The CC&R’s

Ekmark & Ekmark, LLC

6720 North Scottsdale Road, Suite 261

Scottsdale, AZ 85253

Unofficial

20Document

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RESTATED DECLARATION

ESTABLISING CRYSTAL POINT CONDOMINIUM

AND DECLARATION OF COVENANTS, CONDITIONS

AND RESTRICTIONS

20150805794

TABLE OF CONTENTS

1. DEFINITIONS ............................................................................................................................................. 2

1.1 "ACT" ........................................................................................................................................................... 2

1.2 "ASSOCIATION" ............................................................................................................................................ 2

1.3 "BOARD" ...................................................................................................................................................... 2

1.4 "CONDOMINIUM" .......................................................................................................................................... 2

1.5 "COMMON ELEMENTS" ................................................................................................................................. 2

1.6 "DECLARANT" .............................................................................................................................................. 2

1. 7 "DECLARATION" ........................................................................................................................................... 2

1.8 "ELIGIBLE MORTGAGE HOLDER" ................................................................................................................. 3

1.9 "ELIGIBLE INSURER OR GUARANTOR" .......................................................................................................... 3

1.10 "LEASE" ........................................................................................................................................................ 3

1.11 "MAJORITY" OR "MAJORITY OF OWNERS" ................................................................................................... 3

1.12 "MORTGAGE" ............................................................................................................................................... 3

1.13 "OCCUPANT" ................................................................................................................................................ 3

1.14 "OWNER" ...................................................................................................................................................... 3

1.15 "PARCEL" ..................................................................................................................................................... 3

1.16 "PARKING SPACE" ........................................................................................................................................ 3

1.17 "PERSON" ..................................................................................................................................................... 4

1.18 "PLAT" ......................................................................................................................................................... .4

1.19 "RECORD" OR "RECORDING" ........................................................................................................................ 4

1.20 "UNIT" .......................................................................................................................................................... 4 Unofficial Document

2. ESTABLISHMENT OF THE CONDOMINIUM . ...................................................................................... 4

3. DESCRIPTION OF THE UNITS AND THE COMMON ELEMENTS . ................................................... 4

3.1 UNITS ............................................................................................................................................................ 4

3.2 COMMON ELEMENTS ................................................................................................................................... .4

3.3 LIMITED COMMON ELEMENTS ...................................................................................................................... 4

3.4 MAID'S QUARTERS UNITS; RESTRICTION ON TRANSFER .............................................................................. 5

3 .5 INTEREST IN THE COMMON ELEMENTS ......................................................................................................... 5

4. ASSOCIATION . .......................................................................................................................................... 5

4.1 CLASSES OF MEMBERSHJP; VOTING RIGHTS OF CLASSES ............................................................................. 6

Class A . ................................................................................................................................................................. 6

Class B . ................................................................................................................................................................. 6

4.2 QUALIFICATIONS OF DIRECTORS ................................................................................................................... 7

4.3 BOARD'S DETERMINATION BINDING ............................................................................................................ 7

4.4 ACTIONBYOWNERS ..................................................................................................................................... 7

4.5 ADDITIONAL PROVISIONS IN ARTICLES OF INCORPORATION AND BYLAWS OF THE ASSOCIATION ................ 7

5. USE OF COMMON ELEMENTS ............................................................................................................... 7

6. PARKING SPACES ..................................................................................................................................... 8

7. COMMON ELEMENT MAINTENANCE EXPENSES AND RESERVE ................................................. 8

7 .1 PAYMENT OF COMMON EXPENSES ................................................................................................................ 9

7 .2 LIEN FOR UNPAID COMMON EXPENSES ........................................................................................................ 9

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7.3 SPECIAL ASSESSMENTS FOR CAPITAL IMPROVEMENTS ............................................................................... 10

8. MORTGAGES ........................................................................................................................................... 10

9. INSURANCE REQUIREMENTS GENERALLY .................................................................................... 10

9.1 CASUALTYlNSURANCE ............................................................................................................................... 12

9.2 PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE ........................................................................... 12

9.3 WORKMEN'S COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE ................................................... 12

9.4 FIDELITY BONDS ......................................................................................................................................... 13

9.5 INSURANCE BY OWNERS ............................................................................................................................. 13

9.6 RECEIPT AND APPLICATION OF INSURANCE PROCEEDS ............................................................................... 13

9 .7 OTHER INSURANCE BY THE ASSOCIATION .................................................................................................. 13

10. DESTRUCTION, CONDEMNATION, OBSOLESCENCE, AND RESTORATION OR SALE OF

CONDOMINIUM ............................................................................................................................................... 14

10.1 DEFINITION ................................................................................................................................................. 14

(I) "Substantial Destruction" ..................................................................................................................... 14

(2) "Substantial Condemnations" ............................................................................................................... 14

(3) "Substantial Obsolescence" .................................................................................................................. 14

(4) "Restoration" ........................................................................................................................................ 14

(5) "Restored Value of the Condominium" ................................................................................................. 15

(6) "Available Funds" ................................................................................................................................. 15

10.2 RESTORATION OF THE CONDOMINIUM ........................................................................................................ 15

10.3 SALE OF THE CONDOMINIUM ...................................................................................................................... 15

10.4 SPECIAL ASSESSMENTS FOR RESTORATION ................................................................................................ 15

10.5 RECEIPT AND APPLICATION OF CONDEMNATun-::ffi;;afo07'u;;~ ........................................................................... 16

10.6 REORGANIZATION IN THE EVENT OF CONDEMNATION ................................................................................ 16

11. RIGHTS OF OWNERS IN ANY DISTRIBUTIONS ............................................................................ 17

12. MAINTENANCE, REPAIRS AND REPLACEMENTS; RIGHT OF ACCESS .................................. 17

13. ALTERATIONS, ADDITIONS ORIMPROVEMENTS ...................................................................... 18

14. DECORATING ...................................................................................................................................... 19

15. ENCROACHMENTS ............................................................................................................................ 19

16. PURCHASE OF UNIT BY ASSOCIATION ......................................................................................... 19

17. USE AND OCCUPANCY RESTRICTIONS ........................................................................................ 20

18. ARCHITECTURAL CONTROL .......................................................................................................... 22

19. EXEMPTION OF DECLARANT FROM RESTRICTIONS AND RESERVATION OF SPECIAL

DECLARANT RIGHTS ..................................................................................................................................... 22

20. ENTRY BY BOARD OR ITS AGENT .................................................................................................. 23

21. ROOF LEAKS AND REPAIRS ............................................................................................................ 23

22. PUBLIC DEDICATION ........................................................................................................................ 23

23. COPY OF DECLARATION TO NEW OWNERS ............................................................................... 23

24. REMEDIES ............................................................................................................................................ 24

25. AMENDMENT ...................................................................................................................................... 25

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26. NOTICES ............................................................................................................................................... 26

27. SEVERABILITY ................................................................................................................................... 26

28. PERPETUITIES AND RESTRAINTS ON ALIENATION .................................................................. 27

29. RIGHTS AND OBLIGATIONS ............................................................................................................ 27

30. WAIVER ................................................................................................................................................ 27

31. EASEMENTS ........................................................................................................................................ 27

31.1 UTILITY EASEMENTS .................................................................................................................................. 27

32. PROTECTION FOR ELIGIBLE MORTGAGE HOLDERS ............................................................... 28

33. PROFESSIONAL MANAGEMENT AGREEMENT ........................................................................... 28

34. RESERVATION OF DEVELOPMENT RIGHTS ................................................................................ 28

Unofficial Document

20150805794

RESTATED DECLARATION

ESTABLISING CRYSTAL POINT CONDOMINIUM

AND DECLARATION OF COVENANTS, CONDITIONS

AND RESTRICTIONS

WHEREAS, the Amendment of Declaration of Condominium and Declaration of

Covenants, Conditions and Restrictions for Crystal Point was recorded on March 1, 1991 at

Instrument No. 1991-087036, official records of Maricopa County, Arizona Recorder

("Declaration");

WHEREAS, two (2) amendments to the Declaration have been recorded since the time of

the original Declaration;

WHEREAS, Crystal Point Condominium Association ("Association") wishes to

consolidate all of the language contained within the two (2) amendments into the Declaration;

NOW, THEREFORE, by the attached document, the Association hereby restates the

Declaration in its entirety, and consolidates in the Declaration the following amendments: Third

Amendment to Declaration Establishing Crystal Point Condominium and Declaration of

Covenants, Conditions and Restrictions on August 9, 1993 at Instrument No. 1993-0527681

official records of Maricopa County, Arizona Recorder; and Fourth Amendment to Declaration

of Covenants, Conditions and Restrictions for Crystal Point Condominium on January 22, 1997

at Instrument No. 1997-0042386, official records of Maricopa County, Arizona Recorder.

Unofficial Document

WITNESS ETH:

WHEREAS, Declarant is the sole owner of that certain real property situated in the City

of Phoenix, County of Maricopa, State of Arizona, which is more particularly described on

Exhibit "A" attached hereto and incorporated herein by reference (hereinafter referred to as the

"Parcel");

WHEREAS, Declarant desires to submit and subject the Parcel to a condominium plan of

description and ownership pursuant to Title 33, Chapter 9 of the Arizona Revised Statutes; and

WHEREAS, Declarant further desires to establish for its own benefit and for the mutual

benefit of all future owners or occupants of the Condominium (as hereinafter defined), or any

part thereof, certain easements and rights in, over and upon said Condominium and certain

mutually beneficial restrictions and obligations with respect to the proper use, conduct and

maintenance thereof; and

WHEREAS, Declarant desires and intends that the unit owners, mortgagees, beneficiaries

and trustees under trust deeds, occupants and all other persons hereafter acquiring any interest in

the Condominium shall at all times enjoy the benefits of, and shall hold their interests subject to,

the rights, easements, privileges and restrictions hereinafter set forth, all of which shall run with

the land and be binding upon the Condominium and all parties having or acquiring any right, title

or interest in or to the Condominium, or any part thereof, and shall inure to the benefit of each

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owner thereof, and all of which are declared to be in furtherance of a plan to promote and protect

the cooperative use, conduct and maintenance of the Condominium and are established for the

purpose of enhancing and perfecting the value, desirability and attractiveness thereof.

NOW, THEREFORE, Declarant, for the purposes hereinafter set forth, declares as

follows:

1. Definitions. As used herein, unless the context otherwise requires, the following

terms shall have the following definitions.

1.1 "Act" means Title 33, Chapter 9 of the Arizona Revised Statutes.

1.2 "Association" means Crystal Point Condominium Association, an Arizona

nonprofit corporation, its successors and assigns, formed or to be formed by the Declarant, and

unless otherwise provided, shall mean and include its board of directors, officers and other

authorized agents.

1.3 "Board" shall mean the board of directors of the Association.

1.4 "Condominium" means (a) the Parcel, (b) the Units comprising the

Condominium hereby created, and ( c) the Common Elements, including all buildings,

improvements and other permanent fixtures of whatsoever kind situated on the Parcel and all

rights, privileges and appurtenances thereto, intended for the mutual use, benefit and enjoyment

of the Owners; and such term shall in generalu~-;,ffi,'Taioo;u~.-;;, ~ame meaning as set forth in Arizona

Revised Statutes § 33-1202(10), as it relates to the Condominium hereby created.

1.5 "Common Elements" mean the "common elements", as that term is

defined in Arizona Revised Statutes § 33-1202(7), including without limitation the land on which

the buildings are constructed, the foundations, floors, roofs and bearing walls of the buildings,

elevators and entryways surrounding such elevators, emergency staircases, lobbies, storage

rooms, mechanical rooms, central electrical systems, central air conditioning and heating systems

( excluding any heat pump or heat exchanger which exclusively serves one particular unit), any

pipes, wires, conduits, ducts, flues, shafts, public utility, water or sewer lines situated within a

Unit but forming a part of any system serving more than one Unit, ground level and underground

parking areas, driveways, landscaped areas, swimming pools, recreational areas and all other

portions of the Condominium, except the Units. "Common Elements" shall include any Limited

Common Elements as hereinafter described.

1.6 "Declarant" means Third Street and Indianola Partnership, an Arizona

general partnership, its successors and assigns in the ownership of the Condominium for the

purpose of the original development and sale thereof

1. 7 "Declaration" means this instrument by which the Parcel is submitted to a

condominium form of description and ownership, as from time to time amended.

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1.8 "Eligible Mortgage Holder" means the Holder of a First Mortgage on a

Unit who has in writing informed the Association of such Holder's address and requested

notification of and the right to participate in (if applicable) any action to be taken by the

Association pursuant to paragraphs 25 or 32 hereof.

1.9 "Eligible Insurer or Guarantor" means an Insurer or Governmental

Guarantor of a First Mortgage on a Unit who has in writing informed the Association of such

Insurer or Guarantor's address and requested notification of and the right to participate in (if

applicable) any action to be taken by the Association pursuant to paragraphs 25 or 32 hereof.

1.10 "Lease" means any agreement for the leasing or rental of a Unit and the

interest in the Common Elements appurtenant to such Unit, or any portion thereof.

1.11 "Majority" or "Majority of Owners" means the Owners of Units to which

more than fifty percent (50%) of the undivided ownership of the Common Elements is

appurtenant. Any specified fraction or percentage of the Owners means the Owners of Units to

which that fraction or percentage of undivided ownership of the Common Elements is

appurtenant.

1.12 "Mortgage" means any recorded, filed or otherwise perfected instrument

given in good faith and for valuable consideration which is not a fraudulent conveyance under

Arizona law as security for the performance of an obligation, including without limitation a deed

of trust, but does not mean any instrument creating or evidencing solely a security interest arising

under the Uniform Commercial Code. "Mortg;;;ffi;.,~::m;,;aans a person secured by a Mortgage,

including a trustee and beneficiary under a deed of trust; and "Mortgagor" means the party

executing a Mortgage. "First Mortgage" means a Mortgage which is the first and most senior of

all Mortgages upon the same property.

1.13 "Occupant" means a person or persons, other than an Owner, in rightful

possession of a Unit.

1.14 "Owner" means the record owner, whether one or more persons or

entities, of the fee simple title, whether or not subject to any Mortgage, to any Unit which is a

part of the Condominium (including any real estate subsequently merged with the Condominium

pursuant to paragraph 34 hereof), including a purchaser under an agreement for sale within the

meaning of A.R.S. § 33-741, but does not mean those having such interest merely as security for

the performance of an obligation. In the case of Units the legal title to which is vested of record

in a trustee pursuant to Arizona Revised Statutes§§ 33-801 et~-, the truster shall be deemed to

be the owner thereof.

1. 15 "Parcel" means the parcel ofreal estate described on Exhibit "A" attached

hereto, which is hereby submitted to a condominium form of description and ownership.

1.16 "Parking Space" means each of the separate parking spaces shown on the

Plat attached hereto as Exhibit "B".

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1.17 "Person" means a natural individual, corporation, partnership, trustee or

other entity capable of holding title to real estate.

1.18 "Plat" means the Plat of survey of the Condominium as hereinbefore and

hereinafter more fully described and identified which is attached hereto as Exhibit "B" which

Plat was recorded in Book 341 of Maps, at page 38 of the records of the County Recorder of

Maricopa County, Arizona.

1.19 "Record" or "Recording" refers to the record or the act of recording, in the

office of the County Recorder of Maricopa County, Arizona.

1.20 "Unit" means each of the 69 portions of the Condominium which consist

or are planned to consist of one or more rooms designed or intended for independent use as a

dwelling unit, as shown on Exhibit "B" attached hereto, and as more fully described in

paragraph 3.2 hereof. "Unit" as used herein shall have the same meaning as that defined in

Arizona Revised Statutes§ 33-1202(22). There shall be allocated and appurtenant to each Unit

an undivided interest in the Common Elements as set forth in paragraph 3 hereof.

2. Establishment of the Condominium. Declarant hereby creates and establishes this

Condominium pursuant to Title 33, Chapter 9 of the Arizona Revised Statutes, to be hereafter

known as Crystal Point Condominium and does hereby declare that all of the Units shall be

owned, leased, sold, conveyed and encumbered or otherwise held or disposed of subject to the

terms, conditions and other provisions of this Declaration.

Unofficial Document

3. Description of the Units and the Common Elements. The entire Condominium

shall consist of the Common Elements and the Units.

3 .1 Units. There are or are planned to be a total of 69 Units in the

Condominium. Reference is hereby made to the Plat attached hereto as Exhibit "B" for a

description of the boundaries of each Unit, its Identifying Number and its location or planned

location within the Condominium. Each Unit shall include the space enclosed and bounded by

the interior unfinished surfaces of the ceiling, floor, walls, doors and windows or any extensions

thereof, together with any plumbing fixtures or lines and electrical or refrigeration equipment or

lines which exclusively serve such Unit; provided, however, that no portion of the roof, bearing

walls or other structural components of the Building in which each Unit is located, and no pipes,

wires, conduits, ducts, flues, shafts, or public utility, water or sewer lines situated within such

Unit and forming part of any system serving one or more other Units or the Common Elements

shall be deemed to be a part of a Unit.

3 .2 Common Elements. The Common Elements are all of those portions of

the Condominium not included within the description of the Units as provided in paragraph 3.1

hereof. A further description of the Common Elements is as set forth in paragraph 1.5 hereof and

as further delineated on the Plat attached hereto as Exhibit "B".

3.3 Limited Common Elements. The Limited Common Elements are portions

of the Common Elements allocated hereby for the exclusive use of certain Unit Owners. Any

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patio or balcony connected to a particular Unit, two or more parking spaces, a storage closet and

a mail box allocated to such Unit, all doors providing a means of ingress to and egress from a

Unit and all windows located in exterior walls which enclose such Unit, any shutters, awnings,

window boxes, and all other exterior doors and windows or other fixtures designed to serve a

single Unit, but located outside the Unit's boundaries, are Limited Common Elements, and,

subject the rights of the Association set forth in paragraph 12 hereof, are for the exclusive use

and benefit of the Unit Owners benefitted thereby. Any such Limited Common Elements may be

reallocated with respect to the Unit(s) benefitted by an amendment to this declaration executed

pursuant to paragraph 19 or 25 hereof.

3.4 Maid's Quarters Units: Restriction on Transfer. Certain of the Units

identified on the Plat as Units lA through lF, inclusive, are hereby specifically designated as

Maid's Quarters Units (the "Maid's Quarters Unit(s)"). No Maid's Quarters Unit shall be owned

at any time by a Person other than a Unit Owner in Crystal Point Condominium and no Maid's

Quarters Unit shall be transferred to another Unit Owner without the prior written consent of any

Mortgagee holding a security interest in the transferor's Unit or Maid's Quarters Unit. The

restrictions on ownership and transfer of the Maid's Quarters Units contained in this

subparagraph may be enforced by any Owner, Mortgagee or the Association, pursuant to the

remedies provided in Paragraph 24 hereof.

3.5 Interest in the Common Elements. The interest hereby allocated to each

Unit in the Condominium, which interest shall constitute an undivided interest in the Common

Elements appurtenant to each such Unit shall be determined by a fraction, the numerator of

which shall be the cubic content space of sucl~n;1'ti~ialD~cument 1 the denominator of which shall be the

total cubic content space of all of the Units in the Condominium. The undivided interest in the

Common Elements appurtenant to each Unit in the Condominium, determined in accordance

with the provisions of this paragraph, is set forth in Exhibit "C" attached hereto and incorporated

herein by reference.

4. Association. The Association has been, or will be formed, to constitute the "Unit

Owners' Association," as that term is defined in Arizona Revised Statutes§ 33-1202(4). The

Association shall serve as the governing body for all of the Owners for the protection,

improvement, alteration, expansion, augmentation, disposal, divestment, redescription,

maintenance, repair, replacement, administration and operation of the Condominium, the

assessment of expenses, payment oflosses, disposition of hazard insurance proceeds received by

the Association, and other matters as provided in the Act, in this Declaration, in the Articles of

Incorporation of the Association (hereinafter referred to as the "Articles") and in the Bylaws of

the Association (hereinafter referred to as the "Bylaws"). The Association shall not be deemed to

be conducting a business of any kind, and all funds received by the Association shall be held and

applied by it for the Owners in accordance with the provisions of this Declaration, the Articles

and the Bylaws. Each Owner shall be a Member of the Association as soon and so long as he

shall be an Owner. Such membership shall automatically terminate when an Owner ceases for

any reason to be an Owner, and the new Owner shall likewise automatically succeed to such

membership in the Association. Membership in the Association shall not be transferred, pledged

or alienated in any way, except upon the sale of the Unit to which it is appurtenant (and then only

to the purchaser involved in such sale) or by intestate succession, testamentary disposition,

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foreclosure of a Mortgage of record or other legal process transferring fee simple title to such

Unit (and then only to the Person to whom such fee simple title is transferred). Any attempt to

make a prohibited transfer of a membership will be void and will not be recognized by or

reflected upon the books and records of the Association. In the event the Owner of any Unit

should fail or refuse to transfer the membership registered in his name upon the sale of such

Owner's Unit to the purchaser of such Owner's Unit, the Association shall have the right to enter

a transfer upon the books of the Association and issue a new membership to the purchaser, and

thereupon the old membership outstanding in the name of the seller shall be null and void as

though the same had been surrendered.

4.1 Classes of Membership; Voting Rights of Classes. The Association shall

have two classes of voting membership:

Class A. Class A members shall be all Owners in Crystal Point

Condominium, with the exception of the Declarant, and shall be entitled to one

vote for each Unit owned, which vote shall be weighted as to all matters in the

proportion that the undivided interest of such Owner's Unit bears to the Common

Elements of Crystal Point Condominium and shall be numerically equivalent to

such undivided interest. When more than one person holds an interest in any Unit,

all such persons shall be members. The voting for such Unit shall be exercised as

such persons among themselves determine, or, in the absence of such

determination, as determined by the Board, but in no event shall more than one

vote be cast with respect to any Class A Unit. If any Owner or Owners cast a vote

representing a certain Unit, it \Un2~;\al Docu,;,~nt absence of prompt protest from the other

Owners of such Unit during the meeting at which such vote is cast, thereafter be

conclusively presumed for all purposes that such Owner or Owners were acting

with the authority and consent of all other Owners of the same Unit.

Class B. The Class B member shall be the Declarant and shall be entitled

to three (3) votes for each Unit owned in Crystal Point Condominium, each of

which votes shall be weighted as to all matters in the proportion that the

undivided interest of each Unit owned by Declarant bears to the Common

Elements of Crystal Point Condominium and shall be numerically equivalent to

such undivided interest. The total votes which the Declarant shall be entitled to

cast may be cast in such proportion on any matter as Declarant may determine.

Each Class B membership shall cease and be converted to class A membership,

without further act or deed, upon the happening of any of the following events:

(a) Upon the conveyance by Declarant of any particular Unit to

an Owner, other than in connection with an assignment by Declarant of all

or substantially all of its rights under this Declaration (including a pledge

or assignment by Declarant to any lender as security), with respect to the

particular Unit or Units so sold or otherwise disposed of; or

(b) With respect to all remaining Class B memberships, upon

the first to occur of the following:

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(i) Upon the expiration of ninety (90) days following

the first date when the total votes entitled to be cast by the Class A

membership equal or exceed the total votes entitled to be cast by

the Class B membership, or

(ii) Three (3) years after the conveyance of the first

Unit to an Owner other than Declarant.

If any lender to whom Declarant has assigned, or hereafter assigns, as security all or substantially

all of its rights under this Declaration succeeds to the interest of Declarant by virtue of said

assignment, the Class B memberships shall not be terminated thereby, and, subject to the

provisions of A.R.S. § 33-1244(D), such lender shall hold such rights and Class B memberships

on the same terms as such were held by Declarant pursuant hereto.

4.2 Qualifications of Directors. Each director shall be an Owner or the spouse

of an Owner ( or if an Owner is a corporation, partnership or trust, a director may be an officer,

partner or beneficiary of such Owner). If a director shall cease to meet such qualifications during

his term, he will thereupon cease to be a director, and his place on the Board shall be deemed

vacant. The requirements of this subparagraph shall not apply to directors elected as a result of

any of the votes cast by the Class B member or the exercise of any Special Declarant Right as set

forth in paragraph 19 hereof.

4.3 Board's Determinationu~fficial D;cument Subject to the right of any Owner to

institute an action at law or in equity pursuant to the provisions of paragraph 24 hereof, in the

event of any dispute or disagreement between any Owners relating to the Condominium, or any

question of interpretation or application of the provisions of this Declaration, the Articles or the

Bylaws, the determination thereof by the Board shall be final and binding on each and all of such

Owners.

4.4 Action by Owners. To the extent permitted by the Act, all actions

required to be taken by the Owners, acting as a Unit Owners Association for the Condominium,

shall be taken by the Association acting as such Unit Owners Association, by and through its

directors and officers, such actions to include, without limitation, adoption or ratification of the

Bylaws and rules and regulations for the Condominium created hereby.

4.5 Additional Provisions in Articles of Incorporation and Bylaws of the

Association. The Articles and Bylaws may contain any provision not inconsistent with law or

with this Declaration relating to the conduct of the affairs of the Association and the rights and

powers of its directors, officers, employees, agents and members.

5. Use of Common Elements. There shall be appurtenant to each Unit in Crystal

Point Condominium a non-exclusive and perpetual right and easement to use the Common

Elements in common with all other persons entitled to use the Common Elements except as

otherwise provided in paragraph 3 .3 hereof, as may be required for the purposes of access,

ingress and egress to and from, and the use, occupancy and enjoyment of the Units and the

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Common Elements for their intended purposes as provided herein. Such right and easement shall

extend to each Occupant and the agents, servants, family members and invitees of the Owner or

Occupant of each Unit in Crystal Point Condominium. Such right and easement shall be subject

to such limitations, restrictions, rules and regulations as may from time to time be promulgated

by the Board including, but not limited to, the right of the Board to suspend the right of any Unit

Owner or Occupant and the agents, servants, tenants, family members and invitees of any Unit

Owner or Occupant to use the recreational facilities which are a part of the Common Elements

and/or the right of any Unit Owner to vote pursuant to the provisions of paragraph 4.1 hereof for

any period during which the Common Expenses attributable to such Owner's Unit as provided in

paragraph 7 hereof remain unpaid or for a period not to exceed sixty (60) days for any violation

of regulations adopted and published by the Board, and shall be subject to and governed by the

provisions of this Declaration, the Articles and Bylaws. The Board shall have authority to lease,

convey easements or grant concessions consistent with the overall character and use of the

Condominium with respect to parts of the Common Elements and to change the character,

description and use thereof, subject to the provisions of the Act, this Declaration, the Articles and

the Bylaws. Any funds received by the Association from leases, concessions or other sources

shall be held and used for the benefit of the members of the Association pursuant to such rules,

resolutions or regulations as the Board may adopt or prescribe. Notwithstanding anything

contained herein to the contrary, Declarant shall be entitled to exclusive access to and occupancy

of all or any portion of any Unit until such time as the construction thereof has been completed

and the particular Unit has been conveyed to an Owner by Declarant, and Declarant shall be

entitled to nonexclusive access to and occupancy of all or any portion of the Common Elements

until such time as all Units have been conveyed to Owners by Declarant. Notwithstanding

anything contained herein to the contrary, the1uc2°1'.!i.~~;,,;~"~ no restriction upon any Owner's right of

ingress and egress to or from such Owner's Unit, which right shall be perpetual and appurtenant

to the ownership of such Owner's Unit.

6. Parking Spaces. Parking Spaces shall be part the Common Elements as shown on

the Plat attached hereto as Exhibit "B" and the Board shall have full authority establish, operate,

and manage the Parking Spaces for and on behalf of all Owners, and the use thereof shall be

subject to such rules and regulations as may be imposed by the Board. Certain of the Owner's

Parking Spaces shall be Limited Common Elements allocated to each Unit and are more

specifically designated on the Plat attached hereto as Exhibit "B".

7. Common Element Maintenance Expenses and Reserve. Pursuant to A.R.S. § 33-

1243(C), the Board is hereby expressly authorized to adopt and amend budgets for the

administration and operation of the Common Elements without ratification by the Owners,

subject to the provisions of this paragraph, and shall, within thirty (30) days after adoption of any

proposed budget for the Condominium, provide a summary of the budget to all the Unit Owners.

As provided herein, each Owner shall pay his proportionate share of the expenses of the

administration and operation of the Common Elements, except portions of the Limited Common

Elements, of Crystal Point Condominium and any other expenses incurred in conformance with

this Declaration, the Articles and the Bylaws including by way of illustration, but not of

limitation, premiums for insurance, the cost of maintenance and repair of the Common Elements

and any and all replacements and additions thereto, and reasonable reserves for contingencies,

replacements or other proper purposes (hereinafter referred to as the "Common Expenses"). The

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Association shall maintain an adequate reserve for replacement of the Common Elements. The

proportionate share of such Common Expenses payable by each Owner shall be equal to the

proportionate interest in the Common Elements appurtenant to such Owner's Unit as provided in

paragraph 3.5 hereof.

7.1 Payment of Common Expenses. Payment of the Common Expenses shall

be payable monthly in such amounts and in such manner as may be provided in the Articles and

Bylaws or as determined by the Board. Assessments for the Common Expenses shall commence

upon the first day of the first month immediately following the conveyance of such Unit to a

Unit Owner other than Declarant. Payment of each Owner's share of the Common Expenses,

together with interest at the rate of four percent (4%) per annum in excess of the prime rate of

interest announced by The Valley National Bank of Arizona as the same may fluctuate on a daily

basis from the due date of such payment, costs, reasonable attorneys' fees, and after notice and

an opportunity to be heard, a late charge equal to twenty five percent (25%) of the amount of

such payment as determined by the Board, shall constitute the personal obligation of the person

who was the Owner of such Unit at the time such payment became due. The personal obligation

for delinquent payments shall not pass to an Owner's successor in title unless expressly assumed

by him, provided, however, that the personal obligation shall survive any voluntary or

involuntary transfer of a Unit with respect to the Owner of the Unit at the time such payment

became due.

7.2 Lien for Unpaid Common Expenses. If any Owner shall fail or refuse to

make any payment for Common Expenses within thirty (30) days of the due date, the amount

thereof, together with interest thereon at the rn".?!ti'i~fc,;~•~!- percent (4%) per annum in excess of the

prime rate of interest announced by Bank One Arizona or any successor bank, or if no such

successor shall exist, Bank of America, N.A. as the same may fluctuate on a daily basis from the

due date of such payment, a late charge equal to twenty five percent (25%) of the amount of such

payment as determined by the Board which may be imposed only after notice to such Unit

Owner and after such Unit Owner's having an opportunity to be heard by the Board, costs and

reasonable attorneys' fees, shall constitute a lien on such Owner's Unit and on any rents and

proceeds therefrom; provided, however, that such lien shall be subordinate to the lien of a

recorded First Mortgage on the applicable Unit, acquired in good faith and for value, except for

the amount of the unpaid assessments and other charges which accrue from and after the date on

which the First Mortgagee acquires title to or comes into possession of the applicable Unit, and

any lien for unpaid assessments and other charges prior to such date shall upon such date

automatically terminate and be extinguished and such First Mortgagee shall not be liable for such

unpaid assessments and other charges, provided, however, that the extinguishment of such lien

shall not in any way affect the personal obligation of the Owner of the Unit at the time the

payment giving rise to such lien became due. Any person acquiring an interest in any Unit shall

upon giving written notice to the Board be entitled to a statement from the Association setting

forth the amount of unpaid assessments and other charges, if any, and such person shall not be

liable for, nor shall any lien attach to such Unit in excess of, the amount set forth in such

statement, except for assessments and other charges which accrue or become due after the date

thereof. The lien provided for in this paragraph may be foreclosed by the Association in any

manner provided or permitted for the foreclosure of real property mortgages or deeds of trust in

the State of Arizona.

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20150805794

Until commencement of the first fiscal year of the Association immediately following the

conveyance of the first Unit to an Owner, the maximum monthly payment for such Common

Expenses payable by each Owner shall be in such amount as determined by the Board prior to

such first conveyance. Upon the commencement of the first fiscal year immediately following

the conveyance of the first Unit to an Owner and at the commencement of each and every fiscal

year thereafter, the Board may increase the maximum monthly payment for the Common

Expenses payable by each Owner by up to fifteen percent (15%) of the maximum monthly

payment for the Common Expenses payable by each Owner for the immediately preceding fiscal

year of the association. Notwithstanding anything contained herein to the contrary, from and

after the commencement of the first fiscal year immediately following the conveyance of the first

Unit to an Owner, the maximum monthly assessment may be increased above that established by

the fifteen percent (15%) increase provided that such increase shall have the assent of sixty seven

percent (67%) of each Class of Members who are voting in person or by proxy at a meeting

called for such purpose.

7.3 Special Assessments for Capital Improvements. In addition to the annual

assessments authorized above, the Association may levy, in any assessment year, a special

assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost

of any construction, reconstruction, repair or replacement of a capital improvement comprising a

part of the Common Elements, including fixtures and personal property related thereto, provided

that any such assessment shall have the assent of sixty seven percent ( 67%) of the votes of each

class of members who are voting in person or by proxy at a meeting duly called for such

purpose. Written notice of any meeting calledu1~;.i•1

.~~~mp1

....rpose of taking any action authorized

under this section shall be sent prepaid by mail or hand-delivered to all members not less than

ten (10) days nor more than sixty (60) days in advance of the meeting. At the first such meeting

called, the presence of members or of proxies entitled to cast sixty percent ( 60%) of all the votes

of each class of membership shall constitute a quorum. If the required quorum is not present,

another meeting may be called subject to the same notice requirements, and the required quorum

at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding

meeting. No such subsequent meeting shall be held more than sixty (60) days following the

preceding meeting.

8. Mortgages. Each Owner shall have the right, subject to the provisions hereof, to

encumber such Owner's Unit with a Mortgage. No Owner shall have the right or authority to

make or create or cause to be made or created any Mortgage, other lien or security interest,

which encumbers or purports to encumber any portion of the Condominium other than such

Owner's Unit, and the interest in the Common Elements appurtenant to such Unit.

9. Insurance Requirements Generally. Prior to the conveyance of the first Unit to an

Owner other than Declarant, and at all times thereafter, the Association shall obtain and maintain

in full force and effect certain casualty, liability and other insurance as hereinafter provided. All

such insurance shall be obtained from responsible companies duly authorized to transact

insurance business in the State of Arizona with no less than a Class X financial category rating in

Best's Key Rating Guide (or any comparable rating in any comparable publication). All such

insurance shall name the Association or its authorized representative or trustee as the insured, in

10

20150805794

its individual capacity for the benefit of the Owners and also either as attorney-in-fact or trustee

for all Owners. The Board shall review all such insurance at least annually and shall increase the

amounts thereof as it deems necessary or appropriate. All such insurance shall:

(1) Contain a special condominium endorsement providing for a waiver of

subrogation by the insurer as to claims against the Association, its directors, officers, employees

and agents and against each Owner and each Owner's employees, agents and invitees, and

against each Mortgagee of all or any part of the Condominium or of any Unit, and any other

person for whom the Association, any Owner or Mortgagee may be responsible and shall provide

for recognition of any authorized representative or trustee of the Association, if applicable;

(2) Provide that any "no other insurance" clause in the insurance policy shall

exclude any policies of insurance maintained by any Owner or Mortgagee of all or any part of

the Condominium or any Unit and that the insurance policy shall not be brought into contribution

with insurance maintained by the Owner or Mortgagee of all or any part of the Condominium or

any Unit;

(3) Contain a standard without contribution mortgage clause endorsement in

favor of the Mortgagee, its successors and assigns, of any Unit or all or any part of the

Condominium;

(4) Contain an "agreed amount" and "inflation guard" endorsement, if

available; Unofficial Document

(5) Provide that the policy of insurance shall not be terminated, cancelled or

reduced in coverage without at least thirty (30) days prior written notice to the Association and to

each Owner and to each Mortgagee covered by any standard mortgage clause endorsement;

( 6) Provide that the insurer shall not have the option to restore the premises if

condominium ownership of the Units and Common Elements is to be terminated or the Units and

Common Elements are to be sold as an entirety in accordance with paragraph 10 of this

Declaration; and

(7) Contain a "severability of interest endorsement" which shall preclude the

insurer from denying the claim of any Unit Owner or the Association due to the negligent acts of

the Association or any Owner(s).

Under no circumstances shall any policies of insurance be obtained where (i) under the

terms of the insurance carrier's charter, bylaws or policy, contributions or assessments may be

made against the Association, any Unit Owner or any Mortgagee; or (ii) under the terms of the

insurance carrier's charter, bylaws or policy, loss payments are contingent upon action by the

insurance carrier's board of directors, policy holders or members; or (iii) the policy includes any

limiting clauses ( other than insurance conditions) which could prevent any Unit Owner or any

Mortgagee from collecting insurance proceeds.

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20150805794

Such public liability and property damage insurance may provide for coverage of any

cross liability claims of Owners against the Association or other Owners and of the Association

against Owners without right of subrogation. Any insurance policy may contain such deductible

provisions as the Association deems consistent with good business practice.

Certificates of insurance coverage or copies of insurance policies shall be issued to and at

the expense of each Owner and each Mortgagee who makes or on whose behalf written request is

made to the Association for any such certificate or copy.

The cost and expense of all insurance obtained by the Association, except insurance

covering additions, alterations or improvements made to a Unit by an Owner or other insurance

obtained at the request of and specifically benefiting any particular Owner, shall be a Common

Expense.

9.1 Casualty Insurance. The Association shall obtain and maintain a master

policy or policies of casualty insurance covering the Common Elements and each Unit, exclusive

of the personal property contained therein, and all fixtures and building service equipment to the

extent such is a part of the Common Elements insuring against loss or damage by fire and such

other hazards as are covered under standard extended coverage policies, for not less than one

hundred percent (100%) of the replacement cost of the Common Elements and each Unit

( exclusive of the land, foundations, excavations and other items normally excluded from

coverage), as determined on an annual basis by an appraisal made in accordance with the rules

and regulations of the Board of Underwriters or like board or body recognized and accepted by

the insurance company or companies issuing ~utl:1 °i'Ei~lilance and a National Flood Insurance

Association Standard Flood fusurance Policy, unless such insurance is not available or the

Association determines that the Condominium is not located within a flood hazard area. Such

master policy or policies of casualty insurance shall, to the extent available, contain a standard

all risk endorsement and shall insure against all other perils which are customarily covered with

respect to condominium projects which are similar in construction, location and use.

9.2 Public Liability and Property Damage fusurance. The Association shall

obtain and maintain comprehensive public liability and property damage insurance covering

liability for bodily injury, including death, and liability for property damage occurring in, upon

or about the Common Elements. Each Owner and the Association shall be insured with respect to

such liability arising out of the ownership, maintenance, repair or operation of the Units and the

Common Elements. The limits ofliability for such coverage shall not be less than $1,000,000.00

for each occurrence with respect to bodily injury, death or property damage. The Association

shall also obtain and maintain steam boiler explosion insurance with limits of liability of not less

than $100,000.00 per occurrence in the event there is a steam boiler in operation within the

Condominium.

9.3 Workmen's Compensation and Employer's Liability Insurance. The

Association shall obtain and maintain workmen's compensation and employer's liability

insurance as may be necessary to comply with applicable law.

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20150805794

9 .4 Fidelity Bonds. The Association shall obtain and maintain bonds covering

all persons or entities which handle funds of the Association, including without limitation any

professional manager employed by the Association and any of such professional manager's

employees, in amounts not less than the maximum funds that will at any time be in the

possession of the Association or any professional manager employed by the Association but. in

no event less than the total of (i) assessments for a three (3) month period with respect to all

Units and (ii) all reserve funds maintained by the Association. With the exception of a fidelity

bond obtained by a professional manager covering such professional manager's employees, all

fidelity bonds shall name the Association as an obligee. In addition, all such bonds shall provide

that the same shall not be terminated, cancelled or substantially modified without at least thirty

(30) days prior written notice to the Association and all First Mortgagees.

9.5 Insurance by Owners. Each Owner shall be free to obtain such additional

or other insurance as he deems desirable, including insurance covering his furnishings and

personal property, including by way of illustration, but not of limitation, any additions,

alterations and improvements he may have made to his Unit, and covering personal liability of

himself and his employees, agents and invitees and any other persons for whom such Owner may

be responsible. Any insurance policy obtained by an Owner must not diminish or adversely

affect or invalidate any insurance or insurance recovery under policies carried by the Association

and must, to the extent possible, contain a waiver of the rights of subrogation by the insurer as to

any claim against the Association, its officers, directors, agents and employees and against other

Owners and their employees, agents and invitees and against any Mortgagee of all or any part of

the Condominium or any Unit or other person for which the Association or any such Owner or

Mortgagee may be responsible. Unofficial Document

9.6 Receipt and Application of Insurance Proceeds. Except in a case where a

Mortgagee or any other person shall have the legal right to receive insurance proceeds directly,

all insurance proceeds and recoveries under policies maintained by the Association shall be paid

to and received by an independent financial institution or title company selected by the

Association authorized to act as escrow agent for the benefit of the Association, the Declarant,

all Owners and all Mortgagees of any Unit or all or any part of the Condominium as their

respective interests may appear. Subject to the rights of any Mortgagee, the Association shall

have the right, acting alone, to adjust or settle any claim by it under any insurance maintained by

it. Such funds shall be disbursed by said escrow agent in accordance with the following

priorities, subject to such evidence of application as such escrow agent shall require, and shall be

applied by the Association as follows: first, as expressly provided in paragraph 11 hereof;

second, to the Owners or persons whom the Association determines are legally or equitably

entitled thereto; and third, the balance, if any, to the Owners in proportion to their respective

interest in the Common Elements. Notwithstanding any provision contained herein to the

contrary, the rights of and lien priority of any First Mortgagee shall not be affected by any loss,

damage or destruction and shall continue in any insurance proceeds payable with respect to the

Unit subject to such Mortgage in accordance with the provisions of such Mortgage.

9. 7 Other Insurance by the Association. The Association shall also have the

power and authority to obtain and maintain other and additional insurance coverage, including

but not limited to casualty insurance covering personal property of the Association, fidelity

13

20150805794

bonds or insurance covering employees and agents of the Association and insurance

indemnifying officers, directors, employees and agents of the Association. Notwithstanding any

other provisions of this Declaration, the Association shall continuously maintain in effect such

casualty, flood and liability insurance and fidelity bonds meeting the insurance and fidelity bond

requirements for condominium projects established by Federal National Mortgage Association or

Government National Mortgage Association, so long as either is a Mortgagee or Owner of a

Unit, except to the extent that such coverage is not available or has been waived in writing by

Federal National Mortgage Association or Government National Mortgage Association.

10. Destruction. Condemnation. Obsolescence. and Restoration or Sale of

Condominium.

definitions:

10.1 Definition. As used herein, the following terms shall have the following

(1) "Substantial Destruction" shall exist whenever the Board

determines that, as a result of any casualty, damage to or destruction of the

Condominium or any part thereof, the excess of estimated costs of Restoration (as

herein defined) over Available Funds (as herein defined) is fifty percent (50%) or

more of the estimated Restored Value of the Condominium (as herein defined).

"Partial Destruction" shall mean any other casualty, damage to or destruction of

the Condominium or any part thereof.

(2) "Substantial Co~r:.~~1£.IT~~~tvns" shall exist whenever the Board

determines that a complete taking of the Condominium has occurred or that a

taking of part of the Condominium by condemnation or eminent domain or by

grant or conveyance in lieu of condemnation or eminent domain has occurred, and

that the excess of the estimated costs of Restoration over Available Funds is fifty

percent (50%) or more of the estimated Restored Value of the Condominium.

"Partial Condemnation" shall mean any other such taking by eminent domain or

by grant or conveyance in lieu of eminent domain.

(3) "Substantial Obsolescence" shall exist whenever the Owners of

Units to which eighty percent (80%) of the undivided interest in the Common

Elements is appurtenant determine by vote that the Condominium or any part

thereof has reached an undesirable state of obsolescence or disrepair. "Partial

Obsolescence" shall mean any state of obsolescence or disrepair which does not

constitute Substantial Obsolescence.

(4) "Restoration", in the case of any casualty, damage or destruction,

shall mean restoration of the Condominium to a condition the same or

substantially the same as the condition in which the Condominium existed prior to

the casualty, damage or destruction; in the case of condemnation, shall mean

restoration of the remaining portion of the Condominium to an attractive, sound

and desirable condition; and, in the case of obsolescence, shall mean restoration

of the Condominium to an attractive, sound and desirable condition.

14

20150805794

(5) "Restored Value of the Condominium" shall mean the value of the

Condominium after restoration as determined by the Board.

( 6) "Available Funds" shall mean any proceeds of insurance or

condemnation awards or payments in lieu of condemnation received by the

Association and any uncommitted reserves of the Association other than amounts

derived through assessments or special assessments. Available Funds shall not

include that portion of insurance proceeds or condemnation awards or payments

in lieu of condemnation legally required to be paid to any party other than the

Association, including a Mortgagee of all or any part of the Condominium or of

any Unit, or that portion of any condemnation award or payment in lieu of

condemnation paid to the Owner of a Unit for the condemnation or taking of that

Owner's individual air space.

10.2 Restoration of the Condominium. Restoration of the Condominium shall

be undertaken by the Association without a vote of the Owners in the event of Partial

Destruction, Partial Condemnation or Partial Obsolescence and shall be undertaken in the event

of Substantial Destruction, Substantial Condemnation or Substantial Obsolescence unless the

Owners of Units to which eighty percent (80%) of the undivided interest in the Common

Elements is appurtenant consent to terminate the Condominium established pursuant to this

Declaration. Such restoration shall be performed substantially in accordance with this

Declaration and the original plans and specifications for the buildings, the Common Elements

and the Units. Unofficial Document

10.3 Sale of the Condominium. In the event of Substantial Destruction,

Substantial Condemnation or Substantial Obsolescence and the Owners of Units to which eighty

percent (80%) of the undivided interest in the Common Elements is appurtenant consent to

terminate the Condominium created pursuant to this Declaration, the Association shall cause a

termination agreement and notice of intent to sell the Condominium to be prepared and recorded

and the real estate shall be sold. Such termination agreement shall contain the ratification of the

Owners to which eighty percent (80%) of the undivided interest in the Common Elements is

appurtenant, shall specify a date after which the agreement will be void unless it is recorded

before that date, a statement that the real estate shall be sold and the minimum terms of the sale.

In the event of such sale, condominium ownership under this Declaration shall terminate and the

proceeds of sale and any insurance proceeds, condemnation awards or payments in lieu of

condemnation shall be distributed by the Association pro rata to each Owner according to the

ratio that the cubic content space of such Owner's Unit and its allocated Limited Common

Elements bears to the total cubic content space of all Units and Limited Common Elements in the

Condominium created pursuant to this Declaration. Such payment shall be made to Owners or, as

to Units which are subject to a Mortgage of record at the time of such payment jointly to such

Owner and such Mortgagee as their interests may appear.

10.4 Special Assessments for Restoration. Whenever Restoration is to be

undertaken, the Association may levy and collect assessments from each Owner in proportion to

such Owner's undivided interest in the Common Elements, payable over such period as the

15

20150805794

Association may determine, to cover the costs and expenses of Restoration to the extent not

covered by the Available Funds. Such special assessments together with interest at the rate of

twelve percent (12%) per annum from the date such special assessment became due, costs and

reasonable attorneys' fees, shall be secured by a lien on the Unit of each such Owner in the same

manner as the lien provided for in paragraph 7 hereof.

10. 5 Receipt and Application of Condemnation Funds. Except in a case where

a mortgagee or any other person shall have the legal right to receive condemnation awards or

payments in lieu of condemnation or eminent domain directly, all compensation, damages or

other proceeds constituting awards for condemnation or eminent domain or payments in lieu of

condemnation or eminent domain shall be paid, or if received by the Association shall be turned

over promptly in the identical form received without commingling with any asset or property of

the Association, to an independent financial institution or title company selected by the

Association authorized to act as escrow agent for the benefit of the Association, the Declarant,

all Owners and all Mortgagees of any Unit or all or any part of the Condominium as their

respective interests may appear. The Association shall have the right, acting alone, to adjust or

settle any condemnation award or payment in lieu of condemnation or eminent domain payable

to it. Such funds shall be disbursed by said escrow agent in accordance with the following

priorities, subject to such evidence of application as such escrow agent shall require. The amount

thereof equitably allocable as compensation for the taking of or injury to the individual air space

of a particular Unit or to Improvements of an Owner therein shall be apportioned and paid to the

Owner of such Unit or, as to Units which are subject to a Mortgage of record at the time of such

payment, jointly to such Owner and such Mortgagee as their interests may appear. The balance

of such funds shall be applied to costs and exr~~ie1

-°"-'"m.;,;'"'.estoration, if undertaken, and, to the

extent not so applied, shall be allocated as follows: first, any portion of such funds allocable to

the taking of or injury to the Common Elements shall be apportioned among all Owners of the

Common Elements according to the ratio that the cubic content space of each Owner's Unit and

its allocated Limited Common Elements bears to the total cubic content space of all Units and

Limited Common Elements in the Condominium created pursuant to this Declaration; secondly,

any portion of such funds received or awarded for severance damages shall be apportioned

among Owners of Units whose individual air space was not taken or injured according to the

foregoing ratio; thirdly, any portion of such funds received or awarded for consequential

damages or for other purposes shall be apportioned as the Association determines to be equitable

under the circumstances. The lien priority of any First Mortgagee shall not be disturbed by any

condemnation proceeding and shall continue in the proceeds of any condemnation award

attributable to the mortgaged Unit in accordance with the provisions of this paragraph.

10.6 Reorganization in the Event of Condemnation. Subject to the provisions of

A.R.S. § 33-1206, in the event all or substantially all of the individual air space within a Unit is

taken by condemnation or eminent domain, such Unit shall, upon payment of compensation as

hereinabove provided, cease to be a part of the Condominium, the Owner thereof shall cease to

be a member of the Association, and the undivided interest in Common Elements appurtenant to

that Unit shall be reallocated to each remaining Unit, which undivided interest in and to the

Common Elements shall be equal to the ratio that the cubic content space of each Unit and its

allocated Limited Common Elements bears to the total cubic content space of all Units and

Limited Common Elements then a part of the Condominium. fu the event the remaining portion

16

20150805794

of a Unit after condemnation or eminent domain is practically and lawfully occupyable by its

Owner and continued use is permitted by this declaration, the Unit, as altered by such taking,

shall remain a part of the Condominium, its Owner shall remain a member of the Association,

and the undivided interest in and to the Common Elements to such Unit and all other Units in the

Condominium shall be reallocated in the foregoing ratio. In either such event, the Association

shall promptly prepare, execute and record an amendment to the Declaration reflecting the

reallocations. Any remnant of a Unit rendered practically or legally unoccupyable after part of a

Unit is taken by condemnation or eminent domain shall become a Common Element.

11. Rights of Owners in any Distributions. In the event that any Owner or Mortgagee

is entitled to receive any distribution of money, property or other things from the Association for

any reason, including without limitation the sale or other disposition of all or any part of the

Common Elements or the cessation or termination for any reason of the Condominium created

hereby, such distribution shall be according to the ratio provided in Paragraph 10.6 hereof,

except as specifically provided to the contrary in paragraph 9 hereof.

12. Maintenance. Repairs and Replacements: Right of Access. Each Owner shall

furnish and be responsible for, at his own expense, all of the maintenance, repairs and

replacements within his own Unit, and portions of the Limited Common Elements allocated to

his Unit, except as hereinafter provided, including, without limitation all doors providing a

means of ingress to and egress from his Unit, except the painting of the corridor side of the Unit

entry door, all windows located in the exterior walls adjacent to his Unit, the sliding doors

opening onto any balcony or patio to which his Unit has sole access and the floor coverings

thereon, and each Owner shall be responsibleu75'.i"' CT.ic'0

~1t!aning of all Limited Common Elements

allocated to his Unit except the parking spaces and exterior windows. If, due to the willful or

negligent act of an Owner or a member of his family or guest or other occupant or visitor of such

Owner, or other person for whom such Owner may be responsible, damage shall be caused to the

Common Elements or to a Unit or Units owned by others or maintenance, repairs or

replacements shall be required which would otherwise be a Common Expense, then such Owner,

if liable for such damage under local law, upon receipt of a statement from the Board shall pay

for such damage and for such maintenance, repairs or replacements as may be determined by the

Board. The amount payable for such maintenance, repairs or replacements, together with interest

at the rate of four percent (4%) per annum in excess of the prime rate of interest announced by

The Valley National Bank of Arizona as the same may fluctuate on a daily basis from the date

such amount is due, costs and attorneys' fees, shall be secured by a lien against the Unit of such

Owner as provided in paragraph 7 hereof. An authorized representative of the Board, or of the

manager or managing agent of the Condominium, and all contractors and repairmen employed or

engaged by the Board or such manager or managing agent, shall be entitled to access at any time

to each of the Units as may be required in connection with maintenance, repairs or replacements

of or to the Common Elements or any equipment, facilities or fixtures affecting or serving other

Units or the Common Elements.

The Association shall maintain, repair and replace portions of the Limited Common

Elements including the surface of the corridor side of all Unit entry doors and the exterior

painted surface of each patio or balcony which forms an integral part of the exterior decor of the

building and shall be responsible for the cleaning of all windows exterior to each Unit and all

17

20150805794

Parking Spaces and shall maintain, repair and replace all the Common Elements, including

without limitation, the following:

(a) the complete building structure, including interior load bearing walls, but

excluding with respect to interior load bearing walls only reasonable wear and tear, shifting and

cracking due to settlement, shrinkage, expansion and contraction, and excluding interior

partitions in individual Units;

(b) the complete plumbing system, excluding fixtures, pipes, traps and other

plumbing components located within and serving individual Units unless the same serve more

than one (1) Unit, or the Common Elements;

( c) the complete building heating system, excluding thermostats located

within and servicing individual Units;

( d) the complete building air conditioning system, excluding fan coil units and

valves located within individual Units for the purpose of air conditioning such Units;

( e) the complete electrical system, excluding separate meters serving

individual Units, and fixtures and wiring located within and serving individual Units unless the

same serve more than one (1) Unit, or the Common Elements;

(f) the kitchen, bathroom or other exhausting system or systems (including

duct work) for the building, excluding exhau~1.0

!i'.m~:mgl1ds and duct work located within and

serving individual Units unless the same serve more than one (1) Unit, or the Common Elements;

(g) the cable television system and wiring therefor, excluding wiring and

components located within and serving individual Units unless the same serve more than one (1)

Unit, or the Common Elements;

(h) the complete project intercom security system excluding components and

wiring located within and serving individual Units unless the same serve more than one (1) Unit,

or the Common Elements.

13. Alterations, Additions or Improvements. Notwithstanding anything contained in

paragraph 18 hereof to the contrary, no alterations of any Common Elements or any additions or

improvements thereto or any alterations, additions or improvements to the patios, balconies or

Parking Spaces associated with any Unit shall be made by any Owner, except Declarant, without

the prior written approval of the Board. Any Owner may make non-structural alterations,

additions or improvements within the interior of his Unit, except any part of the plumbing or

electrical system, without the prior written approval of the Board, but such Owner shall be

responsible for any damage to any other Units or the Common Elements which may result from

such alteration, addition or improvement. In addition to the required approval of the Board, there

shall be no structural alterations or additions to any building without the prior approval of a

majority of the Owners given at a regular or special meeting of the members of the Association

and the prior approval of a majority of First Mortgagees. Unless otherwise determined at any

18

20150805794

such meeting, the cost of such alterations or additions shall be paid by means of a special

assessment levied and collected from each Owner in proportion to such Owner's undivided

interests in the Common Elements. Such special assessment together with interest at the rate of

four percent ( 4%) per annum in excess of the prime rate of interest announced by The Valley

National Bank of Arizona as the same may fluctuate on a daily basis, from the date such special

assessment became due, costs, reasonable attorneys' fees, and, after notice and an opportunity to

be heard, a late charge equal to twenty five percent (25%) of the amount of such assessment as

determined by the Board, shall be secured by a lien against each Unit as provided in paragraph 7

hereof.

14. Decorating. Each Owner, at his own expense, shall furnish and be responsible for

all of the decorating within his own Unit (but any furnishing or decorating of any patio or

balcony shall be subject to the provisions of paragraph 18 hereof) from time to time, including

painting, wallpapering, paneling, floor coverings, draperies, window shades, curtains, lamps and

other furniture and interior decorating. All window coverings visible from the exterior of the

buildings shall be of a neutral color or otherwise compatible with the exterior decor of the

building. Each Owner shall be entitled to the exclusive use of the interior unfinished surfaces of

the walls, floors and ceilings within his Unit, and each Owner shall have the right to decorate

such surfaces from time to time as he may see fit at his sole expense. Decorating and

maintenance of the Common Elements and any redecorating of Units to the extent made

necessary by any damage caused by maintenance, repair or restoration work by the Association

on the Common Elements shall be furnished by the Association and paid for as part of the

Common Expenses. Unofficial Document

15. Encroachments. If any portion of the Common Elements shall actually encroach

upon any Unit, or if any Unit shall actually encroach upon any portion of the Common Elements,

or if any Unit or entryway providing ingress and egress thereto or therefrom shall actually

encroach upon another Unit or entryway, as the Common Elements and the Units are shown on

the Plat attached hereto as Exhibit "B" or any subsequent Plat of the Condominium prepared

pursuant to any development right set forth in paragraph 34 hereof whether such encroachment

results from the initial construction or from subsequent repair, reconstruction, settlement or

shifting, there shall be deemed to be mutual easements in favor of the Owners of the Common

Elements and the respective Owners involved to the extent of such encroachment so long as the

same shall exist provided, however, that no such easement shall result from any alteration,

addition or improvement made by an Owner, except Declarant, without the prior written

approval of the Board. The Association shall at all times have the right to maintain any Common

Elements now existing or hereafter constructed, regardless of any encroachment now or hereafter

existing of any such Common Elements upon any Unit.

16. Purchase of Unit by Association. Upon the consent or approval of a majority of

Owners present and voting at a general or special meeting of the members of the Association or

in such other manner as may be deemed by the Board to be necessary or expedient, the Board

shall have the power and authority to bid for and purchase any Unit at a sale pursuant to a

mortgage foreclosure, trustee's sale under a trust deed, or a foreclosure of any lien for

assessments or other charges provided for in this Declaration, or at a sale pursuant to an order or

direction of a court, or other involuntary sale, and the Board shall have the power and authority

19

20150805794

to finance such purchase of a Unit by Mortgage, special assessment or any other financing

arrangement that the Board may deem necessary or expedient.

17. Use and Occupancy Restrictions. No part of the Condominium shall be used for

other than residential purposes and the related common purposes for which the Condominium

was designed, except that Declarant shall have the right to maintain sales and any other offices,

model units, and signs on the Condominium, together with rights of ingress and egress

therefrom, and to do such other acts and maintain such other facilities as are incidental to the

development and sale of the Units now or hereafter existing in the Condominium created hereby.

No Owner shall permit his Unit to be used for transient or hotel purposes or shall enter into any

Lease for less than the entire Unit or for a term of less than thirty (30) days. Any Lease for any

Unit shall be in writing, shall in all respects be subject to and in compliance with the provisions

of this Declaration, the Articles and Bylaws and shall expressly provide that a violation of any

such provisions shall be a default under such Lease, and a copy of any such Lease shall be

delivered to the Association prior to the commencement of the term of such Lease. Each Unit

shall be used as a single family residence or for such other purposes as are permitted by this

Declaration and for no other purpose. The foregoing restrictions shall not, however, be construed

in any manner as to prohibit an Owner from maintaining his personal and/or a reasonable

professional library therein and keeping his personal business records therein.

The Maid's Quarters Units shall be used only for housing of maids, servants and/or other

employees of the respective Owners thereof, and shall not, in any event, be used for any social

events of such Owner(s) or any other purpose. Unofficial Document

The Common Elements shall be used only for access, ingress and egress to and from the

respective Units by the Owners thereof, their agents, servants, tenants, family members,

licensees and invitees and for such other purposes as are incidental to the residential use of the

Units. The use, maintenance and operation of the Common Elements shall not be obstructed,

damaged or unreasonably interfered with by any Owner.

No Owner shall keep or maintain any thing or shall suffer any condition to exist in his

Unit or cause any other condition on the Common Elements which impairs any easement or right

of any other Owner or otherwise impairs or interferes with the use and enjoyment by other

Owners of their Units and the Common Elements. Subject to the foregoing, commonly accepted

household pets not exceeding a mature weight of twenty (20) pounds may be kept in a Unit, but

no such pets shall be bred or allowed loose or unsupervised on any part of the Condominium.

Walking of pets shall be prohibited except at such times and subject to such rules, regulations

and fines as the Board may from time to time establish.

If the Board determines that any motor vehicle is creating loud or annoying noises by

virtue of its operation within the Condominium, or that the parking or storage of any vehicle or

trailer on the Condominium is unsightly or detracts from the overall character of the

Condominium, such determination shall be conclusive and final that the operation or storage of

such vehicle is a nuisance, and said operation, upon notice by the Board to the owner or operator

thereof, shall be prohibited within the Condominium.

20

20150805794

No structure of a temporary character shall be permitted on the Condominium, and no

tent, shack, barn or trailer shall be permitted on the Condominium either temporarily or

pennanently, unless it is located thereon by or with the prior written consent of the Board.

No sign of any nature whatsoever shall be displayed or placed on any Unit, in any

window or on any part of the Common Elements. No "For Sale" or "For Rent" signs of any

nature whatsoever shall be permitted on any part of the Condominium, and no other signs or

graphics shall be pennitted on any patio or balcony or on any of the Common Elements. The

provisions of this paragraph relating to signs shall not apply to the Declarant until the last Unit

owned by Declarant in Crystal Point Condominium has been sold.

Except as initially installed by Declarant, no spotlights, flood lights or other high

intensity lighting shall be placed or utilized upon any building, structure, patio or balcony which

in any manner will allow light to be directed or reflected on the Common Elements or any part

thereof without the prior written consent of the Board.

No window air conditioners or portable units of any kind shall be installed in the

building.

Enclosures, shades, screens or other items affecting the exterior appearance of any patio

or balcony shall not be permitted without the prior written consent of the Board of Directors and

shall be subject at all times to the rules and regulations of the Board and to the provisions of

paragraph 18 hereof. All window coverings visible from the exterior of the buildings shall be of

a neutral color or otherwise compatible with t.'fi~'~ki'.t:l0

1lir decor of such building.

No radio, television or other antennas of any kind or nature shall be placed or maintained

upon any Unit or any other portion of the Condominium except that Declarant shall have the

right to install a master antenna or antennas and to provide access to such antenna to the Units.

No clotheslines shall be installed on any patio or balcony and no Owner shall permit any

personal property other than patio furniture and barbeques to be stored on any patio or balcony

which exceeds two feet four inches in height nor shall any draperies, blankets or plant boxes be

hung on the railings of any balcony.

Without limiting the foregoing, each Owner shall maintain and keep his Unit at all times

in a safe, sound and sanitary condition and shall repair and correct any condition or refrain from

any activity which might interfere with the reasonable enjoyment by other Owners of their

respective Units or of the Common Elements. No Owner shall place or permit any personal

property, garbage, debris or refuse to be placed or to accumulate on any portion of the Common

Elements adjacent to any Unit.

Each Unit Owner shall replace the water heater(s) installed in such Owner's Unit prior to

the expiration of seven (7) years from the date of installation of such water heater(s) and shall

furnish to the Association written evidence thereof in the fonn of a copy of a paid invoice within

thirty (30) days of the date of replacement, The Association shall maintain a replacement

schedule listing the installation date for all water heater(s) installed in Units in the

21

20150805794

Condominium. In the event an Owner fails to replace a water heater(s) as required hereby, the

Association, upon the expiration of thirty (30) days after written notice to such Owner, shall have

the right, but not the obligation to replace such water heater(s), in which event the Owner shall

reimburse the Association all costs incurred in making such replacement, together with an

amount equal to twenty percent (20%) of such costs to compensate the Association for the

extraordinary services rendered beyond its normal maintenance obligations, which amounts shall

be secured by a lien against such Owner's Unit in the same manner as the lien provided in

Paragraph 7 .2 of the Declaration.

Pursuant to the right of entry provided for in paragraph 20 hereof, the Board or its

authorized agents may enter any Unit in which a violation of these restrictions exists upon giving

reasonable notice to the Owner of such Unit and may correct such violation at the expense of the

Owner of such Unit. Such expense shall be secured by a lien against such Unit in the same

manner and with the same interest rate as the lien provided for in paragraph 7 hereof.

The Association may modify the foregoing restrictions or otherwise restrict and regulate

the use and occupancy of the Condominium by reasonable rules and regulations of general

application adopted by the Board from time to time.

18. Architectural Control. No building, fence, wall, antenna, tower, awning, sign or

other structure of any kind or character shall be constructed, erected, placed or maintained within

the Condominium, nor shall any exterior addition, change or alteration be made thereto or

therein, including without limitation to any exterior wall, patio or balcony, whether or not part of

any Unit, which is visible from the exterior of°~y0

oui1oing, and no additions to, changes in, or

alterations of landscaping, grade or drainage shall be made, until plans and specifications

showing the nature, kind, color, shape, height, materials, location and other physical attributes of

the same shall have been submitted to and approved in writing as to harmony of external design

and location in relation to surrounding structures and topography by the Board or by an

architectural committee appointed by the Board. In the event the Board, or such committee, if

one has been appointed, fails to approve or disapprove such proposal within thirty (30) days after

proper plans and specifications have been received by it, such plans shall be deemed to have

been disapproved. All such plans and specifications shall be delivered for submittal to the

committee at the Association's principal place of business. The restrictions contained in this

paragraph shall not apply to the Declarant in any way.

19. Exemption ofDeclarant from Restrictions and Reservation of Special Declarant

Rights. Notwithstanding anything contained in this Declaration to the contrary, none of the

restrictions contained in this Declaration shall be construed or deemed to limit or prohibit any act

of Declarant, its employees, agents, and subcontractors, or parties designated by it in connection

with any construction, completion, sale or leasing of any portion of the Condominium. In

addition to the foregoing, Declarant expressly reserves the following Special Declarant Rights, as

defined in A.R.S. § 33-1202(21) and the right to transfer such rights as provided in A.R.S. § 33-

1244:

1. The right to construct any improvements as provided herein;

22

20150805794

2. The right to exercise any Development Right as more fully set forth in

paragraph 34 hereof;

3. The right to maintain sales offices, management offices, signs advertising

the Condominium and model Units within the Condominium until the last Unit in Crystal Point

Condominium is sold to an Owner other than Declarant;

4. The right to use any easements through the Common Elements for the

purpose of making improvements within Crystal Point Condominium or within any real estate

described on Exhibit "D" attached hereto and incorporated herein by reference;

5. The right to appoint or remove any officer of the Association or any Board

member during any period of Declarant control as provided in paragraph 4 hereof.

20. Entry by Board or its Agent. The Board or its authorized agents may enter any

Unit at any time when any two (2) members of the Board deem it necessary or advisable for the

enforcement of any restriction hereinabove set forth, to effect emergency or other necessary

repairs or otherwise for the protection and preservation of that Unit or other Units provided,

however, that except in the event of an emergency, the Board shall give the Owner of such Unit

reasonable notice prior to such entry. In addition, the Board or its authorized agents may enter

any Unit at any time when any member of the Board or its authorized agent believes in his

discretion that an emergency exists and that such entry is necessary in order to protect any person

or property in such Unit or adjoining Units or for other good cause. If it becomes necessary to

break into a Unit because no key or means of ~cfc~§0

s"'was provided by the Occupant or Owner,

the Association, its directors, officers and agents shall not be liable for any damage done to the

Unit as a result of the exercise of this right of entry. The party exercising this right of entry shall

see that reasonable measures are taken to secure the Unit until either the Occupant or Owner

shall be notified that the Unit has been entered.

21. Roof Leaks and Repairs. The Association shall repair promptly all leaks or other

damage to the roofs of any of the buildings of which the Association has notice in writing,

provided, however, that the cost of repairing leaks or damage due to the willful or negligent act

of an Owner or a member of his family or guest or other occupant or visitor of such Owner or

other person for whom such Owner may be responsible shall be the obligation of such Owner as

provided in paragraph 12 hereof.

22. Public Dedication. Nothing contained in this Declaration shall be deemed to

constitute a dedication for public use or to create any rights in the general public. Nothing

contained in this Declaration shall be construed as creating an obligation on the part of the City

of Phoenix or any other governmental authority having jurisdiction over the Condominium to

maintain, repair or replace any portion of the Condominium or the appurtenances thereto.

23. Copy of Declaration to New Owners. The Board shall give each new Owner of a

Unit a copy of this Declaration and any and all amendments hereto within sixty (60) days notice

of the conveyance of a Unit to such new Owner. However, the failure of the Board to provide

such copy shall not relieve the new Owner from complying with this Declaration nor waive any

23

20150805794

of the rights, conditions or restrictions stated herein or create any liability on the part of the

Association, the Board or their agents.

24. Remedies. In the event that any Owner shall fail to comply with provisions of the

Act, this Declaration, the Articles, the Bylaws, or the rules and regulations of the Association,

the Association shall have each and all of the rights and remedies provided for in the Act, this

Declaration, the Articles, the Bylaws or said rules and regulations, or which may be available at

law or in equity and may prosecute any action or other proceeding against such Owner for

enforcement of such provisions or foreclosure of its lien and the appointment of a receiver for the

Unit, or damages, or injunctive relief, or specific performance, or judgment for payment of

money and collection thereof, or to sell the same as hereinafter provided, or any combination of

such remedies or any other and further relief which may be available at law or in equity, all

without notice and without regard to the value of such Unit or the solvency of such Owner. The

proceeds of any rental or sale shall first be applied to discharge court costs, other litigation costs,

including without limitation reasonable attorneys' fees, and all other expenses of the proceeding

and sale. The remainder of such proceeds shall be applied first to the payment of any unpaid

assessments or other charges and the satisfaction of any other damages, and any balance shall be

held by the Association for the payment of any future assessments or other charges. Upon the

confirmation of the sale, the purchaser of such Unit shall be entitled to a deed to the Unit and to

immediate possession of the Unit and may apply to the court for a writ of possession for the

purpose of acquiring such possession. The purchaser at any such sale shall take the Unit sold

subject to all of the covenants, conditions and restrictions contained in this Declaration. All

expenses of the Association in connection with any such action or proceeding, including court

costs and reasonable attorneys' fees and othelr~e·s0

ana1

expenses and all damages, liquidated or

otherwise, shall be secured by a lien upon the Unit of such defaulting Owner as provided in

paragraph 7 hereof and shall bear interest at the rate of four percent ( 4%) per annum in excess of

the prime rate of interest announced by The Valley National Bank of Arizona as the same may

fluctuate on a daily basis, from the date such were incurred.

In addition to the remedies granted to the Association pursuant to this paragraph 24, in

the event that any Owner or the Association shall fail to comply with the provisions of the Act,

this Declaration, the Articles, the Bylaws, or the rules and regulations of the Association, any

Owner shall have each and all of the rights and remedies provided for in the Act, this

Declaration, the Articles, the Bylaws or said rules and regulations or which may be available at

law or in equity and may prosecute any action or other proceeding against such Owner or the

Association for the enforcement of such provisions, injunctive relief and/or specific

performance.

Notwithstanding any provision of this Declaration to the contrary, any breach of any of

the covenants, conditions, restrictions, reservations and servitudes provided for in this

Declaration, or any right of reentry by reason thereof, shall not defeat or adversely affect the lien

and/or rights of any Mortgagee except as herein expressly provided, each and all of such

covenants, conditions, restrictions, reservations and servitudes shall be binding upon and

effective against any lessee under any Lease or against any Owner of any Unit whose title thereto

is acquired by foreclosure, trustee's sale, deed in lieu of foreclosure or otherwise.

24

20150805794

25. Amendment. Except as otherwise provided in this Declaration, the provisions of

this Declaration may be changed, modified or amended by an instrument in writing setting forth

such change, modification or amendment, signed by Owners of units to which not less than

eighty percent (80%) of the undivided ownership of the Common Elements is appurtenant and

acknowledged during the first twenty (20) years from the date ofrecordation of this Declaration

and thereafter signed by Owners of Units to which not less than seventy-five percent (75%) of

the undivided ownership of the Common Elements is appurtenant and acknowledged provided,

however, that so long as any Class B membership remains outstanding, the Declarant shall have

consented in writing to any such change, modification or amendment and provided further, that

fifty-one percent ( 51 % ) of all Eligible Mortgage Holders shall have consented to any change,

modification or amendment which establishes, provides for, governs or regulates any of the

following:

Elements;

the Units;

(1)

(2)

(3)

(4)

Voting;

Assessments, assessment liens or subordination of such liens;

Reserves for maintenance, repair and replacement of the Common

Responsibility for maintenance and repair of the Common Elements and

(5) Subject to the provisions0

of p'aragraphs 10 and 34 and the provisions of the

Act, reallocation of interests in the Common Elements or rights to the use of the Common

Elements;

(6) Boundaries of any Unit;

(7) Subject to the provisions of paragraphs 10 and 34 hereof, convertibility of

Units into Common Elements or of Common Elements into Units;

(8) Subject to the provisions of paragraph 34 and the provisions of the Act,

expansion or contraction of Crystal Point Condominium or the addition, annexation or

withdrawal of property to or from Crystal Point Condominium;

(9) Insurance or fidelity bonds;

(10) Leasing of Units;

(I 1) Imposition of any restrictions on the right of a Unit Owner to sell, transfer,

or otherwise convey such Owner's Unit;

(12) Any decision by the Association to establish self management if

professional management has been previously required by an Eligible Mortgage Holder;

25

20150805794

(13) Restoration or repair of the Condominium after damage, destruction or

condemnation in a manner other than as provided in paragraph 10.2 hereof;

(14) Subject to the provisions of this Declaration and the provisions of the Act,

any action to terminate the Condominium created hereby after substantial destruction or

condemnation occurs;

(15) Any provisions which are for the express benefit of Mortgage Holders,

Eligible Mortgage Holders or Eligible Insurers or Guarantors of First Mortgages on any Unit.

Any Eligible Mortgage Holder who receives a written request to approve any change,

modification or amendment which does not require the consent of fifty-one percent ( 51 % ) of all

Eligible Mortgage Holders and who does not notify the requesting party in the manner provided

in paragraph 26 hereof within thirty (30) days after receipt of such request shall be deemed to

have approved such change, modification or amendment.

Notwithstanding anything contained herein to the contrary, if the Act, this Declaration,

the Articles or the Bylaws require the consent or agreement of the Owners of Units to which a

specified percentage of the undivided interest in the Common Elements is appurtenant and/or

any other persons having any interest in the Condominium, including without limitation, the

Association, for any such amendment or for any action specified in the Act or this Declaration,

then any instrument so amending this Declaration or any provision hereof or providing for such

action shall be signed by the Association and/or the Owners of not less than such specified

percentage. Any such change, modification olaFntiu.rricnt accomplished under any of the

provisions of this paragraph 25 shall be effective upon recording of the instrument providing

therefor signed and acknowledged as provided herein.

26. Notices. Notices provided for in the Act, this Declaration, the Articles or the

Bylaws shall be in writing and shall be mailed postage prepaid if to the Association or the Board

addressed to the address to which payments of assessments are then sent and if to an Owner

addressed to his Unit. The Association or the Board may designate a different address or

addresses to which notices shall be sent from time to time by giving written notice of such

change of address to all Owners. Any Owner may also designate a different address or addresses

to which notices shall be sent by giving written notice of his change of address to the

Association. Notices shall be deemed delivered five (5) days after being deposited properly

addressed in the United States mail, postage prepaid, or immediately upon delivery in person.

Upon written request to the Board, which written request specifies an address to which

notices may be sent, any Mortgagee shall be given a copy of all notices permitted or required by

this Declaration to be given to the Owner or Owners of the Unit subject to the Mortgage held by

such Mortgagee.

27. Severability. If any provision of this Declaration, the Articles, the Bylaws or the

rules and regulations of the Association, or any section, clause, sentence, phrase or word, or the

application thereof in any circumstance, is held invalid by a court of competent jurisdiction, the

validity of the remainder of this Declaration, the Articles, the Bylaws or the rules and regulations

26

20150805794

of the Association, and of the application of any such provision, section, sentence, clause, phrase

or word in any other circumstance shall not be affected thereby, and the remainder of this

Declaration, the Articles, the Bylaws or the rules and regulations, shall remain in full force and

effect as if such invalid part were never included therein, and such invalid part shall be promptly

amended as herein provided or reformed by such court so as to implement the intent thereof to

the maximum extent permitted by law.

28. Perpetuities and Restraints on Alienation. If any of the easements, privileges,

covenants, interests or rights created by this Declaration would otherwise be unlawful, void or

voidable for violation of the rule against perpetuities, then such shall continue in existence until

twenty-one (21) years after the death of the survivor of the now living descendants of the

President of the United States, Ronald W. Reagan, or the Governor of Arizona, Bruce E. Babbitt.

29. Rights and Obligations. Each grantee of Declarant, by the acceptance of a deed of

conveyance, each purchaser under any agreement of sale within the meaning of A.RS. §33-741,

by execution of such agreement for sale and each Mortgagee by the acceptance of any instrument

conveying any interest in the Condominium as security for the performance of an obligation,

accepts the same subject to all restrictions, conditions, covenants, reservations, liens and charges,

and the jurisdiction, rights and powers created or reserved by this Declaration. All rights,

benefits and privileges of every character hereby granted, created, reserved or declared, and all

impositions and obligations hereby imposed, shall be deemed and taken to be covenants running

with the land and equitable servitudes and shall be binding upon and shall inure to the benefit of

any grantee, purchaser or any person having at any time any interest or estate in the

Condominium in like manner as though the pfu~'.i~mns' uf this Declaration were recited and

stipulated at length in each and every deed of conveyance, purchase contract or other instrument

of transfer, and each such grantee shall be entitled to bring, and shall be subject to, an action for

the recovery of damages, or for injunctive relief, or both, resulting from any breach of any such

provisions.

30. Waiver. Any right or remedy provided for in this Declaration shall not be deemed

to have been waived by any act or omission, including without limitation any acceptance of

payment or partial performance or any forebearance, except by an instrument in writing

specifying such right or remedy and executed by the person against whom enforcement of such

waiver is sought.

31. Easements.

31.1 Utility Easements. Notwithstanding any other provisions hereof, there is

hereby created a blanket non-exclusive easement upon, across, over and under the Condominium

( other than the interior of the Units) and the Common Elements for ingress, egress, installation,

replacement, repair and maintenance of all utility and service lines and systems, including by

way of illustration, but not of limitation, water, sewer, gas, telephone, electricity, television cable

and communication lines and systems. By virtue of this easement, it shall be expressly

permissible for the providing utility or service company to install and maintain facilities and

equipment on the Common Elements and to affix and maintain wires, circuits and conduits on, in

and under the roofs and exterior walls of the buildings; provided, that no such utility and service

27

20150805794

line or system may be installed or relocated on the Common Elements except as initially planned

and approved by Declarant or as thereafter approved by the Board. This easement shall in no

way affect any other previously recorded easements which affect the Condominium.

32. Protection for Eligible Mortgage Holders. All Eligible Mortgage Holders and

Eligible Insurers and Guarantors shall be entitled to written notification by the Association upon

the commencement of any eminent domain or condemnation proceedings against all or any part

of the Condominium or of substantial damage to or destruction of any part of the Condominium.

Upon written request, all Eligible Mortgage Holders and Eligible Insurers and Guarantors shall

have the right (i) to examine all books and records of the Association during normal business

hours; and (ii) to receive an audited financial statement of the Association as soon as available

and in any event within ninety (90) days following the end of any fiscal year of the Association;

(iii) to receive written notice of all meetings of the Unit Owners and to designate a representative

to attend all such meetings; (iv) to receive written notice of any default by any Mortgagor in the

performance of any obligation by such Mortgagor under this Declaration or the Articles and

Bylaws of the Association which default is not cured by such Mortgagor within sixty (60) days

of the occurrence of such default; (v) to receive written notice of any lapse, cancellation or

material modification of any insurance policy or fidelity bond maintained by the Association;

and (vi) to receive written notice of any proposed action which would require the consent of

Eligible Mortgage Holders holding Mortgages on Units to which a specified interest in the

Common Elements is appurtenant as set forth in this Declaration. With respect to audited

financial statements furnished pursuant to this paragraph, such statements shall be prepared at the

cost of the Association. Unofficial Document

33. Professional Management Agreement. Any Agreement for professional

management of the Condominium or any contract providing for services to be performed by the

Declarant for the Association shall provide for termination by the Association with or without

cause and without payment of a termination fee or penalty on thirty (30) days written notice, and

no such contract or agreement shall be of a duration in excess of two (2) years, renewable by

agreement of the parties for successive one (1) year periods.

34. Reservation of Development Rights. Declarant hereby expressly reserves the

following Development Rights, as provided in A.RS. § 33-1202(11) and the right to exercise

such Development Rights without the consent of any Mortgagee or any Owner:

1. To add real estate to the Condominium created hereby;

2. To create easements, Units, Common Elements or Limited Common

Elements within any portion of the Condominium created hereby;

3. To subdivide Units, convert Units into Common Elements or convert

Common Elements into Units;

4. To make, by merger agreement or other instrument, this Condominium a

part of an adjacent condominium which may be constructed by Declarant upon all or a portion of

the real estate described on Exhibit "D" attached hereto. Declarant expressly reserves the right to

28

20150805794

create in such merger agreement or other instrument certain reciprocal use and enjoyment,

ingress and egress easements over and across the Common Elements of this Condominium to the

benefit of such adjacent Condominium;

5. To amend this Declaration to comply with applicable law or to correct any

error or inconsistency in this Declaration provided that such amendment does not adversely

affect the rights of any Unit Owner;

6. To amend this Declaration to comply with the rules or guidelines, in effect

from time to time, of any governmental or quasi-governmental entity or Federal corporation

guaranteeing or insuring Mortgage loans or governing transactions involving Mortgage

instruments, which amendment rights shall be exercised, if at all, prior to the expiration of the

maximum period ofDeclarant control as provided in A.R.S. § 33-1243(D).

The Development Rights enumerated as subparagraphs 34.1 through 34.4 hereinabove

shall expire on May 31, 1993, unless sooner relinquished by Declarant.

Unofficial Document

29

20150805794

CERTIFICATION

The President of the Association hereby certifies that, to the best of the Association's ability, the

provisions contained within this Restated Declaration are a true and accurate restatement of the

original Declaration with the incorporation of the two (2) amendments thereto and the correction

of a typo. No alterations or amendments have been made to the Declaration, except for

amendments previously ~ed by the Declarant, Association and/or Members.

DATEDthis_l_dayof ,f/'a V r 2015.

STATE OF ARIZONA

County of Maricopa

)

) ss.

)

, "') ..Bl2 ~ 1} {' 111 ,1 /) n. I\ Unofficial Document S b fi l On tl;lis·...:J""'"-,-,-- day of , un~ z:. , 201 , e ore me personal y

appeared ff 11 l<t> t l) G:.i l ES , whose identity was proved to me on the basis of

satisfactory evidence to be the person whose name is subscribed to this document, and who

acknowledged that he/she signed this document.

Notary Seal:

_ ••• - - - -

8 RONALD. FRAKES

Notary Public • Arizona • , Maricopa County

1 My Commlaalon Expfree 1

June 30, 2011

30

20150805794

EXHIBIT A

LEGAL DESCRIPTION

CRYSTAL POINT

PHASE ONE

THAT PART OF LOT 12 OF WHITTON ACRES A SUBDIVISION RECORDED IN BOOK 3,

PAGE 64, MARICOPA COUNTY ARIZONA RECORDS AND A PART OF COUNTRY

CLUB TOWERS A SUBDIVISION RECORDED IN BOOK 239, PAGE 40, MARICOPA

COUNTY ARIZONA RECORDS, DESCRIBED AS FOLLOWS:

FROM THE CENTER OF SECTION 28, TOWNSHIP 2 NORTH, RANGE 3 EAST OF THE

GILA AND SALT RIVER BASE AND MERIDIAN, MEASURE THENCE WEST ALONG

THE MID SECTION LINE OF SAID SECTION 28, A DISTANCE OF 737.58 FEET;

THENCE NORTH 00° 09' 39" EAST 45.50 FEET TO THE POINT OF BEGINNING AND A

POINT ON THE SOUTH LINE OF LOT 1 OF THE SAID COUNTRY CLUB TOWERS;

THENCE ALONG THE SOUTH LINE OF THE SAID LOT 1 AS FOLLOWS: WEST 50.55

FEET; THENCE SOUTH 9.50 FEET; THENCE WEST 25.41 FEET; THENCE NORTH 88°

38'20" WEST 168.40 FEET; THENCE WEST 185.70 FEET TO THE SOUTHWEST CORNER

OF THE SAID LOT 1; THENCE LEAVING THE SOUTH LINE OF THE SAID LOT 1

NORTH 00° 09' 39" EAST ALONG THE WEST LINE OF THE SAID LOT 1 AND ALONG

THE WEST LINE OF THE SAID LOT 12, WHITTON ACRES, A DISTANCE OF 260.00

FEET TO A POINT ON THE SOUTH RIGHu1~v1

}

0

.:"vv"h Y LINE OF MITCHELL DRIVE (A

PUBLIC STREET); THENCE ALONG THE SAID SOUTH RIGHT-OF-WAY LINE AS

FOLLOWS: EAST 83.02 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT

HAVING A RADIUS POINT BEARING SOUTH 20.00 FEET; THENCE SOUTHEASTERLY

16.12 FEET ALONG THE ARC OF THIS CURVE THROUGH 46° 11' 13" OF CENTRAL

ANGLE TO A POINT OF A REVERSE CURVE TO THE LEFT HAVING A RADIUS POINT

BEARING NORTH 46° 11' 13" EAST 45.00 FEET; THENCE EASTERLY 80.45 FEET

ALONG THE ARC OF THIS CURVE THROUGH 102° 26' 17" OF CENTRAL ANGLE;

THENCE LEAVING THE SAID SOUTH RIGHT-OF-WAY LINE OF MITCHELL DRIVE;

EAST 115.00 FEET; THENCE SOUTH 57° 20' 07'' EAST 175.09 FEET; THENCE SOUTH

00° 09' 39" WEST 160.00 FEET TO THE POINT OF BEGINNING.

NOTE: THE ABOVE DESCRIBED PARCEL CONTAINS 103,919 SQUARE FEET OR

2.3857 NET ACRE.

31

20150805794

EXHIBITB

PLAT

An Amended Replat of a Condominium Plat for Crystal Point Condominium Phase I, Recorded

in Book 341 of Maps, at page 38 of the records of the County Recorder of Maricopa County,

Arizona.

Unofficial Document

32

20150805794

EXHIBITC

UNDIVIDED INTEREST IN THE COMMON ELEMENTS

UNIT

lA

1B

lC

lD

lE

lF

2A through 12A, 14A and 15A

2B through 12B, 14B and 15B

2C through 12C, 14C and 15C

2D through 12D, 14D and 15D

16E through 18E

16F through 18F

16G through 18G

19H

191

CUBIC CONTENT

OF UNIT

4,903

4,035

3,993

3,505

4,429

5,246

22,990

26,267

18,905

22,800

24,367

30,732

31,926

42,026

40,446 Unofficial Document

33

INTEREST OF

EACH UNIT

.003159

.002600

.002573

.002258

.002853

.003380

.014812

.016987

.012180

.014689

.015699

.019800

.020565

.027076

.026058

20150805794

EXHIBITD

LEGAL DESCRIPTION

CRYSTAL POINT

PHASE TWO

THAT PART OF LOT 12 OF WHITTON ACRES A SUBDNISION RECORDED IN BOOK 3,

PAGE 64, MARICOPA COUNTY ARIZONA RECORDS AND A PART OF COUNTRY

CLUB TOWERS A SUBDIVISION RECORDED IN BOOK 239, PAGE 40, MARICOPA

COUNTY ARIZONA RECORDS, DESCRIBED AS FOLLOWS:

FROM THE CENTER OF SECTION 28, TOWNSHIP 2 NORTH, RANGE 3 EAST OF THE

GILA AND SALT RNER BASE AND MERIDIAN, MEASURE THENCE WEST ALONG

THE MID SECTON LINE OF SAID SECTION 28, A DISTANCE OF 737.58 FEET;

THENCE NORTH 00° 09' 39" EAST 205.50 FEET TO THE POINT OF BEGINNING;

THENCE NORTH 57° 20' 07'' WEST 175.09 FEET; THENCE WEST 115.00 FEET TO A

POINT ON THE WEST LINE OF LOT 1 OF THE SAID COUNTRY CLUB TOWERS, SAID

POINT BEING A POINT ON A CURVE CONCAVE TO THE NORTH AND HAVING A

RADIUS POINT BEARING NORTH 56° 15' 04" WEST 45.00 FEET; THENCE

NORTHERLY 26.51 FEET ALONG THE ARC OF THIS CURVE AND ALONG THE

WESTERLY LINE OF THE SAID LOT 1 A DISTANCE OF 26.51 FEET THROUGH 33° 44'

56" OF CENTRAL ANGLE TO A CORNER OF THE SAID LOT 1; THENCE EAST 10.85

FEET TO A CORNER OF THE SAID LOT ltfr.J.~1~e.d NORTH 00° 09' 39" EAST 268.05

FEET TO THE N.W. CORNER OF THE SAID LOT 1; THENCE SOUTH 57° 49' 10" EAST

ALONG THE NORTHERLY LINE OF THE SAID LOT 1 A DISTANCE OF 305.83 FEET;

THENCE SOUTH 00° 09' 39" WEST 90.00 FEET; THENCE SOUTH 45° 09' 39" WEST

21.21 FEET; THENCE SOUTH 00° 09' 39" WEST 119.71 FEET TO THE POINT OF

BEGINNING.

NOTE: THE ABOVE DESCRIBED PARCEL CONTAINS 61,688 SQUARE FEET OR 1.4162

NET ACRES.

34