of a Lot 6 under a recorded contract for the sale or real property as set forth in Arizona Revised Statutes Section 33-741 et seq. The foregoing does not include persons or entities who hold an interest in any Lot merely as security for the performance of an obligation, or a lessee or tenant of an Owner as defined above, or a purchaser or vendee under any executory contract of sale which has not been fully consummated with a deed to the purchaser recorded in the office of the County Recorder of Pima County, Arizona; and the foregoing does not include Declarant or Developer. Section 1. 17 "Person" shall mean a natural individual, corporation or other entity with the legal right to hold title to real property. Section 1. 18 "Plat" shall mean the plat of the real estate Properties subject to this Declaration recorded at Book Page of Maps and Plats in the office of the County Recorder of Pima County, Arizona, and any amendment thereto or resubdivision thereof. Section 1. 19 "Properties" shall mean and refer to the real property as shown on the Plat. Section 1.20 "Restrictions" shall mean the covenants, conditions, restrictions, uses, limitations, obligations, easements, equitable servitudes, charges and liens set forth in this Declaration. Section 1.21 "Rules" shall mean any and all rules adopted by the Board pursuant to the By-Laws. ARTICLE II ASSOCIATION Section 2 . 1 Membership in the Association. Each Owner of a Lot, by virtue of being an Owner, and Declarant shall automatically be a Member of the Association. Membership in the Association shall be appurtenant to each Lot owned and shall not be transferred, pledged, or alienated in any way, except upon the transfer of ownership to a Lot, and then only to the transferee thereof. Any transfer of ownership of a Lot shall operate automatically to transfer said membership to the new Owner thereof. Any attempted transfer of membership separate from the appurtenant Lot or Lots shall be void. Section 2 .2 Voting Rights and Classes of Membership. The Association shall have two classes of voting membership. Class A: Class A Members shall be all Owners other than Declarant and each Owner shall be entitled to one vote for each Lot owned. When more than one person holds any interest in any Lot, all such persons shall be Members. The vote for such Lot 7 shall be exercised as the Owners may determine, but in no event shall more than one (1) vote be cast with respect to any Lot owned by a Class A Member or Members. Class B: The Class B Members shall be Declarant, who shall be entitled to ten (10) votes for each Lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of the earliest of the following events: 1. Upon conveyance by Declarant of the last Lot owned by Declarant, or 2 . Upon any earlier Notice of Termination of Class B Membership, signed by Declarant in recordable form and delivered to the Board. Section 2 . 3 Purpose of Association. The Association is a non-profit corporation which will serve as the governing body for all Owners and Members for the protection, improvement, alteration, maintenance, repair, replacement, administration and operation of the Common Area, the assessment of expenses, payment of losses, disposition of casualty insurance proceeds, and other matters as provided in this Declaration, the Articles, the By-Laws, and the Rules. Section 2 .4 Rights and Responsibilities of Association. The Association, through the Board of Directors, unless specifically provided otherwise, shall have the right of enforcement of all of the provisions hereof. The Association shall be responsible for the proper and efficient management and operation of the Common Area and any other areas for which it is responsible under the terms of this Declaration or for which it has assumed responsibility, including: A. maintaining, operating, and rebuilding improvements on the Common Area; B. maintaining and landscaping common area and property owned or controlled by the Association, including paths, Easements and other easement rights, if any; C. operating, maintaining, rebuilding and insuring improvements originally constructed by Declarant or Developer or later constructed by the Association on the Common Area; D. paying real estate taxes, assessments and other charges on the Common Area; E. insuring all improvements which the Association is obligated to maintain against damage by casualty with such 8 companies and in such limits as provided herein and as the Association deems appropriate; F. hiring, firing, supervising and paying employees and independent contractors including, but not limited to, workmen, landscapers, attorneys, accountants, architects and contractors to carry out the obligations set forth herein; G. maintaining such liability insurance as the Association deems necessary to protect the members and the Board of Directors of the Association from any liability caused by occurrences or happenings on or about the Common Area; H. maintaining workmen's compensation insurance for the employees of the Association; I. purchasing all goods, supplies, labor and services reasonably necessary for the performance of the obligations set forth herein; J. establishing and maintaining such adequate cash reserves as the Association may, in its sole and absolute discretion, deem reasonably necessary for the periodic maintenance, repair and replacement of the improvements which it is responsible to maintain; K. providing for and payment of all utility services for the Common Area if deemed appropriate by the Board; L. entering into such agreements and taking such actions as are reasonably necessary and convenient for the accomplishment of the obligations set forth above and the operation and maintenance of the Properties as a first-class, residential development; M. granting licenses, easements and other agreements for the use of Common Area; N. maintaining any personal property owned by the Association; and 0. such other matters as are provided for in this Declaration, the Articles of Incorporation, and the By-Laws. Section 2 .5 Articles and By-Laws. The manner in which the Association holds meetings and attends to other corporate formalities shall be controlled by the provisions of the By-Laws, the Articles and this Declaration, which Declaration shall control in the event of conflict. Section 2 . 6 Board of Directors. The Board of Directors of the Association shall be elected by a majority vote of 9 the total votes cast by both classes of the membership at a meeting attended by a quorum as called for by the By-Laws, except that so long as Declarant retains the Class B membership, Declarant reserves the exclusive right, to appoint the officers and directors of the Association and may do so without calling a meeting of members. Section 2 .7 Rules and Regulations of the Association. The Board shall be empowered to adopt, amend or repeal such rules and regulations as it deems reasonable and appropriate (collectively the "Rules") , which shall be binding upon all persons subject to this Declaration and shall govern the use and/or occupancy of the Properties. The Rules may include the establishment of a system of fines and penalties for violation of the Rules, which shall be levied only after the offending Owner has been given notice and an opportunity to be heard in accordance with the terms of the Bylaws of the Association. The Rules shall govern such matters as the Board deems to be in furtherance of the purposes of the Association, including, without limitation, the use of the Common Area. The Rules may be amended at any special or regular meeting of the Board. The Rules are deemed incorporated herein by this reference and shall have the same force and effect as if they were set forth in and were part of this Declaration and shall be binding upon all persons having any interest in, or making any use of, any part of the Properties, whether or not copies of the Rules are actually received by such persons. References to the covenants and restrictions contained herein shall be deemed to refer also to the Rules (except to the extent the rules are in conflict herewith) . The Rules, as adopted, amended or repealed, shall be available for review at the principal office of the Association to each person reasonably entitled thereto. It shall be the responsibility of each person subject to the Rules to review and keep abreast of any changes in the provisions thereof. In the event of any conflict between any provision of the Rules and any provisions of this Declaration, or the Articles or By-Laws, the provisions of the Rules shall be deemed to be superseded by the provisions of this Declaration, the Articles or ByLaws to the extent of any such conflict. Section 2 .8 Non-Liability of Officials. To the fullest extent permitted by law, neither Declarant, Developer, the Board, nor any committees of the Association nor any member thereof, nor any officers, directors or employees of the Declarant, Developer or of the Association, shall be liable to any Owner or to the Association or any other person for any damage, loss or prejudice suffered or claimed on account of any decision, course of action, act, inaction, omission, error, negligence or the like made in good faith and which Declarant, Developer, the Board or such committees or officers reasonably believed to be within the scope of their respective duties or rights. 10 Section 2 . 9 Managing Agent. All powers, duties and rights of the Association or the Board, as provided by law and herein, may be delegated to a managing agent under a management agreement; provided, however, that no such delegation shall relieve the Association of its obligation to perform any such delegated duty. Any agreement for professional management shall not exceed a term of one year, which term may be renewed by agreement of the parties for successive one-year periods. Any such agreement shall provide for termination by either party with or without cause and without payment of a termination fee upon ninety (90) days' written notice; provided, however, that the Association may terminate the agreement for cause upon thirty (30) days written notice. The Association is expressly authorized to contract with Declarant or Developer or an affiliate of Declarant or Developer, to provide management services or to perform other duties of the Association or the Board. Section 2 . 10 Disputes. In the event of any dispute or disagreement between any Owners or any other persons subject to this Declaration relating to the Properties or any question of interpretation or application of the provisions of this Declaration, the Articles, By-Laws or Rules, this Declaration shall control. Section 2 . 11 Records and Accounting. The Association shall keep, or cause to be kept, true and correct books and records of account at the sole cost and expense of the Association in accordance with generally accepted accounting principles. Such books and records, together with current copies of this Declaration, the Articles, By-Laws and Rules shall be available for inspection by all Owners and First Mortgagees of record at reasonable times during regular business hours. ARTICLE III EXTERIOR MAINTENANCE Section 3 . 1 Exterior Maintenance, Repair, Up-Keep and Repainting of Lots and Improvements Thereon. A. Dwelling Units. Except as otherwise specifically provided herein, maintenance, repair, upkeep and repainting of Dwelling Units, including all other improvements on a Lot, shall be the sole responsibility of each Owner. B. Walls. Except as otherwise provided herein, each Owner shall maintain, repair and repaint (if applicable) , the interior and exterior sides of any walls or fences appurtenant to his Lot, except that if such a wall or fence is a common wall or fence, an Owner shall be required to repair and repaint only that portion of the wall or fence exclusively used by that Owner. 11 • C. Plumbing. Each Owner shall be responsible for sewer blockage, repair, etc. of all Dwelling Unit plumbing as well as the house connection line from the Dwelling Unit to its connection point in the main collection sewer line in the street. D. Exterior Lighting. Each Owner shall be responsible for the maintenance and repair, including replacement of light bulbs, of all exterior lighting fixtures located within the Owner's Dwelling Unit, or in the Common Area, provided such lighting in the Common Area is metered to the Owner's Dwelling Unit. E. Failure to Maintain. All maintenance, repair and repainting of a Dwelling Unit and other improvements of a Lot shall be undertaken in a manner consistent with the Rules and with such frequency as shall keep each Owner's Lot in an attractive, well-kept and maintained condition in conformity with the Master CCR's and the Rules. In the even any Owner fails to fulfill his of her obligation under this Section, the Association, after approval of two-thirds (2/3) vote of the Board of Directors, shall have the right through its agents and employees, to enter upon the subject property, and to repair, maintain and restore the Lot, including the perimeter yard walls, or fences and any other improvements. The cost of such exterior maintenance shall be added to and become part of the assessment to which such Lot is subject. The Board shall have the right to determine whether or not a Lot is in need of maintenance, repair and upkeep in order to conform to the standards of the Rules and the general neighborhood of the Properties and the Board shall use a reasonably high standard to determine whether such maintenance, repair and upkeep is required so that the Lots as a whole will reflect a high pride of ownership. F. Maintenance of Perimeter Wall and Common Area Signs and Landscaping. The Association shall be responsible for maintaining and repairing the Landscaping and signs and any perimeter wall surrounding the Properties shown on the Plat, but specifically excluding any part or side of a perimeter wall which borders a Lot, or which serves any Lot and does not also face and border Common Area. G. Easement for Maintenance. Each Owner or his authorized agent, in order to conduct such maintenance, repair or repainting, shall have the right of entry at reasonable times upon Lots adjacent to such Owner's Lot, provided reasonable notice of such entry is first given by such Owner to the Owner of the involved adjacent Lot. The Association shall have a right of entry and an easement upon each Lot for the purpose of fulfilling its responsibilities hereunder. Section 3 .2 Maintenance of Common Area. The Association shall be responsible for maintenance, repair and upkeep of any Common Area improvements including, but not limited to, non- 12 public streets, curb line sidewalks and Common Area sidewalks, ' landscaping, common trash/garbage collection areas, and parking areas, if any, constructed on the Common Areas. Section 3 . 3 Modifications to Common Area . Notwithstanding any other provision hereof, the Association shall not make or permit any changes, repairs, or modifications to the Common Area, or install or construct any improvements thereon that would conflict with the re-zoning conditions imposed by the City of Oro Valley pursuant to approval of the Plat, or otherwise made known in the records of the Board. ARTICLE IV INSURANCE Section 4. 1 Insurance Requirements. The Association shall purchase and maintain at all times the following types of insurance, but only to the extent reasonably available and reasonably priced: A. Commercial General Liability and Property Insurance. Commercial general liability insurance covering bodily injury and property damage liability insurance covering all Common Area maintained by the Association, if any, and all other areas under the jurisdiction or control of the Association, excluding the Lots and all improvements thereon. Such insurance policy or policies shall contain, if available, a "severability of interest" clause or endorsement which shall preclude the insurer from denying the claim of an Owner because of negligent acts of the Association or of any other Owners. The scope of coverage of such policy or policies must include all other coverage in the kinds and amounts commonly required by private institutional mortgage investors for projects similar in construction, location and use to the Properties. Coverage shall be for at least one million dollars ($1, 000, 000. 00) combined single limit. Such coverage shall include, without limitation, legal liability of the insured for property damage, bodily injuries, and deaths of persons in connection with the operation, maintenance, or use of the Common Area maintained by the Association; legal liability arising out of lawsuits related to employment contracts of the Association; and protection against liability for non-owned and hired automobiles; such coverage may also include, if applicable, garagekeeper's liability, liability for property of others, host liquor liability, water damage liability, contractual liability, workmen's compensation insurance for employees of the Association, and such other risks as shall customarily be covered with respect to projects similar in construction, location and use. 13 • B. Insurance of Common Area. Fire and other hazard insurance covering improvements constructed on the Common Area. Such policy or policies shall consist, at a minimum, of a multi- peril type policy covering the subject improvements, providing, as a minimum, fire and extended coverage and all other coverage in the kinds and amounts commonly required by private institutional mortgage lenders in Tucson, Arizona. Such policies of property insurance shall contain a "Replacement Cost Endorsement" providing that any claim shall be settled on a full replacement cost basis without deduction for depreciation, an "Inflation Guard Endorsement" and an "Agreed Amount Endorsement, " if possible. The Association shall also purchase a "Demolition Endorsement", and "Increased Cost of Construction Endorsement", a "Contingent Liability from Operation of Building Laws Endorsement" or the equivalent, and coverage on personal property owned by the Association. If the Common Area or any portion thereof is located within an area identified by the Federal Emergency Management Agency as having special flood hazards, and flood insurance coverage or improvements on the Common Area has been made available under the National Flood Insurance Program, then such a policy of flood insurance shall, if deemed necessary by the Board, be obtained on the Common Area in an amount at least equal to the lesser of: 1. the maximum coverage available under the National Flood Insurance Program for all buildings and other insurable property located within a designated flood hazard area; or 2 . one hundred percent (100%) of current replacement cost of all buildings and other insurable property located within a designated flood hazard area. C. Worker' s Compensation Insurance. Worker's Compensation insurance to the extent necessary to comply with any applicable laws. D. Fidelity Insurance. Fidelity coverage against dishonest acts on the part of directors, officers, managers, trustees, employees or volunteers responsible for handling funds belonging to or administered by the Association. Such fidelity bonds or insurance shall name the Association as the named insured and shall be written in an amount sufficient to provide protection, that is, in no event, less than one and one-half times the insured' s estimated annual operating expenses and reserves, and provide for at least thirty (30) days notice to the Association before cancellation or substantial modification thereof. In connection with such coverage, an appropriate endorsement to the 14 policy to cover any persons who serve without compensation shall be added, if the policy would not otherwise cover volunteers. E. Exceptions. The foregoing insurance and endorsements shall be maintained only to the extent available and reasonably priced and, without limitation, the Board of Directors may elect to dispense with certain endorsements if, in the discretion of the Board of Directors, it is determined that the cost of such endorsements is excessive or the coverage not reasonably available. Section 4 .2 Waiver of Subrogation: Claims Against Declarant, etc. Every policy of insurance obtained by the Association shall contain an express waiver, if available, of any and all rights of subrogation against Declarant, Developer, the Board and such other persons or entities affiliated with the Association such as a manager and its representatives, members and employees and a provision, if available, preventing any cancellation or modification thereof, except upon at least thirty (30) days' written notice to the insured. Liability insurance hereinabove specified shall name as separately protected insured Declarant, Developer, the Association, the Board and such other persons or entities affiliated with the Association such as a manager and its representatives, members and employees as their interest may appear with respect to any liability arising out of the maintenance or use of any insured property. To the extent that each such policy will not be voided or impaired thereby, the Association hereby waives and releases all claims against the Declarant, the Board, the Developer and such other persons or entities named in said insurance policies, and against the agents and employees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by negligence or breach of any agreement by said persons, but only to the extent that insurance proceeds are received in compensation for such loss. Section 4. 3 Insurance Premiums. Premiums for insurance purchased or obtained by the Association shall be a common expense payable through assessments of Lots and all such insurance coverage obtained by the Board shall be written in the name of the Association. Section 4.4 Additional Optional Insurance by Owner. In addition to the aforesaid insurance required to be carried by the Association, each Owner shall, at his own expense, carry any other insurance deemed advisable; however, if available, said policy or policies shall provide that there shall be no contribution or offset between policies of the Association and policies an individual Owner may have in effect. 15 The Association shall have no duty whatsoever to insure, protect or maintain real or personal property located upon any Lot. It shall be the individual responsibility of each Owner, at his own expense, to provide Owner's liability and property damage insurance, theft and other insurance covering personal and real property of the Owner. Section 4.5 Destruction/Insurance Proceeds. In the event of substantial damage or destruction of any part of the Common Area, no Owner of a Lot or other party shall have priority over a First Mortgage with respect to the distribution of any insurance proceeds. Section 4. 6 Condemnation; Destruction. A. Condemnation. 1. Taking. The term "taking", as used in this Section, shall mean either (a) condemnation by eminent domain or (b) sale under threat of condemnation. 2. Authority of Board. In the event of a threatened taking of all or any portion of the Common Area, the Members hereby appoint the Board of the Association and such persons as the Board or the Association may designate to represent all of the Owners in connection with the taking. The Board shall act in its sole discretion with respect to any awards being made in connection with the taking and shall be entitled to make a voluntary sale to the condemnor in lieu of engaging in a condemnation action. 3. Partial Taking. In the event of a taking of less than all of the Common Area, the rules as to the restoration and replacement of the Common Area and the improvements thereon shall apply as in the case of destruction of improvements upon the Common Area as provided in Section 4.6.B. 4. Distribution of Proceeds. Any awards received on account of the taking shall be paid to the Association and to mortgages of record, as their interests may appear. In the event of a total taking, the Board may retain any award in the general funds of the Association, and any distribution of the award shall be on a reasonable and equitable basis. Notwithstanding anything to the contrary in this Section, the distribution of any award or awards for a taking of all or any portion of the Common Area shall be subject to the prior rights of mortgagees. B. Destruction. 1. Duty of Association. In the event of a partial or total destruction of the Common Area or improvements 16 thereon, except as otherwise provided herein, it shall be the duty of the Association to restore and repair the same to its former condition as promptly as is practicable and in a workmanlike manner. The proceeds of any insurance maintained pursuant hereto shall be used for such purpose, subject to the prior rights of mortgagees whose interests may be protected by said policies. 2 . Destruction: Proceeds Exceed 80% of Reconstruction Costs. If the amount available from the proceeds of such insurance policies for such restoration and repair is at least eighty percent (80%) of the estimated costs of restoration and repair, a special assessment for the reconstruction with each Owner contributing a like sum for each Lot owned, may be levied by the Association to provide the necessary funds for such restoration and repair, over and above the amount of any insurance proceeds available for such purpose, and such assessment shall not require the consent of any specified proportion of the Members. 3 . Destruction: Proceeds Less Than 80% of Reconstruction Costs. If the amount available from the proceeds of such insurance policies is less than eighty percent (80%) of the estimated cost of reconstruction and repair, the improvements shall not be replaced or restored through application of a special assessment unless such assessment is approved by a vote or the written consent of two-thirds (2/3) of each Class of Members. (A) Use of Hazard Proceeds . Notwithstanding the foregoing, unless Owners of at least two-thirds (2/3) of the First Mortgages of the Lots, and the holders of two-thirds (2/3) of the First Mortgages who have delivered written request for Notice to the Association, have given their prior written approval, the Association shall not be entitled to use hazard proceeds for losses to any Common Area for other than the repair, replacement or reconstruction of such improvements. (B) Common Area. In the event of a determination not to replace or restore the improvements on the Common Area as set forth above, the Common Area shall be cleared and landscaped as open space to be used by the Owners pursuant to the provisions hereof, and the costs thereof shall be paid for with the insurance proceeds, and any deficiency may be raised by the levy of uniform special assessment for reconstruction in an amount to be determined by the board. ARTICLE V OWNERSHIP AND USE OF THE COMMON AREA Section 5. 1 Easements of Enjoyment. Every Owner and Member shall have a right and easement of enjoyment in and to the Common Area which shall be appurtenant to and shall pass with title to every Lot, subject to the provisions hereof. 17 • Section 5.2 Conditional Use of Common Area. Each Owner and Member, his family, licensees, invitees and tenants or lessees, or contract purchasers of a Lot shall be entitled to use the Common Area subject to: A. The provisions of the Articles, By-Laws, this Declaration and the Rules. Each Owner, invitee, licensee, and tenant agrees that in using the Common Area he will comply with the provisions of such Articles, By-Laws, this Declaration, and the Rules. B. The right of the Association to charge a reasonable security deposit and clean-up fee for the use by any Owner of any facility situated upon the Common Area. C. The right of the Association to suspend the right of an Owner to use facilities, if any, of the Common Area for a period not to exceed sixty (60) days for any infraction of this Declaration or the Association's published Rules. Each day an infraction continues to exist is to be deemed a separate infraction. D. The right of the Association to take such steps as are reasonably necessary to protect the Common Area against foreclosure. E. The right of the Association, in connection with any adopted Rules, to enforce reasonable rules and regulations with respect to the use of the Common Area, including specific provisions with respect to the parking of vehicles thereon. Section 5.3 Delegation of Use. Any Owner or Member may delegate his right of enjoyment in the Common Area and facilities to the members of his family, his tenants and lessees or contract purchasers who reside in the Dwelling Unit, subject to such Rules as the Association may, from time to time, establish. Such delegation shall not relieve said Owner of his obligations and responsibilities as a Member under the By-Laws, Rules and this Declaration. Section 5.4 Damage or Destruction of Common Area. In the event any Common Area is damaged or destroyed by a willful or grossly negligent act of an Owner or any of his guests, tenants, licensees, agents, or members of his family, such Owner shall be liable therefore to the extent of liability imposed by local law and such Owner does hereby irrevocably authorize the Association to repair the damaged property, and the Association shall so repair the damaged property in good workmanlike manner in substantial conformance with the original plans and specifications. The Owner shall then repay the Association the amount actually expended for such repairs. Each Owner further agrees that these charges for 18 repairs, if not paid within ten (10) days after completion of the work shall be delinquent and shall become a lien upon such Owner's Lot and shall continue to be a lien until fully paid. The lien shall be subordinate to any First Mortgage or encumbrance on the subject property. Said charges shall bear interest from the date of delinquency at the rate of eighteen percent (18%) per annum (but not to exceed the maximum rate permitted by Arizona law) . The amount of principal and interest owed by the Owner to the Association shall be a debt, and shall be collectable by any lawful procedure allowed by the laws of the State of Arizona. Section 5. 5 Restriction on Conveyance of Common Areas and Facilities. The Common Area and facilities owned by the Association may not by act or omission be abandoned, partitioned, subdivided, encumbered, sold or transferred without the prior written approval of two-thirds (2/3) of each Class of voting members of the Association, except that the Declarant and the Association shall have the right at all times to grant easements over the Common Area for the purpose of constructing, erecting, operating or maintaining thereon, therein and thereunder: (a) roads, streets, walks, pathways, and driveways; (b) temporary overhead or permanent underground lines, cables, wires, conduits or other devices for the transmission of electricity for lights, heating, power, telephone, cable TV and other purposes; and (c) sewers, storm drains and pipes, drainage easements, water systems, water heating and gas lines or pipes; and such other purposes that Declarant shall deem reasonable and not inconsistent with the plan of development of the Properties and any Annexable or Annexed Property. ARTICLE VI COVENANTS FOR MAINTENANCE ASSESSMENTS Section 6. 1 Creation of the Lien and Personal Obligation to Pay Assessments. Each Owner and Class A Member, by acceptance of a deed to any Lot, whether or not it shall be so expressed in such deed, agrees and is deemed to covenant and agree to pay to the Association: (1) annual assessments or charges, (2) special assessments for capital improvements, and (3) individual repair and maintenance assessments, such assessments to be established and collected as hereinafter provided. Any and all assessments levied against a Lot, together with interest thereon from the date of delinquency until paid, and all costs of collection which may be paid or incurred by the Association in connection therewith, including reasonable attorney's fees, shall be a continuing lien upon the Lot. Delinquent assessments, together with interest, costs, and reasonable attorney' s fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment was levied. The personal obligation for 19 delinquent assessments shall not pass to successors in title unless expressly assumed by them. The sale or transfer of a Lot shall not relieve the prior Owner thereof from personal liability to pay delinquent assessments, plus interest, costs and attorney's fees. Such obligation shall remain the personal obligation of the defaulting Owner. The new Owner, except for a First Mortgagee as set forth herein, shall take title to such Lot subject to the lien of the full amount of the delinquent assessment. Section 6.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety, and welfare of the Members and their guests, for the improvement and maintenance of the Common Area and for all purposes set forth in the Articles, By-Laws and this Declaration. The Board of the Association may provide that assessments include a reserve fund for maintenance, repairs and replacement of those elements of the Common Area owned by the Association. Section 6. 3 Maximum Annual Assessment. A. Initial Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment shall be ($ . 00) . Subject to the provisions of Subsection 6. 3 .B of this Section, the Board shall each year estimate the total expenses anticipated for the coming year and shall determine the necessary level of reserve balances for ordinary and unexpected expenses, and shall determine the annual assessment necessary to generate the required revenues. The annual assessment determined to be necessary in any given year may be set an any amount less than or up to the maximum annual assessment permitted for such year. B. Increases in Maximum Annual Assessment. Subject to Subsection 6. 3 .0 of this Section, the Board shall not, in any given year, increase the maximum annual assessment by an amount greater than (i) six percent (6%) of the amount of the preceding year's maximum annual assessment or (ii) the percentage increase in the cost of living index for "All Items, All Cities" as reflected by the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor of the United States Department of Labor all Urban Consumers (hereinafter called the "Cost of Living Index Number") , whichever is greater. In the event that the Bureau of Labor Statistics should fail to publish a comparable Cost of Living Index Number during any such years, but a comparable Cost of Living Index Number shall be published by any governmental agency of the United States in place thereof, then such comparable index number shall be used for the purpose of adjusting the maximum annual assessment under the provisions of this Section 6. 3 with the same force and effect as the Cost of Living Index of the Bureau of Labor Statistics. 20 C. Approval of Membership. Any increase by the Board in the annual assessment which is greater than the amount permitted under Section 6. 3.B hereof must be first approved by the holders of two-thirds (2/3) of the votes of each Class of Membership who vote in person or by proxy at a meeting called for this purpose. Section 6.4 Special Assessment for Capital Improvements; Individual Assessments. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement of the Common Area, including fixtures and personal property related thereto, provided that any such assessment shall have the assent of the holders of two-thirds (2/3) of the votes of each Class of Members who vote in person or by proxy at a meeting called for this purpose. Section 6. 5 Individual Assessments. The Association may also levy and collect from each Owner individual assessments against specific Lots, and shall have a lien therefor, should the special circumstances of any Lot or Lots require special maintenance, expense or costs to be incurred by the Association for the protection of any Properties, Lots or Common Areas or should the Association be required to perform maintenance or repair upon a Lot or take enforcement action hereunder. Such individual assessment may be levied by action of the Board. Section 6. 6 Notice and Quorum for an Action Authorized Under Section 6. 3 and Section 6. 4. Written notice of any meeting called for the purpose of taking action authorized under Section 6. 3 and Section 6.4 shall be sent to all Members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitled to case sixty percent (60%) of the votes of each Class of Membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the require quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 6.7 Uniform Rate of Assessment; Declarant and Developer Exempt. Both annual and special assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly basis. However, and subject to the limitations set forth in Section 6. 3 .B hereof, said uniform rate may be revised periodically to reflect revisions in the annual assessment based on actual operating costs of the Association. 21 Notwithstanding any provision to the contrary contained in this Declaration, no annual or special assessment shall be assessed against Declarant or any Lots owned by Declarant except, such assessment shall be effective only as to any Lot which is both owned by Declarant and occupied as a residence. Neither Declarant nor Developer shall be liable for any Individual Assessment provided for herein. Section 6.8 Date of Commencement of Annual Assessment: Due Dates. The annual assessments provided for herein shall commence as to all Lots on the first day of the month following conveyance of the first Lot to an Owner. The first annual assessment shall be in an amount equal to or less than the maximum annual assessment as determined by the Board, and shall be adjusted according to the number of months remaining in the calendar year. The Board thereafter shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto in the event of its increase or decrease from the last annual assessment. The due dates shall be established by the Board. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of the assessments on a Lot is binding upon the Association as of the date of its issuance. Section 6.9 Effect of Non-Payment of Assessments: Remedies of the Association. Each Owner agrees to the payment of interest and costs and to the collection and enforcement of the assessments in the manner herein specified. A. Interest and Costs. All delinquent assessments over sixty (60) days in arrears shall bear interest at eighteen percent (18%) per annum, or such other rate as may be fixed by the Board (but not to exceed the maximum rate as permitted by Arizona law) . Late payments shall first be credited toward interest due, then towards assessments first due. In the event the Association employs an attorney for collection of any assessments, whether by suit or otherwise, or to enforce compliance with or specific performance of the terms and conditions of this Declaration, or for any other purpose in connection with the breach of this Declaration, each Owner agrees to pay reasonable attorney's fees and costs thereby incurred, in addition to any other amounts due or any other relief or remedy obtained against said Owner. B. Enforcement. In the event of a default in payment of any such assessment when due, in which case the assessment shall be deemed delinquent, and in addition to any other remedies herein or provided by law, the Association may enforce 22 • each such obligation in the manner provided by law or in equity, or without limitation to the foregoing, by either or both of the following procedures. 1. Enforcement of Personal Obligation. The Board may cause a suit at law to be commenced and maintained in the name of the Association against an Owner to enforce each such assessment obligation. Any judgment rendered in any such action shall include the amount of the delinquency, together with interest thereon from the date of delinquency until paid, court costs, and reasonable attorney's fees in such amount as the Court may adjudge against the delinquent Owner or Member. 2 . Enforcement of Lien. As provided in 6. 1 above, all assessments, plus interest and costs connected therewith, shall be a continuing lien upon the Lot assessed. Such lien shall be deemed to have attached as of the date of recordation hereof and shall be senior to all matters other than tax liens for real property taxes on the Lot, assessments on the Lot in favor of any municipal or other governmental assessing unit, reservations in patents, and the lien of any First Mortgage. (A) Notice and Claim of Lien. At any time after occurrence of any default of any such assessment, the Association, or any authorized representative may, but shall not be required to, make a written demand for payment by the defaulting Owner. Said demand shall state the date and amount of delinquency. Each default shall constitute a separate basis for demand but any number of defaults may be included within a single demand. The Association may, whether or not such a written demand is first made, file and record a claim of lien on behalf of the Association against the Lot of the defaulting Owner. Such a claim of lien shall be executed and acknowledged by any officer of the Association, recorded in the office of the County Recorder of Pima County, and shall contain substantially the following information: (1) The name of the delinquent Owner; (2) The legal description of the Lot against which claim of lien is made; (3) The total amount claimed to be due and owing for the amount of the delinquency, interest thereon, collection costs, and reasonable attorney's fees (with proper offset allowed) ; 23 (4) A statement that the claim of lien is made by the Association pursuant to this Declaration; (5) A statement that a lien is claimed against said Lot in an amount equal to the amount stated; and (6) A statement that the claim of lien will also extend to all assessments which became due but are not paid from the date of recording of the claim of lien to the date of payment of all amounts set forth therein (including interest thereon, reasonable attorney's fees, costs and collection) , and that the claim of lien will only be deemed satisfied and released when the Owner is current in the payment of all such amounts. Upon recordation of a duly executed original or copy of such a claim of lien, and the mailing of a copy thereof to said Owner, the lien claimed therein shall immediately attach and become effective in favor of the Association as a lien upon the Lot. Such a lien shall be junior to tax liens for real property taxes on the Lot, assessments on any Lot in favor of any municipal or other governmental assessing unit, and the lien of any First Mortgage. (B) Foreclosure of Lien. Any such lien may be foreclosed by appropriate action in court or in the manner provided by law for the foreclosure of a realty mortgage or trust deed as set forth by the laws of the State of Arizona, as the same may be changed or amended. The lien provided for herein shall be in favor of the Association and shall be for the benefit of all other Owners. The Association shall have the power to bid in at any foreclosure sale and to purchase, acquire, hold, lease, mortgage, and convey any Lot. In the event such foreclosure is by action in court, reasonable attorney's fees, court costs, title search fees, interest and all other costs and expenses shall be allowed to the extent permitted by law. Each owner hereby expressly waives any objection to the enforcement and foreclosure of this lien. 24 Section 6. 10 No Exemption of Owner. No Owner is exempt from liability for payment of assessments by waiver of the use of enjoyment of the Common Area or by abandonment of a Lot. Section 6. 11 Subordination of the Lien to First Mortgages; Sale or Transfer of Lots. The lien of the assessments provided for herein, including without limitation any fees, costs, late charges, or interest which may be levied by the Association in connection with unpaid assessments, shall be subordinate to the lien of any First Mortgage. Sale or transfer of any Lot pursuant to foreclosure of any such First Mortgage or any such proceeding in lieu thereof, including deed in lieu of foreclosure, or cancellation or forfeiture of such executory land sales contract, shall extinguish the lien of assessments or charges which became due prior to any such sale or transfer, or foreclosure, or any proceeding in lieu thereof, including deed in lieu of foreclosure, or cancellation or forfeiture of any such executory land sales contract; provided, however, that any such delinquent assessments or charges, including interest, late charges, costs, and reasonable attorney's fees, which are extinguished as provided herein, may be reallocated and assessed to all Lots as a common expense. No such sale, transfer, foreclosure, or any proceeding in lieu thereof, including deed in lieu of foreclosure, nor cancellation or forfeiture of such executory land sales contract, shall relieve any Owner of a Lot from liability for any assessments or charges thereafter becoming due, nor from the lien thereof. In the event of foreclosure of a First Mortgage or the taking of a deed in lieu thereof, such First Mortgagee shall not be liable for unpaid assessments or other charges which accrued prior to the acquisition of title to the Lot in question by such First Mortgagee. Section 6. 12 Mortgage Protection and Additional Assessment as Common Expense. Notwithstanding and prevailing over any other provisions of this Declaration, or the Association's Articles or By-Laws, or the Rules, the following provisions shall apply to and benefit each First Mortgagee of a Lot: A. Liability for Assessments and Other Charges. 1. First Mortgagees shall not in any case or manner prior to acquiring title to a Lot be personally liable for the payment of any assessment or charge, nor for the observance or performance of any covenant, restriction, regulation, Rule, Article or By-Law, except for those matters which are enforceable by injunctive or other equitable actions, not requiring the payment of money, nor shall a First Mortgagee be liable for any violation of the Restrictions that occurred prior to such First Mortgagee acquiring title. 2 . At such time as the First Mortgagee shall become record Owner of a Lot, said First Mortgagee shall be 25 subject to all of the terms, conditions and Restrictions of this Declaration, including but not limited to the obligation to pay for all assessments and charges accruing thereafter, in the same manner as any Owner. B. Right to Exercise Rights of Owner. During the pendance of any proceeding to foreclose the First Mortgage, including any period of redemption, the First Mortgagee (or receiver appointed in such action) may, but need not, exercise any or all of the rights and privileges of the Owner of the mortgaged Lot, including but not limited to, the right to vote as a Member of the Association to the exclusion of the Owner's exercise of such rights and privileges. C. Right to Pay Charges on Common Area. First Mortgagees are hereby granted the right to jointly, or singly, pay taxes or other charges which are in default and which may or have become a charge against a Common Area owned by the Association, and such First Mortgagees may, jointly or singly, pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy for such Common Area and any First Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association. D. Priority. Nothing in the Declaration shall in any manner be deemed to give a Lot Owner, or any other party, priority over any rights of a First Mortgagee of a Lot pursuant to the terms of such First Mortgagee's mortgage in the case of a distribution to an Owner of insurance proceeds or condemnation awards for losses to or a taking of any Lot or any part of the Common Area owned by the Association. E. Other Rights. Each First Mortgagee shall, upon written notice to the Association identifying the name and address of the holder, and the Lot number or address of the Lot encumbered by its mortgage, be entitled to: 1. Receive written notification from the Association of any default in the performance by the Owner of a Lot encumbered by the Mortgage in favor of such First Mortgagee of any obligation under this Declaration or under the Articles, By-Laws, or Rules of the Association which is not cured within sixty (60) days. 2. Inspect the books and records of the Association during normal business hours. 3. Receive an annual financial statement of the Association within ninety (90) days following the end of any fiscal year of the Association. 26 4. Receive written notice of all meetings of members of the Association. 5. Receive written notice of any condemnation loss or casualty loss affecting a material portion of the Properties. 6. Receive written notice of any lapse, cancellation or material modification of any insurance policy or fidelity bond. 7. Receive written notice of any proposed action that requires the consent of a specified percentage of First Mortgagees. ARTICLE VII EASEMENTS AND COMMON WALLS Section 7. 1 Easement for Encroachments. Each Lot and the Common Area shall be subject to an easement for encroachments created by construction, settling and overhangs, as designed or constructed by the Developer, including, but not limited to, footings and walls thereon. A valid easement for said encroachments and for the maintenance of same, so long as any such encroachment stands or is rebuilt to stand, shall and does exist. Section 7.2 Utility Easements. In addition to those specific easements shown on the Plat, there is hereby created a blanket easement upon, across, over and under the Common Area for ingress, egress' installation, replacing, repairing and maintaining all utility and service lines and systems, including, but not limited to, water, sewer, gas, telephone, electricity, television cable, or communications lines and systems, etc. By virtue of this easement, it shall be expressly permissible for the providing utility or service company to install and maintain facilities and equipment on the Common Area and to affix and maintain wire, circuits and conduits on, in, and under the roofs and walls of the Common Area. Notwithstanding anything to the contrary contained in this Section, no sewers, electrical lines, water lines or other utilities or service lines may be installed or relocated on the Properties, except as initially designed and installed by the Developer or thereafter by the Board. This easement shall in no way affect any other recorded easements on the Properties. In no event shall any portion of the above mentioned easements for utilities be constructed to authorize the placing or installing of sewers, electrical lines, water lines or other utilities under any permanent building structure constructed on the Properties. There shall be an access easement for the delivery and collection of the U.S. Mail. Section 7. 3 Easement for Walls, Entry Monuments and Signs, and Other Improvements. Developer may construct walls, 27 entry monuments, and other improvements, including but not limited to driveways, walkways, exterior lighting (metered to a particular Dwelling Unit) , drainage structures, etc. , as part of, or for the use of, a particular Dwelling Unit which may encroach upon or encompass portions of the Common Area or adjacent Lots. Wherever such encroachments on the Common Area or adjacent Lots should occur, the Owner of the Dwelling Unit involved shall have, subject to the conditions hereinafter set forth, a perpetual permanent right for such perimeter walls to encompass portions of the Common Area or adjacent Lots and for such other improvements to encroach upon portions of the Common Area or adjacent Lots. In consideration thereof, such Owners agree to maintain and keep in repair any improvements encroaching upon the Common Area or adjacent Lots which were constructed for the use of their Lot. In the event any such Owner should make demand upon the Association or upon the Owners of adjacent Lots to repair or maintain any Common Area which because of incidental encroachment lies within such Owner's yard area enclosed by a perimeter wall, or to maintain and repair any improvements encroaching upon the Common Area or adjacent Lots, then the Association or the Owner of the adjacent Lot upon which the encroachment lies, as the case may be, shall have the absolute right, and may cause the Owner making such demand, to remove at his expense the perimeter wall or other improvements encroaching upon the Common Area or adjacent Lot and to replace and rebuild, in accordance with the Board's plans and design specifications, such perimeter wall as to be within the Owner' s Lot. Section 7.4 Electrical Service and Telephone Lines. All electrical service and telephone lines shall be placed underground and no outside electrical lines shall be placed overhead, except existing overhead lines; provided that no provisions hereof shall prohibit the erection of temporary power or telephone structures incident to construction. Section 7. 5 Pedestrian/Utility Easement. If portions of the Lots are encumbered by a pedestrian or utility easement as shown on the Plat for the benefit of pedestrians or for the installation and placement of utilities, then by accepting a deed to any Lot, the Owner acknowledges and consents to such easement. Section 7. 6 Common Walls. The rights and duties of Owners with respect to common walls or fences shall be as follows: A. Each wall, including patio walls and fences, which is constructed as a part of the original construction of the Dwelling Unit, any part of which is placed on, adjacent to, or over the dividing line between separate Dwelling Units, shall constitute a common wall. Each Owner consents to the use and construction of 28 such common walls and acknowledges that portions of the Properties may contain common walls. With respect to any such wall, each of the adjoining Dwelling Unit Owners shall assume the burden of and be entitled to the benefits recited in the Section and to the extent not inconsistent herewith, the general rules of law regarding common walls shall be applied thereto. B. The Owners of contiguous Dwelling Units who have a common wall shall have reciprocal easements for support and an equal right to use such wall provided that such use by one Owner does not interfere with the use and enjoyment of same by the other Owner. C. Unless other provisions of this Section are applicable, the costs of reasonable repair and maintenance of a common wall shall be shared equally by the Owners who make use of the common wall in proportion to such use. D. In the event any common wall is damaged or destroyed through the act of one adjoining Owner, or any of his guests or agents or members of his family so as to deprive the other Owner of the full use and enjoyment of such wall, then the first of such Owners, if required under local law, shall forthwith proceed to rebuild and repair the same to as good condition as formerly without cost to the other Owner. E. In the event any common wall is damaged or destroyed by some cause other than the act of one of the adjoining Owners, his agents, guests, or family (including ordinary wear and tear and deterioration from lapse of time) , then in such an event, both such adjoining Owners shall, if required under local law, proceed forthwith to rebuild or repair the same to as good condition as formerly as their joint and equal expense. F. Notwithstanding anything to the contrary herein contained, there shall be no impairment of the structural integrity of any common wall without prior consent of the Board. In addition to meeting the other requirements of these Restrictions and of any building code or similar regulations or ordinances, any Owner proposing to modify, make additions to or rebuild his Dwelling Unit in any manner which requires the extension or other alteration of any common wall shall first obtain the written consent of the Board which shall consider, in its discretion, the adjoining Owner's preference concerning the proposed modification, extension or alteration of the common wall. G. In the event of a dispute between Owners with respect to the repair or rebuilding of a common wall or with respect to the sharing of cost thereof, then upon written request of one of such Owners delivered to the Association, the matter shall be heard and determined by the Board, except that neither the Declarant nor the Developer shall be subject to this provision. 29 ' The Declarant and Developer may modify a common wall without any consent or approval whatsoever. ARTICLE VIII ARCHITECTURAL CONTROL COMMITTEE Section 8. 1 Composition of Committee. The Architectural Control Committee shall consist of three (3) or more persons appointed by the Board of Directors of the Association; provided, however, that except as otherwise provided, until all Lots have been conveyed to the first Owner thereof (i.e. , other than the Declarant or Developer) , Developer shall appoint the Architectural Control Committee without a meeting and without a vote of the Members, and during said period, no election of the Members of said committee shall be had unless Developer has in writing relinquished its right of exclusive appointment. A majority of the Committee may designate a representative to act for it. Section 8. 2 Review by Committee. No Dwelling Unit, structure, improvement, (including but not limited to any building, fence, wall, driveway or other surfaced area) , or any attachment to an existing structure, shall be make, placed or constructed upon any Lot or the Properties (except by the Association upon the Common Area) ; no change of the exterior of a Dwelling Unit, structure, or improvement shall be made; no change in the final grade of any Lot shall be made; and no landscaping shall be installed or changed (except in enclosed rear yards) , unless complete plans and specifications (including a construction schedule) showing the nature, design, kind, quality, shape, height, materials, color scheme and location of any such Dwelling Unit, improvement, structure, attachment, or landscaping, shall have first been submitted to and approved in writing by the Architectural Control Committee. The Architectural Control Committee shall exercise its best judgment to the end that all Dwelling Units, attachments, improvements, construction, landscaping and alterations to structures on lands located within the Properties (collectively referred to herein as "Architectural Improvements") conform to and harmonize with the existing surroundings and structures. Decisions of the Architectural Control Committee shall be binding and conclusive. Notwithstanding the foregoing, neither the Declarant nor the Developer shall be required to submit any plans or specifications whatsoever to the Architectural Control Committee, nor shall any consent or approval of the Architectural Control Committee be required for the construction of any improvements by the Declarant or the Developer. Section 8. 3 Procedures. The Architectural Control Committee shall approve or disapprove all plans within thirty (30) days after submission and issuance by the Association of a receipt 30 t therefor. In the event the Architectural Control Committee fails to approve or disapprove such design and location within thirty (30) days after said plans and specifications have been submitted to it, approval shall be deemed denied, except that the party submitting the plans may resubmit the plans and if no response is given for a period of thirty (30) days after a written request by certified mail for a decision, approval shall be deemed given. The Architectural Control Committee may establish its own rules amplifying or supplementing the foregoing procedures. The Architectural Control Committee may from time to time, without notice, establish, add to, delete or amend separate standards, rules and procedures, which shall not be contrary to nor inconsistent with these Restrictions, providing for or otherwise relating to the submission, processing, review and approval of plans and specifications for Architectural Improvements or various portions or stages thereof. The Architectural Control Committee shall not be bound by previous standards or interpretations of its standards; and any consent or approval of a prior set of plans and specifications shall not preclude disapproval of a subsequent identical or similar set of plans and specifications. Section 8. 4 Vote. A majority vote of the Architectural Control Committee is required to approve a proposed change or improvement, unless the Committee has designated a representative to act for it, in which case the decision of the representative shall control. Section 8 . 5 Liability. The Architectural Control Committee and the members thereof shall not be liable in damages to any person submitting requests for approval or to any Owner by reason of any action, failure to act, approval, disapproval, or failure to approve or disapprove in regard to any matter within its jurisdiction hereunder. Section 8. 6 Variance. The Architectural Control Committee may grant reasonable variances or adjustments from any conditions and restrictions imposed by this Article or Article XI hereof in order to overcome practical difficulties and prevent unnecessary hardships arising by reason of the application of the Restrictions contained in this Article or Article XI hereof. Such variances or adjustments shall be granted only in case the granting thereof shall not be materially detrimental or injurious to the Properties and shall not mitigate against the general intent and purpose hereof. Section 8. 7 Nonconforming Architectural Improvements. In the event that the Architectural Improvements do not, upon the proposed date set forth in the construction schedule, conform to the plans submitted to and approved by the Architectural Control Committee, the Architectural Control Committee shall give written notice to the Owner of the property upon which such Architectural Improvements have been made. Such notice shall specify the nature 31 • of the nonconformity of the Architectural Improvements and shall grant the Owner a hearing before the Architectural Control Committee in accordance with the By-Laws. If an Owner has not, within sixty (60) days of the mailing or delivery of the written notice, corrected the nonconformity of the Architectural Improvement, then the Architectural Control Committee shall have the right and an easement to direct its agents, employees or such contractors to enter upon said Owner's property for the purpose of making any or all of such improvements, alterations or repairs as are necessary to bring the Owner's Architectural Improvements into conformity with the plans submitted to and approved by the Architectural Control Committee. All costs incurred by the Association in the course of the Architectural Control Committee's efforts to bring the nonconforming Architectural Improvements into conformity with the approved plans as provided above, including costs of labor, materials and all associated administrative costs reasonably incurred by the Association in connection therewith, shall be added to and become part of the assessment to which such Owner's Lot is subject and shall become a lien on such Owner' s Lot and the improvements thereon, and shall be enforceable and collected as provided for herein. Section 8.8 Color and Building Materials. Without limiting the foregoing, no color changes nor any changes in the original building structure, composition or products shall be permitted without the approval of the Architectural Control Committee. Section 8.9 Fee. The Association may establish a reasonable processing Fee to defer the costs of the Architectural Control Committee in considering any requests for approvals submitted to the Architectural Control Committee. The fee for initial submission and processing may be increased or decreased from time to time by the Board as it deems appropriate. The Board also may establish a fee schedule and amend such schedule from time to time, with respect to all or any portion or stage of the processing of plans and specifications as provided for in Section 8. 3 . ARTICLE IX USES AND RESTRICTIONS All the Properties shall be held, used and enjoyed, subject to the following limitations and restrictions (in addition to all other provisions hereof) : Section 9. 1 Private Residential Purposes. Dwelling Units and Lots shall be occupied and used by the respective Owners 32 solely for private single family residential use of the Owner, his family, tenants and social guests and for no other purpose. Sales offices, sales models and construction offices utilized by the Declarant or Developer on the Properties shall be permissible need not be owned by either Declarant or Developer. Further, sales models and sales offices may be utilized on the Properties as sales models and sales offices for the benefit of other subdivisions of either Declarant or Developer. Section 9.2 Animals. No animals of any kind shall be raised, bred, or kept, except that a reasonable number of generally recognized house or yard pets may be kept, provided that they are not kept, bred or maintained for any commercial purpose. No animal shall be allowed to become a nuisance. A "reasonable number" as used in this Section shall ordinarily mean no more than two (2) pets per household; provided, however, that the Architectural Control Committee may determine, in its sole and absolute discretion, whether a particular animal is a generally recognized house or yard pet or a nuisance, or whether the number of animals is reasonable. Section 9. 3 Trash Containers. No garbage or trash shall be placed or kept on any Lot within the Properties, except in covered containers of a type, size, and style which have been approved by the Architectural Control Committee, and containers shall at all times be hidden from view except on days of trash pick-up. All rubbish, trash or garbage shall be removed from the Lots and shall not be allowed to accumulate thereon. No incinerators shall be allowed. Section 9.4 Backboards. No basketball backboards of any kind shall be erected or attached, by either a permanent or temporary method, to any Dwelling Unit unless approved by the Architectural Control Committee. Section 9.5 Aerials. No aerial, antenna or satellite dish for use of TV, radio or other form of communication reception, of a temporary or permanent character, shall be erected on any Lot or attached to the principal residence located upon any Lot unless reasonably screened from view and approved by the Architectural Control Committee. Section 9. 6 Nuisances. After completion of construction of any Dwelling Units and landscaping of Lots, no rubbish or debris of any kind shall be placed or permitted thereon so as to render any such property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other property in the vicinity thereof or to its occupants. No loud or offensive noise, excessive glaring or bright lights, foul odors or other nuisance shall be permitted to exist or operate upon the Properties so as to be offensive or detrimental to its occupants. 33 Without limiting the generality of any of the foregoing provisions, no exterior speakers, horns, whistles, bells or other sound device, except security devices used exclusively for security purposes, shall be located, used or placed on any such property without the prior written approval of the Architectural Control Committee. The Architectural Control Committee, in its sole discretion, shall have the right to determine the existence of any such nuisance. Section 9.7 Parking and Storage of Vehicles. A. General Rule. Any and all motor vehicles not prohibited by the provisions hereof shall be stored in a carport or garage so as to conceal the same from view from adjoining property or from the street or public way, except that vehicles (other than recreational vehicles, commercial vehicles, motorhomes, campers, trailers, boats and similar vehicles, as provided below) may be parked upon the paved driveway surfaces of each Lot when there is insufficient room within an enclosed garage. B. Recreational Vehicles. Parking and/or storing of recreational vehicles, commercial vehicles, motorhomes, campers, trailers, boats and similar vehicles is prohibited on all portions of the Properties, except within the confines of an enclosed structure which has first been approved by the Architectural Control Committee, in its sole and absolute discretion. Such vehicles may be parked on the parking area of an Owner's Lot, but only for short periods of time solely for purposes of loading or unloading. The foregoing prohibition shall not apply to trucks with no more than a three-quarter (3/4) ton capacity with camper shells attached that are no more than eight (8) feet in height as measured from ground level, small motorhomes that are no more than eight (8) feet in height and no more than eighteen (18) feet in length or (3) non-commercial pick-up trucks larger than three-quarter (3/4) ton capacity that the Architectural Control Committee finds to be substantially similar in size and appearance to smaller vehicles; so long as any such vehicles are used on a regular and recurring basis for regular transportation and are parked in accordance with the provisions of Section 9.7.A. C. Use of Recreational Vehicles as Living Quarters. The use or occupancy of a recreational vehicle, motorhome, van, camper, trailer, or boat as living quarters on either a temporary or permanent basis is strictly prohibited on any portion of the Properties. At no time shall there be any outside storage of motor vehicles in stages of construction, reconstruction, modification or rebuilding of parts of motor vehicles such as frames, bodies, engines or other parts or accessories. 34 • Section 9.8 Diseases and Insects. No owner shall permit any thing or condition to exist upon any property which shall induce, breed, or harbor infectious plant diseases or noxious insects. Section 9.9 Drainage. There shall be no interference with the established drainage pattern over any property unless approved by the Architectural Control Committee or unless adequate provision is made for proper drainage conforming to applicable city and county rules, regulations, ordinances, and drainage criteria. For purposes hereof, "established drainage" is defined as the drainage which exists at the time the overall grading of the Properties is completed, or which is shown on any plans conforming to applicable rules, regulations, ordinances, and applicable drainage criteria. Section 9. 10 Modification of Exterior Wall. Unless approved by the Architectural Control Committee, no Dwelling Unit Owner shall alter or modify the exterior wall of a Dwelling Unit by cutting any opening in or placing any window of any kind in said exterior wall. Section 9. 11 Utility Easements. There is hereby created a blanket easement upon, across, over and under the Properties for ingress, egress, installation, replacing, repairing and maintaining all utility and service lines and systems, including but not limited to water, sewers, gas telephones, electricity, television cable or communication lines and systems, etc. By virtue of this easement, it shall be expressly permissible for the providing utility or service company to install and maintain facilities and equipment on the Properties and to affix and maintain wires, circuits and conduits on, in, and under the roofs and exterior walls of Dwelling Units. Notwithstanding anything to the contrary contained in this Section, no sewers, electrical lines, water lines, or other utilities or service lines may be installed or relocated on the Properties except as initially designed and installed or thereafter approved by the Architectural Control Committee. This easement shall in no way affect any other recorded easements on the Properties. In no event shall any portion of the above-mentioned easements for utilities be construed to authorize the placing or installing of sewers, electrical lines, water lines and other utilities under any permanent building structure constructed on the Properties. This easement shall be limited to improvements as originally constructed. Section 9. 12 Electrical Service and Telephone Lines. All electrical service and telephone lines shall be placed underground and no outside electrical lines shall be placed overhead; provided, however, that the Declarant shall not be prohibited from erecting temporary power or telephone structures incident to construction. 35 Section 9. 13 Mailboxes. If the Architectural Control Committee has provided uniform mailbox designs in the course of original construction, then such designs, colors, lettering, and other features shall be maintained by each at all times. Section 9. 14 Temporary Structures, Mobile Homes, Etc. . No manufactured, prefabricated home or mobile home shall be permitted or placed upon any Lot or anywhere else in the Properties. Except as hereinafter provided, no structure of a temporary character, including but not limited to a house trailer, tent, shack, temporary garage, or outbuilding shall be placed or erected upon any Lot, and no residence placed or erected upon any Lot shall be occupied in any manner at any time prior to its being fully completed, nor shall any residence when completed be in any manner occupied until made to comply with all requirements, conditions, and restrictions herein set forth; provided, however, that during the actual construction or alteration of a structure on any Lot, necessary temporary structures for storage of materials may be erected and maintained by the person doing such work. The work of constructing, altering, or remodeling any structure on any part of any Lot shall be prosecuted diligently from the commencement thereof until the completed thereof. The provisions of this Section shall not apply to the Declarant or Developer. Section 9. 15 Lots to be Maintained. Each Lot shall at all times be kept by the Owner in a clean, sightly, and wholesome condition. No trash, litter, junk, boxes, containers, bottles, cans, implements, machinery, lumber, or other building materials shall be permitted to remain exposed upon any Lot so that the same are visible from any neighboring Lot or street, except as necessary during the period of construction. Section 9 . 16 Lots Not to be Subdivided. No Lot shall be subdivided or resubdivided, except by Declarant, or except for the purpose of combining portions of a Lot with an adjoining Lot, provided that no additional building site is created thereby. Resubdivision by Declarant may result in additional Lots at its discretion. Section 9. 17 No Hazardous Activity. No activities shall be conducted on the Properties and on improvements constructed on the Properties which are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms shall be discharged upon the Properties and no open fires shall be lighted or permitted on the Properties, except in a contained barbecue unit while attended and in use for cooking purposes or within a safe and well-designed interior fireplace or firepit, or except such campfires or picnic fires on property designated for such use by Declarant or Developer. 36 Section 9 . 18 Tanks. No tanks of any kind, either elevated or buried, shall be erected, placed, or permitted on any Lot. Section 9. 19 Signs. No billboards or advertising signs of any character shall be erected, placed, permitted or maintained on any Lot or improvement thereof of this subdivision, except that in the course of selling a Dwelling Unit, one sign not to exceed five (5) square feet in size shall be permitted in the front yard of a Lot. The Declarant is exempt from the provisions of this Section. Section 9.20 Derricks, Boring, Etc. . No derrick or other structure designed for use in boring for oil or natural gas shall be erected, placed or permitted on any part of the Properties, nor shall any oil, natural gas, petroleum, asphaltum or hydrocarbon products or minerals of any kind be produced or extracted therefrom. Section 9. 21 Landscaping. All front and side yard landscaping shall conform to and be compatible with original landscaping installed by Declarant or Developer, and landscaping shall not be permitted to cause a nuisance nor shall landscaping be placed near foundations so as to require watering which may undermine the integrity of such foundations. All front or side yard landscaping shall require prior approval of Declarant, except for small ornamental shrubs and replacement of original landscaping installed by Developer. Section 9.22 Minimum Driveway Requirements. Driveways on all Lots shall be approved by the Architectural Control Committee. Section 9.23 Renting. Each Owner shall have the right to lease or rent his Dwelling Unit; provided, however, that any lease agreement, including any agreement to lease the Dwelling Unit on a month to month basis, must be in writing and must provide that the failure of any lessee or tenant to comply with the Rules, By-Laws, Articles and provisions of this Declaration shall be a default under the lease. Any lease agreement shall provide for a period of not less than thirty (30) days, and a copy thereof shall be delivered to the Association. Section 9. 24 Solar Devices. No solar devices, of any type, shall be placed, erected or installed on any Lot without the approval of the Board or the Architectural Control Committee. Section 9.25 Insurance Rates. Nothing shall be done or kept on any Lot or Common Area which will increase the rate of insurance on such property nor shall anything be done or kept on or in any Dwelling Unit or Common Area which will result in the cancellation of insurance on any such property or which would be in 37 violation of any law, unless expressly approved by the Architectural Control Committee. Section 9.26 Right of Inspection. During reasonable hours, any member of the Board, or any authorized representative of the Board shall have the right upon reasonable notice to the Owner of a Dwelling Unit to enter upon and inspect the Lot (except the interior of Dwelling Unit) , for the purpose of ascertaining whether or not the provisions of this Declaration have been or are being complied with, and such persons shall not be deemed guilty of trespass by reason of such entry. Section 9. 27 Exemption of Developer. Nothing in these restrictions shall limit the right of Developer to complete excavation, grading, and construction of improvements to any property owned by Declarant, or to alter the foregoing, including alterations of design or materials or both, or to construct such additional improvements as Developer deems advisable in the course of development so long as any Lot or Dwelling Unit therein remains unsold, or to use any structure as a model home or real estate sales of leasing office. Section 9.28 Drainage Area/Use Restriction. That portion of the Common Area shown on the Plat and designated as "drainage area" shall at all times be used and maintained by the Association as a natural area. No improvements of any kind shall be located upon the drainage area and only native vegetation shall be maintained thereon. Each Owner shall be responsible for all costs incurred by the Association as a result of any act or omission of maintenance by the Owner which results in any maintenance, repair or replacement on any Common Area; such cost to be added to and become a part of the lien and assessment against such Owners Lot after the Board of the Association has determined the assignment of responsibility at a hearing which has been noticed to the Owner in accord with the Rules. Section 9.29 Golf Course Lots/ Assumption of Risk. For purposes of this Section Golf Course Lots shall mean all Lots which are are adjacent to Common Area which abutts a golf course, and all Lots which directly share a boundary with a golf course. The Owners of all "Golf Course Lots", by acceptance of a deed to any such Lot, waive and release any and all claims whatsoever against the Association, Developer, Declarant, the Master Association, and the Developer and Declarant under the Master CCR's, as a result of any damage, loss or injury whatsoever to person or property which may be the reult of the location of the Golf Course Lot or due to errant golf balls, noise or any other cause relating to the existence or use of the golf course. ARTICLE X GENERAL PROVISIONS 38 Section 10. 1 Term. The Restrictions in this ` Declaration shall remain in full force and effect for a period of twenty (20) years from the date of recordation thereof. Thereafter, they shall be deemed to have been renewed and automatically extended for successive periods of ten (10) years each, unless then repealed by the written consent of the Owners of at least seventy-five percent (7 5%) of the Lots. Section 10.2 Amendments; Termination. A. Procedure. After termination of Class B Membership, this Declaration may be amended by an instrument in writing, signed and acknowledged by the President and Secretary of the Association, certifying that such Amendment has been approved by the vote or written consent of the then Owners, including Declarant, of not less than two-thirds (2/3) of the Lots within the Properties. Such amendment shall be effective upon its recordation with the Pima County Recorder, Pima County, Arizona; provided, however; so long as Declarant owns any Lot, no amendment shall be effective without the written consent of Declarant; prior to the termination of Class B Membership, Declarant shall have the sole authority and right to amend this Declaration, and such amendment shall be effective upon recording with the Pima County Recorder, Pima County, Arizona, of any amendment hereto which is signed by Declarant. B. Amendments Necessary for FHA Compliance, Etc. . Notwithstanding anything to the contrary contained in this Declaration, if Declarant shall determine that any amendments to this Declaration or any amendments to the Articles of Incorporation or By-Laws of the Association shall be necessary in order for existing or future mortgages, deeds of trust, or other security instruments to be acceptable to the Veterans Administration, the Federal Housing Administration of the U.S. Department of Housing and Urban Development, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, then subject to Section 10. 1 above, Declarant shall have and hereby specifically reserves the right and power to unilaterally make and execute any such amendments without obtaining the approval of any other Owners, Members, or First Mortgagees. Section 10. 3 Enforcement and Non-Waiver. A. Enforcement. Except as otherwise provided herein, the Association or any Owner shall have the right to enforce any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens or charges or Rules now or hereafter imposed by provision of this Declaration. B. Violation of Rules. If any Owner, his family or any licensee, tenant or lessee or invitee violates the restrictions of this Declaration or the Association's Rules, the 39 ' Board may, in addition to any other enforcement provisions contained herein, suspend the right of such person to use the Common Area, under such conditions as the Board may specify, for a period not to exceed sixty (60) days for each violation. Each day an infraction continues is a separate violation. Before invoking any such suspension, the Board shall give such person notice of hearing before the Board. Further, the Association shall have the authority to bring an action at law or in equity to enforce any of the provisions and Restrictions of this Declaration. Expenses of enforcement, in the event the Association is a substantially prevailing party, shall be paid to the Association by the Owner against whom enforcement action was commenced. The Association shall have the right to enter upon the Lot of any Owner for the purpose of repairing, modifying, or demolishing improvements which are not in conformance with the provisions of this Declaration and all expenses incurred in connection therewith shall be paid to the Association by the Owner in violation. C. Violation of Law. Each and every portion of this Declaration and any amendment hereto shall be subject to all applicable governmental ordinances and subdivision regulations and any future amendments thereto. Any violation of any state, municipal or local law, ordinance or regulation pertaining to the ownership, occupation or use of any of the Properties is hereby declared to be a violation of this Declaration and subject to any or all of the enforcement procedures set forth herein or in the By-Laws. D. Remedies Cumulative. Each remedy provided herein is cumulative and not exhaustive. E. Non-Waiver. Failure by the Declarant, the Developer, the Board, the Association, the Architectural Control Committee, or by any Owner to enforce any of the provisions hereof at any time shall not constitute a waiver of the right thereafter to enforce any of such provisions. Section 10. 4 Construction. A. Interpretation. The provisions of this Declaration shall be liberally construed to effectuate the purpose of creating a uniform plan for the development and operation of the Properties. Except for judicial construction, Declarant shall have the exclusive right to construe and interpret this Declaration and the provisions and Restrictions herein. In the absence of any adjudication to the contrary by a Court of competent jurisdiction, Declarant's construction or interpretation of this provisions and Restrictions in this Declaration shall be final, conclusive and binding on all persons and the Properties. 40 B. References to Restrictions. Any and all instruments of conveyance or lease of any interest in any Lot or the Properties may contain reference to this Declaration and shall be subject to the Restrictions in this Declaration the same as if they were therein set forth in full; provided that the Restrictions herein shall be binding upon all persons affected by the same, whether express reference is made to this Declaration or not. C. Rule Against Perpetuities. In the event the provisions hereunder are declared void by a Court of competent jurisdiction by reason of the period of time herein stated for which the same time shall be effective, then in that event said periods of time shall be reduced to a period of time which shall not violate the rule against perpetuities as set forth in the laws of the State of Arizona. D. Singular Includes Plural; Gender. Unless the context requires a contrary construction, the singular shall include the plural and the plural the singular; and the masculine, feminine or neuter shall each include the masculine, feminine and neuter. Section 10.5 Exemption of Developer. Nothing in this Declaration shall limit the right of Developer or Declarant to complete excavation, grading and construction of improvements to any of the Properties or to construct such additional improvements as Developer deems advisable in the course of development of Properties so long as any Lot therein remains unsold. Further, nothing in this Article shall limit the right of Developer or Declarant to use any structure as a sales model, sales office or construction office or parking area and to place any sign, banner, flag or similar method of advertisement to promote sales within the Properties or subdivisions of Declarant or Developer. Without limitation, the Declarant and Developer may maintain sales, administrative and construction offices on any Lot within the Properties and may maintain parking areas and parking lots on any Lot or Common Area within the Properties. The rights of Declarant or Developer hereunder or elsewhere in this Declaration may be assigned by Declarant or Developer. Section 10. 6 Binding Effect. By acceptance of a deed or acquiring any ownership interest in any of the Properties included within this Declaration, each person or entity, for himself, or his heirs, personal representatives, successors, transferees and assigns to all of the provisions, Restrictions, covenants, conditions, rules and regulations now or hereafter imposed by this Declaration and any amendments thereof. In addition, each such person by so doing thereby acknowledges that this Declaration sets forth a general scheme for the Properties and hereby evidences his intent that all the Restrictions, conditions, covenants, rules and regulations contained herein shall run with the land and be binding on all subsequent and future owners, 41 grantees, purchasers, assignees, and transferees thereof. Furthermore, each such person fully understands and acknowledges that this Declaration shall be mutually beneficial, prohibitive and enforceable by the various subsequent and future owners. Section 10.7 FHA/VA Approval. If this Declaration has been initially approved by FHA or VA in connection with any loan programs made available by FHA or VA and any loans have been made which are insured or guaranteed by FHA or VA, then as long as there is a Class B Membership, the following actions will require prior approval of the Federal Housing Administration or the Veterans Administration (unless the need for such approval has been waived by FHA or VA) : annexation of additional properties, mergers and consolidations, mortgaging of Common Area, public dedication of Common Area, and amendment of this Declaration. If this Declaration has not been so initially approved and no loans have been made which are insured or guaranteed by FHA or VA, a statement by Declarant to that effect shall be sufficient to eliminate the need for FHA/VA approval. Section 10.8 Annexation. Declarant reserves the right to annex any property which is adjacent to or borders (at any point) the Properties, or any portion thereof. Such annexation shall be effective, and the annexed properties shall for all purposes hereof be deemed to be a part of the Properties, upon the recording by Declarant of a Notice of Annexation. The Notice of Annexation shall describe the annexed properties and subject such property to this Declaration. The Notice of Annexation shall not be effective unless approved by the Declarant under the Master CCR's. IN WITNESS WHEREOF, Declarant has executed this Declaration the day, month and year first above written. Old Republic Title Agency, an Arizona Corporation, as Trustee under Trust No. 10,786. By Its 42 STATE OF ARIZONA ) ss. COUNTY OF PIMA ) SUBSCRIBED AND SWORN to before me this day of , 1995, by as Trustee under Old Republic Title Agency, Trust No. 10,786. Notary Public My Commission Expires: This Document is hereby Approved by the undersigned Class B Member (Declarant under the Declaration of Covenants, Conditions and Restrictions for Canada Hills, Recorded at Docket 8092 , Page 894, et. seq. , Pima County Arizona Records) . "Class B Member" : Canada Hills Development Limited Partnership, an Arizona Limited Partnership BY , its Canada Hills Resort Site Limited Partnership, an Arizona Limited Partnership By , its Canada Hills Commercial Site Limited Partnership, an Arizona Limited Partnership By , its 43 * OLD REPUBLIC TITLE AGENCY * * 5255 EAST WILLIAMS CIRCLE•SUITE 3000•TUCSON•AZ 85711•(602)747-2631 III* * * July 20 , 1994 it/lp rk :9© / To 42D. Town of Oro Valley !pfO Attn: Mary Jo Peterson 42 k.he Engineering/Planning & Zoning/Building y 11000 N . La Cafiada Drive Oro Valley, AZ 85737 RE: Cafiada Hills Parcel A Assurance Agreement Dear Ms . Peterson: Pursuant to your request the following items are enclosed as attachments to the "blank" assurance agreement for the above referenced property: 1) Exhibit "C" . 2) Please note: Exhibit "A" ( legal description) and Exhibit "B" (copy of trust agreement) will be forwarded with the executed Assurance Agreement . Please advise if you should need any additional documentation. Thank you, Rick Geiger Asst . to Gayle Bourdeau, CLA Vice President/Trust Officer