Amended and Restated Declaration of
Covenants, Conditions & Restrictions
Of
Chinquapin Homeowners Association

[ Definitions, Occupancy and Use of Residence Lots and Common Area, Preservation of the Character of the Project, Association, Assessments, Liens, Insurance, Repair and Restoration, Easements, Miscellaneous ]

(revised on July 3, 2003)

This document includes changes voted upon and adopted by the Board of Directors as of July 3, 2002.

WHEREAS, CHINQUAPIN HOMEOWNERS ASSOCIATION, a California non-profit mutual benefit corporation, hereinafter called “Association,” is the successor to the corporations called “Association” or “Homeowners Association” as such terms are defined or used in the following declarations:

Declaration of Covenants, Conditions and Restrictions – Chinquapin I recorded in the office of the Recorder of the County of Placer, State of California, on the 8th day of June 1971 at Book 1355, page 41 and following as amended by Amendment to Declaration of Covenants, Conditions and Restrictions – Chinquapin I recorded in the office of the Recorder of the County of Placer, State of California, on the 16th day of June, 1971 at Book 1356, page 443 and following;

Declaration of Covenants, Conditions and Restrictions - Chinquapin II recorded in the office of the Recorder of the County of Placer, State of California, on the 4th day of April, 1972 at Book 1410, page 671 and following;

Declaration of Covenants, Conditions and Restrictions - Chinquapin 3-A recorded in the office of the Recorder of the County of Placer, State of California, on the 30th day of May, 1973 at Book 1495, page 363 and following;

Declaration of Covenants, Conditions and Restrictions - Chinquapin 3-B recorded in the office of the Recorder of the County of Placer, State of California, on the 30th day of May, 1973 at Book 1495, page 387 and following;

Declaration of Covenants, Conditions and Restrictions - Chinquapin Recreational Area recorded in the office of the Recorder of the County of Placer, State of California, on the 30th day of May, 1973 at Book 1495, page 411 and following;

Declaration of Covenants, Conditions and Restrictions - Chinquapin Phase 4 recorded in the office of the Recorder of the County of Placer, State of California, on the 5th day of June, 1974 at Book 1571, page 408 and following;

Declaration of Covenants, Conditions and Restrictions - Chinquapin Common Area recorded in the office of the Recorder of the County of Placer, State of California, on the 5th day of June, 1974 at Book 1571, page 433 and following;

(Hereinafter, the phrase “Original Declaration” means and includes all of the above declarations); and

WHEREAS, the Members of Association are the separate Owners of the following described real property interests:

Lots 1 through 36 all as shown on that certain subdivision map entitled Dollar Cove Phase One filed in the office of the Recorder of the County of Placer, State of California on the 8th day of June 1971 in Book J of Maps at page 25 and following (hereinafter “Phase One Map”);

Lots 38 through 70 all as shown on that certain map entitled Chinquapin Phase 2 filed in the office of the Recorder of the County of Placer, State of California on the 4th day of April 1972 in Book J of Maps at page 48 and following (hereinafter “Phase 2 Map”);

Lots 72 through 93 all as shown on that certain subdivision map entitled Chinquapin Phase 3-A filed in the office of the Recorder of the County of Placer, State of California on the 30th day of May 1973 in Book J of Maps at page 79 and the following (hereinafter "Phase 3-A Map");

Lots 94 through 115 all as shown on that certain subdivision map entitled Chinquapin Phase 3-B filed in the office of the Recorder of the County of Placer, State of California on the 30th day of May 1973 in Book J of Maps at page 86 and following (hereinafter “Phase 3-B Map”);

Lots 117 through 190, and the Common Area shown as lot 191, all as shown on that certain subdivision map entitled Chinquapin Phase 4 filed in the office of the Recorder of the County of Placer, State of California on the 5th day of June 1974 in Book K of Maps at page 24 and following, as amended by A Resubdivision of a Portion of Tract No. 292 Chinquapin Phase 4 filed in the office of the Recorder of the County of Placer, State of California on the 27th day of February 1975 in Book K of maps at page 37 and following (hereinafter as so amended “Phase 4 Map”), excepting therefrom that Lot designated “Management Office” located within Common Area Lot 191; and

WHEREAS, Association and the Members of Association are the successors in interest of the declarant named in that certain Declaration of Reciprocal Covenants and Easements - Chinquapin I (hereinafter the “Reciprocal Declaration”) recorded in the office of the County Recorder of the Count of Placer, State of California, on the 8th day of June, 1971 at Book 1355, page 64 and following; and

WHEREAS, Association is the owner, subject to one or more of the above-described declarations, of the following real property interests:

Those common area parcels described in that certain Corporation Grant Deed recorded in the office of the Recorder of the County of Placer, State of California on the 17th day of January 1977 at Book 1800 page 692 and following;

Those real property interests referred to in that certain Quitclaim Deed recorded in the office of the Recorder of the County of Placer, State of California on the 6th day of March 1979 at Book 2092 page 267 and following;

Those common area parcels described in that certain Corporation Grant Deed recorded in the office of the Recorder of the County of Placer, State of California on the 27th day of August 1979 at Book 2162 page 312 and following; and

WHEREAS, the entire real property described above in these recitals is a “common interest development” within the meaning of California Civil Code Section 1351(c), and

WHEREAS, it is the intention of Association to amend the Original Declaration and to maintain upon said real property mutually beneficial restrictions under a general plan of improvement for the benefit of all of said lots, the structures thereon and the owners thereof,

NOW, THEREFORE, pursuant to the provisions of the Original Declaration, Association amends the Original Declaration as set forth herein and by such amendment declares that the Original Declaration is entirely superseded by the within Amended and Restated Declaration. Association hereby declares that all of the real property described above is held and shall be held, conveyed, hypothecated, encumbered, leased, rented, used, and occupied and improved subject to the following covenants, conditions, and restrictions, all of which are declared and agreed to be in furtherance of a plan for the subdivision improvement and sale of said real property and are established and upon for the purpose of enhancing and perfecting the value, desirability and attractiveness of said real property and every part of thereof. All of the covenants, conditions and restrictions shall run with said real property and shall be binding on all parties having or acquiring any right, title or interest in said real property or any part thereof, and shall be for the benefit of each owner of any portion of said real property, or any interest therein, and shall inure to the benefit of and be binding upon each successor in interest of the owners thereof.

ARTICLE I
DEFINITIONS

As used in this Declaration the following definitions shall apply, unless the context otherwise requires:

1. Architectural Control Committee: A committee appointed by the Board of Directors to review and make recommendations to the Board of Directors regarding any and all proposed additions or exterior modifications to any Residence Lot which requires the approval of the Association pursuant to this Declaration or to the Common Area.
2. Articles of Incorporation and By-Laws: Articles of Incorporation or By-Laws, or both, as the case may be, of the Association as the same may be amended from time to time.
3. Association: Chinquapin Homeowners Association, a California non-profit mutual benefit corporation.
4. Board: The Board of Directors of the Association.
5. Common Area: The real property covered by this Amended Declaration, excepting all Residence Lots granted or reserved. Specifically, the Common Area includes the following:
   1. Condominium Common Area: Real property consisting of Lots 117 through 126, inclusive, and Lots 139 through 162, inclusive, all as shown on Phase 4 Map, together with all improvements located on said lots including the roofs, foundations, floors, pipes, ducts, flues, chutes, conduits, wires, and other utility installations to the outlets, elevator equipment and shafts, bearing walls, columns, and girders to the unfinished surfaces thereof, regardless of location, within any structure containing condominium units.
   2. Project Common Area: Lots 36 and 37 as shown on the Phase One Map, Lots 70 and 71 as shown on the Phase 2 Map, Lot 93 and Lots A, B, and C as shown on the Phase 3-A Map, Lots 115 and 116 as shown on the Phase 3-B Map, and Lots 191, 192, 193, and 194 as shown on the Phase 4 Map.
6. Condominium Plan: Diagrammatic floor plans and elevations for condominium units which is a part of the Phase 4 Map.
7. Condominium Unit: The portion of a condominium as to which an owner is entitled to exclusive occupancy. The term “Condominium Unit” shall mean numbered units 117 through 126 inclusive and 139 through 162 inclusive, as shown on the Condominium Plan. The boundaries of a Condominium Unit are (a) the interior unfinished surfaces (exclusive of paint, paper, wax, tile, enamel or other finishing) of its floors and ceilings at their respective elevations as shown on the Condominium Plan, and (b) the interior unfinished surfaces (exclusive of paint, paper, wax, tile, enamel, or other finishing) of its perimeter walls, windows and window frames, door and door frames, and trim. To the extent that the following are located inside its perimeter, the Condominium Unit includes space and water heating equipment, ducts, flues, pipes, conduits, wires and other utility installations, and excludes bearing walls and structural frame work to their unfinished surfaces. Each Condominium Unit includes both the portions of the building so described and the air space so encompassed.
8. Member: Member means Owner except that there is only one membership in the Association for each Unit Ownership.
9. Owner or Owners: Each person or entity shown by a duly acknowledged instrument recorded in the office of the County Recorder of Placer County, State of California to be the owner of a fee interest in a Unit Ownership as defined herein.
10. Residence Lots: All Condominium Units and Townhouse Units as those terms are defined herein.
11. Townhouse Unit: Lots 1 through 35 inclusive as shown on the Phase One Map, including all structures and improvements thereon, Lots 38 through 69 inclusive as shown on the Phase 2 Map, including all structures and improvements thereon, Lots 72 through 92 inclusive as shown on the Phase 3-A Map, including all structures and improvements thereon, Lots 94 through 114 inclusive as shown on the Phase 3-B Map, including all structures and improvements thereon, Lots 127 through 138 inclusive and Lots 163 through 190 inclusive as shown on the Phase 4 Map, including all structures and improvements thereon.
12. Unit Ownership: The entire interest conveyed by deed to an Owner, including the Residence Lot and the related interest in the Common Area and also including each and all of the non-exclusive easements and rights of use (1) created by or otherwise resulting from, (i) all components of the Original Declaration and the Reciprocal Declaration, and (ii) all use of each of such easements and rights by each and all of the Owners, as such easements and rights are restated and confirmed by the adoption and recording of this Amended and Restated Declaration of Covenants, Conditions and Restrictions Chinquapin Homeowners Association; and (2) quit claimed to any Owner or Owners by the Moana 1979 Quitclaim.

ARTICLE II
OCCUPANCY AND USE OF RESIDENCE LOTS AND COMMON AREA

Section 1. Single Family Use Only. Each Residence Lot shall be used for single family residential use only and for no other purpose. “Single Family” use shall include casual guest of such family and the domestic employees or servants of such family. No commercial use shall be permitted except that an Owner is permitted to lease or rent a Residence Lot. Any such lease or rental agreement shall be in writing and shall require any tenant to abide by this Declaration, the Articles, Bylaws and Association rules. No Residence Lot may be used as a “time-share project” wherein a co-owner receives the right in perpetuity, for life, or for a term of years, to the recurrent exclusive use or occupancy of a Residence Lot annually or on some other periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the project has been divided.

Section 2. Common Area. The Project Common Area shall be used exclusively for ingress and egress for Owners as well as renters and guests of Owners and for recreational purposes for owners, renters and guests of Owners. No other use shall be made of the Project Common Area and no dwelling units of any kind shall be constructed thereon. There shall be no obstruction of the Project Common Area, nor shall anything be altered or constructed in or removed from or stored in the Project Common Area without the prior written consent of the Association. Each Owner, his family, his renters and guests shall be entitled to use the Common Area in accordance with the terms and conditions of this Declaration. The Association may prescribe reasonable rules and regulations concerning the use of the Common Area covering means of access thereto, periods of times of use and similar matters; provided however, that such rules and regulations are not inconsistent with the provisions of this Declaration. No Owner shall cut, trim, prune, remove, replace, or otherwise alter or affect the appearance or location of any living tree, plant, or other vegetation located in any portion of the Project Common Area without the prior written consent of the Association. Should any Owner fail to comply with the restriction imposed by this provision, the Association may recover from such Owner the cost of restoring or replacing any such vegetation. No changes, alterations, additions to or removal of any portion of the Condominium Common Area shall be undertaken except by the Association.

Section 3. Insurance. Nothing shall be done or kept in any Residence Lot or in the Common Area which will increase any applicable rate of insurance, without the prior written consent of the Association. No Owner shall permit anything to be done or kept in or on his Residence Lot or in the Common Area which will result in the cancellation of insurance on any Residence Lot or any part of the Common Area, or which would be in violation of any law.

Section 4. Signs. No billboard, sign or other advertising device shall be erected or placed or maintained upon any Residence Lot, save and except for signs of reasonable dimensions and design advertising the property for sale, lease or exchange as provided in California Civil Code Section 712.

Section 5. Pets. No animal of any kind shall be raised, bred, kept, used for commercial purposes, or allowed to pass over or upon any Lot within Chinquapin except as hereinafter set forth:

1. Owners in residence may keep household pets (household variety birds, cats or dogs) when accompanied by the Owner. The Owner, or owners collectively, of each Residence Lot shall not keep or maintain more than two (2) dogs within Chinquapin.
2. At all times when outside Residence Lots, dog(s) must be on a leash, one end of which must be attached to an Owner and the other to a dog(s); dogs must always be under the Owner's control and not disturb others.
3. Owners shall be responsible for the prompt pick-up and disposal of, in a sanitary manner, solid pet wastes left by their pets within Chinquapin.
4. No guests, tenants, invitees, employees, independent contractors, vendors, renters or others shall bring pets to or within Chinquapin.
5. No dog may be tethered or left on any porch, patio or deck or contiguous lawn area unless the Owner is present and capable of controlling the pet.

Pursuant to Article II, Section 10 of this Declaration, any violation of this Section 5 shall, at the discretion of the Board, result in a reasonable fine and/or any other lawful remedy. The Board may appoint or direct an "outside" agency to help with the enforcement of this Section.

Section 6. Nuisances, etc. No noxious or offensive activity shall be carried out or conducted upon any Lot within the Common Area, nor shall anything be done within Chinquapin that is or could become an annoyance or nuisance to any other Owners. Without limiting the foregoing, no Owner shall permit noise, including, but not limited to, barking dogs, stereo systems, television systems, motor vehicles or power tools to emanate from any Lot or Common Area which would unreasonably disturb any other Owner's peaceful enjoyment of a Residence Lot or of the Common Area.

General contractors, their employees, as well as any construction workers and their employees, any or all of whom are hired by individual homeowners, are permitted to work at Chinquapin only between the hours of 8 a.m. and 5 p.m. Monday through Friday all year round. Quiet interior work, such as painting, is permitted outside those hourly limitations provided such enterprise produces no noise detectable outside the unit in which the work is being done.

Section 7. Buildings. Nothing shall be done in or on any Residence Lot which will impair the structural integrity of the building or buildings, or which will structurally change the building or buildings, or which would alter or add to the building or buildings, except otherwise provided herein.

Section 8. Antennae. No television, radio or other antennae shall be constructed or maintained on any Residence Lot or improvement thereon without the prior written approval of the Association.

Section 9. Rules. The Association may adopt reasonable rules for the regulation of the occupancy and use of the Residence Lots and the Common Area. Written copies of such rules and any schedule of fines and penalties adopted pursuant to Section 10 of this Article shall be furnished to Owners. Any new rule or amendment to the rules shall be subject to ratification by the Members at the annual meeting.

Section 10. Penalties. The Association may adopt a schedule of reasonable fines and penalties for violations of the terms of this Declaration, and for violations of any Rules adopted pursuant to Section 9 hereof, provided that such schedule is approved in writing by a majority of the Members of the Association.

The Association shall assess such fines and penalties and shall enforce such assessments, including collection of late charges, interest and attorneys’ fees in the manner provided in Articles V and VI below after not less than seven (7) days notice to the Member concerned and opportunity for hearing.

Section 11. Hearings. After reasonable notice to the Owner involved, and opportunity for hearing before the Board, the Association may assess the fines and penalties adopted pursuant to Section 10 of this Article. The Association shall enforce payment of such assessments in the manner provided in Articles V and VI hereof. Within ten days after the mailing of notification of an assessment of a fine or a penalty to the Owner involved, such Owner may request in a writing, addressed to the secretary of the Association that the Board reconsider said fine or penalty at the next regular or special meeting of the Board. Should no such request be timely submitted, said fine or penalty shall become immediately enforceable. Said request shall be deemed timely if postmarked within said ten (10) day period and addressed as provided in Article X, Section 10. Upon receipt of such request the secretary shall cause the matter to be placed on the agenda of the next regular or special Board meeting provided said hearing shall not take place until at least ten (10) days after mailing notice of said hearing to the affected Owner. The decision of the Board at said hearing shall be the final decision of the Association regarding said fine or penalty.

Section 12. Individual Piers and Improvements. No individual piers, beach houses, boat houses or other improvements except as approved by the County of Placer, and the Board of Directors shall be constructed on any Residence Lot or the Project Common Area.

ARTICLE III
PRESERVATION OF THE CHARACTER OF THE PROJECT

Section 1. Waiver of Partition and/or Subdivision. There shall be no judicial partition and/or subdivision of the Common Area and/or any one or more Residence Lots, nor shall Declarant or any person acquiring any interest in the project or any part thereof seek any such judicial partition and/or subdivision thereof; provided, however, that if any Unit Ownership shall be owned by two or more co-tenants as tenants-in-common or as joint tenants, nothing contained herein shall be deemed to prevent a judicial partition as between such co-tenants so long as such judicial partition does not result in any physical partition.

Section 2. Severability. No owner shall in any way sever his Residence Lot from his interest in the Common Area.

Section 3. Building Restriction. No building, structure or improvement of any kind which may in any way conflict with the uses set forth in Article II, Section 2 is to be constructed in the Common Area.

ARTICLE IV
ASSOCIATION

Section 1. Powers and Duties. The Association shall perform each and every duty required of it by this Declaration.

Section 2. Membership. The Association shall have one class of Members which shall be composed of the Owners of Unit Ownership. There shall be but one membership for each Unit Ownership. Where more than one person owns a Unit Ownership, the Member shall be as determined pursuant to the Articles. The rights and interests of the Members and Owners shall be as set forth in this Amended Declaration and in the Articles and By-laws of the Association.

Section 3. Enforcement. The Association shall have the duty to enforce the provisions of this Declaration, including the duty to enjoin any breach or threatened breach of any of the provisions hereof, and to advance all costs of any such action or other enforcement procedure. The failure of any Owner to comply with any provision of this Declaration, the Articles, By-laws or the Association rules, shall give rise to a cause of action by the Association for the recovery of damages or for injunctive relief or both. It shall further be the responsibility of any Owner who has breached any of the provisions hereof to reimburse the Association for all costs and expenses including attorney’s fees incurred in connection with taking such action.

Section 4. Taxes. The Association shall have the authority and duty to pay all taxes and assessments, if any, levied against the Common Area, but not taxes levied solely against a Residence Lot or against the separate interest of an Owner, which taxes shall be paid for by such Owner.

Section 5. Utilities. To the extent possible all utilities such as electricity, gas, water, telephone, television, trash pickup and like services shall be separately metered and/or charged to the Owners, but the Association shall have the authority and duty to pay for the utilities and utility services required for the Common Area and for the utilities and utility services for the Residence Lots which are not separately charged to the Owners. Any charges for utilities to Residence Lots not separately metered may be charged to the individual unit Owners receiving the benefit of the utility.

Section 6. Contracts with Adjoining Association or Land Owners. The Association may enter into contracts with owners of land adjoining or near the subject real property and with associations having powers with reference to said land similar to the powers held by the Association. Any contracts so entered into may provide, among other things, for the joint installation, maintenance and repair of facilities benefiting the subject real property and said other lands, for the joint retainer of and use of maintenance, professional and management services for the joint discharge of any of the duties of each party to such contract to the extent that the duties so defined shall not be inconsistent with the duties, powers and rights of the Association as herein defined. Without limiting the generality of the foregoing listed contractual purposes, the Association may also contract with other owners of lands or associations created by owners of lands toward the end that enforcement of the liens established by Article VI hereof shall be exercised by such other owners or associations in the event that the Association should default in its duties of enforcement as provided by this Article. The right conferred upon the Association to contract with land owners of adjacent lands shall include the right to merge with and into such management bodies or associations.

Section 7. Improvements. The Association may construct, improve, repair and reconstruct any and all improvements on or over or under the Common Area not inconsistent with this Declaration, and appropriate for the use and benefit of the Members of the Association, and to charge for the use thereof.

Section 8. Alteration of Residence Lots. No Owner shall make any alteration whatsoever to any exterior or interior portion of his Residence Lot without having first obtained the written approval of the Association, which approval shall not be unreasonably withheld. This restriction shall not apply to:

1. The repair or refinishing of any interior walls, ceilings or floors;
2. The alteration or installation of cabinets or typical household appliances of an appropriate size, so long as no alteration is to be made to any wall or floor.

In passing upon requests for approval under this restriction, the Association shall withhold approval if the requested alteration adversely affects (1) the exterior appearance of Residence Lots, (2) the structural integrity of any building, or (3) the sound control materials installed between floors, ceilings and walls.

The Association may establish an Architectural Control Committee to make recommendations to the Board of Directors regarding requests for approval required by this section and shall promulgate reasonable rules and regulations for the accomplishment of these tasks.

Section 9. Financial Responsibility. The Association shall prepare and distribute financial statements, reports, and copies of the governing instruments in accordance with applicable laws.

Section 10. Reserve Accounts. The Association shall maintain reserve accounts in amounts to be determined by the Board acting prudently.

ARTICLE V
ASSESSMENTS

Section 1. Annual Assessments. Not less than thirty (30) days prior to the beginning of each calendar year, the Association shall estimate the net cash requirements for the ensuing year necessary for the Association to operate and to maintain the property subject to its jurisdiction in accordance with its duties, and each Unit Ownership shall be assessed for an equal pro rata share of the amount so estimated.

Section 2. Special and/or Capital Assessments. In addition, if the annual assessment is inadequate or anticipated to be inadequate, the Association may from time to time establish a special assessment to remedy any such inadequacy and each Unit Ownership shall be assessed for an equal pro rata share of any special assessment. Each capital and or special assessment or project required to be voted upon pursuant to these provisions must be voted on separately; bundling of assessments or projects is not permitted.

The Association may not (i) establish a regular assessment for any fiscal year more than twenty (20) percent above regular assessment for the Association’s preceding fiscal year, or (ii) establish special assessments which in the aggregate exceed five percent of the budgeted gross expenses of the Association for that fiscal year, without a majority vote of approval by the Owners at a duly held meeting of the Members of the Association. The foregoing restrictions do not apply to any assessment increase that has been established (i) to maintain or repair the Common Area or any other area that the Association is obligated to maintain or repair or (ii) to address emergency situations. Costs for maintenance or repair of Common Areas or other areas that the Association is obligated to maintain or repair shall include, without limitation: insurance premiums, utility bills, costs of maintaining or repairing structures or improvements, and costs to fund reserves.

Section 3. Individual. Each Unit Ownership shall also be assessed from time to time for all fines and penalties to which its Owner is subject as a result of violation of the terms of this Declaration or any rules prescribed by the Association and for any other liability, indebtedness or other obligation of the Owner to the Association arising under any provision of this Declaration or otherwise.

Section 4. Costs and Interest. In addition to the foregoing assessments, each Unit Ownership shall also be assessed from time to time costs (including reasonable attorneys' fees) incurred in collecting the foregoing assessments and interest on amounts due at the maximum rate permitted by California law, not to exceed said maximum rate, and in accordance with law.

Section 5. Payment. The Association shall inform each Owner in writing of all assessments against his Unit Ownership. The annual assessment shall be payable in equal monthly, quarterly or semi-annual installments in advance, as determined by the Association. Special and individual assessments shall be payable in full on the first day of the first month next following the date on which the Owner is informed of such assessment, unless other provision is made therefor.

Section 6. Debt. An assessment upon any Unit Ownership shall be a debt of the Owner thereof at the time the assessment is made.

ARTICLE VI
LIENS

Section 1. General. The amount of any assessment, plus any other charges thereon, such as interest, costs and penalties, as may be provided for in this Declaration, shall be and become a lien upon the Unit Ownership assessed when the Association causes to be recorded with the Recorder of the County of Placer, State of California, a notice of assessment, which shall state the amount of such assessment and such other charges as may be authorized by this Declaration, a description of the Unit Ownership against which the same have been assessed and the name of the record Owner thereof. Such notice shall be signed by an authorized representative of the Association. Upon payment of said assessment and charges in connection with which such notice has been so recorded or other satisfaction thereof, the Association shall cause to be recorded a further notice stating the satisfaction and release of the lien thereof.

Such lien shall be prior to all other liens recorded subsequent to the recordation of said notice of assessment, except that such liens shall be subordinate to any bona fide first mortgage or first trust deed which has been or may hereafter be given in good faith and for value on any Unit Ownership covered by this Declaration.

The Association may enforce any assessment lien established under this Section in any legally authorized manner including filing an action for judicial foreclosure or, if the notice of delinquent assessment contained the name and address of the trustee authorized by the Association to enforce the lien by non-judicial foreclosure, by recording a notice of default in the form described in Civil Code Section 2924c(b)(1) to commence a non-judicial foreclosure. Any non-judicial foreclosure shall be conducted in accordance with the requirements of Civil Code Sections 2924, 2924b, 2924c, 2924f, 2924g, and 2924h that apply to non-judicial foreclosures of mortgages or deeds of trust. The sale shall be conducted by the trustee named in the notice of delinquent assessment or by a trustee substituted in accordance with the provisions of Civil Code Section 2934a. The Association may bid on the Unit Ownership at the sale, and may hold, lease, mortgage, and convey the acquired Unit Ownership. If the default is cured before the sale or before completing a judicial foreclosure, including payment of all costs and expenses incurred by the Association, the Association shall record a notice of satisfaction and release of lien, and on receipt of a written request by the Owner, a notice of rescission of the declaration of default and demand for sale.

ARTICLE VII
INSURANCE

Section 1. General. The Association shall have the duty to purchase, carry and at all times to maintain in force, insurance covering the entire project for the interest of the Association and of all Owners and their mortgagees, as their interests may appear, in such amounts and with such endorsements and coverage as shall be considered good sound insurance coverage for properties similar in construction, location and use to subject property; provided, however, that the Association shall not be obligated to insure any personal property such as household furnishings of any of the Owners unless the Association decides to do so for all Owners on an equal basis. Such insurance shall include, to the extent reasonably available in the judgment of the Board, but need not be limited to:

1. Insurance against loss or damage by fire and hazards covered by a standard all risk of physical loss endorsement in an amount which shall be equal to the maximum insurable replacement value, excluding foundation and excavation costs;
2. Public liability and property damage insurance on a broad form basis; including insurance against vandalism and malicious mischief;
3. Workers’ Compensation insurance to the extent necessary to comply with any applicable laws;
4. A fidelity bond or bonds for all officers, directors and employees of the Association having control over receipt or disbursement of funds in such penal sums as shall be determined by the Association in accordance with its By-laws; and
5. Errors and omissions coverage for officers and directors of the Association.

Section 2. Application of Proceeds. The payment and the application of the insurance proceeds, if any, from any policy obtained by the Association pursuant to Section 1 hereof, or from any loss payable endorsement, shall be as follows:

1. For damage to or destruction affecting one or more Residence Lots and/or the Common Area, all insurance proceeds shall be paid to a bank or trust company (hereinafter referred to as the "Insurance Trustee") designated by the Association according to its Bylaws to be held in trust for the benefit of the Owners, their mortgagees or the Association, as their interest may appear; provided, however, that proceeds of $1,000 or less shall be paid to the Association to be used by it for repair or reconstruction of the damages or destruction to which such proceeds relate. The Association is authorized on behalf of the Owners to enter into such agreement with the Insurance Trustee relating to the powers and duties of said Trustee as the Association may approve. Said Trustee must apply any proceeds to the repair or reconstruction of the damage or destruction to which the proceeds relate.
2. In any case in which proceeds of insurance exceed the cost of repair or reconstruction on account of damage or destruction to which such proceeds relate, the excess shall be turned over to or retained by the Association and shall be used by the Association to operate and maintain the project in accordance with its duties.

ARTICLE VIII
REPAIR AND RESTORATION

Section 1. General. Notwithstanding the provisions on insurance in Article VII, the Association and the Owners are under the obligation of maintenance, repair and restoration set forth as follows; provided, however, that all expenses to the extent covered by insurance shall be paid from such insurance proceeds.

Section 2. Owners. The Owner of each Residence Lot shall at his expense maintain, and in the case of damage or destruction shall repair or restore, the interior of his residence or his Residence Lot. All such repair or restoration shall be done substantially in accordance with the original plans and specifications, or in accordance with any modification thereof as approved in writing by the Association. Any such repair or restoration work deemed by the Association to be necessary for reasons of health, safety or preservation of the aesthetic quality of Chinquapin may be performed by the Association with the cost of such repair or restoration assessed against the applicable Unit Ownership.

Section 3. The Association. The Association shall have the obligation to maintain at its expense, and in case of damage or destruction shall repair or restore at its expense, the Common Area and all improvements thereon; provided, however, that any carports, storage facilities or other improvements which are allocated to individual Owners shall be maintained, repaired or restored by the Association but at the expense of the individual Owner.

The Association shall have the obligation to maintain at its expense, and in case of damage or destruction shall repair or restore at its expense, the exterior of all improvements of each Residence Lot including but not limited to roofs, walls, doors, windows, decks, patios and steps, and all foundations and other parts of such improvements of a structural nature. Said maintenance shall include but not be limited to painting as often as the same shall be necessary, replacement of trim, and caulking and other repairs of roofs. The expense of any extraordinary maintenance or any repair or restoration caused by the intentional or negligent acts of an Owner or a member of his family or a person occupying his Residence Lot shall all be paid by such Owner.

Section 4. Apportionment of Expenses. If two or more Owners cannot agree on the apportionment of such expenses, they shall be conclusively apportioned by the Board. If the Association is involved in a dispute over the apportionment of such expenses, then the dispute shall be settled by arbitration as provided in Article X, Section 8.

Section 5. Liens. If the Association undertakes any work which Section 2 hereof requires an Owner to undertake, or any work which Section 3 hereof requires the Association to undertake at the expense of the Owner, the Association shall assess the Unit Ownership of the Owner for such work and shall so inform the Owner thereof in writing; provided, however, that the assessment shall be reduced by the amount of any insurance proceeds paid to the Association as a result of damage to or destruction of the Residence Lot involved. Such assessment shall be a lien upon the Unit Ownership of the Owner and may be foreclosed, as set forth in Articles V and VI hereof.

Section 6. No Waiver By Approval. Approval by the Association of any plan or specification shall not prevent the Association from withholding its approval of an identical plan or specification, or part thereof, when subsequently or additionally submitted for approval by the same or any other Owner.

Section 7. Non-Liability. Approval or disapproval by the Association of any plan or specification submitted to it for approval shall not cause the Association or its members to be liable in any way to any person.

Section 8. Total Destruction. If the project is substantially or totally destroyed, the Association shall obtain bids from three contractors to restore the project as nearly as possible to its condition immediately prior to its destruction, excluding improvements added by individual Owners. As soon as possible thereafter, the Association shall hold a special meeting to consider the bids. Unless Owners holding in aggregate more than seventy-five (75) percent of the Unit Ownerships are opposed to repair or restoration of the project, the project shall be restored according to the provisions of this Article.

ARTICLE IX
EASEMENTS

Section 1. Encroachments. There is reserved for the benefit of each Residence Lot an easement of maintenance and use to which the entire project shall be subject for any and all encroachments resulting from roof overhangs and any other causes attributable to the design and construction of improvements on each Residence Lot and any and all encroachments resulting from construction errors, lateral shifting or settlement or any other cause and any and all encroachments resulting from construction of sewer, water and electrical lines and other utilities.

Section 2. Ingress, Egress and Support. An easement for ingress, egress and support throughout the Common Area is appurtenant to each Residence Lot, and the Common Area is subject to such easements.

Section 3. Rights of Association. There is reserved to the Association an easement to which the entire project shall be subject, of entry and of access for the performance generally of its rights and duties as provided in this Declaration. Entry into the residence of an Owner pursuant to this easement shall be restricted to reasonable times and must be preceded by reasonable notice to occupant, unless entry is required by an emergency.

Section 4. Utilities. There is reserved an easement for ingress, egress and support over, under and through each Residence Lot, and Common Area for installation, maintenance and repair of each and every utility service, including but not limited to sewage, water, electricity, gas, telephone and television service for this project; provided, however, that the exercise of the easements reserved by this Section 4 shall not result in damage to existing improvements including lawns, shrubbery or trees, unless adequate compensation is made for any such damage.

Section 5. Easement. In the event that there shall be located within any Residence Lot pipes, vents, outlets, wires or other structures serving more than one Residence Lot, the Owner of each Residence Lot so served shall have and enjoy a perpetual easement to the maintenance and use of any such pipe, vent, outlet or other structure.

Section 6. Public Agencies. There is reserved an easement for ingress, egress and support through the Common Area for use by all law enforcement, fire protection, welfare and other related public or county agencies, their vehicles and personnel.

Section 7. Owners’ Non-exclusive Easements. Every Owner has a non-exclusive easement of use, enjoyment, ingress, egress and support into and through the Project Common Area and any improvements or facilities on these areas. However, such non-exclusive easements shall be subordinate to, and shall not interfere with, exclusive easements over the Condominium Common Area. Each such non-exclusive easement shall be appurtenant to the respective Resident Lot and shall pass with the title to the Unit Ownership. Non-exclusive easements shall be subject to the following rights and restrictions: (i) the right of the Association to limit the number of guests, and to adopt and to enforce the Association rules; (ii) the right of the Association to borrow money to improve, repair or maintain the Common Area; (iii) the right of the Association to assign, rent, license or otherwise designate and control use of any unassigned parking and storage spaces within, and any recreational facility situated upon the Project Common Area and to charge reasonable fees for admission and use; (iv) the right of the Association to suspend the right of an Owner to use any recreational or other facility in the Project Common Area; and (v) the right of the Association to adopt and enforce Association rules concerning the control and use of any private streets, roadways, and paved areas located upon or across the Project Common Area.

ARTICLE X
MISCELLANEOUS

Section 1. Acceptance of Provisions by Grantees. The Association and each Owner now or hereafter of any part or portion of an interest in the project, and any purchaser under any grant or contract of sale, or any lessee under any lease covering any part or portion of or interest in the project, accepts the same subject to all of the restrictions, conditions, covenants, reservations, liens and charges, and the jurisdiction, rights and powers of the Association provided for in this Declaration.

Section 2. Conclusiveness of Records. A certificate of the Secretary of the Association, or in his absence, any two Board Members shall be conclusive proof of all matters contained in the certificates when the certificate shall relate to acts or non-acts of the Association, its Board of Directors, or any committee or agent of the Association, and when the certificate shall be prepared for or delivered to any title insurer or land abstractor for use in a search, in preparing an abstract or insuring title in any Unit Ownership or other interest therein, or lien thereupon. For the same purposes a certificate of any officer of the Association shall be conclusive proof of its contents.

Section 3. Indemnification. Each Owner shall be liable to the Association for any damage to the Common Area or to Association owned property that may be sustained by reason of the negligence of that Owner, that Owner’s family members, contract purchasers, tenants, guests, or invitees, but only to the extent that any such damage is not covered by casualty insurance in favor of the Association.

Section 4. Interpretation of Restrictions. In interpreting and applying the provisions of this Declaration, they shall be held to be minimum requirements adopted for the promotion of the health, safety, comfort, convenience and general welfare of the Owners and occupants of the property affected by this Declaration. It is not the intent of this Declaration to interfere with any provisions of any law or ordinances or any rules, regulations or permits previously adopted or issued or which may be adopted or issued pursuant to law relating to the use of building or premises; nor is it the intent of this Declaration to interfere with or abrogate or annul easements, covenants or other agreements between parties; provided, however, that where this Declaration imposes a greater restriction upon the use or occupancy of any Residence Lot, or upon the construction of buildings or structures, or in connection with any other matters that are imposed or required by such provisions of law or ordinances or by such rules, regulations or permits, or by such easements, covenants and agreements, then in that case the provisions of this Declaration shall control.

Section 5. Construction and Validity of Restrictions. All of said restrictions, conditions, covenants, reservations, liens and charges contained in this Declaration shall be construed together, but if it shall at any time be held that any one or more of such restrictions, conditions, covenants, reservations, liens or charges, or any part thereof, is invalid or for any reason becomes unenforceable, no other restriction, condition, covenant, reservation, lien or charge, or any part thereof, shall be thereby affected or impaired.

Section 6. Waiver and Exemptions. The failure by the Association or any Owner of any Unit Ownership included in the project, or any other person, to enforce any of the restrictions, conditions, covenants, reservations, liens or charges to which said Unit Ownership or any part thereof is subject, shall in no event be deemed a waiver of the right to do so thereafter or to enforce any other restriction, condition, covenant, reservation, lien or charge.

Section 7. Titles. All titles used in this Declaration, including those of Articles, sections and subsections, are intended solely for convenience or reference, and the same shall not, nor shall any of them affect that which is set forth in such Article, section or subsection nor any of the terms or provisions of this Declaration nor the meaning thereof.

Section 8. Arbitration. If the Association and one or more Owners are unable to agree on the meaning or effect of any part of this Declaration, the dispute shall be conclusively settled by arbitration. The Association shall name one arbitrator, the Owner or Owners shall name one arbitrator. The two arbitrators so named shall name a third, and these three shall resolve the dispute.

Section 9. Amendment. This Declaration may be amended upon vote or written consent of not less than a sixty-six and two-thirds percent (66-2/3 %) majority in interest of the Owners in the project given after reasonable notice.

Any amendment shall be binding upon every Owner and every Unit Ownership whether the burdens thereon are increased or decreased thereby, and whether the Owner of each and every Unit Ownership consents thereto or not.

Section 10. Notices. Notices or requests for hearings provided for herein when sent by mail to the Association shall be addressed:

Chinquapin Homeowners Association
P.O. Box 6001
Tahoe City, California 96145

IN WITNESS WHEREOF, the undersigned has caused this Declaration to be executed this
__________ day of _______________, 2003.

DECLARANT: CHINQUAPIN HOMEOWNERS ASSOCIATION
BY: ____________________________________, its Secretary

For inquiries please contact the appropriate Board Member or Committee Chairperson.

"Keeping Chinquapin Homeowners Informed"

URL: http://chinquapinhoa.com/ccrs.htm
Last modified: 08/18/09