 |
ARTICLE
I
PLAN OF UNIT OWNERSHIP
1. Condominium
Submission. The
Condominium Project
known as "Bethesda
Overlook Townhouses
Condominium" (hereinafter
called the "Condominium")
located in Montgomery
County, Maryland,
has been declared
and constituted a
Condominium by Declaration
and Condominium Plat
made on the 16th day
of September, 1974,
by WINDSOR SQUARE
DEVELOPMENT CORPORATION,
a Maryland corporation
(hereinafter referred
to as the "Developer")
to which Declaration
of these By-Laws are
appended as a part,
and shall be governed
by the Condominium
Act (as defined in
the Declaration),
the said Declaration,
Condominium Plat and
these By-Laws.
2. By-Laws
Applicability.
The provisions of
these By-Laws are
applicable to the
Property (described
in the Declaration
and Condominium Plat),
and the use, occupancy,
sale lease or other
transfer thereof.
All owners of any
freehold or leasehold
interest, all occupants
or others of the premises,
and the agents and
servants of any of
them are subject to
the provisions of
the Declaration, the
Condominium Plat,
these By-Laws, and
the applicable laws
of the State of Maryland.
3. Personal
Application. All
present and future
Unit Owners (as defined
in the Declaration),
tenants, future tenants,
their guests, licenses,
servants, agents,
employees and any
other person or persons
who shall be permitted
touse the facilities
of the Condominium,
shall be subject to
these By-Laws and
to the rules and regulations
of the Condominium.
Acquisition, rental,
or occupancy of any
of the Units (as defined
in the Declaration
and Condominium Plat),
in the Condominium
shall constitute an
acknowledgement that
such Unit Owner, tenant
or occupant has accepted
and ratified these
By-Laws, the provisions
of the Declaration,
the Condominium Plat
and the Rules and
Regulations as adopted
by the Board of Directors
from time to time
and will comply with
them.
ARTICLE
II
COUNCIL OF UNIT OWNERS
1. Composition.
All of the Unit Owners,
acting as a group
in accordance with
the Condominium Act,
the Declaration and
these By-Laws, shall
constitute the Council
of Unit Owners," (hereinafter
referred to as the
"Council") who shall
have the responsibility
of administering the
Condominium, establishing
the means and methods
of collecting the
contributions to the
Common Expenses, arranging
for the management
of the Condominium,
and performing all
fo the acts that may
be required to be
performed by the Council
by the Condominium
Act. Except as to
those matters which
the Condominium Act
specifically requires
to be performed by
the vote of the Unit
Owners, the administration
of the Condominium
shall be performed
by the Board of Directors
(as more particularly
set forth in Article
III), unless delegated
to the Managing Agent
or to the Officers.
The Council shall
be unincorporated
and shall have all
of those powers enumerated
in section 11-109(d)
of the Condominium
Act. The Council shall
have a mailing address
c/o Shannon & Luchs
Company, 11119 Rockville
Pike, Rockville, Maryland
20852.
2. Voting.
Voting at all meetings
of the Council shall
be on the basis of
the number of votes
appurtenant to each
Unit, the number of
votes appurtenant
to each Unit being
specified in the Declaration.
Where the ownership
of a Unit is in more
than one person, then
the person who shall
be entitled to cast
the votes of that
Unit shall be the
person named in a
certificate signed
by all of the owners
of the Unit and filed
with the Secretary.
Such certificate shall
be valid until revoked
by a subsequent certificate.
Wherever the approval
or disapproval of
a Unit Owner is required
by the Condominium
Act, the Declaration
or these By-Laws,
such approval or disapproval
shall only be made
by the person who
would be entitled
to cast the votes
for the owners of
such Unit at any meeting
of the Council. Except
where a greater number
is required by the
Condominium Act, the
Declaration, or these
By-Laws, a majority
of the Unit Owners
present in person
or represented by
proxy is required
to adopt decisions
at any meeting of
the Council. If the
Developer owns or
holds title to one
or more Units, the
Developer shall have
the right at any meeting
of the Council to
cast the votes to
which such Unit is
entitled.
3. Place
of Meeting. Meetings
of the Council shall
be held at such place
as may be designated
by the Board of Directors
and stated in the
notice of the meeting.
4. Annual
Meeting. The first
annual meeting of
the Council shall
be held at a time
and place to be designated
by the Board of Directors:
(a) within one hundred
twenty (120) days
after deeds are delivered
on the sales by Developer
of sixty-one (61)
Units in the Condominium;
or (b) within ninety
(90) days after the
second anniversary
date of the day on
which the Declaration
and these By-Laws
are filed among the
land records of Montgomery
County, Maryland,
whichever date shall
first occur, or on
such earlier date
as may be established
by the Developer.
At such meeting the
persons designated
by the developer shall
resign as members
of the Board of Directors,
and all of the Unit
Owners, including
the Developer if the
Developer owns any
Unit or Units, shall
elect a new Board
of Directors. Thereafter,
the annual meetings
of the Council shall
be held at 8:00 pm
on the third Thursday
in the month of October
of each succeeding
year, if not a legal
holiday, and if a
legal holiday, then
on the next secular
day following. At
such meetings there
shall be elected by
ballot a Board of
Directors in accordance
with the requirements
of these By-Laws.
The Council may also
transact such other
business as may properly
come before it.
5. Special
Meetings. It shall
be the duty of the
President to call
a special meeting
of the Council if
so directed by resolution
of the Board of Directors
or upon a petition
signed and presented
to the Secretary by
Unit Owners with appurtenant
votes totaling not
less than 30 percent
of the total votes
appurtenant to all
of the Units in the
Condominium. The notice
of any special meeting
and the purpose thereof.
No business shall
be transacted at a
special meeting except
as stated in the notice.
6. Notice
of Meeting. It
shall be the duty
of the Secretary to
mail a notice of each
annual or special
meeting of the Unit
Owners, at least fifteen
(5) but not more than
thirty (30) days prior
to such meeting, stating
the purpose thereof,
as well as the time
and place where it
is to be held, to
each Unit Owner of
record, at such address
as each Unit Owner
shall have designated
by notice in writing
to the Secretary.
The mailing of a notice
of meeting in the
manner provided in
this section shall
be considered service
of notice.
7. Voting
Requirements.
A Unit Owner shall
be deemed to be in
"good standing" and
"entitled to vote"
at any annual meeting
or at any special
meeting of the Council
if, and only if, no
Statement of Condominium
Lien shall have been
filed against said
Owner's Unit, or if
the Owner of a Unit
on which a Statement
of Condominium Lien
has been filed shall
have fully paid all
due installments of
assessments made or
levied against him
and his Unit by the
Board of Directors
as hereinafter provided,
together with all
interest, costs, attorney's
fees, penalties and
other expenses, if
any, properly chargeable
to him and against
his Unit, prior to
the date fixed for
such annual or special
meeting and if, and
only if, said Unit
Owner has furnished
the Secretary with
his current mailing
address. The mortgagee
of any Unit shall
have the right to
assume the voting
rights of the Unit
Owner so long as the
Unit Owner's rights
have been suspended,
or in the event the
Unit Owner is in default
under his deed of
trust or mortgage.
All mortgages shall
have the right to
attend and participate
in all meetings of
the Council, but shall
not vote at such meetings
unless they have assumed
a Unit Owner's voting
rights pursuant to
the preceding sentence.
8. Proxies.
At all meetings of
the Council each Unit
Owner having the right
to vote shall be entitled
to vote in person,
or by proxy appointed
by an instrument in
writing subscribed
by such Unit Owner
for such meeting.
Such proxy shall only
be valid for such
meeting or subsequent
adjourned meetings
thereof and in no
event for more than
180 days following
its issuance. Proxies
must be filed with
the Secretary at least
two (2) days before
the time appointed
for each meeting in
the notice. Proxies
may be revoked by
written notice of
revocation filed with
the Secretary. A Unit
Owner may appoint
any other Unit Owner,
the Developer or the
Managing Agent, as
his proxy. In no case
may any Unit Owner
except the Developer,
its designee or the
Managing Agent, cast
the votes appurtenant
to more than one Unit
by proxy in addition
to the votes appurtenant
to his own Unit.
9. Quorum.
Except as may otherwise
be provided herein
or by statute, votes
appurtenant to Units
constituting a majority
of the votes appurtenant
to all Units shall
constitute a quorum
for the adoption of
decisions. If, however,
such quorum shall
not be present or
represented at any
meeting, the Unit
Owners entitled to
vote thereat, present
in person or represented
by proxy, shall have
power to adjourn the
meeting from time
to time, without notice
other than announcement
at the meeting, until
a quorum shall be
present or represented.
At such adjourned
meeting at which a
quorum shall be present
or represented, any
business may be transacted
which might have been
transacted at the
meeting originally
called.
10.
Council Action.
When a quorum is present
at any meeting, a
majority of the votes
represented and voting
shall decide any question
brought before such
meeting, unless the
question is one upon
which by express provision
of the Condominium
Act, the Declaration,
or these By-Laws a
different vote is
required, in which
case such express
provision shall govern.
11.
Order of Business.
The order of business
at all meetings of
the Council shall
be as follows:
(a) roll call;
(b) proof of notice
of meeting or waiver
of notice;
(c) reading of
minutes of preceding
meeting;
(d) reports of
officers;
(e) reports of
Board of Directors;
(f) report of committees;
(g) election of
inspectors of elections,
if applicable;
(h) election of
directors if applicable;
(i) unfinished
business; and
(j) new business.
12. Conduct of
Meeting. The President
shall preside over
all meetings of the
Council and the Secretary
shall keep the minutes
of the meeting and
record in a Minute
Book all resolutions
adopted by the meeting
as well as a record
of all transactions
occurring thereat.
Roberts Rules of Order
shall govern the conduct
of all meetings when
not in conflict with
the Declaration, these
By-Laws or the Condominium
Act.
ARTICLE
III
BOARD OF DIRECTORS
1. Powers
and Duties. The
affairs and business
of the Condominium
shall be managed by
a Board of Directors
(sometimes hereinafter
referred to as the
"Board") which shall
have all of the powers
and duties necessary
for the administration
of the affairs of
the Condominium and
may do all such acts
and things as are
not by the Condominium
Act, by the Declaration
or by these By-Laws
directed to be exercised
and one by the Council.
The Board of Directors
shall have the power
from time to time
to adopt any Rules
and Regulations deemed
necessary for the
enjoyment of the Condominium
provided such Rules
and Regulations shall
not be in conflict
with the Condominium
Act, the Declaration
or these By-Laws.
The Board of Directors
shall delegate to
one of its members
the authority to act
on behalf of the Board
of Directors on all
matters relating to
the duties of the
Managing Agent, if
any, which might arise
between meetings of
the Board of Directors.
In addition to the
duties imposed by
these By-Laws or by
any resolution of
the Council that may
hereafter be adopted,
the Board of Directors
shall have the power
to, and be responsible
for, the following:
(a) Preparation
and adoption of
an annual budget,
in which there shall
be established the
contribution of
each Unit Owner
to the Common Expenses.
(b) Making assessments
against Unit Owners
to defray the costs
and expenses of
the Condominium,
establishing the
means and methods
of collecting such
assessments from
the Unit Owners,
and establishing
the period of the
installment payment
of the annual assessment
for Common Expenses.
Unless otherwise
determined by the
Board of Directors,
the annual assessment
against each Unit
Owner for his proportionate
share of the Common
Expenses shall be
payable in equal
monthly installments,
each such installment
to be due and payable
in advance on the
first day of each
month for said month.
(c) Providing for
the operation, care,
upkeep, maintenance
and surveillance
of all of the Common
Elements and services
of the Condominium.
(d) Designating,
hiring and dismissing
the personnel necessary
for the maintenance
operation, repair
and replacement
of the Common Elements,
and providing services
for the Property,
and, where appropriate,
providing for the
compensation of
such personnel and
for the purchase
of equipment, supplies
and material to
be used by such
personnel in the
performance of their
duties, which -supplies
and equipment shall
be deemed the common
property of the
Council.
(e) Collecting
the assessments
against the Unit
Owners, depositing
the proceeds thereof
in a bank depository
which it shall approve,
and using the proceeds
to carry cut the
administration of
the Property.
(f) Making and
amending Rules and
Regulations respecting
the use of the Property.
(g) Opening of
bank accounts on
behalf of the Condominium
and designating
the signatories
required therefor.
(h) Making, or
contracting for
the making of, repairs,
additions, and improvements
to, or alterations
of, the property
and repairs to,
and restoration
of, the Property,
in accordance with
the other provisions
of these By-Laws,
after damage or
destruction by fire
or other casualty
(i) Enforcing by
legal means the
provisions of the
Declaration, these
By-Laws and the
Rules and Regulations
for the use of the
Property adopted
by it, and bringing
any proceedings
which may be instituted
on behalf of the
Unit Owners.
(j) Obtaining and
carrying insurance
against casualties
and liabilities,
as provided in Article
VI of these By-Laws,
and paying the premium
cost thereof.
(k) Paying the
cost of all services
rendered to the
Condominium and
not billed to owners
of individual Units.
(1)
Keeping books with
detailed accounts
of the receipts
and expenditures
affecting the Property,
and the administration
of the Condominium,
specifying the maintenance
and repair expenses
of the Common Elements
and any other expenses
incurred. The said
books and vouchers
accrediting the
entries thereupon
and all other records
kept by the Council
shall be available
for examination
and copying by any
Unit Owner, his
duly authorized
agents or attorneys,
at his expense,
after reasonable
notice during general
business hours on
working days at
the times and in
the manner that
shall be set and
announced by the
Board of Directors
for the general
knowledge of the
Unit Owners. All
books and records
shall be kept in
accordance with
generally accepted
accounting practices
on a consistent
basis, and the same
shall be audited
at least once a
year by an outside
auditor employed
by the Board of
Directors who shall
not be a 'resident
of the Condominium,
or a Unit Owner
therein. The cost
of such audit shall
be a Common Expense.
(m) To do such
other things and
acts not inconsistent
with the Condominium
Act and with the
Declaration which
it may be authorized
to do by a resolution
of the Council.
2. Managing Agent.
The Board of Directors
will employ for the
Condominium a professional
Managing Agent at
a compensation to
be approved by the
Board of Directors,
to perform such duties
and services as these
By-Laws and/or, the
Board of Directors
shall authorize, including,
but not limited to,
the duties-listed
in paragraphs (a),
(c), (d), (e), (h),
(j), (k), (1), and
Cm) of section 1 of
this Article III.
The Board of Directors
may delegate to the
Managing Agent all
of the powers granted
to the Board of Directors
by these By-Laws other
than the powers set
forth in paragraphs
(b), (f), (g) and,
to the extent not
otherwise provided
by these By-Laws,
(i), of section 1
of this Article III.
The Developer or an
affiliate of the Developer
may be employed as
Managing Agent. After
the initial Managing
Agent has been named,
the Board of Directors
shall not employ any
new Managing Agent
without thirty (30)
days prior written
notice to the institutional
holders of all first
mortgages; on the
Units, or (ii) employ
any new Managing Agent,
or enter into a new
management contract,
unless institutional
holders who hold first
mortgages on not less
than 51% of the Units
encumbered by first
mortgages approve
in writing the new
Managing Agent and
the proposed management
contract. The Managing
Agent shall at all
times be a professional
management company,
with expertise and
experience in the
operation of condominiums
and the Board of Directors
and/or Condominium
shall not undertake
self-management without
the unanimous written
approval of all mortgagees.
3. Number of Directors
and Initial Selection
of Board. The
number of directors
which shall constitute
the whole Board shall
be not less than three
(3) nor more than
five (5). The initial
Board of Directors
shall be comprised
of three (3) persons
designated by the
Developer and shall
serve until the election
of the Board of Directors
takes place at the
first annual meeting
of the Council as
provided in section
4 of Article II hereof.
The Developer's designees
need not be residents
of, nor Unit Owners
in the Condominium,
and the Developer
shall have the right
in its sole discretion
to replace such Directors
as may be so selected
and designated by
it, and to select
and designate their
successors if vacancies
occur for any reason.
4. Election and Term
of Office. At the
first annual meeting of
the Council five (5) directors
shall be elected. The
term of office of three
(3) directors shall be
fixed at one (1) year
and the term of office
of two (2) directors shall
be fixed at two (2) years.
At the expiration of the
initial term of office
of each respective director,
each successor shall be
elected at subsequent
annual meetings of the
Council to serve a term
of two (2) years. The
directors shall hold office
until their successors
have been elected and
hold their first meeting.
Notwithstanding anything
contained in these By-Laws
to the contrary, until
the first annual meeting
of the Council, the Developer
shall have the sole right
to select the Board of
Directors and to fill
any vacancy occurring
from the death, resignation
or removal of any director.
5. Organization
Meeting. The first
meeting of the members
of the Board of Directors
following the annual
meeting of the Council
shall be held within
ten (10) days after
the meeting at which
such directors were
elected at such place
as shall be fixed
by the directors at
the meeting at which
they were elected,
and no notice shall
be necessary to the
newly elected directors
in order legally to
constitute such meeting,
providing a majority
of the whole Board
shall be present thereat.
6. Regular Meetings.
Regular meetings of
the Board of Directors
may be held at such
time and place as
shall be determined,
from time to time,
by a majority of the
directors, but at
least four (4) such
meetings shall be
held during each fiscal
year after the first
annual meeting of
the Council . Notice
of regular meetings
of the Board of Directors
shall be given to
each director, personally
or by mail, telephone
or telegraph, at least
three (3) days prior
to the day named for
such meeting.
7. Special Meetings.
Special meetings of
the Board of Directors
may be called by the
President on three
(3) days' notice to
each director. Such
notice shall be given
personally or by mail,
telephone or telegraph,
and such notice shall
state the time, place
and purpose of the
meeting. Special meetings
of the Board of Directors
shall be called by
the President or Secretary
in like manner and
on like notice on
the written request
of at least two (2)
directors.
8. Waiver of Notice.
Before or at any meeting
of the Board of Directors,
any director may,
in writing, waive
notice of such meeting
and such waiver shall
be deemed equivalent
to the giving of such
notice. Attendance
by a director at any
meeting of the Board
shall be a waiver
of notice by him of
the time and place
thereof. If all the
directors are present
at any meeting of
the Board, no notice
shall be required
and any business may
be transacted at such
meeting.
9. Board of Director's
Quorum. At all
meetings of the Board
of Directors, a majority
of the directors shall
constitute a quorum
for the transaction
of business, and the
acts of the majority
of the directors present
at a meeting at which
a quorum is present
shall be the acts
of the Board of Directors.
If, at any meeting
of the Board of Directors,
there be less than
a quorum present,
the majority of those
present may adjourn
the meeting from time
to time. At any such
adjourned meeting,
any business which
might have been transacted
at the meeting as
originally called
may be transacted
without further notice.
10. Vacancies.
Vacancies in the Board
of Directors caused
by any reason other
than removal of a
director by a vote
of the Council shall
be filled by vote
of the majority of
the remaining directors,
at a special meeting
of the Board of Directors
held for that purpose
promptly after the
occurrence of any
such vacancy, even
though the directors
present at such meeting
may constitute less
than a quorum of the
Board; and each person
so elected shall be
a director until a
successor is elected
at the next annual
meeting of the Council
provided, however,
that any vacancy of
any director designated
by the Developer pursuant
to a right of the
Developer to make
such designation shall
be filled by the Developer.
11. Removal of
Directors. A director
may be removed with
or without cause,
and his successor
elected, at any duly
called regular or
special meeting of
the Council at which
a quorum is present,
by an affirmative
vote of a majority
of the votes represented
and voting. Any director
whose removal has
been proposed by the
Unit Owners shall
be given at least
ten (10) days' notice
of the calling of
the meeting and the
purpose thereof and
an opportunity to
be heard at the meeting.
12. Compensation.
No director shall
receive any compensation
from the Condominium
for acting as such.
13. Conduct of Meetings.
The President shall preside
over all meetings of the
Board of Directors and
the Secretary shall keep
a Minute Book of the Board
of Directors recording
therein all resolutions
adopted by the Board of
Directors and a record
of all transactions and
proceedings occurring
at such meetings. Roberts
Rules of Order shall govern
the conduct of the meetings
of the Board of Directors
when not in conflict with
the Declaration, these
By-Laws or the Condominium
Act.
14. Report of
Board of Directors.
The Board of Directors
shall present at each
annual meeting, and
when called for by
vote of the Council
at any special meeting
of the Council, a
full and clear statement
of the business and
condition of the Condominium.
15. Fidelity Bonds.
The Board of Directors
shall require that
all directors, officers,
trustees, volunteers,
agents (including
the Managing Agent)
and employees of the
Council handling or
responsible for funds
furnish adequate fidelity
bonds. The premiums
on such bonds shall
constitute a Common
Expense. The fidelity
bonds or insurance
shall narie tifle
Council as the named
insured and shall
be written in an amount
sufficient to provide
protection which shall
not be less than one
and one- half (1 1/2)
times the Condominium's
estimated operating
expenses and reserves.
16. Dispensing
with Vote. Any
action by the Board
of Directors required
or permitted to be
taken at any meeting
may be taken without
a meeting if all of
the members of the
Board of Directors
shall individually
or collectively consent
in writing to such
action. Such written
consent or consents
shall be filed with
the minutes of the
proceedings of the
Board of Directors.
17. Liability
of Board of Directors.
The members of the
Board of Directors
shall not be liable
to the Unit Owners
for any mistake of
judgment, negligence,
or otherwise except
for their own individual
willful misconduct
or bad faith. The
Unit Owners shall
indemnify and hold
harmless each of the
directors from and
against all contractual
liability to others
arising out of contracts
made by the Board
of Directors on behalf
of the Unit Owners,
the Council, or the
Condominium unless
any such contract
shall have been made
in bad faith or contrary
to the provisions
of the Declaration
or of these By-Laws.
It is intended that
the members of the
Board of Directors
shall have no personal
liability with respect
to any contract made
by them on behalf
of the Unit Owners,
the Council, or the
Condominium except
with respect any Percentage
Interest of a Unit
owned by a Director.
It is also intended
that the liability
of any Unit Owner
arising out of any
contract made by the
Board of Directors
or out of the aforesaid
indemnity in favor
of the members of
the Board of Directors
shall be in proportion
to his percentage
interest in the Common
Expenses and Common
Profits. Every agreement
made by the Board
of Directors or by
the Managing Agent
on behalf of the Unit
Owners, the Council,
or the Condominium
shall, if obtainable,
provide that the members
of the Board of Directors
or the Managing Agent,
as the case may be,
are acting only as
agents for the Unit
Owners and shall have
no personal liability
thereunder (except
as Unit Owners), and
that each Unit Owner's
liability thereunder
shall be limited to
such proportion of
the total liability
thereunder as his
percentage interest
in the Common Expenses
and Common Profits
bears to the percentage
interests in the Common
Expenses and Common
Profits of all Unit
Owners. The Unit Owners
shill indemnify any
person who was or
is a party or is threatened
to be made a party
to any threatened,
pending or completed
action, suit or proceeding
by reason of the fact
that he is or was
a Director, or officer,
against expenses (including
attorneys' fees),
judgments, fines and
amounts paid in settlement
incurred by him in
connection with such
action, suit or proceeding
if he acted in good
faith and in a manner
he reasonably believes
to be in_____________,
not opposed to the
best interests of
the Unit Owners.
ARTICLE
IV
OFFICERS
1. Designation.
The principal officers
of the Condominium
shall be a President,
a Vice President,
a Secretary, and a
Treasurer, all of
whom shall be elected
by the Board. The
Board may appoint
assistant secretaries
and such other officers
as in its judgment
may be necessary.
With the exception
of the President,
no officer need be
a member of the Board.
Two or more offices
may be held by the
same person, except
that the President
shall not hold any
other office.
2. Election of
Officers. The
officers of the Condominium
shall be elected annually
by the Board at the
organization meeting
of each new Board
and shall hold office
at the pleasure of
the Board. Any vacancy
in an office shall
be filled by the Board
at a regular meeting
or special meeting
called for such purpose.
3. Removal of
Officers. The
officers shall hold
office until their
respective successors
are chosen and qualify
in their stead. Any
officer elected or
appointed by the Board
of Directors may be
removed at any time
by the affirmative
vote of a majority
of the whole Board.
4. President.
The President shall
be the chief executive
officer; he shall
preside at meetings
of the Council and
the Board of Directors
and shall be an ex-officio
member of all committees;
he shall have general
and active management
of the business of
the Condominium and
shall see that all
orders and resolutions
of the Board are carried
into effect. To the
extent not inconsistent
with the laws of the
State of Maryland,
the Declaration, or
these By-Laws, he
shall have all of
the general powers
and duties which are
usually vested in
or incident to the
office of president
of a stock corporation
organized under the
laws of the State
of Maryland.
5. Vice President.
The Vice President
shall, in the absence
or disability of the
President, perform
the duties and exercise
the powers of the
President, and shall
perform such other
duties as the Board
of Directors shall
prescribe. If neither
the President nor
the Vice President
is able to act, the
Board of Directors
shall appoint a member
of the Board to do
so on an interim basis.
6. Secretary.
The Secretary shall
attend all sessions
of the Board of Directors
and all meetings of
the Council, count
all votes for which
inspectors of elections
have not been elected
at all meetings of
the Board of Directors
and of the Council
and record all votes
and the minutes of
all proceedings in
a book to be kept
by him for that purpose
and shall perform
like duties for committees
when required. He
shall give, or cause
to be given, notice
of all meetings of
the Council, the Board
and committees and
shall perform such
other duties as may
be prescribed by the
Board or President.
The Secretary shall
compile and keep current
at the principal office
of the Condominium,
a roster containing
a complete list of
the Unit Owners and
their last known post
office addresses to
which addresses notices
of all meetings of
the Council shall
be sent. This list
shall be open to inspection
by all Unit Owners
and other persons
lawfully entitled
to inspect the same,
at reasonable hours
during regular business
days. The Secretary
shall also keep current
and retain custody
of the minute book
of the Council, containing
the minutes of regular
annual and special
meetings of the Council
and all sessions of
the Board including
resolutions.
7. Treasurer.
The Treasurer shall
have the custody of
all funds and securities
that are not under
the control of the
Managing Agent, and,
with the assistance
of the Managing Agent,
shall keep full and
accurate records of
receipts and disbursements
and shall deposit
all moneys and other
valuable effects in
such depositories
as may be designated
by the Board. Be shall
disburse funds as
ordered by the Board
taking proper vouchers
for such disbursements,
and shall render to
the President and
directors, at the
regular meetings of
the Board, or whenever
they may require it,
an account of all
of his transactions
as Treasurer and of
the financial condition
of the Condominium.
The Treasurer shall
give a bond, the premium
therefor to be considered
a Common Expense,
in such sum, and with
such surety or sureties
as shall be satisfactory
to the Board for the
faithful performance
of the duties of his
office and for the
restoration, in case
of his death, resignation,
retirement or removal
from office, of all
books, papers, vouchers,
money and other property
of whatever kind in
his possession or
under his control.
8. Agreements,
Contracts, Deeds,
Checks, etc. All
agreements, contracts,
deeds, leases, checks
and other instruments
of the Condominium
for expenditures or
obligations of over
$1,000, shall be executed
by any two officers
of the Condominium
or by such other person
or persons as may
be designated by the
Board of Directors.
All such instruments
for expenditures or
obligations of less
than $1,000 may be
executed by any one
officer of the Condominium
or by such other person
that may be designated
by the Board of Directors.
9. Compensation
of Officers. No
officer shall receive
any compensation from
the Condominium for
acting as such.
ARTICLE
V
OPERATION OF THE PROPERTY
1. Determination
of Common Expenses
and Assessments Against
Unit Owners.
(a) Fiscal Year
The fiscal year
of the Condominium
shall consist of
the twelve month
period commencing
on July 1 of each
year and terminating
on June 30, except
that the first fiscal
year shall begin
on the date of organization
and terminate on
the first June 30
thereafter. The
fiscal (ear herein
established shall
be subject to change
by resolution of
the Board of Directors
should sound corporate
practice subsequently
so dictate.
(b) Preparation
and Approval of
Budget
Each year on or
before June 1st,
the Board of Directors
shall adopt a budget
for the Condominium
containing an estimate
of the total amount
which it considers
necessary to pay
the cost of maintenance,
management, operation,
repair and replacement
of the Common Elements
and any part of
the Units as to
which ii. is the
responsibility of
the Board of Directors
to maintain, repair
and replace, and
the cost of wages,
materials, insurance
premiums, services,
supplies and other
expenses that may
be declared to be
Common Expenses
by the Condominium
Act, the Declaration
these By-Laws or
resolution of the
Council, and which
will be required
during the ensuing
fiscal year for
the administration,
operation, maintenance
and repair of the
Property and the
rendering to the
Unit Owners of all
related services.
Such budget shall
also include such
reasonable reserves
as the Board of
Directors considers
necessary for the
purposes hereinafter
set forth. The Board
of Directors shall
make reasonable
efforts to send
to each Unit Owner
a copy of the budget,
in a reasonably
itemized form which
sets forth the amount
of the Common Expenses
payable by each
Unit Owner, at least
15 days in advance
of the fiscal year
to which the budget
applies. The said
budget shall constitute
the basis for determining
each Unit Owner's
assessment for the
Common Expenses
and reserves of
the Condominium.
(c) Assessment and
Payment of Common Expenses
The total amount of
the estimated funds
required for the operation
of the Property set
forth in the budget
for the fiscal year
adopted by the Board
of Directors shall be
assessed against each
Unit Owner in proportion
to his respective percentage
interest in the Common
Expenses and Common
Profits. On or before
the first day of each
fiscal year, and the
first day of each of
the succeeding eleven
(11) months in such
fiscal year, each Unit
Owner shall be obligated
to pay to the Board
of Directors or Managing
Agent (as determined
by the Board of Directors),
one-twelfth (1/12) of
the assessment for such
fiscal year made pursuant
to the foregoing provisions.
Within sixty (60) days
after the end of each
fiscal year, the Board
of Directors shall supply
to all Unit Owners an
itemized accounting
of the common Expenses
for such fiscal year
actually incurred and
paid and all sums added
to any reserve funds,
together with a tabulation
of the amounts collected
pursuant to the budget
adopted by the Board
of Directors for such
fiscal year, and showing
the net amount over
or short of the actual
expenditures plus reserves.
Any amount accumulated
in excess of the amount
required for actual
expenses and reserves
and any Common Profits
shall, in the discretion
of the Board of Directors,
either be returned to
the Unit Owners in accordance
with each Unit Owner's
percentage interest
in Common Expenses and
Common Profits be credited
according to each Unit
Owner's percentage interest
in Common Expenses and
Common Profits to the
next monthly installments
due from Unit Owners
under the current fiscal
year's budget, until
exhausted, or be used
for any other purpose
as the Board of Directors
decides, provided such
use is for the benefit
of the Condominium,
the Council or the Unit
Owners. Any net shortage
shall, if the Board
of Directors deems it
advisable, be added
according to each Unit
Owner's percentage interest
in Common Expenses and
Common Profits to the
installments due in
the succeeding six (6)
months after the rendering
of the accounting.
(d) Reserve Fund
for Replacements
The Board of Directors
shall establish and
maintain a reasonable
fund for capital improvements
and replacements, by
providing for such a
reserve fund in the
budget, segregating
such reserve fund on
the books of the Condominium,
and allocating and paying
monthly to such reserve
fund one-twelfth (1/12th)
of the total amount
budgeted for such reserve
fund for the current
fiscal year. The portion
of the Unit Owner's
assessments paid into
such reserve fund shall
be conclusively deemed
to be contributions
t the capital of the
Condominium by the Unit
Owners. Such reserve
find may be expended
solely for the purpose
of capital improvements
and replacements, and
not for current maintenance
and repair. If for any
reason, including non-payment
of any Unit Owner 5
assessment, such reserve
fund is inadequate to
defray the cost of a
required capital improvement
or replacement, the
Board of Directors may
at any time levy a further
assessment, which shall
be assessed against
the Unit Owners according
to their respective
percentage interests
in the Common Expenses
and Common Profits and
which may be payable
into such reserve fund
in a lump sum or in
installments as the
Board of Directors may
determine.
The Board of Directors
shall serve notice of
any such further assessment
on all Unit Owners by
a statement in writing
giving the amount and
reasons therefore, and
such further assessments
shall, unless otherwise
specified in the notice,
become effective with
the next monthly payment
which is due more than
ten (10) days after
the delivery or mailing
of such notice of further
assessment. All Unit
Owners shall be obligated
to pay the adjusted
monthly amount or, if
the additional assessment
is not payable in installments,
the amount of such assessments.
(e) Special
Assessments
In addition to the
assessments authorized
above, the Board
of Directors may
levy, as a contribution
to the capital of
the Condominium,
a special assessment,
for the purpose
of defraying the
cost of any unexpected
repair or other
non-recurring contingency,
or to meet any deficiencies
occurring from time
to time. The fund
resulting from said
special assessments
shall be segregated
on the books of
the Condominium
and expended solely
for the purposes
set forth in the
preceding sentence.
Any special assessments
shall be assessed
and collected in
the same manner
set forth in paragraph
(d) of this section
1 with respect to
additional assessments
payable to the reserve
fund for replacements.
(f) Initial
Budget
When the first Board
of Directors takes
office, it shall
determine the budget,
is defined in this
section 1 for the
period commencing
upon the sale of
the first Unit by
the Developer and
ending on the last
day of the fiscal
year in which their
election occurs.
Assessment shall
be levied against
the Unit Owners
during said period
as provided in paragraph
(C) of this section
1.
(g) Effect of
Failure to Prepare
or Adopt Budget
The failure or delay
of the Board of
Directors to prepare
or adopt the annual
budget for any fiscal
year shall not constitute
a waiver or release
in any manner of
Unit Owner's obligation
to pay his' allocable
share of the Common
Expenses as herein
provided, whenever
the same shall be
determined, and
in the absence of
any annual budget
or adjusted budget,
each Unit Owner
shall continue to
pay the monthly
charge at the then
existing monthly
rate (including
arty special assessment
which may have been
levied, in accordance
with the terms of
such levy) established
for the previous
fiscal period until
the monthly payment
which is due more
than ten (10) days
after such new annual
or adjusted budget
shall have been
mailed or delivered.
(h) Accounts
All sums collected
by the Board of
Directors with respect
to assessments against
the Unit Owners
may be commingled
into a single fund,
but shall be held
for each Unit Owner
in accordance with
his percentage interest
in Common Expenses
and Common Profits.
(i) Changes
in Assessment and
Collection Procedures
Any provisions governing
the method of determining
and collecting assessments
contained in these
By-Laws or elsewhere
may only be modified
or amended with
the consent of all
mortgagees.
2. Payment of
Common Expenses.
All Unit Owners shall
be obligated to pay
the Common Expenses
assessed by the Board
of Directors pursuant
to the provisions
of section 1 of this
Article V as such
assessments come due.
No Unit Owner may
exempt himself from
liability for his
contribution toward
Common Expenses by
waiver of the use
of enjoyment of any
of the Common Elements
or by abandonment
of his Unit. No Unit
Owner shall be liable
for the payment of
any part of the Common
Expenses assessed
against his Unit which
comes due subsequent
to a sale, transfer
or other conveyance
by him of such Unit.
The purchaser of a
Unit shall be jointly
and severally liable
with the selling Unit
Owner for all unpaid
assessments against
the latter for his
proportionate share
of the Common Expenses
for which a statement
of Condominium Lien
has been recorded
up to the time of
the conveyance, without
prejudice to the purchaser's
right to recover from
the selling Unit Owner
the amounts paid by
the purchaser therefor;
provided, however,
that if a mortgagee
of a first mortgage
of record or other
purchaser of a Unit
obtains title to the
Unit as a result of
foreclosure of a first
mortgage, such purchaser,
its successors and
assigns shall not
be liable for, and
such Unit shall not
be subject to, a lien
for the payment of
Common Expenses assessed
prior to the acquisition
of title to such Unit
by such purchaser
pursuant to the foreclosure
sale. Such unpaid
share of Common Expenses
assessed prior to
the acquisition of
title to such Unit
by such purchaser
pursuant to the foreclosure
sale shall be collectible
from all Unit Owners,
including the purchaser
at the foreclosure
sale, in proportion
to their respective
percentage interests
in Common Expenses
and common Profits.
3. Collection
of Assessments.
The Board of Directors
shall take proper
action to collect
any assessments for
Common Expenses due
from any Unit Owners
which remain unpaid
for more than sixty
(60) days from the
due date for payment
thereof.
4. Statement of
Unpaid Assessments.
The Board of Directors
shall promptly provide
any Unit Owner or
mortgagee requesting
the same in writing,
with a written statement
of all unpaid assessments
for Common Expenses
due from such Unit
Owner.
5. Maintenance
and Repair.
(a) By the Board
of Directors
The Board of Directors
shall be responsible
for the maintenance,
repair and replacement
(unless necessitated
by the negligence,
misuse or neglect
of a Unit Owner,
or of a person gaining
access with said
Unit Owner's actual
or implied consent,
in which case such
expense shall be
charged to such
Unit Owner), of
the following the
cost of which shall
be charged to all
Unit Owners a Common
Expense:
(1) All of the
Common Elements,
whether located
inside or outside
of the Units.
(2) All exterior
walls and exterior
surfaces (including
the maintenance
and painting of
the exterior surface
of the front door
or each Unit opening
onto the corridor
of the Building;
the roof, party
walls and any
other portions
of the Units which
contribute to
the support of
the Building,
such as the outside
walls of the Building
and all fixtures
on the exterior
thereof, the boundary
walls of Units,
floor slabs, and
load-bearing columns;
but excluding,
however, the interior
surfaces of all
walls, floors
and ceilings of
the Units.
(3) The sanitary
and storm sewer
systems and appurtenances;
all water, electric,
plumbing and telephone
lines, facilities
and systems that
are deemed Common
Elements, including
all conduits,
ducts, plumbing,
wiring and other
facilities for
the furnishing
of all utility
services into
two or more Units,
but excluding
therefrom all
plumbing, heating
and electrical
appliances, fixtures,
systems and parts
thereof which
are enjoyed by
only a single
Unit and are located
solely within
the boundaries
of an individual
Unit; the television
master antenna
system, if any
and all roof drainage
pipes, gutters
and leaders.
(4) All incidental
damage caused
to any Unit by
such work as may
be done or caused
to be done by
the Board of Directors
in accordance
herewith.
(b) By the Unit
Owner
Except for the portions
of his Unit required
to be maintained,
repaired and replaced
by the Board of
Directors, each
Unit Owner shall
be responsible for
the maintenance,
repair and replacement,
at his own expense,
of the following:
any interior walls,
interior ceilings
and floors; kitchen
and bathroom fixtures
and equipment, including
refrigerator, oven,
range, disposal;
and those parts
of the heating and
air conditioning,
plumbing and electrical
systems which are
a part of and serve
his Unit and no
other. Each Unit
Owner shall be responsible
for performing the
normal maintenance
for any Limited
Common Element stoop,
porch steps, and
foyer areas adjacent
to his Unit and
such patio areas
adjacent to the
rear of the Unit
as may be assigned
by the Board of
Director including
keeping it in a
clean and sanitary
condition, and shall
make, at his own
expense, all repairs
thereto caused or
permitted by his
negligence, misuse
or neglect. Each
Unit Owner shall
keep the interior
of his Unit and
its equipment and
appurtenances in
good order, condition
and repair and in
a clean and sanitary
condition, and shall
do all redecorating,
painting and varnishing
which may at any
time be necessary
to maintain the
good appearance
and condition of
his Unit. In addition,
each Unit Owner
shall be responsible
for all damage to
any and other Units
or to the Common
Elements resulting
from his failure
to make any of the
repairs required
to be made by him
by this section.
Each Unit Owner
shall perform his
responsibility in
such manner as shall
not unreasonably
disturb or interfere
with the other Unit
Owners. Each Unit
Owner shall promptly
report to the Board
of Directors or
the Managing Agent
any defects or need
for repairs for
which the Board
of Directors is
responsible.
(c) Manner of
Repair and Replacement
All repairs and
replacements shall
be substantially
similar to the original
construction by
Developer, and shall
be of first class
quality. The method
of approving payment
vouchers for all
repairs and replacement
shall be determined
by the Board of
Directors.
6. Additions,
Alterations or Improvements
by Board of Directors.
Whenever in the judgment
of the Board of Directors
the Common Elements
shall require additions,
alterations or improvements
costing in excess
of Five Thousand Dollars
($5,000) during any
period of twelve (12)
consecutive months,
and the making of
such additions, alterations
or improvements shall
have been approved
by a majority of the
Unit Owners, the Board
of Directors shall
proceed with such
additions, alterations
or improvements and
shall assess all Unit
Owners for the cost
thereof as a Common
Expense. Any additions,
alterations or improvements
costing Five Thousand
Dollars ($5,000) or
less during any period
of twelve (12) consecutive
months may be made
by the Board of Directors
without approval of
the Unit Owners and
the cost thereof shall
constitute part of
the Common Expenses.
Notwithstanding the
foregoing, if, in
the opinion of no:
less than 80 percent
of the members of
the Board of Directors,
such additions, alterations
or improvements are
exclusively or substantially
exclusively for the
benefit of the Unit
Owner or Unit Owners
unanimously requesting
the same, such requesting
Unit Owners shall
be assessed therefor
in such proportion
as they jointly approve
or, if they are unable
to agree thereon in
such proportions as
may be determined
by the Board of Directors.
7. Additions, Alterations
or Improvements by Unit
Owners. No Unit Owner
shall make any structural
addition, alteration or
improvement in or to his
Unit or alter the appearance
of the exterior of the
Building in which his
Unit is located without
the prior written consent
thereto of the Board of
Directors. Absent the
adoption of specific Rules
and Regulations by the
Board of Directors concerning
the following, no Unit
Owner shall paint or alter
the appearance of any
exterior surface of the
Building, including the
doors, windows, foyer
areas, or pave or otherwise
alter the elevation of
a patio without the prior
written consent thereto
of the Board of Directors.
The Board of Directors
shall be obligated to
answer any written request
by a Unit Owner for approval
of a proposed structural
addition, alteration,
modification or improvement
or alteration of the exterior
appearance in such Unit
Owner's Unit or Building
within forty-five (45)
days after such request,
and its failure to do
so within the stipulated
time shall constitute
a consent by the Board
of Directors to the proposed
addition, alteration or
improvement. Any application
to any governmental authority
for a permit to make an
addition, alteration or
improvement in or to any
Unit shall be executed
by the Board of Directors
only, without however,
incurring any liability
on the part of the Board
of Directors or any of
them to any contractor,
subcontractor or materialman
on account of such addition,
alteration or improvement,
or to any person having
any claim for injury to
person or damage to property
arising therefrom. The
provisions of this section
7 shall not apply to Units
owned by the Developer
until such Units have
been initially sold by
the Developer and title
to same has been conveyed
by Developer.
8. Restrictions
of Use of Units.
To assist the Condominium
in providing for congenial
occupancy and the
protection of the
value of the Units,
it is necessary that
the Board of Directors
have the right and
authority to exercise
reasonable controls
over the use of the
Units. Violation of
the following enumerated
prohibitions shall
not be permitted,
and the Board of Directors
is hereby authorized
to take all steps
necessary to prevent
or discontinue any
violations thereof,
all at the expense
of the violator:
(a) No Unit Owner
or other resident
of the Condominium
shall post any advertisements
or posters of any
kind in or on the
Property except:
(i) temporary
real estate signs
not more than
four (4) square
feet in area advertising
a Unit for sale
or rent,
(ii) temporary
signs in connection
with repair or
renovation of
a Unit, or
(iii) as authorized
by the Board.
This restriction
shall not apply
to advertisements,
signs or posters
utilized by the
Developer, or
its agents, in
selling the Units
or to the institutional
holder of any
first mortgage
which comes into
possession of
any Unit by reason
of any remedies
provided for in
its mortgage,
foreclosure of
any mortgage or
any deed of trust
or other proceedings
or conveyance
in lieu of foreclosure.
(b) All Units shall
be used only for
private residential
purposes or professional
purposes permitted
by zoning regulations,
except for such
temporary other
uses as ma" be permitted
by the Board of
Directors from time
to time. This provision
shall not, however,
be so construed
as to prevent the
Developer from using
any Units which
Developer owns for
promotion marketing
or display purposes
as model units or
sales offices, or
from leasing arty
Units which Developer
owns, subject to
all of the provisions
of the Declaration
and these By-Laws.
(c) No clothing,
laundry, rugs or
wash shall be hung
from or spread upon
or from any window
or exterior portion
of a Unit or in
or upon any Common
Element.
(d) No animal,
other than common
household pets,
shall be kept or
maintained on the
Property, nor shall
common household
pets be kept, bred
or maintained for
commercial purposes
on the Property.
Pets shall not be
permitted outside
of Units unless
they are accompanied
by an adult person
and carried or leashed.
Any Unit Owner who
keeps or maintains
any pet in the Condominium
shall be responsible
and may be assessed
b, the Bard of Directors
for any costs incurred
by the Council in
enforcing the Rules
and Regulations
prescribed or to
be prescribed by
the Board of Directors
for the control
and regulation of
pets in the Condominium.
(e) Unit Owners,
residents and lessees
shall exercise extreme
care to avoid unnecessary
noise or the use
of musical instruments,
radios, television
and amplifiers that
may disturb other
Unit Owners.
(f) No nuisances
shall be allowed
on tie Property
nor shall any use
or practice be allowed
which is a source
of annoyance to
its residents or
which interferes
with the peaceful
possession or proper
use of the Condominium
by its residents.
(g) No Unit Owner,
resident or lessee
shall install wiring
for electrical or
telephone installation,
television antennae,
or other equipment,
which protrudes
through the walls
or the roof of any
Building or is otherwise
visible on the exterior
of the Buildings
except as presently
installed or as
authorized by the
Board.
(h) No Unit or
Common Elements
of the Condominium
may be used for
any unlawful, immoral
or improper purpose.
(i) A Unit Owner
shall not place
or cause to be placed
in the public walkways,
driveways, parking
areas or other Common
Elements any bicycles,
furniture, packages
or objects of any
kind. The public
walkways and driveways
shall be used for
no purpose other
than for normal
transit through
them.
(j) No Unit Owner,
resident or lessee
shall direct or
engage any employee
of the Condominium
on any private business
of such Unit Owner,
resident or lessee,
nor shall he direct,
supervise or in
any manner attempt
to assert control
over any such employee.
(k) Passenger automobiles
shall be parked
only in the parking
areas designated
therefor. No other
vehicles shall be
parked or stored
on the Property
except in such areas,
if any, as may be
designated by the
Board of Directors
by resolution or
in the Rules and
Regulations. No
inoperable, unlicensed
or abandoned motor
vehicle of any type
shall be parked
or stored upon the
Property, and no
portion of the Property
shall be used for
the repair, overhaul,
painting or work
of a similar nature
of any motor vehicle.
(1)
No activity shall
be done or maintained
in any Unit or upon
any Common Elements
which will increase
the rate of insurance
on any Unit or the
Common Elements
or result in the
cancellation of
insurance thereon,
unless such activity
is first approved
in writing by the
Board of Directors.
No waste will be
committed in the
Common Elements.
(m) Nothing shall
be done in any Unit
or in, on, or to
the Common Elements
which will impair
the structural integrity
of the Property,
or which would structurally
change any Building
or the improvements
thereon except as
provided in these
By-Laws. Nothing
shall be altered
or constructed in
or removed from
the Common Elements,
except upon the
written consent
of the Board of
Directors.
(n). Except for
the rights reserved
to the Developer
in these By-Laws,
no industry, business
or trade other than
any professional
uses permitted by
zoning regulations,
commercial, religious,
educational, or
otherwise, designed
for profit, altruism,
exploration, or
otherwise, shall
be conducted, maintained
or permitted on
any part of the
Condominium.
(o) No portion
of a Unit (other
than the entire
Unit) may be rented,
and no transient
tenants may be accommodated
therein.
(p) Any Unit Owner
may lease his Unit
provided that
(i) a fully conformed
copy of said lease
or renewal thereof
shall be delivered
to the Board of
Directors within
ten (10) days
of execution;
(ii) any such
lease shall be
consistent with
the provisions
of the Declaration,
the By-Laws, and
the Rule; and
Regulations; and
(iii) the Board
of Directors shall
have the power
to terminate such
lease and/or to
bring summary
proceedings to
evict the tenant
in the name of
the lessor thereunder
in the event of
a default by the
tenant in the
performance of
such lease. The
restrictions of
this paragraph
shall not apply
to Developer or
any mortgagee
who comes into
possession of
a Unit pursuant
to a foreclosure
sale, other judicial
sale or any transfer
or conveyance
in lieu of foreclosure.
In the use of
the Common Elements
of the Condominium,
Unit Owners shall
obey and abide
by all valid laws,
ordinances and
zoning and other
governmental regulations
affecting the
same and all applicable
rules and regulations
adopted by the
board. The Common
Elements shall
be used only for
furnishing the
services and facilities
for which they
are reasonably
suited and which
are incident to
the use and occupancy
of the Units
9. Right of Access.
A Unit Owner shall
grant a right of access
to his limit to the
Board of Directors
or the Managing Agent
or to any other person
authorized by the
Board for the purpose
of making inspections
or for the purpose
of correcting any
condition originating
in his Unit and threatening
another Unit or a
Common Element, or
for the purpose of
performing installations,
alterations or repairs
to the mechanical
or electrical services
or other Common Elements
in his Unit or elsewhere
in the Buildings,
or to Correct any
condition which violates
the provisions of
any mortgage covering
another Unit, provided
that requests for
entry are made in
advance and that any
such entry is at a
time reasonably convenient
to the Unit Owner.
In case of any emergency,
such right of entry
shall be immediate
whether the Unit Owner
is present at the
time or not.
10. Rules and
Regulations. Rules
and Regulations concerning
the operation and
use of the Common
Elements may promulgated
and amended by the
Board of Directors,
provided such Rules
and Regulations are
not contrary to or
inconsistent with
the Condominium Act,
the Declaration or
the By-Laws. Copies
of the Rules and Regulations
shall be furnished
by the Board of Directors
to each Unit Owner
prior to the time
when the same shall
become effective.
11. Electricity,
Water Charges and
Sewer Rents. Electricity
and gas shall be supplied
by the public utility
companies serving
the area directly
to each Unit. Electricity
and gas charges will
be separately metered
for each Unit and
each Unit Owner shall
be responsible for
payment of all charges
and, rents for utilities
service to his Unit.
The Board of Directors
shall pay all bills
for electricity and
gas charges for the
Common Elements and
all water and sewer
charges as a Common
Expense.
ARTICLE
VI
INSURANCE
1. Authority.
Except as otherwise
provided in Section
4 of this Article
VI, all insurance
policies relating
to the Condominium
shall be purchased
by the Board of Directors
for the benefit of
the Unit Owners and
their respective mortgagees,
as their interests
may appear, which
insurance shall be
governed by the following
provisions to the
extent obtainable
or possible:
(a) The Board shall
attempt to obtain
a single master
policy covering
physical damage
for the Condominium
under which the
insurance company
will issue 1o each
Unit Owner, a certificate
or sub-policy specifying
the portion of the
master policy allocated
to each Unit Owner's
Unit, if such a
policy is reasonably
available.
(b) The master
policy described
in subparagraph
(a) above shall
contain a standard
mortgagee clause
in favor of each
mortgagee of a Unit
to the extent of
the portion of the
coverage of the
master policy allocated
to such Unit, which
shall provide that
the loss, if any,
thereunder shall
be payable to such
mortgagee and the
Unit Owner, as their
interests may appear,
subject, however,
to the loss payment
and adjustment provision
in favor of the
Board of Directors
and the Insurance
Trustee contained
in sections 5 and
6 of this Article
VI.
(c) The net proceeds
from insurance against
physical damage
to Common Elements
shall be payable
to the Board of
Directors if less
than $25,000 and
if more than $25,000
shall be payable
to the Insurance
Trustee designated
in section 5 of
this Article. A
duplicate original
of the master policy,
all renewals thereof,
and all sub-policies
or certificates
issued thereunder,
together with proof
of payment of premiums,
shall be delivered
to all mortgagees
of Units at least
10 days prior to
the expiration of
the then current
policies.
2. Coverage. The
Condominium shall be insured,
to the extent available,
against casualty in a
minimum amount equal to
the maximum insurable
replacement value (i.e.
100% of replacement value
of the insurable portions
of the Condominium, without
deduction for depreciation)
as determined annually
by the Board with assistance
of the insurance company
affording such coverage.
The policy shall cover
all the improvements on
the Property except those
made by a Unit Owner at
his expense and shall
contain a "condominium
replacement cost" endorsement.
To the extent obtainable,
such coverage shall afford
protection against:(i)
loss or damage by fire,
vandalism, malicious mischief,
windstorm, and other hazards
covered by the standard
extended coverage endorsement;
and (ii) such other risks
as shall customarily be
covered with respect to
projects similar in construction,
location and use or as
the Board in its sound
discretion may deem advisable.
Such coverage shall insure
the Buildings (including
all of the Units and the
floor coverings, bathroom
and kitchen fixtures,
and cabinets, initially
furnished or installed
therein by Developer,
together with all air
conditioning, heating
and other equipment, but
not including any furniture,
furnishings, fixtures,
equipment or other personal
property supplied or installed
by Unit Owners and other
Condominium property including
all personal property
included in the Common
Elements.
The Board of Directors
shall also obtain and
maintain, to the extent
obtainable, public liability
and property damage insurance
in such limits as the
Board may from time to
time determine, insuring
the Council, each member
of the Board of Directors,
the Managing Agent, and
each Unit Owner against
any liability to the public
or to the Unit Owners
(and their invitees, agents
and employees) arising
out of, or incident to,
the ownership and/or use
of the Condominium, or
any portion thereof, other
than individual Units.
All liability insurance
shall be issued on a comprehensive
liability basis and shall
contain a cross liability
endorsement under which
the rights of a named
insured under the policy
shall not be prejudiced
with respect to his action
against another named
insured. The Board shall
review such limits once
each year, but in no event
shall such insurance be
less than $1,000,000 with
respect to any one accident
or occurrence.
It shall be the responsibility
of each Unit Owner to
obtain, at his own expense,
liability insurance with
respect to his ownership
and/or use of his Unit,
and the Board shall not
be responsible for obtaining
such insurance. Workmen's
Compensation Insurance
shall be obtained where
necessary to meet the
requirements of law. In
addition to the foregoing,
the Board of Directors
may obtain such additional
insurance coverage as
it may in its sole discretion
deem advisable and appropriate.
3. Limitations.
Any insurance obtained
pursuant to the requirements
of this Article shall
be subject to the
following provisions
to the extent obtainable
or possible:
(a) All policies
shall be written
with the company
or companies licensed
to do business in
the State of Maryland
and holding a rating
of "AAA" or better
in Best's Insurance
Reports and a policyholders'
rating of "A" or
better.
(b) In no event
shall the insurance
coverage obtained
and maintained pursuant
to the requirements
of this Article
VI be brought into
contribution with
insurance purchased
individually by
any of the Unit
Owners or their
mortgagees, are
herein permitted,
and any other insurance"
or similar clause
in any policy obtained
by the Council pursuant
to the requirements
of this Article
VI shall exclude
such policies from
consideration.
(c) All policies
shall provide that
such policies may
not be cancelled
or substantially
modified without
at least thirty
(30) days prior
written notice to
any and all insureds
named thereon, including
any and all mortgagees.
(d) All policies
of casualty insurance
shall provide that,
notwithstanding
any provisions thereof
which give the carrier
the right to elect
to restore or repair
damage or reconstruct
in lieu of making
a cash settlement,
such option shall,
not be exercisable
without the prior
written approval
of the Board of
Directors and mortgagees,
when in conflict
with the provisions
of these By-Laws
or the provisions
of the Condominium
Act.
(e) All policies
shall provide that
until the expiration
of thirty (30) days
after the insuror
gives notice in
writing to the mortgagee
of any Unit, the
mortgagee's insurance
coverage will not
be affected or jeopardized
by any act or conduct
of the Unit Owner
of such Unit, the
other Unit Owners,
the Board of Directors,
or any of their
agents, employees
or household members,
nor cancelled for
non-payment of premiums.
(1)
All policies shall
contain a waiver
if subrogation by
the insurer as to
any and all claims
against the Unit
Owners and members
of their households,
the Council, the
Board, the Managing
Agent, and their
respective agents,
and of any defenses
based upon co-insurance
or invalidity arising
from the acts of
the insured.
(g) Each of the
policies of insurance
obtained by the
Council shall contain
provisions
(i) that they
shall not be prejudiced
by any act or
neglect of any
Occupants or Unit
Owners when such
act or neglect
is not within
the control of
the insured, or
Unit Owners collectively,
and
(ii) that the
____ shall not
be prejudiced
by the failure
of the insured,
or Unit Owners
collectively,
to comply with
any warranty or
condition with
regard to any
portion of the
Condominium over
which the insured,
or Unit Owners
collectively have
no control.
4. Individual
Policies. Any
Unit Owner and any
mortgagee may obtain
at his own expense
additional insurance
(including a "condominium
unit-owner's endorsement"
for improvements and
betterments to a Unit
made or acquired at
the expense of the
Unit Owner). Such
insurance should contain
the same waiver of
subrogation provision
as that set forth
Ln section 3(f) of
this Article VI. It
is recommended that
each Unit Owner obtain,
in addition to the
insurance hereinabove
provided to be obtained
by the Board of Directors,
a "Tenant's Homeowners
Policy", or equivalent,
to insure against
loss or damage to
personal property
used or incidental
to the occupancy of
the Unit, additional
living expense, vandalism
or malicious mischief,
theft, personal liability
and the like. Such
policy should include
a "condominium unit-owner's
endorsement" covering
losses to improvements
and betterments to
the Unit made or acquired
at the expense of
the Unit Owner. No
Unit Owner shall maintain
insurance coverage
which will tend to
decrease the amount
which the Council
may realize under
any insurance policy
which it may -have
in force at any particular
time; the Board of
Directors may require
that each Unit Owner
file with the Managing
Agent a copy of each
individual policy
of insurance purchased
by the Unit Owner
within thirty (30)
days after its purchase;
the Board may also
require that each
Unit Owner notify
the Council of all
improvements made
by him to his Unit
having a value in
excess of $1,000.
5. Insurance Trustee.
(a) The Board of
Directors shall
have the right to
designate a bank,
trust company or
other institutional
lender doing business
in the State of
Maryland whose accounts
or deposits are
insured or guaranteed
by an agency of
the United States
of America, as the
Insurance Trustee,
and all parties
beneficially interested
in such insurance
coverage shall be
bound thereby. The
Insurance Trustee
at the tine of deposit
of such policies
and endorsements
shall acknowledge
that the policies
and any proceeds
thereof will be
held in accordance
with the terms of
these By-Laws. If
the Board of Directors
fails to appoint
an Insurance Trustee,
or should the Insurance
Trustee' resign
and no new Insurance
Trustee be designated,
the Board of Directors
shall act as Insurance
Trustee, provided,
that no provision
of this section
5 relieving the
Insurance Trustee
of liability or
of any obligation
shall relieve the
Board of Directors
of any such obligation
or liability if
it acts as Insurance
Trustee.
(b) An Insurance
Trustee other than
the Board of Directors
shall not be liable
for payment of premiums,
the renewal of the
policies, the sufficiency
of coverage, the
form or contents
of the policies,
the correctness
of any amounts received
by it on account
of the proceeds
of any insurance
policies, nr for
the failure to collect
any insurance proceeds.
The sole duty of
the Insurance Trustee
shall be to receive
such proceeds as
are paid to it and
to hold the same
in trust for the
purposes stated
herein, for the
benefit of the Unit
Owners and their
respective mortgagees.
6. Board of Directors
as Agent. The
Board of Directors
is hereby irrevocably
appointed the agent
for each Unit Owner
and for each mortgagee
of a Unit and for
each owner of any
other interest in
the Condominium to
adjust all claims
arising under insurance
policies purchased
by the Board of Directors
and to execute and
deliver releases upon
the payment of claim.
7. Premiums.
Premiums upon all
insurance policies
purchased by the Board
of Directors, and
all fees and expenses
of the Insurance Trustee,
shall be deemed to
be a Common Expense.
8. Endorsements,
etc. The Board
of Directors, at the
request of any Unit
Owner or mortgagee,
shall promptly forward
to such party:
(a) an endorsement
to any of the aforementioned
insurance policies
showing the interest
of such parties
as it may appear;
(b) certificates
of insurance relating
to any of such policies,
and
(c) copies of any
such policies, duly
certified by the
insurer or its duly
authorized agent.
ARTICLE
VII
REPAIR AND RECONSTRUCTION
AFTER FIRE OR OTHER
CASUALTY
1. When Repair
and Reconstruction
are Required.
Subject to the provisions
of section 4 of this
Article VII, in the
event of damage to
or destruction of
any Building, portion
of a Building, or
Common Element as
a result of fire or
other casualty, the
Board of Directors
shall arrange for
and supervise the
prompt repair and
restoration of any
portion of the Condominium
so damaged or destroyed
(including any damaged
Units, and the floor
coverings, kitchen
and bathroom fixtures
appliances and cabinets
initially installed
therein by the Developer
but not including
any furniture, furnishings,
fixtures, equipment
or other personal
property supplied
or installed by unit
Owners in the Units).
Notwithstanding the
foregoing, each Unit
Owner shall have the
right to supervise
the redecorating of
his own Unit.
2. Procedure for
Reconstruction and
Repair.
(a) Immediately
after a fire or
other casualty causing
damage to any Building,
portion of a Building,
or Common Element
the Board of Directors
shall obtain reliable
and detailed estimates
of the cost of repairing
and restoring the
portion of the Condominium
so damaged or destroyed
(including any damaged
Units, and the floor
coverings, kitchen
and bathroom fixtures
appliances and cabinets
initially installed
therein by the Developer,
but not including
any other furniture,
furnishings, fixtures,
equipment or other
personal property
supplied or installed
by the Unit Owners
in the Units) to
a condition as good
as that existing
before such casualty.
Such costs may also
include professional
fees and premiums
for such bonds as
the Board of Directors
determines to be
necessary.
(b) If the proceeds
of insurance are
not sufficient to
defray the said
estimated costs
of reconstruction
and repair, or upon
completion of reconstruction
and repair, the
funds for the payment
of the costs thereof
are insufficient,
assessments in sufficient
amounts to provide
payment of such
costs shall be made
against the Unit
Owners who own the
damaged Units, and
against all Unit
Owners in the case
of damage to the
Common Elements.
The assessments
against Unit Owners
for damage to the
Units shall be in
proportion to the
cost of reconstruction
and repair of their
respective Units,
and the assessments
on account of damage
to Common Elements
shall be in proportion
to the Unit Owner's
respective percentage
interests in the
Common Elements.
(c) Any such reconstruction
or repair shall
be substantially
in accordance with
the original plans
and specifications
under which the
portion of the Condominium
damaged was originally
constructed.
(d) In the event
of damage or destruction
of any portion of
the Condominium
and reconstruction
or repair in accordance
with the provisions
of this Article
VII, or in the event
of restoration following
condemnation, an
easement is hereby
granted for any
encroachment of
any part of any
Common Element on
any Unit and for
any encroachment
of any part of any
Unit on to any Common
Element on to any
other Unit for so
long as the Building
or Buildings (as
reconstructed) stand.
The grant or other
disposition of any
Unit shall include
and grant, and be
subject to, any
such easement arising
under this Section
2(d) without specific
or particular reference
to such easement.
3. Disbursements
of Construction Funds.
(a) The net proceeds
of insurance collected
on account of a
casualty and the
funds collected
by the Board of
Directors from assessments
against Unit Owners
on account of such
casualty shall constitute
a construction fund
which shall be disbursed
in payment of the
cost of reconstruction
and repair in the
manner set forth
in section 3. If
the net proceeds
of insurance collected
on account of a
casualty exceed
$25,000, then the
funds collected
by the Board of
Directors from assessments
against the Unit
Owners shall be
deposited by the
Board of Directors
with the Insurance
Trustee, and the
entire Construction
fund shall be disbursed
by the Insurance
Trustee; otherwise
the construction
fund shall be held
and disbursed by
the Bard of Directors.
(b) The construction
fund shall be paid
by the Board of
Directors or the
Insurance Trustee,
as the' case may
e, in appropriate
progress payments,
to such contractors,
supplies and personnel
engaged in performing
the work or supplying
materials or services
for the repair and
reconstruction of
any portion of the
Condominium damaged
or destroyed as
are designated by
the Board of Directors.
(c) It shall be
presumed that the
first monies disbursed
in payment of the
cost of reconstruction
and repair shall
be from insurance
proceeds; and if
there is a balance
in the construction
fund after the payment
of all of the cost
of the reconstruction
and repair for which
the fund is established,
such balance shall
be distributed to
the Unit Owners
or mortgagees as
their interests
may appear.
(d) When the damage
is to both Common
Elements and Units,
the insurance proceeds
shall be applied
first to the cost
of repairing the
Common Elements,
and the balance
of the cost of repairing
the Units.
(e) The Insurance
Trustee shall be
entitled to rely
upon a certificate
executed by the
President or Vice
President, and the
Secretary, of the
Condominium certifying
(i) whether the
damaged or destroyed
portion of the
Condominium is
required to be
constructed and
repaired and,
if such reconstruction
and repair is
not required,
whether or not
the Unit Owners
voted in favor,
of such reconstruction
and repair provided
in these By-Laws;
(ii) the name
of the payee and
the amount to
be paid with respect
to disbursement
from any construction
fund held by it
or whether surplus
funds to be distributed
are less than
the assessments
paid by the Unit
Owners; and
(iii) all other
matters concerning
the holding and
disbursing of
any construction
fund held by it.
Any such certificate
shall be delivered
to the Insurance
Trustee promptly
after request.
4. When Reconstruction
is Not Required.
In the event that
the Condominium is
damaged to the extent
of two-thirds (2/3)
of its then replacement
value (which replacement
value shall be the
value determined by
the Board of Directors
in obtaining casualty
insurance) by fire
or other casualty,
then, unless all of
the Unit Owners unanimously
vote in favor of reconstruction
and repair, at a meeting
called within ninety
(90) days after the
occurrence of the
casualty, reconstruction
shall not ~e required,
and the Property shall
be subject to an action
for partition at the
suit of the Unit Owner
or mortgagee of any
Unit, as if the Property
were owned in common.
In such event, the
Property shall be
sold, the Condominium
established by the
Declaration shall
be considered to be-terminated,
and its affairs wound
up. The net proceeds
of sale shall be added
to the net proceeds
of insurance policies,
if any, shall be considered
as one fund, and distributed
by the Board of Directors
or the Insurance!
Trustee, as the case
may be, among all
the Unit Owners in
proportion to their
respective percentage
interests, in the
Common Elements after
first paying out of
the share of each
Unit Owner, to the
extent sufficient
for this purpose,
the amount of any
unpaid liens on his
Unit, in the order
of priority of such
Lens. In the event
of a unanimous vote
in favor of reconstruction
in accordance with
this Section 4, all
Unit Owners shall
be deemed to have
waived any right to
bring an action for
partition.
5. Condemnation.
For all purposes of
this Article VII,
the term "other casualty"
includes condemnation,
taking under power
of eminent domain,
or conveyance in lieu
of condemnation or
taking, and condemnation
proceeds shall be
deemed to ~e proceeds
from insurance on
account of casualty
and shall be deposited
with the Board of
Directors or Insurance
Trustee, as the case
may be. Except as
otherwise provided
in this Article VII
following the condemnation
of all or a part of
the Condominium the
Council promptly shall
undertake to restore
the Property to an
architectural whole.
Any costs of such
restoration shall
be a Common Expense.
Notwithstanding any
other provision of
this Article VII,
in the event of such
condemnation, taking,
or conveyance in lieu
thereof and a partition
of the Property as
permitted by section
4, of this Article
VII, the fund resulting
there from shall be
distributed as follows:
(i) each limit
Owner shall be entitled
to the entire award
for the taking of
all or part of his
respective Unit
and for consequential
damages to his Unit
(ii) any award
for the taking of
Limited-Common Element~
shall be allocated
to the Unit Owners
of the Units to
which the use of
whose Limited Common
Elements is restricted'
in proportion to
their respective
percentage interests
in the Common Elements;
and
(iii) any award
for taking of General
Common Elements
shall be allocated
to all Unit Owners
in proportion to
their respective
percentage interests
in the Common Elements.
The amount allocated
to each Unit Owner
shall be paid to
the Unit Owner and
to each mortgagee
of the Unit, the
remittance being
payable jointly
to the Unit Owner
and the mortgagees.
Following the taking
of all or part of
any Unit, the percentage
interests appurtenant
to the Unit in Common
Expenses and Coma
on Profits and in
the Common Elements
shall be adjusted
in the same proportion
the amount of floor
area taken bears
to the floor area
of the Unit prior
to taking. The vote
appurtenant to any
Unit not completely
taken shall not
be adjusted and
shall remain appurtenant
to that portion
of the Unit not
taken.
ARTICLE
VIII
SALES, LEASES, AND
ALIENATION OF UNITS
1. No Severance
of Ownership.
No Unit Owner shall
execute any deed,
lease, mortgage, or
instrument conveying
or mortgaging the
title to his Unit
without including
therein the undivided
interest of such Unit
in the Common Elements.
It being the intention
hereof to prevent
any severance of such
combined ownership.
Any such deed, lease,
mortgage, or other
instrument purporting
to affect one or more
of such interests,
without including
all such interests,
shall be deemed and
taken to include the
interest or interests
so omitted, even though
the Matter shall not
be expressly mentioned
or described therein.
No part of the interests
in the Common Elements
of any Unit ma~ be
sold, leased, transferred,
given, devised or
otherwise disposed
of, except as part
of a sale, lease,
transfer, gift, devise,
or other disposition
of the Unit which
such interests are
appurtenant, or as
part of a sales, lease,
transfer, gift, devise,
or other disposition
of such part of the
interests in the Common
Elements of all Units.
2. Payment of
Assessments. No
Unit Owner shall be
permitted to convey,
mortgage, hypothecate,
sell, lease, give,
or devise his Unit
unless and until he
(or his personal representative)
shall have paid in
full to the Board
of Directors all -unpaid
installments of regular
and special assessments
for Common Expenses
then due with respect
to his Unit and shall
have satisfied all
unpaid liens with
respect to his Unit,
except mortgages.
3. No Subdivision.
Except for the Developer,
without the approval
of the Board and subject
to the provisions
of section 5 of Article
IX, no Unit Owner
may grant by deed
any part of his Unit
or incorporate any
part or the entire
entire Unit in any
other Unit or subdivide
the Unit into two
or more Units. If
the Board of Directors
approves such a grant
or subdivision~ the
percentage interests
in Common Expenses
and Common Profits
and in the Common
Elements shall be
readjusted so that
the aggregate percentage
interests of the Units
involved are unaltered.
All costs and expenses
of any grant or subdivision
shall be borne by
the Unit Owners Party
thereto.
ARTICLE
IX
MORTGAGES
1. Notice to Board.
A Unit Owner, who
mortgages his Unit,
shall notify the Board
through the Managing
Agent: of the name
and address of his
mortgagee. The Board
shall maintain suitable
records pertaining
to such mortgages.
2. Notice of Unpaid
Assessments. The
Board, whenever so
requested in writing
by a mortgagee of
a Unit, shall promptly
report any then unpaid
assessments for Common
Expenses due from,
or any other default
by, the owner of the
mortgaged Unit.
3. Notice of Default.
The Board shall give
written notice to
a Unit Owner of any
default by the Unit
Owner in the performance
of any obligations
under the Act, Declaration
or these By-Laws,
and, if such default
is not cured within
thirty (30) days,
shall send a copy
of such notice to
each holder of mortgage
covering such Unit
whose name and address
has theretofore been
furnished to the Board.
4. Notices of
Damage. The Board
of Director shall
notify:
(i) the mortgagee
of a Unit whenever
damage to the Unit
covered by the mortgage
exceeds $1,000 provided
such mortgagee has
previously requested
such notification;
and
(ii) ail mortgagees
who have previously
requested such notification
whenever damage
to the Common Elements
exceeds $10,000.
5. Notice of Termination
of Management Contracts.
The Board of Directors
shall notify all
first mortgagees
in writing of the
termination of any
management contract
within ten (10)
days of receipt
or issuance of any
notice of such termination
by either the Condominium
or the Managing
Agent.
6. Rights of Mortgagees.
Unless all holders
of first mortgage
liens on individual
Units have given their
prior written approval,
the Council shall
not:
(i) change any
Unit's percentage
interest in Common
Expenses and Common
Profits or in the
Common Elements;
(ii) partition
or subdivide any
Unit or that Unit's
percentage interest
in Common Expenses
and Common Profits
or in the Common
Elements of the
Condominium nor
subdivide tie Common
Elements of the
Condominium;
(iii) by act or
omission seek to
abandon condominium
status of the Project
except as provided
by statute in case
of substantial loss
to' the Units and
Common Elements
of the Condominium;
(iv) modify or
amend the provisions'
of, these By-Laws
or the Declaration;
(v) modify the
method of determining
and collecting assessments;
nor
(vi) use tie proceeds
of casualty insurance
for any purpose
other than restoration.
7. Examination
of Books. Each
mortgagee shall be
permitted to examine
the books of account
of the Condominium
at reasonable times,
on business days,
but not more often
than once a month.
8. "Mortgagee" and
"Mortgaged." As used
in this Article and
generally in the Declaration
and By-Laws, the term
"mortgagee" includes
the holder of a note
secured by deed of
trust or mortgage
encumbering a Unit
and recorded among
the land records of
Montgomery County,
Maryland, and the
term "mortgage" includes
any deed of trust
recorded among the
said land records.
ARTICLE
X
NOTICE
1. Manner of Notice.
Whenever any notice
is required to be
given under the provisions
of applicable statutes
or of the Declaration
or these By-Laws to
any mortgagee, director
or Unit Owner, it
shall not be construed
to require personal
notice, but such notice
may be given in writing,
by mail, by depositing
the same in a post
office or letter box,
in a post-paid sealed
wrapper, addressed
to such mortgagee,
director or Unit Owner
at such address as
appears on the books
of the Condominium~
and such notice shall
be deemed to be given
at the time when the
same shall be thus
mailed.
2. Waiver of Notice.
Whenever any notice
is required to be
given under the provisions
of the statutes, the
Declaration or of
these By-Laws, a waiver
thereof, in writing,
signed by the person
or persons entitled
to such notice, whether
signed before or after
the time stated therein,
shall be deemed equivalent
thereto.
ARTICLE
XI
AMENDMENT OF BY-LAWS
1. Amendments. Except
as otherwise provided
in this Section, these
By-Laws may be modified
or amended by vote
of Unit Owners having
at least seventy-five
percent (75%) of the
votes appurtenant
to all of the Units
at any regular or
special meeting, provided
that notice of the
proposed amendment
shall have been given
to each Unit Owner
at least fifteen (15)
days in advance of
such meeting; provided,
however, that
(a) section 4 of
Article II, and
section 3 of Article
III, insofar as
they relate to the
selection of members
of the Board of
Directors by the
Developer,
(b) section 2 of
Article II, insofar
as it provides that
the Developer, so
long as it is the
owner of one or
more Units, may
vote the votes appurtenant
thereto, and
(c) this section
1 of Article XI,
may not be amended
without the consent
in writing of the
Developer, so long
as the Developer
shall be a Unit
Owner. Furthermore,
notwithstanding
the foregoing, so
lone as the Developer
is the owner of
one or more Units,
no amendment to
the By-Laws or Rules
and Regulations
may be adopted which
could interfere
with the display,
sale, lease, or
other disposition
of such Unit or
Units.
2. Recording.
No modification or
amendment of these
By-Laws shall become
effective only if
such modification
or amendment is recorded
among the Land Records
of Montgomery County
Maryland.
3. Conflicts.
No modification or
amendment of these
By-Laws may be adopted
which shall be inconsistent
with the provisions
of the Condominium
Act. A modification
or amendment once
adopted and recorded
as provided for herein
shall then constitute
part of the official
By-Laws of the Condominium
and all Unit Owners
shall be bound to
abide by such modification
or amendment.
4. Approval of
Mortgagees. These
By-Laws contain provisions
concerning various
rights, priorities,
remedies and interests
of the mortgagees
of Units. Such provisions
ii these By-Laws are
to be construed as
covenants for the
protection of the
mortgagees on which
they may rely in making
loans secured by mortgages
on the Units. Accordingly,
all mortgagees shall
be given thirty (30)
days notice of all
proposed amendments,
and no amendment or
modification of these
By-Laws impairing
or affecting the rights,
priorities, remedies
or interests of a
mortgagee shall be
adopted without the
prior written consent
of such mortgagee.
If there is more than
one mortgagee holding
mortgages on the Units,
it shall be sufficient
for this purpose to
obtain the written
consent of the mortgagee
or mortgagees holding
mortgages on 75% or
more the Units encumbered
by mortgages.
ARTICLE
XII
COMPLIANCE AND DEFAULT
1. Relief. Each Unit
Owner shall be governed
by, and shall comply
with, all of the terms
of the Declaration,
these By-laws, and
the Rules and Regulations,
and any amendments
of the same. A default
by a Unit Owner shall
entitle the Council
acting through the
Board of Directors
or the Managing Agent,
to the following relief:
(a) Legal Proceedings.
Failure to comply
with any of the
terms of the Declaration,
these By-Laws, and
the Rules and Regulations
shall be grounds
for relief which
may include without
limiting the same,
an action to recover
any sums due for
money damages, injunctive
relief, foreclosure
of the lien for
payment of all assessments,
any other relief
provided for in
these By-Laws, or
any combination
thereof, and any
other relief afforded
by a court of competent
jurisdiction, all
of which relief
may be sought by
the Council, the
Board of Directors,
the Managing Agent,
or, if appropriate,
by any aggrieved
Unit Owner.
(b) Additional
Liability
Each Unit Owner
shad be liable for
the expense of all
maintenance, repair
or replacement rendered
necessary by his
act, neglect or
carelessness or
the act, neglect
or carelessness
of any member of
his family or his
employees, agents
or licensees, but
only to the extent
that such expense
-is not covered
by the proceeds
of insurance carried
by the Board of
Directors. Such
liability shall
include any increase
in fire insurance
rates occasioned
by use, misuse,
occupancy or abandonment
of any Unit or its
appurtenances. Nothing
contained herein,
however, shall be
construed as modifying
any waiver by an
insurance company
of its rights of
subrogation.
(c) Costs and
Attorneys' Fees
In any proceeding
arising out of any
alleged default
by a Unit Owner,
the prevailing party
shall be entitled
to recover the costs
of the proceeding,
and such reasonable
attorneys' fees
as may be determined
by the court.
(d) No Waiver
of Rights
The failure of the
Council, the Board
of Directors, or
of a Unit Owner
to enforce any right,
provision, covenant,
or condition which
may be granted by
the Declaration,
these By-Laws or
the Rules and Regulations
shall not constitute
a waiver of the
right of the Council,
the Board of Directors,
or any Unit Owner
to enforce such
right, provision,
covenant, or condition
in the future. All
rights, remedies
and privileges granted
to the Council,
the Board of Directors
or any Unit Owner
pursuant to any
term, provision,
covenant or condition
of the Declaration,
these By-Laws, or
the Rules and Regulations
shall be deemed
to be cumulative
and the exercise
of any one or more
thereof shall not
be deemed 1.0 constitute
an election of remedies,
nor shall it preclude
the party exercising
the same from exercising
such privileges
as may be granted
to such party by
the Declaration,
these By-Laws or
the Rules and Regulations,
or at law or in
equity.
(e) Interest
In the event of
a default by any
Unit Owner which
continues for a
period in excess
of fifteen (15)
days, such Unit
Owner shall be obligated
to pay interest
on the amounts due
at the rate of eight
percent (8%) per
annum from the due
date thereof.
(f) Abatement
and Enjoinment of
Violation by Unit
Owners
The violation of
any rule or regulation
adopted by the Board
of Directors, or
the breach of any
By-Law contained
herein, or the breach
of any provision
of the Declaration,
shall give the Board
of Directors the
right, in addition
to an~ other rights
set forth in these
By-Laws:
(1) to enter
the Unit in which,
or as to which,
such violation
or breach exists
and summarily
to abate and remove,
at the expense
of the defaulting
Unit Owner, any
structure, thing
or condition that
may exist therein
contrary to the
intent and meaning
of provisions
hereof, and the
Board of Directors
shall not thereby
be deemed guilty
in any manner
of trespass; or
(2) to enjoin,
abate or remedy
by appropriate
legal proceedings,
either at law
or in equity,
the continuance
of any such breach.
2. Lien for Contributions.
(a) Until paid,
all special and
regular assessments,
together with interest
thereon as specified
in section 1(e)
of this Article
XII and actual costs
of collection shall
constitute a lien
on the Units on
which they are assessed
from and after recording
of a Statement of
Condominium Lien
as hereafter provided.
In any case where
an assessment against
a Unit Owner is
payable in installments,
upon a default by
such Unit. Owner
in the payment of
any single installment,
which continues
for ten (10) days
after written notice
of such default
has been sent to
the Unit Owner,
the maturity of
the remaining total
of the unpaid installments
of such assessments
may be accelerated,
at the option of
the Board of Directors,
and the remaining
balance owing may
be declared due
and payable in lull
by the service of
notice to such effect
upon the defaulting
Wit Owner by the
Board of Directors
or Managing Agent.
(b) The Managing
Agent shall advise
the Board monthly
of all assessments
which remain unpaid
for more than 10
days past the date
originally due.
The Managing Agent
is hereby appointed
as the Agent of
the Council for
signing and verifying
any and all statements
of Condominium Lien
filed pursuant hereto.
The Managing Agent
may, but unless
specifically so
instructed by resolution
of the Board shall
not be required
to, prepare and
file a Statement
of Condominium Lien
(the form and content
of which shall be
as required by the
Condominium Act)
among the land records
of Montgomery County,
Maryland, against
any Unit the Owner
of which has failed
to pay any assessment
or installment of
any assessment within
30 days from the
date such assessment
or installment was
due. Unless specifically
directed to delay
preparing and filing
a Statement of Condominium
Lien by resolution
of the Board of
Directors, the Managing
Agent: shall prepare
and file a Statement
of Condominium Liens
against any Unit
the Owner of which
has failed to pay
any assessment or
installment of any
assessment within
60 days from the
date such assessment
or installment was
due. The Board shall
not direct the Managing
Agent to delay preparing
and filing any statement
of Condominium Lien
against a Unit to
a date more than
12 months after
the date any assessment
or installment was
due. Upon full payment
of any assessment
for which a lien
is claimed the Unit
Owner shall be entitled
to a recordable
satisfaction of
the Lien. The Managing
Agent shall, upon
request of the Unit
Owners, record the
release among the
land records of
Montgomery County,
Maryland at the
Unit Owner's expense.
(c) The lien provided
for hereby may be
foreclosed in the
manner provided
by the laws of the
State of Maryland
by suit brought
in the name of the
Board of Directors,
acting on behalf
of the Council.
During the pendency
of such suit, the
Unit Owner shall
be required to pay
a reasonable rental
for this Unit for
any period prior
to sale pursuant
to any judgment
or order of any
court having jurisdiction
over such sale.
The plaintiff in
such proceeding
shall have the right
to the appointment
of a receiver, if
available under
the then laws of
the State of Maryland.
(d) Suit to recover
a money judgment
for unpaid contributions
shall be maintainable
without foreclosing
or waiving the lien
securing the same.
ARTICLE
XIII
COMPLIANCE, CONFLICT,
AND MISCELLANEOUS
PROVISIONS
1. Compliance.
These By-Laws are
set forth in compliance
with the requirements
of the Condominium
Act.
2. Conflict.
These By-Laws are
subordinate and subject
to all provisions
of the Declaration
and to the provisions
of the Act. All of
the terms hereof,
except where clearly
repugnant to the context,
shall have the same
meaning as they are
defined to have in
the Declaration or
the Act. In the event
of any conflict between
these By-Laws and
the Declaration, the
provisions of the
Declaration shall
control; and in the
event of any conflict
between the Declaration
and the Act, the provisions
of the Act shall control.
3. Severability.
These By-Laws are
set forth to comply
with the requirements
of the State of Maryland.
En case any of the
By-Laws are in conflict
with the provisions
of any of its statutes,
the provisions of
the statutes will
apply. If any provisions
of these By-Laws or
any section, sentence,
clause, phrase, or
word, or the application
thereof in any circumstance
is held invalid, the
validity of t.he remainder
of these By-Laws,
shall not be affected
thereby and to this
end, the provisions
hereof are declared
to be severable.
4. Waiver.
No restriction, condition,
obligation or provision
of these By-Laws shall
be deemed to have
been abrogated or
waived by reason of
any failure or failures
to enforce the same.
5. Captions.
The captions contained
in these By-Laws are
for convenience only
and are not a part
of these Bylaws and
are not intended in
any way to limit or
enlarge the term and
provisions of these
By-Laws.
6. Gender, etc.
Whenever in these
By-Laws the context
so requires, the singular
number shall include
the plural and the
converse; and the
use of any gender
shall be deemed to
include all genders.
|
|
