NAME:

IDECLARANTS:

DECLARATION

OF

SUBMISSION OF PROPERTY TOHORIZONTAL PROPERTY REGIME

PURSUANT TO CHAPTER -499BOF THE CODE OF lOW A

Blue Jav Ridge Condominiums

Chael Design and Development, Inc.2423 2nd Street

Coralville, Iowa 52241(3 19) 3 3 8-3 3 42

(319) 338-3342

DATE OF DECLARATION: 1999.

LEGAL COUNSEL: R. Bruce HaupertLEFF, HAUPERT, TRAW

& WILLMAN, L.L.P. 222 South Linn Street P ..O. Box 2447

Iowa City, Iowa 52244-2447(319) 338-7551

/vco

TABLE: OF CONTENTS

Preliminary Representations 1

ARTICLE1.2.3.4.5.6.7.8.9 .10.11.12.13.14.

ARTICLE

1.2.3.

ARTICLE1.2.3 .4.5.6.7.

ARTICLE1.

ARTICLE1.2.3.4.

I. DEFINITIONS •..•••••••••••••.•••••••••••••••• ,2Declarants 2Declaration 2Project 2Uni t 2General Cornmon Elements 2Limi ted Cornmon Elements 2Building 2Condomini um , 3Owner , 3Associa tion , 3Condominium Documents 3Plural and Gender 3Severability 3Incorporation 3

II. DESCRIPTION OF LANDt BUILDINGS t

AND UNI T S ••••••••••••••••••••••••..••••••••• 3Description of Land 3Description of Buildings 3Description of the Units 5

III. OWNERSHIP INTERESTS •••••••••••••• '.••••••••• 6Exclusive Ownership and Possession by Owner 6Appurtenances 6Undivided Fractional Interest 6General Cornmon Elements 6Limited Cornmon Elements 6Association Membership and Voting Rights 6Cross-Easements 7

IV. GENERAL COMMON ELEMENTS ••• , ••••••••••••••••. 7Definition 7

V. LIMITED COMMON ELEMENTS ••..••••••••••••••••.. 8Definition 8Reservation 8Exception ,..8Right of Association 8

ARTICLE VI. DECLARANT I S RESERVED RIGH'I'S ANDPO WE R S • • • • • • ., • • • • • • • • • ., • • • • • • e ., • • • • • • • • • • • • 9

1. Declarants' Activities 92. Easements " 93. Designation of Association Directors 9

l

ARTICLE1.2.3.4.5.6.7.8.9.10.11.

ARTICLE

1.2.3.4.5.

VII. MANAGEMENT OF THE REGIME •• o •••••••••••••••• 9Association; Council of Co-owners ".9Compliance " 10Powers of Association 10Partition 10Membership, Voting Rights 10Restraint upon Assignment 10Board of Directors 10Discharge of Liability 11Limitation on Association's Liability 11Indemnification of Directors and Officers 11Agent to Receive Service of Process 12

VIII. MAINTENANCE, ALTERATION ANDIMPROVEMENT •• 0 • 0 •••••••••••••••••••••••••• 1. 2

Def initions 12Maintenance by Association." 12Maintenance by Owner 13Alterations or Improvements by Owner 13Al tera tions or Improvements by the l\ssociation 14

ARTICLE IX. CONDITIONS OF AND RESTRICTIONS ONOWNERSHIP, USE, AND ENJOyMENT ••••••••••••• 1. 4

1. Subjection of the Property to Certain Provisions 142. Use of Property > •••••••• , 143. No Waiver 15

ARTICLE1.2.3.4.5.6 .7.8.9.

ARTICLE1.2.

ARTICLE1.2.

X. INSURANCE AND CASUALTY •••••••••••••••• ,•••• 1. 6General Liability and Property Damaqe 16Fire and Casualty " ,16Fire and Casualty on Individual Units 17Personal Liability on Individual Units 17Addi tional Coverage " 17Loss Adjustment 17Association as Trustee for Proceeds " 17Abatement of Common Expenses 19Review of Insurance Needs 20

XI. TERMINATION ••••••••••••••••••••••••••••••• 20Procedure 20Form of Ownership after Termination 2.0

XII. AMENDMENTS AND MISCELLANEOUS ••••• 0 •••••••• 21.Procedure ~!1Amendment of Ownership Interest 22

Signatures

Acknowledgement

II

EXHIBITS

EXHIBIT "A"

ARTICLEARTICLEARTICLEARTICLEARTICLEARTICLEARTICLEARTICLEARTICLEARTICLE

ARTICLES OF INCORPORATION OF BLUE ,JAYRIDGE CONDOMINIUMS OWNERS ASSOCIATION ••••• 23

I. Name and Principal Office 0 •.••••••• 023

II. Corporate Existence. 0 .••••••••••.••• 0 ••• 00 ••• 23

III. Purposes and Powers 0 ••••...••••..• 0.23

IV. Registered Office and Agent o •••••• o ••• 0 24V. Board of Directors 0 ••••••••••• " • 0 24VI. Bylaws " 0 ••• 0 .••. 0 •••• 0 . 24

VII. Members and Voting 0 •••••••••• 0 ••••• 25VIII. Distribution of Assets Upon Liquidation ....25IX. Amendment 0 0 • • . • . • • . . . • . . . • . .• 0 0 25X. Incorporator 0 •••••••••••••••••• 0 ••••••••••• 25

EXHIBIT "13" BYLAWS OF BLUE JAY RIDGECONDOMINIUMS OWNERS ASSOCI1~TION ••••••••••• 27

10 Members and Voting Rights ..0 .. : ...•••••• 0" 0." •. " •••.• 27

II. Members I Meetings .0 ••••.•••. 0 0 0 •• 0 ••.••.•.•....••• 0 . 0 28

III. Board of Directors 0 029

IV. Powers and Duties of the Board of Directors .0 •••••• 0' 31V. Officers ..0 ••••••••.••••••••.• 0 ••.•••••••. 0 ..• 0 .••• 0 •• 32VI. Fiscal Management 0 •••••• , •• 0 •..•..•.. 0 0 33VII. Amendment ..0 • . . •.... 0 ...•.... 0 •• 0 0 • 0 • 0 • . • 0 , • 0 • 0 • . • • • 3 6VIII. Miscellaneous Provisions. 0 .•••••••. 0 •••.• " ••.•.• 0.037

IX. Definitions " _0 ••• 38

EXHIBIT "c"

EXHIBIT liD"

EXHIBIT liE"

EXHIBIT "F"

EXHIBIT "G"

Ivcp

S URVE Y .•..........•.................. ~ .. 41 • 4 0

RULES AND REGULATIONS FOR BLUE JAYRIDGE CONDOMINIUMS OWNERS ASSOCIATION ••••• 41.

SURVEYOR I S AFFIDAVIT .••••••.•••••••••••••• 43

SPECIFICATI01fS •••••••••••••••••••••••••••• 44

UNIT NUMBER, UNIT SQUARE FOOTAGE,PERCENTAGE OF COMMON ELEMENTS, PER­CENTAGE OF COMMON EXPENSES AND ASSIGN-MENT OF GARAGE UNITS •••••••••••••••••••••• 4 5

iii

DECLARA TION

OFSUBMISSION OF PROPERTY

TO HORIZONTAL REGIME ESTABLISHING A PLANFOR

CONDOMINIUM OWNERSHIP OF PREM1SES

This Declaration of Submission of Property to the HorizontalRegime is made and executed in Iowa City, Iowa, the day 0 f

1 1999, by Chael Design and Development, Inc.hereinafter referred to as "DECLARANTS", pursuant to theprovisions of the Horizontal Property Act, Chapter 499B, Code ofIowa, as amended.

WIT N ]~ S S E T H:

WHEREAS, DECLARANTS are the owners of certain real property located mCoralville, Iowa, and more particularly described as follows:

Lot 1, Oakdale Plaza First Addition to Coralville, Iowa, according to the Plat recordedin Book at page records of Johnson County.

and;

WHEREAS, DECLARANTS are the owners of the above-described real estate andbuildings and other improvements to be constructed upon said real estate and it is the desire andthe intenti on of the DECLARANTS to divide the Project into Condominiums and to sell andconvey the same to various purchasers, pursuant to the provisions of the aforesaid HorizontalProperty Act, and to impose upon said propeJrty mutually beneficial restrictions, wvenants, andconditions;

and;

WHEREAS, DECLARANTS desire and intend by filing this ]Declaration to submit theabove-described property and buildings and other improvements constructed thereon, togetherwith all appurtenances thereto, to the provisions of the aforesaid Act as a Condom~nium Project;

NOW, THEREFORE, the DECLARANTS do hereby publish and declare that allproperty described above is held and shall be held and conveyed subject to the followingcovenants, conditions, uses, limitations and obligations, all of which are declared and agreed tobe in furtherance of a plan for the improvement of said

property and the division thereof into condominiums and shall be del~med to run with the landand shall be a burden and a benef it to DECLARANTS, their successors and assigns and anyperson acquiring or owning an interest in the real property and improvements, their grantees,successors, heirs, executors, administrators, devisees and assigns.

ARTICLE 1.

DEFINITIONS.

1. DECLARANTS. The term "DECLARANTS" shall ffiI~anChael De:sign andDevelopment, Inc. which have made and executed this Declaration.

2. DECLARATION. The term "DECLARATION" shall mean this instrument bv

which Blue Jay Ridge Condominiums is established as provided under the Horizontal PropertyAct.

3. PROJECT. The term "PROJECT" shall mean the entire parcel of real estateproperty referred to in this Declaration to be divided into Condominiums, including all structuresthereon.

4. UNIT. The term "UNIT" shall mean one or more rooms occupying all or part ofa floor intended for use as a residence and not owned in common with the other owners in the

Regime. The boundary lines of each Unit are the interior surfaces of its perimeter walls, bearingwalls, floors, ceilings, windows and window frames, doors and door frames, and trim, andincludes the portions of the Building so described and the air space so encompassed. A unitincludes, but is not limited to. the living areas, garage, storage areas and stairways, if any. Theregime will consist of eight buildings, each containing 12 units. Ground level units shall haveattached patios and 2nd and 3rd level units shall have attached decks. The te= unit shall includeall references to patios and decks described herein. Buildings 2861,2863,2867, and 2869 shallhave attached garages assigned to specific units per Exhibit "G" attached hereto. Units inbuildings 2865, 2871, 2873, and 2875 shall have detached garages assigned to each unit as setforth in Exhibit "G" attached hereto.

5. GENERAL COMMON ELE,MENTS. The term "GENERAL COMMONELEMENTS" shall have the meaning as defined in ARTICLE IV.

6. LIl\1ITED COMMON ELE~NTS. The term "Lllv1ITED CO~1MONELEMENTS" shall have the meaning as defined in ARTICLE V.

7. BUILDING. The term "BUllJDING" shall mean and include each dwellingstructure constructed on the real estate described herein, constituting the eight 12··unit Buildingswhich are

2

included In this Condominium Regime.

8 . CONDOMINIUM. The term "CONDOMINIUM"estate in the real property owned by any Owner,undivided interest in the Common Elements andseparate interest in a Unit.

means the entireconsisting of anownership of a

9 . OWNER. The term "OWNER" means any per:30n with anownership interest in a Unit in the Project.

10. ASSOCIATION. The term "ASSOCIATION" means Blue JayRidge Condominiums Owners Association and its successors.

11. CONDOMINIUM DOCUMENTS. The term "CONDOMINIUMDOCUMENTS" means this Declaration, and all Exhibits attachedhereto including the Articles and bylaws of the Association.

12. PLURAL AND GENDER. Whenever the context :30 permits orrequires, the singular shall include the plural and the plural thesingular, and the use of any gender shall include all genders.

13. SEVERABILITY. The invalidityrestriction, agreement, undertaking, or otherCondominium Document shall not affect theremalnlng portions thereof.

of any covenant,provi~3ions of anyvalidity of the

14. INCORPORATION. Exhibits attached hereto and referredto herein are hereby made a part hereof with the same force andeffect as other provisions of this Document.

ARTICLE II.

DESCRIPTION OF LAND 1 BUILI:IINGS, AND UNITS

1. Description of Land.Regime is located in Coralville,legally described as follows:

TheJohnson

land submittedCounty, Iowa,

toand

thelS

Lot 1, Oakdale Plaza First Addition to Coralville, Iowa,according to the Plat recorded in Book at page____ , records of Johnson County.

2 . Description of Buildings. The Condominiwn Regimewill consist of 8 Buildings" with each building containing 12dwelling Units. Buildings 2861, 2863, 2:367, and 2869, shallcontain attached garages. Buildings 2865, 2871, 2:373, and 2875shall have unattached garage stalls assigned to individual units.All 8 Buildings will be constructed to the following generalspecifications:

3

Footings & Floor: Footings are 8"x16" concrete. Main floor is 3 1/2" concrete over 4" rock. 42" concrete footing with 8" x 6" spread footing.

Exterior Walls: Exterior walls are 2: x 6"--16" O.c. on the 1st floor, 2 x 4 on 2nd andl3rd, covered

with Thermoply & Tyvek or Typar paper and brick and vinyl siding, R-19 fiberglassinsulation 1st, R 13 on 2nd and 3rd, poly vapor barrier and Sheetrock.

Floor Decks: Floor joists are 11 7/8 TGI 16" or 19.2" or 12" D.C. covered with 3/4" T&GaSB.

Interior Walls: All interior walls are 2" x 4"--16" D.C. and are covered with 5/8" or 1/2"

Sheetrock with three (3) coats tape and texture. Sound walls are double 2" x 4'''' walls with two(2) layers of 3 1/2" fiberglass insulation separated by a 1/2" airspace. Interior walls are finishedwith two (2) coats Latex paint.

Ceilings: All ceilings are covered with 5/8" or 1/2" Sheetrock with taped plus three(3) coats fill and medium texture.

Insulation: All exterior walls are insulated with 5" fiberglass R-19 insulation withpoly vapor barrier. Ceiling insulation is 10" blown fiberglass, insulation R-40.

Roof Engineered roof trusses are placed 24" a.c. with 1/2" OSB sheeting, 15 No. felt and235 No. self-sealing asphalt and fiberglass shingles.

Exterior Trim: Soffits, gutters, ridge vents and roof edge are aluminum. All other exterior trimis vinyl, aluminum, or brick.

Windows: All windows are Gerkin vinyl insulated aiass with scre'ens.

Exterior Doors: Exterior doors are 1 3/4" steel insulated.

A"o-Qliances: Appliances are Hotpoinr- and white in color, including 18 cubic foot refrigerator,self-cleaning range, dishwasher, aTR microwave, XL capacity washer, and largecapacity dryer.

Interior Doors & Trim: All interior doors are finished flush natural oak with matching trim-

4

Bath Cabinets: Vanity tops are post-formed laminate. Vanitycabinets are Merillat.

Ki tchen Cabinets: Kitchen cabinets are Merillat. Counter-tops are post-formed laminate.

Electrical: Electrical service lS 100 amp for each unit.Each unit lS wired for the following: Unventedmicrowave hood; at least one exhaust fan, standardoutlets and lights, smoke detector; at leas t three (3)telephone outlets, at least three (3) cable televisionoutlets; electrical washer and dryer hookups and garbagedisposal.

Heatina and Air Conditioning: Each unit has its own furnaceand air conditioner. Heating is by gas-forced air andcentral air conditioner.

Plu..lllbing: All interior underground phunbing lS copper andPVC. Waste and vent lines are plastic. All interiorwater lines are AQUA-PEX. Each unit has the followingfixcures: one (1) white stool; one (1) white fibergla~;stub/shower unit; one (1) lavatory with two bowls; one(1) stainless steel kitchen sink; one (1) disposalinsinkerator Model 333 or equivalent, washer and dryerhookups, forty (40) gallon natural gas water heater.

Paint.ing: All interior wall surfaces have two (2) coatslatex paint with eggshell finish.

Floor Coverings: Carpeting is a nylon by Shaw Industries orthe like. Vinyl in kitchen is Silverado by Manningtonor the like. Vinyl in baths is Preference by Tarkett orthe like. Carpet in the corrunon hallways lS a 22 oz.commercial carpet.

3 . Description of t},le Units. The Condominium Regimeconsists of a total of 96 Units. Each first. and second floor Unitcontains 8.29% of the square foot area of the Building in whichthe Unit is located, and each third floor unit. contains 8.42% ofthe square foot area of the Bu.ilding in which the Unit is located,each Unit is an Owner of 1/96th of the CommonElement.s, each Unitshall pay 1/96th of the CommonExpenses, and each Unit shall beentitled to one (1) vote in the Association. Attached hereto aspart of Exhibit "e" is a survey showing the location of theBuilding(s), the Units within such Building, and the CorrunonElements to which each has imnediate access. Also attached heretoas part of Exhibit" CII is the floor plan for the Buildings, andfor the Units located within said Buildings, which t:ogether withthe Definition of the term Unit in ARTICLEI. shows the dimensionsof each Unit.

5 -

ARTICLE III.

OWNERSHIP INTERESTS

1. Exclusive Ownership and Possession bv Owner. EachOwner shall be enti tled to exclusive ownership and possession ofhis or her Uni t . Each Owner shall be enti tled to an undivided1/96 th interes t in the CorrunonElements. Said percentage of theundivided interest of each Owner in the CorrunonElements shall havea permanent character and shall not be altered without. the consentof all Owners expressed in an amended Declarat.ion duly recorded.The percentage of t.he undivided interest in the CoromonElementsshall not be separated from the Unit to which it appertains andshall be deemed to be conveyed or encumbered or released fromliens with the Unit even though such interest is not expresslymentioned or described in the conveyance or other instrument.Each Owner may use the Cornmon Elements in accordance wi th thepurpose for which they are intended, without hindering orencroaching upon the lawful rights of the other Owners.

An Owner shall not be deemed to own the undecorated and/orunf inished surfaces of the perimeter walls, cei ling, windows anddoors bounding his or her Unit, nor shall the Owner be deemed toown the utilities running through his or her Unit which areutilized for, or serve, more t:han one Unit, except as a percentageof an undivided interest in the Cornmon Elements. An Owner,however, shall have the eXCll...1Sive right to paint, repaint, tile,wax, paper or otherwise refinish and decorate the interiorsurfaces of the walls, floors, ceilings, windows and doorsbounding his or her Unit.

2 . Appurtenances. There shall pass with the ownership ofeach Unit as a part thereof, whether or not separately described,all appurtenances to such Unit and no part of the appurtenantinterest of any Unit may be sold, transferred or otherwisedisposed of except in connection with the sale, transfer or otherdisposition of such Unit itself or of all Units in the Regime.

3 . Undivided Fractional Interest. l~ undividedinteres t in the land and other Cornmon Elements of the Regime,regardless of whether such elements are General or Limited CommonElements, shall be appurtenant to each Unit. The fractionalamount of such undivided interest appurtenant to each Unit is1/96th.

4 . General Common E;lements. Appurtenant to each Unitshall be a right to use and enjoy the General CorrunonElements.

5. Limited Common Elements. The exclusive use by Ownersof the Limited CorrunonElement:s shall be deemed an appurtenance ofthe Unit for which said elements are reserved, provided such use

6

and enjoyment shall be limited to the uses permit.ted by thisDeclaration and ot.her Condominium Documents.

6. Association Membership and Votinq Riqhts. ADDurt-enant to each Unit shall be membersnlp In Blue Jay RidgeCondominiums Owners Association and one (1) vote in the affairs ofthe Associat.ion and of the Re9ime; provided, however, that theexercise of such votin9 and membership ri9hts shall be subj ect tothe applicable provisions of the Articles and bylaws of theAssociation and of the other Condominium Documents. The action ofsuch Association shall be deemed the action of the Owners; andsuch action, when taken in accordance with the bylaws of t.heAssociation and this Declaration shall be final and conclusiveupon all Unit Owners.

7. Cross-Easements. Appurtenant to each Unit shall beeasements from each Unit Owne J::." to each other Unit Owner and to theAssociation, and from the Association to the respective UnitOwners as follows:

(a) For in9ress and e9ress throu9h the co~non areas andfor maintenance, repair, and replacement as authorized;

(b) Throu9h the Units and co:rrunon fac ili ties formaintenance, repalr and replacement or reconstruction ofCommon Elements, but access to Units shall be only durin9reasonable hours except in case of emergency;

(c) Every portion of a Unit contributin9 to the supportof a Buildin9 is burdened with an easement of such supportfor the benefit of all such other Units;

(d) Through the Units and common areas for condui t~s,ducts, plumbin9, wirin9 and other facilities for thefurnishin9 of utility or other services to the other Units inthe commonareas.

AR.TICLE IV.

GENERAL COMMON ELEMENTS

~. Definition. General CornmanElements shall include allportions of the Project (land and improvements thereon) notincluded within any Unit except such portions of the Project whichare defined as Limited Common Elements in the followin9 Article.The General CommonElements also include I but are not limited to,the following:

(a) The land on which the Building lS erected.

7

(b) The foundations floors, exterior walls of each unit, including garage; units, (bothattached and detached), and of the Building, ceiling's and roofs, and entrances and exits or

communication ways, and in general all devices or installations existing for common use, exceptas limited in the next Article.

(c) Installations for public utilities, including electric, cable TV, gas and cold waterfor common use.

(d) Front, side, and rear yards; plantings, driveways,. walks, and open parkingspaces.

ARTICLE V.

LIMITED COMMON ELEMENTS

1. Definition. The term "Limited Common Elements" shall

mean, and such elements shall consist of, those Common Elementswhich are reserved for the use of one 'Unit by this Article and

amendments hereto and such reservation shall be to the exclusion of any other Unit.

2. Reservation. The following Common Elements are reserved and shall constitute theLimited Common Elements:

(a) All exterior walls of a Building, all walls and partitions separating Units fromother Units, interior load bearing walls and all other elements which are structural to a Unit are

reserved for that Unit (or Units where partitions separate two Units contained in a Building).

(b) The immediate hallways and l:mtrances leading toeach Unit are reserved for those Units.

3. Exception. Notwithstanding the reservations made bythis Article, the design of the Building, grounds to be submitted and the integrity and appearance of theRegime as a whole are the common interests of all Owners and, as such, shall remain a part of theGeneral Common Elements.

4. Right of Association. The reservation of the Limited Common Elements herein shall notlimit any right the Association and its agents may otherwise have to alter such Limited Cornman Elementsor enter upon such Limited Common Elements.

8

ARTICLE VI.

DECLARANTS' RESERVED RIGHTS AND POWERS

1. DECLARANTS' Activities. DECLARANTSare irrevocablyand perpetually empowered, notwithstanding any use, restriction orother provision hereof to the contrary, to sell, lease or rentUnits to any person and shall have the right to transact. on theCondominium property any business relating to construction,repair, remodeling, sale, leasie or reneal of Units, including butnot limi ted to, the right to maintain signs, employees,independent contractors and equipment and materials on thepremises, and to use CommonElements (General and Limited) to showUnits. .~ll signs and all items and equipment pertaining to salE~sor rentals or construction and any Unit furnished by theDECLARANTSfor sales purposes shall not be considered CommonElements and shall remain its separate property. DECLARlwrrsretain the right to be and remain the Ovvners of completed butunsold Units under the same terms and conditions as ocher Ovvners,including membership In the Association save for their right tosell, rent or lease.

2. Easements. DECLARANTSexpressly reserve perpetualeasements for ingress, egresis and utili ty purposes as may berequired across and under the land submitted hereby.

3 . Designation of Association Directors. DECLARANTSshall have the right to name all members of the Board of Directorsof Blue Jay Ridge Condominiums Ovvners Association until the firstannual members' meeting of said Association which shall be held asprovided for in the bylaws. Thereafter the Board of Directorsshall be selected in the manner specified in the bylaws of theAssociation.

AR'I~ICLE VIr.

MANAGEMENT OF THE REGIME

1. Association; CouI~cil of Co-owners. The operationof the Condominium shall be by a nonprofit membership corporationorganized and existing under Chapter 504A, Code of Iowa. The nclffieof the Association shall be "Blue Jay Ridge Condominiums OvvnersAssociation" . Copies of its Articles of Incorporation and of itsbylaws are attached hereto as Exhibit "A" and Exhibit "13",respectively. Whenever a vote or other action of Unit owners as agroup is required the mechanics of conducting such a vote ortaking such action shall be under the control and supervision ofthe Association. The action of the Association shall constitutethe action of the Owners or the Council of Co-owners whenever suchaction is permitted or required herein or by Chapter 49913 of theCode of Iowa.

9

2 . Comp1i anc e. All O\lmers, tenants, families, gues ts andother persons using or occupying ~h~ Regime shall be bound by andstrictly comply with the provlslons of the bylaws of theAssociation and applicable provisions of other CondominiwnDocuments, and all agreements, regulations and determinationslawfully made by the Associ.ation and its directors, offic'9rs oragents shall be binding on all such Owners and other persons. ;"'.failure to comply with the bylaws or the provisions of the otherCondominium Documents or any agreement or determination thuslawfully made shall be grounds for an action to recover sums duefor damages on the part of the Association or any Owner, asapplicable, or injunctive relief without waiving eithe:::- remedy.

3. Powers of Associa·tion. Each Owrner agre~~s that theAssociation has and shall exercise all powers, rights andauthori ty granted unto it, the Council of Co-owners, and thl2Owners as a group by Chapte:::-s 504A and 499B of the Code of Iowa a,samended, and such as are mo:t:"eparticularly set forth in th2Condominium Documents, including but not limited to the making ofassessments chargeable to Owners and the creation of a lien onUnits thereof, and to acquire a Unit at foreclosure sale and tohold, lease, mortgage or convey the same. Each Owner herebywaives any rights to delay or prevent such foreclosure by theAssociation which he or she may have by reason of a homesteadexemption.

4. Partition.waived all rights ofacquisition.

All Unitpartition,

Ownersif any,

shall be deemed toin connection wi th

havesuch

5. Membershipt Votinq Rights. The members of theAssociation shall consist of all of the record Owners of Uni ts.After receiving the approval of the Association elsewhererequired, change of membership in the Association shall beestablished by recording in t.he public records of Johnson County,Iowa, a deed or ot.her inst.rument. est.ablishing a record t.it.le to aUnit in the Condominium and the membership of the prior Ownershall be thereby terminated. The members of the Associat.ion shallbe ent.itled t.o cast one (1) vote for each Unit own.ed by suchmember.

6 . Restraint upon As s ignmen t. The share of a member int.he funds and asset.s of t.he Associat.ion cannot be assigned,hypothecat.ed or transferred in any manner except. as anappurtenance t.o his or her Unit.

7 .BoardofDirec tor.s.TheaffairsoftheAssociationshall

bemanagedbyaninitial boardofone(1)director. Theinitial

boardshallconsistofsuchpersonasDECLARANTSmayappoint.

pursuanttot.heDeclarationandneednot.beamemberofthe

Association. Theinitialboardshallserveuntilthefirst

10

annual members' meeting. From and after the first annual meetin~Jof members, the Board of Directors shall be selected from themembers of the Association, except as provided herein.

At the first annual members' meeting and at each annualmeeting thereafter , five (5) directors shall be elected and theterm of office of each director shall extend until the next annualmeeting of the members and thereafter until his or her suc.:cessoris duly elected and qualified, or until he or she is removed inthe manner as elsewhere provided. For so lonq as DECL.ZillANTSOwn:310% of the units at the time such directors are to be elected,DECLARANTSshall have the right to elect or appoint a majori ty ofthe members of the board, who need not be unit owners, andthereafter shall be enti tled to elect or appoint at: least onemember of the board until all units have been sold by DECLARfu~TS.Directors appoinced by the declarant shall have the same votingrights as directors elected by the members.

8. Discharge of Liability. All Ovmers shall promptlydischarge any lien whiCh may hereafter be filed against his or herCondominium.

9. Limitation on Association's Liabili~. Thell.ssociation shall not be lia.ble for any injury or damage toproperty caused by or on the CommonElements or by another Owneror person in the Proj ect or by any other means unless caused bythe gross negligence of the Association. No d~minution orabatement of common expense assessments shall be claimed orallowed for inconvenience or discomfort arising from the making ofrepairs or improvements of the CommonElements or from any actiontaken to comply with any law, ordinance or orders of agovernmental authority.

10. Indemnification ·of Directors and Officers. Everydirector and every officer of the Association shall be indemnifiedby the Association against all expenses and liabilities, includingcounsel fees, reasonably incurred by or imposed upon him or her inconnection with any proceeding to which he or she may be a party,or in which he or she may become involved, by reason of his or herbeing or having been a director or officer of the Association, orany settlement thereof, whether or not he or she is a director orofficer at the time such expenses are incurred, except in suchcases wherein the director or officer is adjudged guilty ofwillful misfeasance or malfeasance in the performance of his orher duties; provided that in the event of a settlement theindemnification herein shall apply only when the Board ofDirectors approves such settlement and reimbursement as being inthe best interests of the Association. The foregoing rights ofindemnification shall be in addi tion to and not exclusive of allother rights to which such director or officer may be entitled.

11

11. Aqent to Receive Service of Proces s. The followingperson, who is a resident of the State of Iowa, is designated asagent to receive service of process upon the Association:

N~~ ADDRESS

Michael T. Evans 2423 Second StreetCoralville, Iowa 52241

ARTICLE VIII.

MAINTENANCE, ALTERATION AND IMPROVEMENT

1. Definitions. Certain terms used l.nthis Article shallhave a meaning as follows, provided any dispute over meanIngsshall be conclusively decided by the Board of Directors of theAssociation:

(a) "Maintenance" or "repair" shall mean the act ofmaintaining, restoration, renovation, reconstruction,replacement, rebuilding and similar work necessary topreserve a Unit or the property in its original condition ascompleted.

(b) "Improvement" ~3hall mean the additionstructure, element or facility, other than aelement or facility otherwise provided forDeclaration or any Supplementary Declaration.

2. Maintenance by Association.

of a newstructure,by this

(a) The Association shall maintain all Common Elements,whether Limited or General, including attached and detachedgarage spaces, and shall make assessments therefor as acommon expense except where maintenance has been specificallymade the responsibility of each Unit.

(b) The Association shall repair incidental damagecaused to a Unit through maintenance by the Association andshall assess the cost thereof as a common expense.

(c) If a Unit Owner defaults on his or herresponsibilities of maintenance, the Association shall assumesuch responsibilities and shall assess the cost thereofagainst the Unit of such Owner and such assessment shall becollectible as if it were an assessment for common expenses.

(d) The Association may, In its discretion, assumeresponsibility for any maintenance project which requiresreconstruction, repair, r~ebuilding,conservation, restorationor similar work to more than one Unit and the cost thereof

12

may be In the discretion of the Association ei ther assessedagainst each Unit on which such costs were incurred orassessed against all Units as a common expense according tothe circumstances.

3 • Maintenance by Owner.

(a) Each Unit Owner at his or he:r- own expense shallmaintain the interior, including the boundary surfaces, ofsuch Unit and its equipment, including the interior of saidUnit's assigned garage space (whether attached or detached),shall keep such interior in a clean and sanitary condition,shall do all redecorating, painting and other finishing whichmay at any time be necessary to maintain his or her Unit, andshall be responsible for the maintenance of all pe:r-sonal tyincluding carpets, furnishings, and appliances within suchUnit.

(b) The Owner of each Unit shall be responsible formaintaining the plumbing fixtures within the Unit and heatingand air condi tioning uni t serving such Unit and all otheruti Ii ties or portions thereof located within the boundariesof his or her Unit. The Owner shall also, at his or her ownexpense, keep his or her Unit in a clean and sanitarycondition.

(c) The Unit Owner shall maintain, at his or here:x-pense, any improvement or other alteration made by him orher.

(d) The Owner of each Unit shall promptly report to t:heAssociation any defects or other maintenance needs which arethe responsibility of the Association.

4. Alterations or Improvements bv Owner. No UnitOwner shall make or permit to be made any structural alteration toa Unit or to a Building without first obtaining written consent ofthe Board of Directors of the Association (which consent may begiven by a general rule or regulation) which shall determine t:heproper insurance of such improvement or other alteration, and t:heeffect of such improvement or alteration on insura.nce of otherproperty of the Regime. The Board of Directors of the Associationshall arrange with such Unit owner for the payment of the cost ofany additional insurance thereby required. Alterations to t:heexterior of any Building or CommonElement shall not be made if,in the opinion of the Board of Directors of the Association, suchalteration would be detrimental to the integrity or appearance ofthe Regime as a whole. Such Owner shall do no act or work whichwill impair the structural soundness or integrity of the Buildingor safety of the property or impair any easement. The improvementor alteration of a Unit shall cause no increase or decrease in thenumber of ownership interests appurtenant to such Unit.

13

5. Alterations or Improvements by the Associatiog.Whenever in the judgment of the Board of Directors the CommonElements shall require additions, alterations or improvements, theBoard of Directors shall proceed with such addi tions, alterationsor improvements and shall assess all Unit Owners for the cO.stthereof as a commoncharge.

ARTICLE IX.

CONDITIONS OFON OWNERSHIP,

ANDUSE,

RESTRICTIONSAND ENJOYMENT

~ . Subj ection of the Property to Certain Provi sions.The ownership, use, occupation, and enjoyment of each Unit and ofthe Common Elements of the Regime shall be subject to theprovisions of the bylaws and the Articles of Incorporation of theAssociation, and this Declaration, all of which prOVlSlonsirrespective of where set forth or classified shall have equalstatus and shall be enforceable and binding as a covenant,condition, rest.riction, or requirement running with the land andshall be binding on and enforceable against each and all Units andthe Owners thereof and their respective assigns, lessees, tenants,occupants and successors in interest.

2. Use of Property. The use of the property shall be Inaccordance with and subject. to the following provisions:

(a) A Unit shall be used or occupied for living ordwelling purposes only.

(b) A Condominium may be rented or leased by the Owneror his or her lessee, provided the entire Unit is rented. Nolease shall relieve the Owner as against the Association andother Owners from any responsibility or liability imposed bythe Condominium Documents.

(c) Nothing shall be altered in, constructed in, orremoved from, the CommonElements, Limited or General, exceptupon written consent of the Board of Directors of t.heAssociation, which may be given throu9h regulations of theAssociation, and further provided that any holder of a firstmortgage which acquires possession of a Unit by foreclosureor by deed in lieu of foreclosure shall have the right topost signs for the sale or rental of such Unit until suchUnit is sold or a lease is entered into.

(d) No activity shall be allowed which undulyinterferes with the peaceful possession and use of theproperty by the Unit Owners nor shall any fire hazard orunsightly accumulation of refuse be allowed. In addition, noUnit Owner, guest or invitee thereof shall block vehicular

14

access to each Uni t 's garage by parking vehicles or placingobj ects within that portion of the common driveway whichabuts the Unit's garage door and which provides direct accessto the garage from the public street right-of-way. Each UnitOwner's guests or invitees will park their own vehicles onlyon the portion of the driveway in front of the Unit's garagedoor, doing the same in such a manner as to not violate theprovisions of this subparagraph.

(e) Nothing shall be done or kept in any Unit or in thecommon area which will increase the rate of insurance on thecommon area, without the prior written consent of theAssociation. No Owner shall permit anything to be done orkept in his or her Unit or in the common area which willresul t in the cancellation of insurance on any Uni t or anypart of the common area, or which would be in violation ofany law.

(f) The Association shall have thl2 authori ty to adoptrules and regulations governing the use of the property andsuch rules shall be observed and obeyed by the Owners, theirguests and invitees.

(g) Agents of or contractors hired by the Associationmay enter any Unit when necessary in connection with anymaintenance, landscaping, or construction for which theAssociation is responsible, provided such entry shall be madewi th as little inconvenience to the OwneJ::"Sas practicable.

(h) A Unit Owner shall give notice to the Associationof every lien against his or her Unit other than permittedmortgages, taxes, and Association assessments, and of anysuit or other proceeding which may affect the title to his orher Unit, within ten (10) days after the lien attaches or theOwner receives notice of such suit.

(i) A Unit Owner shall be liable to the Association forthe expense of any maintenance, repair, or replacementrendered necessary by his or her act, neglect, orcarelessness, or by that of .his or her family, guests,employees, agents or lessees, which lia.bility shall includeany increase in insurance rates resulting therefrom.

3 . No Waiver. Failure of the Association or any Owner toenforce any covenant, condition, restriction or other provision ofChapter 499B of the Code of Iowa, this Declaration, the Articlesof Incorporation or bylaws of the Association, or the rules andregulations adopted pursuant thereto, shall not constitute awaiver of the right to enforce the same thereafter.

15

ARTICLE X.

INSURANCE AND CASUALTY

~ . General Liability and Property Damage. Comprehen-sive general liability and property damage insurance shall bepurchased by the Board as promptly as possible following itselection, and shall be maintained in force ac. all times, thepremiums thereon to be paid by assessments. P:::-ior to theorganizational meeting, such insurance shall be procured byDECLARANTS. The insurance shall be carried with reputablecompanies authorized to do business in the State of Iowa in suchamounts as the Board may determine. The policy or policies shallname as insured all the Owners and the Association. DECLARANTSshall be named as additional insured on such policy or policiesuntil such time as DECL.llliANTSshall have conveyed all of theCondominium Units in the Proj ect. The policy or policies shallinsure against loss arising from perils in both the common areasand the Units and shall include contractual liability coverage toprotect against such liabilities as may arise under thecontractual exposures of the .;;'ssociation, and/or the Board.

2. Fire and Casualty:. Fire and other hazard insuranceshall be purchased by the Board as promptly as possible followingits election and shall thereafter be maintained in force at alltimes, the Dremiums thereon to be paid out of Associationassessments. Policies shall provide for the lssuance ofcertificates or such endorsement evidencing the insurance as maybe required by the respective mortgagees. The policy, andcertificates so issued, will bear a mortgage clause naming themortgagees interested in said property. The policy or policiesshall insure against: loss from perils therein covered to all ofthe improvements in the Proj ect, except as may be separatelyinsured. Such policy or policies shall contain extended coverage,vandalism, and malicious mischief endorsements. The improvementsto be insured under this clause shall be continually insured tovalue, and the policy or policies shall contain replacement costinsurance. If reasonably available, the policy or policies shallcontain a stipulated amount clause, o:r determinable cashadjustment clause, or similar clause to permit a ca~3h settlementcovering specified value in the event of destruction and adecision not to rebuild. The policy or policies shall name asinsured all of the Owners, the Association and DECLARA..i'JTS,so longas DECLARANTSare the Owners of any of the Units in the Proj eet .The DECLARANTSshall notify the insurance carrier of any change inownership of a Unit until such time as the organizational meetingof the Unit Owners is held, at which time it ~;hall be theresponsibility of the Association to notify the insurance carrierof a change in the ownership of any Unit. The policy or policiesshall also cover personal property owned in common, and shallfurther contain waiver of subrogation rights by the carrier as tonegligent owners.

16

3 . Fire and Casual tv on Individual Uni t s. Except asexpressly provided in this clause and in clause 4, no Owner shallseparately insure his or her Condominium or any part thereofagainst loss by fire or other casualty covered by the insurancecarrier under clause 2. Should any Owner violate this provision,any diminution in insurance proceeds resulting from the existenceof such other insurance, shall be chargeable to the Owner whoacquired such other insurance, who shall be liable to the Associa­tion to the extent of any such diminution and/or loss of proceeds.

4 . Personal Liability on Individual Uni t s. .~ Ovmermay carry such personal liability insurance, in addit.ion to thatherein required, as he or she may desire. In addition, suchfixtures and mechanical .equipment located within a Uni t such asplwnbing fixtures, electrical lighting fixtures, ki tchen andbathroom cabinets and counter tops, air-conditioning and waterheater together with additions thereto and replacements thereof,as well as the personal property of the Unit Owner, may beseparately insured by such Owner, such insurance to be limi ted tothe type and nature of coverage often referred to as "CondominiumUnit-Owners Insurance I. All such insurance separately carriedshall contain waiver of subrogation rights by the carrier as tonegligent Owners.

5 . Addi tional Coverage. The Board may purchase andmaintain in force, at the expense of the maintenance fund, debrisremoval insurance, fidelity bonds, and other insurance and/orbonds that it deems necessary. The Board shall purchase andmaintain workmen I s compensation insurance to the extent that thesame shall be required by law respecting employees of theAssociation. The Board shall also maintain "all risk" insurancecoverage on the Proj ect to insure against water damage and li.kekind of casualties.

6. Loss Adjustment. The Board is hereby appointed theattorney-in-fact for all Owners to negotiate loss adjustment onthe policy or policies carried under clauses 1, 2, 3, and 5 above.

7 . Association as Trustee for Proceeds. In the eventof damage or destruction by fire or other casualty affecting aUnit or Units, and/or if any portion of the cormnonarea is damagedor destroyed by fire or other casualty, all insurance proceedspaid in satisfaction of claims for said loss or losses shall besegregated according to losses suffered by each Unit or Unitsand/or the common area, and shall be paid to the A.ssociation astrustee for the Owner or Owners and for the encumbrancer orencumbrancers, as their interest may appear. Sa.id insuranceproceeds, and the proceeds of any special assessment ashereinafter provided, whether or not subj ect to lien::; of mortgagesor deeds of trust, shall be collected and disbursed by said

17

trustee through a separate trust account on the following tel:1nSand conditions:

(a) Partial Destruction of Common Elements. If thedamaged improvement is a Common Element, the Board ofDirectors of the Association may without furtherauthorization contract to repair or rebuild the damagedportion of the Common Element substantially in accordancewith the original plans and specifications thereof.

(b) Part.ial Destruction of Unit.s and Common Element.s.In the event of damage to, or des t.ruction of, any Unit orUnit.s with accompanying damage to the CommonElements but. t.hetotal dest.ruction or damage does not. represent. sixt.y percent.(60%) or more of t.he Building and the cost. of repairing orrebuilding said damaged area does not exceed the amount ofavailable insurance proceeds for said loss by more than$5,000.00, the Board of Directors of the Association shallimmediat.ely contract to repair or rebuild the damaged portionof the Unit or Units and the CommonElements subst.antially inaccordance with the original plans and specifications. Ifthe cost to repair or rebuild exceeds a.vailable insurance by$5,000.00, then Owners of the individual Units, by aunanimous vote of those present and E?ntitled to vote, inperson or by proxy, at a duly constituted Owners I meetingheld within thirty (30) days from the date of such damage ordestruction, shall determine whether the Board of Directorsshall be authorized to proceed with repair or reconstruction.

(c) Total Destruction. In the event of sixty percent(60%) or more damage to, or destruction of, the Building byfire or other casualty, the Owners of the individual Units,by a unanimous vote of those present and entitled to vote, inperson or by proxy, at a duly constituted Owners' meetingheld within thirty (30) days from the date of such damage ordestruction, shall determine whether the Board of Directorsshall be authorized to proceed with repair or reconstruction,or whether said Proj ect shall be sold; provided, however,that such determination shall be subj ect to the expresswritten approval of all record owners of mortgages upon anypart of the Regime.

In the event of a determination to rebuild orrepalr, the Board shall have prepared the necessary plans,specifications and maps and shall execute the necessarydocuments to effect such reconstruction or repair as prompt:lyas practicable and in a lawful and workmanlike manner.

In the event of a determination not to rebuild, theBoard shall offer the Project for sale forthwith, at. t.hehighest and best price obtainable, either in its damagedcondition, or after damaged structures have been razed, the

--

18

net proceeds of such sale, and the proceeds, if any I ofinsurance carried by the Association, and/or by the Owners asa whole on the Project, including coverage on the Units andthe common area, except for Unit coverages under Clause 4 ofthis ARTICLEXI, shall be distributed proportionately to theUni t Owners in the same proportion that the Uni t in whichthey have an interest shares in the CommonElements, exceptthat where there is a mortgage of record or other validencumbranc e on anyone Unit then, and in that event, wi threspect to said Unit the Association will distribute saidproceeds which would otherwise have been distributable tosuch Unit Owner as follows: first to the record owner ofmortgages upon Units and CommonElements in the Regime insatisfaction of the balance currently due on saidencumbrances and then the remaining proceeds, if any, to theUnit Owner of record.

(d) In the event that the common area lS repaired orreconstructed pursuant to the provisions of (a), (b), or (c)of this clause and there is any deficiency between theinsurance proceeds paid for the damage to the common area andthe contract price for repairing or rebuilding the commonarea, the Board shall levy a special assessment against eachOwner in proportion to his or her percentage ot ownership inthe common area to make up such deficiency. If any Ownershall fail to pay said special assessment or assessmentswi thin thirty (30) days after the levy thereof, the Boardshall make up the deficiency by paYment from the maintenancefund, and the remaining Owners shall be entitled to the sameremedies as those provided in ARTICLE VII. of thisDeclaration, covering a default of any Owner in the paymentof maintenance charges.

(e) In the event of a dispute among the Owners and/ormortgagees respecting the provisions of this clause, any suchparty may cause the same to be referred to arbitration inaccordance with the then prevailing rules of the AmericanArbitration Association.

In the event of arbitration, the party reques tingthe arbitration will give immediate notice thereof to theBoard, which shall notify all other Owners and mortgagees aspromptly as possible after the reference to arbitration lSmade, giving all such parties an opportunity to appear atsuch arbitration proceedings. The decision of the arbitratorin this matter shall be final and conclusive upon all of theparties. The arbitrator may include in his or herdetermination an award for costs and/or attorney fees againstanyone or more parties to the arbitration.

8 • Abatement of Common Expenses. The Board is author-ized to provide coverage for payment of maintenance charges which

19

are abated hereunder on behalf of an Owner-whose Unit 1S rendereduninhabicable for a per-ilinsured against.

9 . Review of Insurance Needs. Insurance cover-ageswillbe analyzed by the Board, or its representative, at least everyyear from the dace hereof and the insurance program revisedaccordingly.

ARTICLE XI.

TERMINATION

1. Procedure. The Condominium may be terminated 1n thefollowing manner-, in addition to the manner- provided by theHorizontal Property Act:

(a) Destruction. In the event it is determined in themanner elsewher-e provided that the Building shall not bereconstructed because of major damage, the Condominium planof ownership will be thereby terminated in compliance to theprovisions of Section 499B.8 of the Code of Iowa.

(b) Aar-eement. The Condominium may be terminated atany time by the approval in writing of all of the Owners ofthe Condominium and by holders of all liens affecting any ofthe Units by filing an instrument to that effect, dulyrecorded, as provided in Section 499B.8 of the Code of Iowa.It shall be the duty of every Unit Owner and his or herrespeccive lien holder to execute and deliver-such instrumentand to perform all acts as in manner and form may benecessary to effect the sale of the Project when at a meetingduly convened of the Association, the Owners of 100% of thevoting power, and all record owners of mortgages upon Unitsin the Regime, elect to terminate and/or sell the Project.

(c) Certificate. The termination of the Condominium 1neither of the foregoing manners shall be evidenced by acertificate of the Association executed by all members of theAssociation and their respective holders of all liensaffecting their interest in the Condominium, certifying as tofacts effecting the termination, which certificate shallbecome effective upon being recorded in the office of theJohnson County Recorder in Iowa City, Iowa.

2 . Form of Ownership after Termination. After term­ination of the Condominium, the Project will be held as follows:

(a) The property (land and improvements)deemed to be owned in common by the Owners.

20

shall be

Inthe

such

(b) The undivided interest in the property ownedcommon which shall appertain to each Unit Owner shall bepercentage of undivided interest. Dreviouslv owned byOwner in the common area and facilities. ~

(c)be deemedprioritiesproperty.

Any liens affecting any of the Condominiums shallto be transferred in accordance with the existingto the undivided interest of the Owner In that

(d) After termination, the net proceeds of sale,together with the net proceeds of the insurance on theproperty, if any, shall be considered as one fund and shallbe divided among all the Owners in a percentage equal to thepercentage of undivided interest owned by each Owner in theCommon Elements; after first paying out of the respectiveshares of the Owners, to the extent ;3ufficient for thatpurpose, all liens on the undivided interest in the propertyowned by each Owner.

ARTICLE XII.

AMENDMENTS AND MISCELLANEOUS

1. Procedure. Except as otherwiseDeclaration, this Declaration may be amendedshall be made in the following manner:

providedand such

in thisamendment

(a) Notice. Notice of the subject matter of a proposedamendment shall be included in the notice of any meeting atwhich a proposed amendment is considered. Holders of a firstmortgage of record shall receive notice of such proposedamendment as provided In the bylaws of the Association.

(b) Resolution. A resolution adopting a proposedamendment may be proposed by either the Board of Directors orby any member of the Association. Except as providedelsewhere, the resolution must be adopted by a unanimous voteof all Owners entitled to vote, in person or by proxy;provided, however, no amendment effecting a substantialchange in this Declaration or the bylaws of the Associationshall affect the rights of the holder of any such mortgagerecorded prior to recordation of such amE~ndment who does notjoin in the execution thereof and who does not approve saidamendment in writing.

(c) Bylaws. In the case of an amendment to thisDeclaration by reason of an amendment to the bylaws of theAssociation, then in the manner specified in such bylaws.

21

(d) Executlon a!1d F.ec::>r::iinc" An amendment adoptee.pursuant to (b) or (c) a:OovE s~all be executed bv a..'1 of:ice::­specl[lca11y d~legaced to do so wi~h the fo~alities recuiredby Chapter 499B ef the Code of Iowa. Upon cne recordatior: ofsuch instrwnent in the office of the Johnson County Recorder,the sa:ne shall be QffGctive against ar.y persons ownir.g aninterest in a Unit or the Regime.

2 . Amendment of Ownership Interest.. No amendment shallchange the percentage of ownership ~~ the Commen E~eme~tsappurte!lant t.o a Unit, nor increase ;:he Ol,'ffierI s share 0::: t:hecommon expenses unless the record Ct,omerof thi:: Ur:it cO::1cerned a::1dall !"ecord owners of mortgages therecn shall affirmatively joir:. ~nthe adoption of such amendment:.

IN WITNESS WHEREOF, DECLA."Q.M""rShaveDeclarat:'on the day and year first above w:::-itt'2:1.

exec~ted this

Chael Design and Development,lnc

Ey: __ . _Mich,,~el T. EvansSale Manager

STATE OF IOWASS:

JOHN"SON COlj"NTY

On this day of A..D. 1999, before me,the undersigned, a Notary Public In and for the State of Iowa,personally appeared Michael T. Evans, t.o me personally KHown, whobeing by me duly sworn, did say that he is the sale manager of theLimited Liability Companies ("Cempanies") executing the within andforegoi::tg instrument t.o i which this is; at.t.ached, t.hat theinstrument was signed on behalf of the Companies by authority ofits members and that Michael T. Evans as manager ack.."'1owledged theexecution ot the foregoing instrument to be the voluntary act anddeed of said Companies bv him and bv the Companies voluntarilyexecuted.

Notary Public in and forState of Iowa

Ivcp

22

EXHIBIT "A"

ARTICLES OF INCORPORATION

OF

BLUE JAY RIDGE CONDOMINIUMS OWNERS ASSOCIATION

The undersigned, acting as incorporator of a corporationpursuant to the provisions of the Iowa Nonprofit Corporation Actunder Chapter 504A of the Code of Iowa, as amended, adopts thefollowing Articles of Incorporation for such corporation:

ARTICLE I.

Name and Principal Office

The corporation shall be known as Blue Jay Ridge CondominiumsOwners Association and its principal offices shall be located inCoralville, Johnson County, Iowa.

ARTICLE II.

Corporate Existence

The corporate existence of this corporation shall begin uponthe date these Articles are filed with the Secretary of State, andthe period of its duration is perpetual

ARTICLE III.

Purposes and Powers

(A) The purpose and obj ective of the corporation 1.S toprovide an enti ty to conduct the business and affairs of, and toact as or for, the co-owners of that certain Horizontal PropertyRegime (Condominium) created and submitted pursuant to theprovisions of Chapter 499B of the Code of Iowa, as amended, knownas Blue Jay Ridge Condominiums and to bE: located on certainportions of real estate situated in Coralville, Johnson County,Iowa.

The corporation shall have all powers and purposes-granted or implied to a council of co-owners under the provisionsof Chapter 499B of the Code of Iowa, as amended, and as aregranted or implied by the Declaration of Condominium establishingsaid Condominium Regime, and all of such powers shall likewise

23

constitute lawful purposes of the corporation.

(B) The purposes of the corporation are exclusively not forprivate profit or gain and no part of its activities shall consistof carrying on political propaganda or otherwise attempting toinfluence legislation, and the corporation shall make nodistribution of income to its members, directors or officers.

(C) The corporation shall, additionally, have unlimitedpower to engage in, and to do any lawful act concerning any or alllawful business for which corporations may be organized under theIowa Non-profit Corporation Act.

ARTICLE IV.

Registered Office and Agent

The addresscorporation is 2423name of its initialEvans.

of the initial registered office of theSecond Street, Coralville, Iowa 52241, and theregistered agent at such address is Michael T.

ARTICLE V.

Board of Directors

The number of directors constituting the initial Board ofDirectors of the corporation is one, and the name and address ofthe person who is to serve as the initial director is:

NAME

Michael T. Evans

ADDRESS

2423 Second StreetCoralville, Iowa 52241

The initial Board of Directors shall be subject to removalonly by Michael T. Evans, until his term expires as provided inthe bylaws, but thereafter a director may be removed from officeat a special meeting of the members of the corporation in suchmanner as may be provided by the bylaws.

ARTICLE VI.

Bylaws

The initial bylaws of the corporation shall be adopted by itsinitial Board of Directors, but the power to thereafter alter,

24

amend, or repeal the same or adopt new bylaws lS reserved to themembers of the corporation.

ARTICLE VII.

Members and Votinq

Persons or entities owning Condominium Units submitted to theRegime shall be the members or the corporati.oI:, all of which andthe rights and obligations thereof shall be governed by theprovisions of the bylaws. The voting rights of the members shallbe fixed, limited, enlarged, or denied to the extent specified Inthe bylaws.

ARTICLE VIII.

Distribution of Assets Upon Liquidation

In the event of liquidation, assets, II any remain, shall bedistributed to the members in accordance to their proportionateshare of ownership in the Condominium Regime, as determined by theDeclaration of Condominium and the bylaws.

ARTICLE IX.

Amendment

.~y purported amendment to these Articles of Incorporation Inconflict with or contrary to the provisions or the Declaration ofCondominium, including supplements and amendments thereto whichsubmit. lands and Units to the Regime, shall be void and of noforce and effect.

ARTICLE X.

Incorporator

The name and address or the incorporator lS:

Michael T. Evans2423 Second StreetCoralville, Iowa 52241

Michael T. Evans,Incorporat.or.

25

STATE OF IOWASS:

COUNTYOF JOHNSON

On this day of 1999, before me, theundersigned, a Notary Public in and for said County, in saidState, personally appeared Michael T. Evans, to me known to be theperson named in and who executed the foregoing Articles ofIncorporation, and acknowledged that he executed the same as hisvoluntary act and deed.

Notary Public in and forState of Iowa

26

EXHIBIT "B"

BYLAWSOF

BLUE JAY RIDGE CONDOMINIUMSOWNERS ASSOCIATION

These are t.he bylaws of Blue Jay Ridge Condominiums OwnersAssociat.ion (hereinafter referred t.o as "ASSOCLi\TION") , acorporat.ion organized pursuant. t.o Chapt.e!:" S04A of t.he Code ofIowa, as amended, for t.he purpose of administ.E~!:"ingBlue Jay RidgeCondominiums, a Horizont.al Prope!:"t.y Regime (Condominium)est.ablished pursuant t.o Chapt.er 499B of t.hE~Code of Iowa, asamended, locat.ed on certain portions of the following land in t.heCit.y of Coralville, Johnson County, Iowa:

Lot. 1, Oakdale plaza First. Addit.ion t.o Coralville, Iowa,according to t.he Plat recorded in Book at page_______ I records of Johnson, County.

I. MEMBERS AND VOTING RIGHTS

1. The owners of each condominium unit. shall const.itut.e themembers of the corporation and membership shall aut.omat.icallycease upon t.ermination of all interest.s which const.itut.e a personan owner. DECLARANTSshall be and have the rights of members with!:"espect. t.o unsold units. Whenever only one spouse is a recordtit.leholder, the ot.her spouse shall be considered an owner for t.hepurpose of membership, and shall be bound by t.he' provisions of allcondominium document.s including t.hat. provision in relation t.o t.hehomest.ead exempt.ion cont.ained in Art.icle VII of t.he declarat.ion.

2. An owner of record shall be recognized as a memberwit.hout furt.her act.ion for so long as he or she holds an ownershipinterest. If ownership is acquired but not. of record, or ifacquired other t.han by way of conveyance or ot.her formalinstrument. of t.ransfer (such as by death, judicial act. ordissolut.ion), the person acquiring or succeeding t.o ownershipshall present. the board of direct.ors of the Associat.ion evidencesatisfactory to it. of facts evidencing lawful ownership st.atusprior t.o exercise of any right.s of membership in t.he Associat.ion.(Failure t.o provide such evidence shall not., however, relieve anOwner of his or her ownership obligations). A fiduciary or otherofficial acting in the representative capacity shall exercise allmembership right.s and privileges of t.he owner which he or sherepresents.

3. If more than one person lS t.he owner of the same unit,all such owners shall be members and remain :j ointly and severallyliable for all membership obligations. In such cases, or if more

27

than one fiduciary or other official lS acting in the premises,the votes entitled to be cast by the owners of that unit shall becast by the person named for that purpose on a certificate signedby all such owners or fiduciaries or other officials and filedwith the secretary and such person shall be deemed to hold anownership interest to such unit for purposes of voting anddetermining the representation of such owner~3hip interest at anymeeting or for purposes otherwise provided herein. If suchcertificate is not executed and filed with the secretary, suchmembership shall not be in good standing and the votes for thatunit shall not be considered in considering a quorum or a vote orfor any other purposes until this bylaw is complied with.

4. The owner of each unit shall be entitled to one vote onall matters to be determined by the members of the Associationeither as owners or as units or as contemplated by Chapter 499B ofthe Code of Iowa, as amended, pursuant to the declaration,including any supplements or amendments the!~eto, submitting theproperty to the regime. Votes of a single unit. may not bedivided.

II. MEMBERS' MEETINGS

1. The organizational meeting of the members of theAssociation to elect successors of the initial board of directorsshall be held within sixty (60) days of the date on which theDECLARANTS have sold and given possession of 12 of the unitswithin the project. Thereafter the annual and any specialmeetings shall be held at a time and at.a place within Iowa City,Johnson County, Iowa, chosen by the board of directors and allsuch meetings, annual or special, shall be held at such particulartime and place as is set forth in the notice thereof.

2. A special meeting shall be held whenever called by thepresident or, in his or her absence or disability, by the vice­president, or by anyone member of the board of directors.

3. The secretary or his or her designate shall give writtennotice to each member of the annual meeting or a special meetingcalled pursuant to paragraph 2. hereof. Whoever requests thespecial meeting shall give like written notice of such specialmeeting. All notices shall set forth the time and place andpurpose or purposes for which the meeting will be held. No actionshall be taken at a special meeting which is not directly relatedto the purpose or purposes stated in the notice of such meeting.

4. Notice of members' meetings shall be given by mailing ordelivering same not less than ten (10), nor more than thirty (30)days prior to the date of the meeting. Notice shall be deemed tobe given if mailed by first class mail to the member at theaddress of his or her unit within the regime, unless at the time

28

of giving such notice such member has give:1 written directiondelivered to the secretary specifying a different mailing addressto be carried on the rolls of the Association. If more than oneperson is the owner of the same Unit or if more than one fiduciaryor one official is acting in the premises, notice to such personshall be deemed to have been given, when in accordance with thisparagraph to the person named in the certificate filed with thesecretary in accordance with Paragraph 3 of ARTICLE I. Notice ofany meeting may be waived in writing by the person entitledthereto.

5. A quorum at a members I meeting shall consist of thepresence of members in person or by proxy, representing all of theunits. The acts carried or approved by a vote of all of the unitsrepresented at a meeting at which a quorum is present shallconstitute the acts of the membership unless a different rule isprovided herein or by the articles of incorporation, thedeclaration or other agreement to which the Association is aparty. The president, or, in his or her absence or disability thevice-president, shall preside at each members' meeting; if neitherthe president nor the vice-president is able to preSlae, achairman shall be elected by the members present at such meeting.

6. At a membership meeting, a person holding a member 'sproxy to vote shall be permitted to cast such member's vote on allquestions properly corning before such meeting, provided such proxymust be in writing and signed by a member or other person entitledto cast votes, and shall set forth the unit with respect to whichsuch rights are pertinent, and the period in which the proxy is tobe in force and effect. Decision of the board of directors as tothe sufficiency of any proxy for recognition shall be final andnot subject to appeal to the members.

7. At all meetings, the order of business shall consist ofthe following:

(a) Election of Chairman, if required.(b) Calling of roll and certification of prOXles.(c) Proof of notice of meeting or waiver of notice.(d) Reading and disposal of any unapproved minutes.(e) Reports of officers, if applicable.(f) Reports of committees, if applicable.(g) Election of Directors, if applicable.(h) Unfinished business.(i) New Business.(j) Adjournment.

III. BOARD OF DIRECTORS

l.initial

The affairs of the Association shall be managed by anboard of one (1) director. The initial board shall

29

consist of such persons as DECLARANTSmay appoint pursuant to theDeclaration and need not be members of the Association. Theinitial board shall serve until the first annual members' meeting.From and after the first annual meeting of members, the board ofdirectors shall be selected from the members of the Association,except as provided herein.

2. At the first annual members I meeting and at each annualmeeting thereafter , five (5) directors shall be elected and theterm of office of each director shall extend until the next annualmeeting of the members and thereafter until his or her successoris duly elected and qualified, or until he 0.[" she is removed inthe manner as elsewhere provided. For so long as DECLARANTSown10% of the Units such directors are to be elected, DECLARANTSshall have the right to elect or appoint a majority of the membersof the board, who need not be Unit owners, and thereafter shall beentitled to elect or appoint at least one (1) member of the boarduntil all units have been sold by DECLARANTS.Directors appointedby DECLARANTSshall have the same voting rights as direccorselected by the members.

3. Each director shall be elected by ballot (unless suchrequirement is waived by unanimous consent) and by a plurality ofthe votes cast at the annual meeting of the members of theAssociation. Each person entitled to vote shall be enti tied tovote for as many nominees as there are vacancies to be filled byelection and each director shall be elected by a separate ballotunless provided otherwise by unanimous consent of the members.

4. Except as provided in Paragraph 5 of thisvacancies on the board of directors may be filled untilof the next annual meeting by a vote of the remainingregardless of whether those remaining constitute a quorum.

ARTICLE,the datedirector

5. The initial directors shall be subj ect to removal onlyby the DECLARANTS. Thereafter, a director may be removed byconcurrence of all of the members of the Association at a specialmeeting called for that purpose. The vacancy on the board ofdirectors so created shall be filled by the persons entitled tovote at the same meeting.

6. The initial directors as well as any other directorsappointed by the DECLARANTSshall serve without compensation.Directors elected by the members shall receive such compensationand expenses as may be approved by the persons entitled to vote atany annual or special meeting.

7. An organization meeting of a newly-elected board ofdirectors shall be held within ten (10) days of their election atsuch place and time as sha11 be fixed by the directors at themeeting at which they were elected. No further notice of theorganization meeting shall be necessary.

30

8. By unanlInous vote, the directors may set the time andplace for regular meetings of the board and no notice thereofshall be required until such resolution is modified or rescinded.Special meetings of the directors may be called by the president,vice-president, or any director, provided not less than two (2)days I notice shall be given, personally or by mail, telephone, ortelegraph, which notice shall state the time, place and purpose ofthe meeting.

9. A quorum at a directors I meeting :shall consist of theentire board of directors. The acts approved by unanimous vote ofthose present at a meeting duly called at which a quorum lSpresent shall constitute the acts of the entire board ofdirectors, except where approval by a greater number of directorsis requi~ed by the declaration or these bylaws.

10. The presiding officer of a director I s meeting shall bethe president, or in his or her absence, the vice-president.

11. The board of directors, by resolution approved by allmembers thereof, may designate from amon~J its members suchcormnittees as it deems advisable and by resolution provide theextent and manner to which the same may have and exercise theauthority of the board.

IV. POWERS AND DUTIES OF THE BOARD OF DIRECTORS

All of the powers and duties of the Association shall beexercised by the board of directors, including those existingunder the common law and statutes, the articles of incorporation,and the documents establishing the condominium regime. Suchpowers and duties of the directors shall be exercised inaccordance with the provisions of the declaration of condominiumwhich governs the use of the land, and in addi tion to thoseelsewhere provided, shall include but not be limited to thefollowing:

1. The collection of assessments against members for allcormnon expenses.

2. Use of the proceeds of assessments In the exerClse ofits powers and duties.

3 . The maintenance, repair, replacement, and operation ofthe regime property including all common areas, elements, andfacili ties, and units as applicable, and the making or providingfor payment for all such work and approving or delegating to theofficers authority to approve vouchers therefor.

31

4. The reconstruction, repair, restoration, or rebuildingof the regime property and of any units as applicable aftercasualty; construction of new improvements or alterations ifapproved; to make and amend regulations respecting the use andoccupancy of the property in the condominium regime and to permitor forbid an action or conduct within the discretion committed tothem in the Declaration, bylaws, and resolutions of the members.

5. The enforcement by legal means of the provisions of theHorizontal Property Act, the Articles of Incorporation, bylaws ofthe Association, declaration, and the regulati.ons for the use ofthe property in the regime; and to take legal action in the nameof the Association and on behalf of its members.

6. To contract for management of the regime and to delegateto such manager any or all powers and duties of the Associationexcept such as are specifically required by the declaration,bylaws or resolutions of the members to have approval of the Boardof directors or the membership of the Association.

7. To employ, designate, and discharge personnel to performservices required for proper operation of the regime.

8. To carry insurance on the propertyregime and insurance for the protection ofoccupants, and the Association.

committed tounit owners,

theand

9. To pay the cost of all power, water, sewer, and otherutility or other services rendered to the re9ime and not billeddirectly to the owners of the individual units.

10. To conduct all votes or determinations of the membersother than at a membership meeting.

11. To borrow money from the bank, lending institution oragency for the use and benefit of the Association and to securethe loan or loans by pledge of the assets of the Association, andfrom time to time renew such loan and give additional security.

12. To do such other acts as are necessary and proper toeffect the purpose of the regime as stated in the Declaration andthese bylaws, provided such acts are not othenvise prohibited.

v. OFFICERS

1. The officers of the Association shc:l.llbe the presidentwho shall be a director, a vice-president who shall be a director,and a treasurer and secretary, which offices shall be filled byone person who need not be either a director or member. All suchofficers shall be elected annually by the board of directors andmay be peremptorily removed and replaced by the vote of two-thirds

32

(2/3) of the directors at any meeting. The initial officers andtheir successors until the first annual meetinq shall be chosen bythe initial board of directors and shall serve until theorganizational meeting of the members. The board of directors mayfrom time to time create and fill other offices and designate thepowers and duties thereof. Each officer shall have the powers andduties usually vested in such office, and such authority as iscommitted to the office by the bylaws or by specific grant fromthe board, but subj ect at all times to the provisions of thebylaws and to the control of the board of direct.ors.

2. The president shall be the chief executive officer ofthe Association. He or she shall preside at all membershipmeetings and meetings of the board of directors and shall havepower to appoint committees from among the members to assist Inthe conduct of the affairs of the Association and the regime.

3 . The vice-president shall preside over the membershipmeetings in the absence or disability of the president, and shallotherwise exercise the powers and duties of the president in theevent of the absence or disabili ty of the president and shallgenerally assist the president and exercise such other powers andduties as are prescribed by the directors.

4. The secretary and treasurer, which shall constitute oneoffice, shall keep the minutes of all proceedings of membershipmeetings and directors' meetings and shall have custody andcontrol of the minute book of the Association and shall keep or beIn charge and control of the records of the Association, andadditionally as treasurer have control of the funds and otherproperty of the Association and shall keep the financial books andrecords thereof.

5. The compensation of all officers and employees shall befixed by the directors. This provision shall not preclude theboard of directors from employing a director as an employee, northe contracting with a Director for management of the regime.

6. Any instrwnent affecting an interest in real propertymay be executed by the president or vice-president and one otherofficer upon authorization of the directors or in such manner asthe directors may otherwise direct.

VI. FISCAL MANAGEMENT

1. The board of directors shall adopt a budget for eachfiscal year (which shall be the same as the Association I s fiscalyear for Income Tax purposes) which shall include the estimatedfunds required to defray the common expenses and to provide andmaintain runds for the following accounting categories accordingto good accounting practices:

33

(a) Current expenses which shall include all funds andexpenditures to be made for the year for which the funds arebudgeted, including a reasonable allowance for contingenciesand working funds, except expenditures chargeable to reservesor to additional improvements. The balance of this fund atthe end of each year shall be applied to reduce theassessments for current expense for the succeeding year.

(b) Reserve for deferredinclude funds for maintenancefrequently than annually.

maintenance,item:3 which

whichoccur

shallless

(c) ReserVe for replacement, which shall include fundsfor repair or replacement required because of damage,destruction, depreciation or obsolescence.

2. The board or directors shall assess against eachcompleted unit which has been issued a ce::::,tif:"cateof occupancyand the owners thereof shall be liable for, a share of the itemsin the budget adopted pursuant to paragra.ph 1. equal to suchuni t's pro rata share of common expenses as set forth in theDeclaration. Such share shall be assessed annually in advance forthe fiscal year for which the budget was prepared, and notice ofsuch assessments shall be mailed or delivered not less than thirty(30) days prior to the first day of such fiscal year. Suchassessment shall be due and payable from the respective unit owneror owners in twelve (12) equal installments, each inscallmentbeing due and payable the first day of each calendar month, withinsuch fiscal year. In the event notice of such assessment is nottimely given, the amount of such assessment will not change butthe due date for each installment which would otherwise be due andpayable less than thirty (30) days from the giving of such notice,shall be due and payable on the due date of the first installmentwhich is due after thirty (30) days from the date such notice wasmailed or delivered. In the event the annual assessment proves tobe insufficient, the budget and assessments, therefore, may beamended at any time by the board of directors. Such amendedbudget may be adopted at a special directors' meeting upon anaffirmative unanimous vote of the directors. The additionalamount so budgeted shall be assessed t.o each unit in t.he samemanner as assessments for the annual budget and shall be proratedamong the remaining inst.allments due and payable in such year.

3. Assessments for common expenses for emergencies andextraordinary expenditures, which cannot be paid from the annualassessments for common expenses and maintenance funds shall beassessed against each completed unit which has received acertificate of occupancy only after notice of the need t.hereof tothe owners of said completed units. After such notice and uponapproval in writing by persons entitled to cast more than one-half

34

(1/2) of the votes in the condominium, the assessments shallbecome effective, and shall be due in such manner as the board ofdirectors may require after thirty (30) days' notice thereof. Inthe event any expenditure for repair or replacement of any unit orcommon elements cannot be paid from annual assessments but can beat least ninety percent (90%) paid from insurance proceedstherefor, such e:~enditures may be made upon approval of the boardof directors without approval of the members and an amended budgetand assessment may be made therefor if necessary.

4. If an owner shall be in default of a payment of aninstallment upon an assessment, the board of directors mayaccelerate the remaining installments of the assessment uponnotice thereof to such owner, and thereupon the unpaid balance ofthe assessment shall become due upon the date stated in thenotice, but not less than ten (10) days after delivery thereof tosuch owner either personally or by registered or certified mail.Interest shall be computed and due on balances due under thisparagraph but unpaid on such due date at the maximum rate ofinterest allowable by law from the date such balance becomes dueand payable in accordance with the preceding sentence; suchinterest shall be in addition to any other payments for which saidowner is liable.

5. The holder of a mortgage on any unit, upon its filingwritten request with the Association, shall be given writtennotice by the Association of the nonperformance of a mortgagor'sobligations under these bylaws, the Declaration or othercondominium documents, which is not cured within thirty (30) days.

6. All sums assessed but unpaid, including but not limitedto, interest with respect to a Unit or against a unit owner shallconstitute a lien on such unit prior to all other liens except:

(a) Tax liens on the unit In favor of any assesslngunit and special district; and

(b) All sums unpaid on the first mortgage of record.

Said lien may be foreclosed by the Association in the mannerand with the consequences provided in Section 499B.17 of the Codeof Iowa, as amended, in which event the owner shall be required topay a reasonable rental for the unit. In the event theAssociation forecloses on any lien, the Owner or owners of suchunit, by their membership in this Association, specifically waiveany rights to delay or prevent foreclosure which he, she or theymay have against the Association by reason of the homesteadexemption. The Association may sue for money judgment for unpaidassessments and interest or sums due without foreclosing orwaiving any lien which it holds.

35

7. If a mortgagee or purchaser of a unit obtains title as aresult of foreclosure of a first mortgage, neither such mortgageenor purchaser nor their successors or assigns, shall be liable forthe assessments chargeable to such unit due prior to theacquisition of title, and such unpaid assessments shall thereaft.erbe deemed to be common expenses collectible from all unit, ownersincluding the mortgagee or purchaser, and their successors andassigns. The owner of a unit pursuant to a. voluntary conveyanceor by inherit.ance or devise shall be joint.ly and severally liablewith the grantor or prior owner for all unpaid assessments against.the grantor or prior owner, but without prejudice to the right. ofsuch grantee or devisee to recover from the grantor the amount.spaid therefor. The grant.ee or other successor in int.erest. of anindividual subject t.o a levy of an assessment. on account. ofdefault shall be liable for any such special assessment..

8. The depository of the Association shall be such bank orbanks as shall be designated from time to time by the directorsand in which the moneys of the Association shall be deposited.wi thdrawal of moneys from the accounts shall only be by checkssigned by such persons as are authorized by the directors.

9. !ill audit of the accounts of the A.ssociation may be madeannually by a certified public accountant ,:u'ld if such audit ismade a copy of the report shall be furnished to each member not.later t.han sixty (60) days aft.er the close of the fiscal year forwhich the report is made.

VII. AMENDMENT

1. These bylaws may be amended, altered, repealed or newbylaws adopted by the members at a regular or special meeting ofthe members upon the unanimous affirmative vote of all votesenti tled to be cast; provided, however, no amendment effecting asubst.ant.ial change in these bylaws shall affect the rights of theholder of any mortgage recorded prior to recordat.ion of suchamendment. who does not join in the execution thereof and who doesnot approve said amendment in writing.

2. No amendment may be adopted at either a special orregular membership meet.ing not included in the notice thereof,except if notice of the proposed amendment has been given, anamendment relative to the same subj ect may be adopted by thosepresent, in person or by proxy and possession of the requisitepercentage of membership and voting interests; provided further,no vote by proxy may be counted unless the proxy expresslyprovides for such contingency. Notice referred to herein shall begiven in t.he manner prescribed in ARTICLE II, Section 3 of thesebylaws and shall be given to t.he persons described in ARTICLE II,Section 4, and the holder of any first mortgage of record whichhas notified the Association of its interests not more than fifty

36

(50) days nor less than thirty (30) days before the date suchmeeting will be held. More than one proposed amendment may beincluded in the notice of a meeting.

3. To the extent provided by Section 499B.14 of the Code ofIowa, as amended, no modification nor amendment to these bylawsshall be effective unless set forth in an amendment to theDeclaration of Condominium, executed and recorded in the mannerset forth in the Declaration and an amendment to these bylawsshall constitute an amendment to the Declara.tion as provided forby law. Upon such recording, said amendment shall be effectiveagainst all persons having an interest in a unit or the regimeregardless of whether said person had such interest at the timesaid amendment was adopted.

VIII. MISCELLANEOUS PROVISIONS

1. The invalidity of any portion orbylaws shall not affect the validity of theor portions hereof.

provision of theseremaining provisions

2.seal.

The Association shall not have or employ a corporate

3. The board of directors may require fideli ty bonds fromall directors, officers, or agents handling or responsible forAssociation funds and the expense of such bonds shall be commonexpense of the Association.

4. The Association shall promulgate such rules andregulations as it deems to be in the best interest of all ownerswithin the Regime. The initial board of directors shall adopt theini tial rules and regulations which may bE:: added to, amended,modified or altered by the unanimous affirmative vote of all ofthe members in the Association. Such Rules and Regulations, asamended, shall be binding upon all members, guests, and agents ofmembers. An amendment to the rules and regulations shall notconstitute an amendment to the Declaration and shall be valid andenforceable upon adoption without recording the same as anamendment to the Declaration.

5. The Association shall at all times maintain separate andaccurate written records of each unit and O~ler and the address ofeach, and setting forth the status of all assessments, accountsand funds pertinent to that unit and owner. Any person other thana unit owner may rely on a certificate made from such records byan officer or agent of the Association as to the status of allassessments and accounts.

6. Each member shall have the obligations as such member asare imposed on him or her by the Regime docwnents as an owner, and

37

no member shall have any power or authority to lncur a mechanic'slien or other lien effective against the Regime property except asthe same may attach only against his or her interest therein.

7. The Board of Directors may, in its discretion, issuewri tten evidence of membership, but the same shall be evidencethereof only and in no malli'"1ershall be transferable or negotiable,and the share of the member in the assets or: the Associationcannot be assigned, hypothecated, or t:::::-ansferred in any mannerexcept as appurtenant to such assigr..ment, hypothecation ortransfer of the unit.

8. Each owner or lessee of his or her unit, as applicable,shall have a right to use and enj oy the common elements providedthat such use shall be limited to the u.ses permitted by theDeclaration of Condominium and other governing documents of theRegime.

9. Since the number of directors and unit owners lS limi tedto two (2), and unanimous vote is required on all issues, andsince a quorum is defined as "both of the directors or both of theuni t owners, a majori ty ot the directors or ot the Association,"it is apparent that deadlocks may occur in the voting on any ofthe matters requiring action by either the Association or itsdirectors. Furthermore, since a quorum consists of all memberswho must be present, it is possible for one member to refuse toattend the meeting and bring the Association or the directors intoa posi tion where they are unable to act. In the event after two(2) notices by any unit owner to the other ot the time and placefor a meeting of the Association or of the directors, and thefailure of said unit owner to attend said meeting, therebypreventing a quorum, any issue to be brought before that meetingmay be submitted to arbitration as may any other matter on whichthere is actually a deadlock vote. The arbitration shall beperformed consistent with the procedures set forth in ARTICLE X,7, (e) of the Declaration of Condominium herein.

IX. DEFINITIONS

Unless the context otherwise requires, the terms used hereinshall have the meanings stated in the Horizontal Property Act, andas follows:

1. Person. The term "person" shall include an individual,a corporation, or other legal entity or its representative.

2 . Owner. The term "owner" for t~he purposes of thesebylaws shall mean any person who owns or holds for himself orherself an interest in one or more units subject to the Regime;provided that the holder of a leasehold interest in a Unit shallnot be an owner; and further provided that the holder of an

38

•.p.-

equitable interest shall be an owner.

3 . Unit. The term "unit" means each unit subjected to theRegime of one or more rooms intended for use as a residence.

4 .include:

Common Expenses. The term "common expenses II shall

(a) Expenses of administration, expenses ofmaintenance, operation, repair or replacement of commonelements, and the portions of units to be maintained by theAssociation.

(b) Expenses declaredDeclaration or these bylaws.

common expenses by the

(c) Any valid charge against the Regime as a whole.

5. Singular, plural and gender. Whenever the contextso permits or requires, the use of the singular shall include theplural, the plural the singular, and the use of any gender shallinclude all genders.

Michael T. Evans

39

EXHIBIT "e"

SURVEY

40

EXHIBIT "D"

RULES AND REGULATIONS FOR

BLUE JAY RIDGE CONDOMINIUMS OWNERS ASSOCIATION

1. Automobiles may be parked only in the areas provided for thatpurpose, and shall not be parked in such a manner as toimpede or prevent. ready access to any entrance to or exi tfrom the Building by another vehicle.

2. No radio or television antenna or any wiring for any purposemay be installed on the exterior of the Building without thewritten consent of the Board of Directors of Blue Jay RidgeCondominiums Owners Association.

3. Exterior name plates and mailboxes will be installed in amanner uniform and consistent. with that. of the other Unit andapproved by the Association.

4. Unit Owners are reminded that alteration and repair of theBuilding is the responsibility of the Association, except forthe interior of the Units. No work of any kind is to be doneupon the exterior Building walls or upon the interiorboundary walls without first obtaining the approval of theAssociation.

5. No Unit Owner shall make or permit any disturbing noises Inthe Building, or do or permit anything' to be done thereinwhich will interfere with the right.s, comforts, orconveniences of other Unit Owners. No Unit Owner shall playupon or suffer to be played upon any musical instrument oroperate or permit to be operated a phonograph or radio ortelevision or other loud-speaker in such Owners' Unit betweenthe hours of 12: 00 midnight and the following 6:00 A.M., ifthe same shall disturb or annoy other occupants of theBuilding.

6. Each Unit Owner shall keep his or her Unit in a good state ofpresentation and cleanliness, and shall not sweep or throw orpermit to be swept or thrown therefrom, or from the doors orwindows thereof, any dirt or other substance.

7 . Unit Owners shall not caUSe orobjectionable noises or odors toemanate from their respective Units.

pennit anybe produced

unusualupon or

orto

8. No animals or reptiles of any kind shall be raised, bred, orkept in any Unit or in the Common Elements, except that adog, cat or other household pet approved in writing by theBoard of Directors of the Association, may be kept in a Unit,

41

provided that it is not kept, bred or" maintained for anycommercial purpose; and provided further that any such petwhich in the opinion of the Board of Directors of the

; Association is causing or creating a nuisance shall bepermanently removed from the property upon three (3) dayswritten notice from the Board of Directors of theAssociation.

9. Any consent or approval given undeJ::" these Rules andRegulations may be added to, amended or repealed at any timeby resolution of the Board of Directors of the Association.

10. These Rules and Regulations mayal tered only as provided in theCondominiums Owners Association.

be amended, modified orbylaws of Blue Jay Ridge

These Rules and Regulations have been approved by the Boardof Directors of Blue Jay Ridge Condominiwns Owners Association onthe __ day of , 1999.

Michael T. Evans

ATTEST:

42

EXHIBIT "E"

ENGINEER'S CERTIFICATE

(TO BE FILED AFTER COMPLETIONOF CONSTRUCTION)

STATE OF IOWASS:

COUNT"! OF JOHNSON

I, Kerry 0 Russel) being first duly s,worn, do upon oathdepose and state that: I am a Registered P!·ofessiona2. Engic.eerauthorized and licensed to practice my profession in ~~e State o~Iowa. My Iowa Registration Number is

- have examined the building pla."1s and ·site plan filed withthe Declaration of Condominium known as the Blue Jay RidgeCondominiums Declara::ion and r::hac the same diagrammaticallyrepresent, insofar as reasonably possible by use of non­destructive measurement techniques, the bu.ilding and. commonelements a.'1d limi :.ed corrnnoneleme!:ts that the DECLARANTShave, infact, constructed on the real estate described in saidDeclaration. Said building plans a:::e in sufficient engineeringdetail to allow the dwelling structure to be rebuilt in preciselyr.:Je same location in event the same is completely destroyed byfire or other casualty.

Ker:::yG. RussellIowa Registration. Number

Subscribed and sworn to before me by Kerry o. Russell. thisday of , 1999.

Nota~ Public in and forState of Iowa

43

EXHIBIT "Fit

SPECIFICATIONS

44

EXHIBIT"G"

UNIT

NO. ,UNITSQUAREFOOTAGE,PERCENTAGEOF

COMMONELEMENTS,PERCENTAGEOFCOMMON

EXPENSESANDASSIGNMENTOF

GARAGEUNITS

PERCENTAGE

PERCENTAGEASSIGNMENTUNIT SQUARE

OF COMMONOF COMMONOF GrlRAGEill'JITNO.

FOOTAGEELEMENTSEXPENSESUNITS

Bldg.

28611st FloorUnit 101

9001/96th1/96thNo.101102

9001/96th1/96thNo.102103

9001/96th1/96thNo.103104

9001/96th1/96thNo.1042nd Floor Unit 201

9001/96th1/96chNo.201202

9001/96th1/96thNo.202203

9001/96th1/96thNo.203204

9001/96th1/96thNo.204Jrd Floor Unit 301

9141/96th1/96thNo.301302

9141/96th1/96thNo.302303

9141/96th1/96thNo.303304

9141/96th1/96thNo.304

Bldg.

28631st FloorUnit 101

9001/96th1/96thNo.101102

9001/96th1/96thNo.102103

9001/96th1/96thNo.103104

9001/96th1/96thNo.1042nd Floor Unit 201

9001/96th1/96thNo.201202

9001/96th1/96thNo.202203

9001/96th1/96thNo.203204

9001/96th1/96thNo.2043rd Floor Unit 301

9141/96th1/96thNo.301

3029141/96th1/96thNo.302

3039141/96th1/96thNo.303

3049141/96th1/96thNo.304

Bldg.

28651st FloorUnit 101

9001/96th1/96thNo.101102

9001/96th1/96thNo.102103

9001/96th1/96thNo.103104

9001/96th1/96thNo.1042nd Floor Unit 201

9001/96th1/96thNo.201

45

PERCENTAGEPERCENTAGEASS IGNMEl\JTUNIT SQUARE

OF COMMONOF COMMONOF GARAGEUNIT

NO. FOOTAGEELEMENTSEXPENSESUNITS

202

9001/96th1/96thNo.202203

9001/96th1/96thNo.203204

9001/96th1/96thNo.2043rd Floor Unit 301

9141/96th1/96thNo.301302

9141/96th1/96thNo.302303

9141/96th1/96thNo.303304

9141/96th1/96thNo.304

Bldg.

28671st FloorUnit 101

9001/96th1/96thNo.101102

9001/96th1/96thNo.102103

9001/96th1/96thNo.103104

9001/96th1/96thNo.1042nd Floor Unit 201

9001/96th1/96thNo.201202

9001/96th1/96thNo.202203

9001/96th1/96thNo.203204

9001/96th1/96thNo.2043rd Floor Unit 301

9141/96th1/96thNo.301

3029141/96th1/96thNo.302

3039141/96th1/96thNo.303

3049141/96th1/96thNo.304

Bldg.

28691st FloorUnit 101

9001/96th1/96thNo.101102

9001/96th1/96thNo.102

1039001/96th1/96thNo.103

1049001/96th1/96thNo.104

2nd Floor Unit 2019001/96th1/96thNo.201

2029001/96th1/96thNo.202

2039001/96th1/96thNo.203

2049001/96th1/96thNo.204

3rd Floor Unit 3019141/96th1/96thNo.301

3029141/96th1/96thNo.302

303

9141/96th1/96thNo.303

304

9141/96th1/96thNo.304

Bldg.

28711st FloorUnit 101

9001/96th1/96thNo.101

102

9001/96th1/96thNo.102

103

9001/96th1/96thNo.103

104

9001/96th1/96thNo.104

2nd Floor Unit 2019001/96th1/96thNo.201

46

PERCENTAGEPERCENTAGEASSIGNMENTUNIT SQUARE

OF COMMONOF COMMONOF GARAGEUNIT

NO. FOOTAGEELEMENTSEXPENSESUNITS

202

9001/96th1/96thNo.202203

9001/96th1/96thNo.203204

9001/96th1/96thNo.204Unit

201 9001/96th1/96thNo.201202

9001/96th1/96thNo.202203

9001/96th1/96thNo.203204

9001/96th1/96thNo.204Jrd Floor Unit 301

9141/96th1/96thNo.301302

9141/96th1/96thNo.302

3039141/96th1/96thNo.303

3049141/96th1/96thNo.304

Bldg.

28731st::FloorUnit

101 9001/96th1/96thNo.101102

9001/96th1/96thNo.102

1039001/96th1/96thNo.103

1049001/96th1/96thNo.104

2nd Floor Unit 2019001/96th1/96thNo.201

2029001/96th1/96thNo.202

2039001/96th1/96thNo.203

2049001/96th1/96thNo.204

Jrd Floor Unit 3019141/96th1/96thNo.301

302

9141/96th1/96thNo.302

3039141/96th1/96thNo.303

3049141/96th1/96thNo.304

Bldg.

28751st FloorUnit 101

9001/96th1/96thNo.101

1029001/96th1/96thNo.102

103

9001/96th1/96thNo.103

104

9001/96th1/96thNo.104

2nd Floor Unit 2019001/96th1/96thNo.201

202

9001/96th1/96thNo.202

203

9001/96th1/96thNo.203

204

9001/96th1/96thNo.204

Jrd Floor Unit 3019141/96th1/96thNo.301

302

9141/96th1/96thNo.302

303

9141/96th1/96thNo.303

304

9141/96th1/96thNo.304

47